12 home sfr investment portfolio multiple top msas … · learn more about portfolio 100390 at...

SVN | SFRhub Advisors2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

As featured on SVN Live weekly broadcast-view at www.SVN.com

100% Occupied & Cherry-pickable!

12 HOME SFR INVESTMENT PORTFOLIO MULTIPLE TOP MSAs FL-PORTFOLIO 100390

OFFERING MEMORANDUM

VISIT WWW.SFRHUB.COM FOR MORE INFORMATION!

Jeff ClineSVN | SFRhub Advisors

Executive Director & Designated Broker 602.441.5354

[email protected]

Michael FinchSVN | SFRhub AdvisorsExecutive VP | Principal

[email protected]

Jerry Anderson, CCIMSVN | Florida Commercial Real Estate

AdvisorsExecutive Managing Director

[email protected]

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved P #0390V.1

PROPERTY SUMMARY

Offering Summary

PROPERTY DESCRIPTION

Property Overview

HIGHLIGHTS

Property Highlights

LOCATION OVERVIEW

Location Info

Regional Map

MARKET DATA

MSA Housing Market

US Housing Market

INVESTMENT OVERVIEW

Operating Pro Forma

Debt Overview

Financing Assumptions

DEMOGRAPHICS REPORT

ADVISORS BIO

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2 12 Home SFR Investment Portfolio Multiple Top MSAs FL

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors SVN | Florida Commercial Real Estate Advisors

Five Reasons We KNOW You’ll Benefit with SFRhub Today, We Are Unlike Anyone Else...

Research with clean and verified intelligent decision data. We use proprietary processes gathering data from a variety of sources to generate our exclusive verified Advanced SFR Scrub Report™, powered by top-ranked Automated Valuation Model* (AVM) data, verifying 25-35 data points on each individual home within a portfolio.

Buyers and sellers can optimize their acquisition/disposition profitability by reducing opportunity cost as a result of targeted research and “cherry-picking”capability.

The nation’s largest SFR/Build-For-Rent (BFR) portfolio, single source Live Acquisition Board, operating in all 50 states with access to over a million buyers and sellers.

With 200 offices in 500 sub-markets we are not just another listing site. We are a full service SVN commercial real estate brokerage.

We are buyer/seller direct. Providing seamless due diligence, inspection, escrow, and transaction management support with a fully licensed real estate team.

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Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors SVN | Florida Commercial Real Estate Advisors

PROPERTY SUMMARY

List Price:

Number of Homes:

Year I Cap Rate:

Year I NOI:

Avg. Home Size:

Market:

Sub-market:

Price/SF:

$4,022,000

12

5.32%

$213,808

2,732 SF

Florida

Miami, Tampa-St. Petersburg,

Jacksonville and Orlando

$123

OFFERING SUMMARY

**Pro Forma rates assume all homes are being operated at projected market rates.**


Home Type

3 Bdrms

4 Bdrms

5+ Bdrms

AverageSize/Type

2,346

2,729

2,938

Numberof Homes

1

9

2

AverageRent/SQ FT

$1.24

$0.84

$0.79

AverageMonthly Rent

$2,900.00

$2,302.78

$2,312.50


Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors

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SVN | Florida Commercial Real Estate Advisors

PROPERTY DESCRIPTION

PROPERTY OVERVIEW

Learn more about portfolio 100390 at SFRhub.com

This 12 home SFR investment portfolio is a great opportunity for any investor looking to build scale and/or entering the space, offering a turn-key, fully leased investment with a 100% occupancy rate and quality tenants. This portfolio is being offered by one of the largest SFR operators in the country and is just one of multiple portfolios exclusively listed on SFRhub.com with this Seller. Offering flexibility to maximize returns, this opportunity is fully ‘cherry-pickable’ and can be packaged with properties from additional portfolios to create a customized portfolio unique to your investment criteria and target markets.

This portfolio features rental homes

scattered throughout 4 of Florida’s top metros. The booming Orlando metro contains 3 of the homes, Jacksonville and Miami metro each have 1 home, and the remaining 6 homes are in Tampa-St. Petersburg metro.The homes in this portfolio are currently achieving strong market rents, averaging $2,255 per door. A new investor can increase rents to full market rates, a solid economic value add pushing rents 4.4%, achieving $2,354 on average for these properties.

Tampa’s rent growth is predicted to steadily increase over the next few years as well, according to John Burns Real Estate Consulting. Additionally, Orlando remains to be the nations top major markets for rent growth, with rents jumping about 3.1% over the last year and is expected to continue rising right along with the other hot MSAs in this region. This portfolio offers 9 - four-bedroom homes, 1 - three-bedroom home, and 2 - five-bedroom homes. All homes are equipped with attached garages and the majority are spacious 2-story homes. The average vintage for these homes is 2004 and all went through a thorough remodel

in 2013. All of these homes are located in desirable neighborhoods and top school districts, with almost all schools rated above an 8/10 according to GreatSchools.org.

Analysis by HotPads, a Zillow affiliate, shows stats that Tampa is the nation's eighth most popular rental market, outperforming the national market and other equatable markets including Phoenix, Charlotte, Austin and Nashville. Additionally, Jacksonville FL metro area has grown by an impressive 20% in the past decade, and continues to show increases, at a steady rate of 2% per year. It has a workforce that is expanding twice the national average, and is home to 4 Fortune 500 companies. Orlando is ranked by Forbes as the #1 city in the US for Real Estate Investments, and continues to be one of the countries fastest growing cities.



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PROPERTY HIGHLIGHTS

• Learn more about portfolio 100390 at SFRhub.com

• Orlando is ranked by Forbes as the #1 city in the US for Real Estate Investments

• Majority of homes are in Tampa, the nation’s 8th most popular rental market

• 100% occupancy rate throughout with quality & fully background-checked tenants

• Professionally managed & operated with institutional quality reporting

• Economic value add to increase rents 4.4% to market rates

• Current rents average $2,255 and can, projecting rent at $2354 on average

• All homes located within top school districts

• Newer homes, all remodeled & improved in 2013 for durability & comfort

• Operator has maintained homes in quality condition

8 Portfolio Name

HIGHLIGHTS



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LOCATION OVERVIEW

LOCATION INFO

Miami is a cultural, economic and financial center of South Florida, as it is a direct gateway to South America and Caribbean markets. Miami is a largely popular entryway for international trading activities, immigration tourism not only through ports but through airports alike. The Miami metropolitan area is home to 6.1 million residents, according to the United States Census Bureau. The Florida metro is largely known for having no local business or personal income taxes, which is in turn increases interest for growing businesses and increasing move-in traffic.

According to the U.S. Census Bureau, the Orlando metropolitan area had a population of 2,509,831 in 2017, making it the sixth-largest metropolitan area in the southern United States. Orlando, also known as the "Theme Park Capital of the

World", attracted more than 68 million visitors, who spent over $33 billion in 2016, according to the Orlando Economic Partnership. Orlando is currently undergoing $15 billion in infrastructure improvements, including the Interstate Highway I-4, expansions of both Orlando International Airport, and Orlando Sanford International Airport, a new commuter train and SunRail’s new southern routes to include new stations.

Jacksonville is the most populous city in Florida, the most populous city in the southeastern United States and the largest city by area in the contiguous United States. The Jacksonville MSA experienced an estimated population of 892,062 residents in 2017, creating an increase of 8.5% since 2010. Harbor improvements since the late 19th century have made Jacksonville a major military and civilian deep-water port, harboring riverine location facilitates

The four-county area (Tampa-St. Petersburg Metropolitan Statistical Area) is composed of roughly 3.1 million residents, making it the second largest MSA in the state, and the fourth largest


in the Southeastern United States. Several Fortune 1000 companies are headquartered in Tampa, including OSI Restaurant Partners, WellCare, TECO Energy, and Raymond James Financial. The MacDill Air Force Base is an active United States Air Force installation located 4 miles south-southwest of downtown Tampa, Florida. Tourism, manufacturing, construction, international banking, biomedical and life sciences, healthcare research, simulation training, aerospace and defense, and commercial space travel have contributed to the state's economic development.


REGIONAL MAP

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All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors

US HOUSING MARKET



In the U.S., rents in the lower rent tiers are increasing 4% YOY compared to higher rent homes at 3.4%. According to a recent Freddie Mac survey, about 50% of millennials prefer to continue renting while a surprising 72% of baby boomers would like to keep renting as well. Baby boomers tend to rent longer at approximately 8.4 years versus younger renters who rent for about 3.2 years.

The single-family rental demand is forecasted to continue strong through 2022 even with an expected modest recession. Nationally, rents rose 3.7% with Vegas, Phoenix and Orlando leading with the strongest YOY growth and Cincinnati and Houston fell behind. As tenants are sticking with REITs, they maintain 95% occupancy with strong 4% rent growth. Build-for-Rent gains big momentum with SFR investors as there is a strong demand among all generations, including baby boomers.

Nationally, the housing market will remain steady, benefitting from a slightly stronger economy and lower mortgage rates that have declined due to fears of an economic slowdown. A forecasted 2021 recession with a .4% job loss is a likely outcome. Nationally, housing affordability is worse than usual regardless to mortgage rates. For 2019, there will be over a 2% increase in home sales, however resale sales will drop 4% while resale prices increase by over 3%. Overall, entry-level homes continue to outperform as months of resale supply for high-priced homes (10 months) is at the highest it has been since 2013.

Across the country, there has been a 2% increase in new home sales and 3% in resale price appreciation in 2019. Slow price gains and new home construction are predicted as the economic expansion continues into its 11th consecutive year. Homebuilders’ active projects have

declined by 2% year over year as land, laws, labor and lending limit advancement. Housing affordability will continue during the next recession which has had an impact on builder sales.

*Source for U.S. Housing Market: John Burns Real Estate Consulting as of Q1 2019.


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US HOUSING MARKET GRAPHSThe information and data used in the graphs on this page has been provided by John Burns Real Estate Consulting as of April 2019. These are based on nationwide research on the SFR & BFR market.


INVESTMENT OVERVIEW

INVESTMENT OVERVIEW


Cap Rate - Stabilized

Gross Yield

Net Operating Income (NOI)

Leveraged IRR

Unleveraged IRR

Leveraged Cash-On-Cash

Number of Homes

List Price

List Price Per Home

List Price/SQFT

Current

5.13%

8.08%

$206,366

1.21%

Pro Forma

5.12%

8.43%

$205,889

1.17%

12

$4,022,000

$335,167

$123

Year 1; T-12

5.32%

8.68%

$213,808

19.82%

10.72%

1.82%

Year 3; T-36

5.73%

9.21%

$230,445

21.50%

11.22%

3.20%

Year 5; T-60

6.17%

9.77%

$248,206

23.28%

11.75%

4.67%



OPERATING PRO FORMA

DEBT OVERVIEW


Loan-To-Value Ratio

Interest Rate

Loan Amortization in Years

FINANCING ASSUMPTIONS

70.00%

5.50%

30

Annual Rent

Average Monthly Lease Rate (P.S.F.)

Vacancy

Operating Expenses

Net Operating Income (NOI)

Pro Forma

$339,000

$0.86

5.00%

$116,161

$205,889

Current

$324,780

$0.83

$118,414

$206,366

Year 1; T-12

$349,170

$0.89

5.00%

$117,904

$213,808

Year 3; T-36

$370,434

$0.94

5.00%

$121,467

$230,445

Year 5; T-60

$392,994

$1.00

5.00%

$125,139

$248,206

Debt Amount

Annual Debt Service Payments

Estimated Annual Market Valuation

Appreciation (National)

Pro Forma

$2,815,400

$191,826

Year 1; T-12

$2,777,474

$191,826

5.40%

Year 3; T-36

$2,695,083

$191,826

5.40%

Year 5; T-60

$2,603,136

$191,826

5.40%


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DEMOGRAPHICS REPORT

Total Population

Median Age

Median Age (Male)

Median Age (Female)

Total Household

Total Person/Household

Avg. Household Income

Avg. House Value

DEMOGRAPHICS REPORT

10 Miles

302,715

35.1

34.6

35.7

109,632

2.8

$80,307

$357,229

20 Miles

1,348,138

35.5

34.4

36.5

498,479

2.7

$67,03

$288,314

30 Miles

2,310,568

36.2

35.1

37.3

850,888

2.7

$66,757

$276,103



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JEFFREY CLINE

Jeff Cline’s 40+ years of business leadership and commercial real industry expertise includes commercial real estate marketing, brokerage, large-scale finance, development and construction. Mr. Cline has lead as CEO in several commercial property segments including multi-family apartments, condominiums, high-rise, office buildings, industrial / warehouse, retail shopping centers and as a national leader in the SFR Portfolio investment segment. Jeff has been involved as a principal in $2+ billion of commercial real estate, construction and property funding.

As a Principal and Designated Broker of SVN | SFRhub Advisors, Jeff is a co-founder which has developed an industry disrupting CRE digital transaction platform. This new digital platform is changing the way the CRE industry markets, researches, analyzes and acquires commercial investment property. It is this platform that will be a the disruption and opportunity with what will soon become the ‘normal’ location, marketing, research, and transaction portal.

Executive Director & Designated Broker

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #BR6508-89-000

ADVISOR BIOGRAPHIES



MICHAEL FINCH

Michael Finch began his career in commercial real estate brokerage over 15 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked high density mid to large scale developers commercial mixed-use & multifamily developments. Michael continued to deliver value-add opportunities as market cycles have evolved. With an extensive national network, Michael has successfully grown his client base with the nation’s largest investment & private equity groups in the country. He enjoys being an integral component to these client teams focused on large-scale income-producing portfolios, specifically single-family rental portfolios and build-for-rent investment portfolios for many years now.

Today, Michael is a Principal, Founder, & Executive Vice President in SVN | SFRhub Advisors, the nation’s leading commercial real estate brokerage firm focused on single-family rental portfolios & build-for-rent (BFR) investment portfolio sales on a national level. Michael is also a founding partner in SFRhub.com, a leading data & valuation service provider, and digital transaction platform for buyers & sellers of SFR & BFR investment portfolios.

Executive VP | Principal

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #SA576104000

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JERRY ANDERSON, CCIM

Jerry Anderson, CCIM, serves as the Ex-ecutive Managing Director of SVN Florida. As the pioneer in 2008 of the first region-al/area developer agreement awarded by SVN International, Anderson is responsi-ble for the growth and cohesive unifica-tion of the company in Florida by strategi-cally identifying key markets, companies, and Advisors. Anderson was the president of the SVN National Advisor Organization and then was president and chief oper-ating officer of SVN International. During Anderson’s 5 year tenure the company grew from 300 Advisors to more than 950 and expanded its footprint internationally and into the Institutional arena.

Prior to joining SVN Commercial Real Es-tate Advisors in 2003, Anderson served as the president of Coldwell Banker Com-mercial, a subsidiary of Cendant Corpora-tion, growing the company to more than 400 offices in less than five years. Ander-son is the co-author with Mike Lipsey of the best-selling training programs Com-mercial Real Estate: How to Buy, Sell and Lease as well as Real Estate: Mastering the Negotiation Process. He also authored Guide to Home Ownership. All series were

published by Nightingale Conant. His book Success Strategies for Investment Real Estate published by Prentice Hall is now a classic on the shelves of commer-cial real estate practitioners.

Anderson was awarded numerous In-structor of the Year awards as well as the prestigious Victor L. Lyon award by the CCIM Institute during his 20 years of teaching the CCIM course curriculum.

Anderson has made presentations on real estate investment to audiences in France, the United Kingdom, Australia, New Zealand, Canada, and all 50 states in the United States. Anderson also has discussed investment real estate on tele-vision networks including NBC, CBS, ABC, and PBS, and on more than 250 radio sta-tions.

Executive Managing Director

SVN | Florida Commercial Real Estate Advisors6615 W. Boynton Beach BlvdSuite #326Boynton Beach, Florida 33437

T: [email protected]

FL #BK3080928



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INTELLIGENT DECISION DATA

ABOUT SVN | SFRhub ADVISORS

SFRhub is our exclusive research and data provider with end-to-end Intelligent Decision Data solutions. A complete, effective clean data sourcing, research and analysis is essential to all SFR Portfolio buyers and sellers. The exclusive SFRhub Advanced SFR Scrub Report is essential for all intelligent decisions, whether they’re operational, asset acquisition or disposition and the overall strategic asset plan.

Today’s most effective and intuitive clean and verified data solutions are comprised of

Our proprietary Advanced SFR Scrub Report™ supports the buyer and seller decision process with quality and real time intelligent decision data, enabling an analysis of every aspect of the opportunity.

Also proprietary are our exclusive accelerated contract documentation process, title insurance management, due-diligence period logistics and documentation, with the final close of escrow. Ultimately, these pieces combine for a seamless

reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.

SFRhub has knowledgeable and experienced individuals who work with data sources as true partners to help implement solutions that are forward-thinking, yet still based on industry knowledge and best practices.

decision-managed process – for both the buyer and seller.

SVN | SFRhub Advisor delivers the nation’s only single-family rental (SFR) portfolio Live Acquisition Board™ transaction platform.

In support, the dedicated, experienced, and professional SFR portfolio team has developed both an exclusive and conventional SVN | SFRhub Advisors program. In applying this advanced

technology, SVN | SFRhub Advisors becomes the nation’s sole SFR Portfolio Live Acquisition Board™ Transaction Platform, supporting both sellers and buyers of single-family residential rental investment portfolios. In addition, we feature existing asset as well as new-build home commercial investment portfolios nationally, anywhere from 5 to 5,000 homes.



DISCLAIMER

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to the Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extend Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase agreement shall bind the property and each prospective purchaser proceeds at its own risk.

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6615 W. Boynton Beach BlvdSuite #326Boynton Beach, Florida 33437www.SVNFlorida.com386.547.4968

2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, Arizona 85016www.SFRhub.com602.441.5354

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved

12 home sfr investment portfolio multiple top msas … · learn more about portfolio 100390 at...

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