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Legacy Apartments 11300 Roszell Street San Antonio TX 78217 CONFIDENTIAL Offering Memorandum the multifamily group. opening doors and closing deals
Legacy Apartments11300 Roszell StreetSan Antonio TX 78217
CONFIDENTIALOffering Memorandum
the multifamily group.opening doors and closing deals
Offer Summary
Exclusive Representation
The Multifamily Group has been exclusively retained to repre-
sent the Seller in the disposition of Legacy Apartments. All in-
quiries about the Offering or the Property should be directed
to The Multifamily Group.
Property Visitation
Prospective buyers will have the opportunity to visit the Prop-
erty through a pre-scheduled property tour. These tours will
viewing select units and access to common areas and other
facilities on the Property. In order to accommodate property's
ongoing operations, visitation will require advance notice and
scheduling through The Multifamily Group.
Offer Submission
Offers should be presented in the form of non-binding Letter
of Intent, spelling out the significant terms and conditions of
Purchaser's offers including, but not limited to.
1. Asset Pricing
2. Due Diligence and Closing Time Frame
3. Earnest Money Deposit
4. Description of the Debt / Equity Structure
5. Qualifications to Close
The purchase terms shall require that Cash-to-Notes be paid
at closing. Offers should be delivered to the attention of one
of the brokers at the address and/or emails listed.
32
Bryce SmithSenior AdvisorPhone: 469.607.3837E-mail: [email protected]
Jon KrebbsManaging PartnerPhone: 972.379.9843E-mail: [email protected]
Paul YazbeckManaging PartnerPhone: 972.379.9844E-mail: [email protected]
Chase DavisVice PresidentPhone: 972.465.9533E-mail: [email protected]
Will ClarkeVice President Phone: 469.250.9714E-mail: [email protected]
Chris SiemaskoSenior AdvisorPhone: 224.364.4058E-mail: [email protected]
Garrett KinneySenior AdvisorPhone: 972.379.9843E-mail: [email protected]
Chibuzor Nnaji Jr.Senior Advisor Phone: 469.426.1602E-mail: [email protected]
Jay KannaiyanSenior AdvisorPhone: 972.465.9533E-mail: [email protected]
4 5
The BlueprintLocation Overview ...........................6
Property Overview ...........................8
Rent Comparables......................... 26
Financial Overview .........................32
Legacy Apartments
San Antonio
Lenon Valley
Seguin
37
North
Location
Castle Hill
35
10
10
410
1604
1604
10
410
1604
1604
35
35
Stockdale
Helotes
Somerset
La Vernia
Von Ormy
Adkins
Converse
76
8790
281
Property Overview
98
The Multifamily Group is pleased to announce the oppor-
tunity to acquire Legacy Apartments, a 130 unit property
located in San Antonio, Texas. Constructed in 1973, Legacy
Apartments consists of 130 one and two bedroom units
averaging 732 square feet.
Over the past year, ownership has spent over $1,500,000
on interior and exterior renovations. About 90% of the units
have been renovated with upgrades consisting of vinyl
plank flooring, new/updated appliances, resurfaced tub and
tubs surround, new/resurfaced sinks, and resurfaced count-
ers in bathrooms. Ownership has also repainted or replaced
all cabinets and added hardware, repaired or replaced all
HVACs, upgraded plumbing and lighting fixtures, and added
new blinds and closet doors as needed. All plumbing and
electrical issues have been addressed. Exterior renovations
include solar screen installation, fresh paint on the play-
ground, fresh paint on all buildings, and general outside
building repairs. Common area upgrades include upgrading
the pool area, laundry room, and also reconfiguring the floor
plan of the model unit to adjust for the upgrade. Roofs have
been inspected, cleaned and sealed. The side balcony roofs
were replaced with metal roofs for curb appeal.
Legacy Apartments sits just five minutes away from McAl-
lister Park, a 976-acre public park maintained by the City of
San Antonio equipped with hiking and biking trails, soccer
fields, baseball fields, playgrounds, picnic areas, and a dog
park. The property is conveniently located just 3.5 miles
away from the intersection of I-35 and I-410 (261,949 VPD),
both of which are major arteries in San Antonio connecting
residents to different parts of the city, state, and country.
The asset is situated 12 miles from the Central Business Dis-
trict of San Antonio, the 7th largest city in the United States,
containing attractions such as the Alamo and the River Walk.
The property sits ten minutes from Live Oak Town Center, a
112-acre retail development, and Northeast Baptist Hospital.
Legacy Apartments is just six miles from San Antonio Inter-
national Airport.
Value-Add Opportunities
• Renovate Remaining Units - Renovated Units are Attaining a $100/unit Rent Premium
• Install Covered Parking and Charge for Spaces
• New Ownership can Lease Washer/Dryers to Residents in the Townhome Units and Raise
Rents by $100/month based on comparable asset operations
Summary
Terms Free and Clear
Units 130
Year Built 1974
Occupancy 96%
Average Unit Size 732 SF
Average In Place Rent $797
Electricity Resident Pays (Individual Meters)
HVAC Individual Electric
Hot Water Boilers (4) - All Replaced in Last Five Years
Highlights
• New ownership has the opportunity to benefit from the submarket’s organic 3.6% annual
rent growth and stable rental demand as the population in a 1-mile radius is expected to
grow 7.6% over the next 5 years (Costar)
• Upgraded units are currently achieving a ~$100 rent premium compared to non-upgraded
units
• Current Ownership has spent over $1.5 million on various interior, mechanical, and common
area upgrades in the past 18 months
1110
General
Terms Free and Clear
Address 11300 Roszell Street
San Antonio TX, 78217
Year Built 1974
Units 130
Net Rentable SF 95,148
Average Unit Size 732 SF
Site Size 5.43 Acres
Density 23.9 Units/Acre
Occupancy 96.2%
Construction
Foundation Slab
Exterior Stucco
Roof Flat - Rolled Composition w/ Pitched Metal Accents
Number of Buildings 21
Mechanical
HVAC Individual Electric
Hot Water Boilers (4) - All Replaced in Last Five Years
Wiring Copper
Plumbing PVC
Utilities
Electricity Resident Pays (Individual Meters)
Water/Sewer Property Pays - RUBS In Place
Gas Property Pays - RUBS In Place
Cable/Internet Resident Pays
Laundry / Washer and Dryers
Laundry Two On-Site Laundry Facilities
Parking
Paving Asphalt
Total Spaces 290
Open Spaces 290
Covered Spaces None Currently - Value-Add Opportunity*
Tax Information
County Bexar
CAD Account No. 595481
Tax Rate 2.59%
School Information
School District North East ISD
Elementary Oak Grove
Middle School Garner
High School MacArthur
Leasing Fees
Application Fee $40
Administration Fee None - Value-Add Opportunity*
Security Deposit $150-$300 (Credit Dependent)
Pet Deposit $150
Pet Rent $10/Pet/Month
Reserved Parking None - Value-Add Opportunity*
Trash Fee Allocated by Monthly Charges
Pest Control Fee None - Value-Add Opportunity*
Month-to-Month Fee 10%
Personnel
Manager 1 - On-Site
Leasing 1 - On-Site
Maintenance 1 - On-Site
Grounds 1 - On-Site
Tax Detail
Assessed Value $5,250,000
City 0.558270
ISD 1.290000
County 0.277429
College 0.149150
Hospital 0.276235
Other 0.023668
Other 2 0.018580
Total 2.593332%
NotesProperty Details
Community Amenities
• Package Service
• Gated Community
• High Speed Internet
• Swimming Pool
• Recreation Room
• Resident Services
• Picnic Tables
• Playground
• Concierge Services
• Laundry Facilities
Amenities
Unit Amenities
• Vinyl Plank Flooring
• Large Closets
• Patio/Balcony
• Refrigerator
• Window Coverings
• Disposal
• Air Conditioner
• Cable Ready
1312
Drive time of 10 minutes
DEMOGRAPHIC SUMMARY11300 Roszell St, San Antonio, Texas, 78217
INCOME
$55,937Median Household
Income
$29,137Per Capita Income
$70,375Median Net Worth
KEY FACTS
102,221Population
37.6
Median Age
41,779Households
$47,121Median Disposable Income
8,0006,0004,0002,0000
HOUSEHOLD INCOME
200000+
150000-199999
100000-149999
75000-99999
50000-74999
35000-49999
25000-34999
15000-24999
0-14999
EDUCATION
8%
No High School
Diploma 29%High School
Graduate
36%Some College 28%
Bachelor's/Grad/Prof Degree
EMPLOYMENT
65%White Collar
17%Blue Collar
18%Services
3.9%
Unemployment Rate
Demographic and Income Profile11300 Roszell St, San Antonio, Texas, 78217 Prepared by EsriDrive Time: 10 minute radius Latitude: 29.54212
Longitude: -98.41373
Summary Census 2010 2019 2024Population 98,314 102,221 105,317Households 40,251 41,779 42,995Families 25,143 25,739 26,359Average Household Size 2.43 2.44 2.44Owner Occupied Housing Units 23,470 23,122 23,749Renter Occupied Housing Units 16,781 18,656 19,246Median Age 36.0 37.6 38.3
Trends: 2019 - 2024 Annual Rate Area State NationalPopulation 0.60% 1.59% 0.77%Households 0.58% 1.55% 0.75%Families 0.48% 1.53% 0.68%Owner HHs 0.54% 1.63% 0.92%Median Household Income 1.80% 2.50% 2.70%
2019 2024 Households by Income Number Percent Number Percent
<$15,000 4,148 9.9% 3,612 8.4%$15,000 - $24,999 4,112 9.8% 3,648 8.5%$25,000 - $34,999 3,986 9.5% 3,632 8.4%$35,000 - $49,999 5,756 13.8% 5,517 12.8%$50,000 - $74,999 8,883 21.3% 9,249 21.5%$75,000 - $99,999 5,900 14.1% 6,395 14.9%$100,000 - $149,999 6,010 14.4% 7,173 16.7%$150,000 - $199,999 1,770 4.2% 2,316 5.4%$200,000+ 1,213 2.9% 1,453 3.4%
Median Household Income $55,937 $61,160Average Household Income $71,431 $80,234Per Capita Income $29,137 $32,676
Census 2010 2019 2024 Population by Age Number Percent Number Percent Number Percent
0 - 4 6,773 6.9% 6,356 6.2% 6,592 6.3%5 - 9 6,516 6.6% 6,360 6.2% 6,412 6.1%10 - 14 6,613 6.7% 6,324 6.2% 6,447 6.1%15 - 19 6,482 6.6% 5,947 5.8% 6,139 5.8%20 - 24 6,656 6.8% 6,637 6.5% 6,415 6.1%25 - 34 14,821 15.1% 15,679 15.3% 15,833 15.0%35 - 44 13,289 13.5% 13,578 13.3% 14,489 13.8%45 - 54 14,385 14.6% 12,525 12.3% 12,274 11.7%55 - 64 11,313 11.5% 12,799 12.5% 12,283 11.7%65 - 74 6,345 6.5% 9,587 9.4% 10,518 10.0%75 - 84 3,714 3.8% 4,620 4.5% 5,959 5.7%
85+ 1,406 1.4% 1,811 1.8% 1,954 1.9%Census 2010 2019 2024
Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 73,252 74.5% 72,920 71.3% 73,912 70.2%Black Alone 8,573 8.7% 9,662 9.5% 10,365 9.8%American Indian Alone 762 0.8% 833 0.8% 871 0.8%Asian Alone 2,318 2.4% 2,896 2.8% 3,361 3.2%Pacific Islander Alone 202 0.2% 244 0.2% 272 0.3%Some Other Race Alone 9,547 9.7% 11,307 11.1% 11,799 11.2%Two or More Races 3,661 3.7% 4,358 4.3% 4,737 4.5%
Hispanic Origin (Any Race) 41,401 42.1% 48,199 47.2% 52,229 49.6%Data Note: Income is expressed in current dollars.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.
October 14, 2019
©2019 Esri Page 1 of 2
Demographic and Income Profile11300 Roszell St, San Antonio, Texas, 78217 Prepared by EsriDrive Time: 10 minute radius Latitude: 29.54212
Longitude: -98.41373
Summary Census 2010 2019 2024Population 98,314 102,221 105,317Households 40,251 41,779 42,995Families 25,143 25,739 26,359Average Household Size 2.43 2.44 2.44Owner Occupied Housing Units 23,470 23,122 23,749Renter Occupied Housing Units 16,781 18,656 19,246Median Age 36.0 37.6 38.3
Trends: 2019 - 2024 Annual Rate Area State NationalPopulation 0.60% 1.59% 0.77%Households 0.58% 1.55% 0.75%Families 0.48% 1.53% 0.68%Owner HHs 0.54% 1.63% 0.92%Median Household Income 1.80% 2.50% 2.70%
2019 2024 Households by Income Number Percent Number Percent
<$15,000 4,148 9.9% 3,612 8.4%$15,000 - $24,999 4,112 9.8% 3,648 8.5%$25,000 - $34,999 3,986 9.5% 3,632 8.4%$35,000 - $49,999 5,756 13.8% 5,517 12.8%$50,000 - $74,999 8,883 21.3% 9,249 21.5%$75,000 - $99,999 5,900 14.1% 6,395 14.9%$100,000 - $149,999 6,010 14.4% 7,173 16.7%$150,000 - $199,999 1,770 4.2% 2,316 5.4%$200,000+ 1,213 2.9% 1,453 3.4%
Median Household Income $55,937 $61,160Average Household Income $71,431 $80,234Per Capita Income $29,137 $32,676
Census 2010 2019 2024 Population by Age Number Percent Number Percent Number Percent
0 - 4 6,773 6.9% 6,356 6.2% 6,592 6.3%5 - 9 6,516 6.6% 6,360 6.2% 6,412 6.1%10 - 14 6,613 6.7% 6,324 6.2% 6,447 6.1%15 - 19 6,482 6.6% 5,947 5.8% 6,139 5.8%20 - 24 6,656 6.8% 6,637 6.5% 6,415 6.1%25 - 34 14,821 15.1% 15,679 15.3% 15,833 15.0%35 - 44 13,289 13.5% 13,578 13.3% 14,489 13.8%45 - 54 14,385 14.6% 12,525 12.3% 12,274 11.7%55 - 64 11,313 11.5% 12,799 12.5% 12,283 11.7%65 - 74 6,345 6.5% 9,587 9.4% 10,518 10.0%75 - 84 3,714 3.8% 4,620 4.5% 5,959 5.7%
85+ 1,406 1.4% 1,811 1.8% 1,954 1.9%Census 2010 2019 2024
Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 73,252 74.5% 72,920 71.3% 73,912 70.2%Black Alone 8,573 8.7% 9,662 9.5% 10,365 9.8%American Indian Alone 762 0.8% 833 0.8% 871 0.8%Asian Alone 2,318 2.4% 2,896 2.8% 3,361 3.2%Pacific Islander Alone 202 0.2% 244 0.2% 272 0.3%Some Other Race Alone 9,547 9.7% 11,307 11.1% 11,799 11.2%Two or More Races 3,661 3.7% 4,358 4.3% 4,737 4.5%
Hispanic Origin (Any Race) 41,401 42.1% 48,199 47.2% 52,229 49.6%Data Note: Income is expressed in current dollars.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.
October 14, 2019
©2019 Esri Page 1 of 2
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NotesDemographic and Income Profile
1. RackspaceLocated just 5 miles from Rackspace, a tech company that holds a wide variety of entry-level and higher tech support jobs for over 4,000 employees.
2. Live Oak Town CenterIkea announced in October that it was hiring nearly 250 employees to work at the massive furniture facility, which occupies about 289,000 square feet of real estate.The store will also serve as the anchor for an additional 500,000 square feet of retail, restaurants and other commercial operations at Live Oak Town Center.
3. Downtown San AntonioJust 12.5 miles southwest lies the heart of Downtown San Antonio, the 7th largest city in the country. Thousands are drawn to its offices, restaurants, and hotels; it is home to both the Alamo and the River Walk, which contribute a combined $18 billion in economic impact and draw 37 million visitors to San Antonio each year.
4. San Antonio International AirportJust 5.5 miles from one of the fastest growing airports in the US. SAIA has just concluded a 37-month streak of record setting passengers over the past 3 years.
5. Joint Base San Antonio - Sam Houston7 Miles of Legacy Apartments is Joint Base San Antonio - Sam Houston, the largest joint base in the DOD servicing more DOD students than any other installation. The JBSA supports more than 250,000 personnel and houses the largest military hospital in the country.5. Blue Cross & Blue Shield of Texas 13 minutes away from Blue Cross & Blue Shield of Texas headquarters, a major health insurance provider employing about 3,100 people.
3
4
5 LegacyApartments
North
410
Economic Drivers
2
1
San Antonio410
410
35
10
10
37
35
16041604
1716
Additional Images
1918
2120
NotesUnit Mix
Average: 732 $797 $804 $854 $1.09 $1.10 $1.17
Total: 130 100% 95,148 $103,662 $104,580 $111,074
Annual: $1,243,944 $1,254,960 $1,332,892
Type # Units % of Total Square Feet Effective Rent Market Rent Comp Supported Rent Effective $/SF Market $/SF Pro Forma $/SF
1-1 88 68% 651 $753 $760 $794 $1.16 $1.17 $1.22
2-1.5 32 25% 855 $849 $850 $948 $0.99 $0.99 $1.11
2-1.5 TH 10 8% 1,050 $1,023 $1,050 $1,085 $0.97 $1.00 $1.03
NotesFloorplans
2322
Bedroom: 1 Bed / 1 Bath / 650 Sqft
Bedroom: 2 Bed / 1.5 Bath / 1,050 Sqft
Bedroom: 2 Bed / 1.5 Bath / 850 Sqft
2524
Rent Comparables
NotesNotes
Location
35
2726
635
Pla
no R
oad
75
75
North
Settlement
Silver Ridge
Broadway Oaks
LegacyApartments
Wurzbach Pkwy
Bulve
rde
Rd
Uptown Heights
410
410410410
281
281
Per
rin
Bei
tel R
d
Rent Comparable Summary
Property Name Address City State Zip Year Built # of Units Occupancy Avg. Size Avg. Rent/Unit Avg. $/SF
Broadway Oaks 10014 Broadway St San Antonio TX 78217 1978 168 98% 951 $993 $1.08
Uptown Heights 2803 Woodbury Dr San Antonio TX 78217 1979 156 94% 680 $845 $1.24
Settlement 8623 Starcrest Dr San Antonio TX 78217 1968 123 95% 938 $975 $1.04
Silver Ridge 8438 Quail Creek Dr San Antonio TX 78218 1975 144 98% 734 $843 $1.15
Averages 1975 148 96% 826 $914 $1.13
Legacy 11300 Roszell Street San Antonio TX 78217 1974 130 96% 732 $797 $1.09
Variance (94) ($117) ($0.04)
Rent Comparison This study compares market rents
from nearby properties to Legacy
Apartments effective rents.
One Bedroom
PROPERTY SIZE RENT $/SF
Broadway Oaks 672 $747 $1.11
Uptown Heights 630 $795 $1.26
Settlement 707 $875 $1.24
Silver Ridge 591 $750 $1.27
AVERAGE 650 $792 $1.22
Legacy * 651 $753 $1.16 Variance ($39) ($0.06)
Two Bedroom Townhomes
PROPERTY SIZE RENT $/SF
Settlement 1153 $1,085 $0.94
Settlement 1183 $1,075 $0.91
Silver Ridge 1010 $1,000 $0.99
Silver Ridge 1051 $1,100 $1.05
Broadway Oaks 1085 $1,167 $1.08
AVERAGE 1096 $1,085 $0.99
Legacy * 1050 $1,023 $0.97
Variance ($62) ($0.02)
Two Bedrooms
PROPERTY SIZE RENT $/SF
Broadway Oaks 936 $1,002 $1.07
Uptown Heights 830 $995 $1.20
Silver Ridge 900 $950 $1.06
AVERAGE 889 $982 $1.11
Legacy * 855 $849 $0.99 Variance ($133) ($0.12)
2928
3130
Notes
Financial Overview
Notes
3332
T-12 INCOME Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 T-12 TOTALMarket Rent 103,790 101,875 107,180 103,640 103,640 104,400 104,400 104,110 104,580 104,580 104,580 104,580 $1,251,355
Less: Loss to Lease (2,183) (1,366) (2,518) (1,900) (3,803) (4,345) (5,206) 1,606 (5,397) (2,345) (5,378) 1,083 ($31,752)
Gross Potential Rent 101,606 100,509 104,662 101,740 99,837 100,055 99,194 105,716 99,183 102,235 99,202 105,663 $1,219,602
Less: Vacancy (36,911) (20,937) (23,301) (16,500) (17,656) (23,029) (17,524) (22,904) (12,470) (15,583) (5,400) (10,835) ($223,051)
Less: Non-Revenue Units 0 0 0 0 0 0 0 0 0 0 0 0 $0
Less: Bad Debt/Concessions (4,929) (12,396) (1,659) (8,179) (4,136) (7,771) (8,903) (10,093) (14,721) (13,486) (13,436) (10,933) ($110,644)
NET RENTAL INCOME 59,766 67,176 79,701 77,060 78,045 69,254 72,767 72,719 71,992 73,165 80,366 83,894 $885,907 Plus: RUBS Income 1,229 1,639 (2,889) (2,398) 2,486 0 5,378 6,230 7,746 7,184 6,471 10,294 $43,370
Water/Sewer 0 0 0 0 0 0 3,259 3,826 3,832 4,158 4,457 4,787 $24,317
Trash 0 0 0 0 0 0 1,071 1,170 2,007 2,055 1,296 4,457 $12,057
Electric/Gas 1,229 1,639 (2,889) (2,398) 2,486 0 1,048 1,233 1,907 972 718 1,050 $6,996
Plus: Other Income 4,521 2,623 3,641 6,218 3,580 5,348 9,068 28,295 15,448 31,058 28,454 26,004 $164,258
TOTAL INCOME 65,515 71,438 80,454 80,881 84,111 74,603 87,212 107,243 95,186 111,407 115,291 120,193 $1,093,535
T-12 EXPENSESContract Services 1,529 1,054 2,951 1,322 2,326 1,322 2,112 3,203 2,902 2,224 1,300 1,998 $24,244
Repairs & Maintenance 6,355 6,506 8,067 4,678 1,132 6,556 5,307 3,667 2,202 7,034 7,704 3,223 $62,430
Administrative 4,241 254 6,068 1,171 785 2,506 3,493 3,324 2,615 3,157 282 1,018 $28,914
Marketing 6,442 2,734 8 617 1,176 159 (221) 881 45 841 872 1,152 $14,705
Payroll 16,106 5,858 4,411 9,104 8,960 9,410 6,962 6,247 4,852 8,036 4,692 6,054 $90,691
Total Utilities 15,834 3,857 11,815 6,414 7,234 11,117 15,462 6,545 10,801 10,734 5,910 6,590 $112,312
Water/Sewer 4,428 3,929 6,191 4,571 4,163 1,783 4,275 4,693 5,409 4,884 173 4,784 $49,284
Trash 5,290 0 716 0 276 4,111 1,243 20 4,707 1,219 2,582 0 $20,165
Electric 5,162 (72) 4,908 1,842 1,385 3,951 8,934 387 404 3,025 1,964 1,198 $33,089
Gas/Other 954 0 0 0 1,410 1,271 1,010 1,445 281 1,606 1,191 607 $9,775
Management Fee 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 $42,000
Insurance 0 0 3,020 3,020 3,020 3,020 4,764 4,764 3,661 3,661 3,661 3,661 $36,251
Real Estate Taxes 10,523 10,523 8,900 8,900 8,900 8,900 8,900 8,900 13,510 13,510 13,510 13,894 $128,870
TOTAL EXPENSES 64,531 34,287 48,741 38,726 37,034 46,490 50,278 41,031 44,086 52,695 41,431 41,088 $540,416
NET OPERATING INCOME 984 37,151 31,713 42,155 47,077 28,112 36,934 66,213 51,100 58,712 73,861 79,105 $553,118
Less: Recurring Capital 2,979 2,979 2,979 2,979 2,979 2,979 2,979 2,979 2,979 2,979 2,979 2,979 $35,750
NOI (with reserves) (1,995) 34,172 28,734 39,176 44,098 25,133 33,955 63,234 48,120 55,733 70,882 76,126 $517,368
3534
TRENDING ANALYSISTRAILING 12
MONTHST-3 ANNUALIZED
INCOME T-1 ANNUALIZED
INCOMEYEAR 1 UNDER-
WRITING NOTES
Market Rent 1,251,355 9,626 1,254,960 9,654 1,254,960 9,654 1,280,059 9,847 Year 1 Rents have been grown at 2.0% based on comparable properties
Less: Loss to Lease (31,752) 2.5% (26,560) 2.1% 12,996 -1.0% (25,601) 2.0% Loss to Lease has been estimated at 2.0% of Total Market Rent
Gross Potential Rent 1,219,602 9,382 1,228,400 9,449 1,267,956 9,754 1,254,458 9,650
Less: Vacancy (223,051) 18.3% (127,274) 10.4% (130,026) 10.3% (62,723) 5.0% Vacancy has been normalized at 5.0% based on historical operations and current market conditions
Less: Non-Revenue Units 0 0.0% 0 0.0% 0 0.0% 0 0.0% Non-Revenue Units are projected at 0.0% of Gross Potential Rent based on historical operations
Less: Collection Loss (110,644) 9.1% (151,424) 12.3% (131,199) 10.3% (37,634) 3.0% Bad Debt/Other Rent Loss is projected at 3.0% of Gross Potential Rent based on historical operations
NET RENTAL INCOME 885,907 6,815 949,702 7,305 1,006,732 7,744 1,154,101 8,878
Plus: RUBS Income 43,370 334 95,797 737 123,528 950 100,591 774 RUBS Income is projected at $100,591 based on historical operations
Water/Sewer 24,317 187 53,604 412 57,442 442 55,460 427
Trash 12,057 93 31,232 240 53,484 411 34,520 266
Electric/Gas 6,996 8 10,961 84 12,602 97 10,611 82
Plus: Other Income 164,258 1,264 342,066 2,631 312,053 2,400 75,000 577 Other Income is projected at $75,000 based on stable operations
TOTAL INCOME 1,093,535 8,412 1,387,565 10,674 1,442,313 11,095 1,329,692 10,228
EXPENSES
Contract Services 24,244 186 24,244 186 24,244 186 24,244 186 Contract Services are projected at $186 per unit based on current operations
Repairs & Maintenance 62,430 480 62,430 480 62,430 480 62,430 480 R&M is projected at $480 per unit based on current operations
Administrative 28,914 222 28,914 222 28,914 222 19,500 150 Administration Costs have been normalized at $150 per unit based on comparable properties
Marketing 14,705 113 14,705 113 14,705 113 14,705 113 Marketing is projected at $113 per unit based on current operations
Payroll 90,691 698 90,691 698 90,691 698 143,000 1,100 Payroll has been normalized at $1,100 per unit based on comparable averages
Total Utilities 112,312 864 112,312 864 112,312 864 112,312 864 Utilities are projected at $864 per unit
Water/Sewer 49,284 379 49,284 379 49,284 379 49,284 379
Trash 20,165 155 20,165 155 20,165 155 20,165 155
Electric 33,089 255 33,089 255 33,089 255 33,089 255
Gas/Other 9,775 75 9,775 75 9,775 75 9,775 75
Management Fee 42,000 323 42,000 323 42,000 323 46,539 358 Management Fee is projected at 3.5% of Gross Revenue
Insurance 36,251 279 36,251 279 36,251 279 45,500 350 Insurance is based on an comparable property policy costs of $350 per unit
Taxes 128,870 991 128,870 991 128,870 991 215,895 1,661 Taxes are $215,895 based on the 2019 rate of 2.593%
TOTAL EXPENSES 540,416 4432 540,416 4157 540,416 4157 684,125 5262
NET OPERATING INCOME 553,118 4255 847,149 6517 901,897 6938 645,568 4966
Less: Recurring Capital 35,750 275 35,750 275 35,750 275 35,750 275 Recurring capital expenditures have been estimated at $275 per unit
NOI (with reserves) 517,368 3,980 811,399 6,242 866,147 6,663 609,818 4,691
3736
5 YEAR CASHFLOW ASSUMPTIONS CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Potential Rent Growth 2.00% 3.00% 3.00% 3.00% 3.00%
Total Economic Loss 29.23% 9.84% 10.00% 10.00% 7.00% 7.00%
Other/RUBS Income Growth 0.00% 2.00% 2.00% 2.00% 2.00%
Operating Expense Growth 0.00% 2.00% 2.00% 2.00% 2.00%
Real Estate Taxes Growth 0.00% 2.00% 2.00% 2.00% 2.00%
INCOME CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Potential Rent 1,219,602 1,280,059 1,318,461 1,358,015 1,398,755 1,440,718
Less: Total Economic Loss (333,695) (125,958) (131,846) (135,801) (97,913) (100,850)
Economic Occupancy 90% 90% 90% 93% 93%
Net Rent Per Unit 568 779 801 825 878 904
Net Rental Income 885,907 1,154,101 1,186,615 1,222,213 1,300,842 1,339,868
Plus: RUBS Income 43,370 100,591 102,603 104,655 106,748 108,883
Plus: Other Income 164,258 75,000 76,500 78,030 79,591 81,182
Total Income 1,093,535 1,329,692 1,365,718 1,404,898 1,487,181 1,529,933
Monthly Revenue 91,128 110,808 113,810 117,075 123,932 127,494
% Increase Over Previous Year 21.60% 2.71% 2.87% 5.86% 2.87%
EXPENSES CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Contract Services 24,244 24,244 24,728 25,223 25,727 26,242
Repairs & Maintenance 62,430 62,430 63,679 64,952 66,251 67,576
Administrative 28,914 19,500 19,890 20,288 20,694 21,107
Marketing 14,705 14,705 14,999 15,299 15,605 15,917
Payroll 90,691 143,000 145,860 148,777 151,753 154,788
Utilities 112,312 112,312 114,558 116,850 119,187 121,570
Management Fee 42,000 46,539 47,470 48,419 49,388 50,376
Insurance 36,251 45,500 46,410 47,338 48,285 49,251
Taxes 128,870 215,895 220,213 224,617 229,109 233,692
Recurring Capital Expenditures 35,750 35,750 35,750 35,750 35,750 35,750
Total Expenses with Reserves (576,166) (719,875) (734,272) (748,958) (763,937) (779,216)
NET OPERATING INCOME 517,368 609,818 631,445 655,940 723,244 750,717
3938
Bryce SmithSenior AdvisorThe Multifamily Group
E-mail: [email protected]
4228 North Central Expy, Suite #110
Dallas, Texas 75206
Phone: 469.607.3837
Cell: 806.368.1250
Fax: 972.957.7662
Bryce began his career in 2015 leasing out luxury Class A apartment complexes and has personally toured 1,500+ individual units. He grew up in a small town West of Lubbock and received his Bachelor's Degree in Information Technology from Lubbock Christian University in 2011.
After graduating, Bryce was hired at Raytheon to work in their IT department as an Information Systems Analyst. He stumbled upon Real Estate in 2014 and decided to make it his full time career in 2015.
Bryce focuses on small to medium sized properties with a focus on value add deals in the major Texas markets. Bryce’s determination and perseverance is what makes him a valuable asset to the team and also to his clients.
He goes above and beyond for his clients and strives to provide the best experience possible. Outside of work, Bryce likes to spend his time with his wife Amber and their son Jaxon.
Jon KrebbsManaging PartnerThe Multifamily Group
Prior to forming The Multifamily Group, Jon was an Executive Direc-tor of Investment Sales with Sperry Van Ness (SVN) and finished as the company’s 22nd highest performing broker out of over 1,100 brokers world-wide in 2016. Prior to that he was a top producer at the Henry S. Miller Company in Dallas.
Jon specializes in asset valuation, coordination of the marketing pro-cess, property tours and contract negotiations for sellers of multifamily
properties. Jon analyzes each assign-ment carefully and finds creative ways to add value to his clients. When he is not working, Jon enjoys playing sports, playing his guitar and spend-ing time with his wife Stacie and their children Libby, Jackson and Finley.
Jon earned a B.B.A. in Finance and an MBA from Texas Tech University.
E-mail: [email protected]
4228 North Central Expy, Suite #110
Dallas, Texas 75206
Phone: 972.379.9843
Cell: 806.786.9515
Fax: 972.957.7662
4140
Chase DavisVice President The Multifamily Group
Chase began remodeling rental prop-erties in high school and developed an understanding of how to add value and increase cash flow. In college, he managed a major redevelopment in Austin and started a management company with a significant portfolio of Student Housing.
Chase graduated with a B.S. in Psy-chology from Texas Tech University and went on to start his own construc-tion company completing hundreds of remodels and effectively rehabbing buildings that were deemed lost caus-es.
At The Multifamily Group, Chase spe-cializes in Tertiary Markets and uses his extensive knowledge of under-writing and apartment rehabilitation to help principals drive value and achieve desired returns. Chase looks to add value in whatever he does through wise negotiations and un-matched tenacity, always approaching life from his personal business motto, “Striving for Perfection, Producing Excellence.”
E-mail: [email protected]
4228 N. Central Expy, Suite 110
Dallas, TX 75206
Phone: 972.465.9533
Cell: 806.543.5980
Fax: 972.957.7662
Paul YazbeckManaging PartnerThe Multifamily Group
Prior to forming The Multifamily Group, Paul was an Executive Director in Investment Sales with Sperry Van Ness (SVN) and finished as the com-pany’s 7th highest performing broker out of over 1,100 brokers worldwide in 2017, the highest ranked broker in the Southwest Region and the top producer in the office in 2017. In 2016, Paul was the 3rd ranked broker in the Southwest Region, was the 25th high-est producing Broker worldwide and top producer in the office. He quali-fied for the company’s Partner’s Circle recognition in both 2016 and 2017.
Paul’s volunteer involvement includes
Big Brother Big Sisters (BBBS), Ameri-can Corporate Partners, Gen Next and Carter Bloodcare.
Paul earned an MBA from the Univer-sity of Texas at Austin and a B.B.A. in Finance from The University of Colorado at Boulder where he at-tended on an ROTC scholarship. He was awarded the Bronze Star Medal for his service in Iraq during his sec-ond deployment as a Captain in the Army. Between his two deployments, he spent 27 months in Baghdad from 2003-2008.
E-mail: [email protected]
4228 North Central Expy, Suite #110
Dallas, Texas 75206
Phone: 972.379.9844
Cell: 972.310.1032
Fax: 972.957.7662
4342
Chris began his commercial real estate career in 2016 as an analyst at SVN. Prior to TMG, Chris worked on institutional sponsor Westmount Realty Capital’s acquisition desk and Coldwell Banker’s marketing team.
A perspective built from both principal and brokerage platforms enables Chris to provide clients with unique guidance on all aspects of multifamily acquisition and disposition. Chris focuses on tertiary core-plus product as well as operational value-add deals in major Texas metros.
Over the course of his career, Chris has been involved in transactions exceeding $250,000,000.
Chris actively volunteers with Big Brothers Big Sisters Dallas and spends as much free time as he can in the yoga studio and traveling. He holds a B.B.A. in Real Estate Finance from Southern Methodist University.
E-mail: [email protected]
4228 North Central Expy, Suite #110
Dallas, Texas 75206
Phone: 469.607.3403
Cell: 224.515.0607
Fax: 972.957.7662
Chris SiemaskoSenior AdvisorThe Multifamily Group
Will ClarkeVice PresidentThe Multifamily Group
Will embarked on his commercial real estate career as an investment asso-ciate and underwriter for a nationally recognized brokerage firm in 2016. In his role as Vice President at The Multi-family Group (TMG), Will is responsible for arranging multifamily transactions in the Dallas – Fort Worth metroplex as well as other major markets in the southwest region.
Will grew up in Dallas and received his B.S. in Finance with a concentra-tion in real estate from the Naveen
Jindal School of Management at The University of Texas at Dallas. He is a member of The Real Estate Coun-cil (TREC) in Dallas and is a member of the Young Guns group. Will is a licensed sales agent in the State of Texas.
Outside of the office, Will enjoys being outdoors, whether it is golfing, fishing, hunting or enjoying the Katy Trail.
E-mail: [email protected]
4228 N. Central Expy, Suite 110
Dallas, TX 75206
Phone: 469.250.9714
Cell: 214.364.4058
Fax: 972.957.7662
4544
Garrett KinneySenior AdvisorThe Multifamily Group
Garrett is a Senior Advisor with The Multifamily Group (TMG), focusing on multifamily owner representation in Texas and Oklahoma. Beginning his real estate career in 2013, he has an extensive understanding of many asset types and classes of commer-cial real estate throughout the United States. He has been employed by firms including CBRE and TIAA-CREF.
Prior to joining TMG, Garrett ran ac-quisitions for a prominent Multifamily Developer while honing his ability to discern between metrics and relative value for all classes of apartments.
Garrett holds a B.B.A. from Southern Methodist University's Cox School of Business in Dallas, TX. While at SMU, he focused studies in Real Estate Finance, along with Risk Management and Insurance. Garrett has a thorough understanding of how various eco-nomic factors can impact a multifamily asset, whether it be the job market, submarket changes or shifts in unit supply.
Originally from East Texas, Garrett now lives in Dallas, TX, spending his free time golfing and with his family.
E-mail: [email protected]
4228 N. Central Expy, Suite 110
Dallas, TX 75206
Phone: 469.458.9939
Cell: 214.799.9044
Fax: 972.957.7662
Chibuzor Nnaji Jr.Senior AdvisorThe Multifamily Group
E-mail: [email protected]
4228 N. Central Expy, Suite 110
Dallas, TX 75206
Phone: 469.607.3404
Cell: 469.426.1602
Fax: 972.957.7662
Chibuzor Nnaji Jr. embarked on his commercial real estate career in 2016 as a syndicator and acquired 300+ units in DFW before he began brokering for a nationally recognized brokerage firm in 2018. In his role as a Senior Advisor at TMG, Chibuzor is responsible for arranging Multifamily transactions exclusively in the DFW metroplex. Chibuzor earned his B.A. in accounting and finance and an M.A. from the University of Oklahoma. Prior to syndication, Chibuzor worked in the Real Estate Group of Ernst and Young in Dallas. He is a member of
The Real Estate Council and outside of work enjoys Oklahoma football and being involved at Watermark Church in Dallas.
The material contained in this Offering Memorandum is furnished solely for the purpose of considering the pur-chase of the property within and is not to be used for any other purpose. This information should not, under any cir-cumstance, be photocopied or disclosed to any third party without the written consent of The Multifamily Group or Property Owner, or used for any purpose whatsoever oth-er than to evaluate the possible purchase of the Property.
The only party authorized to represent the Owner in connection with the sale of the Property is The Multifamily Group Advisor listed in this Offering Memorandum, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Memorandum. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Memorandum must be returned to The Multifamily Group Advisor.
Neither The Multifamily Group Advisor nor the Owner makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future condition, operations or financial performance of the Property. This Offering Memorandum may include cer-tain statements and estimates with respect to the Property based on certain assumptions. These assumptions may or may not be proven to be correct, and there can be no assurance that such results will be achieved. Further, The Multifamily Group Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Memo-randum, or any other written or oral communication trans-mitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully
executed and delivered Real Estate Purchase Agreement between it and Owner.
The information contained herein is subject to change without notice and the recipient of those materials shall not look to Owner or The Multifamily Group Advisor nor any of their officers, employees, representatives, indepen-dent contractors or affiliates, for the accuracy or complete-ness thereof. Recipients of this Offering Memorandum are advised and encouraged to conduct their own compre-hensive review and analysis of the Property.
This Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms ac-ceptable to Owner, in Owner’s sole discretion. By submit-ting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and The Multifamily Group Advisor from any liability with respect thereto.
To the extent Owner or any agent of Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
11-2-2015
TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker’s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client’s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and
buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose:
ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ any confidential information or any other information that a party specifically instructs the broker in writing not to
disclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker’s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Information About Brokerage Services Texas law requires all real estate license holders to give the following information about
brokerage services to prospective buyers, tenants, sellers and landlords.
.
Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/Associate
License No. Email Phone
Licensed Broker /Broker Firm Name or Primary Assumed Business Name
License No. Email Phone
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0
Date Buyer/Tenant/Seller/Landlord Initials
Sales Agent/Associate’s Name License No. Email Phone
9007084The Multifamily Group LLC [email protected] 972-379-9843
NotesDisclaimer
4746
4228 North Central Expy, Suite #110 Dallas, Texas 75206
