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Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
ROANOKE APARTMENT HOMES
Senior [email protected]
SCOTT TREVEY, CCIMSenior Associate [email protected]
ARVLE KNIGHT, CCIM
CONFIDENTIAL OFFERING MEMORANDUMExclusively presented by
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
TABLE OF CONTENTS
2
5Executive Summary6Property Description7Property Details8Complete Highlights9Additional Photos
PROPERTY INFORMATION
11Location Maps12Aerial Maps13Site Plan
LOCATION INFORMATION
15Financial Summary16Investment Summary17Income & Expenses18Rent Roll19Unit Mix Summary
FINANCIAL ANALYSIS
21Sale Comps23Sale Comps Summary24Sale Comps Map
SALE COMPARABLES
26Demographics Map & ReportDEMOGRAPHICS
CONTENTS
3
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
DISCLAIMER
CONFIDENTIALITY & DISCLAIMER
All materials and information received or derived from Kasten Long Commercial Group its directors, officers, agents, advisors, affiliates and/orany third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property,compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of theproperty, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither Kasten Long Commercial Group its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express orimplied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from anysource, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence todetermine these and other matters of significance to such party. Kasten Long Commercial Group will not investigate or verify any such mattersor conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. Kasten Long Commercial Group makes no warranties and/or representations regarding the veracity, completeness, or relevanceof any financial data or assumptions. Kasten Long Commercial Group does not serve as a financial advisor to any party regarding any proposedtransaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ fromactual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean thatrents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well asmarket conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified publicaccountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition ofthe property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriateengineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Kasten LongCommercial Group in compliance with all applicable fair housing and equal opportunity laws.
Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
SECTION 1
PROPERTY INFORMATION
5
PROPERTY HIGHLIGHTS
• Mix of one-bed, two-bed and efficiency floor plans
• New in-suite washer-dryers
• Low-density garden-style setting
• Fenced private back yards
• Lush landscaping and courtyards
• New roofs
• New energy efficient windows
• New electrical service panels
• Copper plumbing
• Exterior makeover: Paint & Landscaping
• New Doors and Windows
• Most units heavily upgraded
• Upside in rents
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 1. PROPERTY INFORMATION
OFFERING SUMMARY
Offering Price: $2,369,000
Number Of Units: 15
Cap Rate: 5.35%
NOI: $126,711
Lot Size: 0.75 Acres
Building Size: 9,035 SF
Year Built: 1955
Renovated: 2018
Zoning: M-H, R-4
Market: Midtown
Sub Market: Phoenix CountryClub
Cross Streets: Thomas and Central
6
PROPERTY OVERVIEW
The Roanoke Apartment Homes offer one-bedroom,two-bedroom and efficiency floor plans. This nicely updatedmid-century modern property provides a unique blend ofrefined city living and sophisticated nightlife at the core ofMidtown Phoenix. Significant recent system upgrades includeall new electric service panels, upgraded freshwater supplylines, new roofs, many new AC units, exterior and landscapemakeover, new parking lots, mailboxes, lighting, and upgradedlit covered parking. Most unit interiors have received extensiveremodeling to include new flooring, service panels, cabinets,counters, appliances, fans, fixtures, doors, windows and trim.Nine (9) of the units have been extensively updated, and two(2) more have recently been reconstructed to a contemporarystandard. This leaves 4 'period correct' units for newownership to upgrade for maximum return. Two of these are2-bedroom/2-bath units. While some units are currentlyrented at or near market rents, there are others withsignificant rent upside.
LOCATION OVERVIEW
Located in the Midtown neighborhood between Park Centraland the Phoenix Country Club, The Roanoke ApartmentHomes provide easy access to local businesses, art andculture.
LOCATION DEMAND
Surrounded by office, retail, recreation, museums, nightlifeand fine dining the Roanoke Apartment Homes offer tenantsthe quiet enjoyment of single-level residency with maturetrees, private back yards and updated interiors. Close toeverything, and at a fraction of the rent charged at the newmulti-story apartments, the Roanoke Apartment Homes arethe first choice for mid-town living.
UPSIDE
With tenancy wait lists for occupancy there is easy upside inrent at the property. Value-add can be as simple as adjustingrents to market.
.
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 1. PROPERTY INFORMATION
7
PROPERTY NAME: Roanoke Apartment Homes
PROPERTY ADDRESS: 502-518 E Roanoke AvenuePhoenix, AZ 85004
APN: 118-45-017, 118-45-017-A, 118-45-018, 118-45-018-A
PRICE / SF: $262.20
LOT SIZE: 0.75 AC
BUILDING SIZE: 9,035 SF
BUILDING CLASS: C
ZONING: M-H, R-4
PARKING SPACES: 21
YEAR BUILT: 1955
NUMBER OF STORIES: 1
FOUNDATION: Concrete Slab
WALLS: Block
NUMBER OF UNITS: 15
ROOF: Composition Asphalt
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 1. PROPERTY INFORMATION
8
PROPERTY HIGHLIGHTS
• Mix of one-bed, two-bed and efficiency floor plans
• Low-density garden-style setting
• Fenced private back yards
• Lush landscaping and courtyards
• New roofs
• New electrical service panels
• Copper plumbing
• Exterior makeover: Paint & Landscaping
• New Doors and Windows
• Most units heavily upgraded
• Upside in rents
• Covered parking
• Premium Mid-town location
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 1. PROPERTY INFORMATION
9
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 1. PROPERTY INFORMATION
Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
SECTION 2
LOCATION INFORMATION
11
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 2. LOCATION INFORMATION
12
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 2. LOCATION INFORMATION
13
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 2. LOCATION INFORMATION
Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
SECTION 3
FINANCIAL ANALYSIS
15
INVESTMENT OVERVIEW CURRENT RENTS MARKET RENTS
Price $2,369,000 $2,369,000
Price per Unit $157,933 $157,933
GRM 13.8 13.0
CAP Rate 5.4% 5.8%
Cash-on-Cash Return (yr 1) 2.82 % 4.23 %
Total Return (yr 1) $44,517 $54,606
Debt Coverage Ratio 1.19 1.28
OPERATING DATA CURRENT RENTS MARKET RENTS
Gross Scheduled Income $171,780 $182,400
Other Income $500 $500
Total Scheduled Income $163,691 $173,780
Vacancy Cost $8,589 $9,120
Gross Income $163,691 $173,780
Operating Expenses $36,980 $36,980
Net Operating Income $126,711 $136,800
Pre-Tax Cash Flow $20,007 $30,096
FINANCING DATA CURRENT RENTS MARKET RENTS
Down Payment $710,700 $710,700
Loan Amount $1,658,300 $1,658,300
Debt Service $106,704 $106,704
Debt Service Monthly $8,892 $8,892
Principal Reduction (yr 1) $24,510 $24,510
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 3. FINANCIAL ANALYSIS
502-518 E Roanoke Avenue, Phoenix, AZ, 85004
UNITS: 15
LOT SIZE: 0.75 AC
BUILDING SIZE: 9,035 SF
PARCEL: 118-45-017, 118-45-017-A, 118-45-018,118-45-018-A
COOLING/HEATING: Individual package units
PARKING: 21
ROOF: Composition Asphalt
CONSTRUCTION: Block
BUILT: 1955
UTILITIES: Individually Metered Electric
ZONING: M-H, R-4
LAUNDRY: in unit and on-site
Directions: Central Avenue to Thomas Road, east to 5thStreet, south to property.
SITE INFORMATION
PROPERTY DESCRIPTION
The Roanoke Apartment Homes offer efficiency, one-bedroom, andtwo-bedroom floor plans. This nicely updated mid-century modern propertyprovides a unique blend of refined city living and sophisticated nightlife atthe core of Midtown Phoenix. Significant recent system upgrades include allnew electric service panels, upgraded freshwater supply lines, new roofs,many new AC units, new energy efficient windows, exterior and landscapemakeover, new parking lots, mailboxes, lighting, and upgraded lit coveredparking. Most unit interiors have received extensive remodeling to includenew flooring, service panels, cabinets, counters, appliances, fans, fixtures,doors, windows and trim. Nine (9) of the units have been extensivelyupdated, and two (2) more have recently been reconstructed to acontemporary standard. This leaves 4 'period correct' units for newownership to upgrade for maximum return. Two of these are 2-bedroom/2-bath units. While some units are currently rented at or near market rents,there are others with significant rent upside.
Located in the Midtown neighborhood between Park Central and the PhoenixCountry Club, The Roanoke Apartment Homes provide easy access to localbusinesses, art and culture.
$2,369,000 Offering Price$710,700 Down Payment
$1,658,300 Proposed Loan (4.99%)
Projected Cash Flow$136,800 NOI
- $106,704 Loan Payments$30,096 Annual Cash Flow
Return on Investment$30,096 / $710,700 4.23% (Cash on Cash)
INCOME & EXPENSESCURRENT PROFORMA
Units Mix Size (sf) Rent Rent/sf Total Rent Total
2 2/1 Basic 860 $827 $0.96 $1,654 $1,050 $2,1002 1/1 Basic 635 $773 $1.22 $1,546 $900 $1,8002 1/1 Ins Renov 635 $921 $1.45 $1,842 $1,000 $2,0006 1/1 Renovated 635 $1,129 $1.78 $6,774 $1,150 $6,9001 0/1 Renovated 380 $800 $2.11 $800 $800 $8002 0/1 Renovated 300 $800 $2.67 $1,600 $800 $1,600
15 9,050 14,216 15,200
Current Rents Market RentsGross Monthly Income $14,315 $15,200Gross Rents $171,780 $182,400
Other Income $500 $500Vacancy -$8,589 -$9,120
Gross Operating Income $163,691 $173,780Less Estimated Expenses -$36,980 -$36,980
Net Operating Income $126,711 $136,800
Estimated Annual ExpensesInsurance $3,195 $3,195Management $7,860 $7,860Repair & Maint $7,500 $7,500Utilities: Water & Sewer $10,880 $10,880Utilities: Electricity $695 $695Utilities: Gas $788 $788Utilities: Trash $1,731 $1,731Property Taxes $4,331 $4,331
TOTAL $36,980 $36,980
Per Unit / SF $2,465 / $4.09 $2,465 / $4.09
FINANCING AND INVESTMENT RETURN
Current Rents Proforma RentsOffering Price $2,369,000 $2,369,000Price / Unit $157,933 $157,933Price / sf $262.20 $262.20Cap Rate 5.4% 5.77%GRM 13.8 12.99
SALE INFORMATION
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 3. FINANCIAL ANALYSIS
16
17
INCOME SUMMARY CURRENT RENTS PER UNIT MARKET RENTS PER UNIT
Gross Rents $171,780 $11,452 $182,400 $12,160
Other Income $500 $33 $500 $33
Vacancy -$8,589 -$572 -$9,120 -$608
GROSS INCOME $163,691 $10,912 $173,780 $11,585
EXPENSE SUMMARY CURRENT RENTS PER UNIT MARKET RENTS PER UNIT
Insurance $3,195 $213 $3,195 $213
Management $7,860 $524 $7,860 $524
Repair & Maint $7,500 $500 $7,500 $500
Utilities: Water & Sewer $10,880 $725 $10,880 $725
Utilities: Electricity $695 $46 $695 $46
Utilities: Gas $788 $52 $788 $52
Utilities: Trash $1,731 $115 $1,731 $115
Property Taxes $4,331 $288 $4,331 $288
GROSS EXPENSES $36,980 $2,465 $36,980 $2,465
NET OPERATING INCOME $126,711 $8,447 $136,800 $9,120
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 3. FINANCIAL ANALYSIS
18
UNITNUMBER
UNITBED
UNITBATH
UNITSIZE (SF)
CURRENTRENT
CURRENTRENT (PER SF)
MARKETRENT
MARKETRENT/SF
502-1 Basic 2 1 860 $818 $0.95 $1,050 $1.22
502-2 Basic 1 1 635 $778 $1.23 $900 $1.42
502-3 (Ren) 1 1 635 $1,177 $1.85 $1,150 $1.81
504-4 (Ren) 0 1 300 $900 $3.00 $800 $2.67
506-5 Basic 2 1 860 $835 $0.97 $1,050 $1.22
506-6 (Ins) 1 1 635 $921 $1.45 $1,000 $1.57
506-7 (Ins) 1 1 635 $921 $1.45 $1,000 $1.57
512-4 Basic 1 1 620 $767 $1.24 $900 $1.45
512-5 (Ren) 1 1 645 $1,100 $1.71 $1,150 $1.78
512-6 (Ren) 1 1 635 $1,150 $1.81 $1,150 $1.81
512-7 (Ren) 0 1 380 $800 $2.11 $800 $2.11
518-1 (Ren) 1 1 635 $1,150 $1.81 $1,150 $1.81
518-2 (Ren) 1 1 635 $1,073 $1.69 $1,150 $1.81
518-3 (Ren) 1 1 635 $1,125 $1.77 $1,150 $1.81
518-4 (Ren) 0 1 300 $800 $2.67 $800 $2.67
Totals/Averages 9,045 $14,315 $1.58 $15,200 $1.78
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 3. FINANCIAL ANALYSIS
19
UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MIN RENT MAX RENT MARKET RENT MARKET RENT/SF
2/1 Basic 2 13.3 860 $827 $0.96 $818.00 $835.00 $1,050 $1.22
1/1 Basic 2 13.3 635 $773 $1.22 $767.00 $778.00 $900 $1.42
1/1 Ins Renov 2 13.3 635 $921 $1.45 $921.00 $921.00 $1,000 $1.57
1/1 Renovated 6 40.0 635 $1,129 $1.78 $1,073.00 $1,177.00 $1,150 $1.81
0/1 Renovated 1 6.7 380 $800 $2.11 $800.00 $800.00 $800 $2.11
0/1 Renovated 2 13.3 300 $800 $2.67 $800.00 $800.00 $800 $2.67
Totals / Averages 15 100% 9,050 $14,216 $1.57 $13,850.00 $14,530.00 $15,200 $1.68
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 3. FINANCIAL ANALYSIS
Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
SECTION 4
SALE COMPARABLES
21
SUBJECT PROPERTY502-518 E Roanoke Avenue | Phoenix, AZ 85004
$2,369,000Sale Price: 1955Year Built:
9,035 SFBuilding SF: $262.20Price PSF:
15No. Units: $157,933Price / Unit:
13.79GRM: 5.35%Cap:
$126,711NOI:
18 ON EIGHTEEN3311 N 18th St | Phoenix, AZ 95016
$2,900,000Sale Price: 1979Year Built:
17,100 SFBuilding SF: $169.59Price PSF
18No. Units $161,111Price / Unit
6.01%CAP: 09/09/2018Closed:
100%Occupancy:
1
1
fully renovated, 2-bed / 1.5 bath units
14 ON ELEVENTH4020 N 11th St. | Poenix, AZ 85014
$2,240,000Sale Price: 1962Year Built:
10,452 SFBuilding SF: $214.31Price PSF
14No. Units $160,000Price / Unit
6%CAP: 05/15/2017Closed:
90%Occupancy:
2
2
fully renovated property, 100% 2/1 units
MARIPOSA APARTMENTS38 E Mariposa St | Phoenix, AZ 85012
$1,020,000Sale Price: 1955Year Built:
5,398 SFBuilding SF: $188.96Price PSF
7No. Units $145,714Price / Unit
5.33%CAP: 01/31/2018Closed:
100%Occupancy:
3
3
Minor updating completed: mix of 1 and 2 bed units
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 4. SALE COMPARABLES
22
TURNEY756-802 W Turney Ave | Phoenix, AZ 85013
$3,750,000Sale Price: 1956Year Built:
14,550 SFBuilding SF: $257.73Price PSF
24No. Units $156,250Price / Unit
5.5%CAP: 10/09/2018Closed:
90%Occupancy:
4
4
100% 1/1 units: fully renovated w in-unit washer-dryers
CAMPBELL APARTMENTS2417 E Campbell Ave | Phoenix, AZ 85016
$3,150,000Sale Price: 1960Year Built:
15,252 SFBuilding SF: $206.53Price PSF
24No. Units $131,250Price / Unit
08/01/2018Closed: 90%Occupancy:
5
5
Partial Renovation completed, mix of studio, 1/1 and 2/1 units
MODERN RETRO LIVING2104-2122 E Fairmount Ave | Phoenix, AZ 85016
$3,500,000Sale Price: 1964Year Built:
17,467 SFBuilding SF: $200.38Price PSF
23No. Units $152,173Price / Unit
6%CAP: 06/12/2017Closed:
100%Occupancy:
6
6
Fully renovated: mix of 1/1 and 2/1 units
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 4. SALE COMPARABLES
23
SUBJECT PROPERTY PRICE PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSERoanoke Apartment Homes502-518 E Roanoke AvenuePhoenix, AZ 85004
$2,369,000 $262.20 $157,933 5.35% 13.79 15 -
SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE
118 on Eighteen3311 N 18th StPhoenix, AZ 95016
$2,900,000 17,100 SF $169.59 $161,111 6.01% - 18 09/09/2018
214 on Eleventh4020 N 11th St.Poenix, AZ 85014
$2,240,000 10,452 SF $214.31 $160,000 6% - 14 05/15/2017
3Mariposa Apartments38 E Mariposa StPhoenix, AZ 85012
$1,020,000 5,398 SF $188.96 $145,714 5.33% - 7 01/31/2018
4Turney756-802 W Turney AvePhoenix, AZ 85013
$3,750,000 14,550 SF $257.73 $156,250 5.5% - 24 10/09/2018
5Campbell Apartments2417 E Campbell AvePhoenix, AZ 85016
$3,150,000 15,252 SF $206.53 $131,250 - - 24 08/01/2018
6Modern Retro Living2104-2122 E Fairmount AvePhoenix, AZ 85016
$3,500,000 17,467 SF $200.38 $152,173 6% - 23 06/12/2017
PRICE PRICE/SF PRICE/UNIT CAP GRM # OF UNITSTOTALS/AVERAGES $2,760,000 $206.43 $150,572 5.77% - 18.33
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 4. SALE COMPARABLES
24
502-518 E Roanoke Avenue | Phoenix, AZ 85004SUBJECT PROPERTY
1 3311 N 18th StPhoenix, AZ 95016
18 ON EIGHTEEN 2 4020 N 11th St.Poenix, AZ 85014
14 ON ELEVENTH 3 38 E Mariposa StPhoenix, AZ 85012
MARIPOSA APARTMENTS
4 756-802 W Turney AvePhoenix, AZ 85013
TURNEY 5 2417 E Campbell AvePhoenix, AZ 85016
CAMPBELL APARTMENTS 6 2104-2122 E Fairmount AvePhoenix, AZ 85016
MODERN RETRO LIVING
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 4. SALE COMPARABLES
Exclusively Presented By:
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
KLCommercialGroup.com
SECTION 5
DEMOGRAPHICS
26
POPULATION 1 MILE 3 MILES 5 MILES
Total population 14,300 144,239 361,388
Median age 36.6 32.4 32.0
Median age (Male) 36.3 32.5 31.8
Median age (Female) 36.8 32.5 32.2
HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES
Total households 7,037 58,618 135,242
# of persons per HH 2.0 2.5 2.7
Average HH income $57,890 $50,631 $53,742
Average house value $349,361 $322,247 $339,831
* Demographic data derived from 2010 US Census
Roanoke Apartment Homes502-518 E ROANOKE AVENUE, PHOENIX, AZ
SECTION 5. DEMOGRAPHICS