Rolling Hills Apartments - PDF Free Download

Rolling Hills Apartments Jennings, MO 63136 For Information: Ted Greenberg Cell: 314 503 7772 Direct: 314-336-1955 ted@multifamilystl.com Constantine Benos Cell: 314 504-9043 Direct: 314-446-7552 cbenos@stlmultifamily.com Realty Exchange 2203 S. Big Bend, Suite 100 St. Louis, MO 63117 314 647 2220

Table of Contents Confidentiality Agreement and Disclaimer Summary Executive Summary Photos Location Map Area and Demographics Features List List List Building Information General Building Information Unit Information Floorplans Aerial Photo Financial Information Income Summary Rent Roll 10 Year Projection with: Debt Service Coverage Rates of Return on Capital Internal Rate of Return Appendix Financial Assumptions Lead Paint Disclosure Seller s Disclosure

Confidentiality Agreement BY RECEIPT of this Offering Memorandum, you agree that its contents are of a confidential nature, that you will hold and treat it in the strictest of confidence, and that you will not disclose directly or indirectly this Package or any of its contents to any other person or entity without the express written consent of Colliers International. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. Analysis and verification of the information contained herein is solely the responsibility of each prospective investor. Prospective investors are advised to review independently all documents relating to the Property and conduct their own independent due diligence to verify and assess the suitability of this property for their investment needs and risk tolerance. Broker has not made any investigation, and makes no warranty or representation, with respect to the income or expenses of the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition or improvements thereon, or the financial condition or business prospects of any tenant, or any tenants plans or intentions to continue occupancy. The information contained in this Offering Memorandum has been obtained from the Seller, as well as other sources we believe to be reliable; however Broker has not verified, and will not verify any of the information contained herein. Neither Broker, nor any of his respective officers, agents, partners, employees, or principals have conducted any investigation regarding these matters and makes no warranty or representation whatsoever, expressed or implied, regarding the accuracy or completeness of the information provided, including any and/or all of the underlying assumptions. Any prospective Buyer is solely responsible for any and all costs and expenses incurred in investigating and evaluating the Property.

Summary Property Name Features Summary Executive Summary Photos Location Map Area and Demographic Information List List List

Executive Summary is a six (6.01) acre campus with 128 units total located at 8869 Maya Lane, Jennings, Missouri, just north of St. Louis City. With eight (8) buildings, the campus forms a u-shape allowing for an attractive, park-like setting with plenty of green space available for tenant use. With 64 one-bedroom units and 64 two-bedroom units, the entire campus is being offered for $2,900,000. Recent Improvements Current ownership initiated a program to replace the windows and patio door of each unit as tenant turnover occurs. At present, over 70% of the windows and sliding doors have been replaced with vinyl thermal pane units. Additionally, ownership has replaced most of the entry doors to the buildings and is in the process of replacing the fascia, gutters and downspouts as well. The grounds have been redesigned with the old retaining walls removed and replaced with block walls in multiple locations. Proforma analysis includes leasing garages and completing final building, but does not include overall rent raises, only higher rents in renovated units. Opportunities for new ownership might include: Completing renovation of last 16 units Bringing the garages back into service. Garages are a unique feature not available in this rental range of the market. Listing Summary Pricing $3,200,000 Price/Unit $25,000 Total Units 128 Total Lot Size 6.1 Acres Total Unit SF 89,400 SF/Unit 698 Zoning R3 Hallways offer an opportunity to change the perception of the buildings as you enter. Rental rates are low and could be raised especially with improvements to the units. Additional amenities could be added such as more laundries, playground, picnic areas.

Photos

Location Map

Area Information / Demographics The City of Jennings, Missouri The City of Jennings is a diverse community of over 15,000 residents, located conveniently between downtown St. Louis, Missouri and Lambert- St. Louis International Airport. Incorporated as a city in 1946, the community has a history dating back to 1839, when James Jennings moved here from Virginia and purchased a large tract of land. The future is also very much on the minds of Jennings residents and elected officials. In recent years, the city completed a new Comprehensive Plan and Park Master Plan working with St. Louis County and Sustainable Neighborhoods to bring about the improvements residents have asked for. Northland Shopping Center has been redeveloped with new stores and offices, including a new Target and Schnucks, as the Buzz Westfall Plaza On the Boulevard. Additionally, state and county improvements to Highway 70 and Jennings Station Road have sparked redevelopment plans to include new restaurants and businesses. The Jennings School District serves over 3000 students and is fully accredited. There are five elementary schools, one junior high and one high school. The Jennings School District has won national awards for its use of instructional technology. The district is recognized state wide both as a leader of computers in the classroom and for its strong staff development program; it is the highest- paying school district for teacher salaries in the state. The Jennings Beautification Committee sponsors two award-winning community gardens and many public beautification projects. They also hold community events such as Concerts in the Park, often co-sponsored by the Jennings Neighborhood Watch. The city has two buses to provide senior and disabled residents transportation for shopping, medical appointments and recreation. Children and teens enjoy a variety of programs offered jointly by the Jennings Recreation Department, the Jennings School District, the St. Louis County Housing Authority, and St. Louis for Kids. If you like toasted ravioli or ice cream, chances are you ve sampled a product made in Jennings. Louisa Foods makes 100,000 pounds of Italian food every week, distributed to local grocery stores and restaurants. Velvet Freeze Ice Cream is also made in Jennings at their store on West Florissant. Jennings is also the home of Norwood Hills Country Club. Over the years, Norwood has hosted many national events including the National PGA Championship and the USGA Senior Amateur. 2019 Population 15,799 112,365 256,975 Pop Growth 2014-2019 0.45% 1.11% 0.90% Average Age 34.80 36.50 36.80 2014 Total Households 6,332 42,196 97,591 HH Growth 2014-2019 0.41% 1.04% 0.83% Median Household Inc $27,500 $32,220 $32,290 Avg Household Size 2.50 2.60 2.60 2014 Avg HH Vehicles 1.00 1.00 1.00 Median Home Value $60,165 $66,804 $74,288 *distance from Property

Building Information Building Information Features List General Building Information Unit Information Floorplans Aerial Photo List List

General Building Information BUILDING INFORMATION Number of Buildings 8 Units Per Building 8 Construction Total Building Size (SF) 89,400 Lot Size (SF) 261,795 Windows Roof Total Units 128 Two-story, partial basement, pitched roofs Primarily new replacement vinyl thermal windows (70%+). Original in remaining units. Windows and sliding doors are being replaced when the unit turns over. Primarily asphalt shingles Unit Breakdown 64 Two Bedroom units approximately 792 SF Domestic Hot Water 64 One Bedroom units approximately 693 SF Gas hot water heaters located in the basements (mostly 40 gal) Compressors Mounted on the ground on some buildings, on the side for the 2631 building Heating Gas FA furnace located in utility closet Cooling Central A/C most compressors mounted on the sides of the buildings

General Building Information UTILITY INFORMATION Electric Water Sewer Trash Gas Ameren UE - paid by tenant (common area and exterior paid by landlord) St. Louis County Water - paid by owner Metropolitan Sewer District - paid by owner Waste Management - paid by owner Laclede Gas paid by tenant

Unit Information No. of Units Bedrooms Baths Size Street Rent Average Rent Street Rent / SF Average Rent / SF Total Potential Rent Street Potential Rent Monthly 64 1 1 550 395 0.718182 303360 475 64 2 2 650 495 0.761538 380160 550 Total Potential Rent 683520 UNIT INFORMATION Heating Air Conditioning Hot Water Kitchen Cabinets Appliances Stove Bathrooms Bathtub Surrounds Electric Gas FA furnace located in utility closet Central A/C compressors located on roofs Individual Gas hot water heaters, 40 gal Wood with Formica countertops, some have been painted white. Furnished Stove, Refrigerator and vent hood. Electric with oven All contain bathtubs with showers and vanities Some are tile and some plastic surrounds Individual panels 100 amp Square D primarily

Floor Plan

Site Aerial View Vacant Building

Income Summary Current Pro-Forma Rent Current* Actual Rent Methodology Market Rent Methodology With last 16 units online Methodology Expenses from 2016 FY 2016** Per Unit Per S.F. % of EGI FY 2017 INCOME Gross Potential Rent $603,485 $714,120 $5,579.06 $8.44 106.12% $762,720 Vacancy Loss N/A (35,706) (278.95) (0.42) (5.31%) (38,136) TOTAL RENTAL INCOME 603,485 678,414 5,300.11 8.02 100.81% 724,584 Rent Concessions EFFECTIVE RENTAL INCOME 603,485 678,414 5,300.11 8.02 100.81% 724,584 Other Income 15,360 120.00 0.18 2.28% 15,360 Credit / Collection Loss (18,105) (20,813) (162.60) (0.25) (3.09%) (22,198) EFFECTIVE GROSS INCOME 585,380 672,961 5,257.51 7.95 100.00% 717,746 EXPENSES Payroll (111,079) (111,079) (867.80) (1.31) (16.51%) (111,079) Supplies and Materials (51,563) (51,563) (402.84) (0.61) (7.66%) (51,563) Contractors (29,288) (29,288) (228.81) (0.35) (4.35%) (29,288) Water* (23,460) (23,460) (183.28) (0.28) (3.49%) (23,460) Sewer * (20,480) (160.00) (0.24) (3.04%) (20,480) Electric (12,120) (12,120) (94.69) (0.14) (1.80%) (12,120) Gas* (4,000) (31.25) (0.05) (0.59%) (4,000) Trash (4,152) (4,152) (32.44) (0.05) (0.62%) (4,152) Phone/Internet (3,939) (3,939) (30.77) (0.05) (0.59%) (3,939) Overhead (56,073) (56,073) (438.07) (0.66) (8.33%) (56,073) Insurance (30,352) (30,352) (237.13) (0.36) (4.51%) (30,352) Property Taxes** (40,776) (70,455) (550.43) (0.83) (10.47%) (70,455) Management Fee (29,269) (33,648) (262.88) (0.40) (5.00%) (35,887) TOTAL EXPENSES (392,071) (450,609) (3,520.38) (5.32) (66.96%) (452,848) NET OPERATING INCOME 193,309 222,352 1,737.12 2.63 33.04% 264,897 CAPITAL EXPENDITURES Capital Reserves (35,200) (35,200) (275.00) (0.42) (5.23%) (35,200) CASH FLOW BEFORE DEBT $158,109 $187,152 $1,462.12 $2.21 27.81% $229,697 PROPOSED FINANCING Debt Service (1st Loan) (170,752) (170,752) (1,334.00) (2.02) (25.37%) (170,752) CASH FLOW AFTER DEBT ($12,642) $16,400 $128.13 $0.19 2.44% $58,946

Financial Information Features List List List Income Summary with Historic Information Rent Roll 10 Year Projection

Rent Roll (Feb 2016) See listing agent for updated rent rolls. Complex is usually 95% or higher occupancy on the available units (112). As of 10/23/2017 occupancy was 95.4% with accepted applications on the remaining 5 units.

10 Year Cash Flow Proforma based on last building being leased Acquisition FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 INCOME Gross Potential Rent $721,920 $739,968 $758,467 $777,429 $796,865 $816,786 $837,206 $858,136 $879,589 $901,579 $924,119 Vacancy Loss (36,096) (36,998) (37,923) (38,871) (39,843) (40,839) (41,860) (42,907) (43,979) (45,079) (46,206) TOTAL RENTAL INCOME 685,824 702,970 720,544 738,557 757,021 775,947 795,346 815,229 835,610 856,500 877,913 Rent Concessions EFFECTIVE RENTAL INCOME 685,824 702,970 720,544 738,557 757,021 775,947 795,346 815,229 835,610 856,500 877,913 Other Income 15,360 15,667 15,981 16,300 16,626 16,959 17,298 17,644 17,997 18,357 18,742 Credit / Collection Loss (21,036) (21,559) (22,096) (22,646) (23,209) (23,787) (24,379) (24,986) (25,608) (26,246) (26,900) EFFECTIVE GROSS INCOME 680,148 697,078 714,429 732,212 750,438 769,118 788,264 807,887 827,998 848,611 869,755 EXPENSES Payroll* (104,079) (106,161) (108,284) (110,449) (112,658) (114,912) (117,210) (119,554) (121,945) (124,384) (126,872) Supplies and Materials* (48,563) (49,534) (50,525) (51,535) (52,566) (53,617) (54,690) (55,784) (56,899) (58,037) (59,198) Contractors (29,288) (29,874) (30,471) (31,081) (31,702) (32,336) (32,983) (33,643) (34,316) (35,002) (35,702) Water (23,460) (23,929) (24,408) (24,896) (25,394) (25,902) (26,420) (26,948) (27,487) (28,037) (28,598) Sewer * (20,480) (20,890) (21,307) (21,734) (22,168) (22,612) (23,064) (23,525) (23,996) (24,475) (24,965) Electric (12,120) (12,362) (12,610) (12,862) (13,119) (13,381) (13,649) (13,922) (14,201) (14,485) (14,774) Trash (4,152) (4,235) (4,320) (4,406) (4,494) (4,584) (4,676) (4,769) (4,865) (4,962) (5,061) Phone and Charter (3,940) (4,019) (4,099) (4,181) (4,265) (4,350) (4,437) (4,526) (4,616) (4,709) (4,803) Overhead (56,073) (57,194) (58,338) (59,505) (60,695) (61,909) (63,147) (64,410) (65,698) (67,012) (68,353) Insurance (30,352) (30,959) (31,578) (32,210) (32,854) (33,511) (34,181) (34,865) (35,562) (36,273) (36,999) Property Taxes (44,918) (45,367) (45,821) (46,279) (46,742) (47,209) (47,681) (48,158) (48,640) (49,126) (49,617) Management Fee (34,007) (34,854) (35,721) (36,611) (37,522) (38,456) (39,413) (40,394) (41,400) (42,431) (43,488) TOTAL EXPENSES (411,432) (419,378) (427,483) (435,749) (444,180) (452,780) (461,551) (470,499) (479,625) (488,933) (498,429) NET OPERATING INCOME 268,716 277,699 286,946 296,463 306,258 316,339 326,713 337,388 348,374 359,678 371,326 CAPITAL EXPENDITURES Capital Reserves (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) (32,000) OPERATING CASH FLOW 236,716 245,699 254,946 264,463 274,258 284,339 294,713 305,388 316,374 327,678 339,326 ACQUISITION / RESIDUAL Acquisition Cost (3,200,000) All Cash Net Residual Value 4,156,611 IRR CASH FLOW BEFORE DEBT ($3,200,000) $236,716 $245,699 $254,946 $264,463 $274,258 $284,339 $294,713 $305,388 $316,374 $4,484,289 10.36% PROPOSED FINANCING Principal (1st Loan) 2,560,000 (1,577,843) Leveraged Loan Fees & Debt Service (1st Loan) (25,600) (198,520) (198,520) (198,520) (198,520) (198,520) (198,520) (198,520) (198,520) (198,520) (198,520) IRR CASH FLOW AFTER DEBT ($665,600) $38,196 $47,180 $56,426 $65,943 $75,738 $85,819 $96,193 $106,868 $117,854 $2,707,926 20.76% Cash-on-Cash Return All Cash 7.40% 7.68% 7.97% 8.26% 8.57% 8.89% 9.21% 9.54% 9.89% 10.24% Leveraged 5.74% 7.09% 8.48% 9.91% 11.38% 12.89% 14.45% 16.06% 17.71% 19.40% Debt Coverage Ratio 1.35 1.40 1.45 1.49 1.54 1.59 1.65 1.70 1.75 1.81

Building Information Appendix Features List Financial Assumptions Lead Paint Disclosure Seller Disclosure List List

Financial Assumptions Income Analysis Period 10 Fiscal Years Beginning 6/1/16 Approximate Building Net Rentable Square Feet 84,640 SF Number of Units 128 Units Unit Mix: FY 2017 Monthly Rent Actual Rent Market Rent Unit Number Number Total SF Per (Average Occupied) Type Occupied Vacant Units Unit Per Unit PSF/Mo. Per Unit PSF/Mo. One Bedroom 54 2 56 620 $405 $0.65 $450 $0.73 Two Bedroom 54 2 56 700 $505 $0.72 $535 $0.76 Down 1 Bedroom 0 8 8 620 $0 $0.00 $475 $0.77 Down 2 Bedroom 0 8 8 720 $0 $0.00 $575 $0.80 Total Current Monthly Rent - FY 2017 $49,140 (Actual Income based on Occupied Units) Total Current Monthly Pro-Forma Rent - FY 2017 $59,510 (Actual Income plus Vacant Units at Market) Total Current Monthly Market Rent - FY 2017 $63,560 Other Income - FY 2017 Actual Per Year Pro-Forma Per Year Per Unit PSF/Year Garage Income (25 mo) $15,360 $120 $0.18 Total Other Income $0 $15,360 $120 $0.18 Deductions and Expenses Expenses - FY 2017 Actual Per Year Pro-Forma Per Year Per Unit PSF/Year Payroll $111,079 $111,079 $868 $1.31 Supplies and Materials $51,563 $51,563 $403 $0.61 Contractors $29,288 $29,288 $229 $0.35 Water* $23,460 $23,460 $183 $0.28 Sewer * $20,480 $160 $0.24 Electric $12,120 $12,120 $95 $0.14 Gas* $4,000 $31 $0.05 Trash $4,152 $4,152 $32 $0.05 Phone/Internet $3,939 $3,939 $31 $0.05 Overhead $56,073 $56,073 $438 $0.66 Insurance $30,352 $30,352 $237 $0.36 Property Taxes** $40,776 $70,455 $550 $0.83 Management Fee $33,648 $263 $0.40 Total Expenses $362,802 $450,609 $3,520 $5.32 Management Fee 5.0% of EGI Capital Reserve Per Unit - FY 2017 $275 per unit *Sewer adjusted based on conventional metrics, taxes now $40,776 which may include water bills. Gas is estimated Growth Rates, Concessions and Capital Expenses **Taxes adjusted based on re-assessment and appeal Market Concessions: Other mated based on re Credit/ Operating Property Capital Capital Rent Free Rent Income Vacancy Collection Expenses Tax Reserves Expense Fiscal Annual Per Unit Annual Loss Loss Annual Annual Annual Amount Year Growth Per Year Growth Percent Percent Growth Growth Growth Per Year Acquisition N/A N/A N/A N/A N/A N/A N/A N/A $0 2017 N/A 0.00 Mo's N/A 5.00% 3.00% N/A N/A N/A $0 2018 2.50% 0.00 Mo's 2.00% 5.00% 3.00% 2.00% 1.00% 0.00% $0 2027 + 2.50% 0.00 Mo's 2.10% 5.00% 3.00% 2.00% 1.00% 0.00% $0 Residual Value Residual Capitalization Rate - Before Reserves 6.95% Cost of Sale 6.00% Proposed Financing 1st Loan 2nd Loan (Interest Only) Loan-To-Value Ratio 80.00% 0.00% Interest Rate FY 2017 + 4.50% 0.00% FY 2025 + 4.50% 0.00% FY 2026 4.50% 0.00% Amortization Period 25 Years N/A Loan Fee 1.00% 0.00%