OFFERING MEMORANDUM NEW CONSTRUCTION 12 PLEX IN AMERICAN FORK, UT 543 South 850 East American Fork UT 84003 Easton Park 12 Plex
East on Park 12 Plex CONTENTS 01 Executive Summary Executive Summary 5 Unit Mix Summary 7 Location Summary 8 02 Property Description Property Features 10 Common Amenities 11 Unit Amenities 12 03 On Market Comps On Market Comparables Summary 14 On Market Comparables Charts 15 On Market Comparables Map 16 06 Financial Analysis Income & Expense Analysis 31 Multiyear Cash Flow Assumptions 32 Cash Flow Analysis 33 Disposition Sensitivity Analysis 35 07 Demographics Demographics 37 Demographic Charts 38 08 Additional Information 04 Sale Comps Sale Comps 18 05 Rent Roll Rent Roll Details 29 Steve Olson 801.362.3392 solson@fig.us We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
Easton Park 12 Plex Confidentiality and Disclaimer 03 CONFIDENTIALITY AND DISCLAIMER: The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Re/Max Equity and it should not be made available to any other person or entity without the written consent of Re/Max Equity. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Re/Max Equity. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Re/Max Equity has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Re/Max Equity has not verified, and will not verify, any of the information contained herein, nor has Re/Max Equity conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE RE/ MAX EQUITY ADVISOR FOR MORE DETAILS. Copyright 2018 CREOP, LLC. All Rights Reserved.
Easton Park 12 Plex Executive Summary 01... Executive Summary Offering Summary Unit Mix Summary Location Summary EASTON PARK 12 PLEX
Easton Park 12 Plex Executive Summary 05 OFFERING SUMMARY ADDRESS 543 South 850 East American Fork UT 84003 COUNTY Utah MARKET Utah County SUBM ARKET American Fork BUILDING SF 13,720 NUMBER OF UNITS 12 APN 38-502-0026 OWNERSHIP TYPE Fee Simple FINANCIAL SUMMARY OFFERING PRICE $2,650,000 PRICE PSF $193.15 PRICE PER UNIT $220,833 OCCUPANCY 100.00 % NOI (CURRENT) $131,773 NOI (Pro Forma) $135,206 CAP RATE (CURRENT) 4.97 % CAP RATE (Pro Forma) 5.10 % PROPOSED FINANCING LOAN TYPE Fully Amortized DOWN PAYMENT $662,500 LOAN AMOUNT $1,987,500 INTEREST RATE 5.25 % ANNUAL DEBT SERVICE $131,697 LOAN TO VALUE 75 % NOTES Assumes commercial financing fully amortizing over 30 years (likely with 10 year balloon). Association will make a one time charge of $400/ door upon acquisition as a reinvestment fee. DEMOGRAPHICS 1 MILE 3 MILE 5 MILE 2017 Population 11,670 72,104 142,346 2017 Median HH Income $59,592 $71,638 $77,525 2017 Average HH Income $74,837 $88,718 $95,562
Easton Park 12 Plex Executive Summary 06 In late 2017, the Fourplex Investment Group began delivering the first phase of Easton Park, a master planned multi family development in the heart of American Fork, UT. The project is comprised of 340 units, mixed between townhouse and apartment units. With the project located in American Fork, it's uniquely positioned to take advantage of the massive technology boom happening in North Utah County. With record tech expansion and unemployment at all time lows, there is currently more demand for housing in Utah County than there is supply.
East on Park 12 Plex Unit Mix Summary 07 Actual Market Unit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income 1 bd / 1 ba 4 770 $1,050 $1.36 $4,200 $1,050 $1.36 $4,200 3 bd / 2 ba 8 1,330 $1,360 $1.02 $10,880 $1,360 $1.02 $10,880 Tot als/ Averages 12 1,143 $1,257 $1.14 $15,080 $1,257 $1.14 $15,080
Easton Park 12 Plex Location Summary 08 Easton Park is located between the the high traffic exits of Pleasant Grove Blvd and 500 East off of Interstate 15, the main traffic artery in Utah County. Tenants in Easton Park have easy access to surrounding businesses in American Fork, or a 5-10 minute drive to the large tech office expansion in Pleasant Grove and Lehi. Companies like Adobe, Exactware, Intel/ Micron, Domo, and others are fueling the demand for rental housing in the area.
Easton Park 12 Plex Property Description 02... Property Description Property Features Aerial Map Parcel Map Additional Maps Amenities Property Images EASTON PARK 12 PLEX
Easton Park 12 Plex Property Features 10 Site Description NUMBER OF UNITS 12 BUILDING SF 13,720 LAND ACRES 0.12 # OF PARCELS 1 ZONING TYPE R3 BUILDING CLASS Multi Fam TOPOGRAPHY Flat NUMBER OF STORIES 3 NUMBER OF BUILDINGS 1 NUMBER OF PARKING SPACES 24
Easton Park 12 Plex Common Area Amenities
East on Park 12 Plex Unit Amenities
East on Park 12 Plex On Market Comps 03... On Market Comps On Market Comparables On Market Comparables Charts On Market Comparables Map EASTON PARK 12 PLEX
1 S Easton Park 12 Plex On Market Comparables Summary 14 TOTAL UNITS 3 YEAR BUILT 2017 Cap Rat e Range 4.97 % - 5.00 % LOW HIGH ASKING PRICE $640,000 PRICE/ UNIT $213,333 PRICE/ SF $186.59 Price/ Unit Range $213,333 - $220,833 LOW HIGH Easton Park Unit 10 748 East 480 South, American Fork, UT 84003 CAP RATE 5.00 % Year Built - 2017 LOW HIGH TOTAL UNITS 12 ASKING PRICE $2,650,000 Cap Rat e Range 4.97 % - 5.00 % LOW HIGH PRICE/ UNIT $220,833 PRICE/ SF $193.15 CAP RATE 4.97 % Price/ Unit Range $213,333 - $220,833 LOW HIGH Easton Park 12 Plex 543 South 850 East, American Fork, UT OCCUPANCY 100.00 % Year Built LOW HIGH
Easton Park 12 Plex On Market Comparables Charts 15
Easton Park 12 Plex On Market Comparables Map 16 # Property Name Address City S Easton Park 12 Plex 543 South 850 East American Fork 1 Easton Park Unit 10 748 East 480 South American Fork
Easton Park 12 Plex Sale Comps 04... Sale Comps Sales Comparables EASTON PARK 12 PLEX
East on Park 12 Plex Sale Comps 18 1 748 E 480 S - Easton Park Unit 10 - Easton Park American Fork, UT 84003 3,430 SF Apartments Building Built in 2018 Property is for sale at $640,000 ($213,333.33/Unit) FOR SALE Sales Co: Remax Equity Sales Contact 1: Chase Leavitt (435) 632-7028 295 W Center St Provo, UT 84601 (801) 477-0844 Sale Contacts For Sale Data Asking Price: $640,000 Sale Type: Investment Price/SF: $186.59 Bldg Status: Built in 2018 Days on Market: 56 RBA: 3,430 SF Sale Status: Active Price/Unit: $213,333.33 # of Units: 3 Actual Cap Rate: - GRM/GIM: -/- Parcel No: 66-531-0067 Spacer # Units: 3 Price/Unit: $213,333.33 Avg Unit Size: 1,143 SF Spacer Spacer Transaction Notes Brand new triplex in the Easton Park complex located in American Fork. This unit will be completed and rent ready within the next 1-2 months. This project features a 7 acre park, gray tones throughout, upgraded appliances, already installed blinds, one year builder warranty included. See attached building plans and proforma. Contact agent(s) for pricing for other units. Square footage figures are provided as a courtesy estimate only and were obtained from builders plans. Buyer is advised to obtain an independent measurement. Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 1
East on Park 12 Plex Sale Comps 19 748 E 480 S - Easton Park Unit 10 - Easton Park FOR SALE Property is for sale at $640,000 ($213,333.33/Unit) (con't) Current Building Information ID: 10202535 Bldg Type: Apartments # Units: Avg Unit Size: 3 1,143 SF Bldg Vacant: 0 SF Owner Type: Individual Zoning: - Land Area: - Bldg Status: Built in 2018 Bldg Size: Stories: 3,430 SF 3 Typical Floor Size: 1,143 SF Rent/SF/Yr: For Sale Only Elevators: 0 Spacer Parking: Expenses: Site Amenities: Park Name: Metro Market: Submarket: County: CBSA: CSA: DMA: 2 Covered Spaces @ $100.00/mo; Ratio of 0.58/1,000 SF; 0.67/Unit 2017 Tax @ $311.72/Unit Air Conditioning, Barbecue Area, Carpet, Dishwasher, Disposal, Family Room, Green Community, Heating, Kitchen, Pet Play Area, Picnic Area, Refrigerator, Smoke Free, Tub/Shower, Vinyl Flooring, Walking/Biking Trails, Washer/Dryer Hookup Location Information Easton Park Salt Lake City North Utah County MF/North Utah County MF Utah Provo-Orem, UT Salt Lake City-Provo-Orem, UT Salt Lake City, UT-WY-ID-NV Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 2
East on Park 12 Plex Sale Comps 20 2 752 E 480 S - Easton Park Unit 35 - Easton Park American Fork, UT 84003 3,430 SF Apartments Building Built in 2016 Property is for sale at $625,000 ($208,333.33/Unit) FOR SALE Sales Co: Silvercreek Realty Group Sales Contact 1: Sam Newell (208) 377-0422 1099 S Wells St Meridian, ID 83642 (208) 377-0422 Sale Contacts For Sale Data Asking Price: $625,000 Sale Type: Investment Price/SF: $182.22 Bldg Status: Built in 2016 Days on Market: 41 RBA: 3,430 SF Sale Status: Active Price/Unit: $208,333.33 # of Units: 3 Actual Cap Rate: - GRM/GIM: -/- Parcel No: 38-502-0035 Spacer # Units: 3 Avg Unit Size: 1,143 SF SF of all Units: 3,429 Spacer Transaction Notes Price/Unit: Spacer $208,333.33 https://samnewell.rmxequity.com/homes/483-e-850-e/american-fork/ut/84003/80334868/ Brand new triplex in the Easton Park complex located in American Fork. This unit will be completed and rent ready end of March. This project features a 7 acre park, gray tones throughout, upgraded appliances, already installed blinds, one year builder warranty included. See attached building plans and proforma. Contact agent(s) for pricing for other units. Agt Remarks: Please contact agent(s) for showing and with any additional questions. HOA Remarks: HOA fee of $155 per unit per month. HOA covers: Exterior Insurance, Gym, Gathering space, 2 Parks (operated by the city), Comcast Internet (100mbps), Water, Sewer, Trash, Landscape & Snow Removal, HOA Master Policy (owner's need individual policies), Reserve Fund and No Pet Restrictions. Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 3
East on Park 12 Plex Sale Comps 21 752 E 480 S - Easton Park Unit 35 - Easton Park FOR SALE Property is for sale at $625,000 ($208,333.33/Unit) (con't) Current Building Information ID: 10207886 Bldg Type: Apartments Bldg Status: Built in 2016 # Units: Avg Unit Size: 3 1,143 SF Bldg Size: Stories: 3,430 SF 3 Bldg Vacant: 0 SF Typical Floor Size: 1,143 SF Owner Type: Individual Metering: Individually Metered Zoning: Multi Family Rent/SF/Yr: For Sale Only Land Area: 0.03 AC Elevators: 0 Spacer Parking: Expenses: Site Amenities: Park Name: Metro Market: Submarket: County: CBSA: CSA: DMA: 2 One-Car Garage Spaces @ $95.00/mo; Ratio of 0.58/1,000 SF; 0.67/Unit 2017 Tax @ $177.32/Unit Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Dishwasher, Disposal, Double Pane Windows, Fitness Center, Granite Countertops, Handrails, Heating, High Speed Internet Access, Kitchen, Microwave, Pet Play Area, Playground, Range... Location Information Easton Park Salt Lake City North Utah County MF/North Utah County MF Utah Provo-Orem, UT Salt Lake City-Provo-Orem, UT Salt Lake City, UT-WY-ID-NV Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 4
East on Park 12 Plex Sale Comps 22 3 100 N Main St - Bella Grace Apartments Pleasant Grove, UT 84062 Sale on 3/31/2017 for $6,860,000 ($113.80/SF; $403,529/Unit) - Research Complete 17 Unit, 60,280 SF Class B Apartments Building Built in Nov 2016 SOLD Buyer & Seller Contact Info Recorded Buyer: Bella Grace Apartments LLC Recorded Seller: Ellwanger Property Holdings-Evelyns Drive LLC CAB PG LLC True Buyer: Russell H Long Russell Long 29 Toledo Way San Francisco, CA 94123 (415) 401-0400 True Seller: Lotus Equities Bryan Wrigley 4181 Olympic Way Salt Lake City, UT 84124 (801) 556-3553 Buyer Type: Individual Seller Type: Other - Private Buyer Broker: Newmark Grubb Acres Listing Broker: Newmark Grubb Acres Mark Jensen (801) 441-1200 Greg Ratliff (801) 441-1203 Mark Jensen (801) 441-1200 Greg Ratliff (801) 441-1203 Transaction Details ID: 3987873 Sale Date: Escrow Length: 03/31/2017 90 days Sale Price: $6,860,000-Confirmed Asking Price: - Price/SF: $113.80 Price/AC Land Gross: $4,287,500.00 Sale Type: Bldg Type: Year Built/Age: RBA: Land Area: Investment Apartments Built in Nov 2016 60,280 SF 1.60 AC (69,696 SF) Percent Leased: - GRM/GIM: -/- Percent Improved: 78.3% Actual Cap Rate: 5.28% Total Value Assessed: $778,900 in 2017 Sale Conditions: 1031 Exchange Improved Value Assessed $609,600 - Land Value Assessed: $169,300 Land Assessed/AC: $105,812 Spacer Financing: Down payment of $2,075,000.00 (30.2%) $4,785,000.00 from Hunt Mortgage Capital, LLC:: 4.61%,: due in 10 yrs Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 5
East on Park 12 Plex Sale Comps 23 100 N Main St - Bella Grace Apartments SOLD 17 Unit, 60,280 SF Class B Apartments Building Built in Nov 2016 (con't) Legal Desc: Lot 1, Bella Grace Plat "A" subdiv, Utah County. Parcel No: 35-680-0001 Document No: 000000030950 Spacer # Units: 17 Price/Unit: Avg Unit Size: SF of all Units: 2,087 SF 35,490 Avg Rent/Unit/Mo: Avg Rent/SF/Mo: Spacer Spacer UNIT MIX AT TIME OF SALE $403,529 $1,531 $0.73 Units Asking Rent Effective Rent Concessions Bed/Bath # % Avg SF Vacant Min/Unit Max/Unit Min/SF Max/SF Min/Unit Max/Unit Min/SF Max/SF % 3/2.5 10 58.8 1,750 - $1,499 $1,499 $0.86 $0.86 - - - - - 3/4.0 7 41.2 2,570 - $1,650 $1,650 $0.64 $0.64 - - - - - Transaction Notes The 60,280 SF multi-family building located at 100 N Main St in Pleasant Grove, UT was sold on 3/31/2017 to Russell Long for $6,860,000. Bryan Wrigley (True Seller) verified the sale price, the brokers involved and that this property traded at a 5.28% cap rate. Russell Long (True Buyer) thought the purchase price was closer to $7,000,000, but he couldn't confirm because he didn't have the information handy when we spoke with him. He also disclosed that both he and the seller completed a 1031 exchange in this transaction. The details regarding this transaction were verified by the Listing/Buyer's Brokers, True Seller, True Buyer and Warranty Deed. Current Building Information ID: 9586431 Bldg Type: Apartments Bldg Status: Built in Nov 2016 # Units: Avg Unit Size: 17 2,087 SF Bldg Size: Stories: 60,280 SF 3 Bldg Vacant: 0 SF Typical Floor Size: 20,093 SF Owner Type: Individual Metering: Individually Metered Zoning: - Rent/SF/Yr: - Land Area: 1.60 AC Elevators: 0 Spacer Parking: Site Amenities: Metro Market: Submarket: County: CBSA: CSA: DMA: 30 are available; 30 Surface Spaces are available; Ratio of 0.99/1,000 SF; 3.53/Unit Balcony, Dishwasher, High Speed Internet Access, Kitchen, Maintenance on site, Oven, Package Service, Patio, Property Manager on Site, Range, Refrigerator, Stainless Steel Appliances, Storage Units, Tub/Shower, Walk-In Closets, Washer/Dryer Location Information Salt Lake City North Utah County MF/North Utah County MF Utah Provo-Orem, UT Salt Lake City-Provo-Orem, UT Salt Lake City, UT-WY-ID-NV Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 6
East on Park 12 Plex Sale Comps 24 748 E 480 S Easton Park Unit 10 - Easton Park American Fork, UT 84003 3,430 SF Apartments Building Built in 2018 Property is for sale at $640,000 ($213,333.33/Unit) buyer For Sale seller - vital data Days on Market: 56 days Conditions: - Land Area SF: - Acres: - $/SF Land Gross: - Year Built, Age: 2018 Parking Spaces: 2 Parking Ratio: 0.67/Unit FAR - Lot Dimensions: - Frontage: - Asking Price: $640,000 Status: For Sale Building SF: 3,430 SF Price/SF: $186.59 Pct Office: - Actual Cap Rate: 5.2% Price/Unit: No Units: 3 Corner: No Zoning: - Submarket: North Utah County MF Map Page: - Parcel No: 66-531-0067 Property Type: Multi-Family income expense data Listing Broker Remax Equity 295 W Center St Provo, UT 84601 (801) 477-0844 Chase Leavitt Fourplex Investment Group 295 W Center St Provo, UT 84601 (801) 899-1950 Steve Olson Buyer Broker Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 7
East on Park 12 Plex Sale Comps 25 752 E 480 S Easton Park Unit 35 - Easton Park American Fork, UT 84003 3,430 SF Apartments Building Built in 2016 Property is for sale at $625,000 ($208,333.33/Unit) buyer For Sale seller - vital data Days on Market: 41 days Conditions: - Land Area SF: 1,307 SF Acres: 0.03 AC $/SF Land Gross: - Year Built, Age: 2016 Age: 2 Parking Spaces: 2 Parking Ratio: 0.67/Unit FAR 2.62 Lot Dimensions: - Frontage: - Asking Price: $625,000 Status: For Sale Building SF: 3,430 SF Price/SF: $182.22 Pct Office: - Actual Cap Rate: 5.6% Price/Unit: No Units: 3 Corner: No Zoning: Multi Family Submarket: North Utah County MF Map Page: - Parcel No: 38-502-0035 Property Type: Multi-Family income expense data Listing Broker Silvercreek Realty Group 1099 S Wells St Meridian, ID 83642 (208) 377-0422 Sam Newell Buyer Broker Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 8
East on Park 12 Plex Sale Comps 26 100 N Main St Bella Grace Apartments Pleasant Grove, UT 84062 Class B Apartments Building 17 Units of 60,280 SF Sold on 3/31/2017 for $6,860,000 - Research Complete buyer Russell H Long 29 Toledo Way San Francisco, CA 94123 (415) 401-0400 seller Lotus Equities 4181 Olympic Way Salt Lake City, UT 84124 (801) 556-3553 vital data Escrow/Contract: 90 days Sale Date: 3/31/2017 Days on Market: - Exchange: Yes Conditions: 1031 Exchange 0 Bedroom: 0 1 Bedroom: 0 2 Bedroom: 0 3 Bedroom: 17/100% (3 + 4)(3 + 2) Other: 0 Land Area SF: 69,696 Acres: 1.6 $/SF Land Gross: $98.43 Year Built, Age: 2016 Parking Spaces: 60 Parking Ratio: 3.53/Unit FAR 0.86 Lot Dimensions: - Frontage: - Comp ID: 3987873 income expense data Sale Price: $6,860,000 Status: Confirmed Building SF: 60,280 SF Price/SF: $113.80 Pro Forma Cap Rate: - Actual Cap Rate: 5.28% Price/Unit: $403,529 No Units: 17 Down Pmnt: $2,075,000 Pct Down: 30.2% Doc No: 000000030950 Trans Tax: - Corner: No Zoning: - Percent Improved: 78.3% Submarket: North Utah County MF Map Page: - Parcel No: 35-680-0001 Property Type: Multi-Family Listing Broker Net Income Net Operating Income - Debt Service - Capital Expenditure Cash Flow $387,537 Newmark Grubb Acres 376 E 400 S Salt Lake City, UT 84111 (801) 578-5555 Mark Jensen, Greg Ratliff Buyer Broker Newmark Grubb Acres 376 E 400 S Salt Lake City, UT 84111 (801) 578-5555 Mark Jensen, Greg Ratliff financing 1st Hunt Mortgage Capital, LLC (4.61%, due in 10 yrs) Bal/Pmt: $4,785,000 Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 9
East on Park 12 Plex Sale Comps 27 UNIT MIX AT TIME OF SALE Units Asking Rent Effective Rent Concessions Bed/Bath # % Avg SF Vacant Min/Unit Max/Unit Min/SF Max/SF Min/Unit Max/Unit Min/SF Max/SF % 3/2.5 10 58.8 1,750 - $1,499 $1,499 $0.86 $0.86 - - - - - 3/4.0 7 41.2 2,570 - $1,650 $1,650 $0.64 $0.64 - - - - - Copyrighted report licensed to Fourplex Investment Group - 842923. 3/12/2018 Page 10
East on Park 12 Plex Rent Roll 05... Rent Roll Rent Roll Det ails EASTON PARK 12 PLEX
Easton Park 12 Plex Rent Roll Details 29 Unit Square Feet Unit Mix Monthly Rent PSF Market Rent 1A 770 1 bd / 1 ba $1,050 $1.36 $1,050 1B 1,330 3 bd / 2 ba $1,350 $1.02 $1,350 1C 1,330 3 bd / 2 ba $1,370 $1.03 $1,370 2A 770 1 bd / 1 ba $1,050 $1.36 $1,050 2B 1,330 3 bd / 2 ba $1,350 $1.02 $1,350 2C 1,330 3 bd / 2 ba $1,370 $1.03 $1,370 3A 770 1 bd / 1 ba $1,050 $1.36 $1,050 3B 1,330 3 bd / 2 ba $1,350 $1.02 $1,350 3C 1,330 3 bd / 2 ba $1,370 $1.03 $1,370 4A 770 1 bd / 1 ba $1,050 $1.36 $1,050 4B 1,330 3 bd / 2 ba $1,350 $1.02 $1,350 4C 1,330 3 bd / 2 ba $1,370 $1.03 $1,370 Notes: "Current Rent" column is comprised of a base rent plus a mandatory amenity fee of $75/mo.
Easton Park 12 Plex Financial Analysis 06... Financial Analysis Income & Expense Multiyear Cash Flow Assumptions Multiyear Cash Flow Projections Disposition Sensitivity Analysis EASTON PARK 12 PLEX
Easton Park 12 Plex Income & Expense Analysis 31 INCOME CURRENT PRO FORMA Gross Potential Rent $180,960 $180,960 REVENUE ALLOCATION Garage Rent $9,120 Gross Potential Income $180,960 $190,080 Less: General Vacancy $5,429 Effective Gross Income $180,960 $184,651 Less: Expenses $49,187 $49,446 Net Operating Income $131,773 $135,206 Annual Debt Service $131,697 $131,697 Debt Coverage Ratio 1.00 1.03 Cash Flow After Debt Service $76 $3,508 Principal Reduction $27,354 $27,354 Total Return 4.1 % $27,429 4.7 % $30,862 Income Notes: 12 plex includes 8 single car attached garages with a market rent of $95/ mo per garage. EXPENSES Per Unit CURRENT Per Unit PRO FORMA Real Estate Taxes $1,167 $14,000 $1,167 $14,000 DISTRIBUTION OF EXPENSES Insurance $117 $1,400 $117 $1,400 Management Fee $1,056 $12,667 $1,077 $12,926 Repairs & Maint enance $160 $1,920 $160 $1,920 Association Fees $1,600 $19,200 $1,600 $19,200 Total Operating Expense $4,099 $49,187 $4,120 $49,446 Expense / SF $3.58 $3.60 % of EGI 27.18 % 26.78 %
East on Park 12 Plex Multiyear Cash Flow Assumptions 32 GLOBAL Consumer Price Index (growth rate) 2.00 % INCOME GROWTH RATES Gross Potential Rent 3.00 % Garage Rent 3.00 % EXPENSE GROWTH RATES Real Estate Taxes 3.00 % Insurance 3.00 % Repairs & Maintenance 3.00 % Association Fees 3.00 % PROPOSED FINANCING Loan Type Fully Amortized Down Payment $662,500 Loan Amount $1,987,500 Interest Rate 5.25 % Annual Debt Service $131,697 Loan t o Value 75 % Notes Assumes commercial financing fully amortizing over 30 years (likely with 10 year balloon). Association will make a one time charge of $400/ door upon acquisition as a reinvestment fee.
Easton Park 12 Plex Cash Flow Analysis 33 CASH FLOW Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Pot ent ial Revenue Gross Rental Income $180,960 $180,960 $186,389 $191,980 $197,740 $203,672 $209,782 $216,076 $222,558 $229,235 Garage Rent $9,120 $9,394 $9,675 $9,966 $10,265 $10,573 $10,890 $11,216 $11,553 General Vacancy $5,429 $5,592 $5,759 $5,932 $6,110 $6,293 $6,482 $6,677 $6,877 Effective Gross Income $180,960 $184,651 $190,191 $195,896 $201,773 $207,827 $214,061 $220,483 $227,098 $233,911 Operating Expenses Real Estate Taxes $14,000 $14,000 $14,420 $14,853 $15,298 $15,757 $16,230 $16,717 $17,218 $17,735 Insurance $1,400 $1,400 $1,442 $1,485 $1,530 $1,576 $1,623 $1,672 $1,722 $1,773 Management Fee $12,667 $12,926 $13,313 $13,713 $14,124 $14,548 $14,984 $15,434 $15,897 $16,374 Repairs & Maint enance $1,920 $1,920 $1,978 $2,037 $2,098 $2,161 $2,226 $2,293 $2,361 $2,432 Association Fees $19,200 $19,200 $19,776 $20,369 $20,980 $21,610 $22,258 $22,926 $23,614 $24,322 Total Operating Expense $49,187 $49,446 $50,929 $52,457 $54,031 $55,651 $57,321 $59,041 $60,812 $62,636 Net Operating Income $131,773 $135,206 $139,262 $143,440 $147,743 $152,175 $156,740 $161,443 $166,286 $171,274 Annual Debt Service $131,697 $131,697 $131,697 $131,697 $131,697 $131,697 $131,697 $131,697 $131,697 $131,697 Effective Gross Income vs Operating Expenses Cash Flow
Easton Park 12 Plex Cash Flow Analysis 34 Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Financial Met rics Cash on Cash Ret urn b/ t 0.01 % 0.53 % 1.14 % 1.77 % 2.42 % 3.09 % 3.78 % 4.49 % 5.22 % 5.97 % CAP Rate 4.97 % 5.10 % 5.26 % 5.41 % 5.58 % 5.74 % 5.91 % 6.09 % 6.27 % 6.46 % Debt Coverage Ratio 1.00 1.03 1.06 1.09 1.12 1.16 1.19 1.23 1.26 1.30 Operating Expense Ratio 27.18 % 26.77 % 26.77 % 26.77 % 26.77 % 26.77 % 26.77 % 26.77 % 26.77 % 26.77 % Loan to Value 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % Breakeven Ratio 99.96 % 98.10 % 96.02 % 94.01 % 92.05 % 90.15 % 88.30 % 86.51 % 84.77 % 83.08 % Price / SF $193 $193 $193 $193 $193 $193 $193 $193 $193 $193 Price / Unit $220,833 $220,833 $220,833 $220,833 $220,833 $220,833 $220,833 $220,833 $220,833 $220,833 Expense / SF $4 $4 $4 $4 $4 $4 $4 $4 $4 $5 Income / SF $13 $13 $14 $14 $15 $15 $16 $16 $17 $17
Easton Park 12 Plex Disposition Sensitivity Analysis 35 SENSITIVITY ANALYSIS 5 YEARS EXIT CAP RATE PROJECTED SALES PRICE SALES PRICE/ UNIT SALES PRICE PSF PROCEEDS AFTER LOAN PAYOFF 0.25% $59,097,131 $4,924,761 $4,307 $57,241,888 144.07% 0.50% $29,548,565 $2,462,380 $2,154 $27,693,322 111.14% 0.75% $19,699,044 $1,641,587 $1,436 $17,843,800 93.43% 1.00% $14,774,283 $1,231,190 $1,077 $12,919,039 81.37% 1.25% $11,819,426 $984,952 $861 $9,964,183 72.24% 1.50% $9,849,522 $820,793 $718 $7,994,279 64.85% 1.75% $8,442,447 $703,537 $615 $6,587,204 58.63% 2.00% $7,387,141 $615,595 $538 $5,531,898 53.23% 2.25% $6,566,348 $547,196 $479 $4,711,105 48.43% IRR SENSITIVITY ANALYSIS 10 YEARS EXIT CAP RATE PROJECTED SALES PRICE SALES PRICE/ UNIT SALES PRICE PSF PROCEEDS AFTER LOAN PAYOFF 0.25% $68,509,772 $5,709,148 $4,993 $66,777,984 58.87% 0.50% $34,254,886 $2,854,574 $2,497 $32,523,098 47.95% 0.75% $22,836,591 $1,903,049 $1,664 $21,104,803 41.78% 1.00% $17,127,443 $1,427,287 $1,248 $15,395,656 37.46% 1.25% $13,701,954 $1,141,830 $999 $11,970,167 34.11% 1.50% $11,418,295 $951,525 $832 $9,686,508 31.38% 1.75% $9,787,110 $815,593 $713 $8,055,323 29.05% 2.00% $8,563,721 $713,643 $624 $6,831,934 27.01% 2.25% $7,612,197 $634,350 $555 $5,880,409 25.19% IRR
Easton Park 12 Plex Demographics 07... Demographics Demographic Details Demographic Charts EASTON PARK 12 PLEX
Easton Park 12 Plex Demographics 37 POPULATION 1 MILE 3 MILE 5 MILE HOUSEHOLDS 1 MILE 3 MILE 5 MILE 2000 Population 8,886 45,039 84,713 2000 Total Housing 2,477 12,263 22,434 2010 Population 10,356 64,181 125,081 2010 Total Households 3,042 17,635 33,088 2017 Population 11,670 72,104 142,346 2017 Total Households 3,492 19,995 37,876 2022 Population 12,553 78,143 154,692 2022 Total Households 3,779 21,765 41,259 2017 African American 45 418 848 2017 Average Household Size 3.33 3.59 3.75 2017 American Indian 89 338 667 2000 Owner Occupied Housing 1,664 9,250 17,790 2017 Asian 114 933 1,909 2000 Renter Occupied Housing 750 2,617 3,954 2017 Hispanic 1,235 5,839 10,557 2017 Owner Occupied Housing 2,219 14,272 28,746 2017 White 10,515 65,752 130,429 2017 Renter Occupied Housing 1,273 5,722 9,130 2017 Other Race 458 2,164 3,816 2017 Vacant Housing 124 659 1,270 2017 Multiracial 377 2,055 3,783 2017 Total Housing 3,616 20,654 39,146 2017-2022: Population: Growth Rate 7.35 % 8.10 % 8.40 % 2022 Owner Occupied Housing 2,391 15,446 31,187 2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE less than $15,000 197 1,086 1,801 $15,000-$24,999 253 1,166 1,792 $25,000-$34,999 337 1,375 2,253 2022 Renter Occupied Housing 1,388 6,318 10,072 2022 Vacant Housing 135 697 1,363 2022 Total Housing 3,914 22,462 42,622 2017-2022: Households: Growth Rate 7.95 % 8.55 % 8.65 % $35,000-$49,999 556 2,575 4,276 $50,000-$74,999 819 4,197 7,907 $75,000-$99,999 572 3,472 6,640 $100,000-$149,999 537 3,729 7,771 $150,000-$199,999 107 1,281 2,927 $200,000 or greater 114 1,113 2,509 Median HH Income $59,592 $71,638 $77,525 Average HH Income $74,837 $88,718 $95,562 Source: esri
Easton Park 12 Plex Demographic Charts 38 2017 Household Income 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Population by Race 1 Mile Radius 3 Mile Radius 5 Mile Radius
Easton Park 12 Plex Demographic Charts 39 2017 Household Occupancy - 1 Mile Radius 2017 Household Income Average and Median Average Income Median Income
Easton Park 12 Plex Additional Information 08... Additional Information EASTON PARK 12 PLEX
Easton Park 12 Plex Steve Olson 801.362.3392 solson@fig.us powered by CREOP