Treymont at sugarloaf Townhomes exclusive investment offering

Transcription

1 Treymont at sugarloaf Townhomes exclusive investment offering Greg Ratliff Mark Jensen Allen Eager, CCIM CBT Commercial Real Estate Atlanta, Georgia

2 TABLE OF CONTENTS Greater Atlanta Multihousing Optics 3 Property Overview 4 Property Highlights 5 Floor Plans / Unit Mix 6 Aerial Maps 7 Market Survey 8 Large Multihousing Community Market Survey 9 Financial Analysis 10 2

3 GREATER ATLANTA MULTIHOUSING OPTICS GREATER ATLANTA MULTIHOUSING OPTICS Atlanta has been fighting an uphill battle in dealing with high unemployment and excess housing, however, recent data shows the market is changing for the better. The Metro Atlanta area is positioned among the nation s leaders for job growth, which has resulted in average rent increases at 7.5% over the previous year. Previously mired in apartment occupancies approximating 93%, Metro Atlanta occupancies have increased to 94% and forecast to continue upward. Residential demand has steadily improved and long-term demand drivers are causing apartment absorption levels to remain solid. Indeed, the market is showing signs of life. Investor demand for multifamily communities in Metro Atlanta has increased markedly with Q sales volume at $811mm, which represents a 68% increase over the previous year with approximately $228mm in pending transactions. Average unit pricing through Q increased to $95,984, or approximately 24% primarily fueled by some notable transactions: Sorelle Apartments at Lindberg in Atlanta with 401 units, 2009 construction at over $163k/unit Grove at Buckhead in Atlanta with 168 units, 1998 construction at over $135k/unit Sugarloaf Crossing in Lawrenceville with 262 units, 2000 construction at over $119k/unit Inman Quarters in Atlanta with 200 Units, 2014 construction at $247k/Unit Average prices per unit by age of construction approximate: $113, $175,867 Some of the top Sellers in the Metro Atlanta market over the previous 24 months consist of Worthing Companies who have sold approximately 7 properties totaling $402MM, GE Capital who also sold 7 properties totaling $350mm, Gables Residential who sold 8 properties totaling $310mm and The Connor Group who sold 10 properties at over $308mm. Over that same timeframe, the top Buyers in Metro Atlanta have been CWS Capital Partners who acquired 6 properties at $316mm, Clarion Partners who acquired 8 properties at $310mm, Atlantic and Pacific Properties who acquired 10 properties at over $255mm and Carroll Organization who acquired 7 properties at $255mm. Average CAP Rates have decreased dramatically YTD 2015 to 6.1% over the previous period last year at 6.6%, and we project will continue to remain lower due to a plentiful pool of available Agency and Conventional debt at interest rates averaging in the 4% range, many with I/O periods. 3

4 PROPERTY OVERVIEW Property Address: Ivy Dale Lane Treymont Way Lawrenceville, Georga Property Age: 2014 Total Units: 16 Total Rentable Square Feet: 26,864 4

5 PROPERTY HIGHLIGHTS COMMUNITY FEATURES Large Plank Faux Hardwoods Upgraded Wheat Carpeting Custom Cabinetry Pantry in Kitchen Laundry Upstairs Custom Crown Molding Spacious Living Room Oversized Walk-in Closets Custom Paint Colors 2 Car Garages Attached Garden Bathtubs Private Patios Double Sink in Vanity In Select Units Separate Shower In Select Units Landscaping Included in Rent 24 Hour Emergency Maintenance Weekly Trash Service Minutes from the Shops at Webb Gin Close to Alexander Park, a 91 Acre Park with 18 Hole Disc Golf Course, Two Ponds and Fishing Docks 5

6 FLOOR PLANS / UNIT MIX Treymont at Sugarloaf Townhomes Plan C 2 Bed / 2.5 Bath 1,600 SF Plan G 2 Bed / 2.5 Bath 1,698 SF Plan D 3 Bed / 2.5 Bath 1,700 SF Plan E 3 Bed / 2.5 Bath 1,776 SF NAME UNIT TYPE NO. OF UNITS UNIT SIZE Plan C 2 Bed / 2.5 Bath 4 1,600 Plan G 2 Bed / 2.5 Bath 6 1,698 Plan D 3 Bed / 2.5 Bath 5 1,700 Plan E 3 Bed / 2.5 Bath 1 1,776 6

7 AERIAL MAPS Treymont at Sugarloaf Townhomes N N Iv yd ale Lane Scen ic Highw ay Treymon t L ane Ivydale Ci rcl e Gwinnett County Fairgrounds Sugarloaf Park way Alexander Park Treym on t Way Sugarlo a f Parkway 7

8 MARKET SURVEY Treymont at Sugarloaf Townhomes PROPERTY UNIT TYPE UNIT SF RENT RENT PSF NOTES SUBJECT PROPERTY Treymont Townhomes 2595 Sugarloaf Parkway Lawrenceville, GA.5 - Townhome.5 - Townhome.5 - Townhome.5 - Townhome 3x2.5 - Townhome 3x2.5 - Townhome 1,698 1,698 1,698 1,600 1,700 1,776 $1,250 $1,290 $1,295 $1,295 $1,395 - $1,420 $1,490 $0.74 $0.76 $0.76 $0.81 $ $0.83 $0.84 Pet Fee: $300 Under 50 lbs., $500 Over 50 lbs. Pet Rent: $10 WST: $69 Utilities: Tenant Responsible Parking: 2 Car Garage Included in Rent Occupancy Rate: 100% 2281 Hawks Bluff Trl.5 Townhome 1,712 $1,195 $0.70 Year Built: 2003 Parking: 1 Car Garage Included in Rent Lease Includes: HOA Fee Advertized: Trulia.com - has been rented *We have placed telephone inquiries on several occasions and have not received any response to date. 343 Oaktown Place 3x2 Townhome 1,800 $1,350 $0.75 Year Built: 2006 Parking: 2 Car Garbage Included in Rent Advertized: Realtor.com *We have placed telephone inquiries on several occasions and have not received any response to date Pierce Brennen.5 Townhome 1,684 $1,225 $0.72 Lease Includes: HOA Trash Services Lawn Maintenance Swimming Pool Tennis Courts Pet Fee: $500 *We have placed telephone inquiries on several occasions and have not received any response to date Oakland Downs Way 3x2.5 Townhome 1,752 $1,250 $0.71 Year Built: 2006 Parking: 2 Car Garage Included in Rent Application Fee: $40 Pets: No Pets Allowed Advertized: Realtor.com *We have placed telephone inquiries on several occasions and have not received any response to date. 8

9 LARGE MULTIHOUSING COMMUNITY MARKET SURVEY PROPERTY UNIT TYPE UNIT SF RENT RENT PSF NOTES Villas at Sugarloaf Apartments 4975 Sugarloaf Parkway 3x2 3x2 w/garage 1,186 1,491 1,540 $1,218 - $1,673 $1,251 - $1,704 $1,380 - $1,838 $ $1.41 $ $1.14 $ $1.19 Pet Fee: $600, $100 Refundable Pet Rent: $10 WST: Billed on Usage Utilities: Tenant Responsible Parking: $0 Media Package: Cable included in Rent Occupancy Rate: 95% Durant at Sugarloaf Apartments 50 St. Marlowe Drive 3x2 1,110 1,180 1,300 1,362 1,435 $942 - $964 $940 $994 - $1,009 $1,024 - $1,049 $1,118 $ $0.86 $0.80 $ $0.78 $ $0.77 $0.77 Pet Fee: $350 for 1 Pet, $500 for 2 Pets Pet Rent: $10 WST: Billed on Usage Utilities: Billed on Usage Parking: $0 Occupancy Rate: 97% Pest Control: $3 Holland Park Apartments 1175 McKendree Church Road Lawrenceville, GA x2 1,100 1,440 $965 $1,225 $0.87 $0.85 Pet Fee: $300 for 1 Pet, $500 for 2 Pets Pet Rent: $0 WST: Billed on Usage Utilities: Tenant Responsible Parking: Open Parking Occupancy Rate: 96% A review of competing rental townhomes within a five-mile radius of the Subject Property indicates the market competition is approximately 9-12 years older with lower rents and rents per square foot for comparable floor plans averaging 1,732 SF. Allowing pets at the Subject Property provides additional revenue, however, we recommend charging a higher monthly Pet Rent in the range of $25-$35. We have also surveyed three large Class-A multihousing communities within the Lawrenceville submarket as a comparison. While the Subject Property lacks the community amenities featured at the multifamily competitors, the rents for larger two and three bedroom flats were slightly lower with the exception of the three bedroom two bath with garage at Villas at Sugarloaf. 9

10 FINANCIAL ANALYSIS - BUDGET FINANCIAL INDICATORS Price: $2,490,000 Down Payment: $498,000 Down Payment %: 20% Cap Rate: 6.89% Price Per S.F.: $92.69 Price Per Unit: $155, Budgeted Expenses/Unit: $5,692 PROPERTY ABSTRACT Number of Units: 16 Year Built: 2014 Rentable S.F.: 26,864 Occupancy: 100% Arbor Freddie Mac NEW FIRST LOAN 1st Loan: $1,992,000 Rate (Years 1-3 I/O): 4.85% Term: EXPENSES 30 Years Annual Payments (Years 1-3): $96,612 Annual Payments (Years 4-10): $126,139 Repairs & Maintenance: $8,000 Marketing: $2,770 Management Fees: $14,400 HOA Fees: $24,240 Reserves: $8,000 Insurance: $9,488 Real Estate Taxes: $24,180 TOTAL EXPENSES: $91,079 SOURCE OF INCOME - BUDGET Gross Rental Income Current: $249,420 Utility Reimbursement: $13,194 TOTAL OPERATING INCOME: $262,614 CURRENT OPPERATING INFORMATION Total Rental Income: $262,614 Expenses: $91,079 Net Operating Income: $171,535 Less Debt Service (Years 1-3): $96,625 Less Debt Service (Years 4-10): $126,139 Cash Flow (Years 1-3): $74,910 Cash Flow (Years 4-10): $45,396 Year 1 Cash on Cash: 15.04% 10