THE BELVEDERE APARTMENTS€¦ · 100% Occupied and just 1 Block from the Beach Immediate Opportunity for Rent Increases Commercial Zoning Allows for Vacation Rental Opportunity in

THE BELVEDERE APARTMENTS16 Units • 404 14th Ave S • Myrtle Beach, SC 29577 OFFERING MEMORANDUM

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be

reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to

verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & 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.

THE BELVEDERE APARTMENTS

Myrtle Beach, SC

ACT ID ZAB0450025

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02

Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03

Sales Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis


3


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Legacy Business Solutions LLC 1,300

World Tour Golf Links 866

Walmart 805

AVX Corporation 787

Sands Resorts Holding LLC 750

Red Robin Gourmet Burgers Inc 729

Blue Cross 525

Legends Real Estate 500

Blue Cross and Blue Shield 443

Regenerating Pbs Band LLC 400

Compass Cove Resort 350

Crown Reef 350

DEMOGRAPHICS

1-Miles 5-Miles 7-Miles

2019 Estimate Pop 4,333 63,090 117,433

2010 Census Pop 3,622 51,037 93,339

2019 Estimate HH 1,854 27,484 50,075

2010 Census HH 1,527 21,819 39,239

Median HH Income $34,383 $43,396 $46,377

Per Capita Income $20,463 $26,863 $27,500

Average HH Income $47,826 $61,533 $64,385

UNIT MIXNUMBEROF UNITS UNIT TYPE APPROX.

SQUARE FEET16 1 Bedrooms 700

16 Total 11,200

VITAL DATAPrice $1,300,000 CURRENT YEAR 1Down Payment 25% / $325,000 CAP Rate 6.84% 7.24%Loan Amount $975,000 GRM 8.56 7.81

Loan Type Proposed New Net Operating Income $88,947 $94,088

Interest Rate / Amortization 4% / 30 Years

Net Cash Flow After Debt Service

10.18% / $33,089 11.76% / $38,230

Price/Unit $81,250 Total Return 15.46% / $50,259 17.26% / $56,100Price/SF $116.07Number of Units 16Rentable Square Feet 11,200Year Built 1985Lot Size 0.47 acre(s)

5


OFFERING SUMMARY

100% Occupied and just 1 Block from the Beach

Immediate Opportunity for Rent Increases

Commercial Zoning Allows for Vacation Rental Opportunity in The Future

INVESTMENT HIGHLIGHTS

Marcus and Millichap is pleased to present for sale the 14th Ave South Apartments in Myrtle Beach, South Carolina. The subject property, comprised of 16 units, consistsof all one-bedroom/one-bathroom units. Every unit is approximately 700 square feet. Investors will have the opportunity to own a property that is 100% occupied and justone block from the beach. The zoning is commercial, which allows for new ownership to operate the subject property as a hotel or vacation rental/Airbnb in the future.The property was built in 1985, and interior upgrades include new tile flooring, updated appliances, and updated fixtures. Leases range from $750 to $800 a month.Ownership also has the opportunity to implement rent increases, as other similar multifamily properties in this area are asking $920 to $1,200 a month for one-bedroomunits. This will give investors the opportunity to add value by increasing rents or covering units to short term rentals. Several tenants are leasing month-to-month,meaning this could be implemented immediately.

Travel US News rated Myrtle Beach as the 7th best Family beach destination in the United States. As the largest resort along South Carolina's 60-mile Grand Strand,Myrtle Beach is the East Coast's ultimate vacation destination. For the third year in a row, The U.S. Census Bureau ranked Myrtle Beach the second-fastest growingmetropolitan area in the country based on percent population growth between 2017 and 2018. The town is not only a popular vacation destination which attracts morethan one million visitors annually, but also has a significant number of permanent residents. 30,000 people reside in Myrtle Beach full-time, and more than 17,000people moved to Horry County between 2017-2018, representing a 3.8 percent growth.

INVESTMENT OVERVIEW

6

RECENTRENOVATIONS

EXCELLENT LOCATION

IMMEDIATE RENT INCREASES


PROPERTY SUMMARYOFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $975,000

Loan Type Proposed New

Interest Rate 4%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 75%

Debt Coverage Ratio 1.59

THE OFFERING

Property The Belvedere Apartments

Price $1,300,000

Property Address 404 14th Ave S, Myrtle Beach, SC

SITE DESCRIPTION

Number of Units 16

Year Built/Renovated 1985

Rentable Square Feet 11,200

Lot Size 0.47 acre(s)

Type of Ownership Fee Simple

7

MYRTLE BEACH INTERNATIONALAIRPORT

SUBJECT PROPERTY

WHISPERING PINESGOLF COURSE

MYRTLE BEACHBOARDWALK

FAMILY KINGDOWN AMUSEMENT PARK

REGIONAL MAP


8

Broadway at the Beach, Myrtle Beach’s most populardestination, is just 3.7 miles from the property. The complexsits on 350+ acres, and houses more than 20 restaurantsand 100 retail stores.


9

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

10

FINANCIAL ANALYSIS


11

RENT ROLL DETAIL

FINANCIAL ANALYSIS


OPERATING STATEMENT

12

FINANCIAL ANALYSIS


PRICING DETAIL

13

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL

CORPORATION CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to

enhance value

Enhanced control through

investor qualification support


MMCC’s ability to qualify

investor finance contingencies


MMCC’s ability to monitor

investor/due diligence and

underwriting to ensure timely,

predictable closings


quickly identifying potential

debt/equity sources,

processing, and closing

buyer’s finance alternatives

WHY MMCC?

National platform

operating

within the firm’s

brokerage offices

$ 7.18 billion

total national

volume in 2019

Access to

more capital

sources than

any other firm

in the industry

Closed 1,944

debt and equity

financings

in 2019

14



15

MARKET

COMPARABLES


SALES COMPARABLES MAP

16


(SUBJECT)

512 29th Ave N

Academy Way Condos

McCray Court

SALES COMPARABLES

1

2

3

PROPERTY NAMETHE BELVEDERE APARTMENTS

SALES COMPARABLES

17

SALES COMPARABLES

Avg. $68.69

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

The

Belvedere

Apartments

512 29th

Ave N

Academy

Way Condos

McCray

Court

Average Price Per Square Foot

Avg. $83,250

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

The

Belvedere

Apartments

512 29th

Ave N

Academy

Way Condos

McCray

Court

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

Units Unit Type

Offering Price: $1,300,000 16 1 Bdrs

Price/Unit: $81,250

Price/SF: $116.07

CAP Rate: 6.84%

GRM: 8.56

Total No. of Units: 16

Year Built: 1985

Underwriting Criteria

Income $151,848 Expenses $62,901

NOI $88,947

THE BELVEDERE APARTMENTS404 14th Ave S, Myrtle Beach, SC, 29577

1

Units Unit Type

Close Of Escrow: 4/29/2020 4 2 Bdr 1.5 Bath Twnhs

Sales Price: $475,000

Price/Unit: $95,000

Price/SF: $79.17


Year Built: 1995

512 29TH AVE N512 29th Ave N, Myrtle Beach, SC, 29577

Units Unit Type

Close Of Escrow: 7/19/2020 32 2 Bdr 1 Bath Garage

Sales Price: $2,600,000

Price/Unit: $81,250

Price/SF: $74.40


Year Built: 1984

2

ACADEMY WAY CONDOS 810 65th Ave N, Myrtle Beach, SC, 29572

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Units Unit Type

Close Of Escrow: 7/30/2018 10 1 Bdr 1 Bath Twnhs

Sales Price: $735,000

Price/Unit: $73,500

Price/SF: $52.50


Year Built: 2003

3

MCCRAY COURT 1020 CREEL ST, CONWAY, SC, 29527


20

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on May 2020

POPULATION 1 Miles 5 Miles 7 Miles

2024 Projection

Total Population 4,639 69,251 131,030

2019 Estimate


2010 Census


2000 Census


Daytime Population

2019 Estimate 7,417 91,450 138,385

HOUSEHOLDS 1 Miles 5 Miles 7 Miles

2024 Projection

Total Households 1,993 30,412 55,944

2019 Estimate


Average (Mean) Household Size 2.25 2.28 2.33

2010 Census


2000 Census


Growth 2015-2020 7.50% 10.65% 11.72%

HOUSING UNITS 1 Miles 5 Miles 7 Miles

Occupied Units

2024 Projection 1,993 30,412 55,944

2019 Estimate 3,005 40,717 73,850

Owner Occupied 908 14,495 29,761

Renter Occupied 946 12,989 20,314

Vacant 1,151 13,233 23,776

Persons In Units

2019 Estimate Total Occupied Units 1,854 27,484 50,075

1 Person Units 33.66% 32.16% 29.53%

2 Person Units 37.00% 36.61% 37.47%

3 Person Units 13.75% 14.61% 15.32%

4 Person Units 8.58% 9.60% 10.53%

5 Person Units 3.67% 4.20% 4.47%

6+ Person Units 3.29% 2.81% 2.68%

HOUSEHOLDS BY INCOME 1 Miles 5 Miles 7 Miles

2019 Estimate

$200,000 or More 1.50% 3.11% 3.07%

$150,000 - $199,000 1.48% 2.33% 2.67%

$100,000 - $149,000 4.69% 8.10% 9.39%

$75,000 - $99,999 7.66% 10.01% 10.97%

$50,000 - $74,999 16.24% 19.46% 20.41%

$35,000 - $49,999 17.58% 16.97% 16.92%

$25,000 - $34,999 13.53% 14.09% 13.32%

$15,000 - $24,999 16.56% 12.91% 11.82%

Under $15,000 20.77% 13.04% 11.43%

Average Household Income $47,826 $61,533 $64,385

Median Household Income $34,383 $43,396 $46,377

Per Capita Income $20,463 $26,863 $27,500

POPULATION PROFILE 1 Miles 5 Miles 7 Miles

Population By Age

2019 Estimate Total Population 4,333 63,090 117,433

Under 20 18.42% 20.55% 21.44%

20 to 34 Years 20.93% 23.33% 20.87%

35 to 39 Years 6.72% 6.76% 6.56%

40 to 49 Years 13.78% 12.11% 12.28%

50 to 64 Years 23.18% 19.91% 20.26%

Age 65+ 16.99% 17.33% 18.58%

Median Age 42.97 39.49 40.91

Population 25+ by Education Level

2019 Estimate Population Age 25+ 3,310 46,405 85,837

Elementary (0-8) 4.64% 2.98% 2.28%

Some High School (9-11) 9.79% 6.85% 5.89%

High School Graduate (12) 40.18% 31.85% 30.34%

Some College (13-15) 20.05% 24.32% 24.53%

Associate Degree Only 5.90% 9.15% 9.81%

Bachelors Degree Only 11.53% 16.49% 18.07%

Graduate Degree 7.15% 7.52% 8.33%

Population by Gender

2019 Estimate Total Population 4,333 63,090 117,433

Male Population 50.50% 49.89% 49.34%

Female Population 49.50% 50.11% 50.66%

21

Income

In 2019, the median household income for your selected geography is

$34,383, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 11.50%

since 2000. It is estimated that the median household income in your

area will be $38,304 five years from now, which represents a change

of 11.40% from the current year.

The current year per capita income in your area is $20,463, compare

this to the US average, which is $33,623. The current year average

household income in your area is $47,826, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 4,333. The

population has changed by 39.77% since 2000. It is estimated that

the population in your area will be 4,639.00 five years from now,

which represents a change of 7.06% from the current year. The

current population is 50.50% male and 49.50% female. The median

age of the population in your area is 42.97, compare this to the US

average which is 38.08. The population density in your area is

1,379.15 people per square mile.

Households

There are currently 1,854 households in your selected geography. The

number of households has changed by 36.83% since 2000. It is

estimated that the number of households in your area will be 1,993

five years from now, which represents a change of 7.50% from the

current year. The average household size in your area is 2.25 persons.

Employment

In 2019, there are 4,051 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

56.30% of employees are employed in white-collar occupations in

this geography, and 40.42% are employed in blue-collar occupations.

In 2019, unemployment in this area is 4.44%. In 2000, the average

time traveled to work was 18.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

71.35% White, 12.76% Black, 0.07% Native American and 2.60%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 12.63% of the current year

population in your selected area. Compare this to the US average of

18.17%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $136,382 in 2019,

compare this to the US average of $212,058. In 2000, there were 727

owner occupied housing units in your area and there were 628 renter

occupied housing units in your area. The median rent at the time was

$538.

Source: © 2019 Experian

DEMOGRAPHICS

22

CHARLOTTE OFFICE CHARLESTON OFFICE RALEIGH OFFICEGREENSBORO OFFICE

NATE M C D A N I E LFirst Vice President InvestmentsOffice [email protected] NC LC539 SC 96405 GA 38803

Z A C H O D E HAgent CandidateOffice: [email protected]

B EN B UR YAssociateOffice [email protected] NC 284004 SC 109452

JOHN CARTER JOHNSONAssociateOffice [email protected] NC 306549

W ILLIAM W ALKERAssociateOffice [email protected] NC 308618

IAN TURNBULLAssociate DirectorOffice [email protected] NC 292026 SC 104521 GA 385705

WILLIAM GRAVES JR.AssociateOffice [email protected] SC 95930

JIM DAVIS, CCIMSenior Associate DirectorOffice [email protected] NC 187177 SC 81764

RYAN GAVIGANAssociateOffice [email protected] NC 263253

201 S. Tryon St, Suite 1220 151 Meeting St, Suite 450 200 CentrePort Dr, Suite 160 101 J Morris Commons Ln, Suite 130

INVESTMENT ADVISORS

W I N D Y P A R S O N SAgent CandidateOffice: [email protected]: NC: 287889

RYAN LIPOMIAgent CandidateOffice [email protected] SC 81531

McDANIEL TEAM STAFF FINANCING & DEBTMARCUS & MILLICHAP STAFF

ELIZABETH COLWELLBroker AdministratorOffice [email protected]

SUPPORTING STAFF

RYAN MCDANIELFinancial AnalystOffice [email protected]

LUCAS TURNBULLFinancial AnalystOffice [email protected] NC 298962 SC 111555

BEN YELMRegional ManagerOffice [email protected]

ALYSSA ZEVAOperations ManagerOffice [email protected]

JARED CASSIDYMMCC RepresentativeOffice [email protected]

TEAM STATISTICS IN 2019

1,996 UNITS

CLOSED

11 – 204UNITS IN EACH TRANSACTION

$118,419,350 IN CLOSINGS

99.4% LIST TO SALE PRICE RATIO

EXCLUSIVELY LISTED BY:

WILLIAM GRAVES JR.AssociateOffice [email protected] SC 95930

NATE MCDANIELFirst Vice President InvestmentsOffice [email protected] NC LC539 SC 96405 GA 38803

IAN TURNBULLAssociate DirectorOffice [email protected] NC 292026 SC 104521 GA 385705

Documents

THE BELVEDERE APARTMENTS€¦ · 100% Occupied and just 1 Block from the Beach Immediate Opportunity for Rent Increases Commercial Zoning Allows for Vacation Rental Opportunity in