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OFFERING MEMORANDUM LANCASHIRE COURT STONE MOUNTAIN, GA
O F F E R I N G M E M O R A N D U M
L A N C A S H I R E C O U R T
S T O N E M O U N T A I N , G A
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LISTED BY
PROPERTY OVERVIEW 4 FINANCIAL OVERVIEW12LOCATION OVERVIEW 8
AUSTIN GRAHAM ASSOCIATE
D: (404) 445-1091 M: (407) 463-9752
E: [email protected] No. SL3421373 (FL)
CONNOR KERNS ASSOCIATE
D: (404) 445-1090 M: (419) 733-5906
E: [email protected] No. SL3417384 (FL)
DAVID HARRINGTON EVP & MANAGING DIRECTOR
D: (310) 295-1170 M: (310) 497-5590
E: [email protected] No. 01320460 (CA)
L A N C A S H I R EC O U R T
S T O N E M O U N T A I N , G A
KYLE MATTHEWS BROKER OF RECORD
License No. 67120 (GA)
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P R O P E R T Y O V E R V I E W
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Matthews Real Estate Investment Services is proud to offer the Lancashire Court Apartments located
at 1055 Lancashire Cir. Stone Mountain, Georgia. This 64-unit apartment building is an opportunity
for an investor to purchase an asset in one of the top emerging markets in the United States, located
just outside of the I285 perimeter. Tenants appreciate and enjoy the quiet residential neighborhood
conveniently located near I285 which provides quick and easy access to all of Atlanta’s major attractions
while also located just far enough to enjoy the suburban area in Stone Mountain. Furthermore, this asset
is strategically located near many major retail locations, Pine Lake, Wade-Walker Park, Georgia University
Perimeter College, and Georgia piedmont Technical College.
This property consists of (24) One Bedroom/One Bathroom and (40) Two Bedroom/Two Bathroom Units.
This offering presents the opportunity for an investor to reposition an asset in an extremely high demand
rental market that still has tremendous growth potential to ultimately aim to recapture a significant upside
percentage in rental rates.
OPPORTUNITY
» 64 Units, Built in 1978
» Gross Building Square Footage of 93,294
» Consists of (24) One Bedroom/One Bathroom and (40) Two Bedroom/Two Bathroom Units.
» Lot Size: 3.07 Acres
» Wood Frame Construction
» Individually Metered
» 60 Free Surface Parking Spaces Available
» Pool & Tennis Court
» Business Center
» High Speed Internet Access
» Opportunity Zone: YES
PROPERTY HIGHLIGHTS
» Stone Mill Elementary School
» Stone Mountain Middle School
» Stone Mountain High School
» Georgia Perimeter College
SCHOOLS
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PHYSICAL DESCRIPTION
GROSS SF
93,294
AVG SF PER UNIT
1,458
APN
18-091-01-02518-091-09-065
YEAR BUILT
1978 3.07
LOT SIZENO. OF UNITS
64
PARCEL MAP
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REGIONAL MAP
LOCAL MAP
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L O C A T I O N O V E R V I E W
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One of Atlanta’s most-loved suburbs sits at the base of the mountain that shares its name. Stone Mountain, Georgia has a charming downtown with historic architecture and brick-paved streets along a landscaped Main Street. Home to nearly 6,000 residents, Stone Mountain provides quaint neighborhoods, mature trees, and proximity to Atlanta.
The landmark mountain, however, is the star of this city. Stone Mountain is the largest granite rock face in North America. The face of the mountain features the world’s largest bas-relief sculpture, and one of the oldest -- it predates Mount Rushmore.
S T O N E M O U N T A I N , G A
D E M O G R A P H I C SPOPULATION 1-MILE 3-MILE 5-MILE2025 Projection 15,826 82,615 222,6882020 Estimate 15,299 79,476 213,7112010 Census 14,574 74,614 198,745
HOUSEHOLDS 1-MILE 3-MILE 5-MILE2025 Projection 6,342 32,272 86,4012020 Estimate 6,091 30,767 82,2142010 Census 5,680 28,047 74,230
INCOME 1-MILE 3-MILE 5-MILE2020 Avg. Household Income $52,271 $68,068 $78,665
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Atlanta is the capital of and the most populous city in the U.S. state of Georgia, the cultural and economic center of the Atlanta metropolitan area, and the ninth largest metropolitan area in the United States.
Atlanta is an “alpha-” or “world city”, exerting a significant impact upon commerce, finance, research, technology, education, media, art, and entertainment. It ranks 36th among world cities and 8th in the nation with a gross domestic product of $270 billion. Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology.
Encompassing $304 billion, the Atlanta metropolitan area is the eighth-largest economy in the country and 17th-largest in the world. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. Atlanta contains the country’s third largest concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations.
Atlanta is home to professional franchises for three major team sports: the Atlanta Braves of Major League Baseball, the Atlanta Hawks of the National Basketball Association, and the Atlanta Falcons of the National Football League. Due to the more than 30 colleges and universities located in the city, Atlanta is considered a center for higher education.
A T L A N T A , G A
25FORTUNE 500/1000
HEADQUARTERS
#1BEST STATE FOR
DOING BUSINESS
#1MOST-TRAVELED
AIRPORT IN THE WORLD
Atlanta is one of the most visited cities in America, with over 37 million visitors per year. In 2015 alone, the tourism industry generated $58.9 billion in business sales. Although the most popular attraction among visitors to Atlanta is the Georgia Aquarium, the world’s largest indoor aquarium, Atlanta’s tourism industry mostly driven by the city’s history museums and outdoor attractions. Atlanta contains a notable amount of historical museums and sites, including the Martin Luther King, Jr. National Historic Site, which includes the preserved childhood home of Dr. Martin Luther King, Jr., as well as his final resting place. The Atlanta Cyclorama & Civil War Museum, which houses a massive painting and diorama in-the-round, with a rotating central audience platform, depicting the Battle of Atlanta in the Civil War; the World of Coca-Cola, featuring the history of the world famous soft drink brand and its well-known advertising; the College Football Hall of Fame which honors college football and its athletes; the National Center for Civil and Human Rights, which explores the Civil Rights Movement and its connection to contemporary human rights movements throughout the world; the Carter Center and Presidential Library, housing U.S. President Jimmy Carter’s papers and other material relating to the Carter administration and the Carter family’s life; and the Margaret Mitchell House and Museum, site of the writing of the best-selling novel Gone with the Wind. Atlanta also contains various outdoor attractions. The Atlanta Botanical Garden, adjacent to Piedmont Park, is home to the 600-foot-long Kendeda Canopy Walk, a skywalk that allows visitors to tour one of the city’s last remaining urban forests from 40-foot-high. The Canopy Walk is considered the only canopy-level pathway of its kind in the United States. Zoo Atlanta, located in Grant Park, accommodates over 1,300 animals representing more than 220 species. Home to the nation’s largest collections of gorillas and orangutans, the Zoo is also one of only four zoos in the U.S. to house giant pandas. Festivals showcasing arts and crafts, film, and music, including the Atlanta Dogwood Festival, the Atlanta Film Festival, and Music Midtown, respectively, are also popular with tourists.
G E O R G I A A Q U A R I U M
C O L L E G E F O O T B A L L H A L L O F F A M E
A T L A N T A B O T A N I C A L G A R D E N
T O U R I S M
Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations. Many corporations are drawn to Atlanta on account of the city’s educated workforce; as of 2010, nearly 43% of adults in the city of Atlanta have college degrees, compared to 27% in the nation as a whole.
E C O N O M Y
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F I N A N C I A L O V E R V I E W
1055 Lancashire CirStone Mountain, GA 31204
Number of Units: 64
Year Built: 1978
APN: 18-091-01-025, 18-091-09-065
Gross Sq. Ft.: 93,294
Average S.F. Per Unit: 1,458
Lot Size (Acres): 3.07
Density: 17
I N V E S T M E N T S U M M A R Y
List Price Price/Unit Price/FootCURRENT PRO FORMA MARKET
Cap Rate GRM Cap Rate GRM Cap Rate GRM
$4,385,000 $68,516 $47.00 4.66% 7.51 5.25% 7.51 7.78% 6.26
TotalUnits
Unit Mix
Unit Mix%
CurrentAvg Rent
Current Monthly Rent
MarketRent
MarketRent P.S.F
MarketMonthly Rent
24 1/1.00 38% $658 $15,800 $825 $0.84 $19,800
40 2/2.00 63% $822 $32,870 $965 $0.80 $38,600
Scheduled Monthly Rent: $48,670 $58,400
Scheduled Yearly Rent: $584,040 $700,800
U N I T M I X
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Current Pro Forma MarketScheduled Gross Income: $584,040 $584,040 Current Rent $700,800 20% UpsideLess Concessions: $0 $0 $0Less Bad Debt: $0 $0 $0Less Vacancy Reserve: $36,210 6.2% $29,202 5.0% $35,040 5.0%Laundry Income: $0 $0 $0RUBS Income: $0 $0 $0Other Income (Reimbursement): $0 $0 $0Gross Operating Income: $547,830 $554,838 $665,760Expenses: $343,554 58.8% $324,460 55.55% $324,460 46.30%*Net Operating Income: $204,275 $230,378 $341,300Loan Payments: $184,330 $184,330 $184,330Pre-Tax Cash Flow: $19,946 1.6% $46,048 3.59% $156,970 12.25%**Plus Principal Reduction: $51,872 $51,872 $51,872Total Return Before Taxes: $71,818 5.61% $97,920 7.64% $208,842 16.30%*** As a percent of Scheduled Gross Income** As a percent of Down PaymentLaundry & Other income are 2016 Actual
% of SGI Current Per Unit Pro Forma Per Unit Market Per Unit % of SGI
Property Taxes 4.325% x Sale Price x 40% 13.31% $72,897 $1,139 $72,071 $1,126 $72,071 $1,126 10.3%Off-Site Management 4.0% x GOI 4.00% $21,913 $342 $27,742 $433 $27,742 $433 4.0%Insurance Actual 2018 3.28% $17,956 $281 $17,956 $281 $17,956 $281 2.6%Reserves $150 x Units 1.75% $9,600 $150 $9,600 $150 $9,600 $150 1.4%Payroll $1,000 x Units 15.04% $82,386 $1,287 $64,000 $1,000 $64,000 $1,000 9.1%Repairs & Maintenance $500 x Units 6.88% $37,711 $589 $32,000 $500 $32,000 $500 4.6%Turnover $150 x Units 1.75% $9,600 $150 $9,600 $150 $9,600 $150 1.4%Pest Control Actual 2018 0.27% $1,455 $23 $1,455 $23 $1,455 $23 0.2%Utilities Actual 2018 9.67% $52,951 $827 $52,951 $827 $52,951 $827 7.6%Trash $75 x Units 0.88% $4,800 $75 $4,800 $75 $4,800 $75 0.7%Professional Fees Actual 2018 5.75% $31,507 $492 $31,507 $492 $31,507 $492 4.5%Office Supples Actual 2018 0.14% $778 $12 $778 $12 $778 $12 0.1%Total Expenses 62.71% $343,554 $5,368 $324,460 $5,070 $324,460 $5,070 46.3%
Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $100,453 $1,570 17.2%Total Expense without Taxes $270,657 $4,229 46.34%
P R O F O R M A A N N U A L O P E R A T I N G E X P E N S E S
A N N U A L I Z E D O P E R A T I N G D A T A
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# Unit Mix Rent MarketRent
1 A01 2/2.00 $875 $965
2 A02 2/2.00 $750 $965
3 A03 2/2.00 $825 $965
4 A04 2/2.00 $765 $965
5 A05 2/2.00 $750 $965
6 A06 2/2.00 $740 $965
7 A07 2/2.00 $825 $965
8 A08 2/2.00 $845 $965
9 B01 2/2.00 $865 $965
10 B02 2/2.00 $875 $965
11 B03 2/2.00 $965 $965
12 B04 2/2.00 $875 $965
13 B05 2/2.00 $805 $965
14 B06 2/2.00 $825 $965
15 B07 2/2.00 $805 $965
16 B08 2/2.00 $845 $965
17 B09 2/2.00 $865 $965
18 B10 2/2.00 $790 $965
19 B11 2/2.00 $965 $965
# Unit Mix Rent MarketRent
20 B12 2/2.00 $765 $965
21 B13 2/2.00 $745 $965
22 B14 2/2.00 $790 $965
23 B15 2/2.00 $815 $965
24 B16 2/2.00 $825 $965
25 C01 1/1.00 $665 $825
26 C02 1/1.00 $645 $825
27 C03 1/1.00 $655 $825
28 C04 1/1.00 $665 $825
29 C05 1/1.00 $665 $825
30 C06 1/1.00 $640 $825
31 C07 1/1.00 $640 $825
32 C08 1/1.00 $645 $825
33 C09 1/1.00 $650 $825
34 C10 1/1.00 $665 $825
35 C11 1/1.00 $650 $825
36 C12 1/1.00 $650 $825
37 C13 1/1.00 $600 $825
38 C14 1/1.00 $645 $825
R E N T R O L L
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# Unit Mix Rent MarketRent
39 C15 1/1.00 $665 $825
40 C16 1/1.00 $665 $825
41 C17 1/1.00 $655 $825
42 C18 1/1.00 $655 $825
43 C19 1/1.00 $645 $825
44 C20 1/1.00 $620 $825
45 C21 1/1.00 $825 $825
46 C22 1/1.00 $645 $825
47 C23 1/1.00 $705 $825
48 C24 1/1.00 $640 $825
49 D01 2/2.00 $965 $965
50 D02 2/2.00 $965 $965
51 D03 2/2.00 $775 $965
52 D04 2/2.00 $855 $965
53 D05 2/2.00 $845 $965
54 D06 2/2.00 $845 $965
55 D07 2/2.00 $785 $965
56 D08 2/2.00 $745 $965
57 D09 2/2.00 $705 $965
# Unit Mix Rent MarketRent
58 D10 2/2.00 $755 $965
59 D11 2/2.00 $800 $965
60 D12 2/2.00 $750 $965
61 D13 2/2.00 $800 $965
62 D14 2/2.00 $875 $965
63 D15 2/2.00 $765 $965
64 D16 2/2.00 $845 $965
Totals64
$48,670 $58,400
Averages $760 $913
R E N T R O L L
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Street Address Sale Price Price Per Unit Sale Date Number of Units
Building Size (SF)
Price Per Square Foot Year Built Cap Rate
Lancashire Court1055 Lancashire Cir $4,385,000 $68,515.63 - 64 73,048 $60.03 1978 4.66%
The Woods at Stone Mountain - 854 Sheppard Rd $6,830,000 $67,623.76 11/19/19 101 94,600 $72.20 1972 4.09%
Mountain Oaks - 4719 Central Dr $12,264,000 $73,000.00 9/23/19 168 213,000 $57.58 1972 6.50%
Terra Creek - 4900 Central Dr $10,367,000 $53,994.79 4/30/19 192 211,782 $48.95 1972 5.50%
Hairston Woods - 1173 N Hairston Rd $20,780,000 $86,583.33 6/6/19 240 248,402 $83.65 1984 -
The Haverly at Stone Mountain - 2700 Summit Creek Dr $24,330,000 $67,583.33 10/26/18 360 363,708 $66.89 1980 6.00%
AVERAGES: $69,757 $65.86 5.52%
SALES COMPARABLES
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RENT COMPARABLES
Street Address Year Built Units Building Size (SF) Unit Mix Monthly Rent Unit Mix Monthly Rent
Lancashire Court1055 Lancashire Cir
1978 64 93,294 1+1 $658 2+2 $822
The Life at Clifton Glen - 500 Hambrick Rd 1972 556 736,640 1+1 $930 2+2 $825
The Park at East Ponce - 1900 Tree Mountain Pky 1983 722 1,135,029 1+1 $844 2+2 $1,254
The Pointe - 5130 E Ponce De Leon Ave 1987 356 301,680 1+1 $813 2+2 $1,067
Polo Club Apartments - 100 Ashley Creek Cir 1985 244 265,886 - - 2+2 $998
The Haverly at Stone Mountain - 2700 Summit Creek Dr 1980 360 363,708 1+1 $940 2+2 $1,001
Linden Ridge Apartment Homes - 5400 Memorial Dr 1971 210 322,550 - - 2+2 $975
Ashland Lakeview - 200 Summit Lake Dr 1978 539 233,667 1+1 $780 2+2 $905
The Vue at Stone Mountain - 4969 Central Dr 1978 138 136,466 - - 2+2 $938
Retreat at Stone Mountain Apartments - 400 Ashley Pl
1983 212 238,140 - - 2+2 $950
Willow Lake Apartment Homes - 5100 W Mountain St 1971 280 362,200 1+1 $829 2+2 $975
AVERAGES $856 $989
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This Offering Memorandum contains select information pertaining to the business and affairs located at Lancashire Court in Stone Mountain, GA (“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
LISTED BY
AUSTIN GRAHAM ASSOCIATE
D: (404) 445-1091 M: (407) 463-9752
E: [email protected] No. SL3421373 (FL)
CONNOR KERNS ASSOCIATE
D: (404) 445-1090 M: (419) 733-5906
E: [email protected] No. SL3417384 (FL)
DAVID HARRINGTON EVP & MANAGING DIRECTOR
D: (310) 295-1170 M: (310) 497-5590
E: [email protected] No. 01320460 (CA)
L A N C A S H I R EC O U R T
S T O N E M O U N T A I N , G A
KYLE MATTHEWS BROKER OF RECORD
License No. 67120 (GA)
