Franklin Park Apartments - PDF Free Download

Franklin Park Apartments 1117 Franklin Dr, Hutchins, TX 75141 OFFERING MEMORANDUM HUTCHINS, TX 75141 1

FRANKLIN PARK APARTMENTS 1117 FRANKLIN DR I HUTCHINS, TX EXCLUSIVELY LISTED BY Daniel McQuaid Associate - Multifamily Direct +1.214.932.1284 Mobile +1.903.237.8901 Daniel.McQuaid@matthews.com License No. 673000 David J. Harrington National Director - Multifamily Direct +1.310.295.1170 Mobile +1.310.497.5590 david.harrington@matthews.com License No. 01320460 TABLE OF CONTENTS 04 Property Overview 08 Location Overview 06 Property Overview 10 Financial Overview

PROPERTY OVERVIEW OPPORTUNITY Matthews Real Estate Investment Services has been exclusively retained to offer an opportunity for qualified investors to purchase the Franklin St Apartments located in Hutchins, TX. Ideally located in proximity to the crossing of I-20 & I-45, The Franklin St Apartments offers an investor an incredible opportunity to purchase a 21 Unit Value Add multifamily asset in Hutchins, TX. Hutchins, TX is currently experiencing rapid growth & expansion, with an influx of development, jobs, and infrastructure. Along with thousands of jobs in the immediate area, Hutchins is located within a short drive to Downtown Dallas, and the major employers located in the Dallas Fort Worth MSA. Hutchins is exploding with expansion and development including the Prime Point development that is currently underway. Prime Point is a 3,000 acre development that is bringing multiple corporate HQ s as well as superior highway connectivity. The Franklin St Apartments offer an investor the opportunity to capitalize not only on the outstanding growth and expansion of Hutchins, but to also add further value to the property through capital expenditures. 4 1117 FRANKLIN DR

HUTCHINS, TX 75141 5

AREA OVERVIEW HUTCHINS - LOCAL OVERVIEW Hutchins is a city in Dallas County TX. Hutchins is at the souther Dallas city limit and Interstate Highway 45, nine miles south of Downtown Dallas. This allows Hutchins to enjoy everything a big city has to offer with a small town atmosphere. While most of the town s residents are employed in Dallas, Hutchins is also home to some major employers. In the near future, Hutchins will see plenty of growth. There is a renewed investment in the public school system as three Dallas ISD schools will open in the immediate area to includ: Wilmer-Hutchins Elementary School, Kennedy-Curry Middle School and Wilmer-Hutchins High School. Hutchins has also seen a growing workforce, a majority of which are from the International Inland Port of Dallas. The region is also home to Union Pacific s 360 acre Dallas Intermodal facility. Many companies have chosen to locate their shipping and logistics operations near the facility. The region is also home to the FedEx Ground Dallas Hub - the busiest Hub in the US - which has triggered the opening of a Holiday Inn Express to service visitors to the facility. LOCAL EMPLOYERS - FedEx Ground...750 Hutchins State Jail... 429 Adesa... 300 Consolidated Casting Corp... 250 Allied Waste... 200 Union Pacific RR Terminal... 200 LOCAL POINTS OF INTEREST Downtown Dallas...11 Miles Hutchins Grocery... 0.1 Miles Campbell Park...0.5 Miles FedEx Ground...1.5 Miles ADESA Dallas...1.8 Miles Cedar Valley College...3.8 Miles 6 1117 FRANKLIN DR

LOCATION MAP HUTCHINS, TX 75141 7

DALLAS-FORT WORTH MSA #1 #2 Most Innovative Economy in the U.S. Fastest Growing Metro in the U.S. As the largest metropolitan area in the South and the fourth largest in the United States, the Dallas-Fort Worth Metroplex is the economic and cultural hub of the North Central Texas region. Growing research universities and innovative companies investing in the region, recognizing it as a hub of creativity, ingenuity and hightech innovation. This area has become an essential part of growth strategies for companies and is acknowledged as one of the top 10 metropolitan areas in the United States for high-tech workers with over 230,000 employed workers across a variety of industries. The cities of Dallas and Fort Worth comprise the two largest urban centers of the continuously expanding Metroplex, respectively. On the eastern side of the metro area, Dallas is the larger of the two cities with an economy based on business management and operations. Conversely, the Texas farming and ranching industry is based on the west site of the metroplex in Fort Worth. 8 1117 FRANKLIN DR

DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 2,056 15,626 88,399 2017 Estimate 1,971 14,802 81,647 2010 Census 1,820 13,396 72,161 2000 Census 1,655 13,382 60,930 Growth 2017-2022 4.30% 5.56% 8.27% Growth 2011-2017 8.31% 10.49% 13.15% Growth 2000-2010 9.96% 0.11% 18.43% HOUSEHOLDS 2022 Projection 411 4,407 28,111 2017 Estimate 387 4,135 26,016 2010 Census 357 3,733 23,291 2000 Census 362 3,669 19,434 Growth 2017-2022 6.26% 6.57% 8.05% Growth 2011-2017 8.18% 10.77% 11.70% Growth 2000-2010 -1.38% 1.75% 19.85% 2017 Est. Average Household Size 3.15 2.94 3.02 INCOME $ 0 - $14,999 10.37% 18.23% 18.73% $ 15,000 - $24,999 14.77% 13.54% 13.86% $ 25,000 - $34,999 15.97% 15.74% 14.48% $ 35,000 - $49,999 16.41% 16.13% 14.77% $ 50,000 - $74,999 17.49% 17.87% 18.13% $ 75,000 - $99,999 10.18% 9.90% 9.24% $100,000 - $124,999 4.96% 4.05% 5.27% $125,000 - $149,999 2.85% 1.26% 2.27% $150,000 - $199,999 3.59% 1.25% 1.79% $200,000 - $249,999 1.13% 0.55% 0.73% $250,000 - $499,999 1.74% 0.93% 0.55% $500,000+ 0.53% 0.56% 0.19% 2017 Average Household Income $62,580 $51,426 $50,901 2017 Median Household Income $43,124 $37,320 $37,974 HUTCHINS, TX 75141 9

FINANCIAL OVERVIEW INVESTMENT SUMMARY Offering Price: $1,150,000 Number of Units: 21 Property: 1117 Franklin Dr, Hutchins, TX 75141 Year Built: 1970 APN: 30-00950-006-008-04-00 Price Per Unit: $54,762 Gross Sq. Ft.: 13,560 Price Per S.F.: $84.81 Average S.F. Per Unit: 645 Cap (current / market): 7.02% / 9.44% Lot Size (Acres):.83 GRM (current / market): 7.55 / 6.08 Density: 25 UNIT MIX & SCHEDULE INCOME Total Units Unit Mix Unit Mix % Average Rent PSF Current Average Rent Current Monthly Rent Market Rent Market Rent P.S.F Market Monthly Rent 21 2+1 100% $0.94 $604 $12,685 $750 $1.16 $15,750 Scheduled Monthly Rent: $12,685 $15,750 Scheduled Yearly Rent: $152,220 $189,000 10 1117 FRANKLIN DR

ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $152,220 $189,000 24% Upside Less Vacancy Reserve: $7,611 5.0% $9,450 5.0% Gross Operating Income: $144,609 $179,550 Expenses: $63,900 42.0% $71,037 37.59%* Net Operating Income: $80,709 $108,513 Pre-Tax Cash Flow: $80,709 26.0% $108,513 35.00%** Plus Principal Reduction: $13,551 $13,551 Total Return Before Taxes: $94,260 30.41% $122,064 39.38%** * As a percent of Scheduled Gross Income ** As a percent of Down Payment Laundry income is estimated at $15 per unit per month PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI Property Taxes 2.62% x Sale Price $19,980 $951 13.82% Off-Site Management Actual March 2017 Annualized $8,400 $400 5.81% Insurance Actual March 2017 Annualized $16,200 $771 11.20% Repairs & Maintenance Actual March 2017 Annualized $4,200 $200 2.90% Landscaping Actual March 2017 Annualized $1,800 $86 1.24% Pest Control Actual March 2017 Annualized $600 $29 0.41% Utilities Actual March 2017 Annualized $9,420 $449 6.51% Trash Actual March 2017 Annualized $3,300 $157 2.28% Total Expenses $63,900 $3,043 44.19% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $36,180 $1,723 23.8% Total Expense with out Taxes $43,920 $2,091 28.85% HUTCHINS, TX 75141 11

FINANCIAL OVERVIEW RENT ROLL # Unit Mix Rent Market Rent 1 1 2+1 $600 $750 2 2 2+1 $600 $750 3 3 2+1 $600 $750 4 4 2+1 $575 $750 5 5 2+1 $600 $750 6 6 2+1 $600 $750 7 7 2+1 $575 $750 8 8 2+1 $600 $750 9 9 2+1 $600 $750 10 10 2+1 $600 $750 11 11 2+1 $600 $750 12 12 2+1 $600 $750 13 13 2+1 $600 $750 14 14 2+1 $600 $750 15 15 2+1 $600 $750 16 16 2+1 $535 $750 17 17 2+1 $650 $750 18 18 2+1 $650 $750 19 19 2+1 $650 $750 20 20 2+1 $625 $750 21 21 2+1 $625 $750 Totals $12,685 $15,750 Averages $604 $750 12 1117 FRANKLIN DR

HUTCHINS, TX 75141 13

CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Property located at 1117 Franklin Dr, Hutchins, TX ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. HUTCHINS, TX 75141 15

Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/ Associate License No. Email Phone Sales Agent/Associate s Name License No. Email Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at www.trec.texas.gov