DEL REY TERRACE 1616-1618 East Moore Street, Valdosta, GA 31601 OFFERING MEMORANDUM PRESENTED BY FRANKLIN STREET
CONFIDENTIALITY AGREEMENT EXCLUSIVELY LISTED BY: Jim Reed Director, Multifamily Investment Sales Jim.Reed@FranklinSt.com 904.899.0310 This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest into the acquisition of the Subject Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner or Franklin Street Real Estate Services, LLC. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to all interested and qualified prospective purchasers. Neither the Owner or Franklin Street Real Estate Services, LLC., nor any of their respective directors, officers, affiliates or representatives are making any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your own investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any obligations therein have been satisfied or waived. By receipt of the Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or the Franklin Street Real Estate Services, LLC. Furthermore, you agree not to use this Memorandum or any of its contents in a manner detrimental to the interest of the Owner or Franklin Street Real Estate Services, LLC. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are so advised and expected to review all such summaries and other documents of whatever nature independently and not to rely on the contents of this Memorandum in any manner. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR FRANKLIN STREET REAL ESTATE SERVICES, LLC AGENT FOR MORE DETAILS. 2
CONTENTS Investment Overview Asking Price & Salient Facts Executive Summary & Investment Highlights Property Photos Property Survey Area Overview Demographics Local Retailer Map Financial Analysis Site Plan & Rent Roll Income & Expenses 6 12 16 Rent & Sales Comparbles Rent Comparables Map Rent Comparables Rent Comp Graphs Sales Comparables Map Sales Comparables Sales Comp Graphs About Franklin Street Fast Facts Our Services Marketing Timeline Marketing Capabilities Testimonials Our Locations Investment Sales Team 20 18 3
INVESTMENT OVERVIEW
ASKING PRICE & SALIENT FACTS PRICING SUMMARY SITE DESCIRPTION CONSTRUCTION DETIAL AREA Asking Price: $750,000 Price per Unit: $28,846 Year Built: 1993 Rentable SF: 21,630 SF Framing: Exterior Wall: Wood Frame Composite Siding 1616-1618 East Moore Street Valdosta, GA 31601 Lowndes County PARCEL/FOLIO: Price per Sq Ft: $34.67 Current Occupancy: 69.23% Lot Size: 1.38 Acres Type of Ownership: Fee Simple Parking: 44 Spaces Wall Score R : Car Dependent (22) Roof Structure: Roof Cover: HVAC: Wood Truss Asphalt Shingles Central Heat & Air Conditioning 0155A-147 & 0155A-148 6 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
EXECUTIVE SUMMARY & INVESTMENT HIGHLIGHTS PROPERTY SUMMARY Franklin Street is pleased to present Del Rey Terrace Apartments, a 26-unit multi-family property located in Valdosta, Georgia. The property consists of two two-story apartment buildings, one with twenty units and the other with six units. INVESTMENT HIGHTLIGHTS Value Add Opportunity All Two Bedroom / One Bath Units Tenants Pay All Utilities Roof Replacement in 2013 New Siding, Gutters, Downspouts, Windows, Doors and Trim Below Market Rents Washer / Dryer Hookups in All Units French Doors Open to Balcony or Patio in Each Unit Modern Kitchens Ceramic Tile Throughout Del Rey Terrace is located just off North Forest Street on the north side of Valdosta. Nestled in a quiet and safe residential neighborhood, the property has all two-bedroom, one bathroom units. The twenty Units in the 1616 E. Moore Street building are all 822 square feet and the six units in the 1618 E. Moore Street building are 865 square feet each. The spacious units feature ceramic tile throughout, central heat and air and modern appliances. Appliances and interiors have been upgraded over the last several years. The property has undergone continuous maintenance and renovation by the current owner, including new composite siding, new gutters and downspouts, new trim, windows and doors, as well as the in-suite amenities. Both buildings had roof replacements in 2013. All maintenance on the units, building and grounds are kept current, so there is no deferred maintenance. This is a value add offering, with the opportunity to reduce vacancy to the market level of ten percent. Units are currently $30 to $60 per month below market rates, affording the investor immediate upside. A local presence and effective advertising will boost the occupancy to market levels and with rent at market equivalent, the investor can double the current NOI. INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 7
PROPERTY PHOTOS 8 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
PROPERTY SURVEY INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 9
AREA OVERVIEW
DEMOGRAPHICS 1 MILE 3 MILE 5 MILE Population Census Population (2000) 9,848 42,105 55,956 Census Population (2010) 10,811 48,512 65,546 Estimated Population (2016) 11,032 50,086 68,033 Projected Population (2021) 10,700 48,488 65,789 5 MILE 3 MILE Households Census Households (2000) 3,568 16,178 21,205 Census Households (2010) 3,956 18,329 24,758 Estimated Households (2016) 4,154 19,550 26,634 Projected Households (2021) 4,453 20,872 28,420 1 MILE Income Estimated Per Capita Income $13,664 $16,618 $19,463 Estimated Median Household Income $28,791 $30,713 $36,166 Estimate Average Household Income $36,087 $41,848 $49,040 12 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
LOCAL RETAILER MAP INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 13
FINANCIAL ANALYSIS
UNIT MIX # OF UNITS UNIT TYPE SQUARE FEET CURRENT RENT MONTHLY INCOME $/SF PRO FORMA RENT PF RENT/SF PF RENT INCREASE 20 2BDR 1BATH (1616 BLDG) 822 $465 $9,300 $0.57 $518 $0.63 11.40% 6 2BDR 1BATH (1618 BLDG) 865 $525 $3,150 $0.61 $545 $0.63 3.81% TOTALS/AVERAGES: 21,630 $12,450 $363,570 $524.23 $0.63 9.48% 2 BR 1 BATH (1618) CURRENT MONTHLY GROSS POTENTIAL RENT $12,450 PRO FORMA MONTHLY GROSS POTENTIAL INCOME $13,630 2 BR 1 BATH (1616) CURRENT ANNUAL GROSS POTENTIAL RENT $149.400 PRO FORMA ANNUAL GROSS POTENTIAL RENT $163,560 16 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
INCOME Gross Potential Rent Application Fees Cleaning/Damage Income Late Fees Total Other Income Gross Potential Income Economic Loss Market Vacancy (-) Loss to Lease (-) Concessions (-) Bad Debt (-) Total Economic Loss Effective Gross Income (EGI) EXPENSES Taxes Insurance House Utilities Maintenance & Repairs Landscape Maintenance Management Fees General & Administrative Marketing & Leasing Professional Fees Total Expenses NET OPERATING INCOME (NOI) DEL REY TERRACE APARTMENTS I VALDOSTA, GEORGIA INCOME & EXPENSES CURRENT PROFORMA % PER UNIT TOTAL $6,290.77 $163,560 0.15% $10 $250 0.31% $19 $500 0.06% $4 $100 0.52% $33 $850 $6,323 $164,410 10.00% $629 $16,356 2.00% $126 $3,271 2.00% $126 $3,271 1.00% $63 $1,636-15.00% $(944) $(24,534) $5,380 $139,876 7.12% $383 $9,956 5.47% $294 $7,650 1.07% $58 $1,500 9.29% $500 $13,000 1.43% $77 $2,000 8.00% $430 $11,190 0.36% $19 $500 0.71% $38 $1,000 0.36% $19 $500 35.53% $1,911 $49,696 $3,468 $90,180 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 17
RENT & SALES COMPARABLES
RENT COMPARABLES MAP 6 3 4 5 2 DEL REY TERRACE APTS 1616-1618 MOORE ST VALDOSTA, GA 31601 1 Total Units 20 Occupancy 69% Year Built 1972 Amenities Dishwasher; Washer/Dryer hookups Utililties Tenants pay all utilities Unit Mix: 2 BR 1BATH 20 822 $465 $0.57 2 BR 1BATH 8 865 $525 $0.61 TOTAL/AVG 26 832 $479 $0.58 20 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
RENT COMPARABLES TREELOFT APARTMENTS SETH PLACE CUMBERLAND COURT 1 2 3 Address 1615 WILLIAMS ST 2415 SETH PLACE 8 MEADOW RUN CIR VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602 Total Units 20 56 58 Occupancy 82% 95% 70% Year Built 1972 2007 1985 Amenities Dishwasher; Washer/Dryer hookups (3 BR only) Washer/Dryer Hookups; Townhouse Washer/Dryer Hookups Utililties Water & Sewer included; Tenants pay electric Tenants pay all utilities Tenants pay all utilities Unit Mix 1 BR 1BATH 12 600 $437 $0.73 3 BR 2BATH 8 1,250 $709 $0.57 TOTAL/AVG 20 860 $546 $0.63 2 BR 2.5BATH 56 1,205 $595 $0.49 TOTAL/AVG 56 1,205 $595 $0.49 1 BR 1BATH 2 850 $458 $0.54 2 BR 1BATH 56 928 $575 $0.62 TOTAL/AVG 58 925 $571 $0.62 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 21
RENT COMPARABLES CONT. NORTHSIDE APARTMENTS LEMAN S APARTMENTS RAMBLEWOOD 4 5 6 Address 411 NORTHSIDE DR 415 NORTHSIDE DR 3131 N OAK ST VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602 Total Units 64 56 80 Occupancy 95% 90% 90% Year Built 1970 1972 1984 Amenities None Dishwasher Washer/Dryer hookups Utililties Water & Sewer included in rent Water & Sewer, trash & pest control included in rent Unit Mix 1 BR 1BATH 12 600 $437 $0.73 3 BR 2BATH 8 1,250 $709 $0.57 TOTAL/AVG 20 860 $546 $0.63 1 BR 1BATH 12 600 $437 $0.73 3 BR 2BATH 8 1,250 $709 $0.57 TOTAL/AVG 20 860 $546 $0.63 1 BR 1BATH 12 600 $437 $0.73 3 BR 2BATH 8 1,250 $709 $0.57 TOTAL/AVG 20 860 $546 $0.63 22 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
RENT COMP GRAPHS Occupancy Rates Average Unit Size 100.00% 84.46% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1400 1200 1000 800 600 400 200 0 904 Average Asking Rent Rent per Square Foot $600 $500 $400 $300 $200 $100 $0 $555 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.63 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 23
SALES COMPARABLES MAP 1 3 2 24 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
SALES COMPARABLES DEL REY TERR APTS CUMBERLAND COURT COURTYARD ON PARK WOODLANDS 1 2 3 Address 1616-1618 E MOORE ST 8 MEADOW CT 1425 PARK AVE 200 W CRANFORD AVE VALDOSTA, GA 31601 VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602 Sale Date: On Market May-17 April-16 February-16 Total Units: 26 58 56 29 Sale Price: $750,000 $2,550,000 $1,500,000 $775,000 Price/Unit: $28,846 $43,966 $26,786 $26,724 Price/Sq Ft: $34.67 $49.07 $26.79 $40.79 Year Built: 1993 1985 1968 1977 Occupancy: 90% 93% 88% CAP Rate: 11.5% on Current Income 2.62% Reported Unit Mix: 20 2Bdr 1Bath (1616 Bldg) 6 2Bdr 1Bath (1618 Bldg) 2 1Bdr 1Bath 56 3Bdr 1Bath 16 1Bdr 1Bath 32 2Bdr 2Bath 8 3Bdr 2Bath 29 1Bdr 1Bath INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 25
SALES COMP GRAPHS Price Per Square Foot Price Per Unit $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 26 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
ABOUT FRANKLIN STREET
FAST FACTS MARKET EXPERTISE Multifamily Retail Industrial Office TRANSACTION VOLUME $507,084,512 $10+ BILLION IN VALUATIONS 6,500 ASSIGNMENTS COMPLETED PROPERTY MANAGEMENT 7.8 MILLION SQUARE FEET ALL ASSET TYPES THROUGHOUT THE U.S. 30 MILLION SF OF COMMERCIAL PROPERTY MORE THAN $500 MILLION IN LOAN ORIGINATIONS REPRESENTATION OF 70 RETAILERS IN 9 STATES LOCAL, REGIONAL, AND NATIONAL CLIENTS LANDLORD REPRESENTATION 13 MILLION SQUARE FEET LOCAL, REGIONAL, AND NATIONAL CLIENTS Clients Represented: Tenant, Landlord, Management, and Valuation Franklin Street Offices 2016 TENANT TRANSACTIONS TOTALING $42+ MILLION OFFICE AND INDUSTRIAL LOCAL, REGIONAL, AND NATIONAL CLIENTS Closed Transactions: Investment Sales, Insurance INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 29
OUR SERVICES INVESTMENT SALES MANAGEMENT SERVICES INSURANCE SERVICES ACHIEVING RESULTS THROUGH COLLABORATION Through expert knowledge of specific real estate and capital markets, our investment sales division is able to generate effective results impacting income-producing assets, all designed to increase value and deliver maximum results for the owner. We maximize asset value through comprehensive management and accounting operations for office, industrial, retail and multifamily product types. By integrating this platform at the local market level, we also deliver seamless one-stop services for mixed-use projects. Our insurance division supports clients with an in-depth knowledge of the property and casualty challenges and opportunities faced by property owners today. LANDLORD REPRESENTATION VALUATION ADVISORY TENANT REPRESENTATION CAPITAL ADVISORY We increase value for investor clients by first creating a strategic leasing plan that matches the investment strategy for the asset, then proactively implementing it by engaging the market and actively sourcing tenants. We provide valuation, consultation, litigation and expert witness services for all property types, specializing in commercial real estate. Our clients value our extensive market knowledge, long-term relationships with key market participants and superior analytics. Our group partners closely with clients to create, implement, and deliver a strategic plan for space development and optimal market positioning. Our capital division specializes in debt and equity placement through established partnerships with Banks, CMBS, Life Companies, Agency, Bridge, Mezzanine, and JV Equity Investors. 30 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET
OUR LOCATIONS ATLANTA 3384 Peachtree Road NE Suite 650 Atlanta, GA 30326 Phone: 404.832.1250 Fax: 404.842.1755 TAMPA 600 N Westshore Blvd. Suite 600 Tampa, FL 33609 Phone: 813.839.7300 Fax: 813.839.7330 JACKSONVILLE 7751 Belfort Parkway Suite 110 Jacksonville, FL 32256 Phone: 904.271.4120 Fax: 904.899.5890 info@franklinst.com ORLANDO 390 N Orange Avenue Suite 2300 Orlando FL, 32801 Phone: 407.458.5400 Fax: 407.264.8160 FT. LAUDERDALE 900 S Pine Island Road Suite 310 Plantation, FL 33324 Phone: 954.640.1100 Fax: 954.640.1101 MIAMI 6205 Blue Lagoon Drive Suite 280 Miami, FL 33126 Phone: 786.292.3188 Fax: 786.269.2318 INVESTMENT OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ABOUT FRANKLIN STREET 31
EXCLUSIVELY LISTED BY Jim Reed Director 904.899.0310 Jim.Reed@FranklinSt.com FRANKLIN STREET RETAIL INVESTMENT SALES TEAM Hernando Perez Director, Investment Sales 786.245.0499 Hernando.Perez@FranklinSt.com Dan Dratch Associate, Investment Sales 954.312.1677 Dan.Dratch@FranklinSt.com Kevin Kelleher Senior Director 813.658.3358 Kevin.Kelleher@FranklinSt.com Ricky Jones Director 404.991.3446 Ricky.Jones@FranklinSt.com Greg Matus Sr. Vice President, Investment Sales 954.671.1821 Greg.Matus@FranklinSt.com Kurt Keaton President, Real Estate Services 813.839.7300 Kurt.Keaton@FranklinSt.com Matthew Kesterson Senior Director 904.271.4120 Ext: 805 Matthew.Kesterson.@FranklinSt.com Zachary Ames Director 813.288.6676 Zachary.Ames@FranklinSt.com Jake Reid Senior Director 404.832.1255 Jake.Reid@FranklinSt.com Robert Goldfinger Managing Director 813.658.3353 Robert.Goldfinger@FranklinSt.com Darron Kattan *FS Broker of Record in GA Managing Director 813.658.3355 Darron.Kattan@FranklinSt.com FranklinSt.com https://franklinst.com/our-services/business-lines/investment-sales/our-team