70 bfr investment opportunity tampa fl · tampa msa $155 offering summary **the amounts shown are...

SVN | SFRhub Advisors2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

Jeff ClineSVN | SFRhub Advisors

Executive Director 602.441.5354

[email protected]

Michael FinchSVN | SFRhub AdvisorsExecutive VP | Principal

[email protected]

Jerry Anderson, CCIMSVN | Florida Commercial Real Estate Advisors

Executive Managing Director386.547.4968

[email protected]

70 BFR INVESTMENT OPPORTUNITY TAMPA FLOFFERING MEMORANDUM

All SVN® Offices Independently Owned & Operated © 2018 All Rights Reserved

2 70 BFR Investment Opportunity Tampa FL

PROPERTY SUMMARY

Offering Summary

PROPERTY DESCRIPTION

Property Overview

HIGHLIGHTS

Property Highlights

LOCATION OVERVIEW

Location Info

Regional Map

ATTRACTIONS

Nearby Attractions

INVESTMENT OVERVIEW

Operating Pro Forma

Debt Overview

Financing Assumptions

DEMOGRAPHICS REPORT

ADVISORS BIO

4

6

18

20

22

24

26

28

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

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

PROPERTY SUMMARY

Sale Price:

Number of Units:

Stabilized Year I Cap Rate:

Stabilized Year I NOI:

Avg. Building Size:

Zoning:

Market:

Sub-market:

Price/SF:

$31,397,969

70

4.54%

$1,425,223

2,881

Residential

Florida

Tampa MSA

$155

OFFERING SUMMARY

**The Amounts Shown Are Market Estimates**


Unit Type

2 Bdrms

3 Bdrms

4 Bdrms

5+ Bdrms

AverageSize/Type

2,073

2,257

2,646

4,042

Numberof Units

4

5

46

15

AverageRent/SQ FT

$1.19

$1.12

$1.05

$0.88

AverageMonthly Rent

$2,466.87

$2,525.78

$2,790.50

$3,574.26


Bayshore Heights

Savanna at Lakewood Ranch

Serenity Creek

Heron Landing

MariposaLake Hanna Preserve

Country Walk



PROPERTY DESCRIPTION

PROPERTY OVERVIEW

This Build for Rent (BFR) portfolio opportunity allows a buyer to acquire new 70+/- homes spread around seven subdivisions in the Tampa, Florida area. The homes have been built or are in the final stages of construction by Meritage Homes of Florida. Known for quality and well-designed homes and communities, this portfolio allows a buyer to acquire a group of homes and not worry about capital expenditures for a number of years. It also allows the buyer to not worry about over saturation of rentals in a single community because the homes are spread across the area in seven communities.

All of the homes in this portfolio are being built to for-sale standards and quality and include the standard Meritage Home Warranty. They are also being

built to high energy-efficiency standards providing tenants an incentive to pay higher rent. The homes are Energy Star© certified and have high-efficiency air conditioners. Many of the homes also include M.Connected Home™ Automation Suite.

This Meritage new home BFR portfolio includes a mix of homes of assorted sizes and number of bedrooms. Although the portfolio as a whole offers good returns, a buyer can select a subset of homes that best suit their investment criteria. The asking price on the total portfolio is just under $32,000,000, an average of $448,641 per home. There is an average of 4.1 bedrooms per home and an average per month rent of $2,920.




COMMUNITY OVERVIEW



Meritage Homes is well-known for building beautiful, quality homes that are sure to impress any prospective tenants. Being built in one of the hottest markets, Tampa, these communities are in proximity of the most sought-after shopping centers, schools, and restaurants. There are seven communities involved in this portfolio: The Mariposa- Riverview, Savanna at Lakewood Ranch- Manatee, Serenity Creek- Manatee, Country Walk-Pasco, Bayshore Heights- Pinellas, and Heron Landing-Sarasota.

LAKE HANNA PRESERVE - TAMPA: Located in the heart of picturesque Lutz and nestled between Hillsborough County, this community, Lake Hanna Preserve, is a gated community surrounded by beautiful landscapes and lakes that only Florida can provide. The homes within the community have many innovative and stunning features such as ceramic tile flooring, stone or brick exterior accents, spacious kitchens with gorgeous 3cm granite countertops, a luxurious soaker tub with separate shower, tile, ENERGY STAR® appliances, and M.Connected Home™ Automation Suite. The Lakewood Ranch Community offers world-class shopping, dining, and proximity to the I-75/SR 64 interchange that boasts serene wetland and wooded views.

MARIPOSA - RIVERVIEW: The Mariposa community provides prospect tenants a tranquil view of the conservation and nearby pond and is just two miles from the I-75. The Mariposa community is a family-focused development with prestigious amenities for everyone such as a private clubhouse, a pool with an interactive splash, premium homesites, and a playground. The homes within the community offer groundbreaking energy efficient appliances, acrylic decking on patios, paver driveway and walkways, tiled shower walls and tub, granite countertops in all baths, 42” Timberlake® Flat Panel Square Maple cabinets, and high efficiency 15-SEER HVAC system.

10 71 BFR Investment Opportunity Tampa FL10 70 BFR Investment Opportunity Tampa FL


SAVANNA AT LAKEWOOD RANCH - MANATEE: This community is conveniently located in Lakewood Ranch, near fabulous shopping, dining and the I-75/SR 64 interchange. The community is nestled between serene wetland and wooded views, offering future tenants exposure to A-rated schools, and luxury amenities such as a resort-style pool, spacious clubhouses, and an event lawn. The homes in this community feature Boral tile roof, stone or brick exterior accents, acrylic decking on patios, paver driveway and walks and patios, Moen Chateau® chrome faucets and accessories, 42” Timberlake® Flat Panel Square Maple cabinets and Fiber Mesh reinforced monolithic slab with vapor barrier.



SERENITY CREEK MANATEE: The Serenity Creek community is ideally situated near I-75 and I-275, conveniently close to Lakewood Ranch, Sarasota, Gulf beaches and more. The quiet community of spacious homes features a playground, walking trails, golf, a dog park and a vast range of shopping and dining options.



COUNTRY WALK - PASCO: Country Walk is a community that offers future and present tenants the best of nature and modern life, hidden between 100+ acres of conservation and wetlands. With these new homes, state-of-the-art features are evident such as CertainTeed ® 30-year architectural shingles, Wayne Dalton™ insulated steel garage doors with LiftMaster® garage opener and 2 remotes, Zoysia sod on front lawn and Bahia sod in back, Shaw® carpeting throughout all remaining living areas, and spray foam Icynene insulation for health and energy savings.



BAYSHORE HEIGHTS - PINELLAS: This community, Bayshore Heights, is home to natural and tranquil beauty of the Tarpon Springs bayou area. Here, tenants have the option of enjoying the small-town charm with the big-city convenience by visiting any of the nearby state parks, beaches, shopping centers, and restaurants. The community offers premium features in the area and within the homes, including a tranquil pond, flex spaces, owners’ entry, and walk-in closets.


HERON LANDING - SARASOTA: Heron Landing is within two miles of I-75 in Sarasota county, incredibly close to the gorgeous white sand beaches of Siesta Key. Homes within the community have exclusive features including a Boral® barrel tile roof, St. Augustine sod and professionally designed landscape package (per homesite), attractive knockdown ceilings and orange peel textured interior walls, and spacious walk-in closets with free-slide style shelving (varies per plan).


PROPERTY HIGHLIGHTS

• Stabilized Year 1 Gross Yield of 7.64%

• Stabilized Year 1 Cap Rate of 4.54%

• Strong 18.94% Stabilized Year 1 Leveraged IRR

• 70 +/- Single Family Home Build for Rent Investment Portfolio

• Homes are spread through seven communities in Metro-Tampa, Florida

• Seller is Meritage Homes

• Homes come with a new home warranty

• Homes are built to high energy-efficiency

• Buyer can select the homes that most meet their criteria (five or more homes)

• Q1 2018 unemployment rate of 3.6%

• Annualized job growth rate of 2.9%

• Estimated population April 2018 in Hillsborough county of 1,347,700, an estimated 24% are between the ages of 18 and 34

18 Portfolio Name

HIGHLIGHTS




LOCATION OVERVIEW

LOCATION INFO

Florida is widely known as the Sunshine State, but it is also well-known for its business-friendly environment offering business owners low corporate income tax rates and no personal income tax. These tax situations continue to rank Florida as one of the top states to do business.

Tourism is one of the largest sectors of the state economy, employing nearly 1.4 million people in 2016. 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. Florida’s GDP in 2017 was

$967.3 billion making it the fourth largest economy in the United States. Tampa has an estimated population of 3,091,399 people as of 2018. Several Fortune 1000 companies have headquarters in Tampa, including OSI Restaurant Partners, WellCare, TECO Energy, and Raymond James Financial. Also, MacDill Air Force Base is an active United States Air Force installation located 4 miles south-southwest of downtown Tampa, Florida. Tampa was ranked as the 5th hottest real estate market for rental homes in 2017.



REGIONAL MAP



ATTRACTIONS



NEARBY ATTRACTIONS

Most residents are transplants from other areas of the U.S., drawn to the region by its pleasant weather, recreational activities, job opportunities or retirement communities. Existing residents in Tampa enjoys a laid-back beach lifestyle and the amenities of a large metro area, both uniquely balanced. All seven communities aforementioned are all within proximity of Tampa’s most well-known shopping centers and attractions. U.S. News has ranked Tampa as one of the best places to retire, as the state’s cost of living is lower than the national average.

Two of the most popular attractions in the Tampa area is the Busch Gardens and the Florida Aquarium. Busch Gardens Tampa is a 335-acre African-themed animal park. The park officially features eight roller coasters and two water rides amongst other rides and animal attractions. In 2015, the park hosted 4.2 million people, placing the park at 11th place as the most-visited theme park in the United States. A great attraction both visitors & residents are lucky enough to experience in Tampa is the Florida Aquarium. The aquarium is a 250,000 square-foot aquarium that features support programs for wildlife.



INVESTMENT OVERVIEW

INVESTMENT OVERVIEW


Cap Rate - Stabilized

Gross Yield

Net Operating Income (NOI)

Leveraged IRR

Unleveraged IRR

Leveraged Cash-On-Cash

Number of Units

Buy Price

Buy Price Per Unit

Buy Price/SQFT

Market

4.36%

7.41%

$1,369,760

0.35%

70

$31,397,969

$448,542

$155

Year 1; T-12

4.54%

7.64%

$1,425,223

18.94%

9.94%

0.94%

Year 3; T-36

4.91%

8.10%

$1,541,848

20.55%

10.42%

2.18%

Year 5; T-60

5.31%

8.59%

$1,666,478

22.25%

10.93%

3.50%


OPERATING PRO FORMA

DEBT OVERVIEW

**Information is deemed reliable, but not guaranteed**

Loan-To-Value Ratio

Interest Rate

Loan Amortization in Years:

FINANCING ASSUMPTIONS

70.00%

4.50%

30

Annual Rent

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

Vacancy

Operating Expenses

Net Operating Income (NOI)

Market

$2,450,329

$1.01

5.00%

$958,053

$1,369,760

Year 1; T-12

$2,523,839

$1.04

5.00%

$972,424

$1,425,223

Year 3; T-36

$2,677,541

$1.10

5.00%

$1,001,815

$1,541,848

Year 5; T-60

$2,840,603

$1.17

5.00%

$1,032,095

$1,666,478

Debt Amount

Annual Debt Service Payments

Estimated Annual Market Valuation Appreciation (National)

Market

$21,978,578

$1,336,347

Year 1; T-12

$21,624,014

$1,336,347

5.40%

Year 3; T-36

$20,865,271

$1,336,347

5.40%

Year 5; T-60

$20,035,214

$1,336,347

5.40%



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

5 Miles

140,594

33.2

32.4

33.9

52,530

2.7

$55,373

$186,731

10 Miles

606,407

35

33.8

35.9

229,204

2.6

$62,947

$250,963

15 Miles

1,029,261

35.5

34.4

36.6

396,860

2.6

$65,822

$259,786

*Demographic data derived from 2010 US Census




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+ billon of commercial real estate, construction and property funding.

As a Principal 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

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

T: 602.441.5354C: [email protected]

AZ #SA650889000

ADVISOR BIOGRAPHIES



MICHAEL FINCH

SVN | SFRhub Advisors leads the nations #1 SFR & BFR (Build For Rent) Investment Portfolio group. These portfolios are CRE investment grade portfolios ranging from 5 to 5,000 homes nationwide.

Michael Finch began his career in Commercial Real Estate Brokerage over 14 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked, high density, mid to large scale developers for Commercial Mixed Use & Multifamily Development.

As markets shifted in 2008, Michael leveraged lender relationships, formed in previous years, to plan distressed real estate dispositions for his buyer base. Michael was able to develop and grow these relationships to become an integral part of many clients acquisition and disposition teams. Michael has developed and managed extensive pipelines of lender owned assets, short sales, portfolio note sales, and traditional commercial real estate asset sales.

Michael has continued to deliver value and opportunities as market cycles have evolved. With an extensive national network, Michael has been successful and enjoys being an integral partner for client teams focused on large-scale income-producing portfolios, and more specifically having focused on Single Family Rental Portfolios and Build For Rent Investment Portfolios for many years now. Today, Michael is a Principal, Founder, and Executive Vice President in SFRhub Advisors, the leading SVN commercial real estate brokerage focused on Single Family Rental Portfolios & Build For Rent (BFR) Investment Portfolios sales on a national level. Michael is also a founding partner in SFRhub.com, a soon to be launched digital marketplace 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



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 respon-sible for the growth and cohesive unifica-tion of the company in Florida by strategi-cally identifying key markets, companies, and Advisors. Anderson was the presi-dent of the SVN(now SVN) National Advi-sor Organization and then was president and chief operating officer of SVN Inter-national.

During Anderson’s 5 year tenure the com-pany grew from 300 Advisors to more than 950 and expanded its footprint inter-nationally 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.

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, Austra-lia, New Zealand, Canada, and all 50 states in the United States. Anderson also has dis-cussed investment real estate on television networks including NBC, CBS, ABC, and PBS, and on more than 250 radio stations.

Executive Managing Director

SVN | Florida Commercial Real Estate Advisors

810 Saturn Street,Suite 24Jupiter, FL 33477

T: [email protected]

BK3080928




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 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.


2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

www.SFRhub.com602.441.5354

810 Saturn Street

Suite #24

Jupiter, FL 33477

www.SVNFlorida.com386.547.4968

All SVN® Offices Independently Owned & Operated © 2018 All Rights Reserved

70 bfr investment opportunity tampa fl · tampa msa $155 offering summary **the amounts shown are...

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