FOR SALE MULTIFAMILY COLLEGE HOUSING PORTFOLIO RENTAL PROPERTIES 10 UNITS MILWAUKEE, WI PRESENTED BY: DAWN DAVIS Associate Advisor 414.727.8000 X9 dawn.davis@svn.com PROPERTY HIGHLIGHTS INSTANT VALUE-ADD PORTFOLIO Various updates made to various houses of which include: Updated kitchens Updated bathrooms Newer appliances Window replacements New boiler in one house Newer furnace and A/C system in one house Newer roofs on two houses (See individual property listings for specific updates made to each property)
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1 PROPERTY INFORMATION
SECTION 1 PROPERTY INFORMATION Executive Summary SALE OVERVIEW SALE PRICE: $1,805,000 PROPERTY DESCRIPTION SVN is pleased to announce the exclusive listing of this Five student housing rental property portfolio within blocks of the University of Wisconsin - Milwaukee campus and in close proximity to each other. This portfolio has a total of 10 units, 2 units per house. NUMBER OF PROPERTIES: 5 Three of these houses are directly across the street from the campus. These 3 properties are located on Downer Ave and are right next to each other. The house on Hackett Ave is only 1 block away from campus and the house on Cramer Ave is just 3 blocks away from campus. NUMBER OF UNITS: 10 In the 10 years that this landlord has owned property in this area, he has maintained 100% occupancy 100% of the time. With the student population of UW-Milwaukee being approximately 27,000 and the population for the city of Milwaukee being approximately 600,000, this is easy to achieve. TOTAL SQUARE FEET: 15,945 SF INSTANT VALUE-ADD PORTFOLIO: BASED ON CURRENT MARKET RENTS, THESE PROPERTIES ARE CHARGING BELOW MARKET RENTS. WITH INCREASED RENTS THIS PORTFOLIO IS PRICED AT A 9.25% CAP RATE. (SEE PROFORMA FOR DETAILS) 4
SECTION 1 PROPERTY INFORMATION Property Description ADDRESS: 3370/3372 N DOWNER AVE, MILWAUKEE WI PROPERTY Overview: 2 Units 3 bedrooms (in upper unit) 4 bedrooms (in lower unit) 1 Bathroom (in each unit) Total SF: 3188 Year built: 1922 PROPERTY HIGHLIGHTS: Updated Bathrooms Some window replacements New stove and refrigerator Hardwood floors Includes 4 parking spots for additional revenue Coined laundry in basement 5
SECTION 1 PROPERTY INFORMATION Property Description ADDRESS: 3364/3366 N DOWNER AVE, MILWAUKEE WI PROPERTY OVERVIEW: 2 Units 3 bedrooms (in each unit) 1 bathroom (in each unit) Total SF: 3760 Year Built: 1922 PROPERTY HIGHLIGHTS: Remodeled bathrooms Hardwood floors New Boiler Replaced roof 8 years ago Replaced stove & refrigerator Many window replacements Replaced driveway and sidewalk Installed more parking spots for additional revenue.. 6
SECTION 1 PROPERTY INFORMATION Property Description ADDRESS: 3358/3360 N DOWNER AVE, MILWAUKEE WI PROPERTY OVERVIEW: 2 Units 4 bedrooms (in each unit) 1 bathroom (in each unit) Total SF: 3119 Year built: 1921 PROPERTY HIGHLIGHTS: Window replacement throughout Replaced roof 8 years ago Installed front patio New back porch Installed 4 new parking spots for additional revenue Hardwood floors Coined laundry in basement 7
SECTION 1 PROPERTY INFORMATION Property Description ADDRESS: 3263/3265 N HACKETT AVE, MILWAUKEE WI PROPERTY OVERVIEW: 3 bedrooms (in each unit) 2 bathrooms in unit 1 1 bathroom in unit 2 Total SF: 3276 Year built: 1901 PROPERTY HIGHLIGHTS: Re-tiled showers in both units New stove and refrigerator All new windows on second floor of one unit Hardwood floors 8
SECTION 1 PROPERTY INFORMATION Property Description property OVERVIEW 2 Units 3 bedrooms (in each unit) 1 bathroom (in each unit) Total SF: 2480 Year built: 1924 LOCATION OVERVIEW Both kitchens completely remodeled (2016) Newer furnace and air conditioning units for each unit New garage foundation and doors Some window replacements Hardwood floors Includes parking spots for additional income New coin washing machine in basement 9
2 FINANCIAL ANALYSIS
SECTION 2 FINANCIAL ANALYSIS Financial Summary 2017 Per Per Proforma Per Per Actual Unit Foot Unit Foot Income Rent 185,690 18,569 11.65 205,800 20,580 12.91 Parking 7,020 702 0.44 7,020 702 0.44 Laundry 800 80 0.05 800 80 0.05 Total Income 193,510 19,351 12.14 213,620 21,362 13.40 Expenses maintenance 3,207 321 0.20 3,300 330 0.21 Insurance 6,522 652 0.41 6,522 652 0.41 RE Tax 36,554 3,655 2.29 36,554 3,655 2.29 Total Expenses 46,283 4,628 2.90 46,376 4,638 2.91 Net Operating Income 147,227 14,723 9.23 167,244 16,724 10.49 NOTES 1. Current owner has never raised rents on 8 of the 10 units 2. According to a recent rent survey, rents could be raised by at least a conservative $50 per bedroom 3. Based on current market rents, this portfolio is priced at approximately a 9.25 Cap Rate 4. Coin Laundry is located in 3 of the 5 properties 5. Paid parking is available at 4 of the 5 properties 6. Current owner acquired these properties in 2007, 2009, 2013 & 2016 7. Tenants pay for all utilities except in units 3364-3366 Downer Ave 11
SECTION 2 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START LEASE END CURRENT RENT MARKET RENT 3370 N Downer 4 1 1494 August 1 July 31 $1650 $1850 3372 N Downer 3 1 1494 August 1 July 31 $1850 $2000 3364 N Downer 3 1 1776 August 1 July 31 $1650 $1800 3366 N Downer 3 1 1744 August 1 July 31 $1650 $1800 3358 N Downer 4 1 1442 June 1 May 31 $1650 $1850 3360 N Downer 4 1 1377 August 1 July 31 $1650 $1850 3454 N Cramer 3 1 1190 August 1 July 31 $1300 $1450 3356 N Cramer 3 1 1190 August 1 July 31 $1300 $1450 3263 N Hackett 3 2 1421 August 1 July 31 $1600 $1600 3265 N Hackett 3 1 1370 August 1 July 31 $1320 $1500 12
SECTION 2 FINANCIAL ANALYSIS Rent Comp Summary Bedrooms Rent Address Rent Per Unit Per Bedroom Subject Property 3372 N Downer 1,850 3 617 3370 N Downer 1,650 4 413 3366 N Downer 1,650 3 550 3364 N Downer 1,650 3 550 3360 N Downer 1,650 4 413 3358 N Downer 1,650 4 413 3454 N Cramer 1,300 3 433 3356 N Cramer 1,300 3 433 3265 N Hackett 1,320 3 440 3363 N Hackett 1,350 3 450 Average 471 Comparable Property 2725 N Downer 3,000 4 750 3073 N Hackett 1,975 3 658 4215 N Stowell 1,895 3 632 2408 E Park 1,800 3 600 3205 N Marietta 1,250 2 625 3408 N Downer 1,390 2 695 4043 N Downer 1,200 2 600 2100 E Beverly 1,350 2 675 2508 E Belleview 750 1 750 3253 N Summit 750 1 750 3438 Oakland 750 1 750 Average 680 13
3 LOCATION INFORMATION
SECTION 3 LOCATION INFORMATION City Highlights PROPERTY HIGHLIGHTS Less than 2 miles from Bradford Beach. Voted #3 for best urban beaches in the country by USA Today's Reader's Choice 2016 With the world-class Milwaukee Art Museum, Milwaukee's Film Festival, and Summerfest (the world's largest music festival), Milwaukee named one of America's top 12 art places by ArtPlace. Home to 4 professional sports teams Hosts 12 major public museums Only a 1/2 mile from Oak Leaf Trail which provides 108 miles of multi-use recreational paved trails 15
SECTION 3 LOCATION INFORMATION Retailer Map 16
SECTION 3 LOCATION INFORMATION Location Maps 17
4 DEMOGRAPHICS
SECTION 4 DEMOGRAPHICS Demographics Report 1 MILE 2 MILES 3 MILES Total households 10,745 34,407 57,132 Total persons per hh 2.4 2.1 2.1 Average hh income $62,882 $58,787 $58,049 Average house value $449,554 $351,779 $326,503 1 MILE 2 MILES 3 MILES Total population 25,484 71,991 120,974 Median age 28.4 31.0 31.1 Median age (male) 27.6 30.5 30.4 Median age (female) 28.8 31.4 32.1 * Demographic data derived from 2010 US Census 19
SECTION 4 DEMOGRAPHICS Demographics Map POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 25,484 71,991 120,974 MEDIAN AGE 28.4 31.0 31.1 MEDIAN AGE (MALE) 27.6 30.5 30.4 MEDIAN AGE (FEMALE) 28.8 31.4 32.1 HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 10,745 34,407 57,132 # OF PERSONS PER HH 2.4 2.1 2.1 AVERAGE HH INCOME $62,882 $58,787 $58,049 AVERAGE HOUSE VALUE $449,554 $351,779 $326,503 20
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.
SECTION 4 DEMOGRAPHICS Wisconsin Disclosure 22