Post on 05-Aug-2019
transcript
Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
Michel Commercial Real Estate International, Inc. | michelcommercialre.com
12325 COUNTY ROAD 51, SAINT JOSEPH, MN 56374FOR SALE | MULTIFAMILY INVESTMENT
Wildwood Manor (16 Units)
CONFIDENTIALITY & DISCLAIMER
PROPERTY INFORMATION3
LOCATION INFORMATION8
FINANCIAL ANALYSIS11
DEMOGRAPHICS14
ADVISOR BIOS16
A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .
N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .
E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .
A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.
Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .
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PROPERTY INFORMATION
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 3
Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
WILDWOOD MANOR
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The Wildwood Manor Apartments consist of 3 apartment buildings with a total of 16 unitsincluding 2 one bedroom units and 14 two bedroom units. The property has 17 garages. Thegarages are included in the apartment rent. The apartment buildings were built in 1970 and have 2story designs and pitched roofs. The heat is electric. The residents in 13 of the units pay theirelectricity including their electric heat. The landlord pays the electricity in the other 3 unitsbecause the common areas are wired into those units and, as a result, the rents are higher in those 3units. The property has it's own well so their is no water bill from the City. There is a laundryfacility in each building. The landlord owns the laundry machines. The units have air conditioningand are cable ready. Some of the recent capital improvements include newer windows and newerroofs.
PROPERTY OVERVIEW
The Wildwodd Manor Apartments are located just west of Saint Joseph on County Road 51 withinminutes of the College of Saint Benedict and Downtown Saint Joseph with easy access to I-94. SaintJoseph is approximately 15 minutes west of Saint Cloud and is part of the Saint Cloud MSA.
LOCATION OVERVIEW
PORTFOLIO OFFERING SUMMARY
Offering Price $878,400
Number of Units 16
Price Per Unit $54,900
CAP Rate 9.1%
NOI $79,787
Year Built 1970
Occupancy 100%
Parking 17 Garages
PID 31.21.409.0160
WILDWOOD MANOR 12325 COUNTY ROAD 51 - SAINT JOSEPH, MN 56374
PROPERTY INFORMATION | Executive Summary
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WILDWOOD MANOR 12325 COUNTY 51, SAINT JOSEPH, MN 56374
PROPERTY INFORMATION | Photos
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WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN 56374
PROPERTY INFORMATION | Photos
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UNIT TYPE COUNT SIZE (SF) MIN RENT MAX RENT
One Bedroom 2 500 SF $550 $625
Two Bedroom 14 600 SF $550 $695
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN 56374
PROPERTY INFORMATION | Rent Roll
LOCATION INFORMATION
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Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
WILDWOOD MANOR
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 9
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
LOCATION INFORMATION | Regional Map
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WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
LOCATION INFORMATION | Location Maps
FINANCIAL ANALYSIS
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 11
Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
WILWOOD MANOR
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 12
INVESTMENT OVERVIEW
Price $878,400
Price per Unit $54,900
GRM 8.0
CAP Rate 9.1%
Cash-on-Cash Return (yr 1) 15.29 %
Total Return (yr 1) $47,155
Debt Coverage Ratio 1.73
OPERATING DATA
Gross Scheduled Income $110,040
Other Income $7,294
Total Scheduled Income $117,334
Vacancy Cost -$3,300
Gross Income $114,034
Operating Expenses $34,247
Net Operating Income $79,787
Pre-Tax Cash Flow $33,572
FINANCING DATA
Down Payment $219,600
Loan Amount $658,800
Interest Rate 5.0
Amortization 25 Years
Debt Service $46,215
Debt Service Monthly $3,851
Principal Reduction (yr 1) $13,583
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
FINANCIAL ANALYSIS | Financial Summary
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INCOME SUMMARY PER UNIT
Scheduled Apartment Income (August, 2018) $110,040 $6,877
Less: Vacancy (3% Estimate) -$3,300 -$206
Plus: Laundry/Other Income (2018 Annualized) $7,294 $455
GROSS INCOME $114,034 $7,127
EXPENSE SUMMARY PER UNIT
Payroll (2018 Annualized) $402 $25
Miscellaneous (2018 Annualized) $69 $4
Cable (2018 Annualized) $572 $35
Electric (2018 Annualized) $8,865 $554
Water/Sewer (No City Water) $0 $0
Rubbish (2018 Annualized) $1,754 $109
Lawn/Snow (2018 Annualized) $1,764 $110
Maintenance (2018 Annualized) $5,242 $327
Insurance (2018 Annualized) $4,509 $281
Bank Service (2018 Annualized) $75 $4
Office (2018 Annualized) $45 $2
Real Estate Taxes (2018) $8,550 $534
Reserve ($150/unit Estimate) $2,400 $150
GROSS EXPENSES $34,247 $2,140
NET OPERATING INCOME $79,787 $4,986
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
FINANCIAL ANALYSIS | Income & Expenses
DEMOGRAPHICS
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Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
WILDWOOD MANOR
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* Demographic data derived from 2010 US Census
POPULATION 1 MILE 5 MILES 10 MILES
TOTAL POPULATION 1,377 26,778 123,532
MEDIAN AGE 25.0 31.1 32.9
MEDIAN AGE (MALE) 32.3 33.8 32.7
MEDIAN AGE (FEMALE) 21.4 30.7 34.2
HOUSEHOLDS & INCOME 1 MILE 5 MILES 10 MILES
TOTAL HOUSEHOLDS 430 9,877 48,382
# OF PERSONS PER HH 3.2 2.7 2.6
AVERAGE HH INCOME $58,120 $61,516 $65,458
AVERAGE HOUSE VALUE $155,292 $159,581 $180,900
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
DEMOGRAPHICS | Demographics Map
ADVISOR BIOS
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Presented By:
PETER MICHELVice President952.474.1325p.d.michel@att.net
WILDWOOD MANOR
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T 952.474.1325p.d.michel@att.net
12930 32nd Avenue NorthMinneapolis, MN 55441
PETER MICHEL
Vice President Professional Background
Peter joined Michel Commercial Real Estate Intl. Inc in 1991 and focuses solely on sellingmultifamily housing in Minnesota, North Dakota, South Dakota, Wisconsin and Iowa.The Company represents both private and institutional groups, including local owners andnational investors. Michel Commercial Real Estate Intl. Inc. has provided investment saleand acquisition services for nearly 30 years offering clients extensive market research,accurate property valuations, and a smooth transaction process. Michel Commercialsuccessfully brokers 1,500+ units of multifamily housing a year. The list of apartmentprojects sold ranges from 50 units to 500 units.
EducationB.A. Concordia College, Moorhead , Minnesota
WILDWOOD MANOR 12325 COUNTY ROAD 51, SAINT JOSEPH, MN
ADVISOR BIOS | Biography 1