PROPERTY FEATURES Located less than 2 miles from downtown Rochester 40 Units: 4-4 plexes; 4-6 plexes On site laundry facilities Detached garages Located in the Meadow Park neighborhood Numerous parks and playing fields are within walking distance Easy access to Highway 52, S Broadway, and numerous bike paths DEMOGRAPHICS 1 Mile 3 Miles 5 Miles Total Households: 3,614 22,356 40,552 Total Population: 8,664 52,420 97,728 Average HH Income: $58,050 $68,182 $76,053
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PROPERTY NAME: Chester Estates STREET ADDRESS: 6th Avenue SE CITY, STATE, ZIP: Rochester, MN 55904 COUNTY: Olmsted County, MN SALE PRICE: To Be Determined PROFORMA N.O.I. $175,402 2017 Budget NUMBER OF BUILDINGS: 8 UNIT MIX: 8-1 BRs 32-2 BRs ZONING: R3 - Medium Density Residential TAXES PAYABLE 2017: $41,696 (Total 8 Buildings) PARKING: Surface & Detached Garages YEAR BUILT: 1969: 4 plexes 1977: 6 plexes NUMBER OF STORIES: 2 LAUNDRY: On-site Laundry Facilities in each building
PROPERTY OVERVIEW The Chester Estates portfolio consists of 8 cozy walk-up apartment buildings with 40 total units consisting of a mix of 1-BRs & 2-BRs. The neighborhood is conveniently located close to shopping, Mayo High School, Graham Arena and downtown Rochester. LOCATION OVERVIEW This portfolio of walk-up apartments is conveniently located less than 2 miles south of the prestigious Mayo Clinic. Tenants have easy access to US-52, South Broadway, and an extensive bike and walking trail system. UNIT COMPOSITION 1537 6th Ave SE: 6 Units (1-1BR, 5-2BR) 1529 6th Ave SE: 6 Units (1-1BR, 5-2BR) 1523 6th Ave SE: 6 Units (1-1BR, 5-2BR) 1515 6th Ave SE: 6 Units (1-1BR, 5-2BR) 1505 6th Ave SE: 4 Units (1-1BR, 3-2BR) 1501 6th Ave SE: 4 Units (1-1BR, 3-2BR) 1469 6th Ave SE: 4 Units (1-1BR, 3-2BR) 1463 6th Ave SE: 4 Units (1-1BR, 3-2BR) AMENITIES Surface and garage parking Garages included with lease On-site laundry facilities in each building AREA INFORMATION Less than 2 miles to downtown Rochester Numerous parks and playing fields within walking distance Close to scenic Bear Creek Trail Rochester has 85+ miles of trails which are bituminous or concrete surfaced and available for pedestrian, bike, skate or stroller use
Chester Estates Rochester MN ADDRESS PID YEAR BUILT UNIT MIX SQFT 2017 TAXES LOT SIZE 1537 6th Ave SE 64.12.23.019961 1977 6 Units: 1 1BR, 5 2BR 4,900 $6,338.00 0.35 1529 6th Ave SE 64.12.23.019960 1977 6 Units: 1 1BR, 5 2BR 4,900 $6,420.00 0.33 1523 6th Ave SE 64.12.23.019959 1977 6 Units: 1 1BR, 5 2BR 4,824 $6,236.00 0.32 1515 6th Ave SE 64.12.23.019958 1977 6 Units: 1 1BR, 5 2BR 4,824 $6,094.00 0.33 1505 6th Ave SE 64.12.23.013533 1969 4 Units: 1 1 BR, 3 2BR 3,328 $4,092.00 0.29 1501 6th Ave SE 64.12.23.013532 1969 4 Units: 1 1 BR, 3 2BR 3,328 $4,354.00 0.26 1469 6th Ave SE 64.12.23.013531 1969 4 Units: 1 1 BR, 3 2BR 3,328 $4,290.00 0.25 1463 6th Ave SE 64.12.23.013530 1969 4 Units: 1 1 BR, 3 2BR 3,328 $3,872.00 0.25 $41,696.00 Approximately 50% of units have garbage disposals There are 41 garages each unit includes one garage in their lease. Remaining garage is for storage Each resident pays their own electricity which includes their unit heating costs New roof completed, permitted and inspected in 2015
ROCHESTER PROJECTED CASHFLOWS MAY 2017 Expense Inflation Factor 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Rent Inflation Factor 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 3% 2% Vacancy/Bad Debt Factor 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% INCOME Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Residential Rental Income $345,150 $352,916 $360,856 $368,976 $377,278 $385,766 $394,446 $403,321 $412,396 $421,675 $431,163 $440,864 $450,783 $460,926 $471,297 Other Income $21,689 $22,177 $22,676 $23,186 $23,708 $24,241 $24,787 $25,344 $25,915 $26,498 $27,094 $27,704 $28,327 $28,964 $29,616 Residential Vacancy 2% ($7,337) ($7,502) ($7,671) ($7,843) ($8,020) ($8,200) ($8,385) ($8,573) ($8,766) ($8,963) ($9,165) ($9,371) ($9,582) ($9,798) ($10,018) Garage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Commercial Vacancy 6% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest on Operating Reserves 3.5% $120 $123 $125 $128 $131 $134 $137 $140 $143 $147 $150 $153 $157 $160 $164 Effective Gross Income $359,622 $367,714 $375,986 $384,447 $393,097 $401,941 $410,985 $420,232 $429,688 $439,357 $449,242 $459,350 $469,685 $480,252 $491,059 EXPENSES Administrative $30,763 $31,532 $32,320 $33,128 $33,957 $34,806 $35,676 $36,568 $37,482 $38,419 $39,379 $40,364 $41,373 $42,407 $43,467 Payroll $30,360 $31,119 $31,897 $32,694 $33,512 $34,350 $35,208 $36,088 $36,991 $37,915 $38,863 $39,835 $40,831 $41,852 $42,898 Utilities $29,928 $30,676 $31,443 $32,229 $33,035 $33,861 $34,707 $35,575 $36,464 $37,376 $38,310 $39,268 $40,250 $41,256 $42,287 Real Estate Taxes $41,600 $42,640 $43,706 $44,799 $45,919 $47,067 $48,243 $49,449 $50,686 $51,953 $53,252 $54,583 $55,947 $57,346 $58,780 Repairs & Maint $29,169 $29,169 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Insurance and Fees $14,400 $14,760 $15,129 $15,507 $15,895 $16,292 $16,700 $17,117 $17,545 $17,984 $18,433 $18,894 $19,366 $19,851 $20,347 Replacement Reserves $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Expenses and Reserves $184,220 $187,896 $187,495 $191,357 $195,318 $199,376 $203,534 $207,797 $212,168 $216,647 $221,237 $225,944 $230,767 $235,712 $240,779 NET OPERATING INCOME $175,402 $179,818 $188,491 $193,090 $197,779 $202,565 $207,451 $212,435 $217,520 $222,710 $228,005 $233,406 $238,918 $244,540 $250,280
Improvements All Buildings Driveway, parking areas Install new Bituminous surface Exterior foundation clean and tuck point Re roof buildings and garages New gutters & downspouts Update front porches Removed vinyl flooring replaced with sheet linoleum in laundry rooms and kitchens New carpet and pad in common area stairs, landings and hallways New bathroom exhaust fans All plumbing fixtures were reviewed for leaking and replaced or repaired and water saving devices installed 1537 6 th Avenue South East, Rochester MN New siding on apartment building and garage New metal wrap 1529 6 th Avenue South East, Rochester MN New siding on apartment building and garage New metal wrap 1523 6 th Avenue South East, Rochester MN Exterior paint building and garage 1515 6 th Avenue South East, Rochester MN Exterior paint building and garage 1505 6 th Avenue South East, Rochester MN New concrete front and back sidewalks New exterior entry door 1501 6 th Avenue South East, Rochester MN New concrete front and back sidewalks New exterior entry door
1469 6 th Avenue South East, Rochester MN New concrete front and back sidewalks New exterior entry door 1463 6 th Avenue South East, Rochester MN New concrete front and back sidewalks New exterior entry door
1537 6TH AVENUE SE 1529 6TH AVENUE SE 1523 6TH AVENUE SE 1515 6TH AVENUE SE
1505 6TH AVENUE SE 1501 6TH AVENUE SE 1469 6TH AVENUE SE 1463 6TH AVENUE SE
MULTI-FAMILY PORTFOLIO FOR SALE
POPULATION 1 MILE 3 MILES 5 MILES TOTAL POPULATION 8,664 52,420 97,728 MEDIAN AGE 35.3 38.7 38.0 MEDIAN AGE (MALE) 34.1 36.7 36.4 MEDIAN AGE (FEMALE) 36.2 39.6 38.7 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES TOTAL HOUSEHOLDS 3,614 22,356 40,552 # OF PERSONS PER HH 2.4 2.3 2.4 AVERAGE HH INCOME $58,050 $68,182 $76,053 AVERAGE HOUSE VALUE $149,591 $173,171 $193,382 RACE 1 MILE 3 MILES 5 MILES % WHITE 88.7% 85.6% 86.0% % BLACK 3.3% 5.7% 5.6% % ASIAN 5.0% 5.5% 5.3% % HAWAIIAN 0.0% 0.0% 0.1% % INDIAN 0.0% 0.3% 0.3% % OTHER 0.9% 0.9% 0.8% ETHNICITY 1 MILE 3 MILES 5 MILES % HISPANIC 9.7% 6.8% 5.7% * Demographic data derived from 2010 US Census