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UNIVERSITY NORTHSIDE APARTMENTS29 Units Including 1 Studio, 20 One Bedroom and 8 Two Bedroom Units
9517 Newell Hickory Grove Road, Charlotte, NC 28215
P.O. Box 11348321 East Blvd., Suite 4Charlotte, NC 28203
704-269-4555
CHARLOTTE, NORTH CAROLINAUNIVERSITY CITY SUBMARKET
OFFERING MEMORANDUM
FOR SALE - $3,000,000
Complex Name: University Northside Apartments
Address: 9517 Newell Hickory Grove Rd
Submarket: University City
City/Zip: Charlotte, NC 28215
Type Property: Multifamily
Number of Units: Twenty-Nine (29)
Unit Mix: One (1) Studio (254 Sq. Ft.)
Four (4) One Bedroom (438 Sq. Ft.)
Sixteen (16) One Bedroom (607 Sq. Ft.)
Eight (8) Two Bedroom (704 Sq. Ft.)
Est. Total Sq. Ft.: 21,176 + Gross
17,520 + Heated Sq. Ft./Leasable
184 + Sq. Ft .Laundry Center
3,656 + Sq. Ft. Open Porch Under Roof
Total Acreage: 1.819 acres
Parking Spaces: Approx. 46 Front and Rear Parking Spaces
Date Constructed: 1989
Type Construction: Stick Built On-Slab
Doors: Metal Exterior Front Doors
Interior Masonite – Six Panel
Flooring: Luxury Vinyl Plank In All But Seven Units – Carpet
and Linoleum in Balance
Exterior Siding: Brick and Masonite Lap Board Siding
Windows: Single Hung Metal Windows Replaced With Vinyl
Replacement Windows in Approximately Half of
the Units
24 of 29 Units Remodeled - Over $700,000 in Renovations
All New AppliancesNew Luxury Vinyl Plank Flooring
Replaced or Refurbished Kitchen Cabinets and New Formica CountertopsNew Toilets, Bathroom Vanities & Accessories
New Door HardwareNew Outlets and Switches
New Closet Shelving and Vinyl BlindsReplaced Sixteen (16) of Twenty-Nine (29) Heat Pump Units
Exterior Renovations
New Signage & New Enhanced LandscapingNew Shingles and Gutters
Exterior RepaintedNew Exterior Security Lighting and Cameras
PROPERTY DESCRIPTION
Front Porches: Wooden Painted Decking and Steps
Sidewalks: Concrete
Roofing/Gutters: Asphalt Shingles – Approx. 2 Yrs. Old / New Gutters
Interior Walls/Ceilings: Drywall – Painted / Blown Ceilings
Kitchen Cabinets: Plywood Construction / Formica Countertops
Appliances: Refrigerator, Free Standing Range, Dishwashers,
Vent Hoods
Lighting: New Ceiling Fans & Lights In Living Rooms and
Bedrooms With New Bathroom and Kitchen Lighting in
24 Remodeled Units
Tubs/Showers: Acrylic Tub and Shower Combo
HVAC: Heat Pumps – Sixteen (16) New Units
INTERIOR PHOTO GALLERY
Studio254 Sq. Ft.
One Bedroom438 Sq. Ft.
Two Bedroom704 Sq. Ft.
One Bedroom607 Sq. Ft.
FLOOR PLANS
University Northside Apartments are located just off W.T. Harris Boulevard north of NODA and just south of the University of North Carolina-Charlotte (UNCC) within the University City area. Since Charlotte College became part of the University of North Carolina system in 1989, their student admissions have grown by approximately 500% with a current total student population of approximately 32,500 students.
University City Market Area Economic Highlights:
• 75,00 Employees • 23 Fortune 500 Regional Offices • 11 Million Sq. Ft. of Office Space• 11 International Firms• 3 Headquarter Locations• 150 Medical Offices and Services
MARKET OVERVIEW
University Northside Apartments is within walking distance of the Cato Campus of Central Piedmont Community College.
University City is the second fastest growth sub-market in all of Charlotte, second to the South End submarket of Charlotte. The expansion of the Lynx Blue Line Commuter Rail to UNCC completed in the Spring/Summer of 2018, has begun to greatly impact growth and development within the submarket.
Atrium Health Services – University Hospital is located within roughly a mile and a half of University Northside, a 130 bed hospital facility employing approximately 900 health care employees.
Central Piedmont Community College (CPPC)has over 10,000students attending the main Uptown campus, as well as 5satellite campuses. The Cato Campus located within ¼ mile ofUniversity Northside Apartments has over 50,000 square feet ofbuilding space. The Cato Campus is home to CPCC’s ProfessionalCareers Division, which includes its ASL Interpreter Education,Paralegal, Horticulture Technology, and Office Administrationprograms. An estimated 1,000 students attend the campus.
Maps by Zach Szczepaniak, UNC Charlotte Urban Institute Maps based on Mecklenburg County tax parcel data. Orange dots show new development since baseline year.
Map 1Dot Density Map of Mecklenburg County – 1989
Map 2Dot Density Map of Mecklenburg County - 2015
University City Market Area University City
Market Area
University Northside Apartments were constructed in 1989. With the advent and construction of I-485, development patternshave shifted considerably within Mecklenburg County (see blue outer-loop of I-485 – Map 2). With the recent completion ofthe LYNX Blue Line to UNCC, the area’s population is expected to continue to increase dramatically. Since 2000, UniversityCity’s population has grown 214%.
MARKET GROWTH
POPULATION GROWTH UNIVERSITY CITY AND MARKET AREA
Source: University City Partners
University City is the second fastest growing submarket within the Charlotte MSA, one of the fastest growing cities in America, adding an estimated 60 people per day.
City of Charlotte Fast Facts
Located approximately 1 ½ mile from University Northside Apartments, Reedy Creek Nature Preserve protects 927 acres of natural, forested habitat within Reedy Creek Park. There are over ten miles of hiking trails in the nature preserve for outdoor enthusiasts, giving visitors the opportunity to explore a variety of terrains, while enjoying scenic views of small lakes, forests, fields, streams, and wildlife. Reedy Creek Nature Preserve is also home to Reedy Creek Nature Center and the Dr. James F. Matthews Center for Biodiversity Studies.
Anglers will find numerous fishing opportunities in both Dragonfly and Slider Ponds. The adjacent 116-acre Reedy Creek Park offers three large (80 person) picnic shelters (# 1, 2 & 4), a reservable indoor (150 person) picnic shelter (# 3), five reservable small (15 person) picnic shelters (# 5, 6, 7, 8, & 9), one small non-reservable picnic shelter (# 0), numerous picnic tables, an 18-hole disc golf course, two volleyball courts, a basketball court, a playground and swing garden, two softball fields, a soccer field, restrooms, and Barkingham Park dog park.
University Northside Apartments are Located Approximately 1 ½ mile from Reedy Creek Park and Preserve, Which Offers Substantial Amenities and
Activities For Free.
AMENITIES – REEDY CREEK PARK AND NATURE CENTER
LOCATION – DRIVE TIME TO UPTOWN CHARLOTTE CENTER CITY
University Northside Apartments
ACCESS TO LIGHT RAIL (LYNX) AND DRIVE TIMES
University Northside Apartments
Map Showing Approximate Drive Times from University Northside
Map Showing Proximity of University Northside to the LYNX Light Rail’s Park and Ride Stations
AERIAL VIEW
DECEMBER, 2018 RENT ROLL
Rent Lease Lease
Unit Resident Sq. Ft. BR / BA Potential $ / Sq. Ft. Rent From To
1 Occupied 607 1/1 775.00 1.28 775.00 08/02/18 07/31/19
2 Occupied 607 1/1 750.00 1.24 750.00 12/04/18 11/30/19
3 Occupied 438 1/1 750.00 1.71 750.00 05/14/18 04/30/19
4 Occupied 607 1/1 750.00 1.24 750.00 02/01/18 12/31/99
5 Occupied 607 1/1 750.00 1.24 750.00 03/01/18 02/28/19
6 Occupied 607 1/1 775.00 1.28 795.00 06/22/18 06/21/19
7 Occupied 607 1/1 775.00 1.28 775.00 08/17/18 08/16/19
8 Vacant 438 1/1 750.00 1.71
9 Occupied 607 1/1 750.00 1.24 750.00 11/12/17 12/31/18
10 Occupied 607 1/1 775.00 1.28 775.00 11/30/18 11/30/19
11 Occupied 704 2/1 875.00 1.24 875.00 05/09/18 05/08/19
12 Occupied 704 2/1 875.00 1.24 895.00 04/27/18 04/26/19
13 Occupied 704 2/1 875.00 1.24 875.00 07/20/18 07/19/19
14 Occupied 704 2/1 875.00 1.24 875.00 11/01/18 10/31/19
15 Occupied 704 2/1 875.00 1.24 875.00 03/30/18 03/31/19
16 Occupied 704 2/1 875.00 1.24 895.00 05/04/18 05/03/19
17 Occupied 704 2/1 875.00 1.24 875.00 03/16/18 03/15/19
18 Occupied 704 2/1 875.00 1.24 875.00 04/20/18 04/19/19
19 Occupied 438 1/1 700.00 1.60 475.00 04/02/12 01/31/14
20 Occupied 607 1/1 775.00 1.28 775.00 09/01/18 08/31/19
21 Occupied 607 1/1 775.00 1.28 775.00 07/20/18 07/19/19
22 Occupied 607 1/1 775.00 1.28 775.00 10/05/18 09/30/19
23 Occupied 607 1/1 775.00 1.28 795.00 04/20/18 04/30/19
24 Occupied 438 1/1 750.00 1.71 750.00 12/07/18 11/30/19
25 Occupied 607 1/1 775.00 1.28 775.00 03/30/18 03/31/19
26 Occupied 607 1/1 775.00 1.28 775.00 08/01/18 07/31/19
27 Occupied 607 1/1 775.00 1.28 775.00 05/31/18 05/30/19
28 Occupied 607 1/1 775.00 1.28 795.00 04/27/18 04/26/19
29 Occupied 254 Studio 625.00 2.46 625.00 06/08/18 05/31/19
Total 17,350 22,875 22,000
Note: Unit 29 / Studio includes water/sewer and electrici ty.
2019 RENT ROLL PROJECTIONS
Units Sq. Ft. BR/BA Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total
Unit 1 607 1/1 $775 $775 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $9,400
Unit 2 607 1/1 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $9,300
Unit 3 438 1/1 $750 $750 $750 $750 $775 $775 $775 $775 $775 $775 $775 $775 $9,200
Unit 4 607 1/1 $750 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,550
Unit 5 607 1/1 $750 $750 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,500
Unit 6 607 1/1 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $800 $800 $9,450
Unit 7 607 1/1 $775 $775 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $9,400
Unit 8 438 1/1 $750 $750 $750 $750 $750 $775 $775 $775 $775 $775 $775 $775 $9,175
Unit 9 607 1/1 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,600
Unit 10 607 1/1 $775 $775 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,550
Unit 11 704 2/1 $875 $875 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $10,700
Unit 12 704 2/1 $875 $875 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $10,700
Unit 13 704 2/1 $875 $875 $875 $875 $875 $875 $875 $900 $900 $900 $900 $900 $10,625
Unit 14 704 2/1 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $10,500
Unit 15 704 2/1 $875 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $900 $10,725
Unit 16 704 2/1 $875 $875 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $10,700
Unit 17 704 2/1 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $10,750
Unit 18 704 2/1 $875 $875 $875 $875 $900 $900 $900 $900 $900 $900 $900 $900 $10,700
Unit 19 438 1/1 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $8,400
Unit 20 607 1/1 $775 $775 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $9,400
Unit 21 607 1/1 $775 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $800 $9,425
Unit 22 607 1/1 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $775 $9,300
Unit 23 607 1/1 $775 $775 $775 $775 $800 $800 $800 $800 $800 $800 $800 $800 $9,500
Unit 24 438 1/1 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $9,000
Unit 25 607 1/1 $775 $775 $775 $800 $800 $800 $800 $800 $800 $800 $800 $800 $9,525
Unit 26 607 1/1 $775 $775 $775 $775 $775 $775 $775 $800 $800 $800 $800 $800 $9,425
Unit 27 607 1/1 $775 $775 $775 $775 $775 $800 $800 $800 $800 $800 $800 $800 $9,475
Unit 28 607 1/1 $775 $775 $775 $775 $800 $800 $800 $800 $800 $800 $800 $800 $9,500
Unit 29 254 0/1 $625 $625 $625 $625 $625 $650 $650 $650 $650 $650 $650 $650 $7,675
TOTAL 17350 $22,950 $23,100 $23,150 $23,325 $23,400 $23,425 $23,500 $23,575 $23,575 $23,575 $23,575 $257,150 $280,150
Based on Contractual Actuals and Projected Lease Rates for 2019
2019 PRO-FORMA FINANCIALS
Pro-Forma Year One CAP Rate = 5.9%
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total
TOTAL RENTAL REVNUES $22,950 $23,000 $23,100 $23,150 $23,325 $23,400 $23,425 $23,500 $23,575 $23,575 $23,575 $23,575 $280,150
Other Revenues $485 $485 $485 $485 $485 $485 $485 $485 $485 $485 $485 $485 $5,820
Loss Vacancy Factor @ 5% -$1,148 -$1,150 -$1,155 -$1,158 -$1,166 -$1,170 -$1,171 -$1,175 -$1,179 -$1,179 -$1,179 -$1,179 -$14,008
TOTAL INCOME $22,288 $22,335 $22,430 $22,478 $22,644 $22,715 $22,739 $22,810 $22,881 $22,881 $22,881 $22,881 $271,963
OPERATING EXPENSES
TAXES, FEES AND INSURANCE
Real Estate Taxes 1 $21,985 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,985
Insurance - Property 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,731 $2,731
SUBTOTAL $21,985 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,731 $24,716
MANAGEMENT AND OTHER PROFESSIONAL FEES
Property Management Fees 3 $1,262 $1,265 $1,271 $1,273 $1,283 $1,287 $1,288 $1,293 $1,297 $1,297 $1,297 $1,297 $15,408
Other Professional Fees $0 $0 $0 $0 $0 $750 $0 $0 $0 $0 $0 $0 $750
Eviction Costs 4 $150 $0 $0 $150 $0 $0 $150 $0 $0 $150 $0 $0 $600
SUBTOTAL $1,412 $1,265 $1,271 $1,423 $1,283 $2,037 $1,438 $1,293 $1,297 $1,447 $1,297 $1,297 $16,758
UTILITIES
Electric - Owner Expense 5 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $6,600
Water/Sewer - Owner Expense 6 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $1,284 $15,408
Internet Services 7 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $900
SUBTOTAL $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $1,909 $22,008
MAINTENANCE AND REPAIRS
Extermination/Termite Bond $225 $0 $0 $225 $0 $0 $225 $0 $0 $225 $0 $0 $900
Cleaning / Janitorial $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $3,000
Trash - Owner Expense 8 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $900
Materials / Supplies $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $3,000
Maintenance, Repairs and Painting 9 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $15,600
Snow Removal / Grounds $300 $300 $450 $450 $450 $450 $450 $450 $450 $450 $300 $300 $4,800
SUBTOTAL $2,400 $2,175 $2,325 $2,550 $2,325 $2,325 $2,550 $2,325 $2,325 $2,550 $2,175 $2,175 $28,200
ADVERTISING AND MARKETING
Advertising - Rentals $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
SUBTOTAL $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,200
TOTAL OPERATING EXPENSES $27,806 $5,449 $5,605 $5,982 $5,617 $6,371 $5,997 $5,627 $5,631 $6,006 $5,481 $8,212 $92,882
TOTAL NET OPERATING INCOME -$5,519 $16,886 $16,826 $16,495 $17,027 $16,344 $16,741 $17,184 $17,251 $16,876 $17,401 $14,670 $179,080
Notes:
Note 1: Real Estate Taxes based on 2018 actuals .
Note 2: Insurance based on 2017-18 actual costs .
Note 3: Property Management fee based on 5.5% of renta l income
Note 4: Based on projection of one eviction per quarter
Note 5: Common area electric estimate based on s tabi l i zed actuals - includes laundry and securi ty l ighting
Note 6: Water estimate based on s tabl ized estimate for September, October and December, 2018 ; opportunity to submeter and reduce costs
Note 7: Internet service for l ive-l ink securi ty cameras
Note 8: Ci ty picks up garbage once per week, the additonal charges of $75 are for an extra pick-up once every two weeks
Note 9: Based on s tabi l i zed estimate post renovations .
CONTACT INFORMATION
For Additional Information Contact Owner’s Representatives:
Kieley WilsonDirector of Leasing and Operations
RCG SE, LLC 321 East Boulevard, Suite 4
Charlotte, NC [email protected] (cell)
704-269-4555 (office)
or
Jeff AlexanderVice President
RCG SE, LLC 321 East Boulevard, Suite 4
Charlotte, NC [email protected]
980-333-8859 (cell)704-269-4555
Two (2%) Percent Commission to Buyer’s Broker
RCG Realty is a registered d.b.a. of RCG SE, LLC. The owner of University Northside Apartments is an affiliated firm of RCG SE,LLC, N.C. Real Estate Commission firm number C19670. For additional information concerning the firm, contact RCG SE, LLC at828-554-3519. RCG Realty’s broker-in-charge is Gail Masterson, NC license number 229152.
University Northside Apartments are owned by an affiliated firm of RCG Realty, a registered d.b.a. of RCG SE, LLC. This Offering Memorandum is a confidential solicitation of interest, and the information provided herein is provided for the sole purpose of considering the purchase of the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Purchase Agreement on terms acceptable to the Owner. By receipt of this Offering Memorandum, prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner from any and all liability with respect hereto.
The information presented herein have been collected from sources deemed reliable and are provided only to facilitate potential buyers due diligence. The information provided is not warranted or guaranteed and the potential buyer shall be fully and solely responsible for their own verification of information. The Owner of University Northside, RCG Realty/RCG SE, LLC, and RCG LLC make no representation or warranty, expressed or implied, as to the accuracy and completeness of the data provided within this Offering Memorandum. Information provided, including forecasts and projections, herein are not warranties or representation as to the future performance of the Property.
