$8,900,000 MultiFamily Batesville, Ar 72501 FOR SALE 4323 Harrison Street PROPERTY HIGHLIGHTS 104 Total Luxury Units 72-2 Bedroom, 2 Bathroom Units 16-3 Bedroom, 2 Bathroom Units 16-1 Bedroom, 1 Bathroom Units
EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $8,944,500 Investment - Cash $1,824,500 First Loan $7,120,000 Investment Information Purchase Price $8,900,000 Price per Unit $85,577 Price per Sq. Ft. N/A Income per Unit $8,618 Expenses per Unit ($2,229) Income, Expenses & Cash Flow Gross Scheduled Income $896,255 Total Vacancy and Credits ($8,736) Operating Expenses ($231,861) Net Operating Income $655,658 Debt Service ($529,074) Cash Flow Before Taxes $126,584 Financial Indicators Cash on Cash Return Before Taxes 6.94% Debt Coverage Ratio 1.24 Capitalization Rate 7.37% Gross Rent Multiplier 9.93 Gross Income / Square Feet $0.00 Gross Expenses / Square Feet $0.00 Operating Expense Ratio 26.12% Page 2
INVESTMENT DETAILS ANALYSIS Analysis Date March 2018 PROPERTY Property Property Address 4323 Harrison Street Batesville, Ar 72501 Year Built 2016 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $8,900,000 Fair Market Value $8,900,000 Units 104 Total Rentable Sq. Ft. 0 Resale Valuation 1.0% (annual appreciation) FINANCIAL INFORMATION Down Payment $1,780,000 Closing Costs $44,500 LOANS Type Debt Term Amortization Rate Payment LO Costs Fixed $7,120,000 20 years 20 years 4.25% $44,089 INCOME & EXPENSES Gross Operating Income $887,519 Monthly GOI $73,960 Total Annual Expenses ($231,861) Monthly Expenses ($19,322) Page 3
PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total 2 Bedroom, 2 Bathroom 72 $8,400 $604,800 $8,400 $604,800 3 Bedroom, 2 Bathroom 16 $9,600 $153,600 $9,600 $153,600 1 Bedroom, 1 Bathroom 16 $7,200 $115,200 $7,200 $115,200 TOTALS 104 $873,600 $873,600 INVESTMENT SUMMARY Price: $8,900,000 Year Built: 2016 Units: 104 Price/Unit: $85,577 RSF: 1 Price/RSF: $8,900,000.0 Lot Size: 9.40 acres Floors: 2 Parking Spaces: 2.6 Cap Rate: 7.37% Market Cap Rate: 10.27% GRM: 9.93 Market GRM: 7.77 FINANCING SUMMARY Loan Amount: $7,120,000 Down Payment: $1,780,000 Loan Type: Fixed Interest Rate: 4.25% Term: 20 years Monthly Payment: $44,089 DCR: 1.24 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $873,600 $873,600 Less: Vacancy ($8,736) $0 Misc. Income $22,655 $271,856 Effective Gross Income $887,519 $1,145,456 Less: Expenses ($231,861) ($231,861) Net Operating Income $655,658 $913,595 Debt Service ($529,074) ($529,074) Net Cash Flow after Debt Service $126,584 $384,521 Principal Reduction $230,938 $230,938 Total Return $357,522 $615,459 ANNUALIZED EXPENSES Description Actual Market Taxes $67,380 $67,380 Advertising $3,527 $3,527 Building Insurance $29,864 $29,864 Office Supplies $1,596 $1,596 Grounds Maintenance $8,400 $8,400 Janitorial $8,568 $8,568 Maintenance $23,509 $23,509 Security $675 $675 Taxes - Payroll $74,926 $74,926 Utilities $13,418 $13,418 Total Expenses $231,861 $231,861 Expenses Per RSF $231,860.87 $231,860.87 Expenses Per Unit $2,229 $2,229 Page 4
UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 72 2 Bedroom, 2 Bathroom 0 $700 $50,400 $700 $50,400 16 3 Bedroom, 2 Bathroom 0 $800 $12,800 $800 $12,800 16 1 Bedroom, 1 Bathroom 0 $600 $9,600 $600 $9,600 104 0 $72,800 $72,800 UNIT MIX UNIT MIX SQUARE FEET 2 Bedroom, 2 Bathroom 3 Bedroom, 2 Bathroom 1 Bedroom, 1 Bathroom 2 Bedroom, 2 Bathroom 3 Bedroom, 2 Bathroom 1 Bedroom, 1 Bathroom UNIT MIX INCOME UNIT MIX MARKET INCOME 2 Bedroom, 2 Bathroom 3 Bedroom, 2 Bathroom 1 Bedroom, 1 Bathroom 2 Bedroom, 2 Bathroom 3 Bedroom, 2 Bathroom 1 Bedroom, 1 Bathroom Page 5
CUMULATIVE WEALTH ANALYSIS $12,000,000 $10,800,000 $9,600,000 $8,400,000 $7,200,000 $6,000,000 $4,800,000 $3,600,000 $2,400,000 $1,200,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) Page 6
PROPERTY EQUITY ANALYSIS $11,000,000 $9,900,000 $8,800,000 $7,700,000 $6,600,000 $5,500,000 $4,400,000 $3,300,000 $2,200,000 $1,100,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Initial Equity Equity (loan reduction) Equity (appreciation) Page 7
EQUITY VS. DEBT $11,000,000 $9,900,000 $8,800,000 $7,700,000 $6,600,000 $5,500,000 $4,400,000 $3,300,000 $2,200,000 $1,100,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Equity Loan Principal Balance Page 8
OPERATING INCOME ANALYSIS $890,000 $801,000 $712,000 $623,000 $534,000 $445,000 $356,000 $267,000 $178,000 $89,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) Page 9
DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages 0-4 154 573 787 Ages 5-9 175 679 956 Ages 10-14 151 599 850 Ages 15-19 149 590 819 Ages 20-24 162 587 798 Ages 25-29 182 579 775 Ages 30-34 193 574 770 Ages 35-39 192 546 750 Ages 40-44 185 535 735 Ages 45-49 177 553 768 Ages 50-54 168 558 776 Ages 55-59 163 564 781 Ages 60-64 143 506 699 Ages 65-69 119 424 596 Ages 70-74 93 359 487 Ages 75-79 70 288 385 Ages 80-84 50 209 271 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 2,454 8,110 11,325 Population Black 22 100 113 Population Am In/AK Nat 3 4 4 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $70,491 $42,238 $29,294 < $10000 25 312 439 $10000-$14999 16 247 470 $15000-$19999 1 180 312 $20000-$24999 96 284 541 $25000-$29999 68 405 454 $30000-$34999 38 129 178 $35000-$39999 6 169 240 $40000-$44999 25 31 132 $45000-$49999 N/A 56 73 $50000-$60000 96 331 466 $60000-$74000 141 357 413 $75000-$99999 92 307 388 $100000-$124999 52 203 251 $125000-$149999 95 188 188 $150000-$199999 49 153 162 > $200000 25 112 143 Characteristic Housing 1 Mile 3 Mile Housing Units 873 3,782 Occupied Housing Units 815 3,491 Owner Occupied Housing Units 606 2,173 Renter Occupied Housing Units 209 1,318 Vacant Housing Units 58 291 Page 10