lakeridge apartments | phenix city, al · 12 matthews real estate investment servicestm annualized...

O F F E R I N G M E M O R A N D U M

LAKERIDGE APARTMENTSP H E N I X C I T Y , A L

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S T M2

P H E N I X C I T Y , A L 3

E X C L U S I V E LY L I S T E D B Y

A U S T I N G R A H A MA S S O C I A T E - M U L T I F A M I L Y

Direct +1.404.445.1091 Mobile +1.407.463.9752 [email protected] License No. SL3421373 (FL)

TA B L E O F C O N T E N T S04

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| P R O P E R T Y O V E R V I E W

| F I N A N C I A L A N A L Y S I S

| R E N T R O L L

| C O M P A R A B L E S

| A R E A O V E R V I E W

C O N N O R K E R N SA S S O C I A T E - M U L T I F A M I L Y


D A V I D H A R R I N G T O NE V P & M A N A G I N G D I R E C T O R - M U L T I F A M I L Y

Direct +1.310.295.1170 Mobile +1.310.497.5590 [email protected] License No. 01320460 (CA)

K Y L E M A T T H E W SB R O K E R O F R E C O R DLicense No. 110253 (AL)


ISECT ION

PROPERTY OVERVIEW

NO. OF UNITS32

YEAR BUILT1976

UNIT MIX2 BR+1 BA (32)

GROSS SF28,416

WASHER & DRYER CONNECTIONS

PRIVATE BALCONIES OR PATIOS

OPPORTUNITYMatthews Real Estate Investment ServicesTM is pleased to present the offering of the Lakeridge Apartments. It is located in Phenix City, the quiet submarket across the Chattahoochee River from Columbus, GA. The property has direct access to U.S. Highway 280 and right next door to the local grocery store, Piggly Wiggly, and surrounded by many other restaurants and stores. Its location is also convenient to the local school system with Central High School and Phenix City Intermediate School just down the street.

This property has had serious improvements done over the past two years to improve and stabilize the asset. There have been over $250,000 of renovations done by the current owner including significant capex work and major interior upgrades. The property is now currently 100% occupied with the current owner having paid special attention to accepting only high-quality tenants. This will be a turn-key investment with over 10% remaining upside in rents, producing healthy, stable cash flow for any local or out of town owner.

RENOVATION OVERVIEW

» Electrical Repair/Light Fixtures - $24,000

» New A/C Systems - $37,500

» Interior and Exterior Painting - $40,000

» Appliances - $35,000

» Flooring and Carpet - $40,000

» Deck Replacement/Rotten Wood - $10,000

» Plumbing New Tubs/ Faucets - $8,000

» Doors and Shutters - $17,300

» New Roofs - $40,000

Total - $251,800.00


SUB J E C TP ROP E R T Y


LOCATION MAP


UNIT MIXTotal Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent

32 2x1 100% $650 $20,800 $725 $23,200

Scheduled Monthly Rent: $20,800 $23,200

Scheduled Yearly Rent: $249,600 $278,400

PROPERTY DESCRIPTION

Property Address: 901 25th Ave,Phenix City, AL 36869

Number of Units: 32

Year Built: 1976

APN: 05-05-16-04-003-080.001

Gross Sq. Ft.: 28,416

Average S.F. Per Unit: 888

Lot Size: 4.00

Density: 8

FINANCIAL ANALYSISI IS ECT IO N

VALUE RANGE

PRICE/UNIT

PRICE/FOOT

CURRENT PRO FORMA MARKET

CAP RATE GRM CAP RATE GRM CAP

RATE GRM

$2,250,000 $70,313 $79.18 7.73% 9.01 7.00% 9.01 8.21% 8.08

Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing.

LTV:70% RATE: 3.63% AMORTIZATION: 30 Years TERM: 10 Years LENDER ORIGINATION: Waived

Niko Buntich(714) [email protected]

DEBTQUOTE


ANNUALIZED OPERATING DATA CURRENT PRO FORMA MARKETScheduled Gross Income: $249,600 $249,600 $278,400 12% UpsideLess Vacancy Reserve: 5.0% $12,480 5.0% $12,480 5.0% $13,920*Gross Operating Income: $237,120 $237,120 $264,480Expenses: 25.3% $63,253 31.92% $79,685 28.65% $79,757*Net Operating Income: $173,867 $157,436 $184,724Loan Payments: $96,533 $96,533 $96,533Pre-Tax Cash Flow: 12.8% $77,334 10.08% $60,903 14.60% $88,191**Plus Principal Reduction: $28,987 $28,987 $28,987Total Return Before Taxes: 17.60% $106,321 14.88% $89,889 19.40% $117,177* As a percent of Scheduled Gross Income** As a percent of Down Payment

PRO FORMA ANNUAL OPERATING EXPENSES CURRENT PER UNIT % OF SGI PRO FORMA PER UNIT MARKET PER UNIT % OF SGITaxes 5.900% x Sale Price x 20% $13,120 $410 5.53% $22,568 $705 $22,568 $705 8.1%Off-Site Management 5.0% x GOI $12,672 $396 5.34% $11,856 $371 $13,224 $413 4.8%Insurance T-12 Actual $8,129 $254 3.43% $8,129 $254 $8,129 $254 2.9%Repairs & Maintenance $400 x Units $5,000 $156 2.11% $12,800 $400 $12,800 $400 4.6%Turnover $200 x Units $6,400 $200 2.70% $6,400 $200 $6,400 $200 2.3%Landscaping T-12 Actual $2,400 $75 1.01% $2,400 $75 $2,400 $75 0.9%Pest Control T-12 Actual $1,680 $53 0.71% $1,680 $53 $384 $12 0.1%Utilities T-12 Actual $9,052 $283 3.82% $9,052 $283 $9,052 $283 3.3%General Administration $150 x Units $4,800 $150 2.02% $4,800 $150 $4,800 $150 1.7%Total Expenses $63,253 $1,977 26.68% $79,685 $2,490 $79,757 $2,492 28.6%

CURRENT PER UNIT % OF SGINon-controllable expenses: Taxes, Insurance $21,249 $664 8.5%Total Expense with out Taxes $50,133 $1,567 20.09%


RENT ROLLUnit Mix Rent Market Rent

A1 2X1 $650 $725A2 2X1 $650 $725A3 2X1 $675 $725A4 2X1 $650 $725A5 2X1 $595 $725A6 2X1 $675 $725A7 2X1 $675 $725A8 2X1 $675 $725B1 2X1 $625 $725B2 2X1 $650 $725B3 2X1 $625 $725B4 2X1 $650 $725B5 2X1 $675 $725B6 2X1 $700 $725B7 2X1 $555 $725B8 2X1 $675 $725C1 2X1 $625 $725C2 2X1 $600 $725C3 2X1 $600 $725C4 2X1 $625 $725C5 2X1 $725 $725C6 2X1 $725 $725C7 2X1 $650 $725C8 2X1 $650 $725D1 2X1 $650 $725D2 2X1 $650 $725D3 2X1 $675 $725D4 2X1 $675 $725D5 2X1 $575 $725D6 2X1 $675 $725D7 2X1 $650 $725D8 2X1 $650 $725

TOTALS $20,800 $23,200

AVERAGES $650 $725

RENT ROLL

I I ISECT IO N


SALES COMPARABLESAddress Units Year Built SqFt Price Per Unit Per SqFt Sale Date

901 25th Ave,Phenix City, AL 32 1976 28,416 $2,250,000 $70,313 $79.18 -

1305 Eberhart Ave,Columbus, GA 11 1971 13,135 $675,000 $61,363.64 $51.39 10/26/18

3715 Willis Rd,Columbus, GA 28 1943 38,392 $1,820,000 $65,000.00 $47.41 3/26/20

4831 Warm Springs Rd,Columbus, GA 32 2006 32,640 $2,100,000 $65,625.00 $64.34 12/30/19

Averages $62,059.66 $53.66

ComparablesIVS ECT IO N


RENT COMPARABLESAddress Units Year Built SqFt Unit Mix Unit Size (SF) Monthly Rent Avg Rent/SF

901 25th Ave,Phenix City, AL 32 1976 28,416 2x1 888 $650 $0.73

501 16th Ave N,Phenix City, AL 152 1975 142,329 2+1 885 $673 $0.76

2401 Tillery Ln,Phenix City, AL 28 1986 30,000 2+1 878 $660 $0.75

700 22nd Ave,Phenix City, AL 100 1984 95,800 2+1 956 $675 $0.71

1514 Forest Ave,Columbus, GA 38 1964 56,408 2+1.5 1,000 $730 $0.73

2319 College Dr,Phenix City, AL 72 1991 70,681 2+2 848 $695 $0.82

Averages $687 $0.75


PHENIX CITY, ALPhenix City is the county seat of Russell Countyand is located in east Alabama along the west bank of the Chattahoochee River, which separates the city from Columbus, Georgia. In front of the Phenix City Municipal Building there is a statue of a phoenix rising from the column on which it sits, symbolizing hope and renewal. It was dedicated on July 4, 1976. Phenix City celebrated its 100th anniversary with the construction of Centennial Park (1883-1983) as part of its riverfront development. The city also features a river walk designated as a national recreation trail and an amphitheater. Phenix City hosts a Twin Cities Classic Horse Show, a rodeo, a Festival of Lights on the Riverwalk, a Bi-City Christmas Parade, and a Festival of Art at the Log Cabin, featuring the works of local artists.

The Phenix City School System has six elementary schools, one middle school, one intermediate school, and one high school. Phenix City is also home to the Success Academy (5-12), the New Beginnings Center (7-12), and a Head Start Center. It hosts Chattahoochee Valley Community College, which offers two-year degree programs, and has a Troy University campus as well.

AREA OVERVIEWIVSECT I O N

COLUMBUS, GAColumbus is a consolidated city-county located on the west-central border of the U.S. state of Georgia. Located on the Chattahoochee River directly across from Phenix City, Alabama, Columbus is the county seat of Muscogee County, with which it officially merged in 1970. Columbus is the third-largest city in Georgia and the fourth-largest metropolitan area. According to the 2019 estimates from the U.S. Census Bureau, Columbus has a population of 195,769 residents, with 303,811 in the Columbus metropolitan area.

Columbus lies 100 miles southwest of Atlanta. Fort Benning, the United States Army’s Maneuver Center of Excellence and a major employer, is located south of the city in southern Muscogee and Chattahoochee counties. Columbus is home to museums and tourism sites, including the National Infantry Museum, dedicated to the United States Army’s Infantry Branch. It has the longest urban whitewater rafting course in the world constructed on the Chattahoochee River.

TOP EMPLOYERS


DEMOGRAPHICSPOPULATION 1-MILE 3-MILE 5-MILE2025 Projection 4,232 39,233 95,6892020 Estimate 4,309 39,960 96,9492010 Census 4,005 38,070 95,572

POPULATION GROWTH 1-MILE 3-MILE 5-MILEGrowth 2020-2025 1.79% 1.82% 1.30%Growth 2010-2020 7.59% 4.96% 1.44%HOUSEHOLDS 1-MILE 3-MILE 5-MILE2025 Projection 1,669 15,820 38,9372020 Estimate 1,700 16,103 39,4692010 Census 1,578 15,275 38,825

INCOME 1-MILE 3-MILE 5-MILE2020 Avg. Household Income $41,139 $47,440 $51,331

EXPLORE COLUMBUSEnjoy a lazy river ride in the morning and a wild adventure with class V rapids in the afternoon on the longest urban whitewater course in the world. Take a high adventure on the zip line that crosses the Chattahoochee River from Georgia to Alabama and back again.

Visit the National Infantry Museum and experience 200+ years of history of the U.S. Infantry. Fly to the moon at the Coca-Cola Space Science Center or study distant planets at the Omnisphere Planetarium. Simulators and artifacts from NASA’s space program provide a glimpse that are truly out of this world.

Explore your creative side with our arts scene. Visit the Springer Opera House, the State Theatre of Georgia, Columbus Museum, one of the largest museums in the Southeast that brings American art and regional history to life, and RiverCenter for the Performing Arts, the centerpiece of the city’s new arts and entertainment district.

When you’re hungry, no other destination offers more authentic, eclectic Southern cuisine! Columbus has something for everyone in every area possible.


This Offering Memorandum contains select information pertaining to the business and affairs of Lakeridge Apartments located at 901 25th Ave, Phenix City, AL (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner

detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

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O F F E R I N G M E M O R A N D U M

E X C L U S I V E LY L I S T E D B Y

A U S T I N G R A H A MA S S O C I A T E - M U L T I F A M I L Y


C O N N O R K E R N SA S S O C I A T E - M U L T I F A M I L Y


D A V I D H A R R I N G T O NE V P & M A N A G I N G D I R E C T O R - M U L T I F A M I L Y

Direct +1.310.295.1170 Mobile +1.310.497.5590 [email protected] License No. 01320460 (CA)

LAKERIDGE APARTMENTSP H E N I X C I T Y , A L

K Y L E M A T T H E W SB R O K E R O F R E C O R DLicense No. 110253 (AL)

lakeridge apartments | phenix city, al · 12 matthews real estate investment servicestm annualized...

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