broker's opinion of value · residents enjoy ample amenities which include: mini-blinds,...

BROKER'S OPINION OF VALUE

www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027

A 80 Unit ● Class C ● Multi-Family Asset3611 MURWORTH, DR HOUSTON, TX 77025

MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025

APARTMENTS FOR SALE

PRICE/UNIT:

PRICE/SF:

Units: 20 TERMS: ASSUMPTION

Avg Size: 525 PRO-FORMA CAP RATE:

Date Built: 1955Rentable Sq. Ft.: 10,500Acreage: 0.34Occupancy: 95%Class: B+

SALIENT FACTS:

♦ Available on an Assumption Basis ♦ The Houston Medical Center is the largest in the world!

♦ Located in the Medical Center market of Houston ♦ Huge job expansion in the area

♦ Per HCAD, the asset was remodeled in 2016 ♦ Ideal for long term hold

♦ Seller spent in excess of $30k/door on updates!

♦ Strongly updated interiors, cabinets, wiring, appliances, etc

MARKET

For More Information Please Contact:

Mark Kalil & Associates, Inc.

2001 Holcombe Blvd, # 105 | Houston, TX 77030 T 713.799.8700 | F 713.799.8703 | C 713.829.3765

[email protected] | www.markkalil.com

KET Enterprises Incorporated 4295 San Felipe, Suite 355 | Houston, TX 77027

T 713.355.4646 | F 713.355.4331 | C 713.628.9408 [email protected] | www.ketent.com


Asking Price Est Mkt Rent (Aug-19)

Price Per Unit Amortization (months) 3 Mo Avg

Price Per Sq. Ft. Debt Service

Stabilized NOI Interest Only Payment

Interest Rate

Date Due

Water Meter / Master RUBS Est Res for Repl/Unit/Yr

Yield Maintenance

Pitched

* 2019 Tax Valuation under protest

PRO-FORMA INCOMECurrent Street Rent with a 5% Increase $23,625 / Mo

Estimated Gross Scheduled Income $23,625 / Mo

Estimated Loss to Lease (2% of Total Street Rent) 2%

Estimated Vacancy (2% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%

Estimated Utilities IncomeEstimated Other Income $225 / Unit / Yr

Estimated Total Rental Income

ESTIMATED TOTAL PRO-FORMA INCOME $22,600 / Mo

3 Mo Avg Income Annualized

Fixed Expenses2018 Tax Rate & Future Assessment

Estimated

$1,431 per Unit $1,585 per Unit

GasTelephone

Total Utilities $694 per Unit $694 per Unit

Other Expenses

5.95% $619 per Unit includes salary for management 5.95% $807 per Unit

Total Other Expense $1,068 per Unit $1,552 per Unit

Total Operating Expense $3,193 per Unit $3,831 per Unit

Reserve for Replacement $200 per Unit $200 per Unit

Total Expense $3,393 per Unit $4,031 per Unit

Net Operating Income (Actual Underwriting)

Asking Price "As-Is" Price "All In" Price

Cap RateExisting DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash47,441

139,924

4,000

63,864

$82 per Unit

21,357

283,500

271,199

$320 per Unit

$25,304

$6,396

$1,265 per Unit

Estimated Fixed Expenses

Estimated Expenses

$85 per Unit$1,700

$ per Unit

$4,828

Estimated Other Expenses

$0

92,482

1,947,000

General & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees

INCOME

Wiring:

Taxes

EXPENSE

$207,788

Fixed Expenses

80,627

31,036$16,136

4,000

Other Expenses

$260 per Unit

$256 per Unit

$241 per Unit

$ per Unit

31,700

(5,670)

13,890

$256 per Unit

$4,828Trash

Water & Sewer

$241 per Unit

Date Built

Sep '18 thru Aug '19 Expense

$320 per Unit$6,396

$22,221 2019 Tax Bill

MODIFIED ACTUALS

Copper

1955

Indiv

Existing Freddie Mac must be assumed

$0 $ per Unit $0 $ per Unit

$1,111 per Unit

$1,155 $58 per Unit $1,155 $58 per Unit

Electricity $139 per Unit$2,785

$5,121

$2,785 $139 per Unit

13,890

$5,121

95%

2%

$350

$92,482

360

$7,706.87

$300

4.75%

2019 Tax Assessment

$22,221

283,500

Est Ins per Unit per Yr

$22,500

$17,316

5/1/2027

Yes

Property Tax Information

2.53044Tax Rate (2018)

Est Future Taxes

271,199

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to

independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD

CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the

right to withdraw this listing or change the price at anytime without notice during the marketing period.

$5,200

$0

$12,372

$1,630

$7,355

$0

1,947,000

92,482

$368 per Unit

MARKETMARKET

76,627

190,572

$400 per Unit$8,000

NOTES: ACTUALS: Income and Expenses are from owner's 2019 Tax Bill. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2018 Tax Rate & Future

Assessment. Insurance is estimated. Management Fees calculated as 6% of Gross Income, Other expenses are Estimated for the Pro Forma.

67,864

$ per Unit

98,089

Existing Loan Parameters

$1,947,000

Operating Information

Net Rentable Area

Est Future Tax Assessment $1,000,000

$878,140

2019 Taxes

Physical Information

Number of Units Mortgage Balance

59.173Units per Acre

Elec Meter

Roof Style

Avg Unit Size

Financial Information

20

525

MARKET

Insurance

Interest only until 5/2020

Estimated UtilitiesUtilities

Total Fixed Expense

Utilities

28,617

4,500

(5,670)

209 $10 / Unit / Yr

Physical Occ (Sep-19)10,500

0.34Land Area (Acres) $190,572

(5,670)

$25,304

PRO-FORMA

9/17/2019 Murworth

PROPERTY OVERVIEW

MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025 Keymap: 532P

Construction Quality: B

Age: 1955 Access Gates Park & Ride Nearby Mortgage Balance

Remodeled 2016 Cable Ready Walk-In Closets Amortization Houston ISD $1.206700

Elec Meter: Indiv Club House School Bus Pick-up Interest Only Harris County $0.418580

A/C Type: HVAC-Indiv Laundry Rooms Shuttle Route Type Harris County Flood Control $0.028770

Water: RUBS Mini Blinds Patios/Balconies Assumable Port of Houston Authority $0.011550

Wiring: Copper Pool Monthly Escrow Harris County Hospital District $0.171080

Roof: Pitched Bookshelves Origination Date Harris County Education Dept $0.005190

Paving: Concrete Outside Storage Due Date City of Houston $0.588310

Materials: Brick/Wood Ceiling Fans Interest Rate Houston Community College $0.100263

# of Stories: 2

Parking: Covered Yield Maintenance 2018 Tax Rate/$100 $2.530443

Buildings: 27 Transfer Fee 2019 Tax Assessment $878,140

Units/Acre: 59.17 *In Select Units

Total $206,201

Sept 2018 $17,245 12 Mo Avg $17,183

Oct 2018 $17,245Nov 2018 $17,295Dec 2018 $17,265 9 Mo Avg $17,157

Jan 2019 $17,265Feb 2019 $17,279Mar 2019 $17,505 6 Mo Avg $17,101

Apr 2019 $16,630May 2019 $16,524June 2019 $17,504 3 Mo Avg $17,316

July 2019 $17,443Aug 2019 $17,000

Non Recourse

Yes

1%+app+legal

Yes

Yes

May-17

May-27

4.75%

ACCT NO: 0830590000005AMENITIES

$1,947,000

360

$7,707

PROPERTY INFORMATION TAXING AUTHORITY - HARRIS COUNTYEXISTING MORTGAGE

* 2019 Tax Valuation under protest

COLLECTIONS

PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.

PROPERTY HIGHLIGHTS

$16,000

$16,200

$16,400

$16,600

$16,800

$17,000

$17,200

$17,400

$17,600

The Murworth Apartments, is a two story, garden-style, apartment community located in the Medical Center submarket of Houston,Texas. The asset was built in 1955.

Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. Per seller, the asset

was extremely remodeled in 2016 including new roofs, windows, appliances, granite, cabinets, doors, electrical etc.

The Texas Medical Center is one of the largest employment generators in Houston, currently undergoing a $3 billion expansion. The area incomes are maybe 50% higher than Houston averages. In the long term, the real value here is in the land. A buyer could control this asset and in the long term, look to redevelop with a denser development. The Wall Street Journal predicts that the Houston apartment market will be the strongest in the United States for the next five years. Please ask the broker for a copy of this article and the recent Houston Chronicle article about Houston job growth! Seller recommends that the ownership entity be purchased in order to avoid a major tax bump. Per owner, as of 9/17 there is only 1 vacant unit.

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.

MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025 Unit Mix

Unit Floor Type No. Units Sq Ft Total SqFtMarket

RentTotal Rent Rent/SF

1 Bed/1 Bath 20 525 10,500 $1,125 $22,500 $2.14

20 525 10,500 $1,125 $22,500 $2.14

UNIT MIX SEPTEMBER 2019

TOTALS AND AVERAGESTotal

Units

Average

Sq. Ft.

Total Sq.

Feet

Average

Rent/UnitTotal Rent Average Rent/ SF

Community Amenities

Apartment AmenitiesAir Conditioning Cable Ready Ceiling Fans Designer Cabinetry Dishwasher Electric Thermostat Energy-efficient Stainless Steel Appliances Full-size Washer and Dryer in Home Granite Countertops Microwave Refrigerator Some Paid Utilities Window Coverings Wood-style Flooring * In Select Apartment Homes

Controlled Access Gates Covered Parking Courtyard

PROPERTY LOCATION


RENT COMPARABLESMURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025

1 Oaks of Charleston

16 Charleston Park Dr

2 Broadmead

2801 Broadmead

3 Brompton Court

7510 Brompton Rd

4 2111 Holly Hall

2111 Holly Hall

5 Terraces on Brompton

7315 Brompton

*Resident Pays E(Electric), W(Water), G(Gas)

Totals/Averages Comps 1973 85% 481 823 $1,014 $1.232

Murworth

3611 Murworth

Sub-Market Averages(Medical Center) 90% 23,972 883 $1,329 $1.505

Houston Market Avgs 89% 638,603 882 $984 $1.116

RENT COMPARABLES (2019 ADS) Sorted by Avg Rent/Unit

1.215

1970 92% 362 733 $1,086 EWG 1.481

1971

$2.1431955 95% 20 525 $1,125 EWG

90% 569 906 $1,101 EW

1.298

1973 61% 792 923 $951 EWG 1.030

1979 91% 235 763 $990 EWG

P/SF

1970 90% 448 790 $899 EW 1.138

Property Name Yr Blt Occ #Units Avg SF Avg Rent EWG

3

2

1

4

5

SALES COMPARABLESMURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025

1 4115 Drake

4115 Drake

2 Aspire at 610

8900 Lake of 610

3 Equinox

2950 Old Spanish Trail

4 Advenir at the Med Center

9955 Buffalo Speedway

5 The Connection at Buffalo Pointe

10201 Buffalo Speedway

Totals/Averages Comps $38,332,800 217,933 $152,511 $186.31 2000 251

Murworth

3611 Murworth

12/16 $52,300,000 300,058 $148,580 $174.30 2012 352

4/17 $45,904,000 281,188 $151,000 $163.25 2008 304

9/16 $43,200,000 255,248 $135,000 $169.25 2001 320

7/19 $2,320,000 10,201 $145,000 $227.43 1962 16

3/19 $47,940,000 242,968 $182,977 $197.31 2018 262

SALES COMPARABLES

Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Units

MARKET 10,500 1955 20

Built

1

4

3

2

5


DEMOGRAPHICS

1 Mile Radius

3 Mile Radius 5 Mile Radius

2019 Estimated Population 19,226 65,727 133,3152024 Projected Population 19,784 67,557 136,6892010 Census Population 18,135 59,355 119,7512000 Census Population 17,317 53,235 109,236

Projected Annual Growth 2019 to 2024 0.6% 0.6% 0.5%Historical Annual Growth 2000 to 2019 0.6% 1.2% 1.2%

2019 Median Age 35.5 35.0 35.7

2019 Estimated Households 9,004 30,969 62,4202024 Projected Households 9,610 32,985 66,3592010 Census Households 8,106 26,648 53,4112000 Census Households 7,810 24,297 49,771

Projected Annual Growth 2019 to 2024 1.3% 1.3% 1.3%Historical Annual Growth 2000 to 2019 0.8% 1.4% 1.3%

2019 Estimated White 49.2% 55.8% 58.1%2019 Estimated Black or African American 23.8% 18.5% 15.7%2019 Estimated Asian or Pacific Islander 15.9% 16.1% 17.5%2019 Estimated American Indian or Native Alaskan 0.4% 0.4% 0.3%2019 Estimated Other Races 10.7% 9.2% 8.4%

2019 Estimated Hispanic 23.2% 23.2% 21.7%

2019 Estimated Average Household Income $140,883 $150,226 $157,5372019 Estimated Median Household Income $83,058 $89,593 $93,3432019 Estimated Per Capita Income $66,005 $70,816 $73,862

2019 Estimated Elementary (Grade Level 0 to 8) 4.3% 2.8% 2.4%2019 Estimated Some High School (Grade Level 9 to 11) 3.9% 2.9% 2.3%2019 Estimated High School Graduate 13.2% 9.7% 8.6%2019 Estimated Some College 13.5% 12.5% 13.1%2019 Estimated Associates Degree Only 4.8% 4.3% 4.8%2019 Estimated Bachelors Degree Only 26.3% 29.6% 30.0%2019 Estimated Graduate Degree 34.1% 38.3% 38.8%

2019 Estimated Total Businesses 900 3,630 13,3182019 Estimated Total Employees 7,553 39,978 272,9922019 Estimated Employee Population per Business 8.4 11.0 20.52019 Estimated Residential Population per Business 21.4 18.1 10.0

INC

OM

EE

DU

CA

TIO

N

(AG

E 2

5+

)B

US

INE

SS

HO

US

EH

OL

DS

RA

CE

AN

D E

TH

NIC

ITY

P

OP

UL

AT

ION 38%

19%

12%

8%

23%

White Black Asian Other Hispanic

$140,883

$72,073

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Subject Houston

76.8%

23.2%

Non-Hispanic

Hispanic

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY

N/A

broker's opinion of value · residents enjoy ample amenities which include: mini-blinds,...

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