Alexandra Apartments888 Fairview Road, Penticton

FOR SALE

JLL Real Estate Services, Inc.

PROPERTY DETAILSCivic Address 888 Fairview Road

Pentiction, BC

Units 46

PID 009-511-911

Construction 4-storey Wood Frame

Parking17 surface stalls50 covered stalls8 visitor stalls

Lot Size 33,933 sf

Zoning RM-3

Year Built 1976

Property Taxes (2017) $25,641

Assessment(2017)

Land $ 902,000Improvement $ 3,112,000Total $ 4,014,000

OPPORTUNITY HIGHLIGHTS ▶ Professionally managed with an excellent off-site caretaker who has shown unwavered dedication to the operation of the building.

▶ All units are separately metered. Tenants pay for their own heat (electric baseboard), reducing operating costs.

▶ Scale of investment is substantial at 46 units with a desirable suite mix of primarily one and two bedroom units

▶ Record low vacancy in Penticton of 0.90% (Fall CMHC Report)

▶ Secure cash flow with proven value-add and revenue upside upon tenant turnover

▶ Property is held in a bare trust

▶ Numerous suite renovations completed along with the building exterior being completely repainted and brand new carpets and LED lighting installed in the hallways

THE OPPORTUNITYAlexandra Apartments presents an opportunity to acquire a multifamily asset of scale that has been professionally maintained and managed, located in the growing city of Penticton. With the current low vacancy environment, rising rents, and strong local economy, this asset provides an investor with significant and proven rental revenue, with upside in both the short and long terms.

$6,200,0005.23% Cap Rate

RENT ROLL SUMMARY

UNITNUMBER TYPE

CURRENT MONTHLY AVERAGE

RENT

POTENTIALMONTHLY AVERAGE

RENT

3 Bachelor $718 $85031 1 Bedroom $803 $95012 2 Bedroom $986 $1,200

Total 46 Units $845 $771

LOCATION ▶ Alexandra Apartments is situated on the edge of downtown within a ten minute walk from Penticton’s Main Street where tenants can find an array of retail outlets and boutique stores.

▶ Penticton is home to many recreational activities such as skiing at Apex Mountain, boating and fishing on Skaha Lake and Okanagan Lake, hiking and biking the Kettle Valley Railway, and rock climbing at Skaha Bluffs.

▶ Penticton Regional Hospital is currently undergoing a $512 million renovation. A 300,000 sf, 2 phase expansion is slated for completion in 2019. Phase One involves the construction of a new patient care tower with surgical services, 84 additional inpatient beds. Phase 2 will include renovation of current areas and expand the emergency department.

▶ Penticton Regional Airport is located a 10 minute drive from Alexandra Apartments, with daily flights to Vancouver and Calgary.

PROFORMA INCOME STATEMENT

[1] March 2018 Rent Roll Annualized. Stabilized rent roll reflecting potential rents upon turnover.

Current NOI Stabilized: Potential NOI

YEARLY YEARLY/UNIT % OF EGR YEARLY YEARLY/UNIT % OF EGR

REVENUE

Rental Income [1] $466,488 $10,141 $556,800 $12,104

Laundry $11,250 $245 $11,250 $245

Potential Gross Income $477,738 $10,386 $568,050 $12,349Less: Vacancy [2] (0.90%) $4,300 $93 $5,112 $111

EFFECTIVE GROSS REVENUE $473,438 $10,292 $562,938 $12,238

EXPENSES [3]

Property Taxes $25,641 $557 5.42% $25,641 $557 4.55%

Insurance $13,987 $304 2.95% $13,987 $304 2.48%

Water & Sewer $13,698 $298 2.89% $13,698 $298 2.43%

Electricity $12,392 $269 2.62% $12,392 $269 2.20%

Heating (Gas) $5,886 $128 1.24% $5,886 $128 1.05%

Waste Removal & Recycling $3,072 $67 0.65% $3,072 $67 0.55%

Business License $406 $9 0.09% $406 $9 0.07%

Elevator $2,324 $51 0.49% $2,324 $51 0.41%

Management [4] $40,000 $870 8.45% $40,000 $870 7.11%

Repair & Maintenance [5] $31,574 $686 6.67% $34,500 $750 6.13%

TOTAL EXPENSES $148,980 $3,239 31.47% $151,906 $3,302 26.98%NET OPERATING INCOME $324,458 $411,032

[2] CMHC vacancy rate for Penticton - October 2017[3] For the year ended December 31, 2017, except where noted

[4] Stabilized expense[5] Stabilized to $750 per unit per year in potential proforma

MARTIN STREET

FAIR

VIEW

ROA

D

MAIN STREET

WEST ECKHARDT AVENUE

20 min

10 min

5 min

*Personal Real Estate CorporationJones Lang LaSalle Real Estate Services Inc. • 355 Burrard Street • 14th Floor • Vancouver, BC V6C 2G6 • www.jllmultifamilybc.com

©2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

E. & O. E. Jones Lang LaSalle Real Estate Services, Inc. Real Estate Brokerage

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SUBJECTPROPERTY

Patrick McEvay* Vice President

+1 604 789 0720 Patrick.McEvay@am.jll.com

James Blair* Vice President

+1 604 790 7089 James.Blair@am.jll.com

Chris HayneSales Associate+1 778 998 4663

Chris.Hayne@am.jll.com

David Venance* Vice President

+1 604 910 3842 David.Venance@am.jll.com