THE MONTROSE PORTFOLIO HOUSTON, TX
98 Units8
2
contacts & offer process
Investment Sales
BRETT [email protected] T 713-337-5800M 210-860-5515
CARTER [email protected] T 713-554-0133M 832-457-7843
ZACH [email protected] T 713-425-5428M 713-897-9670
RUSSELL [email protected] T 713-425-5422M 832-541-1499
MATT [email protected] T 713-554-1303M 281-300-1468
DEBT & STRUCTURED FINANCE
ADAM [email protected] 713-425-5433M 713-824-6066
TIP [email protected] 713-337-5810M 832-724-4288
DAVID [email protected] T 713-337-5811M 713-412-9055
PURVESH [email protected] T 713-300-7954M 313-570-5221
exclusive representationNewmark Knight Frank has been exclusively retained to represent the Seller in the disposition of THE MONTROSE 8 PORTFOLIO. All inquiries about the Offering or the Property should be directed to Newmark Knight Frank.
offering processThe Property is being offered on an “All Cash” or “Loan Assumption”basis to qualified purchasers. Prospective purchasers will have the opportunity to visit the Property through scheduled tours with Newmark Knight Frank. Please do not contact the on-site management directly.
offer requirementsOffers should be presented in the form of a non-binding Letter of Intent, and must include at least:
» Asset Pricing » Due Diligence and Closing Time frame » Earnest Money Deposit » Description of Debt/Equity Structure » Qualifications to Close
Purchase terms shall require cash to be paid at closing. Offers should be delivered to the attention of Brett Benton via email.
financingFor parties interested in receiving debt quotes, please contact our Capital Markets team, Adam Allen, Tip Strickland, David Schwarz or Purvesh Gosalia. Newmark Knight Frank facilitates agency, life company, bank, bridge, and mezzanine financing options.
underwritingFor questions regarding the underwriting presented in this offering memorandum please contact Carter Mizell at 713-554-0133 or [email protected].
property toursTo accommodate the Property’s ongoing operations, Newmark Knight Frank requests 24-hour advance notice to schedule a tour.
presented by
offer process
NEWMARK KNIGHT FRANK1700 Post Oak Blvd | 2 BLVD Place, Suite 400Houston, TX 77056 | T 713-599-1800 | F 713-599-1801
3
table of contents
DAVID [email protected] T 713-337-5811M 713-412-9055
PURVESH [email protected] T 713-300-7954M 313-570-5221
NEWMARK KNIGHT FRANK1700 Post Oak Blvd | 2 BLVD Place, Suite 400Houston, TX 77056 | T 713-599-1800 | F 713-599-1801
pages
Executive SummaryInvestment Highlights
4-19pages
Property SummaryProperty Details
20-35pages
Financial AnalysisPro Forma
36-37
pages
Market OverviewRent Comparables
38-39pages
Appendix
40-43
4
executive summary
NKF is pleased to represent the Seller in the disposition of The Montrose 8 Portfolio. With eight assets located in the heart of Montrose, it creates the opportunity for a future buyer to obtain top of the market boutique-style communities in one of Houston’s fastest growing centers. These eight properties have undergone a complete transformation from 2015-2018 and now sit atop the boutique apartment community boasting stainless steel appliances, premier countertops, tile backsplashes, shaker cabinets with pulls, SMART Home Systems, walk-in showers, updated light fixtures, remote controlled ceiling fans, and USB outlets.
The Montrose submarket has experienced vast rent growth over the past several months including 9% over the last 6 months and 21% over the past 3 months, which is the highest of any submarket in the Houston MSA. The submarket is currently ranked the second hottest submarket in Houston by Apartment Data Services, with rents averaging $1.89, just shy of Downtown. Rents in the submarket are currently higher than most submarkets in Houston coupled with rent growth as high as 21%, suggests strong future rent and occupancy fundamentals for the Uptown/Montrose area.
Montrose has been crowned Houston’s most desirable inner loop neighborhoods with a small town feel. Montrose features local cafes, restaurants, icehouses, live music venues along with timeless boutiques, galleries, and antique shops. The Montrose 8 portfolio consists of eight multifamily communities located amongst Westheimer and Montrose Boulevard, two of Houston’s major thoroughfares, which provides excellent walkability as well as transportation to Houston’s major employment centers. The irreplaceable location coupled with outstanding submarket rent growth presents a great opportunity for a future buyer to acquire eight fully renovated boutique communities in one of the hottest submarkets in Houston.
5
Central Business District | 158K Employees
45
richm
ond a
ve
w alabama
dunlavy st
montrose blvd
westheimer rd1423 Kipling
3412 Graustark
3414 Graustark
2008 Colquitt
1717 Norfolk
2043 Sul Ross
shepherd dr
4321 Mt. Vernon
SPUR 527
400 Westmoreland
executive summary
1423 Kipling 3412 Graustark 3414 Graustark 2008 Colquitt 1717 Norfolk 2043 Sul Ross 400 Westmoreland 4321 Mt. Vernon Totals/AvgsUnits 8 8 8 8 20 14 16 16 98YOC 1965 1958 1965 1965 1953 1961 1965 1945 1960Avg SF 800 722 659 950 570 820 678 511 683Market Rents $1,313 $1,444 $1,434 $1,624 $1,334 $1,518 $1,431 $1,283 $1,407Occupancy 100% 100% 100% 100% 95% 100% 100% 100% 99%
Offering All Cash All Cash or Assumption
All Cash or Assumption
All Cash or Assumption All Cash All Cash or
Assumption All Cash All Cash
6
INVESTMENT HIGHLIGHTS area map
Washington Corridor
montroseHome Prices up to $3.2M
midtownHome Prices up to $1.3M
central businessdistrict
158,000 Employees
45
45
10
Richmond Ave
Shepherd Dr
Montrose Blvd
Taft St
Sawyer St
Houston Ave
Westheimer Rd
W Alabama St
Fairview St
W Dallas St
Eman
cipat
ion
Dr
Craw
ford
St
Mai
n St
Fann
in S
t
Loui
siana
St
Elyu
sian
St
Alabama St
Elgin St
McGowen St
Leeland St
Pease St
Harrisburg Blvd
Canal St
Polk St
Rusk St
Prairie St
W Gray St
Allen Pkwy
Waugh D
r
Memorial Dr
metrorailredline
Saint ArnoldBrewing Company
University ofHouston Downtown
DowntownAquarium-Houston
Toyota Center
Randalls
Discovery Green
The MenilCollection Buffalo
Soldiers Museum
Buffalo BayouPark
Eleanor TinsleyPark
Revention Music Center
Hobby Center
Market SquarePark
Wortham Theater
Alley Theatre
HoustonCommunity College
MidtownParkFuture
Whole Foods
BBVA Stadium
River OaksPlaza
WholeFoods
River OaksShopping Center
GreenStreet
Sam HoustonPark
Warehouse LiveGeorge R. Brown
Convention Center
Minute Maid Park
University ofSt. Thomas
Spotts Park
The Washington Corridor | Restaurants - Bars - NightclubsBluefishCoco’sTapsW GrillRebels
Chatter’s Cafe & BistroAbsolve Wine LoungeCounter BurgerThe Glass HouseMax’s Wine Dive
Molina’sCafe LuxorLaurenzo’sAURAPearl Bar
Winston’sWoodrow’s HeightsSoma SushiZoe’s KitchenNinja Ramen
Darwin’s TheoryPorch Swing PubHickory HollowSawyer ParkLes Givral’s Kahve
Ann TaylorChico’sEm & LeeEventsGAPGymboree
J. JillJos. A. BankLuke’s LockerTalbotsBarnes & NobleBath Junkie
AmericasCirca LightingCafe GingerOolong ArtThe Mad PotterCafe Express
La Grigliala MadeleineMacaron by PatissePaula Fridkin DesignsMarble Slab CreameryMia Bridal Couture
River Oaks Shopping Center
Forever 21Hotel AlessandraMain St StudioMcCormick & Schmick’sSalataGuadalajara Del Centro
Cafe BeneIII Forks SteakhouseEsperson GalleryMake (Her) BoutiqueAT&T SportsNetMia Bella Trattoria
House of BluesPete’s Dueling Piano BarLucky StrikeNRGSpencer OgdenEnertia Software
GreenStreet
Little Woodrow’s MidtownGloria’s Latin CuisineWeights + MeasuresMai’sThe Breakfast KlubAxelrad Beer Garden
The DogwoodRicosJINYA Ramen BarLes Givral’sPho Siagon Noodle House13 celsius
Brennan’s of HoustonThein An SandwichesPhil & Derek’s3rd FloorWooster’s GardenHowl at the Moon
Midtown Retail
Lilly & BloomThai CafeLine & LariatRoman’s PizzaBoomtown Coffee Main StThe Honeymoon Cafe & BarThe Pastry War1150 WinesLive Sports Bar & GrillThe Commoner & The Boulevardier
Boots n ShootsThe Moonshiners Southern Table + BarMolly’s PubShay McElroy’s Irish PubChipotle Mexican GrillLone Star Taco CoThe DistrictCafe ExpressFlying Saucer Draught Emporium
Main Street Area Retail
1423 Kipling
3412 Graustark 3414 Graustark
2008 Colquitt
1717 Norfolk
2043 Sul Ross
4321 Mt. Vernon
400 Westmoreland
7
INVESTMENT HIGHLIGHTS
Current ownership has completed extensive interior/exterior renovations and repositioned each property as a Class A+ boutique multifamily community with condo-quality finishes. A new owner will benefit from zero deferred maintenance and the ability to continue pushing rents while maintaining a price point below new development in the area. The significant renovations completed also offer a new owner the ability to convert the units to condominiums.
E X T E N S I V E I N T E R I O R R E N O VA T I O N S C O M P L E T E D - C O N D O - Q U A L I T Y F I N I S H E S
Stainless Steel Appliances
Tile Backsplashes
Entrance/Exit GatesSiding Replacement
Stand-Up Showers
Interior Renovations• Stainless Steel Appliances• Granite/Quartz Countertops• Tile Backsplash• Faux-Wood Flooring Throughout
(including bedrooms)• New Paneled Shaker Cabinets and
Doors• 2’’ Blinds• Stand-Up Showers• Brushed Nickel Plumbing Fixtures• Modern Lighting Package• SMART Home Features• Washer/Dryer Units• Remote Controlled Ceiling Fans
Exterior Renovations• Siding Replacement• Signage• Roof Repairs/Replacement• Boiler Replacement• PVC Plumbing• Copper Wiring• HVAC Systems• Entrance/Exit Gates• Paint
8
INVESTMENT HIGHLIGHTS
Uptown Galleria | 84K Employees
richmond ave
w alabama
montroseup to $3.2M
midtownup to $552K
montrose blvd
Recreated LOGO
river oaksup to $20M
upper kirbyup to $3.2M
610
SPUR 527
Greenway Plaza | 25K EmployeesTHEGALLERIA MALL
RIVER OAKSDISTRICT
University ofSt. Thomas
1423 Kipling 3412 Graustark3414 Graustark
2008 Colquitt1717 Norfolk
2043 Sul Ross
4321 Mt. Vernon
400 Westmoreland
9
INVESTMENT HIGHLIGHTS
The Montrose submarket has experienced major rent growth over the past several months including 9% over the last 6 months and 21% over the past 3 months, which is the highest of any submarket in the Houston MSAThe Midtown/Montrose submarket is currently ranked the second hottest submarket in Houston by Apartment Data Services, with rents averaging $1.89, just shy of DowntownClass B performance alone has witnessed a steep increase in rents over the past 24 months, totaling a 7% increase since July of 2017Average effective rents for the portfolio are still well below both overall rents for the submarket as well as Class A rentsRents in the submarket are currently higher than most submarkets in Houston coupled with rent growth of 21%, suggests strong future rent and occupancy fundamentals for the Midtown/Montrose area
O U T S TA N D I N G S U B M A R K E T P E R F O R M A N C E
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
80%
82%
84%
86%
88%
90%
92%
Montrose/Museum/Midtown Overall Submarket Performance
Occupancy Overall Effective Rent Class A Effective Rent Class B Effective Rent Portfolio Average
M O N T R O S E / M U S E U M / M I D T O W N O V E R A L L S U B M A R K E T P E R F O R M A N C E
O V E R A L L R E N T G R O W T H T R E N D S
Last 3 months
+21.0%Last 6 months
+9.4%Last 12 months
+1.5%
10
INVESTMENT HIGHLIGHTS
Texas Medical Center | 110K Employees
HERMANN PARK/HOUSTON ZOO
university placeup to $4.3M
west universityup to $6.5M
SPUR 527
Greenway Plaza | 25K Employees
montroseup to $3.2M
midtownup to $552K
1423 Kipling
3412 Graustark3414 Graustark
2008 Colquitt1717 Norfolk
2043 Sul Ross4321 Mt. Vernon
400 Westmoreland
westheimer rd
bagb
y
University ofSt. Thomas
braz
os
11
area HIGHLIGHTS
610
610
45
10
610
45
GREENWAY PLAZA25K employees
TEXAS MEDICAL CENTER110K employees
UPTOWN | GALLERIA84K employees
CENTRAL BUSINESS DISTRICT158K employees
5 MILES
ENERGY CORRIDOR94K employees
WESTCHASE DISTRICT93K employees
MEMORIAL CITY48K employees
montrose
How longis the drive?
TOCentral Business District
Texas Medical CenterGreenway PlazaUptown/Galleria
# of Minutes< 10< 10< 10< 15
The Montrose Portfolio
8
uptown/galleria
texas medical centercentral business district greenway plaza
employment centers
I M M E D I A T E LY A C C E S S I B L E T O H O U S T O N ’ S I N F I L L E M P L O Y M E N T C E N T E R S
12
area HIGHLIGHTS employment centers
Galleria/Uptown District
84,000+ EMPLOYEES
2,000COMPANIES
28M SF OF CLASS A OFFICE
1,000+ STORES
5M SF OF RETAIL
14TH LARGEST BUSINESS DISTRICT
IN NATION
25,000+ EMPLOYEES
10 BUILDINGCOMPLEX
4.25M SF OF CLASS A OFFICE
$5 MILLION IN RENOVATIONS
RECENTLY COMPLETED
$7 BILLION IN EXPANSIONS
MASTER-PLANNED MIXED-USE 52-ACRE SITE PREMIER FRONTAGE ALONG U.S. HIGHWAY 59
Greenway Plaza
110, 000 EMPLOYEES
5, 000 DOCTORS
21 HOSPITALS
50,000 STUDENTS
15,000 NURSES
45.8M SF OF COMMERCIAL
SPACE
5,700RESEARCHERS
7.2M+ VISITORSPER YEAR
LARGEST MEDICAL COMPLEX
IN THE WORLD
$1 BILLION IN RENOVATIONS UNDERWAY
1.3 MILLION SF UNDERCONSTRUCTION
8TH LARGEST BUSINESS DISTRICT
IN NATION
#14
1,345 ACRES
Galleria/Uptown District
84,000+ EMPLOYEES
2,000COMPANIES
28M SF OF CLASS A OFFICE
1,000+ STORES
5M SF OF RETAIL
14TH LARGEST BUSINESS DISTRICT
IN NATION
25,000+ EMPLOYEES
10 BUILDINGCOMPLEX
4.25M SF OF CLASS A OFFICE
$5 MILLION IN RENOVATIONS
RECENTLY COMPLETED
$7 BILLION IN EXPANSIONS
MASTER-PLANNED MIXED-USE 52-ACRE SITE PREMIER FRONTAGE ALONG U.S. HIGHWAY 59
Greenway Plaza
110, 000 EMPLOYEES
5, 000 DOCTORS
21 HOSPITALS
50,000 STUDENTS
15,000 NURSES
45.8M SF OF COMMERCIAL
SPACE
5,700RESEARCHERS
7.2M+ VISITORSPER YEAR
LARGEST MEDICAL COMPLEX
IN THE WORLD
$1 BILLION IN RENOVATIONS UNDERWAY
1.3 MILLION SF UNDERCONSTRUCTION
8TH LARGEST BUSINESS DISTRICT
IN NATION
#14
1,345 ACRES
GREENWAYPLAZA
Veteran Affairs Hospital
Ben Taub Hospital
MemorialHermannHospital
UT Medical School
Methodist Hospital
Baylor College of MedicineMD Anderson
Cancer Center
CHI St Luke’s Hospital
Texas Children’s Hospital
MD Anderson Cancer Center
ALMEDA ROAD
OLD SPANISH TRAIL
Baylor McNair Campus » World’s largest medical complex » 110,000 Employees - More people than
Exxon, Apple, or Google » 1,345 Acres - TMC is the eighth-largest
business district in the country - right after Philadelphia and Seattle
» 7.2 Million Visits Per Year - More than the populations of Los Angeles, Houston, and San Francisco—combined
» 18 Miles of Public and Private Streets
TEXAS MEDICAL CENTER
» Ten-building complex totaling over 4.25 million square feet of Class A office space
» 25,000 employees » Master-planned mixed-use 52-acre site with premier frontage
along U.S. Highway 59 » $5 million in renovations recently completed
13
area HIGHLIGHTSemployment centers
7
713
12
10
2
9
5
6
11
8
15
16
17
14
1
34
MEDICAL CENTERS
1] Memorial Hermann Hospital
2] UT Medical School
3] Ben Taub Hospital
4] Methodist Hospital
5] Texas Medical Center
6] Baylor College of Medicine
7] MD Anderson Cancer Center
8] CHI-St. Luke’s Hospital
9] Veterans Affairs Hospital
10] Texas Children’s Hospital
11] Baylor McNair Campus
12] Shriners Hospital for Children
13] Texas Orthopedic Hospital
14] The Woman’s Hospital of Texas
15]Kindred Hospital Houston Medical Center
16] Park Plaza Hospital
17]Cornerstone Hospital of Houston Medical Center
TEXAS MEDICAL CENTERMAJOR INSTITUTIONS
TEXAS CHILDREN’S HOSPITAL
• $506 million expansion
• Adding 19 floors to existing tower for new heart center, expanded critical care, and diagnostic and therapeutic services
• Phase I completed in 2018
BAYLOR ST. LUKE’S MCNAIR CAMPUS
• New 1.2-million-square-foot facility
• In various stages of completion, renovation and construction
M.D. ANDERSON ALKEK HOSPITAL
• $293 million expansion added nine floors (478,000 square feet) to existing 755,764-square-foot hospital
• Four floors were completed in 2013, three in 2014, and the last two in 2016
UNIVERSITY OF TEXAS M.D. ANDERSON CANCER CENTER
• $198 million expansion
• Will add 184,000 square feet to the existing building
HOUSTON METHODIST
• $540 million expansion
• Recently completed a 390-bed inpatient tower at the main campus
• Completed in 2018
MEMORIAL HERMANN
• $650 million renovation and expansion
• Building new patient care building and upgrading infrastructure
• Adding 1.3 million square feet in a new space and increasing their size by 50%
• Completed in 2018
RECE
NTLY
COMP
LETE
D | U
NDER
CONS
TRUC
TION
PROJ
ECTS
14
area HIGHLIGHTS employment centers
MINUTE MAID PARKHOUSTON ASTROS
TOYOTA CENTERHOUSTON ROCKETS
1.2M SF GEORGE R. BROWN
CONVENTION CENTER
158,000+ EMPLOYEES
9 FORTUNE
500COMPANIES
49M SFCLASS A OFFICE
EMPLOYER # CBD EMPLOYEES 1] City of Houston 10,000 2] Chevron 8,000 3] Deloitte LLP 1,960 4] Houston Community College 1,853 5] Kinder Morgan 1,850 6] CenterPoint Energy 1,803 7] Accenture 1,800 8] Ernst & Young 1,738 9] Pricewaterhouse Coopers 1,66410] St Josephs Medical Center 1,46711] Enterprise Products Partners 1,38612] University of Houston Downtown 1,34113] United Airlines 1,25014] KPMG 1,24415] LyondellBasell 1,00216] EOG Resources 90017] NRG Energy 87818] Enbridge Energy 50019] Hilton America’s Houston 80020] Trans Canada Corp 65021] Wells Fargo Bank 61822] Vinson & Elkins 61623] PROS Holdings 55024] Norton Rose Fulbright 524
CENTRAL BUSINESS DISTRICT
MAJOR EMPLOYERS
» 150,000 employees | 9 Fortune 500 companies
» Major employers (number of employees) include Chevron (8,000), Chase Bank (4,695), KBR (3,175), ExxonMobil Corporation (3,000), Deloitte (1,960), Kinder Morgan (1,850), CenterPoint Energy (1,803), Hess Corporation (1,870), United Airlines (1,840), Accenture (1,800) and Wells Fargo (1,695)
» Home to Minute Maid Park (Houston Astros) and Toyota Center (Houston Rockets)
» Contains 1.2 million square foot George R. Brown Convention Center
CENTRAL BUSINESS DISTRICT
15
area HIGHLIGHTSemployment centers
12
20
14
22
713
10
2
9 5
611
17
15
8
19
24
1
163
4
21 18
23
EMPLOYER
1] City of Houston
2] Chevron
3] Deloitte LLP
4] Houston Community College
5] Kinder Morgan
6] CenterPoint Energy
7] Accenture
8] Ernst & Young
9] Pricewaterhouse Coopers
10] St Josephs Medical Center
11] Enterprise Products Partners
12] University of Houston Downtown
13] United Airlines
14] KPMG
15] LyondellBasell
16] EOG Resources
17] NRG Energy
18] Enbridge Energy
19] Hilton America’s Houston
20] Trans Canada Corp
21] Wells Fargo Bank
22] Vinson & Elkins
23] PROS Holdings
24] Norton Rose Fulbrightsource: Houston Business Journal
CENTRAL BUSINESS DISTRICTMAJOR EMPLOYERS
16
employment centersarea HIGHLIGHTS
Galleria/Uptown District
84,000+ EMPLOYEES
2,000COMPANIES
28M SF OF CLASS A OFFICE
1,000+ STORES
5M SF OF RETAIL
14TH LARGEST BUSINESS DISTRICT
IN NATION
25,000+ EMPLOYEES
10 BUILDINGCOMPLEX
4.25M SF OF CLASS A OFFICE
$5 MILLION IN RENOVATIONS
RECENTLY COMPLETED
$7 BILLION IN EXPANSIONS
MASTER-PLANNED MIXED-USE 52-ACRE SITE PREMIER FRONTAGE ALONG U.S. HIGHWAY 59
Greenway Plaza
110, 000 EMPLOYEES
5, 000 DOCTORS
21 HOSPITALS
50,000 STUDENTS
15,000 NURSES
45.8M SF OF COMMERCIAL
SPACE
5,700RESEARCHERS
7.2M+ VISITORSPER YEAR
LARGEST MEDICAL COMPLEX
IN THE WORLD
$1 BILLION IN RENOVATIONS UNDERWAY
1.3 MILLION SF UNDERCONSTRUCTION
8TH LARGEST BUSINESS DISTRICT
IN NATION
#14
1,345 ACRES
» 14th largest business district in the US
» 84,000 employees
» Five million square feet of retail space and more than 1,000 stores
» The Galleria hosts 30 million visitors annually, making it the number one shopping and tourist attraction in Houston
UPTOWN | GALLERIABUSINESS DISTRICT
17
area HIGHLIGHTSemployment centers
EMPLOYER1] Galleria Office Towers
2] Williams Tower Williams Companies, Rowan Companies, Quanta Services
3] Bechtel Oil, Gas & Chemicals4] Amegy Bank HQ5] Silicus Technologies, LLC6] AECOM7] BBVA Compass Plaza
8] Four Oaks Plaza Morgan Stanley, SureTec, Main Street Capital
9] 1400 Post Oak Ln Select Energy, JLL
10] Transwestern
11] 1800 West Loop South Blue Cross Blue Shield of Texas, Pierpont Communications, Anheuser-Busch
12] BLVD Place Frost Bank, Cantor Fitzgerald, ARA Newmark
13] Landry’s Inc14] BHP Billiton Petroleum15] Marathon Oil
16] 5151 San Felipe Goodman Manufacturing Company, Columbia Pipeline Group
17] Post Oak Central Stewart Title Co., Apache Corporation, Engie North America
18] Schlumberger
19] Riverway Office Park Northwestern Mutual, Riverway Title Company, Aly Energy Services
20] San Felipe Plaza Chase, Amerifirst
21] Burns & McDonnel
22] 5718 Westheimer Capital One, DCP Midstream
23] Enbridge
24]Greenway Plaza Occidental Petroleum, Transocean, Chicago Title, Camden, Solvay Chemicals, Invesco, Direct Energy
UPTOWN|GALLERIAMAJOR EMPLOYERS
12
14
8
9
161820
22
23
4
24
7
13
10
2
56
11
17
15
19
1
3
21
18
demographicsarea HIGHLIGHTS
Average Household Income within a 1-mile radius of the Montrose 8 Portfolio is $136K and is projected to grow 9% in 2024 to $147K
• Based on this income, average affordability is $3,777 per month
• This is $2,374 above effective rents of the portfolio, signaling ample room to greatly increase rents
The population within a 3-mile radius of the portfolio grew 30% from 2010-2019 and is projected to continue to see this vast amount of population growth for the next 5 years
S T R O N G S U R R O U N D I N G D E M O G R A P H I C S
1-mile 3-mile 5-mile2019 Total Population $30,797 $204,145 $519,121Population Growth (2010-2019) 22% 30% 23%Average Household Income $135,590 $140,340 $119,862Average Home Value $755,251 $700,530 $605,165Civilian Unemployed (Unemployment Rate) 2.5% 2.5% 3.6%
$135,590household income
1-mile
$140,340household income
3-mile
22%population growth
2010-19
THE MONTROSE PORTFOLIO
8
19
residential listings area highlights
mandell heights$799,000
T O W N H O M E L I S T I N G S
S I N G L E - F A M I LY L I S T I N G S
driscoll street$1,000,000
michigan street$895,000
topaz villas condominiums$1,404,480
mandell place$1,775,000
richwood$1,849,000
winlow place$1,790,000
chaney smith$1,550,00 0
20
property overview 1423 kipling
1 4 2 3 K I P L I N G | H O U S T O N , T X 7 7 0 0 6
Avg SF Current Market Rent
1Bed/1Bath 4 650 $1,150
2Bed/1Bath 4 950 $1,475
1423 Kipling St is a 8 unit apartment complex built in 1965 in the well-established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property is in close proximity to major employment centers such as the central business district (downtown), Greenway Plaza, and the Medical Center.The townhouse style boutique apartments were renovated in 2015 with granite counter tops, porcelain tile, central a/c, remote controlled fans, assigned gated parking, secured gated access, brazilian wood siding and SMART home system with live security monitoring in each unit. The property also has an on-site laundry room.
unit mix
property summary
TOTAL NUMBER OF UNITS
8
YEAR OF CONSTRUCTION
1965
LOT SIZE
5,950 sf
YEAR RENOVATED
2015
A L L C A S H
OCCUPANCY (JULY 2019)
100%
21
property overview1423 kipling
STYLE Garden
NUMBER OF BUILDINGS 2 two-story residential buildings
LAUNDRY FACILITY OR W/D INCLUDED Onsite laundry facility
FOUNDATION Concrete post tension slab
EXTERIOR WALLS Stucco, cedar siding
ROOF TYPE Pitched composition shingles
FLOOR COVERING Carpeting, ceramic tile
PAVING Concrete
WIRING Copper
PIPING PVC
OPEN SPACES7
COVERED SPACESN/A
TOTAL7 spaces or 0.87 spaces per unit
Construction Details
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
22
property overview 3412 graustark
3 4 1 2 G R A U S TA R K | H O U S T O N , T X 7 7 0 0 6
Avg SF Current Market Rent
1Bed/1Bath 5 675 $1,350
1Bed/1Bath 1 850 $1,400
2Bed/1Bath 2 775 $1,700
3412 Graustark St is an 8 unit apartment complex built in 1958 in the well-established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2018 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.
A L L C A S H O R A S S U M P T I O N
unit mix
property summary
TOTAL NUMBER OF UNITS
8
YEAR OF CONSTRUCTION
1958
LOT SIZE
7,125 sf
YEAR RENOVATED
2018
OCCUPANCY (JULY 2019)
100%
23
property overview3412 graustark
STYLE Garden
NUMBER OF BUILDINGS 1 two-story residential building
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slabs
EXTERIOR WALLS Brick, cedar siding, metal siding
ROOF TYPE Pitched composition shingles
FLOOR COVERING Faux wood plank
PAVING Concrete/asphalt
WIRING Copper
PIPING PVC
OPEN SPACES4
COVERED SPACES4
TOTAL8 spaces or 1.0 spaces per unit
Construction Details
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
A L L C A S H O R A S S U M P T I O N loan detailsASSUMABLE FREDDIE MAC SBL LOAN
LOAN AMOUNT: $1,250,000
INTEREST RATE: 4.75%
AMORTIZATION: 30 years
MATURITY: May 2022
24
property overview 3414 graustark
3 4 1 4 G R A U S TA R K | H O U S T O N , T X 7 7 0 0 6
Avg SF Current Market Rent
1Bed/1Bath 4 600 $1,350
1Bed/1Bath 1 675 $1,350
1Bed/1Bath 1 700 $1,400
2Bed/1Bath 2 750 $1,663
3414 Graustark St is a 8 unit apartment complex built in 1965 in the well established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property is in close proximity to major employment centers such as the central business district (downtown) and museums such as the Menil Collection, Museum of Fine Arts and host of other world-renowned art galleries.The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.
unit mix
property summary
TOTAL NUMBER OF UNITS
8
YEAR OF CONSTRUCTION
1965
LOT SIZE
6,250 sf
YEAR RENOVATED
2017
OCCUPANCY (JULY 2019)
100%
A L L C A S H O R A S S U M P T I O N
25
property overview3414 graustark
STYLE Garden
NUMBER OF BUILDINGS 1 two-story residential building
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slabs
EXTERIOR WALLS Brick, cedar siding, metal siding
ROOF TYPE Pitched composition shingles
FLOOR COVERING Faux wood plank, ceramic tile
PAVING Concrete/asphalt
WIRING Copper
PIPING PVC
Construction Details
OPEN SPACES3
COVERED SPACES4
TOTAL7 spaces or 0.87 spaces per unit
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
A L L C A S H O R A S S U M P T I O N loan detailsASSUMABLE FREDDIE MAC SBL LOAN
LOAN AMOUNT: $1,250,000
INTEREST RATE: 4.75%
AMORTIZATION: 30 years
MATURITY: May 2022
26
property overview 2008 colquitt
2 0 0 8 C O L Q U I T T | H O U S T O N , T X 7 7 0 0 6
Avg SF Current Market Rent
2Bed/1Bath 8 950 $1,624
2008 Colquitt is a vintage 8 unit apartment complex built in 1965 located within the submarket of Montrose between W. Alabama and Richmond Ave, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.
A L L C A S H O R A S S U M P T I O N
unit mix
property summary
TOTAL NUMBER OF UNITS
8
YEAR OF CONSTRUCTION
1965
LOT SIZE
7,500 sf
YEAR RENOVATED
2017
OCCUPANCY (JULY 2019)
100%
27
property overview2008 colquitt
STYLE Garden
NUMBER OF BUILDINGS 1 two-story residential building
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slab
EXTERIOR WALLS Brick, stone, and hardi-plank
ROOF TYPE Modified
FLOOR COVERING Faux wood plank
PAVING Concrete
WIRING Copper
PIPING PVC
Construction Details
OPEN SPACES7
COVERED SPACESN/A
TOTAL7 spaces or 0.87 spaces per unit
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
A L L C A S H O R A S S U M P T I O N loan detailsASSUMABLE FREDDIE MAC SBL LOAN
LOAN AMOUNT: $1,221,000
INTEREST RATE: 5.25%
AMORTIZATION: 30 years
MATURITY: May 2022
28
property overview 1717 norfolk
1 7 1 7 N O R F O L K | H O U S T O N , T X 7 7 0 9 8
Avg SF Current Market Rent
1Bed/1Bath 18 550 $1,332
1Bed/1Bath 2 750 $1,350
1717 Norfolk St is a vintage 20 unit apartment complex built in 1953 located within the submarket of Montrose between Richmond Ave and 59 South Freeway, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property sits on 21,717 SF of land and would be a great future ground up development opportunity.The property was recently renovated in 2018 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard. It backs up to a public park and dog park which makes a great off site amenity for the tenants.
unit mix
property summary
TOTAL NUMBER OF UNITS
20
YEAR OF CONSTRUCTION
1953
LOT SIZE
21,717 sf
YEAR RENOVATED
2018
OCCUPANCY (JULY 2019)
95%
A L L C A S H
29
property overview1717 norfolk
STYLE Garden
NUMBER OF BUILDINGS 4 two-story residential buildings
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slab, pier/beam
EXTERIOR WALLS Brick, hardi-plank
ROOF TYPE Pitched-Modified (2017)
FLOOR COVERING Faux wood plank
PAVING Concrete
WIRING Copper
PIPING PVC
OPEN SPACES10
COVERED SPACES10
TOTAL20 spaces or 1.0 spaces per unit
Construction Details
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
30
property overview 2043 Sul ross
2 0 4 3 S U L R O S S | H O U S T O N , T X 7 7 0 9 8
Avg SF Current Market Rent
1Bed/1Bath 1 650 $1,350
1Bed/1Bath 8 700 $1,369
1Bed/1Bath 1 975 $1,850
2Bed/1Bath 3 1,000 $1,767
2Bed/1Bath 1 1,250 $1,800
2043 Sul Ross is a vintage 14 unit apartment complex built in 1961 located within the submarket of Montrose between W. Alabama and Richmond Ave, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, european-style walk-in showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.
unit mix
property summary
TOTAL NUMBER OF UNITS
14
YEAR OF CONSTRUCTION
1961
LOT SIZE
12,500 sf
YEAR RENOVATED
2017
OCCUPANCY (JULY 2019)
100%
A L L C A S H O R A S S U M P T I O N
31
property overview2043 sul ross
STYLE Garden
NUMBER OF BUILDINGS 5 two-story residential buildings
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slab
EXTERIOR WALLS Brick, hardi-plank, cedar siding
ROOF TYPE Modified
FLOOR COVERING Faux wood plank
PAVING Concrete
WIRING Copper
PIPING PVC
Construction Details
OPEN SPACES8
COVERED SPACES6
TOTAL14 spaces or 1.0 spaces per unit
PARKING
ELECTRICITY Master metered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Chiller system
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
A L L C A S H O R A S S U M P T I O N loan detailsASSUMABLE FREDDIE MAC SBL LOAN
LOAN AMOUNT: $2,138,000
INTEREST RATE: 4.75%
AMORTIZATION: 30 years
MATURITY: May 2022
32
property overview 400 westmoreland
4 0 0 W E S T M O R E L A N D | H O U S T O N , T X 7 7 0 9 8
Avg SF Current Market Rent
Studio 2 450 $1,100
1Bed / 1Bath 6 600 $1,350
1Bed / 1Bath 4 650 $1,363
2Bed / 1Bath 3 850 $1,650
3Bed / 2Bath 1 1200 $2,200
400 Westmoreland is a vintage 16 unit apartment complex built in 1965 located in the Historical Westmoreland District within the submarket of Montrose between Westheimer Rd. and W. Alabama, just 3 minutes from downtown Houston, The Medical Center, Museum District and River Oaks..The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, european-style walk-in showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.
unit mix
property summary
TOTAL NUMBER OF UNITS
16
YEAR OF CONSTRUCTION
1965
LOT SIZE
10,000 sf
YEAR RENOVATED
2017
OCCUPANCY (JULY 2019)
100%
A L L C A S H
33
property overview400 westmoreland
STYLE Garden
NUMBER OF BUILDINGS 3 two-story residential buildings
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slab
EXTERIOR WALLS Brick, hardi-plank, cedar siding
ROOF TYPE Pitched composition shingles (2015)
FLOOR COVERING Faux wood plank
PAVING Concrete
WIRING Copper
PIPING PVC
OPEN SPACES8
COVERED SPACES6
TOTAL14 spaces or 1.0 spaces per unit
Construction Details
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
34
property overview 4321 mt vernon
4 3 2 1 M T V E R N O N | H O U S T O N , T X 7 7 0 0 6
Avg SF Current Market Rent
1Bed/1Bath 2 402 $1,250
1Bed/1Bath 1 505 $1,250
1Bed/1Bath 8 523 $1,283
1Bed/1Bath 2 530 $1,303
1Bed/1Bath 3 543 $1,305
4321 Mt. Vernon is a 16 unit apartment complex built in 1945 in the well-established submarket known as Montrose between Richmond and I-59, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. Located right off Highway 59, it provides tenants excellent access to one of Houston’s largest thoroughfares. The property was recently renovated in 2016 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, modern cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets, along with keyless access for each unit.
unit mix
property summary
TOTAL NUMBER OF UNITS
16
YEAR OF CONSTRUCTION
1945
LOT SIZE
10,000 sf
YEAR RENOVATED
2016
OCCUPANCY (JULY 2019)
100%
A L L C A S H
35
property overview4321 mt vernon
STYLE Garden
NUMBER OF BUILDINGS 1 two-story residential buildings
LAUNDRY FACILITY OR W/D INCLUDED W/D included
FOUNDATION Concrete post tension slab
EXTERIOR WALLS Brick, cedar siding
ROOF TYPE TPO (2018)
FLOOR COVERING Faux wood plank
PAVING Concrete
WIRING Copper
PIPING PVC
OPEN SPACES12
COVERED SPACESN/A
TOTAL12 spaces or 0.75 spaces per unit
Construction Details
PARKING
ELECTRICITY Submetered
WATER/SEWERRUBS
HOT WATER Boiler; 10 year warranty
HVAC Individual climate controlled units
MECHANICAL SYSTEMS
APPLICATION FEE $60
DEPOSITSEqual to one month’s rent
PET FEE$250 one time fee
PET DEPOSIT$250
PET RESTRICTIONS2 pets maximum | Breed restrictions
FEES & DEPOSITS
36
portfolio pro formafinancial analysis
INCOMEGross Scheduled RentLess: VacancyLess: Collection LossTotal Rental Income
Plus: Utility ReimbursementsPlus: OtherTotal Other IncomeEffective Gross IncomeEXPENSESRepairs and MaintenanceMarketingUtilitiesTotal Variable ExpensesTaxesFranchise TaxInsuranceManagement FeeTotal Operating ExpensesCapital ReservesTotal Expenses
Net Operating Income $1,126,818 $11,498 $16.83
32.57% $544,257 $5,554 $8.130.88% 14,700 150 0.22
31.69% $529,557 $5,404 $7.915.00% 83,554 853 1.252.05% 34,300 350 0.510.33% 5,531 56 0.08
15.41% 257,568 2,628 3.858.89% $148,604 $1,516 $2.223.91% 65,304 666 0.980.29% 4,900 50 0.074.69% 78,400 800 1.17
% of EGI Totals Per Unit Per SF101.12% $1,671,075 $17,052 $24.96
4.22% 69,713 711 1.040.91% 15,099 154 0.233.30% 54,614 557 0.82
% of GSR Totals Per Unit Per SF96.90% $1,601,362 $16,340 $23.920.10% 1,653 17 0.023.00% 49,578 506 0.74
100.00% $1,652,592 $16,863 $24.69% of GSR Totals Per Unit Per SF
PRO FORMA FINANCIAL ANALYSIS
37
underwriting assumptions financial analysis
Gross Scheduled Rent (GSR) – Pro Forma Year 1 GSR is projected at $1,652,592 annually, or $137,716 per month, which is in line with current market rents across the portfolio
Vacancy Loss – In Pro Forma Year 1, the Property is expected to maintain at least a 97% occupancy rate which is in line with market vacancy for similar boutique properties.
Total Rental Income – Total Rental Income equals GPI less Vacancy and Collection Loss. Pro Forma Year 1 totals $1,601,362 annually, or $133,447 per month.
Utility Reimbursements – Utility Reimbursements for Pro Forma Year 1 is projected at $54,614 annually, or $557 per unit. This value is based off actuals from May’19 financials.
Other – Other for Pro Forma Year 1 is projected at $15,099 annually, or $154 per unit. This value is based off May’19 actuals
Effective Gross Income – Effective Gross Income equals Total Rental Income plus Utility Reimbursements and Other Income and is projected at $1,671,075 in Pro Forma Year 1, or $139,256 per month.
I N C O M E E X P E N S E SRepairs and Maintenance – In Pro Forma Year 1, Repairs and Maintenance expenses are projected at $78,400 annually, or $800 per unit, which are in line with surrounding comparable properties and historical Repairs and Maintenance expenses.
Marketing – In Pro Forma Year 1, Marketing expenses are projected at $4,900 annually, or $50 per unit, which are consistent with Marketing expenses at properties of this size.
Utilities – The property has an average Utilities cost for apartment communities of this quality and area. Utilities are based on historical operations. They are projected at $65,304 annually, or $666 per unit.
Real Estate Taxes – CBMJ Montrose Portfolio is located in Harris County. The 2018 property assessment across the eight properties was $9,361,768 and the assessment for 2019 increased to $9,694,072. The Pro Forma Year 1 Tax expense is calculated by growing the 2019 assessed value by 5% and multiplying by the 2019 tax rate (2.5304 per $100). The projected Pro Forma Year 1 taxes are $257,568 or $2,628 per unit.
Franchise Taxes – In Pro Forma Year 1, Franchise Tax is calculated by taking 33.1% of 1% of Effective Gross Income, which equates to $5,531 per year.
Insurance – In Pro Forma Year 1, Insurance expenses are projected at $34,300, or $350 per unit. Insurance expenses vary depending on the coverage and deductible selected by the investor, and whether the Property is included on a single-asset or a blanket policy.
Management Fee – Management Fee is projected to be 5.00% of Effective Gross Income, which equals $83,554 annually, or $853 per unit in Pro Forma Year 1. This is in line with Urban One’s current management fee structure as shown on page 40.
Capital Reserves – The Properties average YOC is 1960. Pro Forma Year 1 Capital Reserves are projected at $14,700 annually, or $150 per unit.
Total Operating Expenses – Total Operating Expenses (including Capital Reserves) in Pro Forma Year 1 are projected to be $544,257 annually, or $5,554 per unit.
Net Operating Income – Pro Forma Year 1 Net Operating Income (after Capital Reserves) is projected at $1,126,818.
38
rent comparablesmarket overview
# Property Address Built # of Units Avg SF Avg Rent Rent PSF1 Mt Vernon Montrose Lofts 2019 42 644 $1,293 $2.01
2 Le Palais 2018 165 902 $2,145 $2.38
3 2030 Portsmouth St 1955 6 400 $1,154 $2.89
4 1901 Whitney St 1952 9 396 $1,126 $2.84
5 1501 Hyde Park Blvd 1956 32 600 $1,309 $2.18
6 1600 River Oaks Blvd 1982 12 600 $1,308 $2.18
1423 Kipling 1965 8 800 $1,279 $1.60
3412 Graustark 1958 8 722 $1,477 $2.05
3414 Graustark 1965 8 659 $1,413 $2.14
2008 Colquitt 1965 8 950 $1,617 $1.70
1717 Norfolk 1953 20 570 $1,333 $2.34
2043 Sul Ross 1961 14 820 $1,469 $1.79
400 Westmoreland 1965 16 678 $1,413 $2.08
4321 Mt. Vernon 1945 16 511 $1,273 $2.49
Comparable Set Average 1980 44 783 $1,815 $2.32
Montrose 8 Portfolio Average 1960 12 683 $1,393 $2.04
39
rent comparables map market overview
montrose
midtown
central businessdistrict
greenwy plaza
45
45
10
Richmond Ave
Kirb
y D
r
Shepherd Dr
Montrose Blvd
Taft St
Sawyer St
Houston Ave
Westheimer Rd
W Alabama St
Fairview St
W Dallas St
Eman
cipat
ion
Dr
Craw
ford
St
Mai
n St
Fann
in S
t
Loui
siana
St
Elyu
sian
St
Alabama St
Elgin St
McGowen St
Leeland St
Pease St
Harrisburg Blvd
Canal St
Polk St
Rusk St
Prairie St
W Gray St
Allen Pkwy
Waugh D
r
Memorial Dr
metrorailredline
1423 Kipling
3412 Graustark 3414 Graustark
2008 Colquitt
1717 Norfolk
2043 Sul Ross
4321 Mt. Vernon
400 Westmoreland
Washington Corridor
1
3
42
5
6
40
49
Property Management
Exclusively Presented By CBMJ Investments and Development
UrbanOne was founded in 2016 and it works alongside Bran Enterprises and CBMJ Investments & Development, LLC in order to manage multifamily properties that have been recently purchased and completely renovated.
The 82 unit portfolio will have daily oversite by UrbanOne Properties (“UrbanOne”). UrbanOne will be responsible for tenant relationships, daily maintenance of each Property, Property operating budgets, tenant charges reconciliation, and net income statements.
UrbanOne operates each property to create a consistent experience of quality, value, and satisfaction for its residents. Its consistent and personal resident focus assures maximum achievable rents for all properties, thus creating maximum achievable values and returns.
- Only manages current owner’s multifamily portfolio- Over 450 units under management in Montrose- Full time property manager, assistant manager, leasing assistant and 4 maintenance staff team- 5% Management Fee (market for these smaller assets are 8% to 12%)
UrbanOne was founded in 2016 and it works alongside Bran Enterprises and CBMJ Investments & Development, LLC in order to manage multifamily properties that have been rcently purchased and completely renovated.
The 98 unit portfolio will have daily oversight by UrbanOne Properties (“UrbanOne”). UrbanOne will be responsible for tenant relatioships, daily maintenance of each Property, Property operating budgets, tenant charges reconciliation, and net income statements.
UrbanOne operates each property to create a consistent experience of quality, value, and satisfaction for its residents. Its consistent and personal resident focus assures maximum achievable rents for all properties, thus creating maximum achievable values and returns.
• Only manages current owner’s multifamily portfolio• Over 450 units under management in Montrose• Full time property manager, assistant manager, leasing assistant, and 4 maintenance staff team• 5% Management Fee (market for these smaller assets are 8% to 12%)
property managementappendix
41
48
Rent Management
Leasing & Marketing
Resident Services
Property Management
Exclusively Presented By CBMJ Investments and Development
property management appendix
42
information on brokerage servicesappendix
TEXAS LAW REQUIRES ALL REAL ESTATE LICENSE HOLDERS TO GIVE THE FOLLOWING INFORMATION ABOUT BROKERAGE SERVICES TO PROSPECTIVE BUYERS, TENANTS, SELLERS AND LANDLORDS.
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:• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• 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.
Southwest Residential Partners, Inc.
BROKER FIRM NAME
345433
LICENSE NO.
713-425-5430
PHONE
David Oelfke
DESIGNATED BROKER’S NAME
456477
LICENSE NO.
713-425-5405
PHONE
43
disclaimer appendix
Prospective purchasers are hereby advised the Owner (“Owner”) of THE MONTROSE 8 PORTFOLIO (“Property”) is soliciting offers through Newmark Knight Frank, which may be accepted or rejected by the Owner at the Owner’s sole discretion.
Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, the Owner will be evaluating several factors including the experience and financial qualifications of the purchasing entity.
The Owner shall have no obligation to accept any offer from any prospective purchaser. The Owner reserves the right to withdraw the Property from consideration at any time prior to final execution of a Purchase Agreement.
This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The information contained herein, or any other related information provided by the Owner, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owner.
No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon.
While the Owner and Newmark Knight Frank have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owner nor Newmark Knight Frank nor any of the Owner’s or Newmark Knight Frank’s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein.
Any obligations to prospective purchasers that the Owner may have with respect to the Property are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. Prospective purchaser’s sole and exclusive rights against the Owner, with respect to this prospective transaction, the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owner, Newmark Knight Frank, or any of their respective affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.
Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owner or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.
No commission or finder’s fee shall be payable to any party by the Owner nor any affiliate or agent thereof in connection with the sale of the Property unless otherwise agreed to by the Owner in writing.
Acquisition of properties such as this offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means.
CENTRAL - HOUSTON1700 Post Oak Blvd2 BLVD Place, Suite 400Houston, TX 77056T 713-599-1800 | F 713-599-1801
Brett [email protected] T 713-337-5800M 210-860-5515
Carter [email protected] T 713-554-0133M 832-457-7843
Russell [email protected] T 713-425-5422M 832-541-1499
Matt [email protected] T 713-554-1303M 281-300-1468
Zach [email protected] T 713-425-5428M 713-897-9670
Adam [email protected] T 713-425-5433M 713-824-6066
Tip [email protected] 713-337-5810M 832-724-4288
David [email protected] T 713-337-5811M 713-412-9055
Purvesh [email protected] T 713-300-7954M 313-570-5221
INVESTMENT SALES debt & structured finance
More information is available on our website at: http://arausa.listinglab.com/MontroseCBMJ