FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL PROPERTY HIGHLIGHTS 100% occupied with a waiting list Built between 2002 and 2015 Below market rents Newly renovated and well-maintained single family rent All houses are in the same neighborhood in the fast growing Huntsville Metropolitan Area PRESENTED BY: Desiree Palmer Associate Advisor 773.886.6010 desiree.palmer@svn.com AL #000100450 Andrew Agee Senior Advisor 256.653.0065 andy.agee@svn.com All SVN Offices Independently Owned & Operated.
DISCLAIMER The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
TABLE OF CONTENTS 1. PROPERTY INFORMATION 4 2. LOCATION INFORMATION 6 3. FINANCIAL ANALYSIS 11 4. DEMOGRAPHICS 16 5. ADDITIONAL INFORMATION 19 All SVN Offices Independently Owned & Operated.
FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL 1 PROPERTY INFORMATION
SECTION 1 PROPERTY INFORMATION Executive Summary PROPERTY OVERVIEWVIEW This is a portfolio of 26 single family patio homes all located in the Huntsville Metropolitan Area. All properties were built between 2002 and 2015 and were renovated within the past year and have scenic views of the mountains. These properties remain 100% occupied and maintain a waiting list without advertising. Flooring is stamped concrete, eliminating the need to replace the flooring on move-out. Huntsville, AL is the fastest growing city of Alabama's 4 large cities and has recently been ranked #8 for cities with the biggest single family rent hikes in the U.S. PROPERTY HIGHLIGHTS 100% occupied with waiting list PROPERTY SUMMARY SALE PRICE: $2,040,000 NUMBER OF UNITS: 26 Built between 2002 and 2015 Below market rents Newly renovated and well-maintained Stamped concrete flooring, eliminating the need to replace flooring All houses located in the fast growing Huntsville Metropolitan Area CAP RATE: 7.01% NOI: $142,953 BUILDING SIZE: 21,339 SF ZONING: R MARKET: Huntsville 5
FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL 2 LOCATION INFORMATION
SECTION 2 LOCATION INFORMATION Location Maps 7
SECTION 2 LOCATION INFORMATION 8
SECTION 2 LOCATION INFORMATION 9
SECTION 2 LOCATION INFORMATION 10
FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL 3 FINANCIAL ANALYSIS
SECTION 3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEWVIEW 2016 STATED PRO FORMA Price $2,040,000 $2,040,000 Price per Unit $78,461 $78,461 GRM 9.9 9.3 CAP Rate 7.0% 7.3% Cash-on-Cash Return (yr 1) 9.59 % 11.78 % Total Return (yr 1) $65,599 $72,444 Debt Coverage Ratio 1.39 1.46 OPERATING DATA 2016 STATED PRO FORMA Gross Scheduled Income $206,209 $220,000 Other Income - - Total Scheduled Income $206,209 $220,000 Vacancy Cost $0 $1,995 Gross Income $206,209 $218,005 Operating Expenses $63,256 $68,207 Net Operating Income $142,953 $149,798 Pre-Tax Cash Flow $40,293 $47,138 FINANCING DATA 2016 STATED PRO FORMA Down Payment $420,000 $400,000 Loan Amount $1,640,000 $1,640,000 Debt Service $102,660 $102,660 Debt Service Monthly $8,555 $8,555 Principal Reduction (yr 1) $25,306 $25,306 12
SECTION 3 FINANCIAL ANALYSIS Income & Expenses INCOME SUMMARY 2016 STATEDTED PER UNIT PRO FORMA PER UNIT Rental Income $204,058 $7,848.00 - - Late Fees $872 $33.00 - - Pet Fees $1,279 $49.00 - - Gross Rental Income - - $220,000 $8,461.00 Vacancy - - -$11,355 -$437.00 Utility Bill Back - - $9,360 $360.00 GROSS INCOME $206,209 $7,931.00 $218,005 $218,005 EXPENSE SUMMARY 2016 STATEDTED PER UNIT PRO FORMA PER UNIT Property Management $16,761 $644.00 $21,575 $829.00 Taxes $8,500 $326.00 $8,500 $326.00 Insurance $7,000 $269.00 $7,200 $276.00 Utilities (water & dumpster fee) $4,007 $154.00 - - Lawn Care $4,200 $161.00 $4,200 $161.00 Repairs - General $4,553 $175.00 - - Repairs - HVAC $3,950 $151.00 - - Repairs - Plumbing $5,860 $225.00 - - Lease up Fee $1,093 $42.00 - - Legal $1,332 $51.00 $1,332 $51.00 Painting $6,000 $230.00 $6,000 $230.00 Utilities (water and dumpster fee) - - $5,400 $207.00 Repairs and Maintenance - - $14,000 $538.00 GROSS EXPENSES $63,256 $2,432.00 $68,207 $2,623.00 NET OPERATING INCOME $142,953 $5,498.00 $149,798 $5,761.00 13
SECTION 3 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) CURRENT RENT CURRENT RENT (PER SF) MARKET RENT 1 2 1 1,370 $675 $0.49 $750 2 2 1 1,112 $750 $0.67 $775 3 2 1 700 $650 $0.93 $725 4 2 1 700 $695 $0.99 $725 5 2 1 700 $650 $0.93 $725 6 2 1 700 $650 $0.93 $725 7 2 1 700 $675 $0.96 $725 8 1 1 741 $625 $0.84 $725 9 2 1 752 $650 $0.86 $725 10 2 1 752 $725 $0.96 $725 11 2 1 865 $695 $0.80 $725 12 2 1 865 $695 $0.80 $725 13 2 1 865 $675 $0.78 $725 14 2 1 865 $695 $0.80 $725 15 2 1 865 $695 $0.80 $725 16 2 1 865 $695 $0.80 $725 17 2 1 865 $695 $0.80 $725 18 2 1 865 $695 $0.80 $725 19 2 1 774 $695 $0.90 $725 20 2 1 774 $695 $0.90 $725 21 2 1 774 $695 $0.90 $725 22 2 1 774 $650 $0.84 $725 23 2 1 774 $650 $0.84 $725 14
SECTION 3 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) CURRENT RENT CURRENT RENT (PER SF) 24 2 1 774 $675 $0.87 $725 25 2 1 774 $695 $0.90 $725 26 2 1 774 $675 $0.87 $725 MARKET RENT 21,339 $17,71515 $0.83 $18,925 15
FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL 4 DEMOGRAPHICS
SECTION 4 DEMOGRAPHICS Demographics Report 1 MILE 5 MILES 10 MILES Total households 328 9,395 53,106 Total persons per hh 2.7 2.6 2.5 Average hh income $78,693 $80,423 $75,036 Average house value $189,909 $185,749 $233,018 1 MILE 5 MILES 10 MILES Total population 885 24,366 135,306 Median age 38.1 39.7 39.1 Median age (male) 38.8 39.6 37.8 Median age (female) 37.4 39.8 40.1 * Demographic data derived from 2010 US Census 17
SECTION 4 DEMOGRAPHICS Demographics Map 1 Mile 5 Miles 10 Miles Total Population 885 24,366 135,306 Population Density 282 310 431 Median Age 38.1 39.7 39.1 Median Age (Male) 38.8 39.6 37.8 Median Age (Female) 37.4 39.8 40.1 Total Households 328 9,395 53,106 # of Persons Per HH 2.7 2.6 2.5 Average HH Income $78,693 $80,423 $75,036 Average House Value $189,909 $185,749 $233,018 * Demographic data derived from 2010 US Census 18
FOR SALE RESIDENTIAL INCOME PORTFOLIO OF 26 SINGLE FAMILY RENTALS IN HUNTSVILLE, AL Huntsville, AL 35811 Huntsville, AL 5 ADDITIONAL INFORMATION
SECTION 5 ADDITIONAL INFORMATION Additional Photos 20
SECTION 5 ADDITIONAL INFORMATION Advisor Bio & Contact 1 Desiree Palmer Associate Advisor SVN AVAT Realty, LLC Desiree is an advisor with Sperry Van Ness/AVAT Realty specializing in self-storage, multi-family and medical office buildings. Desiree holds an LL.M (Master of Laws) in Finance from the Institute for Law and Finance in Frankfurt, Germany and a J.D. from the University of Arizona's James E. Rogers College of Law. Desiree has been licensed to practice law in New York State since 2008. Memberships & Affiliations New York Bar Association - Real Property Law Section Alabama Self Storage Association - Board Member Desiree previously worked in Moscow, Russia as a legal associate in the area of banking and finance, including real estate finance. For the past several years Desiree has been advising in the area of distressed property sales. AL #000100450 TN #336191 Phone: 773.886.6010 Fax: 866.358.4422 Cell: 773.886.6010 Email: desiree.palmer@svn.com Address: 2225 Drake Avenue, Suite 2 Huntsville, AL 35805 21
SECTION 5 ADDITIONAL INFORMATION Advisor Bio & Contact 2 Andrew Agee Senior Advisor SVN AVAT Realty, LLC Andy has successfully brokered real estate investments for owner-users and investors involving properties valued at over $200 MM. His specialty is the buying and selling of multifamily assets in the Southeastern U.S. He and his highly skilled team has completed transactions across four states, ranging from 8 units and $250,000, to portfolio transactions in excess of $20 million. We are extremely customer centric, and we subscribe wholeheartedly to the SVN model of Win/Win relationships. Member of: Memberships & Affiliations Phone: 256.653.0065 Fax: 866.358.4422 Cell: 256.653.0065 Email: andy.agee@svn.com Andy is also a member of the National Apartment Association, CCIM, Committee of 100 in Huntsville, is involved as a board member of a large local political committee in North Alabama, and serves on the board of the Margarita Society, a non profit organization that collects thousands of toys for various charitable organizations at Christmas. He is also involved with the Development Council of the Huntsville Hospital Foundation. Address: 2225 Drake Avenue, Suite 2 Huntsville, AL 35805 22
PRESENTED BY: DESIREE PALMER Associate Advisor 773.886.6010 desiree.palmer@svn.com AL #000100450 ANDREW AGEE Senior Advisor 256.653.0065 andy.agee@svn.com All SVN Offices Independently Owned & Operated 2014 All Right Reserved www.svn.com