Penticton Multifamily Investment Opportunity
Carlton ManorFor Sale
*Personal Real Estate Corporation
Patrick McEvay*Senior Vice President +1 604 789 0720 [email protected]
James Blair*Senior Vice President +1 604 790 7089 [email protected]
David Venance*
Executive Vice President+1 604 910 3842 [email protected]
782 Winnipeg Street, Penticton
Address 782 Winnipeg Street
PID 006-910-858
Suite Mix 4 - 1 Bedroom6 - 2 Bedroom
Site Size 10,890 sf
Year Built 1967
Parking Stalls 4 covered 6 uncovered
Price $1,700,000
Cap Rate 4.14%
PROPERTY DETAILS
INVESTMENT HIGHLIGHTS
THE OPPORTUNITY
JLL Multifamily BC is pleased to present to investors the opportunity to purchase an exceptionally well maintained 10 suite apartment building in a very central and amenity-rich location in Penticton. Carlton Manor has benefited from direct hand’s-on management by the current owner and pride of ownership is evident throughout. Tenants have been hand selected and landscaping and maintenance throughout the property has been kept to a very high standard. Penticton’s vacancy rate has remained low, and rental housing demand continues to climb; leaving investors the opportunity to increase rents substantially on turnover, making this investment perfect for new ownership well into the future.
Exceptionally well maintained 10 suite apartment building with numerous recent capital expenditures including a new roof (2016), exterior paint (2015), hot water tank (2017), and ongoing suite renovations.
Central Penticton location within walking distance to all amenities including shops and services along Penticton’s vibrant Main Street Downtown corridor.
Suites are in excellent condition and feature updated cabinetry, hardwood floors, and air conditioning units. Tenants each have access to one full-size storage locker in the secured basement storage room. Four of the suites feature balconies.
There are 10 parking stalls at the rear of the building (4 covered, 6 uncovered) for tenant use. Underground irrigation is installed and the property is well landscaped and manicured.
Penticton’s low vacancy environment coupled with a high demand for rental suites in the city lends terrific opportunity for further increases in revenue upon suite turnover.
Building features a gas-fired boiler for heat and a separate hot water tank for domestic hot water. Suites are individually metered for hydro.
$ $
Penticton › Carlton Manor is situated in the heart downtown of
Penticton just off of Main Street where tenants can find an array of retail shops and boutique stores.
› Penticton is home to many recreational activities such as skiing at Apex Mountain, boating and fishing on Skaha Lake and Okanagan Lake, hiking and biking the Kettle Valley Railway, and rock climbing at Skaha Bluffs.
› Penticton Regional Hospital is currently undergoing a $512 million renovation. A 300,000 sf, two-phase expansion is slated for completion in 2019.
› Penticton is surrounded by over 70 wineries and distilleries as well as multiple local orchards and farms.
RENT ROLL
Units Unit Type Average Size [1] Average Monthly Rent
4 1 Bedroom 544 sf $789
6 2 Bedroom 723 sf $947
Total 10 Units 651 sf $884
PROFORMA INCOME STATEMENT
[1] Rent roll annualized effective November 2019 with applicable rent increases submitted[2] Stabilized at $15 per unit per month[3] CMHC average vacancy rate for Penticton[4] Expenses are Year Ended December 31,
[1] Unit sizes are approximate
Yearly Yearly/Unit % of EGR
REVENUE
Rental Income [1] $106,044 $10,604
Laundry [2] $1,800 $180
Gross Revenue $107,844 $10,784
Less: Vacancy (1.70%) [3] $1,833 $183
EFFECTIVE GROSS REVENUE $106,011 $10,601
EXPENSES [4]
Property Taxes $6,363 $636 6.00%
Insurance $3,015 $302 2.84%
Utilities [5] $11,790 $1,179 11.12%
Business License $175 $18 0.17%
Office & Legal $751 $75 0.71%
Caretaker [6] $6,000 $600 5.66%
Repair & Maintenance [7] $7,500 $750 7.07%
TOTAL EXPENSES $35,594 $3,559 33.58%
NET OPERATING INCOME $70,417
2018 unless otherwise noted[5] Utilities include gas, hydro, water/sewer, and Shaw Cable ($312/month)[6] Property currently self-managed. Expense stabilized.[7] Stabilized to $750 per unit per year. Actual expense for 2018 was $14,941
Duncan Avenue
Highway 97
Power Street
Okanagan Lake
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Eckhardt Avenue
Main Street
Martin Street
Jones Lang LaSalle Real Estate Services Inc. | 355 Burrard Street | 14th Floor | Vancouver, BC V6C 2G6 | www.jllmultifamilybc.com©2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.E. & O. E. Jones Lang LaSalle Real Estate Services, Inc. Real Estate Brokerage
Carlton Manor
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South Okanagan Events Center
Penticton Golf & Country Club
Okanagan College Penticton
Penticton Lakeside Resort
Okanagan Lake Park
Penticton Yacht Club and Marina
Penticton Plaza
Penticton Regional Hospital
Cherry Lane Mall
Penticton Regional Airport
Main & Martin Street Amenities
Penticton Regional Airport | 10 min Vancouver | 5 hoursKelowna | 53 min
Lakeshore Drive
