Holladay on 9th Apartments

Holladay on 9th
Apartments
83 Unit Multifamily Community
4434 South 935 East
Holladay, Utah
Mark Jensen
801.578.5505
[email protected]
Greg Ratliff
801.578.5531
[email protected]
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
THE OPPORTUNITY
Holladay on 9th is a rare opportunity for an investor to acquire a well located East Side 83 Unit Multifamily Community in the heart of Salt Lake City. Salt Lake City
is arguably one of the best multifamily markets in the United States to own apartments. The Salt Lake market continues to perform extremely well, vacancy has
dropped and there is little to no new supply coming online east of I-15. Rental growth is expected to exceed 5% over the next year and Holladay on 9th is positioned
well to take advantage of the robust rental market and growth. Holladay on 9th gives an investor the opportunity to buy a stabilized multifamily community and take
advantage of continued rent growth in a strong rental market.
There is upside in renovating the units and upgrading the facilities. Many of the units have had upgrades to flooring and countertops, but full bathroom and kitchen
renovations have not been completed. With an estimated $3,500 per unit in renovation and upgrades, there would be a minimum $75 per unit in increased rent. That
would be up to $74,700 in increased annual revenue, which at a 6.25% CAP, equates to over $1,195,200 in value for an investment of $290,000. The Property’s
location is such, that the additional investment will be rewarded with increased rents, and a stronger tenant base.
THE MARKET
Utah continues to be among the nation’s leading economies and is positioned very well for the future. With over 2.8 million people Utah surprises most out of state
investors, especially given that over 2.1 million live in the four counties that make up the “Wasatch Front”. Holladay on 9th is in the heart of Salt Lake County that
has a population of over 1,000,000. Utah continues to rank high across many different categories, the most important to Multi-Family are 1) Utah is #2 in Population
growth and 2) Utah is the #2 State for Job Growth in 2013. For additional rankings and news please visit the Economic Development Corporation of Utah’s website:
http://www.edcutah.com/rankings_and_comparisons.php.
The Apartment Market in Utah is Energetic and Resolute with a strong future ahead. Low vacancy, job growth, and lack of supply to meet demand has created the
perfect storm for upward pressure on rents. Presently, overall Salt Lake County occupancies are nearing 95%.
THE PROPERTY
“Holladay on 9th” is an 83 Unit Apartment Community comprised of 49 Two-Bedroom Units and
34 One-Bedroom Units. The Property has an onsite swimming pool, onsite laundry facility, large
manager’s/leasing office, a playground, among other tenant amenities. The Property was built in
1972 and has undergone some interior renovations throughout the last 5 years. Holladay on 9th
is strategically located close to major retail including a brand new Walgreens across the street,
Smith’s Grocery store, Wal-Mart, K-mart, and many other major retailers. The Property is easily
accessible to I-15 as well as I-215 from 4500 South to the Van Winkle Expressway (700 East),
making it a prime location to live and get anywhere in the valley within minutes.
2
Additional Information Available Upon Request:
•12 Month Trailing Profit & Loss
•Current Rent Roll As of March 2014
•Title Report
•Loan Documents
•Aerial Map
•Demographic Information
•10 Year IRR Analysis
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
PROPERTY HIGHLIGHTS
OFFERING SUMMARY
• Holladay on 9th Apartments are located in the Heart of the East Side of Salt
Lake County
Price:$6,900,000
• 58,847 Rentable Square Feet
• 83 Total Units on 2.74 Acres
CAP Rate T-12:
6.11%
CAP Rate Renovation:
7.18%
Price Per Unit:
• Unit Mix
- 34 One Bedroom Apartments
- 49 Two Bedroom Apartments
$84,337
Parcel Number:
2205178024
Land Size:
• Minutes from Major Retail, City Parks, Golf Courses, Restaurants and
Entertainment
• Buyer Can Obtain NEW FINANCING!
2.74 Acres
T-12 Cash on Cash:
6.6%
Renovation Cash on Cash:
7.7%
• On-Site Leasing Office with Swimming Pool, Covered Parking, Laundry
Facility and Playground
• Close to I-15, I-215 and the 700 East Van Winkle Expressway
• Major Physical and Political Barriers to Competing Properties, Making
Holladay on 9th a Safe Investment with Upside in Renovation and Rents
• Well Located With the Lowest Rental Rates in the Submarket
• Built in 1972
3
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
FINANCIAL INDICATORS:
1ST LOAN
Price:
$6,900,000
1 Loan:
Down Payment:
$1,750,000
Rate:
25%
Term:
Down Payment %:
March 2014 T-12 CAP:
6.11%
2013 CAP Rate:
5.98%
Renovation Proforma CAP:
7.18%
Price / Unit
Expenses / Unit / Year
Price / Unit
7.7%
PROPERTY ABSTRACT:
30
T-6 NOI Annualized
T-12 March 2014
Conservative Renovation Proforma
$440,231
$639,651
$639,651
2013 Actual NOI
Renovation Rental Increases
$74,700
$312,891
83 Units $75 Rent Bump
ESTIMATED ANNUALIZED
EXPENSES:
83
1972
Lot Size SF:
119,354
Rentable SF:
58,847
APN:
4.25%
$84,337.35
Cash on Cash Renovation
Occupancy:
$5,250,000
$4,576.38
6.1%
Year Built:
Annual Payment:
SOURCE OF INCOME:
$84,337.35
Cash on Cash T-3
Number of Units:
st
97%
480010060
ESTIMATED ANNUALIZED OPERATING DATA:
Administrative
T-6 Annualized
T-12 March 2014
Renovation Proforma
Payroll
Total Rental Income:
$635,771
$639,651
$714,351
Advertising
Other Income:
$162,871
$168,200
$168,200
Repairs & Maintenance
Gross Operating Income:
$798,642
$807,851
$882,551
Turnover Expenses
Expenses:
$379,839
$379,839
$379,839
Utilities
Net Operating Income:
$418,803
$428,012
$502,712
Property Taxes
Less Loan Payments:
$312,891
$312,891
$344,867
Property Management
Pre-Tax Cash Flow:
$105,912
$115,121
$157,845
Contract Services
Percentage Return:
6.1%
6.6%
7.7%
Property Insurance
Total Expenses:
$379,839
Includes $290,000 in Renovation
4
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
5
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
N
World Plus Dollar
1 5,52 5 ca r s/da y
Mr. Roberts
The Cleaner
Check Into Cash
Gas
Smith’s
Copy & Print
Gringo’s
20,570 cars/day
4500 South
9 00 E a st
700 East
900 East
25,570 cars/day
Secret Beach
Tanning
Bob Jones Tire
20,900 cars/day
24,230 cars/day
N
34,215 cars/day
N
15,135 cars/day
Holladay on 9th Apartments
900 East
4434
South4500
935 South
East, Holladay, Utah
Murray, Utah
Eldredge
Interiors
SUPERCENTER
4500 S outh
Van
Wi n
24,920 c ar s/day
Murray-Holladay Road
kle
0
Exp
res
sw
ay
0 .1
0 .2
Miles
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Aerial Imagery Courtesy of Aero-Graphics Image Date: March-June 2012 - Traffic Counts Courtesy of UDOT (2012)
6
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
RENT COMPARABLES
UNIT
PROPERTY
Holladay on 9th Apartments
4434 South 935 East
Holladay, Utah
Total & Weighted Averages:
% Occupied:
Alta Pines
870 East 4070 South
Murray, Utah
Total & Weighted Averages:
% Occupied:
Holladay Hills
3690 South Highland Drive
Holladay, Utah
Total & Weighted Averages:
% Occupied:
Hidden Meadows
1794 Shaleh Meadows Road
Holladay, Utah
Total & Weighted Averages:
% Occupied:
Fox Point
514 East 4090 South
Salt Lake City, Utah
Total & Weighted Averages:
% Occupied:
Brittany
4652 South 700 East
Salt Lake City, Utah
Total & Weighted Averages:
% Occupied:
Provided by Apartment Management Consultants (AMC)
VALUE OF
TOTAL
AMENITIES EFFECTIVE
ACTUAL
EFFECTIVE CURRENT
CONCESSION INCLUDED IN
RENT
POTENTIAL RENT PER SF VACANCY
RENT
UNIT TYPE
SIZE (SF)
UNIT
MIX
TOTAL
SF
CURRENT
MONTH
CURRENT
RENT/SF LOW
CURRENT
AVERAGE RENT
263-0689
1x1
2x1
600
785
34
49
20,400
38,465
$649
$738
$1.08
$0.94
$649
$738
$0
$0
$0
$0
$649
$738
$22,066
$36,162
$1.08
$0.94
1
3
709
83
93%
Built: 1972
$399 moves you in 1 bedroom $599
58,865
$702
$1.00
$702
$0.00
$0.00
$702
$30,388
$1.00
4
263-1100
1x1
2x1
100%
No Specials
277-9963
2x1
2x1
3x1
3x2
850
970
24
40
20,400
38,800
$665
$765
$0.78
$0.79
$665
$765
$0
$0
$0
$0
$665
$765
$15,960
$30,600
$0.78
$0.79
925
64
Built: 1973
59,200
$728
$0.79
$728
$0.00
$0.00
$728
$25,110
$0.79
850
850
1,200
1,050
983
36
30
30
34
130
Built: 1993
30,600
25,500
36,000
35,700
127,800
$745
$793
$858
$913
$826
$0.88
$0.93
$0.72
$0.87
$0.85
$745
$793
$858
$913
$826
$0
$0
$0
$0
$0.00
$0
$0
$0
$0
$0.00
$745
$793
$858
$913
$826
$26,820
$23,790
$25,740
$31,042
$26,976
$0.88
$0.93
$0.72
$0.87
$0.85
683
759
985
1,059
741
132
12
25
4
173
Built: 1978
90,156
9,108
24,625
4,236
128,125
$725
$815
$815
$1,065
$752.11
$1.06
$1.07
$0.83
$1.01
$1.03
$725
$815
$815
$1,065
$752
$0
$0
$0
$0
$0.00
$0
$0
$0
$0
$0.00
$725
$815
$815
$1,065
$752
$95,700
$9,780
$20,375
$4,260
$76,741
$1.06
$1.07
$0.83
$1.01
$1.03
5
0
5
700
900
900
852
192
300
300
792
Built: 1977
134,400
270,000
270,000
674,400
$715
$830
$1,040
$882
$1.02
$0.92
$1.16
$1.03
$715
$830
$1,040
$882
$0
$0
$0
$0
$0
$0
$0
$0
$715
$830
$1,040
$882
$137,280
$249,000
$312,000
$245,780
$1.02
$0.92
$1.16
$1.03
3
6
0
3
50
36
34
120
39,250
39,600
43,350
122,200
$660
$722
$750
$704
$0.84
$0.66
$0.59
$0.71
$660
$722
$750
$704
$0
$0
$0
$0
$0
$0
$0
$0
$660
$722
$750
$704
$33,000
$25,992
$25,500
$28,773
$0.84
$0.66
$0.59
$0.71
1
95%
$199.00 Deposit OAC
277-2666
1x1
2x1
2x1
3x2
98%
$200.00 Deposit
261-1977
1x1
2X1
2X2
94%
No Specials
262-4041
1x1
2x2
2x2
99%
No Specials
785
1,100
1,275
1,018
0
0
0
3
1
Built: 2006
7
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
RENT COMPARABLES
£
¤
330 0 S out h
700 Ea st
!
_
^
450 0 S out h
y
Bo
ul
ev
ar
d
e
da
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!
es
re
ad a y R o ad
lla
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in
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e
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Mu
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M u r ra y B o u
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So
la nd
!
4 80 0
Brittany
120 Units
Built in 2006
Holladay on 9th
83
Built in 1972
Hig h
St at e S tr e et
!
Fox Point
792 Units
Built in 1977
390 0 S out h
230 0 E ast
15
!
sw
t
ay
530 0 S out h
900 Ea st
§
¨
¦
Holladay Hills
130 Units
Built in 1993
130 0 E ast
500 Ea st
300 W est
500 W est
Alta Pines
64 Units
Built in 1973
90 0 Ea st
89
N
Hidden Meadows
173 Units
Built in 1978
8
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Holladay on 9th Apartments
4434 South 935 East, Holladay, Utah
SALE COMPARABLES
PROPERTY
PROPERTY
Legends at River Oaks Apartments
9425 South Riverdale Drive
Sandy, Utah 84070
$62,000,000.00
$138,392.86 Per Unit
$162.40 PSF
448 Units
Hidden Cove Apartments
2075 North Main Street
Layton, Utah 84041
$13,400,000.00
$93,055.56 Per Unit
$98.85 PSF
144 Units
Axis at 739 Apartments
739 South 300 West
Salt Lake City, Utah 84101
$10,800,000.00
$180,000.00 Per Unit
$80.11 PSF
60 Units
Park Capitol Apartments
247 North Main Street
Salt Lake City, Utah 84103
$19,250,000.00
$142,592.59 Per Unit
$181.99 PSF
135 Units
Boulder Canyon Apartments
5517 West Slate Canyon Drive
West Jordan, Utah 84081
$37,950,000.00
$135,535.71 Per Unit
$129.70 PSF
280 Units
Pinnacle Canyon View Apartments
1401 South Sandhill Road
Orem, Utah 84058
$36,500,000.00
$126,736.11 Per Unit
$132.76 PSF
288 Units
Brick Stone Apartments on 33rd
220 East 3300 South
Salt Lake City, Utah 84115
$13,325,000.00
$133,250.00 Per Unit
$125.34 PSF
100 Units
Santa Fe Apartments
1550 East Fort Union Boulevard
Cottonwood Heights, Utah 84121
$52,000,000.00
$105,691.06 Per Unit
$135.92 PSF
492 Units
Broadway Place Apartments
556 East 300 South
Salt Lake City, Utah 84102
$12,800,000.00
$175,342.47 Per Unit
$163.00 PSF
73 Units
Sterling Village Apartments
11065 South Sterling View Drive
South Jordan, Utah 84095
$44,750,000.00
$149,166.67 Per Unit
$128.76 PSF
300 Units
Fairstone at River View Apartments
4341 South Riverboat Road
Taylorsville, Utah 84123
$54,530,000.00
$110,833.33 Per Unit
$128.56 PSF
492 Units
Wilshire Place Apartments
6447 West Wilshire Park Avenue
West Jordan, Utah 84081
$36,500,000.00
$131,294.96 Per Unit
$125.88 PSF
278 Units
Foothill Place Apartments
2260 South Foothill Drive
Salt Lake City, Utah 84109
$61,800,000.00
$137,333.33 Per Unit
$150.20 PSF
450 Units
9
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com