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CALL FOR OFFERSMULTIFAMILY INVESTMENT OPPORTUNITY
152 UNIT APARTMENT COMPLEX
Exclusive OfferingCherry Tree Hill Apartments2050 Old Clinton Road | Macon, GA 31211
Commercial Real Estate Services, Worldwide.
TABLE OF CONTENTS
3. Offering
4. Market
9. Location
11. Investment Highlights
24. Financial Analysis
27. Valuation
OFFERING SUMMARY
Cherry Tree Hill Apartments2050 Old Clinton RoadMacon, GA 31211
SALE PRICETo Be Determined By Market
CALL FOR OFFERS DATEJuly 12, 2017
PROPERTY VISITS
OFFER SUBMISSIONPlease submit offers directly to NAI Earle Furman in the form of a non-binding letter-of-Intent (“LOI”).
OFFERING
DEBT PARAMETERSDebt Assumption
Interested parties are required to schedule property tours directly through NAI Earle Furman. Under no circumstances should the property or seller be contacted directly. Please contact one of our Brokers to schedule a tour.
3 | Offering
Bern DuPree NAI Earle Furman, LLC 864 678 [email protected]
Gwinna Cahal NAI Earle Furman, LLC 864 678 [email protected]
James Dasher Coldwell Banker [email protected]
Kay Hill NAI Earle Furman, LLC 864 678 [email protected]
Tony Bonitati
NAI Earle Furman, LLC 864 678 5994 [email protected]
MACON, GEORGIA
4 | Market
MACON, GEORGIA
Macon lies near the geographic center of the state, approximately 85 miles (137 km) south of Atlanta, hence the city’s nickname “the Heart of Georgia.”
Cherry Tree Hill is located in Bibb County in the city of Macon. Bibb County is located in the Macon Metropolitan Statistical Area (MSA). The MSA is comprised of Bibb, Monroe, Jones, Crawford, and Twiggs Counties.
The city has several institutions of higher education, as well as numerous museums and tourism sites. Macon is considered the center for transportation, communication, medical facilities, retail trade, and industry for Central Georgia. The Macon economy is also closely tied to the Robins Air Force Base in neighboring Houston County; the state’s largest industrial complex employing more than 25,000 civilian, contractor, and military members.
5 | Market
CHERRY TREE HILL
75 Miles
150 Miles
6 | Market
TOP EMPLOYERS - MACON /BIBB COUNTYThe Boeing Corporation
Mercer University
Medical Center, Navicent Health
7 | Market
Company Product/ServiceNumber ofEmployees
Medical Center of Central Georgia Hospital 6,200
GEICO Insurance 5,000
Bibb County Board of Education Public Education 3,700
Coliseum Health System Hospital 1,400
City of Macon Government 1,142
Mercer University Private Education 900
Bibb County County Government 780
YKK (USA) Zippers & Vinyl Windows Mfg. 750
Wal-Mart Super Stores Retail 740
United States Postal Service Postal Service 600
Georgia Farm Bureau Insurance 525
Graphic Packaging Corporation Coated & Container Board 500
The Boeing Company Components Manufacturing 486
IKON Office Solutions Sales, Service & Finance 454
8 | Market
TOP EMPLOYERS - BIBB COUNTY
CHERRY TREE HILL
9 | Location
OLD
CLIN
TON R
OAD
AERIAL PHOTO
10 | Location
Northeast High School
ApplingMiddleSchool
Jones Elementary
School
Gra
y H
wy
Shurling Dr.
11 | Location
AREA MAP
SiteVPD:
23,600
VPD: 25,430
Downtown3.1 miles
CHERRY TREE HILL
12 | Investment Highlights
PROPERTY SPECS
SITE ADDRESSCherry Tree Hill Apartments2050 Old Clinton RoadMacon, GA 31211
LOCATION
Located just minutes northeast of downtown Macon, Cherry Tree Hill has excellent accessibility to two interstates, a variety of retail, and the Macon CBD. Nearby Gray Highway, one of Macon’s major arteries, provides residents with a direct connection to downtown Macon, Interstate 16 / Interstate 75, and numerous retail options including a Wal-Mart Supercenter, all under three miles from the property.
Residents enjoy superior regional connectivity via Interstates 16 and 75. Interstate 75 offers a direct commute 75 miles north to Atlanta, and Interstate 16 connects residents to Savannah and its prolific port, 150miles to the southeast.
SITE SIZE & DENSITYCherry Tree Hill Apartments comprises a 12.66 acre site developed with 152 apartment units.
PARKING (SOURCE: COSTAR)Parking is provided via 300 free surface spaces (2.0 per unit).
YEAR BUILT1983
Built in 1983, Cherry Tree Hill benefits from durable construction featuring brick exteriors with wood accents, pitched roofs, and exterior hallways. The asset’s well-maintained condition combined with its mature landscaping and enduring architecture provides attractive curb appeal to prospective tenants.
The property has a full swim/tennis amenity package with a stand alone clubhouse/leasing office, tennis court,swimming pool, and laundry facility.
PROPERTY HIGHLIGHTS
13 | Investment Highlights
UNIT INFORMATION
UTILITIES
UNIT MIX
KITCHENS
• Dishwasher• Stove• Garbage disposal• Refrigerator• Large pantries• Breakfast bar• Oversized closets• Central heat and air• Reserved parking• Playground• Swimming pool and tennis court• Camera security system
Utility Provider Paid ByWater / Sewer Bibb County ResidentElectricity GA Power ResidentCable Winstream Resident
Unit Type Units Avg SF Rent/Unit Rent/SF1 Bed / 1 Bath 64 588 $451 $0.762 Bed / 1 Bath 88 840 $551 $0.65Totals/Average 152 734 $509 $0.69
Three one-bedroom and eight two-bedroom fire/water damaged units have been renovated with white cabinets, faux-granite laminate countertops, and new carpet and vinyl. A new owner could institute a low-cost renovation program and push rents at Cherry Tree Hill. We estimate a $3,500 renovation budget would produce up to $100 per month rental increase producing a blended ROI of 30%.
Other amenities include:
14 | Investment Highlights
INTERIOR UNIT UPGRADESAchieve the greatest return on investment by continuing the interior unit upgrades already in process.
ROI
RENT PREMIUM
Per unit / 2 Bedroomspotential rent premium
$100
Full Upgrade: $3,500Rent Premium Annual: $1,20030%
*New Appliances $1,000*New Flooring $1,000*New Fixtures & Hardware $1,000*Countertops $ 500Total $3,500*Estimates
Proven Rental Premiums with:
VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE
$75
15 | Investment Highlights
Per unit / 1 Bedroompotential rent premium
$0
$100
$200
$300
$400
$500
$600
$700
1 BR - 1 BTH 1 BR - 1 BTH - Renovated 2 BR - 1 BTH 2 BR - 1 BTH - W/D Conn. 2 BR - 1 BTH - W/D Conn. -Renovated
$450 $525 $550 $560
$650
Cherry Tree Hill - Interior Renovation Potential
16 | Investment Highlights
$71,000
$72,000
$73,000
$74,000
$75,000
$76,000
$77,000
$78,000
January February March April May June July August September October November December
Gross Potential Rent Growth
Series1
Gross Potential Rent Growth
Interior Renovation Potential
VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE
$100 per month increase with $3,500 Renovation Cost ROI of 34%
$75 per month increase with $3,500 Renovation Cost ROI of 26%
2
3
4
PROPERTY TOTAL UNITS
YEAR BUILT
AVG. SF/ UNIT
AVG. RENT/ UNIT
RENT/ SQ. FT.
Cherry Tree Hill Apartments 152 1983 734 $509 $0.69
1 Highland Hills Apartments 241 1971 1,244 $656 $0.532 The Cliffs of Macon Apartments 142 1972 1,083 $730 $0.673 Overlook Gardens Apartments 184 1988 1,025 $646 $0.634 River Park Apartments 232 1977 / 2016 1,043 $631 $0.60
Averages 200 1977 1,099 $666 $0.61
RENT COMPS
17 | Investment Highlights
HIGHLAND HILLS
RIVER PARK
THE CLIFFS
OVERLOOK GARDENS
Cherry Tree Hill
1
RENT COMPSHighland Hills The Cliffs of Macon
Bed/Bath Units Avf SF Avg Rent Per/SF
1 Bed / 1Bath 40 864 $520 $0.60
2 Bed / 1.5 Bath 2 1,142 $599 $0.52
2 Bed / 1.5 Bath 60 1,220 $599 $0.492 Bed / 2 Bath 60 1,175 $633 $0.542 Bed / 2 Bath 1 1,187 $633 $0.533 Bed / 2 Bath 40 1,257 $730 $0.583 Bed / 2.5 Bath 2 1,493 $836 $0.56
3 Bed / 2.5 Bath 36 1,798 $850 $0.47
Total/Avg 241 1,244 $656 $0.53
Year Built: Total Units: Property Type: Total Area (SF):
1971241 Garden 297,041 SF
2275 Gray HwyMacon, GA 31211
Unit Mix and Rental Rates
Unit Breakdown Features & AmenitiesBalconyStorage SpaceFully Equipped KitchenFireplaceWalk-In ClosetsPicnic Area/PlaygroundPoolTennis CourtSport Court
Unit Mix and Rental Rates
Year Built: Total Units: Property Type: Total Area (SF):
1972 142Garden 157,412 SF
1895 Clinton RoadMacon, GA 31211
Bed/Bath Units Avg SF Avg Rent Per/SF
1 Bed / 1 Bath 37 750 $579 $0.77
2 Bed / 2 Bath 35 1,000 $649 $0.65
3 Bed / 2 Bath 35 1,200 $757 $0.63
4 Bed / 2 Bath 35 1,400 $942 $0.67
Total/Avg 142 1,083 $730 $0.67
1 Bedroom26%
2 Bedroom24%
3 Bedroom25%
4 Bedroom25%
Unit Breakdown Features & AmenitiesGatedFull Equipped KitchenCrown MoldingBalconyLaundry FacilitiesPoolPlaygroundPicnic AreaFitness CenterClubhouse/Grill
1 2
18 | Investment Highlights
1 Bedroom17%
2 Bedroom51%
3 Bedroom32%
RENT COMPSOverlook Gardens River Park
Unit Mix and Rental Rates
Year Built: Total Units: Property Type: Total Area (SF):
1977/2016 232 Garden 240,000 SF
700 Tidewater CircleMacon, GA 31211
Bedrooms Units Avg SF Avg Rent Per/SF
1 Bed / 1 Bath 64 760 $555 $0.73
2 Bed / 1 Bath 54 1,081 $645 $0.60
2 Bed / 2 Bath 38 1,083 $670 $0.62
3 Bed / 2 Bath 76 1,235 $666 $0.54
Total/Avg 232 1,043 $631 $0.60
1 Bedroom27%
2 Bedroom40%
3 Bedroom33%
Unit Breakdown Features & Amenities
Fitness CenterLaundry ServicePoolAir ConditioningDishwasherRefrigerator
3 4
Year Built: Total Units: Property Type: Total Area (SF):
1988 184 Garden 253,576 SF
1400 Gray HwyMacon, GA 31211
Unit Mix and Rental Rates
BalconyCeiling FansGatedVolleyball CourtClubhouseGrillLaundry FacilitiesPlaygroundPool
Bed/Bath Units Avg SF Avg Rent Per/SF
1 Bed / 1 Bath 45 733 $529 $0.72
2 Bed / 1 Bath 32 971 $604 $0.62
2 Bed / 2 Bath 61 1,094 $664 $0.61
3 Bed / 2 Bath 46 1,255 $764 $0.61
Total/Avg 184 1,025 $646 $0.63
1 Bedroom24%
2 Bedroom51%
3 Bedroom25%
Unit Breakdown Features & Amenities
19 | Investment Highlights
Copyrighted report licensed to NAI Earle Furman LLC - 751500.6/2/2017
Page 1
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3
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PROPERTY TOTAL UNITS
YEAR BUILT
SALE DATE
SALE PRICE
Price/Unit
Cherry Tree Hill 152 1983 TBD TBD TBD1 Magnolia Crossing Apartments 116 1980 7/31/2015 $4,200,000 $36,2072 Ashley Woods Apartments 96 1984 4/8/2015 $3,300,000 $34,3753 Chambers Cove Apartments 72 1990 10/16/2015 $1,900,000 $26,3894 Creekside Vistas Apartments 100 1973 12/20/2016 $2,250,000 $25,5005 Park Slope Apartments 96 1971 6/27/2016 $2,200,100 $22,9186 Carriage Hills Apartments 160 1977 1/9/2015 $3,800,000 $23,750
Averages 113 2,941,683 $28,190
4
5
SALE COMPS
6
Cherry Tree Hill
20 | Investment Highlights
MAGNOLIA CROSSING
ASHLEY WOODS
CHAMBERS COVE
CREEKSIDE VISTAS
CARRIAGE HILLS
PARK SLOPE
SALE COMPS21
Unit Breakdown
Unit Mix and Rental Rates
Features & Amenities
Sale Information
21 | Investment Highlights
Ashley Woods Apartments
Unit Breakdown
Unit Mix and Rental Rates
Features & Amenities
Sale Information
Year Built: Total Units: Property Type: Total Area (SF):
1984 96 Garden 84,000 SF
3900 Northside DriveMacon, Georgia 31210
• Sale Date: 4/8/2015• Price/Unit: $34,375
• Sale Price: $3,300,000
Bed/Bath Units SF Avg Rent Per/SF
1 Bed / 1 Bath 72 800 $572 $0.72
2 Bed / 2 Bath 24 1,100 $928 $0.61
Total/Avg 96 875 $597 $0.68
1 Bedroom75%
2 Bedroom25%
BalconyWalk-In ClosetsCabanaGatedPoolPlaygroundBusiness CenterProperty Manager on Site
Magnolia Crossing Apartments
Year Built: Total Units: Property Type: Total Area (SF):
1980 116 Garden 136,740 SF
461 Forest Hill RoadMacon, GA 31210
• Sale Date: 7/31/2015• Price/Unit: $36,206
Bed/Bath Units SF Avg Rent Per/SF
2 Bed / 1 Bath 24 1,100 $525 $0.48
2 Bed / 1.5 Bath 65 1,100 $620 $0.56
3 Bed / 2 Bath 16 1,300 $625 $0.48
3 Bed / 2.5 Bath 10 1,540 $760 $0.49
4 Bed / 4 Bath 1 2,200 $1,200 $0.55
Total/Avg 116 1,175 $618 $0.53
2 Bedroom77%
3 Bedroom22%
4 Bedroom1%
Ceiling FansEat-in KitchenFireplaceDining RoomClubhouseMaintenance on sitePlaygroundPoolHealth Club Discount
• Sale Price: $4,200,000
3
Unit Breakdown
Unit Mix and Rental Rates
SALE COMPS
Features & Amenities
Sale Information
4
Unit Breakdown
Unit Mix and Rental Rates
Features & Amenities
Sale Information
22 | Investment Highlights
Chambers Cove Apartments
Sale Information
Year Built: Total Units: Property Type: Total Area (SF):
208 Chambers Cove DriveMacon, Georgia 31206
1990 72 Garden 80,100 SF
• Sale Date: 10/16/2015• Price/Unit: $26,388
• Sale Price: $1,900,000
Bed/Bath Units SF Avg Rent Per/SF
2 Bed / 1.5 Bath 4 800
2 Bed / 2 Bath 16 900
2 Bed / 2 Bath 36 700
3 Bed / 2 Bath 16 1,00 675 $0.68
Total/Avg 72 817
2 Bedroom78%
3 Bedroom22%
DishwasherEat-in KitchenBalconyPoolClubhouseWasher/Dryer Hook-up
Creekside Vistas Apartments
Year Built: Total Units: Property Type: Total Area (SF):
1973 100 Garden 79,060 SF
4690 Log Cabin DriveMacon, GA 31204
• Sale Date: 12/20/2016• Price/Unit: $25,500
• Sale Price: $2,250,000
Bed/Bath Units SF Avg Rent Per/SF
1 Bed / 1 Bath 33 660 $530 $0.80
1 Bed / 1 Bath 35 710 $548 $0.77
2 Bed /1.5 Bath 32 1,015 $650 $0.64
Total/Avg 100 791 $575 $0.73
1 Bedroom68%
2 Bedroom32%
DishwasherBalconyAir ConditioningMaintenance on SiteWasher/Dryer Hook-up
5
Unit Breakdown
Unit Mix and Rental Rates
SALE COMPS
Features & Amenities
Sale Information
Carriage Hills Apartments6
Unit Breakdown
Unit Mix and Rental Rates
Features & Amenities
Sale Information
Year Built: Total Units: Property Type: Total Area (SF):
3871 Northside DriveMacon, Georgia 31210
1977 160 Garden 216,262 SF
• Sale Date: 1/9/2015• Price/Unit: $23,750
• Sale Price: $3,800,000
Bed/Bath Units SF Avg Rent Per/SF
1 Bed / 1 Bath 40 1,000 $665 $0.67
2 Bed / 1.5 Bath 88 1,175 $715 $0.61
3 Bed / 2 Bath 32 1,300 $799 $0.61
Total/Avg 160 1,156 $719 $0.62
2 Bedroom78%
3 Bedroom22%
BalconyCeiling FansPlaygroundPoolDishwasher Laundry Facilities
23 | Investment Highlights
Park Slope Apartments
Year Built: Total Units: Property Type: Total Area (SF):
4406 Chambers RoadMacon, Georgia 31206
1971 96 Garden 80,100 SF
• Sale Date: 6/27/2016• Price/Unit: $22,917
• Sale Price: $2,200,000
Bed/Bath Units SF Avg Rent Per/SF
1 Bed / 1 Bath 12 595
2 Bed / 1 Bath 72 836
3 Bed / 1.5 Bath 12 1,064
Total/Avg 96 834
1 Bedroom12%
2 Bedroom75%
3 Bedroom13%
DishwasherCarpetDisposalWalk-in ClosetProperty Manager on SiteTrash Pick-up Door to Door
24 | Financial Analysis
CHERRY TREE HILL
FINANCIAL ANALYSIS
25 | Financial Analysis
December 2016 March 2017 NAI Multifamily Extended Proforma
Revenue Actual T-6 Revenue/T-12 Expenses Proforma - Year 1 Year 2 Year 3 Year 4 Year 5
Total Per Unit Total Per Unit Total Per Unit Total Total Total TotalGROSS POTENTIAL RENT
Market Rent $825,970 $5,434 $846,864 $5,571 $945,420 $6,220 $945,420 $964,328 $983,615 $1,003,287 Gain/(Loss) to Lease $0 $0 $0 $0 ($45,436) ($299) ($539) $0 $0 $0
TOTAL GROSS POTENTIAL RENT $825,970 $5,434 $846,864 $5,571 $899,984 $5,921 $944,881 $964,328 $983,615 $1,003,287 DEDUCTIONS
Vacancy Loss ($41,377) ($272) ($57,103) ($376) ($56,725) ($373) ($56,725) ($57,860) ($59,017) ($60,197)Employee/Courtesy Officer ($5,400) ($36) ($5,400) ($36) ($5,400) ($36) ($5,400) ($5,400) ($5,400) ($5,400)Bad Debt-Rent Write-Off ($4,081) ($27) ($1,392) ($9) ($4,500) ($30) ($4,724) ($4,822) ($4,918) ($5,016)
TOTAL DEDUCTIONS ($50,858) ($335) ($63,894) ($420) ($66,625) ($438) ($66,850) ($68,081) ($69,335) ($70,614)NET RENTAL INCOME $775,112 $5,099 $782,970 $5,151 $833,359 $5,483 $878,031 $896,247 $914,280 $932,674
OTHER INCOMELate Fees $22,338 $147 $18,580 $122 $19,000 $125 $19,000 $19,000 $19,000 $19,000
Laundry Income $5,281 $35 $3,452 $23 $5,000 $33 $5,000 $5,000 $5,000 $5,000 Lease Termination Income $9,640 $63 $6,800 $45 $7,500 $49 $7,500 $7,500 $7,500 $7,500
Other Income $14,979 $99 $14,696 $97 $14,750 $97 $14,750 $14,750 $14,750 $14,750 TOTAL OTHER INCOME $52,238 $344 $43,528 $286 $46,250 $304 $46,250 $46,250 $46,250 $46,250
TOTAL REVENUE $827,349 $5,443 $826,498 $5,437 $879,609 $5,787 $924,281 $942,497 $960,530 $978,924 EXPENSESPayroll $145,966 $960 $147,799 $972 $147,799 $972 $147,799 $147,799 $147,799 $147,799
Management Fees $23,870 $157 $19,958 $131 $35,184 $231 $36,971 $37,700 $38,421 $39,157 Administrative Expense $19,000 $125 $15,285 $101 $30,400 $200 $30,400 $30,400 $30,400 $30,400
Marketing $8,090 $53 $7,229 $48 $18,000 $118 $18,000 $18,000 $18,000 $18,000 Utilities $72,470 $477 $67,653 $445 $69,682 $458 $71,773 $73,926 $76,144 $78,428
Contract Services $25,831 $170 $25,052 $165 $25,052 $165 $25,052 $25,052 $25,052 $25,052 Repairs & Maintenance $69,911 $460 $65,535 $431 $91,200 $600 $93,936 $96,754 $99,657 $102,646
Taxes $31,258 $206 $31,818 $209 $58,128 $382 $58,128 $58,128 $58,128 $58,128Insurance $19,904 $131 $22,359 $147 $38,000 $250 $38,380 $38,764 $39,151 $39,543
TOTAL EXPENSES $416,300 $2,739 $402,688 $2,649 $513,446 $3,378 $520,440 $526,523 $532,753 $539,154
NET OPERATING INCOME $411,050 $2,704 $423,809 $2,788 $366,163 $2,409 $403,842 $415,974 $427,777 $439,770
Reserves 54,108 $356 $54,108 $356 $54,108 $356 $54,108 $54,108 $54,108 $54,108
NET OPERATING INCOME (AFTER RESERVES) $356,942 $2,348 $369,701 $2,432 $312,055 $2,053 $349,734 $361,866 $373,669 $385,662
T-3 Revenue/T-12 Expenses NOI Adjusted for increase in taxes $343,392
ASSUMPTIONS - REVENUE & EXPENSES
LOSS TO LEASE
MARKET RENT
Market Rents are based on a survery of market comparable properties (included in this package).
EMPLOYEE/COURTESY OFFICER UNITS
Loss to Lease represents the difference between Market Rent and current in place rents. Proforma rent growth assumes that rents are increased $30 at renewal and brought to market rent at turnover.
Employees Concessions are based on historical performance and are set at $450 per month.
MANAGEMENT FEESManagement Fees are assumed to be 4% of Total Revenue.
VACANCY LOSSVacancy is assumed to be 6% and is based on historical performance.
REPAIRS AND MAINTENANCERepairs and Maintenance is assumed to be $600 per unit per year.
TAXESTaxes are estimated to increase at point of sale. NAI Earle Furman and its associates are not tax professionals. Purchaser should consult with a tax professional to determine estimated taxes.
ADMINISTRATIVE EXPENSEAdministrative Expense is assumed to be $200 per unit per year.
BAD DEBT
Bad Debt is assumed to be 0.5% which is consistent with historical performance.
OTHER INCOMEOther Income is based on historical performance.
PAYROLL AND RELATED EXPENSESPayroll and Related Expenses is based on historical performance.
MARKETING EXPENSEMarketing is assumed to be $1,500 per month.
UTILITIESUtilities is based on historical performance and is assumed to increase at a rate of 3% per year.
INSURANCEInsurance is estimated to be $250 per unit per year.
RESERVES FOR REPLACEMENTReserves for Replacement are $54,108 per year as required under the current loan terms.
26 | Financial Analysis
KEY VALUATION CONSIDERATIONS
• Cherry Tree Hill is being offered for sale with the assumption of a Freddie Mac non-recourse loan. The note is an SBA loan and does not allow for a supplemental.
• The note terms are as follows:
LENDING REQUIREMENTS
o Origination Date: November 6, 2013o Original Balance: $2,500,000o Rate: 4.81%o Maturity Date: December 1, 2023
• Please contact NAI Earle Furman for further information regarding all aspects of the debt parameters.
27 | Valuation