EAST TEXAS 26 PORTFOLIO OFFERING MEMORANDUM … · 2020. 8. 25. · EAST TEXAS 26 PORTFOLIO CONFIDENTIAL OFFERING MEMORANDUM. EAST TEXAS 26 PORTFOLIO 3 Property Overview ... 904 Lamar

CONTACT:

GARRETT KINNEYINVESTMENTS/LAND DIVISION

MULTIFAMILY [email protected]

O: (972) 419-4063C: (469) 969-9336

HENRY S. MILLER BROKERAGE, LLC5151 Belt Line Rd, Suite 900Dallas, TX 75254

www.henrysmiller.com

$1,875,000

EAST TEXAS 26 PORTFOLIO CONFIDENTIAL

OFFERING MEMORANDUM

EAST TEXAS 26 PORTFOLIO

3 Property Overview4 Unit Mix | Gross Yield Analysis5 Investment Analysis6 Rent Roll7 Palestine Map8 Bryan-College Station Map9 Regional Aerial11 IABS

Henry S. Miller has been exclusively retained to represent the Seller in the

disposition of the East Texas 26 Portfolio. All questions and inquiries regarding the

assets herein should be directed to Henry S. Miller. Qualified Investors should

contact Henry S. Miller Brokerage to schedule a tour or discuss requirements in

making an offer on the East Texas 26 Portfolio.

CONTENTS

GARRETT KINNEY

MULTIFAMILY SPECIALIST

[email protected]

O: (972) 419-4063

C: (469) 969-9336

The East Texas 26 Portfolio is situated in Palestine and Bryan-

College Station (home of Texas A&M University). The offering

includes a 5-Plex and 12 Single Family Rental (SFR) homes

located in Palestine, TX; two 4-Plex multifamily assets in College

Station, and 1 SFR in Bryan. East Texas 26 is a value-add

portfolio in desirable locations with very minimal turnover

historically.

There is a great amount of value to be created by new

Ownership in pushing rents to market supported levels with or

without professional management. Ownership currently

handles the Palestine assets “In-House”, with third-party

management for the Bryan-College Station properties. Current

Owners have been selective with screening processes, with no

evictions necessary in the past 3 years.

Occupancy is 92.3% with an Effective Gross Yield of 12.6% at a

$1.875MM Purchase Price; 14.0% Gross Yield on Market Rent.

This Portfolio stands to give investors strong returns and

diversification in solid tertiary & secondary markets with greatease of management.

Property Overview| 3

East Texas 26 Portfolio

NOTICE & DISCLAIMER: The enclosed information is from sources believed to be reliable, but Henry S. Miller Brokerage, LLC has not verified the accuracy of the information. Henry S. Miller Brokerage, LLC makes no

guarantee, warranty or representation as to the information, and assumes no responsibility for any error, omission or inaccuracy. The information is subject to the possibility of errors, omissions, changes of condition, including

price or rental, or withdrawal without notice. Any projections, assumptions or estimates are for illustrative purposes only. Recipients should conduct their own investigation.

INVESTMENT SUMMARY

Price $1,875,000

Equity Requirement 25% $468,750

Price/Door $72,115

Price/Sq. Ft. $72.41

Current T-6 Cap Rate 7.17%

Pro Forma Cap Rate 8.3%

Avg Effective Rent $769

Gross Yield on Effective Rent 12.6%

Avg Market Rent $843

Gross Yield on Market Rent 14.0%

Property Information

Number of Doors 26

Occupancy 92.3%

Avg Year Built ± 1956

Net Rentable SF ± 25,894 SF

Avg Unit Size ± 996 SF

Unit Mix| 4

East Texas 26 Portfolio East Texas 26 Portfolio




Unit Mix

Gross Yield Analysis

Rent Rent per SF

Type # Units SF % of Total Effective Market Pro Forma Effective Market Pro Forma

2/1 16 805 61.5% $629 $736 $745 $0.78 $0.91 $0.93

3/1 4 1,235 15.4% $938 $974 $975 $0.76 $0.79 $0.79

3/2 6 1,345 23.1% $983 $1,042 $1,050 $0.73 $0.77 $0.78

TOTAL: 26 25,894 $19,714 $21,920 $22,120

AVERAGE: 996 $758 $843 $851 $0.76 $0.85 $0.85

ANNUALLY: $236,568 $263,040 $265,440

Total Price $/Door Effective Market Pro Forma

$1,875,000 $72,115 12.6% 14.0% 14.2%

$1,900,000 $73,077 12.5% 13.8% 14.0%

$1,925,000 $74,038 12.3% 13.7% 13.8%

Investment Analysis | 5





Investment Analysis

East Texas 26 Portfolio Property Out Aerial | 06

East Texas 26 Portfolio




Rent Roll | 6

Rent RollAddress City State Zip County Unit Name BD/BA SF Status

Market

Rent

Effective

RentMove In Lease Start Lease End Deposit

1110 Lamar Palestine TX 75801 Anderson 1110 Lamar 2/1 1,563 Current 900 875 02/14/19 02/01/20 02/28/21 600

107 Redwood Palestine TX 75801 Anderson 107 Redwood 3/2 1,469 Current 950 950 07/31/18 08/01/19 08/31/20 600

1311 Royall Palestine TX 75801 Anderson 1311 Royall 3/1 1,292 Current 995 850 02/28/18 03/01/20 03/31/21 750

1300 Oakdale Dr Palestine TX 75801 Anderson 1300 Oakdale 3/2 1,310 Current 1,000 1,000 02/15/20 02/14/20 02/28/21 800

202 Hamilton Palestine TX 75801 Anderson 202 Hamilton 3/1 1,400 Current 975 975 07/26/19 07/26/19 07/31/20 500

2180 ACR 397 Palestine TX 75801 Anderson 2180 ACR 397 2/1 1,024 Current 850 850 06/08/20 06/08/20 06/08/21 0

943 Micheaux Palestine TX 75801 Anderson 943 Micheaux 2/1 1,080 Current 850 850 10/28/18 11/01/19 10/31/20 600

104 Hillcrest Palestine TX 75801 Anderson 104 Hillcrest 3/2 1,215 Current 950 950 6/1/2020 6/1/2020 5/31/2021 500

209 Helena St Bryan TX 77801 Brazos 209 Helena 3/2 1,444 Current 1,500 1,150 08/01/19 08/01/19 07/22/21 1,650

2401 Bosque College Station TX 77845 Brazos Bosque A 2/1 776 Vacant 750

2401 Bosque College Station TX 77845 Brazos Bosque B 2/1 776 Current 750 675 01/01/17 01/05/17 01/31/20 1,300

2401 Bosque College Station TX 77845 Brazos Bosque C 2/1 776 Vacant 750

2401 Bosque College Station TX 77845 Brazos Bosque D 2/1 778 Current 750 550 10/26/18 10/26/18 10/31/20 525

2406 Blanco College Station TX 77845 Brazos Blanco A 2/1 778 Current 735 625 8/3/2013 8/3/2013 10/31/2020 400

2406 Blanco College Station TX 77845 Brazos Blanco B 2/1 778 Current 735 650 08/01/17 08/01/17 07/31/21 600

2406 Blanco College Station TX 77845 Brazos Blanco C 2/1 778 Current 735 489 9/19/2014 9/19/2014 10/1/2020 550

2406 Blanco College Station TX 77845 Brazos Blanco D 2/1 778 Current 735 550 09/13/14 09/13/14 10/31/20 500

904 Lamar Palestine TX 75801 Anderson 904 Lamar 3/2 1,330 Current 900 900 10/28/17 11/01/19 11/01/20 400

903 Highland Palestine TX 75801 Anderson 903 Highland 3/1 1,100 Current 975 975 07/01/17 08/01/19 07/31/20 500

127 Clearview Palestine TX 75802 Anderson 127 Clearview 3/1 1,149 Current 950 950 05/31/18 06/01/19 06/30/20 850

1318 Oakdale Palestine TX 75801 Anderson 1318 Oakdale 3/2 1,300 Current 950 950 06/28/18 06/28/18 07/31/20 600

301 East Angelina Palestine TX 75801 Anderson Angelina #1 2/1 800 Current 650 475 12/31/14 06/01/20 05/31/21 0

301 East Angelina Palestine TX 75801 Anderson Angelina #2 ABP 2/1 400 Current 535 475 6/3/2020 6/3/2020 5/31/2021 275



301 East Angelina Palestine TX 75801 Anderson Angelina #5 2/1 600 Current 650 440 12/31/14 05/01/20 04/31/2021 0

AVERAGE 996 $843 $769 $552

TOTAL 25,894 $21,920 $18,454 $13,250

Occupancy Analysis

Status Units % Market Rent

Vacant 2 7.7% $1,500

Current 23 88.5% $20,420

Palestine | 7


Palestine Map

Bryan/College Station | 8


Bryan-College Station Map

Regional | 9


Regional Aerial

GARRETT KINNEYMULTIFAMILY SPECIALIST

[email protected]

O: (972) 419-4063C: (469) 969-9336

East Texas 26 Portfolio IABS| 12

NORTH TEXAS COMMERCIAL ASSOCIATION OF REALTORS ®

Before working with a real estate broker, you should know that the duties of a

broker depend on whom the broker represents. If you are a prospective seller or

landlord (owner) or a prospective buyer or tenant (buyer), you should know that

the broker who lists the property for sale or lease is the owner’s agent. A broker

who acts as a subagent represents the owner in cooperation with the listing

broker. A broker who acts as a buyer’s agent represents the buyer. A broker may

act as an intermediary between the parties if the parties consent in writing. A

broker can assist you in locating a property, preparing a contract or lease, or

obtaining financing without representing you. A broker is obligated by law to

treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the

owner, usually through a written - listing agreement, or by agreeing to act as a

subagent by accepting an offer of sub agency from the listing broker. A

subagent may work in a different real estate office. A listing broker or subagent

can assist the buyer but does not represent the buyer and must place the

interests of the owner first. The buyer should not tell the owner’s agent anything

the buyer would not want the owner to know because an owner’s agent must

disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to

represent the buyer, usually through a written buyer representation agreement. A

buyer’s agent can assist the owner but does not represent the owner and must

place the interests of the buyer first. The owner should not tell a buyer’s agent

anything the owner would not want the buyer to know because a buyer’s agent

must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies

with The Texas Real Estate License Act. The broker must obtain the written consent

of each party to the transaction to act as an intermediary. The written consent

must state who will pay the broker and, in conspicuous bold or underlined print,

set forth the broker’s obligations as an intermediary. The broker is required to treat

each party honestly and fairly and to comply with The Texas Real Estate License

Act. A broker who acts as an intermediary in a transaction:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less that the asking

price unless authorized in writing to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than the price

submitted in a written offer unless authorized in writing to do so by the buyer;

and

(4) may not disclose any confidential information or any information that a

party specifically instructs the broker in writing not to disclose unless

authorized in writing to disclose the information or required to do so by The

Texas Real Estate License Act or a court order or if the information materially

relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties

may appoint a person who is licensed under The Texas Real Estate License Act

and associated with the broker to communicate with and carry out instructions of

one party and another person who is licensed under that Act and associated with

the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written

agreement with the broker that clearly establishes the broker’s obligations and

your obligations. The agreement should state how and by whom the broker will

be paid. You have the right to choose the type of representation, if any, you wish

to receive. Your payment of a fee to a broker does not necessarily establish that

the broker represents you. If you have any questions regarding the duties and

responsibilities of the broker, you should resolve those questions before

proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant Date

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)

TREC No. OP-K • TAR 2501

Information About Brokerage Services| 11


Documents

EAST TEXAS 26 PORTFOLIO OFFERING MEMORANDUM … · 2020. 8. 25. · EAST TEXAS 26 PORTFOLIO CONFIDENTIAL OFFERING MEMORANDUM. EAST TEXAS 26 PORTFOLIO 3 Property Overview ... 904 Lamar