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OFFERING MEMORANDUM
1306 SW SWANN DRIVE | GAINESVILLE, GA 30501
SWANNVILLAS
LISTED BY
AUSTIN GRAHAMAssociate
D: +1 (404) 445-1091M: +1 (407) [email protected] No. SL3421373 (FL)
DAVID HARRINGTONEVP & Managing Director
D: +1 (310) 295-1170M: +1 (310) [email protected] No. 01320460 (CA)
CONNOR KERNSAssociate
D: +1 (404) 445-1090M: +1 (419) [email protected] No. SL3417384 (FL)
BROKER OF RECORDKYLE MATTHEWSLicense No. 67120 (GA)
TABLE OF CONTENTS
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16 AREA OVERVIEW
04 PROPERTY OVERVIEW
FINANCIAL OVERVIEW
PROPERTY OVERVIEW
SWANNVILLAS
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Matthews Real Estate Investment Services™ is proud to offer The Swann Villas Apartments located at 1306 SW Swann Drive in Gainesville, Georgia 30501. This 24-Unit, newer construction apartment building is an opportunity for an investor to purchase the one of the premier living options in an extremely sough-after suburban market in Gainesville, Georgia. Located just under an hour from downtown Atlanta (I-85 to I-985), a 5 minute (1.4 Miles) drive to downtown
Gainesville, tenants appreciate and enjoy the conveniently location in the Gainesville area with quick and easy access to all of Atlanta’s attractions. Tenants also enjoy the quiet residential complex with spacious 4 bedroom/3.5 Bath floor plans, townhome style units, and parking directly in front of the unit entrance.
This property consists of a desirable and unique unit mic of (24) Four bedroom/Three and a half bathroom units. This offering presents an incredible opportunity for an investor to own a newly constructed apartment building in a high demand rental market with continuous growth potential and the basis to preform light
value add additions to appliances and countertops to increase the top line rental income metric. COVID-19 has had no impact on vacancy rates or late payments on the Swann Villas.
OPPORTUNITY
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• 24 Units, Built in 2015 • Gross Building Square Footage of 38,400 SF
• Consists of (24) Four bedroom/Three and a half bathroom units• Three bedrooms upstairs with two bathrooms and one-bedroom
downstairs with one full bathroom.• Lot Size: 3.4 Acres
• Townhome-Style Units • Walk Score: (63) Somewhat Walkable
• Black Appliances, Vinyl Flooring, and Wooden Cabinets• All Electric, No Gas
• Hall County • Opportunity Zone: Yes
HIGHLIGHTS
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• Lyman Hall Elementary School • Fair Street International School
• Gainesville Middle School • Gainesville High School
SCHOOLS
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FINANCIAL OVERVIEW
SWANNVILLAS
VALUATION SUMMARY
1306 SW SWANN DRIVEGAINESVILLE, GA 30501
Number of Units: 24
Year Built: 2015
APN: 00129-001017
Gross Sq. Ft.: 38,400
Average S.F. Per Unit: 1,600
Lot Size (Acres): 3.40
Density: 7
LIST PRICE
PRICE/UNIT
PRICE/FOOT
CURRENT PRO FORMA MARKET
CAP RATE GRM CAP RATE GRM CAP RATE GRM
$3,665,000 $152,708 $95.44 5.77% 11.21 5.75% 11.21 7.63% 9.09
TOTALUNITS
UNIT MIX
UNIT MIX %
CURRENT MARKET
AVG RENT MONTHLY RENT RENT MONTHLY RENT
24 4+3.5 100% $1,135 $27,250 $1,400 $33,600
Scheduled Monthly Rent: $27,250 $33,600
Scheduled Yearly Rent: $327,000 $403,200
UNIT MIX
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CURRENT PRO FORMA MARKET
Scheduled Gross Income: $327,000 $327,000 Current Rent $403,200 23% Upside
Less Vacancy Reserve: $16,350 5.0% $16,350 5.0% $20,160 5.0%
Gross Operating Income: $310,650 $310,650 $383,040
Expenses: $99,171 30.3% $99,900 30.55% $103,520 25.67% *
Net Operating Income: $211,479 $210,750 $279,520
Loan Payments: $122,773 $138,647 $138,647
Pre-Tax Cash Flow: $88,705 9.1% $72,103 6.60% $140,873 12.90% **
Plus Principal Reduction: $45,033 $49,379 $49,379
Total Return Before Taxes: $133,738 13.74% $121,482 11.12% $190,252 17.42% **
* As a percent of Scheduled Gross Income
** As a percent of Down Payment
ANNUAL OPERATING SUMMARY
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PRO FORMA ESTIMATES % OF SGI CURRENT PER UNIT PRO FORMA PER UNIT MARKET PER UNIT % OF SGI
Property Taxes 2.724% x Sale Price x 40% 10.08% $31,318 $1,305 $35,938 $1,497 $35,938 $1,497 8.9%Off-Site Management 5.0% x GOI 7.67% $23,824 $993 $15,533 $647 $19,152 $798 4.8%Insurance $350 x Units 2.19% $6,813 $284 $8,400 $350 $8,400 $350 2.1%Turnover/Cleaning $150 x Units 0.22% $675 $28 $3,600 $150 $3,600 $150 0.9%Repairs & Maintenance $500 x Units 4.67% $14,511 $605 $12,000 $500 $12,000 $500 3.0%HVAC Repairs Actual 2019 0.72% $2,235 $93 $2,235 $93 $2,235 $93 0.6%Reserves $150 x Units 0.00% $0 $0 $3,600 $150 $3,600 $150 0.9%Pest Control Actual 2020 Projected 0.48% $1,500 $63 $1,500 $63 $1,500 $63 0.4%Landscaping $350 x Units 3.09% $9,600 $400 $8,400 $350 $8,400 $350 2.1%Utilities - Electric Actual 2020 Projected 1.94% $6,017 $251 $6,017 $251 $6,017 $251 1.5%Utilities - Water Actual 2020 Projected 0.04% $132 $6 $132 $6 $132 $6 0.0%Garbage Disposal Actual 2020 Projected 0.02% $56 $2 $56 $2 $56 $2 0.0%General Administrative (Accounting, Licensing, Computer & Internet) Actual 2019/2020
Projected 0.80% $2,490 $104 $2,490 $104 $2,490 $104 0.6%
Total Expenses 31.92% $99,171 $4,132 $99,900 $4,163 $103,520 $4,313 25.7%
Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $38,131 $1,589 11.7%Total Expense without Taxes $67,853 $2,827 20.75%
PRO FORMA ANNUAL OPERATING EXPENSES
UNIT MIX RENT MARKET RENT
1306 4+3.5 $1,225 1,4001307 4+3.5 $1,000 1,4001310 4+3.5 $1,200 1,4001311 4+3.5 $1,000 1,4001314 4+3.5 $1,225 1,4001315 4+3.5 $1,000 1,4001318 4+3.5 $1,150 1,4001319 4+3.5 $1,000 1,4001322 4+3.5 $1,150 1,4001323 4+3.5 $1,000 1,4001326 4+3.5 $1,200 1,4001327 4+3.5 $1,000 1,4001348 4+3.5 $1,200 1,4001352 4+3.5 $1,200 1,4001356 4+3.5 $1,100 1,4001360 4+3.5 $1,175 1,4001364 4+3.5 $1,200 1,4001368 4+3.5 $1,150 1,4001372 4+3.5 $1,250 1,4001376 4+3.5 $1,225 1,4001380 4+3.5 $1,150 1,4001384 4+3.5 $1,200 1,4001388 4+3.5 $1,200 1,4001392 4+3.5 $1,050 1,400Totals 24 $27,250 $33,600
Averages $1,135 $1,400
RENT ROLL
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RENT COMPARABLES
PROPERTY UNITS TOTAL SF VINTAGE UNIT MX RENT SQ FT. RENT/SQ FT.
Swann Villas - 1306 SW Swann Dr 24 38,400 2015 4+3.5 $1,135 1600 $0.71
Villas at Midtown - 906-934 Midtown Way
Gainesville, GA 34 52,224 2006 4+3 $1,289 1600 $0.81
Paces Landing Apartments - 100 Paces Ct
Gainesville, GA140 168,000 2002 4+2 $1,425 1428 $1.00
The Cottages at Riley Place - 52 Mallory Dr
Dawsonville, GA144 150,000 2020/2019 4+3.5 $1,754 1720 $1.02
Fountains at Kelly Mill - 545 Fountain Ln Cumming, GA
46 74,520 2016 4+3 $1,811 1620 $1.12
Average $1,570 $0.99
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SWANNVILLAS
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VILLAS
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AREA OVERVIEW
SWANNVILLAS
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POPULATION 1-Mile 3-Mile 5-Mile
2025 Projection 5,893 37,398 73,214
2020 Estimate 5,722 35,967 69,732
Growth: 2020-2025 2.99% 3.98% 4.99%
Growth: 2010-2020 3.57% 6.17% 9.26%
HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2025 Projection 2,357 12,669 24,267
2020 Estimate 2,254 12,100 23,039
Growth: 2020-2025 4.57% 4.70% 5.33%
Growth: 2010-2020 8.21% 8.42% 10.34%
INCOME 1-Mile 3-Mile 5-Mile
2020 Average Household Income $84,853 $75,992 $82,037
AREA DEMOGRAPHICS
GAINESVILLE, GAThe city of Gainesville is the county seat of Hall County, Georgia. Because of
its large number of poultry processing plants, it is often called the “Poultry
Capital of the World.” Gainesville is the principal city of, and is included in,
the Gainesville, Georgia Metropolitan Statistical Area, which is included in
the Atlanta-Sandy Springs-Gainesville, Georgia Combined Statistical Area.
Gainesville is the home of the Gainesville Theater Alliance, a partnership
between Brenau University, the University of North Georgia, Theatre
Wings, and the Professional Company. This coalition provides theatrical
entertainment for the entire Gainesville area. GTA utilizes both professional
and student actors in its productions and their performances have been
nationally acclaimed.
The Northeast Georgia History Center is a museum established by Brenau
University in Downtown Gainesville that focuses on the heritage of the
Northeast Georgia region. Some notable exhibits include the Land of
Promise and Northeast Georgia Sports Hall of Fame.
The Quinlan Visual Arts Center is a non-profit arts association initially
founded as the Gainesville Arts Association in 1942. The Quinlan Visual Arts
Center acts as an exhibit, with multiple galleries on display throughout
the year, as well as an event center. It is also an affiliate of the Arts Council
and provides art classes for both children and adults.
Gainesville is also home to the Gainesville Ballet Company which is
a partnership with Brenau University and the Gainesville School of
Dance. One of their more popular performances throughout the year is
Tchaikovsky’s The Nutcracker.
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Atlanta is the capital of and the most populous city in the U.S. state of Georgia, the cultural and economic center of the Atlanta metropolitan area, and the ninth largest metropolitan area in the United States.
Atlanta is an “alpha-” or “world city”, exerting a significant impact upon commerce, finance, research, technology, education, media, art, and entertainment. It ranks 36th among world cities and 8th in the nation with a gross domestic product of $270 billion. Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology.
Atlanta is home to professional franchises for three major team sports: the Atlanta Braves of Major League Baseball, the Atlanta Hawks of the National Basketball Association, and the Atlanta Falcons of the National Football League. Due to the more than 30 colleges and universities located in the city, Atlanta is considered a center for higher education.
AREA OVERVIEW
ATLANTA GEORGIA
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Encompassing $304 billion, the Atlanta metropolitan area is the eighth-largest economy in the country and 17th-largest in the world. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or
global headquarters for many corporations. Atlanta contains the country’s third largest concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air
Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations.
25 FORTUNE 500/1000
HEADQUARTERS
#1 BEST STATE FOR DOING
BUISNESS
#1 MOST TRAVELED
AIRPORT IN THE WORLD
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This Offering Memorandum contains select information pertaining to the business and affairs of Swann Villas located at 1306 SW Swann Drive, Gainesville, GA 30501 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner
detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
CONFIDENTIALITY AGREEMENT & DISCLAIMER
LISTED BY
GAINESVILLE, GA
SWANNVILLAS
DAVID HARRINGTONEVP & Managing Director
D: +1 (310) 295-1170M: +1 (310) 497-5590
[email protected] No. 01320460 (CA)
AUSTIN GRAHAMAssociate
D: +1 (404) 445-1091M: +1 (407) 463-9752
[email protected] No. SL3421373 (FL)
CONNOR KERNSAssociate
D: +1 (404) 445-1090M: +1 (419) 733-5906
[email protected] No. SL3417384 (FL)
BROKER OF RECORDKYLE MATTHEWS
License No. 67120 (GA)
