offering memorandum for sale - loopnet · reno, nv 89511 reno, nv 89511. 775.332.7300 775.332.7309....
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avisonyoung.com6151 Lakeside Drive Suite 1000 | Reno, NV 89511775.332.2800
The information contained herein was obtained from sources deemed reliable and isbelieved to be true; it has not been verified and as such, cannot be warranted nor formany part of any future contract. DBA Avison Young Western Alliance Commercial Inc.
PREPARED BY:
Offering Memorandum FOR SALEMultifamily
John Pinjuv, SIORManaging [email protected]
Jessie Rich- Greer, MSRE, CCIM, CPMAssociate775.332.7309jessie.greer@avisonyoung,com
410-418 East Lee Street, Carson City, NevadaAvison Young | Western Alliance Commercial, Inc. (“Broker”) has been engaged as the exclusive advisor for the sale of 410-418 East Lee Street .
This Offering Memorandum was prepared by Avison Young | Western Alliance Commercial, Inc. (“Broker”) solely for the use of prospective purchasers of the property located at 410-418 East Lee Street in Carson City, Nevada. Neither the Broker nor the seller make any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum.
Prospective purchasers of the Property are advised that changes may have occurred in the physical or financial condition of the Property since the time this Offering Memorandum or the financial statements therein were made by Broker and Seller and are based upon assumptions or events beyond the control of Broker and Seller, and therefore may be subject to variation. Seller has not, and will not, provide Broker or any prospective purchaser with any income or expense figures, budgets, or projections regarding the Property other than as provided in due diligence material. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.
The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by Seller and the signature of a duly authorized officer of Seller is affixed to a Purchase Sale Agreement prepared by Seller.
This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you will hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Seller, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Seller or Broker.
If you have no interest in the Property at this time, please return this Offering Memorandum immediately to:
John Pinjuv, SIOR Jessie Rich-Greer, MSRE, CCIM, CPM6151 Lakeside Drive Suite 1000 6151 Lakeside Drive Suite 1000Reno, NV 89511 Reno, NV 89511775.332.7300 775.332.7309
7 Unit Multifamily For Sale 410-418 East Lee Street | 1
410-418 East Lee Street, Carson City, Nevada
SECTIONInvestment Overview 01
Executive SummaryInvestment Overview Property Summary
FINANCIAL ANALYSIS 02Rent Roll SummaryRent Roll DetailOperating Statement
PROPERTY HIGHLIGHTS 03Property DescriptionDemographics AerialParcel Map
MARKET COMPARABLES 04Competing Listing Rent ComparablesSold Comparables
MARKET OVERVIEW 05Carson City Overview Carson City Demographics
7 Unit Multifamily For Sale 410-418 East Lee Street | 2
7 Unit Multifamily For Sale 410-418 East Lee Street | 3
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Walton’s Chapel of the Valley
Carson City Recreation Division
Carson Aquatic Facility
Bank of America
South Carson
Pioneer High School
Carson Tahoe Specialty Medical
Center
4
5
6
12
4
56
7
7
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 4
VITAL DATA
Price $998,500
Current
Price/Unit $142,643 Cap rate 5.6%
Price/SF $207 Net operating Income $56,259.75
UNIT MIXNumber of Units Unit Type Approx. sq ft Approx. total Sq Ft
4 1 bed 1 bath 500 Sq Ft 2000 Sq Ft
2 1 bed 1 bath 600 Sq Ft 1200 Sq Ft
1 2 bed 2 bath 700 Sq Ft 700 Sq Ft
7 3900 Sq Ft
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 5
VALUE ADD OPPORTUNITY
All seven units are substantially below market lease rates. A RUBS (ratio utility billing system) can be implemented to charge back the pro-rata share of common area water, sewer and gas.
OVERVIEW
Lee street apartments is a seven unit multi-family property that comprises of two buildings on one assessed parcel number. It is located in a mature submarket of Carson City. This location is advantageous due to its proximity to downtown and many amenities within walking distance. The front building adjacent to East Lee Street was built in 1958 and has four one bedroom one bath units that are approximately 500 square feet. The rear building was built in 1995 and comprises of three units. The units are townhome style with two one bedroom one bath and a two bedroom one bath unit of approximately 600 and 700 square foot respectively.
7 Unit Multifamily For Sale 410-418 East Lee Street | 6
Kitchen & Living Room Kitchen Living Room
Stairs Bedroom Bathroom
410-418 East Lee Street, Carson City, Nevada
THE OFFERINGProperty Lee Street Apartments
Price $998,500
Property Address410-418 Lee Street
Carson City, Nevada
Zoning MFA
SITE DESCRIPTION Number of Units 7
Number of Buildings 2
Number of Stories 2
Year Built/ Renovated 1958/ 1995
Improve Building Sq Ft* 4,808 Sq Ft
Lot Size .230 Acres
Type of Ownership Fee Simple
Parking Spaces 8
Parking Ratio 1.14:1
Landscaping Mature
Topography Flat
UTILITIES Water Carson City Utilities Department
Phone AT&T
Electric NV Energy
Gas Southwest Gas Corporation
7 Unit Multifamily For Sale 410-418 East Lee Street | 7Source: Carson City Assessor Square Footage
7 Unit Multifamily For Sale 410-418 East Lee Street | 8
Donuts To Go
FISH Thrift Store
O’ Reilly Auto Parts
Grocery Outlet Bargain Store
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4
2 3
1
2
3
4
410-418 East Lee Street, Carson City, NevadaCurrent Potential
Unit Type # of Units Average sq ft Rental Range Average Rent Average Rent sq ft Monthly Income Average Rent Average Rent sq ft Monthly Income
1 bed/1 bath 4 500 $675-775 $720 $1.44 $2,880 $780 $1.56 $3,120
1 bed/1 bath 2 600 $970-975 $972.50 $1.62 $1,945 $1,000 $1.67 $2,000
2 bed/1 bath 1 700 $1000 $1000 $1.43 $1,000 $1,100 $1.57 $1,100
Total 7 $858 $960
Gross Annualized Rents $69,900 $74,640
7 Unit Multifamily For Sale 410-418 East Lee Street | 9
$720
$973 $1,000 $780
$1,000 $1,100
$0$200$400$600$800
$1,000$1,200
1 bed/1 bath 1 bed/1 bath 2 bed/1 bath
Average Rents
Current Potential
Unit Mix
1 bed/1 bath 1 bed/1 bath 2 bed/1 bath
Building Apartment Current Rent Lease End Sq Ft Comment Front 412 E Lee $775 May 2019 ~500 Effective June 1st
414 E Lee $715 April 2019 ~500 Effective May 1st
416 E Lee $675 Month- to- Month ~500
418 E Lee $715 April 2019 ~500 Effective May 1st
$2,880
Rear 410 E Lee #1 $970 October 2019 ~600 Townhome with backyard. Newly Refurbished.
410 E Lee #2 $1,000 January 2020 ~700 Townhome with backyard. Newly Refurbished.
410 E Lee #3 $975 Month-to-Month ~600
Townhome with backyard. Vacant as of4/1/2019
* Owner plans to refurbish the unit and rent at $975
$2,945
Grand Total $5,825
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 10
Financials CurrentGross Potential Rent $69,900
Vacancy $3,495 5%
Gross Scheduled Rent $66,405
Effective Rental Income $66,405
Other Income $-
Total Gross Income $66,405
Expenses
Cleaning/Maintenance $220
Insurance $1,029.50
Legal/Professional $203.50
Repairs/Maintenance $1,607.50
Supplies $53.50
Taxes $2,617.25
Utilities $4,414
Total Expenses $10,145.25
NOI $56,259.75
Expense ratio 15%
Expense/unit $1,449.32
Expense/sq ft $2.11
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 11
7 Unit Multifamily For Sale 410-418 East Lee Street | 12
Beverly Dr
3
C-A-L Ranch Store
Sun King Window Tinting
San Marcos Grill
Sierra Madre Apartments
4
34
410-418 East Lee Street, Carson City, Nevada
Location Features: 414 Lee street is centrally located in the heart of Carson City. It is situated at the terminus of Lee streetmaking it a great family friendly location.
7 Unit Multifamily For Sale 410-418 East Lee Street | 13
Total Units:Unit Mix:
Parking Spaces:Building Size:Property Type:
Seven Six- 1 bed 1 bath One- 2 bed 2 bath 16 Stalls4,808 ± sf Multi-Family
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 14
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 15
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 16
Burton St
Lee St
Beverly Dr
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 17
7 Unit Multifamily For Sale 410-418 East Lee Street | 18
Lee St
N S
tew
art S
t
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 19
Address: 3912 Village DriveBuilding Size: 5,244± sfNo. Units: 2Cap Rate: 6.00%Asking Price: $369,000.00Price/unit: $184,500.00
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 20
Property Name Address Bed/Bath
SF Rent Year Built
Parkway Terraces Apts. 603 E College Parkway 1/12/2
866 sf968 sf
$1399$1499-$1599
2000
Park Portofino Mid-Town
101-107 S. Harbin Avenue 2/1.5 950-1000 sf $1125 1998
Park Portofino 3272 N. Roop Street 2/1.5 950 sf $1125 1999
Sunset Carson City Apts. 970 N. Saliman Road 1/12/1
713 sf 923 sf
$775$875
1973
Parkway Plaza 20 College Parkway 1/12/2
700 sf894 sf
$703$844
1979
Royal Vista 3230 Imperial Way 1/1 595 sf $725-$799 1978
Bella Lago Village 1600 Airport Road 1/12/2
544 sf925 sf
$875$1295
1979
Shenandoah Villas 101 Conestoga Drive 1/12/1
2/1.52/1.5
655 sf844 sf936 sf978 sf
$909$989
$1009$1079
1974
Villas at Dolphin Bay 730 Silver Oak Drive 1/12/22/2
831 sf1026 sf1167 sf
$1300$1500$1600
2006
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 21
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 22
Address: 300 S Carson Meadow DriveBuilding Size: 27,624± sfNo. Units: 30Cap Rate: 6.34%Sold Price: $1,371,500.00Date Sold: 4/1/2016
Address: 2060 College ParkwayBuilding Size: 70,400± sfNo. Units: 207Cap Rate: 7.46%Sold Price: $5,700,000.00Date Sold: 1/1/2015
Address: 1301 Como StreetBuilding Size: 26,448± sfNo. Units: 34Cap Rate: 7.24%Sold Price: $1,600,000.00Date Sold: 3/1/2015
Address: 603-697 College ParkwayBuilding Size: 149,323± sfNo. Units: 176Cap Rate: 6.94%Sold Price: $18,650,000.00Date Sold: 4/1/2013
Address: 966 Round House LaneBuilding Size: 2,200 ± sfNo. Units: 2Cap Rate: 6.0%Sold Price: $340,000.00Date Sold: 8/31/2017
Address: 3945 Pheasant DriveBuilding Size: 5,580± sfNo. Units: 6Cap Rate: 5.0%Sold Price: $631,000.00Date Sold: 8/4/2017
7 Unit Multifamily For Sale 410-418 East Lee Street | 23
Beverly
Dr
N Stewart St
1
2
Carson City Senior Center
Carson City Environmental Health
410-418 East Lee Street, Carson City, NevadaOVERVIEW
Carson City is a centrally located community situated in western Nevada and bordered by Washoe and Storey counties to the north and Douglas County to the south. Nestled along the majestic Sierra Nevada Mountains, Carson City offers an ideal climate and breathtaking beauty. Nevada's capital city offers great advantages including affordable housing, and abundant labor force. With a strong support of industry, Carson City has quietly become Nevada's leading manufacturing city with 14 percent of its workers in manufacturing, compared to the state average of four percent. "The Rating Guide to Life in America's Small Cities" rated Carson City as the 19th best "micropolitan area" in the nation. The recent book "Boomtown USA" from the National Association of Industrial & Office Properties ranked Carson City in its top 50 communities in the West for the greatest opportunities for business, jobs and lifestyle and a favorite relocation spot for companies interested in low taxes, affordable housing and real estate costs and an abundant labor force.
Carson City is the state capital of Nevada, which has time and again been recognized as the #1 business-friendly state in the country. This ranking is based on taxes, electricity costs, workers' compensation costs, total crime rate, right to work, number of bureaucrats, and state minimum wage. Carson City is a favorite relocation spot for companies interested in low taxes, affordable housing and real estate costs and an abundant labor force.
BUSINESS ADVANTAGE
The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous.
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TAXESSales Tax RateIn Carson City, the sales tax rate is 7.475.
Property Tax RateIn Carson City, the 2009-10 average county wide tax rate is 3.2928.
Calculating Real Property TaxesThe formula for calculating real property tax is as follows:•Taxable Value x .35 = Assessed Value•Assessed Value x Tax Rate = Total Real Property Tax
Source: Carson City Economic Development
http://nv.diversifynevada.com/resources/carson_city
410-418 East Lee Street, Carson City, Nevada
7 Unit Multifamily For Sale 410-418 East Lee Street | 25
Year Population2008 57,600
2007 57,723
2006 57,701
2005 57,104
2004 56,146Male Female
Year Est. Population # % # %2008 56,274 29,006 51.5 27,268 48.5
2007 57,594 29,694 51.6 27,900 48.4
2006 58,029 29,912 51.5 28,117 48.5
2005 57,139 29,211 51.1 27,928 48.9
Source: Carson City Economic Development
http://nv.diversifynevada.com/resources/carson_city