64 Unit. Class C Asset. Located in Beaumont Texas

Transcription

1 64 Unit Class C Asset Located in Beaumont Texas

2 Apartments For Sale $1,888,000 Price Per Unit $29,500 Units: 64 Price Per Sq. Ft. $39.66 Avg Size: 744 Stabilized NOI $179,145 Date Built: 1972 Value 8.5% $2,107,589 Rentable Sq. Ft.: 47,600 Acreage: 2.53 Occupancy: 86% Class: C HIGHLIGHTS Great Area Job Base Upgrades to the Property in the Last 3 Years Include: Good Drive-by and Curb Appeal A/C's, Roofs, Ceramic Tile, HardiPlank Siding, A/C Cages Property has been Rehabbed Please note that Alabama Gardens consist of 3 addresses: Beaumont is a Strong Petrochemical Based Market 1095 Alabama St. 16 Units Well Maintained Smaller Asset in a Strong Area 1135 Alabama St. 25 Units Located in Beaumont, Texas Approx 90 Miles East of Houston 4905 Wyatt St. 23 Units Ideal for long term hold Lamar University is Slowly buying all the Real Estate Adjacent Area Benefits From the Texas Gulf Coast Economic Boom to the Campus Student Housing Component - on Lamar University Campus PLEASE DO NOT VISIT THE PROPERTY OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER! For More Information Please Contact: Hashir Saleem, Senior Associate hashir@ketent.com l l ext 106 KET ENTERPRISES INCORPORATED 4295 San Felipe l Suite 355 l Houston, TX Broker License #

3 Physical Information Financial Information Projected Loan Parameters Operating Information Number of Units 64 Asking Price $1,888,000 Proposed Loan at 70% $1,321,600 Est Mkt Rent (Sep-14) $33,450 Avg Unit Size 744 Price Per Unit $29,500 Amortization (months) Mo Avg $28,649 Net Rentable Area 47,600 Price Per Sq. Ft. $39.66 P & I $7,535 Physical Occ (Aug-14) 86% Land Area (Acres) 2.53 Stabilized NOI $179,145 Debt Service/year $90,416 Est Ins per Unit per Yr $370 Units per Acre Date Built Value 8.5% $2,107,589 Origination Date Due Date Closing 10 years Property Tax Information 2013 Tax Rate/$ Water Meter / Master Elec Meter Master Indiv Interest Rate Type 4.75% Conduit 2014 Tax Assessment Est 2014 Taxes $1,356,730 $36,491 Roof Style Pitched Yield Maintenance Yes Est Future Tax Assessment $1,765,000 HVAC System Indiv Est Future Taxes $47,472 INCOME PRO-FORMA INCOME Current Street Rent with a % Increase 401,400 Estimated Gross Scheduled Income 401,400 Estimated Loss to Lease (2% of Total Street Rent) (8,028) 2% Estimated Vacancy (8% of Total Street Rent) (32,112) 8% Estimated Concessions and Other Rental Losses (8% of Total Street Rent) (32,112) 8% Estimated Utilities Income Estimated Other Income 16,000 Estimated Total Rental Income ESTIMATED TOTAL PRO-FORMA INCOME MODIFIED ACTUALS Apr thru Aug 2014 Income Annualized $343,784 1 PRO-FORMA EXPENSE Jan thru Jul 2014 Expenses Annualized Estimated Future Expenses Fixed Expenses Fixed Expenses Taxes $36,491 $570 per Unit 2013 Tax Rate & 2014 Assessment $47,472 $742 per Unit Estimated Fixed Expenses Insurance $23,633 $369 per Unit $23,680 $370 per Unit $33,450 / Mo $33,450 / Mo 114,745 $1,793 / Unit / Yr $250 / Unit / Yr 459,893 $38,324 / Mo 2013 Tax Rate & Est Future Assessment Total Fixed Expense 60,125 71,152 Utilities Utilities Estimated Utilities Electricity $1,071 $17 per Unit $4,480 $70 per Unit Gas $ per Unit $ per Unit Water & Sewer $9,110 $142 per Unit $36,480 $570 per Unit Estimated * per unit -; per ft - $939 per Unit $1,112 per Unit Total Utilities 10,181 $159 per Unit 40,960 $640 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing Repairs & Maintenance Labor Costs Contract Services $12,800 $32,000 $41,600 $3,722 $200 per Unit $500 per Unit $650 per Unit $58 per Unit 2. Adjusted by Broker 2. Adjusted by Broker 2. Adjusted by Broker $16,640 $32,000 $70,400 $12,000 $260 per Unit $500 per Unit $1,100 per Unit $188 per Unit Management Fees $13, % $215 per Unit 3. Added by Broker $18, % $287 per Unit Total Other Expense 103,873 $1,623 per Unit 149,436 $2,335 per Unit Total Operating Expense 174,179 $2,722 per Unit 261,548 $4,087 per Unit Reserve for Replacement 19,200 $300 per Unit 19,200 $300 per Unit Total Expense 193,379 $3,022 per Unit lower than normal 280,748 $4,387 per Unit Net Operating Income (Actual Underwriting) 150, , ,893 Asking Price Cap Rate Proposed Debt Equity Proposed Debt Service Cash Flow Cash on Cash 1,888,000 1,888, % 9.49% 1,321,600 1,321, , ,400 90,416 90,416 59,989 88, % 15.67% NOTES: ACTUALS: Actuals are from Owner's Jan thru July 2014 operating statement. Reserve for Replacement estimated on actual and pro forma at $300/unit/year. 1. Per Owner, total income includes late fees, application fees, vending, etc.; however, there is no line item for miscellaneous income. 2. Parkway Apartment pays the bulk of property labor and maintenance charges, therefore an adjustment to these accounts has been made by the broker. 3. Management fees were added by the broker. PRO FORMA: Insurance is estimated. Taxes are 2013 rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 10/1/2014 AlabamaGarden.xlsx

4 PROPERTY INFORMATION Age: 1972 Year Renovated: 2010 PROPERTY OVERVIEW TAXING AUTHORITY JEFFERSON COUNTY ACCT ID Elec Meter: A/C Type: Indiv HVAC Water: Master Beaumont ISD $ Wiring: Copper City of Beaumont $ Roof: Pitched Port of Beaumont $ Paving: Concrete SabineNeches NAV Drainage $ Materials: Brick/HardiPlank Drainage District #6 $ # of Stories: 2 Jefferson County $ Parking: 383 Spaces Buildings: Tax Rate/$100 $ Units/Acre: Tax Assessment $1,356,730 COLLECTIONS 5 Mo Avg $ 28,649 Sep 2013 $ 24,616 Oct 2013 $ 24,616 Nov 2013 $ 24,616 Dec 2013 $ 24,616 Jan 2014 $ 23,699 Feb 2014 $ 27,075 Mar 2014 $ 28,530 Apr 2014 $ 32,684 May 2014 $ 29,131 Jun 2014 $ 26,749 Jul 2014 $ 27,797 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Aug 2014 $ 27,001 PLEASE DO NOT VISIT THE SITE OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. Sep 2013 Oct Nov Dec Jan Feb Mar Apr May Jun 2014 Jul Aug Please note that Alabama Gardens consists of 3 addresses: Alabama St. 25 units Alabama St. 16 units Wyatt St. 23 units PROPERTY HIGHLIGHTS A lease up opportunity, Alabama Gardens is a 64 unit garden style apartment complex, located on Alabama Avenue in Beaumont, TX. The property provides a playground, covered parking and patios/balconies. The project is across from Lamar University and maintains a strong occupancy while school is in session. The owner has recently painted the exterior and replaced wood siding with Hardi Plank. The asset historically maintains high occupancy due to its close proximity to the nearby University. The project appears to be in very good condition. Currently there is no utility RUBS. A water/sewer RUBS could be implemented for additional income. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.

5 Unit Mix September 2014 Type No. Units Sq Ft Total SqFt Rent Total Rent Rent/SF Source: Owner 1BR / 1BA ,000 $500 $25,000 $0.71 2BR / 1BA ,700 $600 $7,800 $0.67 2BR / 1BA $650 $650 $0.72 Total / Avg ,600 $523 $33,450 $0.70 UNITS BY SIZE UNITS BY TYPE ea 1BR / 1BA 14 ea 2BR / 1BA Apartment Features Spacious Floorplans Ceramic Tile Flooring Convenient Laundry Room Large bedrooms with Natural Sunlight Ample Closet and Storage Space Central Air Conditioning Full Size Refrigerator Garbage Disposal Dishwasher Ceiling Fans Community Features Conveniently Located to Nearby University Excellent Frontage Convenient Access to Freeway Across From Lamar College

6 RENT COMPARABLES - September 2014 Property Name Year Built Occ #Units Avg SF Avg Rent P/SF 1 Parkdale Place 4165 Crow Rd % $ University Place 755 E Florida Ave % $ Parkdale Plaza 4215 Crow Rd % $ Ashley Square TH 2323 Evalon Ave % 47 1,300 $ Laurel Square TH 3720 Laurel % 21 1,200 $ Totals/Averages Comps % $ Alabama Garden 1135 Alabama Ave % $523 $

7 ALABAMA GARDEN 1135 Alabama Ave Beaumont, TX SALES COMPARABLES (Sorted by Price/Sq. Ft.) Property Name Date Sold Price Sq. Ft. Units Price/SF Price/Unit Built 1 Normandy Apartments 3800 Normandy Dr., Port Arthur 02/02/11 $3,850, , $27.85 $26, Dove Landing 2719 Avenue H, Nederland 03/28/12 $700,000 19, $35.51 $25, Carriage House 1803 Nederland Ave, Nederland 89/21/12 $2,650,000 70, $37.66 $31, Treadway Apts 3910 Treadway Road, Beaumont 09/20/12 $3,602,500 90, $39.83 $32, Avenue H 1924 Avenue H, Nederland, TX 10/29/13 $630,000 7, $88.21 $39, Totals/Averages Comps 06/20/12 $2,286,500 65, $45.81 $31, Alabama Garden 1135 Alabama Ave 4 $1,888,000 47, $39.66 $29,

8 Location

9 DIRECTIONS TO PROPERTY: From Downtown Houston Take I-10 East towards Beaumont. Merge onto US 287 by way of the Port Arthur exit. Exit MLK Parkway/Lamar University. Make a left onto MLK Pkwy. Take the ramp towards East Lavaca. Make a right onto Alabama AVe. The property is on the left..

10 Beaumont, Texas Beaumont The entire Beaumont area was changed on January 10, 1901, when the Lucas well at Spindletop blew in from a depth of 1,020 feet with oil gushing 200 feet into the air. This discovery began an era of prosperity for southeast Texas that influences the economy to this day. The oil boom days of the early 20th century have returned to southeast Texas with more than $12 billion in industrial projects planned, proposed or currently underway. These projects will add more than 15,000 new jobs to the Beaumont Economy. Beaumont, Texas is located on Interstate 10, just 90 miles east of Houston and 25 miles from the Louisiana border. Beaumont is a city in and county seat of Jefferson County, within the Beaumont Port Arthur Metropolitan Area. The city's population was 118,548 at the 2011 census. With Port Arthur and Orange, it forms the Golden Triangle, a major industrial area on the Gulf Coast. Beaumont is on Texas' coastal plain, about 30 miles inland from the Gulf of Mexico, and just south of the dense pine forests of East Texas. The city is bordered on the east by the Neches River and to the north by Pine Island Bayou. Home to Lamar University, Beaumont has a long history as one of the first major oil-producing cities in America. Oil was discovered at Spindletop on January 10, 1901, which became the first major oil field and one of the largest in American history. That heritage has shaped Beaumont as it grew from a small rice and lumber town to a major player in the oil industry. The city has a an incredible variety of historical buildings including the 1903 built First Baptist Church, now known as the Tyrrell Historical Library. Other architecture includes Jefferson Theater, Julie Rogers Theater and Edison Plaza soaring at 254 feet. The city boasts about its historic Crockett Street Entertainment District located downtown. The District offers everything from the Spindletop Restaurant to the Dixie Dance Hall, with a number of other dining places, clubs and bars to visit. Beaumont is the city known as Texas with A Little Something Extra. The Cajuns call it Lagniappe, meaning a little something extra, which pretty much describes Beaumont. The city's Bayou roots make it a combination of two colorful cultures; Texas with Bayou influences.. The petrochemical industry continues to drive economic growth in southeast Texas. Projects include the $2 billion Golden Pass LNG terminal and the $7 billion expansion of Motiva's Port Arthur refinery. The Motiva Port Arthur Refinery has recently completed an expansion that will allow the facility to process 325,000 extra barrels of crude oil per day. The $7 billion-plus expansion includes the installment of 600 miles of pipe, doubling the facility's processing capacity to the largest in the nation. Another prominent employer for the area is the federal Bureau of Prisons, which operates the Beaumont Federal Correctional complex in an unincorporated area in Jefferson County, near Beaumont. The correctional facilities employ approximately 5,000 individuals. Beaumont is not only a city with a rich heritage it is also a city which has seen dramatic change in recent years. Much of the economic growth has come from petrochemical, refinery and call center expansions, but commercial retail development and single-family construction have also increased. The city is ideally located on major highways and can be accessed via road, rail, air or water.

11 SUMMARY PROFILE Census, 2012 Estimates with 2017 Projections Calculated using Proportional Block Groups ALABAMA GARDEN 1135 Alabama St. Beaumont, TX Demographics Lat/Lon: / Mile Radius 3 Mile Radius 5 Mile Radius ALABAMA GARDEN 1135 Alabama St. Beaumont, TX Ethnicity - 1 Mile Radius 2012 Estimated Population 6,542 16,291 28, Projected Population 6,709 16,809 29,355 POPULATION 2010 Census Population 6,467 16,057 28, Census Population 5,070 15,887 29,478 Projected Annual Growth 2012 to % 0.6% 0.7% Historical Annual Growth 2000 to % 0.2% -0.3% 2012 Median Age % 8% 14% 26% White Black Asian Other Hispanic 2012 Estimated Households 1,800 5,409 9,612 53% 2017 Projected Households 1,942 5,837 10,365 EDUCATION BUSINESS INCOME RACE AND ETHNICITY HOUSEHOLDS (AGE 25+) 2010 Census Households 1,734 5,210 9, Census Households 1,828 5,593 10,189 Projected Annual Growth 2012 to % 1.6% 1.6% Historical Annual Growth 2000 to % -0.3% -0.5% 2012 Estimated White 25.6% 20.6% 20.0% 2012 Estimated Black or African American 53.2% 61.4% 61.0% 2012 Estimated Asian or Pacific Islander 8.0% 4.1% 3.5% 2012 Estimated American Indian or Native Alaskan 2.5% 1.5% 1.1% 2012 Estimated Other Races 10.8% 12.4% 14.4% 2012 Estimated Hispanic 14.0% 17.4% 20.7% 2012 Estimated Average Household Income $27,326 $33,065 $38, Estimated Median Household Income $25,833 $28,019 $30, Estimated Per Capita Income $14,220 $14,653 $16, Estimated Elementary (Grade Level 0 to 8) 8.5% 9.6% 10.0% 2012 Estimated Some High School (Grade Level 9 to 11) 15.0% 16.0% 17.1% 2012 Estimated High School Graduate 39.5% 37.9% 35.9% 2012 Estimated Some College 28.6% 25.1% 23.7% 2012 Estimated Associates Degree Only 2.7% 3.2% 4.0% 2012 Estimated Bachelors Degree Only 3.5% 5.5% 5.9% 2012 Estimated Graduate Degree 2.1% 2.7% 3.4% 2012 Estimated Total Businesses Estimated Total Employees 3,272 6,042 11, Estimated Employee Population per Business Estimated Residential Population per Business $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 14% 86% Average Income Subject - 1 Mile Radius $27,236 Subject $40,283 Beaumont Non- Hispanic Hispanic

12

13

14 EXCLUSIVELY PRESENTED BY KET ENTERPRISES INCORPORATED 4295 San Felipe, Suite 355 Houston, TX Tel: (713) Fax: (713) FOR MORE INFORMATION PLEASE CALL: PRIMARY CONTACT: HASHIR SALEEM Senior Associate (713) xt 106 Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (KET Enterprises Incorporated, any of the Owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any.