Arkansas Oklahoma Kansas The Pointe at North Penn Apartments 19501 North Penn Avenue Edmond, Oklahoma 73012 Offering Highlights Mike Buhl CRRC-OKC 405.360.5966 buhl@crrc.us Darla Knight CRRC-Tulsa 918.557.5966 darla@crrc.us Price Reduced $800,000 134 Units with 24 Garages 2015 Construction Washer / Dryer Connections Black and Stainless Appliances Edmond Public Schools Buyer can secure new financing Average Unit Size of 959 SF Edmond Named the No. 1 Perfect Suburb by CNBC.com All two and three bedroom apartments www.crrc.us Providing professional apartment brokerage and marketing services for over 31 years
The Pointe at North Penn Apartments Table of Contents Section 1 Disclaimer Photographs Neighborhood Map Submarket Map Aerial Maps Property Description Unit Mix Interior Photographs Floor Plans Pages 4 5-8 9 10 11-12 13-16 17 18-19 20-21 Section 2 Purchase Price and Terms Financing 23 24 Section 3 Operating Data Highlights Income & Expense Spreadsheet 26 26-A Section 4 Rent Comps Sale Comps Section 5 Oklahoma City & Edmond at a Glance 28-37 38-41 43-44 Section 6 CRRC Contacts Oklahoma Broker Relationship Act 46 47 2
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The Pointe at North Penn Apartments This package has been prepared to provide summary information to prospective buyers and to establish an initial and preliminary level of interest in the property described herein. It is not intended to present all material information regarding the subject property, and is not a substitute for a complete and thorough due diligence investigation. Commercial Realty Resources has not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to the actual number of appliances being conveyed or any potential environmental problems that may exist and makes no warranty or representation whatsoever concerning these issues. The information contained in this package has been obtained from sources we believe to be reliable; however, Commercial Realty Resources and Seller have not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any proformas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. Commercial Realty Resources and Seller recommend that prospective buyers conduct an in-depth investigation of the physical and financial aspects of the property to determine if the property meets their needs and expectations. We also recommend that prospective buyers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. Commercial Realty Resources and Seller recommend that prospective buyers consult with qualified professionals regarding the presence of any molds, funguses, or other organisms that may adversely affect the property and the health of individuals. The material contained in this document is not to be copied and/or used for any purpose or made available without the express written consent of Commercial Realty Resources. 4
Neighborhood Map 9
Submarket Map 10
Aerial Map 11
Aerial Map Neighborhood 12
Offering Description The Pointe at North Penn is a new construction community that was completed in 2015 and enjoys a premiere location in Edmond and the Edmond School District. The property consists of various two-story apartment buildings and a clubhouse/office building. The property is located in a very desirable area of Edmond / Northwest Oklahoma City near the intersection of Pennsylvania and W. Danforth Road. There is high-end commercial and residential developments in this neighborhood. The area has a mix of new retail developments, office and medical facilities and both new and established residential developments. Because of the premiere school district, church campuses and ease of access to downtown Oklahoma City, the area has a high renter demand. Offering Highlights: Price Reduced $800,000 134 Units 2015 Construction Washer / Dryer Connections Black and Stainless Appliances Edmond Public Schools Buyer can secure new financing Average Unit Size of 959 SF Edmond Named the No. 1 Perfect Suburb by CNBC.com All two and three bedroom apartments 24 Garages Gym membership and valet trash pick-up included in rent 13
Property Description: Number of Units: Number of Buildings: The Pointe at North Penn is a two-story garden style apartment community located in Edmond / Northwest Oklahoma City. The property has an excellent location just minutes from downtown Oklahoma City, Bricktown and numerous retail, dining and shopping establishments. The Pointe at North Penn is located near the intersection of Pennsylvania and W. Danforth Road in the highly acclaimed Edmond school district. 134 apartment units 11 two-story apartment buildings with an attached office/ clubhouse facility. Year Built: Construction began in 2014 and completed in 2015 Apartment Features: Fully equipped kitchens with black stoves and stainless steel refrigerators - Washer/dryer connections in every unit - 5 floor plans to choose from - Wood flooring or plush carpeting - Ceiling fans and large walk-in closets Property Amenities: Edmond School District Business Center Swimming Pool Dog Park Area Gym membership and valet trash pick-up included in rent Construction: Mechanical System: Site/Land Area: Density: Current Occupancy: Style: Exterior: Roof: Electrical Metering: HVAC: Hot Water: Water: Two-Story Garden Style Brick with Cement Board Siding and Wood Trim Gable Roofs with Composition Shingles Individually Metered Individual central, forced HVAC units Individual Electric Hot Water Heaters Provided by Property 6.59acres (according to courthouse records) 20.33 units per acre See Rent Roll 14
Real Estate Taxes: ID R214021000 Assessed Value (2016): 1,214,639 Tax Rate per 1,000 : $120.65 Estimated Tax Amount : $146,546 Assessment Ratio: 11% of Market Value Amenities: Gourmet kitchen Double bowl stainless steel kitchen sink with high neck faucet Designer butter rum color countertops Energy star kitchen appliances Built in microwave with one touch features & Whirlpool dishwasher Double door refrigerator with ice maker & filtered water in the door Garbage disposals Full size washer dryer connections Ceilings fans Residential style front doors with frosted glass inset Crown molding accents Chestnut color 6 wood plank type flooring Plush stain resistant carpeting Digital thermostats Double pane energy efficient low E windows Fruitwood color cabinetry with brushed nickel hardware Modern open floor plans 2 faux wood blinds Spacious bathrooms with soaking tub 2 steel deadbolt in front door Large walk in closets 15
Property Amenities: Courtyard and pool views Garage parking available Sparkling salt water pool, sundeck and poolside grill Pet park Resident lounge with fireplace Business center Pet friendly Internet café Easy access to 1-35 16
Unit Mix / Market Rents No. Type Bdrm/Bth Sq.Ft. Total Sq.Ft. Avg Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr. 36 B1 2 Bed / 1 Bath 830 29,880 879.00 1.06 31,644 379,728 11 B1P 2 Bed / 1 Bath 830 9,130 879.00 1.06 9,669 116,028 1 B1PH 2 Bed / 2 Bath 830 830 929.00 1.12 929 11,148 34 B2 2 Bed / 2 Bath 988 33,592 989.00 1.00 33,626 403,512 11 B2P 2 Bed / 2 Bath 988 10,868 989.00 1.00 10,879 130,548 1 B2PH 2 Bed / 2 Bath 988 988 1014.00 1.03 1,014 12,168 2 B2V 2 Bed / 2 Bath 988 1,976 1039.00 1.05 2,078 24,936 3 B3 2 Bed / 2 Bath 1,119 3,357 1199.00 1.07 3,597 43,164 23 C1 3 Bed / 2 Bath 1,053 24,219 1169.00 1.11 26,887 322,644 6 C1P 3 Bed / 2 Bath 1,053 6,318 1189.00 1.13 7,134 85,608 1 C1PH 3 Bed / 2 Bath 1,053 1,053 1169.00 1.11 1,169 14,028 1 C1PV 3 Bed / 2 Bath 1,053 1,053 1194.00 1.13 1,194 14,328 1 C1V 3 Bed / 2 Bath 1,053 1,053 1044.00 0.99 1,044 12,528 3 C3 3 Bed / 2 Bath 1,415 4,245 1359.00 0.96 4,077 48,924 134 959 128,562 1007.02 1.05 134,941 1,619,292 24 Garages 322 7,728 95.00 0.30 2,280 27,360 Distribution Ratio Distribution Ratio 3 Bed / 2 Bath 26% 2 Bed / 2 Bath 39% 2 Bed / 1 Bath 35% 17
Apartment Interiors www.crrc.us 18
Apartment Interiors 19
Floor Plans 20
Floor Plans 21
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Purchase Price & Terms Purchase Price: Price Reduced $800,000 $15,900,000 $15,100,000 Terms of Sale: Cash Buyer to Obtain New Financing Price Per Apartment Unit: $112,687 Price Per Net Rentable Sq. Ft. $117.45 Cap Rate: (Based on Proforma) 5.94 23
EXISTING FINANCING Lender: NA Original Amount/Date: Current Balance/Date: NA NA Interest Rate: NA Interest Only Period: NA Payment: NA Amortization: NA Maturity Date: NA 24
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Operating Data Highlights Income Pro forma income is based on the November 2016 Rent Roll at 93% occupancy. RUBS and Other Income is based on 2016 actual. Expenses Real Estate taxes are based on an 85/15 ratio to the Purchase Price Management fee is based upon 3% Payroll is based on actual. Replacement Reserves are included at $200 per unit per year Total Expenses are calculated at $4,980 per unit per year Mortgage and Debt Service Buyer to Obtain New Financing 26
Annual Property Operating Data Project: The Pointe at North Penn Price: $ 15,100,000 Run Date: 18-Nov-16 Location: 19501 N. Penn, Edmond, OK Per Unit: $ 112,687 Cap Rate On Proforma: 5.94% Number of Units: 134 Per Foot: $ 117.45 Cash-On-Cash on Proforma: 11.72% Net Rentable S.F. 128,562 Mortgage Balances: $ 12,080,000 Avg. Unit Size: 959 Equity Requirement: $ 3,020,000 20% No. Type Bdrm/Bth Sq.Ft. Total Sq.Ft. Avg Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr. 36 B1 2 Bed / 1 Bath 830 29,880 879.00 1.06 31,644 379,728 11 B1P 2 Bed / 1 Bath 830 9,130 879.00 1.06 9,669 116,028 1 B1PH 2 Bed / 2 Bath 830 830 929.00 1.12 929 11,148 34 B2 2 Bed / 2 Bath 988 33,592 989.00 1.00 33,626 403,512 11 B2P 2 Bed / 2 Bath 988 10,868 989.00 1.00 10,879 130,548 1 B2PH 2 Bed / 2 Bath 988 988 1014.00 1.03 1,014 12,168 2 B2V 2 Bed / 2 Bath 988 1,976 1039.00 1.05 2,078 24,936 3 B3 2 Bed / 2 Bath 1,119 3,357 1199.00 1.07 3,597 43,164 23 C1 3 Bed / 2 Bath 1,053 24,219 1169.00 1.11 26,887 322,644 6 C1P 3 Bed / 2 Bath 1,053 6,318 1189.00 1.13 7,134 85,608 1 C1PH 3 Bed / 2 Bath 1,053 1,053 1169.00 1.11 1,169 14,028 1 C1PV 3 Bed / 2 Bath 1,053 1,053 1194.00 1.13 1,194 14,328 1 C1V 3 Bed / 2 Bath 1,053 1,053 1044.00 0.99 1,044 12,528 3 C3 3 Bed / 2 Bath 1,415 4,245 1359.00 0.96 4,077 48,924 134 959 128,562 1007.02 1.05 134,941 1,619,292 24 Garages 322 7,728 95.00 0.30 2,280 27,360 2016 October Trailing 12 2016 October Trailing 3 Annualized Proforma INCOME Per Unit Gross Potential 1,619,292 12,084 Loss / Gain to Lease 48,300 360 Gross Potential 1,570,992 11,724 (Vacancy) 7.0% 109,969 821 (Credit Loss) 0.0% - - Effective Rental Income 1,310,690 1,409,067 1,461,023 10,903 Other Income 47,988 24,293 47,988 358 RUBS Income 28,432 27,486 28,432 212 Garage Income / Included in ERI - - 100% 27,360 204 Gross Operating Income 1,387,110 1,460,846 1,564,803 11,678 Current Bal. Dec-16 $ 12,080,000 EXPENSES Original Bal. Dec-16 $ 12,080,000 R E Taxes 117,006 117,006 85 / 15 Ratio 169,400 1,264 Maturity 10 Insurance 66,080 61,900 Actual 50,984 380 Amortization 30 Corporate Units - - - - Interest Rate 4.500% Electricity 24,242 23,456 24,242 181 Constant 6.080% Water / Sewer 43,394 47,357 43,394 324 Debt Service $ 734,491 Trash 13,019 14,114 13,019 97 Debt Coverage Ratio 1.22 Employee Programs 1,534 1,763 1,600 12 I.O. Debt Service $ 543,600 Maintenance / Repairs 73,935 85,077 60,300 450 Wages & Payrol Taxes 118,441 125,946 120,600 900 Management Fee 41,613 43,825 3.0% 46,944 350 Advertising 42,474 36,161 35,000 261 Administration 77,933 73,190 75,000 560 Reserves - 26,800 200 Total Operating Expenses 619,671 629,795 667,283 Per Unit 4,624 4,700 4,980 Per Sq Ft 4.82 4.90 5.19 Net Operating Income 767,439 831,051 897,519 Debt Service - - - 543,600 Cash Flow 353,919 Real Estate Tax Information: 2016 Assessed Value: 1,214,639 Rate/$1000: 120.65 Value: $ 11,042,172.73 Account: R214021000 Ratio: 11.00% Tax Amount: $ 146,546 Tax Dist: Per Unit: $ 82,404.27 26A Notes: Not shown on P&L / From 11-2-16 Rent Roll / Payroll for Trailing 3 includes a three payroll month for October
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RENT COMPS In order to estimate market rents for The Pointe at North Penn, four apartment communities were selected as most competitive. Each property has been chosen due to its similarity with regard to quality, location, age, or amenities. While each property may not be directly comparable in all aspects, collectively they represent the rental market for The Pointe at North Penn. Rental Rates are based on market rates only and do not include any concessions or specials. Avana on Second Apartments 1919 E. Second Street, Edmond, OK 73034 328 Units Oxford Oaks Apartments 1920 East 2nd Street, Edmond, OK 73034 488 Units Legend V Apartments 2133 East 2nd Street, Edmond, OK 73034 200 Units Summit Groves Apartments 18001 Highland Park Rd, Edmond, OK 73012 140 Units 28
Rent Comps at a Glance Avana on Second Apartments 1919 E. Second Street, Edmond, OK 73034 Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft. 1 1 700 $862-$1111 $1.23 to $1.59 2 2 1087 $1,013-$1,143 $0.93 to $1.05 3 2 1228 $1,224-$1,290 $1.00 to $1.05 29
Avana on Second Apartments 1919 E. Second Street, Edmond, OK 73034 30
Oxford Oaks Apartments 1920 East 2nd Street, Edmond, OK 73034 Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft. Studio 448 From $575 $1.28 1 1 605 From $725 $1.20 2 2 884 From $825 $0.93 3 2 1013 From $1,155 $1.14 31
Oxford Oaks Apartments 1920 East 2nd Street, Edmond, OK 73034 32
Legend V Apartments 2133 East 2nd Street, Edmond, OK 73034 Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft. 1 1.5 951 From $949 $1.00 1 1 843 From $899 $1.07 2 2 1158 From $1069 $0.92 2 2 1228 From $1089 $0.89 3 2 1429 From $1379 $0.97 33
Legend V Apartments 2133 East 2nd Street, Edmond, OK 73034 34
Summit Groves Apartments 18001 Highland Park Rd, Edmond, OK 73012 Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft. 2 1 873 $809 to $859 $0.93 to $0.98 2 2 1,076 $919 to $969 $0.85 to $0.90 2 2 1,013 $889 to $939 $0.88 to $0.93 2 2 996 $904 $0.91 3 2 1,081 $1,000 to $1,050 $0.93 to $0.97 35
Summit Groves Apartments 18001 Highland Park Rd, Edmond, OK 73012 36
Rent Comp Map 37
Sold Comparison Property Address: 14520 N. Pennsylvania, Oklahoma City Size and Age: 276-units, Built in 2009 Price: $28,300,000 Price Per Unit: $102,536 Closing Date: May, 2016 Total Square Footage: 280,921 Price Per Sq. Ft: $100.74 The Residence at North Penn Property Address: 1919 E. 2nd Street, Edmond Size and Age: 328-units, Built in 1999 Price: $36,070,000 Price Per Unit: $109,969 Closing Date: December, 2015 Total Square Footage: 304,748 Price Per Sq. Ft: $118.36 Avana on Second Property Address: 14117 N. Rockwell, Oklahoma City Size and Age: 300-units, Built in 2013 Price: $36,250,000 Price Per Unit: $120,833 Closing Date: September, 2015 Total Square Footage: 314,642 Price Per Sq. Ft: $115.21 The Shores at K-Rock 38
Sold Comparison Property Address: 6600 SE 74th Street, Oklahoma City Size and Age: 324-units, Built in 2013 Price: $37,250,000 Price Per Unit: $114,969 Closing Date: September, 2014 Total Square Footage: 291,787 Price Per Sq. Ft: $127.49 Liberty Pointe Property Address: 2701 Watermark Blvd., Oklahoma City Size and Age: 240-units, Built in 2012 Price: $25,250,000 Price Per Unit: $105,208 Closing Date: June, 2013 Total Square Footage: 255,921 Price Per Sq. Ft: $98.66 The Retreat at Quail North Property Address: 777 N. Air Depot Blvd, Midwest City Size and Age: 298-units, Built in 2004 Price: $31,706,000 Price Per Unit: $106,396 Closing Date: August, 2013 Total Square Footage: 318,692 Price Per Sq. Ft: $99.49 Avana Midwest 39
Sale Comp Summary Property Price/Unit Overall Price No. Unit Year Built Price Per Sq Ft The Residence at North Penn $102,536 $28,300,000 276 2009 $100.74 Avana on Second $109,969 $36,070,000 328 1999 $118.36 The Shores at K-Rock $120,833 $36,250,000 300 2013 $115.21 Liberty Pointe $114,969 $37,250,000 324 2013 $127.49 Avana Midwest $106,396 $31,706,000 298 2004 $99.49 The Retreat at Quail North $105,208 $25,250,000 240 2012 $98.66 Average / Total $110,320 $194,826,000 1,766 $ The Pointe at North Penn $112,687 $15,100,000 134 2015 $117.45 Price per Unit Average $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ $102,536 $109,969 $120,833 $114,969 $106,396 $105,208 $112,687 40
Sale Comp Map 41
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Click below to view Edmond Economic Development Authority http://www.eeda.com http://www.eeda.com/sites/eeda/uploads/ 43
Click below to view Oklahoma City at a Glance http://viewer.zmags.com/publication/13eac868#/13eac868/2 44
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Mike Buhl CRRC Oklahoma City 611 24th Avenue SW, Suite 100 Norman, OK 73069 405-360-5966 buhl@crrc.us Darla Knight CRRC Tulsa 4137 S. Harvard, Suite E Tulsa, OK 74135 918-557-5966 darla@crrc.us 46
OKLAHOMA REAL ESTATE COMMISSION What You Need to Know About Broker Services A real estate broker may work with one or both parties to a real estate transaction. The Oklahoma Broker Relationships Law (Title 59, Oklahoma Statutes, 858-351 858-363) allows a real estate firm to provide brokerage services to both parties to the transaction. This could occur when a firm has contracted with a seller to sell their property and a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer on the property, the firm must now provide a written notice to both the buyer and seller that the firm is now providing brokerage services to both parties to the transaction. Oklahoma real estate brokers have mandatory duties and responsibilities to all parties in a real estate transaction. These duties and responsibilities shall be described and disclosed in writing prior to signing a contract to sell, purchase, lease, option or exchange real estate. These duties and responsibilities are to: Treat all parties with honesty and exercise reasonable skill and care. Receive all written offers and counteroffers, reduce offers or counteroffers to a written form upon request of any party to a transaction and present timely all written offers and counteroffers (unless specifically waived in writing by a party). Timely account for all money and property received by the broker. Disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act. Comply with all requirements of The Oklahoma Real Estate License Code and all applicable statutes and rules. Keep confidential information received from a party or prospective party confidential unless written consent is granted by the party, the disclosure is required by law, or the information is public or becomes public as the results of actions from a source other than the broker. Confidential information includes: o That a party is willing to pay more or accept less than what is being offered o That a party or prospective party is willing to agree to financing terms different from those offered o The motivating factors of the party or prospective party purchasing, selling, leasing, optioning or exchanging the property o Any information specifically designated as confidential by the party unless such information is public. A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerage services. These duties and responsibilities shall also be described and disclosed in writing prior to signing a contract to sell, purchase, lease, option and exchange real estate. These duties are to: Inform the party in writing when an offers is made that the party will be expected to pay certain costs, brokerage services costs and approximate amount of the costs. Keep the party informed regarding the transaction. If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker shall provide written disclosure to the party for whom the broker is providing services. The disclosure shall include a description of those steps in the transaction that the broker will not provide and state that the broker assisting the other party in the transaction is not required to provide assistance with these steps in any manner. Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by the broker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract to purchase, option or exchange real estate. Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerage services to a landlord under a property management agreement, the services provided to the tenant by the broker shall not be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to in writing; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care. For more information, visit www.orec.ok.gov This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission. OREC BROKER SERVICES INFORMATION (11-2013)