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Price: TBD by Market5005 Manor Rd | Austin, TX 78723Price: TBD by Market
A 58-UNIT MULTIFAMILY ASSET MINUTESFROM MAJOR EMPLOYMENT,
RETAIL, AND ENTERTAINMENT
PROPERTY DETAILS
SITE INFORMATIONNumber of Units 58
Year Built 1969
Land Size 2.23 acres (26 units/acre)
NRA 49,915± SF
Occupancy 100% (as of Aug '19)MECHANICAL SYSTEMS
Electrical Individually metered (resident pays)
HVAC Individual climate controlled units
Hot Water Boiler system (RUBS)
Water/Sewer RUBS (resident pays)CONSTRUCTION
Style Garden
Foundation Concrete post tension slabs
Exterior Brick
Roof Flat
Floor Covering Faux wood
Paving Asphalt
Wiring Aluminum, pigtailed
Piping CopperPARKING
Total Surface Spaces 98
INTERIOR AND COMMUNITY AMENITIES
INVESTMENT HIGHLIGHTS
• Outstanding value-add opportunity adjacent to the Mueller Redevelopment, one of the fastest growing areas in Austin
• Substantial renovation completed with extensive interior and exterior upgrades, providing investors with a "newer" construction type product
• All unit interiors have been updated with new wood vinyl flooring, brushed nickel fixtures, new black or stainless steel appliances, and two tone paint with accent walls
• Differentiating factors consist of large fenced-in yards, bark park and pet washing station, access gates with electronic keypads, balconies, modernized laundry facility, and two-story townhome design
• Owner spent roughly $135,000 on capital improvements, including replacing both boilers, an added storage unit with a workshop, added sconces and other exterior lighting, exterior paint, landscaping, replacement of stairs/landings, water heaters, HVAC systems, signage, and the addition of a bike storage area
• Value add opportunity: » Owner has renovated four units which are achieving premiums up to $250 » Opportunity to incorporate washer/dryer connections or Euro washer/dryer units throughout the property
» New owner could continue the existing successful upgrade package and/or enhance the property to compete with newer and upgraded assets with granite/quartz countertops, cherrywood cabinets, modern kitchen backsplashes, Nest thermostats, etc.
» Enhance pool area with outdoor kitchen/picnic area » Nearby Class A properties are achieving $600+ per month more than Mueller Square – significant room for new owner to grow rents
• Affordability factor: renters are being pushed out of urban Austin due to the $2,500+ per month rental rates; Mueller Square has an excellent position in the market providing clean, comfortable living at roughly $1,200 per month
• Pool plaza with lounge furniture• On-site laundry facility• Dog park and pet washing station• Bike storage• On-site management office• Storage container/workshop• Faux wood plank flooring• Black or stainless steel appliances• Ceramic tile backsplash*• Granite or silestone countertops*
• Dark wood cabinetry• Farmhouse apron kitchen sinks*• Brushed nickel fixtures• Custom wood shelf wine racks*• Tile-surround tub/shower*• Modern, floating bathroom sinks*• Spacious walk-in closets• Accent wall• Fenced-in yards*
*in select units
A 58-UNIT MULTIHOUSING INVESTMENT OPPORTUNITYPRICE: TBD BY MARKET
AREA HIGHLIGHTS & PROFORMA
PROFORMA
INCOME TOTAL PER UNIT
GROSS SCHEDULED RENT1 $879,648 $15,166
Less: (Gain) / Loss-to-Lease 0 0
GROSS POTENTIAL INCOME $879,648 $15,166
Less: Vacancy 43,982 758
Less: Non-Revenue Units 0 0
Less: Collection Loss 8,796 152
Less: Concessions 13,195 228
TOTAL RENTAL INCOME $813,674 $14,029
Plus: RUBS Income2 34,849 601
Plus: Other Income3 34,799 600
Plus: Trash Income 17,505 302
TOTAL OTHER INCOME 87,152 1,503
EFFECTIVE GROSS INCOME $900,827 $15,532
EXPENSES TOTAL PER UNIT
Repairs and Maintenance $31,900 $550
Payroll 29,000 500
Administrative 8,700 150
Marketing 8,700 150
Trash Expense 15,950 275
Utilities4 49,784 858
TOTAL VARIABLE EXPENSES $144,034 $2,483
Taxes5 171,988 2,965
Insurance 13,050 225
Management Fee 36,033 621
TOTAL OPERATING EXPENSES $363,785 $6,272
Plus: Capital Reserves6 17,400 300
TOTAL EXPENSES $381,185 $6,572
NET OPERATING INCOME $518,322 $8,937
1. Gross Scheduled Rent based on in-place market rents as of 8/2/19 rent roll 2. RUBS Income based on a 70% billback ratio3. Other Income and Trash Income grown 3% from Jun'19 T11 Actuals4. Adjusted Utilities grown 3% from Jun'19 T11 Actuals5. Taxes based off of the 2019 mill rate of $2.196521 per $1006. Numbers do not reflect actual expense
AREA HIGHLIGHTS
• Locataed adjacent to the Mueller Redevelopment, one of Austin's fastest-growing mixed-use areas » 711-acre mixed-use urban village consisting of 4.5M SF of office and retail, more than 5,700 homes
and 140 acres of parks, trails, and open space; home to the Dell Children’s Medical Center of Central Texas, Austin Studios, 83,000 SF H-E-B Grocery, Texas Mutual Insurance headquarters, and the future Austin Energy headquarters
» Texas Mutual Insurance's headquarters opened its 270,000 square foot headquarters in 2018 » Austin Energy has begun construction on its $150 million, 275,000 square foot headquarters with
room for up to 1,000 employees » Aldrich Street (Mueller Town Center) is comprised of 42 acres, 1.2M square feet of planned retail,
restaurants, and entertainment including Alamo Drafthouse; the District will be the “pulse of the Mueller community” and a game changer for the area
» Mueller Business District will be comprised of three additional office buildings with capacity for over 750,000 square feet of office space; Building 1, a new six-story, 235,000 square foot facility, is scheduled to break ground in late 2019 and deliver in late 2020
• Exceptional area demographics: average household income of $89,200 within a one-mile radius and an employment base of 177,265 within a five-mile radius (U.S. Census Bureau, Aug '19)
• Major nearby employers include Dell Children's Medical Center, St. David's Medical Center, Texas Mutual Insurance, Seton Healthcare, and the University of Texas, among others
• Minutes away from retail, dining, and entertainment options including: » Airport Boulevard - growing corridor for new and local dining options including Sala and Betty, Bun
Belly, Quality Seafood Market, Komé Sushi Kitchen, Eastside Pies, Barfly’s, The Soup Peddler, In-N-Out Burger, The Brewtorium
» Manor Road - known as “Restaurant Row", defined by eclectic restaurants, neighborhood bars and coffee shops such as Dai Due, Bird Bird Biscuit, Salty Sow, Haymaker, Yuyo, Patrizi's, Thunderbird Coffee, and Sugar Mama’s Bakeshop
» East Austin - less than three miles to East Austin's diverse array of amenities including chef-inspired restaurants, neighborhood bars, eclectic retail, and artisan coffee shops
» Downtown Austin - only three miles to the "Live Music Capital of the World"• Within minutes of the University of Texas at Austin (52,000 enrollment) and the UT Austin Medical
District – one of Austin’s largest and most anticipated development projects with over 575,000 square feet of space dedicated to education, administration, and research; expected to produce over 15,000 jobs once complete
• Recreation nearby: Morris Williams Golf Course, Batholomew District Park, Mueller Lake Park, Hancock Recreation Center, and Little Walnut Creek Greenbelt, among others
• Austin MSA in-migration of 53,806 from Jul ‘17 to Jul ‘18 – the fastest growth of any metro with at least 1 million residents (U.S. Census Bureau, Apr ‘19)
• Austin added 41,683 net new jobs, growth of 3.74%, in the 12 months ending in April, making it the second fastest growing major metro (USBLS, May ‘18)
• Austin ranked #1 “Best City to Live in the U.S.” for the third consecutive year (U.S. World & News Report, Apr ‘19)
COMMERCIAL
RETAIL
PARKS & OPEN SPACE
4.5MSQUARE FEET
14,500EMPLOYEES
40+SHOPS & RESTAURANTS
750,000SQUARE FEET
13MILES OF TRAILS
140ACRES
by the numbers
UNIT TYPE # OF UNITS SIZE (SF) MKT RENT PER UNIT
MKT RENT PER SF
1 BR / 1 BA (A1) 21 645 $1,099 $1.702 BR / 1 BA (B1) 20 960 $1,279 $1.33
2 BR / 1.5 BA (B2) 17 1,010 $1,450 $1.44AVG. / TOTAL 58 861 $1,264 $1.47
Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units.
A 58-UNIT MULTIHOUSING INVESTMENT OPPORTUNITYPRICE: TBD BY MARKET
Additional information for Mueller Square is available on our website at:http://arausa.listinglab.com/MuellerSquare
MUELLER REDEVELOPMENT711-acre mixed-use urban village consisting of 4.5M SF of office and retail, more than 5,700 homes and 140 acres of parks, trails, and open space; home to the Dell Children’s Medical Center of Central Texas, Austin Studios, 83,000 SF H-E-B Grocery, Texas Mutual Insurance headquarters, and future Austin Energy headquarters
DOWNTOWN AUSTINEmployment base of 105,000+ jobs; population of approx 11,000; ranked #1 “Best City to Live in U.S.”
ST. DAVID’S MEDICAL CENTER
MANOR RDKnown as “Restaurant Row” featuring local favorites like Dai Due, Bird Bird Biscuit, Salty Sow, Haymaker, Thunderbird Coffee, and Sugar Mama’s Bakeshop
MLK JR RAIL STOP
UNIVERSITY OF TEXAS AT AUSTINSecond largest university in Texas with a total enrollment of about 52,000 students and 24,000 staff/faculty members
HANCOCK CENTER410,400 SF retail center featuring H-E-B Grocery, 24 Hour Fitness, Petco, Freebirds World Burrito, and Jason’s Deli
35
35
N
MANOR RD
OLD MANOR RD
AIRPORT BLVD
MUELLER BLVD
E 51ST ST
RED RIVER ST
AIRPORT BLVD
E 7TH ST
MLK JR BLVD
MORRIS WILLIAMSGOLF COURSE
MLK JR BLVD
BERKMAN DR
ALDRICH ST
ALDRICH STA 1.2M SF mixed-use district described as the “pulse” of the Mueller neighborhood; featuring a diverse mix of office, retail, dining, and entertainment options, the district creates a 24-hour lifestyle. Favorites include Alamo Drafthouse Cinema, Halcyon Coffee, Lick Ice Cream, B.D. Riley’s Irish Pub, Colleen’s Kitchen, Orangetheory Fitness, and more
METRORAIL
AIRPORT BLVDGrowing corridor for new and local dining options including Sala and Betty, Bun Belly, Quality Seafood Market, Komé Sushi Kitchen, Eastside Pies, Barfly’s, The Soup Peddler, In-N-Out Burger, The Brewtorium
EAST AUSTINAustin’s east side is a rapidly gentrifying neighborhood defined by eclectic restaurants, neighborhood bars, and coffee shops; also becoming a major employment hub with over 2.2M square feet of new office space delivered, under construction, or proposed
E 5TH ST
MEDICAL DISTRICTDell Medical School and its teaching hospital, Dell Seton Medical Center at the University of Texas, are part of a vibrant health district and one of Austin’s largest and most anticipated development projects; the Dell Seton Medical Center is a 500,000 square foot, 211-bed cutting-edge teaching hospital and Level 1 Trauma Center
DELL CHILDREN’S HOSPITAL1,600 EMPLOYEES
FUTURE AUSTIN ENERGYUP TO 1,000 EMPLOYEES
AISD PERFORMING ARTS CENTER200+ EVENTS PER YEAR
SETON HEALTHCARE CORPORATE OFFICE650 EMPLOYEES
TEXAS MUTUAL INSURANCE700 EMPLOYEES
MUELLER MARKET DISTRICTCommunity-serving retail center anchored by the 83,000 SF H-E-B Grocery, which is the company’s most sustainable store to date; other tenants include Torchy’s Tacos, Noon Mediterranean, Xian Sushi and Noodles, Starbucks, and MOD Pizza
PLAZA SALTILLO RAIL STOP
This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by Newmark Knight Frank (NKF) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by NKF was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.
www.ngkf.comCentral Texas: 2530 Walsh Tarlton Ln, Suite 200, Austin, TX 78746 T 512.342.8100
DEBT & STRUCTURED FINANCE:
Matt [email protected]
Patrick [email protected]
James [email protected]
INVESTMENT SALES:
Andrew [email protected]
Matt [email protected]
Patton Jones512.637.1213 [email protected]
