investmenthighlights · financial information and projections, and any engineering and...

1301 N State Highway 121

Bonham, TX 75418

InvestmentHighlights

Excellent Market Location

Strong employment base in the immediate area

with great upside potential

Opportunity to continue to bring vacant units to

rent-readystatusatprovenincreasedrentalrates

Terrific mix of one-, two-& three-bedroom

apartmenthomesconducivetotheemployers

in thearea

Averagemedianhousehold incomenorthof

$53Kinathree-mileradius

OFFERINGPROCEDURE

Offerswillberespondedtouponreceipt.Anyinitialoffershould besubmittedintheformofanon-bindingletterdictatingspecific terms,including(1)purchaseprice,(2)amountofearnestmoney,

(3)lengthofduediligenceand(4)financingtimeframe.

Additionally,alloffersmustbeaccompaniedwiththepurchasers’ qualificationstoclosethetransaction.

DISCLAIMER/CONFIDENTIALITY STATEMENT

The material contained in the offering memorandum is confidential, furnished solely for the purpose of considering the acquisition of

the property described herein, and is not to be used for any other purpose or made available to any other person without the express

written consent of SVN Oak Realty Advisors. The information contained herein has been obtained from sources that we deem to be

reliable, and we have no reason to doubt its accuracy. However, neither the seller, broker or any related entity make any warranty or

representation, expressed or implied, as the accuracy or completeness of the information contained herein, included but not limited to,

financial information and projections, and any engineering and environmental information. Prospective purchasers should make their

own investigations, projections and conclusions. It is expected that prospective purchasers will conduct their own independent due

diligence concerning the property, including such engineering inspections as they deem necessary to determine the condition of the

propertyandtheexistence orabsenceofany potentialhazardousmaterials usedin theconstructionormaintenanceofthebuildingsor

located at the land site, included but not limited to, lead-based products (for compliance with “target housing” regulation for multifamily

housing constructed prior to 1978), asbestos, etc. Broker represents seller in this transaction and makes no representations, expressed or

implied, astotheforegoingmatters.

SVN OAK REALTYADVISORS4812 E. 81stSt.

Ste.301

Tulsa, OK74137

All Sperry Van Ness® offices are independently owned andoperated.

OAK REALTYADVISORS

SUBMISSIONS

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Raymond Lord | Senior Managing Director918.850.1779rlord@svn.com

Benjamin Davis | Managing Director918.740.6288bdavis@svn.com

Casey Litsey | Associate Broker918.857.5961clitsey@svn.com

OfferingSummaryAt-A-Glance | Area Map | Vicinity Map4

RentalComparablesRent Comp Map | Rent Comp Summary |Rent CompRanking19

32 SalesComparablesSales Comp Map | Sales CompSummary

35 Demographics and MarketSummaryBusiness Summary |Demographics and MarketHighlights

42 MarketingTeamMarketing Team

InvestmentSummaryInvestment Rationale | CapitalImprovements16

PropertyDescriptionProperty Details | Unit Mix | Amenities | FloorPlans

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8

TABLE OFCONTENTS

YEARBUILT

2004PRICE

$6,250,000NUMBEROFUNITS

65TOTALNETRENTABLESF

59,491OCCUPANCY

98%

1301 N State Highway 121

Bonham, TX 75418

OFFERINGSUMMARY

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Conclusion

• With theaboveconsiderations,The BouldersApartments is anexcellentopportunity for an investorlooking tocapitalizeona

property thathasaterrificcombinationof valueaddpotential andstability

LocationReview

• Communityisexceptionallywell locatedjustoff of Highway 820 and Highway 30 one ofDallasmajorinteriorarteriesrunningeastandwest

• Immediateareaboastsanumberofstrongemploymentbases,includingoneofthelargestmedicalcorridorsonemileawayaswell

asEast Hills Highschool

• ResidentsarewalkingdistancetoMeadowbrook Golf Course and Parkfeaturinga5Krunningpath,numerousplaygrounds,two

18-holegolfcourses, tenniscourtsandmore,inadditiontothenewlyrenovated

• Additionallyincloseproximityareawidevarietyofgrocerystores, Fort Worth entertainmentdistrictaswellasavarietyofbigboxstores

KeyFactors

• Significant Upside on Rents with Interior Upgrades. It is estimatedthatitwill takeapproximately$8,500dollarsperunit to

bringthemtoparwith therestof theproperty

• Averageareaoccupancies for similar properties is96percent,accordingtoYardi’sApril 2020reportwithaveragerental

rates over $850dollars perunit

• Averagemedianhouseholdincomewithinathree-mileradiusis$63,232withthelargestagedemographicbeing25-44yearsold

• Theoverallcommunityhasreceivedalargecapital infusionduringthecurrentownershipaddressingmostof themajorcomponents

fromaconstructionandmechanicalperspective

AT-A-GLANCE

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Richard L.Jones Jr.Airport

Woodland HillsMall

LaFortune Park

44

AREAMAP

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Richard L.Jones Jr.Airport

Woodland HillsMall

LaFortune Park

44

VICINITYMAP

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PROPERTYDESCRIPTION

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Billing

Electric –Tenant

Water –Owner

Sewer –Owner

Trash –Owner

Gas –Owner

SiteCharacteristics

Number of Acres–1.88

Net Development Density–27.92NumberofBuildings–Twelveresidential

buildings County:Fannin

Staffing

1 full-timemanager

1 full-time maintenanceworker

Mechanical

Electrical –Individual Metered Water

Central / Individual Hot Water

Individual Condensers and Forced Air Units

Construction

Exterior–StuccowithwoodaccentsRoofs–Pitched/30-yeararchitecturalshingle(allnew)

Parking Lot –Asphalt/65spaces

Stories –Two

Stairs –Wood

Landings –Concrete

TenantQualifications

3xrent12-month rental history

Employmentverification

Backgroundcheck

Nofelonies

PROPERTYDETAILS

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INVESTMENT RATIONALE

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The Boulders

Unit Type Number of Units % of Total Unit SF Total SFCurrent Average

RentRent Per SF Monthly Income Annual Income

1 + 1 33 40.39% 635 20,955 $675.00 $1.06 $22,275 $267,300

2 + 2 22 34.77% 820 18,040 $775.00 $0.95 $17,050 $204,600

3 + 2 10 20.03% 1,039 10,390 $975.00 $0.94 $9,750 $117,000

Storage Units 25 4.82% 100 2,500 $50.00 $0.50 $1,250 $15,000

Total / Average 65 100.00% 798 51,885 $774.23 $0.97 $50,325 $603,900

Unit Mix Detail Unit Rental Rates

1 + 151%

2 + 234%

3 + 215%

APARTMENTFEATURES

• Openfloorplanswithlotsoflight

• Two-tonemoderngrayinteriorpaintwithwhiteaccents

• Woodvinyl flooring

• Refinishedcabinets

• Black appliancepackages

• Resurfacedcountertops

• Two-inch faux woodblinds

• Tiled tubsurrounds

• Six-panel interiordoors*

• Ample closetspace

*Select units

COMMUNITYAMENITIES

• Gated Community

• Resident gardeningarea

• Coveredlandings

• On-site laundryfacilities

• Easy access to grocery stores,restaurants, freeways andmore

AMENITIES

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INVESTMENTSUMMARY

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INVESTMENT RATIONALE

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Actual and Proforma Financial Analysis

2020 Per Unit Per SF % of Gross Annual Per Unit Per SF % of Gross

Gross Potential Income 562,631$ 8,655.86$ $10.84 100.00% 619,500$ 9,530.77$ $11.94 100.00% Purchase Price

Less Vacancy & Bad Debt (28,014)$ (430.98)$ -$0.54 -4.98% (30,975)$ (476.54)$ -$0.60 -5.00%

Less Concessions (37,176)$ (571.93)$ -$0.72 -6.61% (23,231)$ (357.40)$ -$0.45 -3.75% Capitalization Rate 6.52%

Total Rental Income 497,441$ 7,652.94$ $9.59 88.41% 565,294$ 8,696.83$ $10.90 91.25%

Economic Occupancy 88.41% 91.25% Equity

Other Income 46,211$ 710.94$ 0.89$ 8.21% 46,200$ 710.77$ $0.89 7.46% Net After Debt

Effective Gross Income 543,652$ 8,363.88$ 10.48$ 96.63% 611,494$ 9,407.60$ $11.79 98.71% Cash on Cash

Projected Per Unit Per SF % of Gross Annual Per Unit Per SF % of Gross

Payroll (83,572)$ (1,285.72)$ (1.61)$ -14.85% (83,600)$ (1,286.15)$ (1.61)$ -13.49% New Debt

Insurance (5,390)$ (82.92)$ (0.10)$ -0.96% (15,000)$ (230.77)$ (0.29)$ -2.42% Loan

Property Taxes (16,144)$ (248.37)$ (0.31)$ -2.87% (16,100)$ (247.69)$ (0.31)$ -2.60%

Utilities (32,765)$ (504.07)$ (0.63)$ -5.82% (32,800)$ (504.62)$ (0.63)$ -5.29% Interest Rate 4.25%

General Operating - Mgmt (14,297)$ (219.95)$ (0.28)$ -2.54% (14,300)$ (220.00)$ (0.28)$ -2.31%

Repairs & Maintenance (27,792)$ (427.57)$ (0.54)$ -4.94% (27,800)$ (427.69)$ (0.54)$ -4.49% Amortization 30

Marketing (673)$ (10.35)$ (0.01)$ -0.12% (700)$ (10.77)$ (0.01)$ -0.11%

Administrative (13,846)$ (213.02)$ (0.27)$ -2.46% (13,800)$ (212.31)$ (0.27)$ -2.23% Debt Service

Total Expenses (194,478)$ (2,991.97)$ (3.75)$ -34.57% (204,100)$ (3,140.00)$ -$3.93 -36.11%

NET OPERATING INCOME 349,174$ 5,371.91$ 6.73$ 62.06% 407,394$ 6,267.60$ $7.85 66.62%

T-12 Actual Proforma Based on Market Rents & OccupancyIncome

Operational ExpensesT-12 Actual Actual Expenses T-12

Loan Summary

4,687,500$

276,716$

Proforma Investment Analysis

6,250,000$

1,562,500$

130,678$

8.36%

INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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INVESTMENT RATIONALE

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RENTALCOMPARABLES

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RENTALCOMPARABLESMAP

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RENTALCOMPARABLES

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RENTALCOMPARABLES

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RENTALCOMPARABLES

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RENTALCOMPARABLES

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RENTALCOMPARABLES

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SALESCOMPARABLES

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SALESCOMPARABLEMAPS

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SALESCOMPARABLES

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SALESCOMPARABLES

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SALESCOMPARABLES

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SALESCOMPARABLES

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DEMOGRAPHICS AND MARKETOVERVIEW

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DEMOGRAPHIC SUMMARY

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BUSINESS SUMMARY (1-MILERADIUS)

SERVICES

FINANCE,

INSURANCEAND REALESTATE

UNCLASSIFIED

RETAIL TRADE

TRANSPORTATION

CONSTRUCTION

MANUFACTURING

36.9%

22.4%

11.4%

15.7%

3.5%

2.7%

%

2.1%

1.7%

1.6%

0.7% GOVERNMENT AND

COMMUNICATION

0.1% UTILITY

WHOLESALE TRADE

AGRICULTURE AND MINING

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DEMOGRAPHIC SUMMARY

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DEMOGRAPHIC AND MARKET HIGHLIGHTS

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DEMOGRAPHIC AND MARKET HIGHLIGHTS

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Appendix –T-12 & RR

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The Boulders Apartments

Appendix T-12

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The Boulders Apartments

Appendix T-12

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The Boulders Apartments

Appendix T-12

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The Boulders Apartments

Appendix Rent Roll

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The Boulders Apartments

Appendix Rent Roll

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The Boulders Apartments

Appendix Rent Roll

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The Boulders Apartments

MARKETING TEAM

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The Boulders Apartments

MARKETING TEAM

SVN® ADVISOR BIOS

RAYMOND LORDRaymond is a Principal and Senior Managing Directorat SVN OAK Realty Advisors. He has over 30 years ofexperience in commercial real estate and isrecognized as an industry leader in multifamilytransactions. Since 1987 Raymond has had theopportunity to personally work with some of thelargest REITS, trusts, and private equity groups in thecountry and been involved in the sale of multi-familyproperties in excess of $25 billion dollars.

BENJAMIN DAVISBenjamin is a Principal and Managing Director at SVNOAK Realty Advisors. Since he began his career in2006, he has been involved in the sale of over $1.50billion in commercial real estate transactions and hasproven himself to consistently be one of the topmultifamily brokers in the region. Over the last 12years, Ben has worked with many of the largestapartment owners in the region including DEIAssociates, Twin Rock Partners, Fowler Properties,and Case & Associates.

CASEY LITSEYCasey Litsey is a Commercial Real Estate Advisor at one of the top selling realty firms in the nation, SVN OAK Realty. Specializes in marketing and investment sales of multifamily properties nationwide.

With over 7 years of Real Estate experience, Casey’s main focus is to assist clients with the acquisition and disposition of multifamily transactions. Between the years of 2019 and 2020 alone, Casey has closed $45 million worth of commercial real estate transactions.

OAK REALTY ADVISORS