THE LEGACY APARTMETS A 70-unit Value-Add Multifamily Investment Opportunity in Houston, Texas Offering Brochure
IVESTMET HIGHLIGHTS Extraordinary infill location within 4 miles of Houston s Central Business District with over 150,000 employees and 11 Houston Fortune 500 Company Headquarters Proximity to the Houston Ship Channel, part of the Port of Houston, which ranks first in the U.S. in International waterborne tonnage & 10th largest in the world Surrounding rental comparables are achieving $1.00 to $1.32 per SF in market rents, providing a new owner significant rental upside which are currently $0.96 per SF at the subject Excellent value-add opportunity to increase revenue through exterior and interior upgrades Convenient location with frontage on Lockwood Dr., 2 miles east of Highway 59 and less than a mile south of Interstate 610 Located within Houston s Inner Loop East submarket which experienced annualized rental increases of (7.0%) over the past 12 months and occupancy (10.4%) growth in the past three months Property is a recent foreclosure Available All Cash
THE LEGACY APARTMETS
PROPERTY DETAILS PROPERTY The Legacy Apartments PRICE $1,750,000 PRICE PER UIT $25,000 PRICE PER SF $36.19 TERMS ADDRESS All Cash 3905 Lockwood Dr. Houston, Texas 77026 UITS 40 30 YEAR BUILT 1970 1965 COMMUITY AMEITIES 4515 Lockwood Dr. Houston, TX 77026 OCCUPACY (OV 2014) 75%(physical), 87%(leased) 66%(physical), 80% (leased) ET RETABLE SF 27,350 21,000 STORIES/ BUILDIGS 2 / 5 2 / 3 LOT SIZE 0.75 acres 0.68 acres DESITY 53.3 units / acre 44.1 units / acre TOTAL UITS 70 COMBIED AVG. UIT SIZE 691 COMBIED AVG. RET/UIT COMBIED AVG. RET/SF $664 ()/$698 (Proforma) $0.96 ()/$1.01 (Proforma) Laundry Room (3 washers, 4 dryers) Storage Garage Onsite Mini- Office Proximity to neighborhood schools and parks Proximity to major shopping, entertainment and employment centers ITERIOR FEATURES Frost Free Refrigerator Ceiling Fans Pantries Tile Entryway Mini-blinds Walk-In Closets Laminate Wood Flooring Coat Closets Linen Closets Baseboards Two Tone Paint
SITE IFORMATIO ADDRESS: 3905 & 4515 Lockwood Dr. Houston, Texas 77026 PROPERTY: s 70 Total Rentable SF 48,350 Year Built 1965/1970 # of Buildings 8 Avg. SF 691 Stories 2 Avg. $664 Lot Size (acres) 1.43 Avg. SF $0.96 Density (units / acre) 48.95 COSTRUCTIO: Style Garden-style Foundation Concrete Slab Framing Wood Exterior Brick Veneer and Wood Roof Flat, Torch Down Paving Asphalt Wiring Aluminum HVAC Individual ground-mounted units / Window units Plumbing Galvanized SCHOOLS: School District Houston I.S.D. Elementary Kashmere Garden Elementary Middle Simmons Middle School High Barbara Jordan High School Electrical HVAC Water Gas UTILITIES: Hot Water Heating Method RUBS PROPERTY STAFF: Individually metered Individual climatecontrolled units Individually metered 30 gallon units Gas heated water 1 Central Boiler one Property Manager (full-time) 1 Lead Maintenance Tech 1 TOTAL 2 DEPOSITS/OTHER FEES: Application Fee (non-refundable) $25 per applicant Efficiency $300 1 Bedroom Deposit $300 2 Bedroom Deposit $400 3 Bedroom Deposit $400 Pet Deposits (refundable) $300 ($150) Pet Rent Monthly Charge $10 Restrictions Pet weight limit 1 pet, no agressive breeds 10 lbs. Spaces Garages PARKIG: 76 uncovered, 4 handicap /A
PROFORMA AUAL MOTHLY PER UIT PER SF Gross Potential Rent $585,900 $48,825 $8,370 $12.12 Loss/Gain to Lease 2.00% (11,718) (977) (167) (0.24) Adjusted Gross Potential Rent 574,182 47,849 8,203 11.88 Vacancy Loss 8.00% (45,935) (3,828) (656) (0.95) Concessions 4.00% (22,967) (1,914) (328) (0.48) Bad Debt 2.00% (11,484) (957) (164) (0.24) Total Rental Income 493,797 41,150 7,054 10.21 Other Income 14,000 1,167 200 0.29 Effective Gross Income 507,797 42,316 7,254 10.50 Operating Expenses Payroll & Benefits 56,000 4,667 800 1.16 General & Administrative 8,750 729 125 0.18 Repairs & Maintenance 28,000 2,333 400 0.58 Contract Services 15,750 1,313 225 0.33 Advertising & Promotion 8,050 671 115 0.17 Controllable Expenses 116,550 9,713 1,665 2.41 UIT MIX Description # of s % of Total Avg SF SF Efficiency 1 1.4% 400 $550 $1.38 1Bed 64 91.4% 675 $650 $0.96 2Bed 3 4.3% 850 $850 $1.00 3Bed 2 2.9% 1,100 $900 $0.82 Totals/Avg 70 100% 691 $664 $0.96 UIT MIX CURRET MARKET PROFORMA Efficiency 1 1.4% 400 $578 $1.44 1Bed 64 91.4% 675 $683 $1.01 2Bed 3 4.3% 850 $893 $1.05 3Bed 2 2.9% 1,100 $945 $0.86 Totals/Avg 70 100% 691 $698 $1.01 Utilities 63,000 5,250 900 1.30 Insurance 28,000 2,333 400 0.58 Management Fee 20,312 1,693 290 0.42 Gross Receipts Tax 2,920 243 42 0.06 Property Taxes 43,291 3,608 618 0.90 Operating Expenses Before Reserves (274,073) (22,839) (3,915) (5.67) Replacement Reserves 21,000 1,750 300 0.43 Total Operating Expense (295,073) (24,589) (4,215) (6.10) ET OPERATIG ICOME $212,724 $17,727 $3,039 $4.40 PROFORMA OTES 1. Gross Potential Rent is per the Proforma rent schedule shown above 2. Other Income is estimatd at $200 per unit 3. Management Fee is based on 4.00% of Effective Gross Income 4. Property Taxes based on 100% of the 2014 tax value at the 2014 tax rate 5. Replacement reserves are estimated to be $300 per unit and do not reflect actual capital expenditures TAX IFORMATIO Appraisal District Harris County 2014 Tax Rate 2.570649% Account # 0651250310779 1151370000017 Property Address 3905 Lockwood Dr. 4515 Lockwood Dr. TOTALS Land $32,500 $30,000 $62,500 Improvements $908,730 $712,830 $1,621,560 Total 2014 Tax Value $941,230 $742,830 $1,684,060 Disclaimer: The proforma is delivered only as an accomodation and neither Seller, Transwestern nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such proforma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the proforma.
RET COMPARABLES THE LEGACY APARTMETS 6 5 Property Type Total s Avg EFF 1 400 $550 $1.38 3 3905 & 4515 Lockwood Dr. 1 BR 64 675 $650 $0.96 2 Houston, TX 77026 2 BR 3 850 $850 $1.00 Built: 1965/1970 3 BR 2 1,100 $900 $0.82 Occupancy: 71% 4 1 Property Cleme Manor Apartments Totals/Avg 70 691 $664 $0.96 Type Total s Avg LOCK Property Type Total s 1 Avg 5300 Coke St. 1 BR 24 584 $530 $0.91 4 Rose Plaza Houston, TX 77020 2 BR 112 740 $659 $0.89 3031 Sumpter St. 1 BR 37 502 $745 $1.48 Built: 1975 3 BR 120 920 $815 $0.89 Houston, TX 77026 2 BR 38 1,000 $633 $0.63 Occupancy: 98% 4 BR 24 1,050 $952 $0.91 Built: 1962 5 BR 4 1,180 $1,005 $0.85 Occupancy: 99% Totals/Avg 284 835 $744 $0.89 Totals/Avg 75 604 $796 $1.32 2 Collingsworth 5 Royal orth Apartments 2828 Collingsworth St. #57 1 BR 73 620 $625 $1.01 4526 Weaver Rd. 1 BR 42 623 $690 $1.11 Houston, TX 77026 2 BR 66 728 $725 $1.00 Houston, TX 77016 2 BR 43 763 $825 $1.08 Built: 1964 Built: 1973 Occupancy: 99% Occupancy: 82% Totals/Avg 139 671 $672 $1.00 Totals/Avg 85 694 $758 $1.09 3 Lockwood Landing 6 Silver Glen 4712 Lockwood Dr. 1BR 103 541 $559 $1.03 7601 Curry Rd. 1 BR 36 585 $700 $1.20 Houston, TX 77026 2 BR 48 753 $520 $0.69 Houston, TX 77093 2 BR 60 810 $830 $1.03 Built: 1970 3 BR 1 820 $807 $0.98 Built: 1972 3 BR 60 990 $935 $0.94 Occupancy: 97% Occupancy: 99% 4 BR 4 1,125 $1,050 $1.01 Totals/Avg 152 610 $548 $0.90 Totals/Avg 160 835 $846 $1.01 DEMOGRAPHICS (Population) SUBMARKET Radius 1 Mile 3 Mile 5 Mile Inner Loop East 2019 Projection 14,212 105,389 309,531 Occupancy +10.4% (annualized) in last 3 months 2014 Estimate 13,102 98,314 289,053 Rental Rates +7.0% (annualized) in last 12 months 2010 Census 12,269 94,773 281,467 Absorption +233 units in 2014 (2.77% of submarket) Growth 2014-2019 8.47% 7.20% 7.08% Occupancy Class A: 86.2%, Class B: 96.3%, Class C: 90.8%, Class D: 96.1% 2014 Avg Household Income $32,012 $37,958 $52,259 Averages Size: 822 SF Eff. Rent: $1,012 Eff. Rate: $1.23
THE LEGACY APARTMETS Hammerly Blvd 59 610 45 Hammerly Blvd San Felipe Westheimer Rd onn et S t Fondren Rd BARBARA JORDA HIGH SCHOOL St 610 Air tb lvd Hobby Airport 610 Air por tb lvd Hobby Airpor a Rd HUTCHESO PARK MCCRAE KASHMERE GARDES LIBRARY LOCKWOOD DR. 30 units CAVALCADE ST. CRAE ST. THE LEGACY APARTMETS 3905 40 units TUFFY PARK COLLIGSWORTH ST. FLEMIG MIDDLE SCHOOL D. TY R BER HOMESTEAD RD. KASHMERE GARDES ELEMETARY 4515 (LESS THA 4 MILES SOUTH) por 45 90 LYDO B. JOHSO 90 GEERAL HOSPITAL METROPOLITA TRASIT AUTHORITY (METRO) HOUSTO CBD 45 Mykaw 10 a Rd s Bis net 10 Mykaw 40 units son Fondren Rd LOCKWOOD DR. Bis Houston CBD Houston CBD San Felipe Westheimer Rd 45 10 Memorial Park S Voss Rd 3905 Lockwood Dr. 610 10 Lockwood Dr. S Voss Rd 30 units Memorial Park 59 Lockwood Dr. LOCKWOOD DR. 4515 Lockwood Dr. UIO PACIFIC RAILROAD EGLEWOOD YARD (1,500 RAILCARS / DAY) LI LIBERTY RD. WALLISVILLE RD. FOR MORE IFORMATIO, PLEASE COTACT: Lupe Olivares Assistant Vice President 713.272.1290 lupe.olivares@transwestern.com Ed Cummins Senior Vice President 713.272.1288 ed.cummins@transwestern.com April Darner Transaction Manager 713.272.1276 april.darner@transwestern.com 1900 West Loop South, Suite 1300 Houston, Texas 77027 T 713.270.7700 F 713.271.8172 www.transwestern.com The information provided herein was obtained from sources believed reliable; however, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice. Copyright 2014 Transwestern. 10-1035.0610. This offering is submitted and received with the understanding that all offers for the acquisition of the herein described property will be conducted through Transwestern. The Seller and Transwestern expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.