205 Lynn Ln Starkville, MS 39759 Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Exclusively Listed By Preston Cooper Senior Associate Associate Member - National Multi Housing Group Birmingham Office Tel: (205) 510-9124 Fax: (205) 510-9110 preston.cooper@marcusmillichap.com License: AL 000104317 Stephen Perlis Senior Associate Associate Member - National Multi Housing Group Birmingham Office Tel: (205) 510-9122 Fax: (205) 510-9110 stephen.perlis@marcusmillichap.com License: AL 000103714-0 Anne Williams MS BOR Tel: (901) 620-3622 Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap 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 or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. THE GROVE Starkville, MS ACT ID Y0700002
TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo Floor Plans MARKET COMPARABLES 02 Rent Comparables FINANCIAL ANALYSIS 03 Rent Roll Summary Operating Statement Growth Rate Projections Cash Flow MARKET OVERVIEW 04 Demographic Analysis
INVESTMENT OVERVIEW 4
EXECUTIVE SUMMARY OFFERING SUMMARY MAJOR EMPLOYERS NUMBER OF UNITS UNIT TYPE UNIT MIX 54 One Bedroom 642 86 Two Bedroom 810 APPROX. SQUARE FEET EMPLOYER # OF EMPLOYEES Mississippi State University 10,014 Telecommunications Department 4,000 Sitel Worldwide Corporation 600 Mao Foods LLC 500 Commercial Seating Division 328 Engineering Research Center 250 Golden Triangle Plg & Dev Dst 200 Weavexx LLC 200 Crop Science Research Lab 185 Gulf States Manufacturers LLC 185 Reliable Security Services 185 Gulf States Manufacturers 180 24 Three Bedroom 983 164 Total 127,920 DEMOGRAPHICS INVESTMENT HIGHLIGHTS Located in Strong Rental Market Southeastern Conference School Located Within the Golden Triangle Value-Add Via Light Upgrades and 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 6,020 32,416 39,501 2010 Census Pop 4,602 29,818 36,954 2016 Estimate HH 2,856 12,380 15,166 2010 Census HH 2,186 11,631 14,413 Median HH Income $29,527 $35,021 $35,693 Per Capita Income $19,962 $21,698 $22,200 Average HH Income $42,077 $54,019 $55,402 Improved Management # 5
PROPERTY OVERVIEW OFFERING SUMMARY Marcus & Millichap is pleased to present The Grove, a 164-unit apartment complex in Starkville, Mississippi. The Grove is located approximately 1.5-.miles from the Mississippi State University campus. The offering features a diverse unit mix that includes three distinct one-bedroom floorplans, two sizes of two-bedroom units, and two types of three-bedroom units, including three-bedroom, two-bath townhouses that were constructed in 2008. The property features an on-site office, laundry, fitness center, entertainment room and is located along the SMART transit route, which provides free transportation to the Mississippi State University campus. The property was built in stages, with initial construction beginning in 1975 and several more buildings added in the mid-1990's. The townhome buildings were constructed in 2008. Also occurring in 2008, the property underwent significant renovation, at a cost of approximately $3,000,000. The property features numerous amenities that make it competitive and in some cases superior in appeal to other properties of similar vintage and location. The property features an on-site office, 24-hour maintenance, laundry facility, fitness center, recreation room and beach volleyball court. The property is also one of a relatively few properties in the market that is pet-friendly, and features a bark-park for dogs. The Mississippi State Veterinary Medicine comprises the southernmost area of the campus, and is just east of The Grove. The low density of units on the site provides significant green space that is used for tenants, and provides the future owner with space to add additional property amenities, such as gazebos and grilling areas. Common Area Amenities On-Site Office Laundry Facility Fitness Center Recreation Room Dog Park Volleyball Court Unit Amenities Washer/Dryer Connections in Select Units Dishwashers Central HVAC # 6
LOCATION OVERVIEW OFFERING SUMMARY The Grove is located in Starkville, in east-central Mississippi. Starkville is home to Mississippi State University, a four-year college offering more than 160 academic degrees, including master's degrees through the Bagley College of Engineering and in the fields of business and education. Mississippi State also has a highly ranked program in the College of Veterinary Medicine. Mississippi State is a member of the Southeastern Conference (SEC) and fields teams in 14 sports. Mississippi State boasts a current enrollment of 21,622. The 2015 and 2016 classes were the largest in school history, with the 2015 freshmen class exceeding the 2014 freshman enrollment by 17%. The 2016 first-time freshman was up 4% from the record setting class from the previous year. Total enrollment at Mississippi State increased by 3.5% in both 2015 and 2016. The chart below depicts overall enrollment for the past ten years, and indicates overall enrollment has increased by 21% over the past ten years. # 7
LOCATION OVERVIEW OFFERING SUMMARY Starkville is one of three cities that constitute 'The Golden Triangle'. The Golden Triangle refers to a geographical area comprised of the cities of Starkville, Columbus and West Point and the area between these cities. The Golden Triangle name was coined in an effort to encourage greater economic among the counties and cities included within the triangle. The area is promoted by its own economic development group and has had major successes. Since its inception in 2003, The Golden Triangle Development LINK has ushered the region into a golden era of economic development. As the organization charged with representing the economic development interests for the entire region, this outstanding team with a record of $5.9 billion dollars in investments and 5,900 jobs created. Existing industries in the area span manufacturing sectors of metal fabrication and steel, automotive, aerospace, defense, timber and wood products. Notable manufactures include Airbus (manufacturing helicopters), Yokohama (tire manufacture) and Paccar (large truck engine manufacture). Columbus Air Force Base is also within The Golden Triangle. Columbus AFB currently serves more than 11,500 personnel, including 1,334 active duty military members, an area populace of more than 10,123 personnel from the Reserves, other branches of service, Geographically Separated Units, family members, DoD civilians, contractors, and retirees. The Golden Triangle was profiled by 60 Minutes in December 2016, the profile can be viewed at http://www.cbsnews.com/videos/the-golden-triangle/ # 8
PROPERTY SUMMARY OFFERING SUMMARY THE OFFERING Property The Grove Price To Be Determined By Market Property Address 205 Lynn Ln,Starkville,MS Assessors Parcel Number 102J-00-018.00 Zoning R-5 Multi-Family, High Density SITE DESCRIPTION Number of Units 164 Number of Buildings 18 Number of Stories Two Year Built/Renovated Built in Stages-1974, 1996 & 2008 Rentable Square Feet 127,920 Lot Size 10.35 acre(s) Type of Ownership Fee Simple Density 15.85-Units/Acre Parking On-Site Landscaping Mature Trees/Shrubs/Grass Topography Gently Rolling UTILITIES Water Landlord Phone Tenant Electric Tenant Gas N/A-All Electric CONSTRUCTION Foundation Slab Framing Wood Frame Exterior Brick/Siding Parking Surface Asphalt Roof Pitched Asphalt Shingle MECHANICAL HVAC Central 9
REGIONAL MAP 10
LOCAL MAP 11
AERIAL PHOTO 12
PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 12 13
FLOOR PLANS One Bedroom Student 571 SF One Bedroom Standard 654 SF 14
FLOOR PLANS One Bedroom Deluxe 704 SF Two Bedroom Flat 789 SF 15
FLOOR PLANS Two Bedroom Deluxe 870 SF Three Bedroom Flat 938 SF 16
FLOOR PLANS Three Bedroom Townhouse 1,028 SF 17
MARKET COMPARABLES 18
8 RENT COMPARABLES MAP THE GROVE (SUBJECT) 1 2 3 4 5 6 Greentree Brownsville Station Spruill Townhomes Collegiate Heights Spruill Townhouses Cedar Cove 7 8 9 10 11 12 13 14 15 3 4 16 17 18 20 19
PROPERTY THE GROVENAME AVERAGE OCCUPANCY RENT COMPARABLES 100 Avg. 97.83% 90 80 70 60 50 40 30 20 10 0 The Grove Greentree Brownsville Station Spruill Townhomes Collegiate Heights Spruill Townhouses Cedar Cove 20
PROPERTY THE GROVENAME AVERAGE RENT RENT COMPARABLES 3 Bedroom 1 Bedroom $800 $720 $640 Avg. $694 $700 $630 $560 Avg. $551 $560 $490 $480 $420 $400 $350 $320 $280 $240 $210 $160 $140 $80 $70 $0 The Grove Greentree Brownsville Station Spruill Townhomes Collegiate Heights Spruill Townhouses Cedar Cove $0 The Grove Greentree Brownsville Station Spruill Townhomes Collegiate Heights Spruill Townhouses Cedar Cove 2 Bedroom $800 $720 $640 Avg. $602 $560 $480 $400 $320 $240 $160 $80 $0 The Grove Greentree Brownsville Station Spruill Townhomes Collegiate Heights Spruill Townhouses Cedar Cove 21
PROPERTY THE GROVENAME RENT MARKETING COMPARABLES TEAM THE GROVE 205 LYNN LN, STARKVILLE, MS, 39759 GREENTREE 110 LYNN LN, STARKVILLE, MS, 39759 1 BROWNSVILLE STATION 110 W WOOD ST, STARKVILLE, MS, 39759 2 THE GROVE THE GROVE THE GROVE Unit Type Units SF Rent Rent/SF Rent/Bed One Bdr 54 642 $503 $0.78 Two Bdr 86 810 $572 $0.71 Three Bdr 24 983 $722 $0.73 Total/Avg. 164 780 $571 $0.73 Unit Type Units SF Rent Rent/SF Rent/Bed 1 Bdr 1 Bath 24 595 $535- $560 $0.92 $548 1 Bdr 1.5 Bath 18 900 $475- $525 $0.56 $500 2 Bdr 1.5 Bath 90 1,200 $505- $575 $0.45 $270 3 Bdr 1.5 Bath 36 1,400 $625- $650 $0.46 $213 Total/Avg. 168 1,124 $558 $0.50 $284 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath 36 555 $585-$595 $1.06 2 Bdr 2.5 Bath 36 1,110 $750-$820 $0.71 1 Bdr 1.5 Bath 12 704 $675 $0.96 Total/Avg. 84 814 $686 $0.84 Occupancy 85% I YEAR BUILT: 1976 NOTES Constructed in stages. Three types of 1BR units, two types of 2BR units and two sizes 205 of 3BR LYNN units. LN, Select STARKVILLE, units feature W/D MS, connections. 39759 W/S included with base rental rate. OCCUPANCY: 99% YEAR BUILT: 1968 NOTES Variations of rental rates within a unit type are based on degree of renovation/update. 205 LYNN The LN, 1BR/1BA STARKVILLE, units were constructed MS, 39759 in 2013. All units with 1.5 baths are townhouse style and contain washer/dryer connections. OCCUPANCY: 100% YEAR BUILT: 2000 NOTES Tenants pay all utilities. Washer/dryer furnished in each unit. The twobedroom and 205 12 LYNN one-bedroom LN, STARKVILLE, units are townhouse MS, style. 39759 22
PROPERTY THE GROVENAME RENT MARKETING COMPARABLES TEAM SPRUILL TOWNHOMES 1016 LOUISVILLE ST, STARKVILLE, MS, 39759 3 COLLEGIATE HEIGHTS 201 LYNN LN, STARKVILLE, MS, 39759 4 SPRUILL TOWNHOUSES 206 YELLOW JACKET DRIVE, STARKVILLE, MS, 39759 5 SPRUILL TOWNHOMES SPRUILL TOWNHOMES SPRUILL TOWNHOMES Unit Type Units SF Rent Rent/SF 2 Bdr 50 1,050 $550 $0.52 2 Bdr 1.5 Bath 125 1,100 $575 $0.52 3 Bdr 2.5 Bath 45 1,300 $725 $0.56 Total/Avg. 220 1,130 $600 $0.53 Unit Type Units SF Rent Rent/SF 2 Bdr 34 875 $400-$525 $0.53 2 Bdr 1.5 Bath 50 875 $525-$550 $0.61 2 Bdr 2 Bath 33 1,100 $540-$580 $0.51 Total/Avg. 117 938 $522 $0.56 Unit Type Units SF Rent Rent/SF 2 Bdr 1.5 Bath 38 1,073 $625 $0.58 Total/Avg. 38 1,073 $625 $0.58 OCCUPANCY: 99% YEAR BUILT: 1984 NOTES Tenants pay all utilities. No common amenities. Units have W/D connections 1016 LOUISVILLE ST, STARKVILLE, MS, 39759 OCCUPANCY: 98% YEAR BUILT: 1965 NOTES Property was constructed in stages and is an assemblage of formerly independently 1016 LOUISVILLE owned properties. ST, Year STARKVILLE, built ranges from MS, 1965, 39759 1986 to 1990. Low end of the rental range in the 2BR/1BA units is for a unit that is basically original to 1965 construction. Upper-end of the range is for renovated units. No utilities included in base rent. The 1.5 bath units are TH style, all others are flats. OCCUPANCY: 100% YEAR BUILT: 1991 NOTES Separately metered utilities. Washer/dryer provided. 1016 LOUISVILLE ST, STARKVILLE, MS, 39759 23
PROPERTY THE GROVENAME RENT COMPARABLES MARKETING TEAM CEDAR COVE 500 LOUISVILLE ST, STARKVILLE, MS, 39759 6 CEDAR COVE Unit Type Units SF Rent CEDAR COVE 500 LOUISVILLE ST, STARKVILLE, MS, 39759 500 LOUISVILLE ST, STARKVILLE, MS, 39759 Rent/SF Rent/Bed 1 Bdr 1 Bath 70 676 $515 $0.76 $515 2 Bdr 1 Bath 18 954 $565 $0.59 $283 2 Bdr 1.5 Bath 79 948 $575 $0.61 $288 3 Bdr 1.5 Bath 15 1,324 $725 $0.55 $242 3 Bdr 2 Bath 4 1,485 $700 $0.47 $233 186 888 $566 $0.64 $328 Total/Avg. CEDAR COVE OCCUPANCY: 92% YEAR BUILT: 1974 NOTES Water/sewer included in base rental rate as is basic cable. W/D connections in select units. Property constructed in stages, 500 LOUISVILLE ST, STARKVILLE, MS, mid-1970's 39759 to 1990's 24
FINANCIAL ANALYSIS 25
RENT ROLL SUMMARY FINANCIAL ANALYSIS 26
OPERATING STATEMENT FINANCIAL ANALYSIS 27
GROWTH RATE PROJECTIONS FINANCIAL ANALYSIS 28
CASH FLOW FINANCIAL ANALYSIS 29
MARKET OVERVIEW 30
PROPERTY THE GROVENAME Created on February 2018 POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 6,273 33,728 42,094 2017 Estimate Total Population 6,187 31,992 39,627 2010 Census Total Population 4,602 29,818 36,954 2000 Census Total Population 4,621 27,155 32,852 Daytime Population 2017 Estimate 8,077 50,241 55,971 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 2,991 13,140 16,474 2017 Estimate Total Households 2,935 12,296 15,269 Average (Mean) Household Size 2.10 2.21 2.27 2010 Census Total Households 2,186 11,631 14,413 2000 Census Total Households 2,135 10,025 12,073 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $250,000 or More 0.55% 1.52% 1.65% $200,000 - $249,999 0.62% 0.87% 0.95% $150,000 - $199,999 1.02% 3.06% 3.32% $125,000 - $149,999 1.01% 3.10% 3.24% $100,000 - $124,999 4.45% 6.65% 6.82% $75,000 - $99,999 6.23% 8.52% 8.74% $50,000 - $74,999 18.01% 14.94% 14.87% $35,000 - $49,999 11.64% 11.65% 11.71% $25,000 - $34,999 9.63% 8.31% 8.49% $15,000 - $24,999 11.17% 10.36% 10.60% Under $15,000 35.65% 31.02% 29.63% Average Household Income $42,872 $55,315 $57,372 Median Household Income $29,530 $35,304 $36,269 Per Capita Income $20,341 $22,319 $23,013 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population by Age 2017 Estimate Total Population 6,187 31,992 39,627 Under 15 19.72% 13.96% 14.80% 15 to 17 Years 2.21% 1.98% 2.19% 18 to 19 Years 2.41% 9.87% 8.73% 20 to 24 Years 23.39% 28.47% 26.78% 25 to 29 Years 12.63% 8.60% 8.32% Age 30+ 39.63% 37.11% 39.17% Population 25+ by Education Level 2017 Estimate Population Age 25+ 3,234 14,630 18,826 Elementary (0-8) 4.78% 2.84% 2.82% Some High School (9-11) 3.67% 5.99% 7.33% High School Graduate (12) 10.89% 15.72% 17.16% Some College (13-15) 18.25% 17.12% 17.12% Associate Degree Only 10.14% 6.26% 5.94% Bachelors Degree Only 33.43% 27.33% 25.50% Graduate Degree 18.38% 24.13% 23.52% Source: 2017 Experian 31
PROPERTY THE GROVENAME MARKETING DEMOGRAPHICS TEAM Population In 2016, the population in your selected geography is 6,020. The population has changed by 30.27% since 2000. It is estimated that the population in your area will be 6,097.00 five years from now, which represents a change of 1.28% from the current year. The current population is 46.57% male and 53.43% female. The median age of the population in your area is 25.79, compare this to the US average which is 37.68. The population density in your area is 1,916.13 people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 47.63% White, 46.47% Black, 0.12% Native American and 3.29% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 2.57% of the current year population in your selected area. Compare this to the US average of 17.65%. Households There are currently 2,856 households in your selected geography. The number of households has changed by 33.77% since 2000. It is estimated that the number of households in your area will be 2,906 five years from now, which represents a change of 1.75% from the current year. The average household size in your area is 2.10 persons. Housing The median housing value in your area was $118,450 in 2016, compare this to the US average of $187,181. In 2000, there were 761 owner occupied housing units in your area and there were 1,374 renter occupied housing units in your area. The median rent at the time was $404. Income In 2016, the median household income for your selected geography is $29,527, compare this to the US average which is currently $54,505. The median household income for your area has changed by 26.38% since 2000. It is estimated that the median household income in your area will be $36,265 five years from now, which represents a change of 22.82% from the current year. Employment In 2016, there are 2,969 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 75.43% of employees are employed in white-collar occupations in this geography, and 26.28% are employed in blue-collar occupations. In 2016, unemployment in this area is 3.02%. In 2000, the average time traveled to work was 16.00 minutes. The current year per capita income in your area is $19,962, compare this to the US average, which is $29,962. The current year average household income in your area is $42,077, compare this to the US average which is $78,425. Source: 2016 Experian 32
E X C L U S I V E L Y L I S T E D B Y Preston Cooper Senior Associate Associate Member - National Multi Housing Group Birmingham Office Tel: (205) 510-9124 Fax: (205) 510-9110 preston.cooper@marcusmillichap.com License: AL 000104317 Stephen Perlis Senior Associate Associate Member - National Multi Housing Group Birmingham Office Tel: (205) 510-9122 Fax: (205) 510-9110 stephen.perlis@marcusmillichap.com License: AL 000103714-0 Anne Williams MS BOR Tel: (901) 620-3622