554 frederick st hagerstown MD 21740 OFFERING MEMORANDUM Frederick St. Apartments
Frederick St. Apartments CONTENTS 01 Executive Summary Executive Summary 5 Unit Mix Summary 6 Location Summary 7 02 Property Description Property Features 9 Aerial Map 10 Parcel Map 11 Property Images 12 03 Rent Roll Rent Roll Details 20 04 Financial Analysis Income & Expense Analysis 22 240- Lic: 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.
Frederick St. Apartments Executive Summary FREDERICK ST. APARTMENTS 01... Executive Summary Offering Summary Unit Mix Summary Location Summary
Frederick St. Apartments Executive Summary 05 OFFERING SUMMARY ADDRESS COUNTY BUILDING SF 3,530 LAND SF 8,000 NUMBER OF UNITS 5 YEAR BUILT 1920 YEAR RENOVATED 2017 OWNERSHIP TYPE 554 frederick st hagerstown MD 21740 Washington Fee Simple FINANCIAL SUMMARY OFFERING PRICE $240,000 PRICE PSF $67.99 OCCUPANCY 100.00 % NOI (CURRENT) $27,476 NOI (Pro Forma) $29,876 CAP RATE (CURRENT) 11.44 % CAP RATE (Pro Forma) 12.44 % PROPOSED FINANCING LOAN TYPE DOWN PAYMENT $48,000 LOAN AMOUNT $192,000 INTEREST RATE 5.00 % ANNUAL DEBT SERVICE $15,207 LOAN TO VALUE 80 % NOTES 5 year baloon Turn-Key Cash-Flowing 5 Unit Apartment Building with 7 Car Garages rented! Tenants Pay Electricity & Heating! All Lead certificates are current. This is Perfect for New Investors or Seasoned Investors looking to buy & Hold. * 7 car garage for additional income * Large off street parking * business centered
Frederick St. Apartments Unit Mix Summary 06 Actual Market Unit Mix # Units Square Feet Current Rent Rent PSF Monthly Market Rent Market Rent Market Income Income PSF 1 bd / 1 ba 3 650 $500 $0.77 $1,500 $550 $0.85 $1,650 1 bd 1 700 $600 $0.86 $600 $600 $0.86 $600 2 bd / 1 ba 1 700 $600 $0.86 $600 $650 $0.93 $650 Totals/Averages 5 670 $540 $0.81 $2,700 $580 $0.87 $2,900
Frederick St. Apartments Location Summary 07 PROPERTY LOCATION: Located in Hagerstown MD, 10-minute walk from Hagerstown City Park.Located 10-minutes away from Downtown Hagerstown where a lot of business and government offices are located. HAGERSTOWN LOCATION: Hagerstown anchors the Hagerstown-Martinsburg, MD-WV Metropolitan Statistical Area, which lies just northwest of the Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined Statistical Area in the heart of the Great Appalachian Valley. The population of the metropolitan area in 2010 was 269,140. Greater Hagerstown is the fastest-growing metropolitan area in the state of Maryland and among the fastest growing in the United States. Regional Map HAGERSTOWN APPRECIATION by neighboorhoodscout.com "Real estate appreciation rates in Hagerstown's have tracked to near the national average over the last then years, with the annual appreciation rate averaging 0.67% during the period. Appreciation rates are so strong in Hagerstown that despite a nationwide downturn in the housing market, Hagerstown real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Hagerstown appreciation rates continue to be some of the highest in America, at 7.95%, which is higher than appreciation rates in 78.82% of the cities and towns in the nation. Based on the last twelve months, shortterm real estate investors have found good fortune in Hagerstown. Hagerstown appreciation rates in the latest quarter were at 2.66%, which equates to an annual appreciation rate of 11.09%. Importantly, this makes Hagerstown one of the highest appreciating communities in the nation for the latest quarter, and may signal the city's nearfuture real estate investment strength." Locator Map - http://www.neighborhoodscout.com/md/hagerstown /rates/#description
Frederick St. Apartments Property Description FREDERICK ST. APARTMENTS 02... Property Description Property Features Aerial Map Parcel Map Additional Maps Property Images
Frederick St. Apartments Property Features 09 Site Description NUMBER OF UNITS 5 BUILDING SF 3,530 LAND SF 8,000 LAND ACRES 0.18 YEAR BUILT 1920 YEAR RENOVATED 2017 ZONING TYPE RMED BUILDING CLASS C LOCATION CLASS C NUMBER OF BUILDINGS 1 NUMBER OF PARKING SPACES 8
Frederick St. Apartments Aerial Map 10
Frederick St. Apartments Parcel Map 11
Frederick St. Apartments Property Images 12
Frederick St. Apartments Property Images 13
Frederick St. Apartments Property Images 14
Frederick St. Apartments Property Images 15
Frederick St. Apartments Property Images 16
Frederick St. Apartments Property Images 17
Frederick St. Apartments Property Images 18
Frederick St. Apartments Rent Roll FREDERICK ST. APARTMENTS 03... Rent Roll Rent Roll Details
Frederick St. Apartments Rent Roll Details 20 Unit Square Feet Unit Mix Monthly Rent PSF Move-in Date Notes 1 700 2 bd / 1 ba $600 $0.86 2 700 1 bd $600 $0.86 3 600 1 bd / 1 ba $500 $0.83 4 700 1 bd / 1 ba $525 $0.75 5 650 1 bd / 1 ba $475 $0.73
Frederick St. Apartments Financial Analysis FREDERICK ST. APARTMENTS 04... Financial Analysis Income & Expense
Frederick St. Apartments Income & Expense Analysis 22 INCOME CURRENT PRO FORMA Gross Potential Rent $32,400 $39,540 Garage Income $4,740 Gross Potential Income $37,140 $39,540 Effective Gross Income $37,140 $39,540 Less: Expenses $9,664 $9,664 Net Operating Income $27,476 $29,876 Annual Debt Service $15,207 $15,207 Debt Coverage Ratio 1.81 1.96 Cash Flow After Debt Service $12,269 $14,669 REVENUE ALLOCATION EXPENSES Per Unit CURRENT Per Unit PRO FORMA Real Estate Taxes $3,464 $3,464 Insurance $1,500 $1,500 Repairs & Maintenance $2,500 $2,500 Water / Sewer $2,200 $2,200 Total Operating Expense $9,664 $9,664 Expense / SF $2.73 $2.73 DISTRIBUTION OF EXPENSES