SPOTLIGHT ON DENTON MULTIFAMILY Rayzor Ranch Development, Phase II Autumn Ridge Exclusive Offering See Below Market Overview Rental Overview 5.2% 6% Three Bedroom 1.19 $ 6% Studio Overall vacancy rate as of Q2 2017, 0.3% lower than the five-year historical average 40% Two Bedroom Current average asking rent per square foot, representing 3.5% growth year-over-year Average Unit Mixes 48% One Bedroom Percentage of inventory absorbed since 2012, accounting for over 1,300 units of positive net absorption 147.4M $ Total sales volume in the last five years, with an average sale price per unit of $54,125 Number of Bedrooms 9.9% Studio $736 1 BDR $748 2 BDR $960 3 BDR $1,296 Data courtesy of Greysteel Research, CoStar Realty Information, Inc. Analysis excludes fully affordable properties and affordable types as follows: student, senior, corporate and military. Analysis includes 237 properties meeting Greysteel survey criteria. Average Asking Rent Per Month 2017 Greysteel / 1
Rent Comparables Fountains of Denton 2401 E. McKinney St One Bedroom $928 $1.08 Two Bedroom $1,179 $1.14 Vitae Residences 1702 N. Ruddell St One Bedroom $895 $1.28 Two Bedroom $1,295 $1.43 Three Bedroom $1,489 $1.12 Arbors of Denton 1103 Bernard St One Bedroom $913 $1.43 Two Bedroom $1,209 $1.42 Three Bedroom $1,681 $1.63 Oaks of Denton 425 Bernard St Studio $703 $1.62 One Bedroom $781 $1.41 Two Bedroom $1,018 $1.21 Three Bedroom $1,231 $1.25 316Fry 316 Fry St Kingswood 3400 Joyce Ln Studio $605 $2.02 One Bedroom $750 $1.28 One Bedroom $775 $1.20 Two Bedroom $850 $1.10 Unit Amenities Property Fountains of Denton Vitae Residences Arbors of Denton Oaks of Denton 316Fry Kingswood Year Built Occupancy 1999 98% 2016 100% 1996 100% 1983 100% 1964 97% 1982 93% Balcony/Patio/Deck Brushed Nickel Hardware Ceiling Fans Fireplace Pet-Friendly Stainless Steel Appliances Washer/Dryer or Hookups Woodlook Flooring Listed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc. and property management. CONTINUE TO SALES COMPARABLES 2017 Greysteel / 2
Sales Comparables The report below features a sampling of properties sold since January 2017 in the Denton area. Please note that different locations, amenity base, asset vintage, unit sizes and mixes, and other variables contribute to variances in sales metrics, and adjustments to comparisons should be made accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a perfect predictor of future market movement and behavior. Centre Place 1509 Centre Place Dr Denton North 3210 Fallmeadow St The Crossing 2413 Prairie St North Point 2830 N. Locust St The Dominion 923-929 W. Sycamore St Forum at Denton Station 201 Inman St Property Close Date February 2017 January 2017 January 2017 January 2017 January 2017 January 2017 No. of Units 27 200 20 24 36 348 Year Built 2013 1974 1979 1974 1985 2008 Seller Local Developer Private Investor Private Investor Private Investor Private Investor Regional Developer Buyer Private Investor Private Investor Private Investor Private Investor Private Investor Regional Real Estate Investment Firm Listed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc. CONTINUE TO EXCLUSIVE OFFERING 2017 Greysteel / 3
Exclusive Offering AUTUMN RIDGE 3401 Joyce Lane Class B Value-Add Opportunity Autumn Ridge offers a new owner the opportunity to complete kitchen and bathroom renovations on 48 of the 64 apartments with a demonstrated ability to increase rents as upgrades are completed. Upgraded units include granite countertops, black appliance packages, upgraded cabinetry with brushed nickel fixtures, and vinyl wood-look flooring. These desirable unit amenities have yielded a premium of $75/month in one-bedroom-one-bath units and a premium of $100/month in twobedroom-one-bath floorplans. Immediate Rental Upside Results of a rental comparison survey conducted, Autumn Ridge s effective rental rates are significantly lower than competing, similar properties. Renovated units at the Property are still $0.13 per square foot below the highest achieving competitor in the one-bedroom space, and unrenovated two bedroom-one-baths are on average $0.15 per square foot below in the twobedroom space. Completion of interior renovations could bring all effective rents up to market rates, upon lease turnover. Close Proximity to World-Class Universities The Property benefits greatly from its preferred location in proximity to both Texas Woman s University (15,000 students - 2017 enrollment) and the University of North Texas (37,973 students - 2016 enrollment). Texas Woman s University is only 1.2 miles away, and the University of North Texas is 2.8 miles, approximately a nine minute drive. The intersection of US Highway 77 and North Elm Street see a traffic volume of 6,000 vehicles per day. The Denton area is expected to see persistent population and rent growth as the Dallas-Fort Worth Metroplex continues to add approximately 150,000 residents a year. Attractive Financing Options This opportunity is being offered free-and-clear of debt. Contact Greysteel Debt & Structured Finance team to benefit from today s historically low interest rates. 2017 Greysteel / 4
DFW DALLAS 10000 N. Central Expressway, Suite 750 Dallas, TX 75231 P. 469.518.5040 F. 202.355.0306 Texas@Greysteel.com FORT WORTH 500 W. 7th Street, 9th Floor Fort Worth, TX 76102 P. 817.406.3260 F. 202.355.0306 Texas@Greysteel.com Phoenix Los Angeles Washington, D.C.* Baltimore New York Philadelphia Dallas Fort Worth Norfolk SALES: BOYAN RADIC Managing Director 469.518.5041 bradic@greysteel.com DOUG BANERJEE Managing Director 469.518.5038 dbanerjee@greysteel.com FINANCE: ANTON MATTLI Senior Director 469.518.5462 amattli@greysteel.com INVESTMENT SALES DEBT & STRUCTURED FINANCE TRANSACTION SERVICES Andrew Mueller Sr. Investment Associate John Marshall Doss Sr. Finance Associate Ari Firoozabadi** CEO & President Duerk Brewer Chief Operating Officer Yassi Farzaneh Director of Corporate Services Andy Stief VP of Marketing Andrew Hanson Investment Associate Zach Ghormley Finance Associate Jared Emery Lead Research Analyst Will Clarke Research Analyst Anne Elizabeth Martin Sr. Transaction Coordinator Sarah Cornejo Senior Designer * Corporate Headquarters and Transaction Services Center ** For more information or to inquire about Greysteel, please contact Ari Firoozabadi, CEO & President (af@greysteel.com 202.417.3873) Greysteel is licensed in: 01984315 California / LL98371301 Washington D.C. / 636050 Maryland / RB068196 Pennsylvania / 9003203 Texas / 0226023703 Virginia / RB0020504 Delaware 2017 Greysteel / 5