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MULTIFAMILY PORTFOLIO PROPERTY FOR SALE
OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N. MARSALIS, DALLAS, TX 75203
MATTEO FAETH
Presented By
PERRY GUEST COMPANY
2517 Thomas Avenue, Dallas, TX 75201
214.528.9250 | management.perryguest.com
CONFIDENTIAL OFFERING MEMORANDUM | 2
OFFERING SUMMARY
Sale Price: $2,592,000
Number Of Units: 32
Cap Rate: 5.68%
NOI: $147,249
Lot Size: 0.67 Acres
Building Size: 19,088
Price / SF: $135.79
Price / Door: $81,000.00
2 building value add portfolio located in the up and coming neighborhood Oak Cliff, Dallas, TX now available for sale. Theportfolio consists of 2 buildings, 32 units, 19,088 square feet of rent-able square footage, and over half an acre of land. Thebuildings are located in the opportunity zone. This is a value add deal where you will need to renovate the exterior/interiorto increase rents. The buildings are currently all bills paid so there is an opportunity to bill back for utilities. Both propertiesare on hard corners with great exposure on Marsalis. The area is improving year after year. HEB foods purchased a largetract of land where they plan on building a Central Market. Also Centre Homes has purchased several tracts of land in thearea with the intent of building brand new apartments.
PROPERTY OVERVIEW
PROPERTY HIGHLIGHTS
• Value Add Properties
• Opportunity Zone
• Properties have great exposure
OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N MARSALIS, DALLAS, TX 75203
EXECUTIVE SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM | 3
OPPORTUNITY ZONE DESCRIPTION
Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017 and designated in April of 2018.The Zones are designed to spureconomic development by providing tax benefits to investors. An Opportunity Zone is an economically-distressed area where new investments, under certainconditions, may be eligible for preferential tax treatment. Areas designated as Opportunity Zones were nominated by the state and certified by the Secretary of theU.S. Treasury via delegation authority to the Internal Revenue Service. You can read more about Opportunity Zones at the Internal Revenue Service FrequentlyAsked Questions (FAQ) page on Opportunity Zones.
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
OPPORTUNITY ZONE INFORMATION
CONFIDENTIAL OFFERING MEMORANDUM | 4
LOCATION DESCRIPTION
Given that it’s now one of the hottest neighborhoods in the Dallas-Fort Worth area, it’s hard to imagine North Oak Cliff wasn’t always a bastion of cool. For decades, after itslongtime residents fled to the suburbs in the 1970s, the area directly southwest of downtown Dallas languished. But then, something began to change.
Starting with the restoration of the Belmont Hotel around 2004, the rebirth of this once-abandoned section of town -- colloquially bounded by Fort Worth Avenue, I-35, IllinoisAvenue, and Westmoreland Road -- really began to pick up steam (somewhat ironically) in the midst of the economic downturn of 2009. Centered around the Bishop ArtsDistrict, empty storefronts were reimagined as rustic restaurants, which helped turn the neighborhood into a foodie’s paradise, and long-vacant theaters reopened as venues formusic and art.
Slowly, the unique character and landscape of North Oak Cliff helped revive the neighborhood; as of 2015, it had grown to an estimated population of 72,000 with a medianresident age of 32 years old. Meet some of the places and people that helped make this rebirth a reality.
Central Market - The purchase was made "in anticipation of our future expansion needs," said Mabrie Jackson, director of public affairs for Central Market/H-E-B in Dallas. "Weare evaluating our options for this evolving and unique location," Jackson said.
There are no firm plans yet for developing the property, she said, but the property was purchased with a Central Market store in mind, not an H-E-B store. The parcel had houseda transportation building for Dallas County Schools and was then bought by Crescent Communities, a North Carolina-based developer that's building an apartment complexacross the street.
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
OAK CLIFF
INCOME SUMMARY PER DOOR
Rental Income $321,600 $10,050
5% Vacancy -$16,080 -$502
Electricity Reimbursements $15,019 $469
Gross Income $320,539 $10,016
EXPENSE SUMMARY PER DOOR
Repairs and Maintenance $24,969 $780
Utilities $46,971 $1,467
Administrative $41,710 $1,303
Legal, Finance, and Insurance $14,000 $437
Taxes $45,640 $1,426
Gross Expenses $173,290 $5,415
Net Operating Income $147,249 $4,601
CONFIDENTIAL OFFERING MEMORANDUM | 3
OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N MARSALIS, DALLAS, TX 75203
INCOME & EXPENSES
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 11
722 N MARSALIS BUILDING DETAILS
Wiring: Copper
Plumbing: Cast Iron
HVAC: Window Units/Wall Heaters
Roof: Composition
Foundation: Pier and Beam
Electric Metering: Separate
Gas Metering: Separate
Water Metering: Master
722 N MARSALIS BUILDING SUMMARY
Number of Units: 16
Year Built: 1955
Lot Size: 16,997 SF
Building Size: 9,760SF
NOI: $75,050
Occupancy: 88%
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
722 N MARSALIS PROPERTY SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM | 1
OAK CLIFF 2 BUILDING PORTFOLIO722 N MARSALIS, DALLAS, TX
ADDITIONAL PHOTOS
INCOME SUMMARY PER DOOR
Rental Income $163,200 $10,200
5% Vacancy -$8,160 -$510
Gross Income $155,040 $9,690
EXPENSE SUMMARY PER DOOR
Repair and Maintenance $11,815 $738
Utilities $16,489 $1,030
Administrative $21,666 $1,354
Legal, Finance, and Insurance $7,200 $450
Taxes $22,820 $1,426
Gross Expenses $79,990 $4,999
Net Operating Income $75,049 $4,690
CONFIDENTIAL OFFERING MEMORANDUM | 1
722 N MARSALISOAK CLIFF - DALLAS, TX 75203
PROFORMA INCOME & EXPENSES
UNIT
NUMBER
UNIT
BED
UNIT
BATH
UNIT
SIZE (SF)
LEASE
START
LEASE
END
CURRENT
RENT
CURRENT
RENT (PER SF)
MARKET
RENT
MARKET
RENT/SF
101 1 1 610 $800 $1.31 $850 $1.39
102 1 1 610 5/6/2019 5/6/2020 $725 $1.19 $850 $1.39
103 1 1 610 $800 $1.31 $850 $1.39
104 1 1 610 8/23/2019 8/15/2020 $805 $1.32 $850 $1.39
105 1 1 610 $725 $1.19 $850 $1.39
106 1 1 610 10/24/2018 10/31/2019 $725 $1.19 $850 $1.39
107 1 1 610 5/31/2019 6/30/2020 $650 $1.07 $850 $1.39
108 1 1 610 7/3/2019 7/2/2020 $725 $1.19 $850 $1.39
201 1 1 610 11/3/2018 10/31/2019 $800 $1.31 $850 $1.39
202 1 1 610 6/7/2019 6/6/2020 $800 $1.31 $850 $1.39
203 1 1 610 $725 $1.19 $850 $1.39
204 1 1 610 MTM MTM $805 $1.32 $850 $1.39
205 1 1 610 6/3/2019 5/31/2020 $725 $1.19 $850 $1.39
206 1 1 610 6/4/2019 6/6/2020 $725 $1.19 $850 $1.39
207 1 1 610 5/6/2019 4/30/2020 $725 $1.19 $850 $1.39
208 1 1 610 7/12/2019 7/31/2020 $725 $1.19 $850 $1.39
Totals/Averages 9,760 $11,985 $1.23 $13,600 $1.39
CONFIDENTIAL OFFERING MEMORANDUM | 2
722 N MARSALISOAK CLIFF - DALLAS, TX 75203
RENT ROLL
UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF
1 br / 1 ba 16 100.0 610 $749 $1.23 $850 $1.39
Totals/Averages 16 100% 9,760 $11,984 $1.23 $13,600 $1.39
CONFIDENTIAL OFFERING MEMORANDUM | 3
722 N MARSALISOAK CLIFF - DALLAS, TX 75203
UNIT MIX SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 12
800 N MARSALIS BUILDING DETAILS
Wiring: Aluminum
Plumbing: Cast Iron
HVAC: Two Pipe Chiller
Roof: Composition -2018
Foundation: Pier and Beam
Electric Metering: Master
Gas Metering: Master
Water Metering: Master
800 N MARSALIS BUILDING SUMMARY
Number of Units: 16
Year Built: 1963
Lot Size: 12,000 SF
Building Size: 9,328 SF
NOI: $67,980
Occupancy: 88%
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
800 N MARSALIS PROPERTY SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM | 2
OAK CLIFF 2 BUILDING PORTFOLIO800 N MARSALIS, DALLAS, TX
ADDITIONAL PHOTOS
INCOME SUMMARY PER DOOR
Rental Income $158,400 $9,900
5% Vacancy -$7,920 -$495
Electricity Reimbursement $10,800 $675
Gross Income $161,280 $10,080
EXPENSE SUMMARY PER DOOR
Repairs and Maintenace $13,154 $822
Utilities $30,482 $1,905
Administrative $20,044 $1,252
Legal, Finance, and Insurance $6,800 $425
Taxes $22,820 $1,426
Gross Expenses $93,301 $5,831
Net Operating Income $67,978 $4,248
CONFIDENTIAL OFFERING MEMORANDUM | 1
800 N MARSALISOAK CLIFF - DALLAS, TX 75203
PROFORMA INCOME & EXPENSES
UNIT
NUMBER
UNIT
BED
UNIT
BATH
UNIT
SIZE (SF)
LEASE
START
LEASE
END
CURRENT
RENT
CURRENT
RENT (PER SF)
MARKET
RENT
MARKET
RENT/SF
SECURITY
DEPOSIT
101 1 1 583 MTM MTM $795 $1.36 $825 $1.42
102 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42
103 1 1 583 $750 $1.29 $825 $1.42
104 1 1 583 $750 $1.29 $825 $1.42
105 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42
106 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42
107 1 1 583 7/9/2019 7/4/2020 $805 $1.38 $825 $1.42
108 1 1 583 $725 $1.24 $825 $1.42
201 1 1 583 2/22/2019 4/30/2020 $725 $1.24 $825 $1.42
202 1 1 583 8/6/2019 8/31/2020 $750 $1.29 $825 $1.42
203 1 1 583 MTM MTM $725 $1.24 $825 $1.42
204 1 1 583 MTM MTM $785 $1.35 $825 $1.42
205 1 1 583 4/1/2019 3/31/2020 $805 $1.38 $825 $1.42
206 1 1 583 8/26/2019 7/31/2020 $805 $1.38 $825 $1.42
207 1 1 583 8/27/2019 7/31/2020 $805 $1.38 $825 $1.42
208 1 1 583 MTM MTM $725 $1.24 $825 $1.42
Totals/Averages 9,328 $12,200 $1.31 $13,200 $1.42 $0
CONFIDENTIAL OFFERING MEMORANDUM | 2
800 N MARSALISOAK CLIFF - DALLAS, TX 75203
RENT ROLL
UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF
1 br / 1 ba 16 100.0 583 $763 $1.31 $825 $1.42
Totals/Averages 16 100% 9,328 $12,208 $1.31 $13,200 $1.42
CONFIDENTIAL OFFERING MEMORANDUM | 3
800 N MARSALISOAK CLIFF - DALLAS, TX 75203
UNIT MIX SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 15
SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE
808 BlaylockDallas, TX75203
$1,100,000 8,812 SF $124.83 $78,571 - - 14 12/07/2017
939 MarsalisDallas, TX75203
$5,247,000 42,320 SF $123.98 $83,285 - - 63 01/26/2017
833 EwingDallas, TX75203
$1,000,000 8,660 SF $115.47 $71,428 - - 14 10/16/2018
PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE
Totals/Averages $2,449,000 19,931 SF $122.87 $80,745 - - 30.33
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OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
SALE COMPS SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 16
1 Dallas, TX75203
808 BLAYLOCK2 Dallas, TX
75203
939 MARSALIS3 Dallas, TX
75203
833 EWING
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
SALE COMPS MAP
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 17
RENT COMPS UNIT TYPE RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY %
939 MarsalisDallas, TX75203
1-1 $1.51 620 SF 620 SF 63 98%
404 E 9thDallas, TX75203
1-1 $1.73 550 SF 550 SF 26 100%
808 BlaylockDallas, TX75203
2-1 $1.31 800 SF 800 SF 14 93%
Totals/Averages $1.52 $1.52 657 SF 657 SF 34.33 97%
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2
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OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
RENT COMPS SUMMARY
CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 18
1 Dallas, TX75203
939 MARSALIS2 Dallas, TX
75203
404 E 9TH3 Dallas, TX
75203
808 BLAYLOCK
OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203
RENT COMPS MAP
POPULATION 1 MILE 2 MILES 3 MILES
Total population 13,904 46,695 106,400
Median age 31.1 32.0 31.2
Median age (male) 31.4 31.9 31.0
Median age (Female) 30.2 31.9 31.4
HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES
Total households 4,505 16,000 38,098
# of persons per HH 3.1 2.9 2.8
Average HH income $48,429 $53,900 $60,574
Average house value $40,979 $158,907 $142,107
* Demographic data derived from 2010 US Census
OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N MARSALIS, DALLAS, TX 75203
DEMOGRAPHICS MAP
CONFIDENTIAL OFFERING MEMORANDUM | 4
CONFIDENTIAL OFFERING MEMORANDUM | 5
CONFIDENTIALITY & DISCLAIMER
All materials and information received or derived from Perry Guest Company its directors, officers,agents, advisors, affiliates and/or any third party sources are provided without representation orwarranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack ofcompliance with applicable governmental requirements, developability or suitability, financialperformance of the property, projected financial performance of the property for any party’s intendeduse or any and all other matters.
Neither Perry Guest Company its directors, officers, agents, advisors, or affiliates makes anyrepresentation or warranty, express or implied, as to accuracy or completeness of the any materialsor information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct ofits own due diligence to determine these and other matters of significance to such party. Perry GuestCompany will not investigate or verify any such matters or conduct due diligence for a party unlessotherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including through appropriatethird party independent professionals selected by such party. All financial data should be verified bythe party including by obtaining and reading applicable documents and reports and consultingappropriate independent professionals. Perry Guest Company makes no warranties and/orrepresentations regarding the veracity, completeness, or relevance of any financial data orassumptions. Perry Guest Company does not serve as a financial advisor to any party regarding anyproposed transaction. All data and assumptions regarding financial performance, including that usedfor financial modeling purposes, may differ from actual data or performance. Any estimates of marketrents and/or projected rents that may be provided to a party do not necessarily mean that rents canbe established at or increased to that level. Parties must evaluate any applicable contractual andgovernmental limitations as well as market conditions,vacancy factors and other issues in order todetermine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions should bediscussed by the party with a title officer or attorney. Questions regarding the condition of theproperty and whether the property complies with applicable governmental requirements should bediscussed by the party with appropriate engineers, architects, contractors, other consultants andgovernmental agencies. All properties and services are marketed by Perry Guest Company incompliance with all applicable fair housing and equal opportunity laws.
OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N MARSALIS, DALLAS, TX 75203
DISCLAIMER