Embed Size (px)
Citation preview
OFFERING MEMORANDUM
DOMITPORTFOLIO
CONFIDENTIALITY AGREEMENTNon-Endorsements
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Disclaimer
THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
REDWOOD DOMIT APARTMENTSMcAllen, TX
NORTHWOOD DOMIT APARTMENTSMcAllen, TX
ACT ID Y0160101
TABLE OF CONTENTS
SECTION 1: REDWOOD MARKET COMPARABLES Rent Comparables Map Rent Comparables
INVESTMENT OVERVIEW Property Aerials
FINANCIAL ANALYSIS Operating Statement Investment Summary Growth Rate Projections Ten-Year Cash Flow SECTION 2: NORTHWOOD DOMIT APARTMENTS MARKET COMPARABLES Rent Comparables Map Rent Comparables
INVESTMENT OVERVIEW Property Aerials
FINANCIAL ANALYSIS Operating Statement Investment Summary Growth Rate Projections Ten-Year Cash Flow
PROPERTY OVERVIEW
Marcus & Millichap is pleased to announce the exclusive listing of Northwood and Redwood Domit Apartments, a 195-unit portfolio located in McAllen, Hidalgo County, Texas. Both properties boast superior locations close to major retail districts near downtown McAllen. The beautifully maintained complexes each feature top of the market amenities.
Redwood DomitInterior highlights include spacious floor plans, carpeted bedrooms, tiled flooring and full kitchens. Exterior highlights include hardie plank siding among stucco under a pitched single composition. The gated community contains a barbecue area, clubhouse, fitness center, and sparkling pool.
Northwood DomitInterior highlights include spacious floor plans, ceiling fans, carpeted bedrooms, and large walk in closets. Exterior highlights include hardie plank and stucco exteriors beneath single composition pitched roofs. Palm trees are spaced throughout the beautifully landscaped complex. Gathering areas, a private clubhouse, fitness center, and sparkling pool make up the exterior amentiies.
REDWOOD INVESTMENT HIGHLIGHTS• Spacious One and Two Bedroom Apartment Homes• Strategic Central North McAllen Location• Gated Community• Full-Size Kitchens• Strong Submarket Occupancy• Achieving Market Rent Premium
NORTHWOOD INVESTMENT HIGHLIGHTS• Beautifully Maintained Exterior• Large Walk-In Closets• Gated Community• On-Site Office• Saprkling Pool
MCALLEN, TX
RENT COMPARABLES MAP
Paradise Village
Kerria Square
Atrium Place
Stonewood Domit
Villas de Nolana
Villages at Sugar Road
Redwood Domit Apartments
Mosaic Lofts
The Landing on 6th
RENT COMPARABLES
AVERAGE OCCUPANCY
Redwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
The Landingon 6th
Villas deNolana
StonewoodDomit
Villages atSugar Road
KerriaSquare
avg. 94.49%
RENT COMPARABLES
AVERAGE RENT - MULTIFAMILY
3 BR
avg. $1,127
avg. $672
STUDIOS
1 BR
avg. $764
2 BR
avg. $946
Redwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
The Landing on
6th
Villas deNolana
Stonewood Domit
Villages at Sugar Road
KerriaSquare
Redwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
The Landing on
6th
Villas deNolana
Stonewood Domit
Villages at Sugar Road
KerriaSquare
Redwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
The Landing on
6th
Villas deNolana
Stonewood Domit
Villages at Sugar Road
KerriaSquare
Redwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
The Landing on
6th
Villas deNolana
Stonewood Domit
Villages at Sugar Road
KerriaSquare
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Redwood Domit Apartments 1X1 16 770 $825 $1.07
1001 Fern Avenue 2X2 A 30 1,099 $925 $0.84
McAllen, TX 78504 2X2 B 18 1,124 $975 $0.87
Year Built: 2004 2X2 C 4 1,173 $1,025 $0.87
Occupancy: 92 3X2 2 1,200 $1,150 $0.96
Total / Averages 70 1,037 $927 $0.89
Paradise Village Apartments 1 BR 30 760 $620 $0.82
4210 N Main St 2 BR 52 1,006 $775 $0.77
McAllen, TX 78504 Total / Averages 82 916 $718 $0.78
Year Built: 1993
Occupancy: 97%
Atrium Place 1 BR 25 863 $745 $0.86
500 E Camellia Ave 2 BR 30 1,142 $895 $0.78
McAllen, TX 78501 3 BR 5 1,272 $995 $0.78
Year Built: 2001 Total / Averages 60 1,037 $841 $0.81
Occupancy: 94%
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Mosaic Lofts Studio 26 601 $695 $1.16
300 E Camellia Ave 1 BR 33 778 $854 $1.10
McAllen, TX 78501 2 BR 21 1,139 $1,154 $1.01
Year Built: 2007 3 BR 5 1,280 $1,400 $1.09
Occupancy: 97 Total / Averages 85 843 $912 $1.08
Kerria Square 1 BR 40 800 $750 $0.94
2100 Kerria Ave 2 BR 20 900 $850 $0.94
McAllen, TX 78501 3 BR 22 1,100 $850 $0.77
Year Built: 2014 Total / Averages 82 905 $801 $0.89
Occupancy: 93%
Stonewood Domit Studio 29 583 $667 $1.14
501 E Camellia Ave 1 BR 20 733 $750 $1.02
McAllen, TX 78501 2 BR 14 1,100 $1,075 $0.98
Year Built: 2004 3 BR 14 1,210 $1,150 $0.95
Occupancy: 96 Total / Averages 77 830 $851 $1.02
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Villages at Sugar Road Studio 36 504 $605 $1.20
5228 S Sugar Rd 1 BR 36 579 $725 $1.25
Edinburg, TX 78539 1 BR 24 684 $855 $1.25
Year Built: 2013 2 BR 24 837 $925 $1.11
Occupancy: 95 2 BR 24 965 $1,080 $1.12
3 BR 24 1,192 $1,250 $1.05
Total / Averages 168 758 $872 $1.15
Villas de Nolana Studio 9 562 $720 $1.28
121 E Quamasia Ave 1 BR 39 776 $815 $1.05
McAllen, TX 78504 2 BR 58 1,158 $985 $0.85
Year Built: 2004 3 BR 14 1,289 $1,250 $0.97
Occupancy: 94% Total / Averages 120 1,004 $941 $0.94
The Landing on the 6th 1 BR 34 620 $800 $1.29
4401 N 6th St 2 BR 84 922-970 $800-$860 $0.88
McAllen, TX 78504 3 BR 32 1,012 $995 $0.98
Year Built: 1997 Total / Averages 150 886 $858 $0.97
Occupancy: 90%
AERIAL MAP
OPERATING STATEMENT
INCOME T12 T6 T3 Year 1 Per Unit Per SF
Gross Scheduled Rent 778,800 778,800 778,800 778,800 11,126 10.73
Physical Vacancy (12,404) 1.6% (1,731) 0.2% (2,846) 0.4% (38,940) 5.0% (556) (0.54)
Total Vacancy ($12,404) 1.6% ($1,731) 0.2% ($2,846) 0.4% ($38,940) 5.0% ($556) ($1)
Effective Gross Income $766,396 $777,069 $775,954 $739,860 $10,569 $10.19
EXPENSES
Real Estate Taxes 90,945 90,945 90,945 133,382 1,905 1.84
Insurance 25,485 25,485 25,485 25,485 364 0.35
Utilities - Electric 42,158 36,979 29,670 29,670 424 0.41
Repairs & Maintenance 44,109 43,899 47,324 35,000 500 0.48
Contract Services 0 0 0 10,500 150 0.14
Marketing & Advertising 2,928 3,266 2,704 2,704 39 0.04
Cable/Phone/Internet 8,051 6,337 7,061 7,061 101 0.10
General & Administrative 3,471 891 641 641 9 0.01
Management Fee 54,800 52,800 52,800 6.8% 44,392 6.0% 634 0.61
Total Expenses $271,948 $260,602 $256,629 $288,833 $4,126 $3.98
Expenses as % of EGI 35.5% 33.5% 33.1% 39.0%
Net Operating Income $494,448 $516,467 $519,325 $451,027 $6,443 $6.21
INVESTMENT SUMMARY
PROPERTY OVERVIEWYear of Construction 2004
Number of Units 70
Rentable Square Feet 72,614
Average Unit Size 1,037
Current Occupancy 98.0%
YEAR ONE/RETURNSAnnualized Per Unit
Gross Potential Rent $778,800 $11,126
Effective Gross Income $775,954 $11,085
Operating Expenses $(57,729) $(825)
NOI $519,325 $7,419
Initial Cash-on-Cash 9.73%
Year 1 Cash-on-Cash 5.17%
Year 1GRM 16.63
5-year IRR 10.79%
7-year IRR 15.55%
PRICING GUIDANCELow $7,000,000
$7,250,000
Middle $7,500,000
$7,750,000
High $8,000,000
FINANCIAL METRICSPurchase Price $7,000,000 - $7,500,000 - $8,000,000
Price/Unit $100,000 - $107,143 - $114,286
Price/SqFt $96.40 - $103.29 - $110.17
Current NOI $519,325
Current Cap 7.42% - 6.92% - 6.49%
Year 1 NOI $451,027
Year 1 CAP 6.44% - 6.01% - 5.64%
GRM Current 13.48 - 14.44 - 15.40
GRM Year 1 15.52 - 16.63 - 17.74
NEW LOAN SUMMARYOriginal Loan Amount $6,375,000
Origination Date September-17
Interest 4.70%
Interest Only Periods 0
Amortization 30 years
Term 10 years
Term Date 9/1/2027
New Monthly PMT $33,063
GROWTH RATE PROJECTIONS
Year 1 2019 2020 2021 2022 2023 2024 2025 2026 2027
INCOME
Gross Potential Rent 0.0% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Loss / Gain to Lease 1.0% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Total Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Total Other Income 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
EXPENSES
Operating Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Real Estate Taxes 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Insurance 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Utilities 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Management Fee 6%
TEN-YEAR CASH FLOWCurrent 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Income
Gross Potential Rent 778,800 778,800 802,164 826,229 851,016 876,546 902,843 929,928 957,826 986,561 1,016,157
Loss / Gain to Lease 0 0 (8,022) (8,262) (8,510) (8,765) (9,028) (9,299) (9,578) (9,866) (10,162)
Gross Scheduled Rent 778,800 778,800 794,142 817,967 842,506 867,781 893,814 920,629 948,248 976,695 1,005,996
Physical Vacancy (2,846) (38,940) (39,707) (40,898) (42,125) (43,389) (44,691) (46,031) (47,412) (48,835) (50,300)
Economic Vacancy
Non-Revenue Units 0 0 (794) (818) (843) (868) (894) (921) (948) (977) (1,006)
Bad Debt 0 0 (2,382) (2,454) (2,528) (2,603) (2,681) (2,762) (2,845) (2,930) (3,018)
Concession 0 0 (794) (818) (843) (868) (894) (921) (948) (977) (1,006)
Total Vacancy (2,846) (38,940) (43,678) (44,988) (46,338) (47,728) (49,160) (50,635) (52,154) (53,718) (55,330)Effective Gross In-come 775,954 739,860 750,465 772,978 796,168 820,053 844,654 869,994 896,094 922,977 950,666
Expenses
Operating Ex-penses (57,729) (55,906) (57,024) (58,164) (59,327) (60,514) (61,724) (62,959) (64,218) (65,502) (66,812)
Real Estate Taxes (90,945) (133,382) (134,715) (136,062) (137,423) (138,797) (140,185) (141,587) (143,003) (144,433) (145,877)
Insurance (25,485) (25,485) (25,740) (25,997) (26,257) (26,520) (26,785) (27,053) (27,323) (27,596) (27,872)
Utilities (29,670) (29,670) (29,966) (30,266) (30,569) (30,874) (31,183) (31,495) (31,810) (32,128) (32,449)
Management Fee (52,800) (44,392) (45,028) (46,379) (47,770) (49,203) (50,679) (52,200) (53,766) (55,379) (57,040)
TOTAL EXPENSES (256,629) (288,833) (292,473) (296,868) (301,346) (305,908) (310,557) (315,293) (320,120) (325,038) (330,051)
NET OPERATING INCOME 519,325 451,027 457,992 476,110 494,822 514,144 534,098 554,701 575,974 597,938 620,615
MCALLEN, TX
RENT COMPARABLES MAP
Paradise Village Kerria Square
Atrium Place
Stonewood Domit
Villas de Nolana
Villages at Sugar Road
Northwood Domit Apartments
Mosaic Lofts
The Landing on the 6th
RENT COMPARABLES
AVERAGE OCCUPANCY
Northwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
StonewoodDomit
Kerria Square
The Villages at Sugar Road
The Landing on the 6th
Villas de Nolana
avg. 94.49%
RENT COMPARABLES
AVERAGE RENT - MULTIFAMILY
Northwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
StonewoodDomit
Kerria Square
The Villages at Sugar
Road
The Landing
on the 6th
Villas de Nolana
3 BR
avg. $1,127
Northwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
StonewoodDomit
Kerria Square
The Villages at Sugar
Road
The Landing
on the 6th
Villas de Nolana
avg. $672
STUDIOS
1 BR
Northwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
StonewoodDomit
Kerria Square
The Villages at Sugar
Road
The Landing
on the 6th
Villas de Nolana
avg. $764
2 BR
Northwood Domit
Apartments
Paradise Village
Apartments
AtriumPlace
Mosaic Lofts
StonewoodDomit
Kerria Square
The Villages at Sugar
Road
The Landing
on the 6th
Villas de Nolana
avg. $946
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Northwood Domit Apartments 1 BR 44 750 $750 $1.00
201 E Quamasia Ave 2 BR 81 1,050 $925 $0.88
McAllen, TX 78504 Total / Averages 125 944 $843 $0.91
Year Built: 2001
Occupancy: 92
Paradise Village Apartments 1 BR 30 760 $620 $0.82
4210 N Main St 2 BR 52 1,006 $775 $0.77
McAllen, TX 78504 Total / Averages 82 916 $718 $0.78
Year Built: 1993
Occupancy: 97%
Atrium Place 1 BR 25 863 $745 $0.86
500 E Camellia Ave 2 BR 30 1,142 $895 $0.78
McAllen, TX 78501 3 BR 5 1,272 $995 $0.78
Year Built: 2001 Total / Averages 60 1,037 $841 $0.81
Occupancy: 94%
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Mosaic Lofts Studio 26 601 $695 $1.16
300 E Camellia Ave 1 BR 33 778 $854 $1.10
McAllen, TX 78501 2 BR 21 1,139 $1,154 $1.01
Year Built: 2007 3 BR 5 1,280 $1,400 $1.09
Occupancy: 97 Total / Averages 85 843 $912 $1.08
Kerria Square 1 BR 40 800 $750 $0.94
2100 Kerria Ave 2 BR 20 900 $850 $0.94
McAllen, TX 78501 3 BR 22 1,100 $850 $0.77
Year Built: 2014 Total / Averages 82 905 $801 $0.89
Occupancy: 93%
Stonewood Domit Studio 29 583 $667 $1.14
501 E Camellia Ave 1 BR 20 733 $750 $1.02
McAllen, TX 78501 2 BR 14 1,100 $1,075 $0.98
Year Built: 2004 3 BR 14 1,210 $1,150 $0.95
Occupancy: 96 Total / Averages 77 830 $851 $1.02
RENT COMPARABLES
Property Unit Description Number of Units
SF Market
Rent Rent / SF
Villages at Sugar Road Studio 36 504 $605 $1.20
5228 S Sugar Rd 1 BR 36 579 $725 $1.25
Edinburg, TX 78539 1 BR 24 684 $855 $1.25
Year Built: 2013 2 BR 24 837 $925 $1.11
Occupancy: 95 2 BR 24 965 $1,080 $1.12
3 BR 24 1,192 $1,250 $1.05
Total / Averages 168 758 $872 $1.15
Villas de Nolana Studio 9 562 $720 $1.28
121 E Quamasia Ave 1 BR 39 776 $815 $1.05
McAllen, TX 78504 2 BR 58 1,158 $985 $0.85
Year Built: 2004 3 BR 14 1,289 $1,250 $0.97
Occupancy: 94% Total / Averages 120 1,004 $941 $0.94
The Landing on the 6th 1 BR 34 620 $800 $1.29
4401 N 6th St 2 BR 84 922-970 $800-$860 $0.88
McAllen, TX 78504 3 BR 32 1,012 $995 $0.98
Year Built: 1997 Total / Averages 150 886 $858 $0.97
Occupancy: 90%
NORTHWOOD DOMIT APARTMENTS
NORTHWOOD DOMIT APARTMENTS
NORTHWOOD DOMIT APARTMENTS
OPERATING STATEMENT
INCOME T12 T6 T3 Year 1 Per Unit Per SF
GROSS POTENTIAL RENT 1,295,100 1,295,100 1,295,100 1,295,100 10,361 10.97
Physical Vacancy (159,395) 12.3% (158,866) 12.3% (145,976) 11.3% (64,755) 5.0% -$518 -0.55
Total Vacancy ($159,395) 12.3% ($158,866) 12.3% ($145,976) 11.3% ($64,755) 5.0% -$518 -$0.55
Effective Gross Income $1,135,705 $1,136,234 $1,149,124 $1,230,345 $9,843 $10.42
EXPENSES T12 T6 T3 Year 1
Real Estate Taxes 149,703 149,703 149,703 204,518 1,636 1.73
Insurance 46,073 46,073 46,073 46,073 369 0.39
Utilities-All 49,218 46,821 52,370 52,370 419 0.44
Repairs & Maintenance 43,878 32,939 28,671 50,000 400 0.42
Marketing & Advertising 3,468 4,269 3,639 6,250 50 0.05
Payroll 32,784 32,784 32,784 75,000 600 0.64
Cable/Phone/Internet 38,862 42,644 42,049 42,049 336 0.36
General & Administrative 9,034 4,064 3,077 6,250 50 0.05
Management Fee 38,816 36,816 36,816 3.2% 36,910 3.0% 295 0.31
Total Expenses $411,836 $396,113 $395,182 $519,421 $4,155 $4.40
Expenses as % of EGI 36.3% 34.9% 34.4% 42.2%
NET OPERATING IN-COME
$723,869 $740,121 $753,942 $710,924 $5,687 $6.02
INVESTMENT SUMMARY
PROPERTY OVERVIEWYear of Construction 2001
Number of Units 125
Rentable Square Feet 188,050
Average Unit Size 944
Current Occupancy 96.0%
YEAR ONE/RETURNSAnnualized Per Unit
Gross Potential Rent $1,295,100 $10,361
Effective Gross Income $1,149,124 $9,193
Operating Expenses $(110,220) $(882)
NOI $753,942 $6,032
Initial Cash-on-Cash 7.89%
Year 1 Cash-on-Cash 6.02%
Year 1GRM 16.18
5-year IRR 13.50%
7-year IRR 17.27%
PRICING GUIDANCELow $11,000,000
$11,250,000
Middle $11,500,000
$11,750,000
High $12,000,000
FINANCIAL METRICS
Purchase Price $11,000,000 - $11,500,000 - $12,000,000
Price/Unit $88,000 - $92,000 - $96,000
Price/SqFt $93.18 - $97.42 - $101.65
Current NOI $753,942
Current Cap 6.85% - 6.56% - 6.28%
Year 1 NOI $710,924
Year 1 CAP 6.46% - 6.18% - 5.92%
GRM Current 14.59 - 15.25 - 15.92
GRM Year 1 15.47 - 16.18 - 16.88
NEW LOAN SUMMARYOriginal Loan Amount $9,775,000
Origination Date March 2017
Interest 4.70%
Interest Only Periods 0
Amortization 30 years
Term 10 years
Term Date 9/1/2027
New Monthly PMT $50,697
GROWTH RATE PROJECTIONS
Year 1 2019 2020 2021 2022 2023 2024 2025 2026 2027
INCOME
Gross Potential Rent 0.0% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Loss / Gain to Lease 1.0% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Total Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Total Other Income 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
EXPENSES
Operating Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Real Estate Taxes 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Insurance 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Utilities 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Management Fee 3.0%
TEN-YEAR CASH FLOWCurrent 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Income
Gross Potential Rent 1,295,100 1,295,100 1,333,953 1,373,972 1,415,191 1,457,646 1,501,376 1,546,417 1,592,810 1,640,594 1,689,812
Loss / Gain to Lease 0 0 (13,340) (13,740) (14,152) (14,576) (15,014) (15,464) (15,928) (16,406) (16,898)
Gross Scheduled Rent 1,295,100 1,295,100 1,320,613 1,360,232 1,401,039 1,443,070 1,486,362 1,530,953 1,576,882 1,624,188 1,672,914
Physical Vacancy (145,976) (64,755) (66,031) (68,012) (70,052) (72,153) (74,318) (76,548) (78,844) (81,209) (83,646)
Economic Vacancy
Non-Revenue Units 0 0 (1,321) (1,360) (1,401) (1,443) (1,486) (1,531) (1,577) (1,624) (1,673)
Bad Debt 0 0 (3,962) (4,081) (4,203) (4,329) (4,459) (4,593) (4,731) (4,873) (5,019)
Concession 0 0 (1,321) (1,360) (1,401) (1,443) (1,486) (1,531) (1,577) (1,624) (1,673)
Total Vacancy (145,976) (64,755) (72,634) (74,813) (77,057) (79,369) (81,750) (84,202) (86,728) (89,330) (92,010)
EFFECTIVE GROSS INCOME 1,149,124 1,230,345 1,247,980 1,285,419 1,323,982 1,363,701 1,404,612 1,446,751 1,490,153 1,534,858 1,580,903
Expenses
Operating Ex-penses (110,220) (179,549) (183,140) (186,803) (190,539) (194,350) (198,237) (202,201) (206,245) (210,370) (214,578)
Real Estate Taxes (149,703) (204,518) (206,563) (208,629) (210,715) (212,823) (214,951) (217,100) (219,271) (221,464) (223,679)
Insurance (46,073) (46,073) (46,534) (46,999) (47,469) (47,944) (48,423) (48,908) (49,397) (49,891) (50,390)
Utilities (52,370) (52,370) (52,893) (53,422) (53,957) (54,496) (55,041) (55,592) (56,148) (56,709) (57,276)
Management Fee (36,816) (36,910) (37,439) (38,563) (39,719) (40,911) (42,138) (43,403) (44,705) (46,046) (47,427)
TOTAL EXPENSES (395,182) (519,421) (526,570) (534,416) (542,400) (550,523) (558,790) (567,203) (575,765) (584,480) (593,349)
NET OPERATING INCOME 753,942 710,924 721,409 751,003 781,582 813,178 845,822 879,547 914,388 950,378 987,554
Information About Brokerage ServicesTexas 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:o that the owner will accept a price less than the written asking price;o that the buyer/tenant will pay a price greater than the price submitted in a written offer; ando 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.
11-2-2015
Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker/Broker Firm Name or Primary Assumed Business Name License No. Email Phone
Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone
Craig R. Swanson 538612 [email protected] 512-388-7800Licensed Supervisor of Sales Agent/Associate License No. Email Phone
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord’s Initials DateInformation available at www.trec.texas.gov
IABS 1-0Regulated by the Texas Real Estate Commission
201 E QUAMASIA AVEMCALLEN, TX 78504
DOMITPORTFOLIO
1001 E FERN AVEMCALLEN, TX 78501
