Chisholm Valley & Westwind Duplexes

Transcription

1 MULTIFAMILY OFFERING SHOWN BY APPT. WITH LISTING AGENTS INVESTMENT HIGHLIGHTS Chisholm Valley & Westwind Duplexes Units: 152 Excellent Round Rock Location Unique Community on 76 Separate Parcels Single-Family Style Living Close Proximity to Nationally Acclaimed Round Rock Independent School District Value Add Opportunity with Interior Enhancements Strong Rental Upside Full-Sized Washer / Dryer Connections in 100% of Units One Car Garages Fenced Backyards Management Office On-Site 20+ Years of Ownership 1200 Christopher Ave. et. al. Round Rock, TX Ellen Muskin x1 ellenm@muskincommercial.com Daniel Elam x2 daniel@muskincommercial.com

2 Investment Opportunity The property benefits from good visibility along McNeil Road, which traverses the heart of Round Rock and also provides direct access to services and employers in North Austin. Access to IH-35, Texas Toll Roads 45 and MoPac (Loop 1) are nearby. Dell, National Instruments, IBM, Ebay, Oracle, Apple, and Emerson are all located within eight miles of the duplexes. The area surrounding fundamentals continue to progress. The Round Rock submarket is experiencing extremely strong rent growth, primarily due to Austin s thriving apartment outlook, the family-oriented atmosphere of Round Rock, and high-tech giants in the Round Rock/North Austin area. Austin in the second-best place to live in the U.S., according to a new ranking from U.S. News and World Report (Mar. 2016). According to a 2015 report from Money Magazine, Austin is the best city in the U.S. for adults ages 20 to 34:...projected job growth through 2019 is a robust 13.3% - thanks in part to big tech and telecom employers like Dell, IBM and AT&T. Austin is ranked at the top of the list of U.S. cities most likely to prosper during the next 10 years (Forbes, America s Next Boom Town, Jan. 2016). According to Austin Investor Interests Report (1Q 2016) the Austin area added 2,066 units, with 1,833 units quickly absorbed. There have now been over 3.5 years of positive absorption in the Austin area. Located in the Desirable Round Rock Submarket Chisholm Valley and Westwind Duplexes are situated just north of Toll Road 45, proximate to the Emerson and Dell campuses in Round Rock. This exciting submarket in the Austin MSA is ideal for renters and families. This area benefits greatly from the numerous high-tech companies and established single-family developments that have covered the landscape during the past 20 years. According to Austin Relocation Guide, Five of the top 20 employers in the Austin area are all located a short distance from the property. Located immediately south of the subject is La Frontera, a 328-acre master planned mixed-use development which houses a variety of retail, office, multifamily and hospitality. Situated in La Frontera is the headquarters of the Texas Guaranteed Student Loan Corporation. New development on the last major land parcel within the 328-acre mixed-use development will include a 400,000 SF Class A office campus. Round Rock is considered one of the top school districts in this area. In the April 2015 edition of Austin Monthly, 22 Round Rock ISD schools were featured as among the best in the Austin area. Two of these schools - Round Rock High School and Chisholm Trail Middle School - serve the property, and Bluebonnet Elementary School is across the street. Value Add Opportunity This unique offering is available for the first time in approximately 20 years. Rents are below market at $1.24/SF; yet upgrades and renovations will provide room for rent growth. While the property has enjoyed operating with economies of scale, each duplex is on its own legal parcel, so individual sell-off or creation of condos is a potential exit strategy. The average annual rent growth in the Round Rock (RR) submarket is 7.3%, according to Austin Investor Interests 1Q 2016 Trend Report, with a city growth rate of 6.2%. The RR submarket occupancy rate averaged 96.3%, above the city-wide average of 94.1%. The submarket had no new completions in the past 12 months and only 900 units completed in the past 24 months. This results in a strong rental outlook in the near term. Property Enhancements Combined, Chisholm Valley and Westwind Duplexes offer 152 one- and two- story townhome style units. The unique community is located on 76 separate parcels. The combined average unit size of 1,065+/- SF, and going as large as 1,280+/- SF, offers a wide variety of 2BR and 3BR floorplans. The roofs are pitched composition shingle. The exteriors are a combination of stone, siding and wood exteriors. Each duplex offers private fenced backyards. All units enjoy single car garages, plank faux flooring on the first floors, built-in microwaves, upgraded kitchen countertops, wood burning fireplaces, full-size washer/dryer connections, individual HVAC (electric) and water heaters (gas). Economic Fundamentals Improving 2015 Household Average Income in a 1-mile radius was $63,323 and $87,787 in a 5-mile radius. Population Growth increased 7.74% in a 1-mile and 13.69% in a 5-mile since Austin added 34,900 net new jobs, or 3.8%, in the 12 months ending in December 2015, making Austin the third fastest growing major metro (U.S Bureau of Labor Statistics). Rents in Austin are forecasted to rise 5% throughout Austin is ranked at the top of the list of U.S. cities most likely to prosper during the next 10 years (Forbes, America s Next Boom Town, January 2016). Population within a 1-mile radius grew 11% since 2010, and the Metro Austin population increased over 16% during that same span. The Austin population now exceeds 2 million. Chisholm Valley & Westwind Duplexes 152 Total Units

3 Property Features Huge Floor Plans with Average Unit Size of 1,065 +/- SF Single-Family Style Living in Duplex Community Extra-Large Kitchens with Some New Black Appliances Full-Sized Washer Dryer Connections in 100% of the Units Private Fenced Backyards with Grass and Landscaping Dishwasher, Disposals, Gas Stoves and Microwaves Electricity and Water Individually Metered for All Tenants (Paid by Residents Directly to Utility Provider) Attached, Direct Access One-Car Garages Concrete Driveways Faux Wood-Look Flooring Multiple Floor Plans to Attract Residents Gas Cooking, Heating, and Boilers Chisholm Valley & Westwind Duplexes 152 Total Units Served by Highly Ranked Round Rock ISD (Round Rock High School and Chisholm Trail Middle School ) Walking Distance to Bluebonnet Elementary All Contiguous Buildings All One or Two-Story Low-Density Community 76 Separate Parcels Individual Property Surveys Large, Mature Landscaping and Huge Oak Trees Convenient Access to Public Transportation Excellent Location to Corporate Employers, Major Thoroughfares Close to Dell, Emerson, Oracle, Apple, IBM Bill Backs for Landscaping & Pet Control to Tenants Perfect Play-Yards for Pets High Walkability Ratings MUSKINCOMMERCIAL

4 FINANCIAL ANALYSIS PROPERTY HIGHLIGHTS TOTAL UNITS 152 INVESTMENT OUTLINE PRICE $23,250,000 BUILT 1985 (100 Units) 1996 (52 Units) PRO FORMA CAP RATE 6.05% PARCELS 76 per WCAD TERMS Cash or New Loan EXTERIOR Stone, Siding and Wood PROPOSED NEW LOAN 75% LTV / $17,438,000 METERING Individual (Paid Directly to Provider) RATE / AMORT / PMT 4.5% / 30Y / $88,356 HVAC Individual (Electric) TOTAL SQUARE FEET 161,832 +/- HOT WATER Individual Gas Water Heaters LAND SIZE Approx. 14 +/- Acres UNIT MIX UNITS UNIT SF +/- TOTAL SF +/- MARKET RENT MONTHLY MARKET RENT ANNUAL MARKET RENT RENT SF +/- Chisholm Valley Duplexes Bed / 2 Bath 3 Bed / 2 Bath 3 Bed / 2 Bath 3 Bed / 2.5 Bath 3 Bed / 2.5 Bath ,063 1,134 1,280 30,976 29,670 10,630 24,948 7,680 $1,229 $1,256 $1,328 $1,380 $1,446 $39,328 $37,680 $13,280 $30,360 $8,676 $471,936 $452,160 $159,360 $364,320 $104,112 $1.27 $1.27 $1.25 $1.22 $ ,039+/- 103,904+/- $1,293 $129,324 $1,551,888 $1.24 Westwind Duplexes 10 3 Bed / 2 Bath 1,042 10,420 $1,299 $12,990 $155,880 $ Bed / 2 Bath 1,096 8,768 $1,370 $10,960 $131,520 $ Bed / 2 Bath 1,097 10,970 $1,370 $13,700 $164,400 $ Bed / 2 Bath 1,130 11,300 $1,378 $13,780 $165,360 $ Bed / 2.5 Bath 1,175 11,750 $1,399 $13,990 $167,880 $ Bed / 2.5 Bath 1,180 4,720 $1,407 $5,628 $67,536 $ ,114+/- 57,928+/- $1,366 $71,048 $852,576 $1.23 Combined Averages & Totals 152 1,065+/- 161,832+/- $1,318 $200,372 $2,404,464 $1.24 NOTES TO PRO FORMA: *Cap Ex / Replacement Reserves shown are Industry Averages Square footage is approximate. Muskin Commercial, LLC makes no representations or warranties regarding the square footages and has not independently verified this information.

5 INCOME PRO FORMA ANALYSIS STABILIZED UNDERWRITING Mar 2016 YTD Rent Annualized / 2015 Expenses Year End 2015 SCHEDULED MARKET RENT $2,404,464 Less: Loss to Lease 3.00% ($72,134) Less: Vacancy 4.00% ($96,179) Less: Concessions 0.25% ($6,011) Less: Rent Write Off 0.50% ($12,022) NET RENTAL INCOME $2,218,118 $2,083,798 $1,970,827 Plus: Fee Income $85,000 $81,880 $82,765 Plus: RUBS Income $3,500 $5,874 $3,084 Plus: Other Income: Pet, Commission, Mo-to-Mo $38,500 $18,266 $34,683 TOTAL OPERATING INCOME (EGI) $2,345,118 $2,189,818 $2,091,360 EXPENSES PER UNIT 2015 Expenses Administrative $66 $10,000 $9,510 $9,510 Advertising & Promotion $118 $18,000 $20,543 $20,543 Payroll $900 $136,800 $104,688 $104,688 Repairs & Maintenance $500 $76,000 $102,143 $102,143 Management Fee (3.00%) $704 $70,354 $62,730 $62,730 Utilities $112 $17,000 $16,364 $16,364 Contracted Services $342 $52,000 $52,608 $52,608 Real Estate Taxes ( %) $3,054 $464,256 $341,948 $341,948 Insurance $325 $49,400 $50,382 $50,382 Replacement Reserve/Cap Ex* $300 $45,600 $45,600 $45,600 Total Expenses $939,410 $806,532 $806,532 Per Unit $9,394 $8,065 $8,065 Net Operating Income Per SF $9.04 $1,405,708 $7.76 $1,383,287 $7.76 $1,284,829 NOTES TO PRO FORMA: *Cap Ex / Replacement Reserves shown are Industry Averages Square footage is approximate. Muskin Commercial, LLC makes no representations or warranties regarding the square footages and has not independently verified this information.

6 Round Rock Highlights The US Census Bureau named Round Rock the 2nd Fastest Growing City in the United States among cities over 100,000 Nearly 40% of residents have a Bachelors Degree or higher Austin-Round Rock-San Marcos ranked #1 for Forbes Fastest Growing City Median household income is $71,281 Experienced a 13.52% Population Growth from Within 50 miles of Round Rock, more than 100,000 students are enrolled in 17 universities and 75,000 in 10 community colleges / technical schools Williamson County ranked No.10 County in the U.S. where wealthy people are moving Round Rock ranked among The Best Cities for Living the American Dream Round Rock ranked No.4 Best Affordable Places to Live Williamson County ranked No.15 in Country for private sector tech job gains Sources: Round Rock Chamber of Commerce and the Round Rock Economic Department Dell Computer The Round Rock IKEA Premium Outlets Dell Diamond *Photos courtesy of Chisholm Valley & Westwind Duplexes 152 Total Units

7 Major Employer Map - Round Rock North Austin Chisholm Valley & Westwind Duplexes Employer No. in Area Employer No. in Area Dell 13,000 Emerson 875 IBM 6,000 Farmers Insurance Group 850 Apple 5,000 Harte Hanks 800 Applied Materials 3,100 Xerox 778 Na onal Instruments 2,575 Ac vision Blizzard 700 Samsung 2,517 Cisco Systems 684 Flextronics 2,200 American Cancer Society 650 Time Warner Cable 1,765 Visa 650 General Motors 1,600 Wayne Fueling Systems 635 Hospira 1,500 Liquida on Channel 600 Sears Customer Care 1,500 Pearson Assessments 600 State Farm Insurance 1,397 Q2 512 Charles Schwab 1,100 ebay 500 Hewle Packard 1,100 Google 500 Oracle 1,100 TG 500 URS 1,083 Luminex Source: Aus n Chamber

8 Major Employer Map Chisholm Valley & Westwind Duplexes

9 Major Employers

10 Neighborhood Overview Retail Round Rock Premium Outlets La Frontera Village Sprouts Farmer s Market Cost Plus World Market IKEA Lakeline Mall Home Depot REI Outdoor Sports Store Neiman Marcus The Domain Academy Sports & Outdoors Walmart PetSmart and Petco Randall s Grocery Store HEB Plus Grocery Store Sam s Club Target Barnes & Noble Bookstore Office Depot Best Buy Sephora Chisholm Valley & Westwind Duplexes Round Rock Easy Access Via: Interstate Highway 35 US Highway 79 Main Street S.A.W. Grimes Boulevard 130 Toll Road 45 Toll Road 1 Toll Road Area Employers Dell Computers Simon Malls Baylor Scott & White Hospital Cisco Emerson Accenture Google State Farm Insurance Visa Hewlett Packard IBM Oracle Corp. Samsung National Instruments Apple, Inc. Seton Medical Center Round Rock Medical Center EA Sports Abbott Labs Charles Schwab Ebay Universities & Satellite Campuses Southwestern University Texas State - Round Rock Campus Texas A&M Health Science Center Austin Community College (ACC) Central Texas Beauty College South University - Austin Campus The University of Texas at Austin Restaurants & Entertainment The Salt Lick The Dell Diamond Louisiana Longhorn Café Flix Brewhouse & Cinema Main Street Grill Deutsch Friesenhahn Fine Art Pacific Oyster Bar Little Red Wagon Hamburgers In-N-Out Burger Szechuan Garden Round Rock Donuts The Yoga Room HomeField Grill Zorba Greek Restaurant Plucker s Wing Bar Sam Bass Community Theater Salt Grass Steak House Cinemark Movie 8 Parks Old Settlers Park Round Rock West Park Lake Creek Park Greenslopes II Park Memorial Park Round Rock Dog Park Clay Madsen Park Kinningham Park RRISD Schools Bluebonnet Elementary School Chisholm Trail Middle School Round Rock High School

11 Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Muskin Commercial,LLC ellenm@muskincommercial.com (512) Licensed Broker/Broker Firm Name or Primary Assumed Business Name License No. Phone Ellen Muskin ellenm@muskincommercial.com (512) Designated Broker of Firm License No. Phone Ellen Muskin ellenm@muskincommercial.com (512) Licensed Supervisor of Sales Agent/ Associate License No. Phone Daniel Elam daniel@muskincommercial.com (512) Sales Agent/Associate's Name License No. Phone Buyer/Tenant/Seller/Landlord Initials Date Regulated by the Texas Real Estate Commission Information available at TAR 2501 IABS 1-0 Muskin Commerical, LLC, 4705 Spicewood Springs Rd, Ste 200 Austin, TX Phone: (512) Fax: (512) IABS Ellen Muskin Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan

12 Muskin Commercial, LLC has prepared this brochure to provide summary information to prospective purchasers and makes no warranty or representation about the content. While this information has been obtained from sources believed to be reliable; Muskin Commercial, LLC has not conducted any investigation regarding these matters and prospective purchasers should independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are examples only and do not necessarily represent the current or future performance of the property. This brochure does not constitute an offer of sale, but is merely an invitation to bid. MULTIFAMILY INVESTMENTS SALES Ellen Muskin Daniel Elam (512) Ph