VILLA DARVI GARFIELD APARTMENTS - LoopNet...VILLA DARVI & GARFIELD # of Units Unit Type Unit Square Footage Total Monthly Rent Average Rent PSF Total Proforma Monthly Rent Proforma

INVESTMENT OFFERING

Salt Lake City, Utah

VILLA DARVI &GARFIELD

APARTMENTS

This Investment Offering provides the Opportunity to acquire TWO SIGNIFICANTLY RENOVATED APARTMENT PROPERTIES consisting of 30 units in Salt Lake City, Utah. The two properties, VILLA DARVI and GARFIELD, are located in the center of Sugar House, one of the city’s most desirable neighborhoods.

HIGHLIGHTS INCLUDE:• Quality location in Sugar House core urban area; direct proximity to Westminster College

• Residential neighborhood provides direct, walkable access to nearby amenities, yet serves as a more intimate alternative to the larger neighboring communities along the primary street corridor

• All 30 units have been completely renovated, with an average interior capex investment of $16,700/unit

• Renovations have grown revenue over 40% since acquisition with an in-place rental rate of $1.77 psf

• Exterior capex investments include replacement of stair tower at Garfield ($30,000 – including foundation work and landing reinforcement), roof repairs, landscaping and plumbing

OVERVIEW AND OPPORTUNITY

INVESTMENT SUMMARYName: Villa Darvi Apartments Garfield Apartments

Address: 1912 South Douglas StreetSalt Lake City, Utah

1150 East Garfield AvenueSalt Lake City, Utah

Unit Mix: 1 BR, 1 BA (610 avg. sq. ft.): 15 units 1 BR, 1 BA (600 sq. ft.): 5 units2 BR, 2 BA (750 sq. ft.): 10 unitsTotal: 15 units

Building Size: 9,150 sq. ft. 10,500 sq. ft.

Site Size: 0.32 acres 0.25 acres

Parcel Number: 16-17-476-016 16-17-411-012

Age: 1968/1995 1963/1995

Zoning: RMF-35 R-1-5000

Sales Price: $2,821,000 ($188,067/unit) $3,156,000 ($210,400/unit)

Total Sales Price: $5,978,000 ($199,267/unit)

Cap Rate: 5.00% In Place NOI 5.00% In Place NOI

2VILLA DARVI &GARFIELD APARTMENTS

PROJECT VICINITY

Imagery: Google Earth/Landsat/Copernicus

Sugar House Park

Salt Lake Country Club

Liberty Park

Hogle Zoo

Forest DaleGolf Course

Nibley ParkGolf Course

15

80

80

80

215

toPark City

TRAX Green Line

TRAX S-Line

TRAX Red Line

State Street State Street

1300 East 1300 EastHighland Drive

700 East

Foothill Drive2100 South

2700 South

3300 South

1300

Sou

th

500 South

1700

Sou

th

TRAX Main Line

UTA FrontRunner


HistoricTrolley Square

GARFIELD APARTMENTS

VILLA DARVI APARTMENTS

Primary Children’sHospital

TS SAL

GU

OD

E 0021

E 0021

HOLLYWOOD AVE

MCC

LELL

AND

ST

1100

E

DOWNINGTON AVE

MCCLELLAN D

ST

GARFIELD AVE

RAMONA AVE

DOWNINGTON AVE

TS HTE

BAZILE

ALLEN PARK DR

WESTMINSTER AVEWESTMINSTER AVE

WESTMINSTER AVE

RAMONA AVE

E 0031

Salt Lake CitySome Imagery by nearmap - F:\Projects\SL\PaulJ\1912sDouglas\Rooftop-L_both.mxd - 4/8/2019 Raymond.Brady

PROJECT BOUNDARIES

TS SAL

GU

OD

E 0021

E 0021

HOLLYWOOD AVE

MCC

LELL

AND

ST

1100

E

DOWNINGTON AVE

MCCLELLAN D

ST

GARFIELD AVE

RAMONA AVE

DOWNINGTON AVE

TS HTE

BAZILE

ALLEN PARK DR

WESTMINSTER AVEWESTMINSTER AVE

WESTMINSTER AVE

RAMONA AVE

E 0031

Salt Lake CitySome Imagery by nearmap - F:\Projects\SL\PaulJ\1912sDouglas\Rooftop-L_both.mxd - 4/8/2019 Raymond.Brady


GARFIELD APARTMENTS

VILLA DARVI APARTMENTS

VILLA DARVI PHOTOS


GARFIELD PHOTOS


PROFORMA OPERATING STATEMENT AND TRANSACTION STRUCTURE

Transaction StructureVilla Darvi(In-Place)

Garfield(In-Place)

Total(In-Place)

Villa Darvi(Proforma)

Garfield(Proforma)

Total(Proforma)

Value @ 5.00% Cap Rate $ 2,821,000($188,067/unit)

$ 3,156,000($210,400/unit)

$ 5,978,000($199,267/unit)

$ 2,821,000($188,067/unit)

$ 3,156,000($210,400/unit)

$ 5,978,000($199,267/unit)

Equity Requirement - 30% $ 846,300 $ 946,800 $ 1,793,400 $ 846,300 $ 946,800 $ 1,793,400

New Debt 4.25%, 30/10 $ 1,974,700 $ 2,209,200 $ 4,184,600 $ 1,974,700 $ 2,209,200 $ 4,184,600

Net Operating Income $ 141,098 $ 157,844 $ 298,942 $ 160,830 $ 177,779 $ 338,609

Debt Service $ 116,572 $ 130,415 $ 247,029 $ 116,572 $ 130,415 $ 247,029

Cash Flow $ 24,526 $ 27,429 $ 51,914 $ 44,258 $ 47,364 $ 91,580

Cash on Cash Return 2.90% 2.90% 2.89% 5.23% 5.00% 5.11%

IncomeVilla Darvi(In-Place)

Garfield(In-Place)

Total(In-Place)

Villa Darvi(Proforma)

Garfield(Proforma)

Total(Proforma)

Rent $ 196,944(avg $1.79 psf)

$ 220,668(avg $1.75 psf)

$ 417,612(avg $1.77 psf)

$ 220,500(avg $201 psf)

$ 244,500(avg $1.94 psf)

$ 465,000(avg $1.97 psf)

Vacancy Loss <$ 9,847> (5%) <$ 11,004> (5%) <$ 20,851> (5%) <$ 11,025> (5%) <$ 12,225> (5%) <$ 23,250> (5%)Total Rent $ 187,097 $ 209,664 $ 396,761 $ 209,475 $ 232,275 $ 441,750

Reimbursements $ 5,400 $ 4,500 $ 9,900 $ 5,670 $ 4,725 $ 10,395Other $ 8,640 $ 6,900 $ 15,540 $ 9,135 $ 7,245 $ 16,380Total Operating Income $ 201,137 $ 221,064 $ 422,201 $ 224,280 $ 244,245 $ 468,525

ExpensesAdministrative $ 1,289 $ 857 $ 2,146 $ 1,289 $ 857 $ 2,146Repairs & Maintenance $ 7,865 $ 9,321 $ 17,186 $ 7,865 $ 9,321 $ 17,186Turnover $ 1,500 $ 1,500 $ 3,000 $ 1,500 $ 1,500 $ 3,000Payroll $ 15,750 $ 15,750 $ 31,500 $ 15,750 $ 15,750 $ 31,500Marketing $ 750 $ 750 $ 1,500 $ 750 $ 750 $ 1,500Professional Fees $ 917 $ 467 $ 1,383 $ 917 $ 467 $ 1,383Insurance $ 3,499 $ 3,499 $ 6,998 $ 3,499 $ 3,499 $ 6,998Property Taxes $ 10,691 (2019 Actual) $ 11,700 (2019 Actual) $ 22,391 $ 10,691 $ 11,700 $ 22,391Utilities $ 7,718 $ 8,353 $ 16,071 $ 7,718 $ 8,353 $ 16,071Management Fee $ 10,060 (5%) $ 11,024 (5%) $ 21,084 (5%) $ 8,971 (4%) $ 9,770 (4%) $ 18,741 (4%)Reserves $ 0 $ 0 $ 0 $ 4,500 $ 4,500 $ 9,000Total $ 60,039

($4,003/u/yr) $ 63,220($4,215/u/yr)

$ 123,259($4,109/u/yr)

$ 63,450($4,230/u/yr)

$ 66,466($4,431/u/yr)

$ 129,916($4,331/u/yr)

Net Operating Income $ 141,098 $ 157,844 $ 298,942 $ 160,830 $ 177,779 $ 338,609

Value at 5.00% Cap Rate $ 2,821,000($188,067/unit)

$ 3,156,000($210,400/unit)

$ 5,978,000($199,267/unit)

Based on Total Proforma NOI, the imputed Cap Rate increases to 5.65%


RENT ROLL

VILLA DARVI

Unit Unit TypeUnit Square

FootageMonthly

RentRentPSF

LeaseExpiration

ProformaMonthly

Rent

Proforma RentPSF

1 1 Bedroom, 1 Bath 600 $ 1,050 $1.75 8/31/2019 $ 1,225 $2.04

2 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 5/31/2019 $ 1,225 $2.04

3 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 7/13/2019 $ 1,225 $2.04

4 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 5/31/2019 $ 1,225 $2.04

5 1 Bedroom, 1 Bath 600 $ 1,124 $1.87 5/1/2019 $ 1,225 $2.04

6 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 6/30/2019 $ 1,225 $2.04

7 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 11/16/2019 $ 1,225 $2.04

8 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 11/17/2019 $ 1,225 $2.04

9 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 8/14/2019 $ 1,225 $2.04

10 1 Bedroom, 1 Bath 650 $ 1,099 $1.69 12/12/2019 $ 1,225 $1.88

11 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 9/13/2019 $ 1,225 $2.04

12 1 Bedroom, 1 Bath 650 $ 1,099 $1.69 8/23/2019 $ 1,225 $1.88

13 1 Bedroom, 1 Bath 600 $ 1,050 $1.75 8/5/2019 $ 1,225 $2.04

14 1 Bedroom, 1 Bath 650 $ 1,099 $1.69 12/6/2019 $ 1,225 $1.88

15 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 12/6/2019 $ 1,225 $2.04

Total 15 Units 9,150 $16,412 $18,375

Average 610 $ 1,094 $1.79 $ 1,225 $2.01

GARFIELD

Unit Unit TypeUnit Square

FootageMonthly

RentRentPSF

LeaseExpiration

ProformaMonthly

Rent

Proforma RentPSF

2 1 Bedroom, 1 Bath 600 $ 1,150 $1.92 7/31/2019 $ 1,225 $2.04

5 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 8/24/2019 $ 1,225 $2.04

8 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 8/24/2019 $ 1,225 $2.04

11 1 Bedroom, 1 Bath 600 $ 1,050 $1.75 8/15/2019 $ 1,225 $2.04

14 1 Bedroom, 1 Bath 600 $ 1,099 $1.83 10/3/2019 $ 1,225 $2.04

1 2 Bedroom, 1 Bath 750 $ 1,250 $1.67 8/19/2019 $ 1,425 $1.90

3 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 7/26/2019 $ 1,425 $1.90

4 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 10/9/2019 $ 1,425 $1.90

6 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 8/9/2019 $ 1,425 $1.90

7 2 Bedroom, 1 Bath 750 $ 1,250 $1.67 9/1/2019 $ 1,425 $1.90

9 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 5/31/2019 $ 1,425 $1.90

10 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 8/10/2019 $ 1,425 $1.90

12 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 7/24/2019 $ 1,425 $1.90

13 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 TBD $ 1,425 $1.90

15 2 Bedroom, 1 Bath 750 $ 1,299 $1.73 7/31/2019 $ 1,425 $1.90

Total 15 Units 10,500 $18,389 $20,375

Average

5 1 Bedroom, 1 Bath 600 $1,099 $1.83 $1,225 $2.04

10 2 Bedroom, 1 Bath 750 $1,289 $1.72 $1,425 $1.90

700 $1,226 $1.75 $1,358 $1.94

VILLA DARVI & GARFIELD

# of Units Unit Type

Unit Square Footage

TotalMonthly

RentAverageRent PSF

Total Proforma

Monthly RentProformaRent PSF

20 1 Bedroom, 1 Bath 12,150 $21,909 $1.80 $24,500 $2.02

10 2 Bedroom, 1 Bath 7,500 $12,892 $1.72 $14,250 $1.90

Total 19,650 $34,801 $38,750

Average 655 $ 1,160 $1.77 $ 1,292 $1.97


MULTI-FAMILY INVESTMENT SALE COMPARABLES

PhotoProperty Name/Address Size (SF)

# ofUnits

YearBuilt

SalePrice PSF

PricePer Unit

CapRate (%)

TransactionDate Buyer Seller

Century Apartments1938 S. Douglas St.Salt Lake City, Utah

21,068 30 1960 $3,900,000 $185.11 $130,000 11/15/2018 MCP Century LLC Westminster College

Devereaux Apartments132 S 900 ESalt Lake City, Utah

37,116 30 1974 $4,225,000 $113.83 $140,833 5.25 07/27/2018 Base Camp 7 SLC 1 Renfro

Sherry Kaye Apartments1985 S 1200 ESalt Lake City, Utah

19,245 20 1962 $2,435,000 $126.53 $121,750 5.02 04/13/2018 Preserve Partners Hudson-Walnut Group, LLC

Carol Jo156 W. 200 N.Salt Lake City, Utah

13,320 17 - $3,200,000 $240.24 $188,235 - 02/01/2018 Fountainhead Dev Preserve Partners

Third and Ramona Apartments312 East Ramona AvenueSalt Lake City, Utah

13,300 15 1969 $2,230,000 $167.67 $148,667 5.27 01/01/2018 Undisclosed Steven D. & David W. Francis

Axis at 739 Apartments739 S. 300 W.Salt Lake City, Utah

134,820 60 2008 $13,100,000 $97.17 $218,333 5.26 09/29/2017 Vidovich - Axis, LP HZ Axis Apartments, LLC

Prana Apartments255 W. 800 S.Salt Lake City, Utah

19,615 21 2016 $5,175,000 $263.83 $246,429 5.15 07/27/2017 The Kevin and Kimberly Charles Living Trust

Lotus Prana, LLC

Capital Terrace Apartments68 E. 200 N.Salt Lake City, Utah

17,343 21 - $2,700,000 $155.68 $128,571 4.20 04/17/2017 Meilee LLC Chacon, Alfonso L

100% vacant, all infrastructure in need of replacement (plumbing, electrical, HVAC)

Dated interiors, original infrastructure

Dated interiors, in need of extensive renovation


MULTI-FAMILY INVESTMENT SALE COMPARABLES (continued)

LARGER COMMUNITY COMPARABLE SALES

PhotoProperty Name/Address Size (SF)

# ofUnits

YearBuilt

SalePrice

PricePSF

PricePer Unit

CapRate (%)

TransactionDate Buyer Seller

Alta Gateway Station505 West 100 SouthSalt Lake City, Utah

231,116 277 2017 $82,000,000 $354.80 $296,029 4.76 10/11/2018 Gateway Residence, LP Alta Gateway Owner, LLC

Edgewood Park6820 S 1300 ECottonwood Heights, Utah

62,928 64 1994 $11,000,000 $174.80 $171,875 4.50 09/01/2018 Arrowroot Real Estate Hamilton Zanze & Company

Velo on the Boulevard460 E 400 SSalt Lake City, Utah

66,528 99 2015 $24,100,000 $362.25 $243,434 5.16 03/01/2018 Weidner Investment Services

Paul Willie

Brickstone on 33rd220 East 3300 SouthSalt Lake City, Utah

106,315 100 2010 $14,906,666 $140.21 $149,067 4.90 08/22/2017 Peak Capital Partners Brick Stone Partners, LLC

The Vue at Sugar House Crossing2120 S. Highland Dr.Salt Lake City, Utah

226,027 211 2014 $63,300,000 $280.06 $300,000 4.75 02/15/2017 Private Party Mechman

Encore Apartments489 E. 400 S.Salt Lake City, Utah

185,445 189 2015 $55,750,000 $300.63 $294,974 4.88 10/26/2016 Invesco Advisers, Inc. Wasatch 5th East Holdings, LLC

Cityscape Apartments134 S. 400 E.Salt Lake City, Utah

101,286 122 2013 $30,500,000 $301.13 $250,000 4.91 11/24/2014 Richmark Holdings Inc.

Wasatch Property Management


Documents

VILLA DARVI GARFIELD APARTMENTS - LoopNet...VILLA DARVI & GARFIELD # of Units Unit Type Unit Square Footage Total Monthly Rent Average Rent PSF Total Proforma Monthly Rent Proforma