penbrook club 8-14-08 - Houston Income Properties

912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Email: [email protected]
Email: [email protected]
Penbrook Club
7227 HWY 290 East
Austin, Texas 78723
556E
Key Map:
Offered "Cash" to the Below Market
Interest Rate Loan of 5.83%
FINANCIAL INFORMATION
Asking Price:
Price/Unit:
Price / SF:
Assumable Loan Balance:
Est Down Payment:
Est. Down Payment % of Price:
$5,832,000
$35,561
$51.81
$3,674,039
$2,157,961
37%
PROPERTY INFORMATION
Units:
Avg Size:
164
686
1984
Date Built:
"E" Mtr/"W" Mtr: Indiv. / Mast. "RUBS"
Pitched
Roof:
4.82 Penbrook Club is offered "Cash to the Existing Loan." The
Land Area (Acres):
existing loan is at a below market interest rate of 5.83%. The
112,566
Rentable Sq Ft:
Property is well located on Hwy 290 east in northeast Austin,
TOTAL COLLECTIONS (Approximately 90% Occupancy as of 8-1-08)
TX. This location allows good visibility from HWY 290 East and
Jul 08
Avg Jan-Jul 08
Jun 08
May 08
Mth.
Offered on Assumption of Existing Note
$82,537
Coll.
$78,777
% BY UNIT TYPE
35%
$79,545
$82,171
% BY UNIT S.F.
Unit Mix Stats
11%
9%
30%
35%
15%
1-1
20%
15%
2-1
2-2
30%
EFF
398
677
1,035
1,035
938
COMMENTS
1. Offered "Cash" to the Below Market Interest Rate Loan of 5.83%
2. With moderate upgrades a new owner could realize potential upside in rents.
3. Individual Hot Water Heaters, and Washer and Dryer connections in all units
except the efficiencies
4. Laundry contract is expired, a new owner could renegotiate in his favor
5. Located in a high growth area approx. 5 miles outside the Mueller
Redevelopment Project
convenient access to the Austin CBD, HWY 35 and Hwy 183. The
property is located approximately 4.86 miles outside of the
Mueller Airport redevelopment project, the largest infill
redevelopment in Austin's history. Penbrook Club provides an
excellent opportunity for an investor to acquire a property
with the possibility of tremendous upside potential given the
high growth location (Approximately 4.8 miles from the
downtown core and just outside of the Mueller redevelopment
area ) and strong rental market. The current owner has
improved the property with new roofs in 2007. There are 6
down units and one unit is used as storage. Call the broker
for an appointment. Please do not disturb the staff. Information
about brokerage services has been included with this offering
memorandum.
UNIT MIX
#Units
Type
58
50
24
14
18
164
EFF
1-1
2-1
2-2
2-2
Notes
398
W/D CON 677
W/D CON 938
W/D CON 1,035
W/D CON 1,035
90%
686
total units
Penbrook Club
occ
Total SF
Rent
Total Rent
Rent Per
SF
23,084
33,850
22,512
14,490
18,630
112,566
$430
$560
$675
$695
$695
$557
$24,940
$28,000
$16,200
$9,730
$12,510
$91,380
1.080
0.827
0.720
0.671
0.671
0.812
total/sf
avg rent
total rent
avg$/sf
SF
avg sf
RENT COMPARABLES (8/27/08 O'Connor)
Yr Blt
Property Name
Chelsea Regent
1985
MacKenzie Pointe 1984
Promontory Point 1983
Trestles of Austin 1983
1984
Wildwood
Totals/Avgs Comps
1984
Penbrook Club
Austin NE "B" SubMkt
Austin Market "B" Mkt.
Occ
#Units
Avg SF
Avg Rent
P/SF
87%
85%
90%
95%
95%
90%
90%
90%
93%
236
348
252
396
344
1,576
164
2,942
49,907
748
723
728
696
761
731
686
858
801
$734
$707
$707
$606
$701
$690
$557
$741
$749
0.98
0.98
0.97
0.87
0.92
0.94
0.81
0.86
0.94
Rent Comparison Chart
1.00
0.20
-
Penbrook
Club, 0.81
Trestles of
Austin, 0.87
0.40
Wildwood,
0.92
onto the I-35 N./US-290 E./US-81 N. (approximately 2.9 mi) toward
WACO/HOUSTON. Exit toward BERKMAN DR. and make a slight left onto US-290
E. (approximately .2 miles). The property will be on the right.
Promontory
Point, 0.97
Directions to Penbrook Club: From Downtown Austin, take I-35 N. and merge
MacKenzie
Pointe, .98
0.60
Chelsea
Regent, .98
0.80
SUBJECT
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy
factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as
well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE,
AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you
determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint
and/or mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Penbrook Club
7227 HWY 290 East
Austin, Texas 78723
556E
Key Map:
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
Email: [email protected]
Email: [email protected]
Rent Comparables
Trestles of Austin
●
Located 1.4 miles Southwest of Subject
● # Units:
396
● Avg Size Unit:
696
● Avg. Rent Per Unit:
$606
● Avg Rent / SF
$0.87
Wildwood
●
Located 0.7 miles Northwest of Subject
● # Units:
344
● Avg Size Unit:
761
● Avg. Rent Per Unit:
$701
● Avg Rent / SF
$0.92
Promontory Point
●
Located 0.5 miles Northeast of Subject
● # Units:
252
● Avg Size Unit:
728
● Avg. Rent Per Unit:
$707
● Avg Rent / SF
$0.97
MacKenzie Pointe
●
Located 1.2 miles West of Subject
● # Units:
348
● Avg Size Unit:
723
● Avg. Rent Per Unit:
$707
● Avg Rent / SF
$0.98
Chelsea Regent
●
Located 1.1 mile West of Subject
● # Units:
236
● Avg Size Unit:
748
Apartment Rent Comparables (sorted by $/per/sf)
Yr Blt
Occ
#Units
Avg SF
$/Unit
$/SF
1983
95%
396
696
$606
0.87
1984
95%
344
761
$701
0.92
1983
90%
252
728
$707
0.97
1984
85%
348
723
$707
0.98
1114 Camino La Costa
1985
87%
236
748
$734
0.98
Average Comps Only
1984
1984
91%
90%
90%
93%
315
164
2,942
49,907
731
686
858
801
$691
$557
$741
$749
0.94
0.81
0.86
0.94
Property Name
Trestles of Austin
● Avg. Rent Per Unit:
$734
1071 Clayton Lane
● Avg Rent / SF
$0.98
7610 Cameron Rd.
Wildwood
Penbrook Club
Promontory Point
2250 Ridgepoint Dr.
MacKenzie Pointe
1044 Camino La Costa
Chelsea Regent
Penbrook Club
Austin NE "B" SubMkt
Austin Market "B" Mkt.
Notes
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy
factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as
well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE,
AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you
determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or
mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Washer and Dryer connections in all units except the efficiency units, Wood Burning Fireplaces,
Ceiling Fans, Walk-In Closets, Frost-Free Refrigerators, Dishwashers, Disposals, Patios/Balconies,
Swimming Pool, Mini-Blinds, Access Gates, Perimeter Fence
7227 HWY 290 East
Austin, Texas 78723
Key Map:
556E
MORTGAGE INFORMATION
BUYER SHOULD VERIFY THE TERMS OF THIS
NOTE WITH THE LOAN DOCUMENTS.
$3,900,000
$3,674,039
360
$22,958
6-1-2004
5.830%
Yes
7-1-2014
$250
PROPERTY TAX INFOR.
TCAD NO.
Taxing Authority
Travis County
Austin I.S.D.
City of Austin
Austin Comm Coll Dist
Travis County Healthcare D
2007 Rate / $100 of Value
2008 Certified Tax Assmt
2008 Approx. Total Tax
Cert.of Occ:
Individual
Materials:
Individual Ground Mtd # of Stories:
Parking:
Master "RUBS"
Mostly PVC
# Buildings:
Units/Acre:
Copper
AERIAL ~ Penbrook Club
Ind. Hot Water Heaters
AREA INFORMATION
Rate/$100
0.42160
1.16300
0.40340
0.09850
0.06930
$2.1558
$4,976,366
$107,280
CONSTRUCTION
Hot Water:
Elec Meter:
A/C:
Water Meter:
Plumbing:
Wiring:
Email: [email protected]
Email: [email protected]
AMENITIES (Features Vary By Individual Floor Plan )
Penbrook Club
Original Mtg:
Est Mtg. Bal:
Amortization Mos
P & I Payment
Orig. Date:
Int Rate:
Assumable:
Due Date
Reserve/Unit:
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
Yes
Brick and Hardi Board
2
232
10
34.02
Penbrook Club ~ is conveniently located on HWY 290 E. in East Austin, Texas. It is
approximately 4.8 miles northeast of downtown Austin. The property is minutes from the
University of Texas Campus, Highland Mall and the Mueller Redevelopment Project. This
convenient location allows access to all points of Austin and beyond via Hwy. 290 which
leads west to I-35 and east to Hwy. 183. This area is one of the fastest growing areas of
Austin due to redevelopment project underway at the old Mueller Airport site.
Mueller Redevelopment Project ~ located 4.8 miles southwest of the community is the
massive redevelopment site of the award-winning Mueller master plan by ROMA Design
Group. This project responds to the community’s challenge to turn the old airport into a new
model for urban living in Austin. Mueller will bring new life and choice to Austin (especially
East Austin), enhance the nearby neighborhoods, and create opportunity and diversity, all
without burdening the environment, Austin taxpayers, or the local quality of life. Mueller will
be home to as many as 10,000 jobs, anchored by the 30-acre Dell Children's Medical
Center, Dell Pediatric Research Institute, the first building in The University of Texas Health
Research Campus, the administrative headquarters of the Seton Family of Hospitals,
SEDL, Strictly Pediatrics Subspecialty Center, and more than 20 retail stores and the
Austin Studios film production complex.
University of Texas at Austin Campus ~ 5.03 miles west of the property, is one of the
largest public universities in the United States. It consists of a 350-acre main campus. The
university's nearly 50,000 students provide an annual economic boost of about $837 million
into the local economy. Personal income generated through direct and indirect economic
activity in Texas by salaries paid to UT Austin employees totals $2.5 billion. The annual
value of economic activity in the state generated by UT Austin totals $1.4 billion.
Employment ~ Top employers in the Austin/Round Rock MSA: State of Texas employs
65,941, Dell Inc.Computer equipment mfg./sales employs 17,000, University of Texas at
Austin Higher education employs 14,104, Austin Independent School District employs
10,610, Federal Government employs 10,405, City of Austin employs 10,000, Seton
Healthcare Network (headquarters) employs 6,743, IBM Corporation employs 6,300, St.
David's Healthcare Partnership (headquarters) employs 6,219,
2007 DEMOGRAPHICS - Geography - 3 Mile Radius
Estimated Population 2007
3 Mile Radius - 100,779
5 Mile Radius - 253,104
Black, 17.7%
Asian, 3.7%
Other, 20.6%
Multi-Race, 2.7%
White, 55.3%
%'s Based on
2007 Est.
Population within
a 3 mile radius
2007 Housing Units
Total Housing Units: 44,097
Occupied: 39,819
Owner Occupied: 15,963
Renter Occupied: 23,856
Vacant Units: 4,278
Estimated Average Income 3 Mile Radius
Avg. Income Subject: $45,000
Avg. Income Austin: 66,871
2007 Est. Hispanic Ethnicity-3 Mile Radius
Of Hispanic
Ethnicity
47%
47%
53%
Not Hispanic
53%
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
BROKER: Jim Hurd
AGENT:AGENT: Forrest Bass
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
www.houstonincomeproperties.com
Broker's License #0393404
Email: [email protected]
Email: [email protected]
Penbrook Club
7227 HWY 290 East
Austin, Texas 78723
556E
Key Map:
Regional Economy
The Texas Economy continues to create more jobs while the
nation's labor market is grinding to a halt. The state's nonfarm
employment rose 2.4% from May 2007 - May 2008 compared with
close to zero percent increase for the United States. The state’s
seasonally adjusted unemployment rose from 4.4 percent in May
2007 to 4.5 percent in May 2008. The next quarter century should
be marked by prosperity in Texas, driven by population and job
growth. By 2030, the state is expected to have added 13.6 million
people, the equivalent of another Dallas-Fort Worth, San Antonio,
Houston and Corpus Christi combined.
The Austin Economy High-tech, a booming film industry and
the University of Texas all helped propel Austin to the top of
Forbes' 2008 list of America's Fastest Growing Metros. The
magazine ranked Austin No. 1 among the nation's 100 largest
metropolitan areas. The list sorted cities by their anticipated gross
domestic product growth between 2007 and 2012. Austin's GMP,
or the value of goods and services produced in the area, is
expected to climb 32 percent over the five-year period. Forbes
credits the boom to high-tech employers like Dell Inc. and IBM as
well as the University of Texas. Austin's bright economic outlook
continues to attract retailers, a trend that will drive development
into 2009. Much of the metro's construction is centered in master
planned communities to the north and south of the city center,
where builders are taking advantage of newly available sites
stemming from infrastructure improvements. Population and job
growth are forecast to boost retail sales by nearly 5 percent this
year, one of the largest advances in the country. The Texas
Workforce Commission predicts 3.1% job growth in 2008 and
household incomes for Austin's highly educated work force will
continue to outpace the national median, which, coupled with the
area's relatively affordable housing market, will result in further
increases in disposable incomes. The economic outlook for
Austin generally mirrors the Texas forecast: local job and
population growth outperforms the national economy. Most job
growth should appear in Austin’s traditional strong areas, like
government, education, and health services. As the state capital
and seat of Travis County, local, state, and federal government
employs more than 150,000 workers, and that’s expected to
increase.
MARKET HISTORICAL OCCUPANCY {Source O'Connor Data Service}
Competition
NE "B" Market
Austin "B" Market
Date
93.2%
94.0%
89.4%
Aug-07
95.4%
94.4%
90.2%
Sep-07
94.4%
94.8%
89.7%
Oct-07
94.1%
95.1%
90.4%
Nov-07
93.9%
95.8%
91.1%
Dec-07
93.8%
96.8%
91.7%
Jan-08
93.7%
96.0%
90.8%
Feb-08
95.7%
90.0%
93.6%
Mar-08
93.6%
90.4%
93.8%
Apr-08
91.1%
92.2%
93.5%
May-08
90.3%
88.8%
93.0%
Jun-08
88.5%
88.4%
93.0%
Jul-08
COMPETITIVE UNIT MIX ANALYSIS
Property Name
EFF AVERAGE
SQ FT RATE
SQ FT
RATE
P/SF
$430
$1.08
677
$560
$0.83
993
$686
$0.69
-
-
-
693
$675
$0.97
951
918
$0.97
-
-
-
662
$646
$0.98
946
900
$0.95
513
$593
$1.16
699
$670
$0.96
972
828
$0.85
-
-
-
569
$523
$0.92
920
715
$0.78
-
-
-
644
$581
$0.90
876
808
$0.92
513
513
436
$593
$594
$568
$1.16
$1.16
$1.30
653
671
635
$619
$638
$645
$0.95
$0.95
$1.02
933
950
932
$834
$774
$796
$0.89
$0.82
$0.85
398
Chelsea Regent
Promontory Point
Trestles of Austin
Wildwood
Avg Comps
NE "B" Submarket
Austin "B" Market
SQ FT RATE P/SF
P/SF
Penbrook Club
SUBJECT
MacKenzie Pointe
2B Average
1B Average
{Source: O'Connor Data Service}
The rents below are the rents used in the pro forma
#Units
Type
58
50
24
14
18
164
EFF
1-1
2-1
2-2
2-2
total units
Notes
SF
Total SF
Rent
Total Rent
Rent Per SF
W/D CON
W/D CON
W/D CON
W/D CON
90%
398
677
938
1,035
1,035
686
23,084
33,850
22,512
14,490
18,630
112,566
$450
$620
$700
$730
$735
$594
$26,100
$31,000
$16,800
$10,220
$13,230
$97,350
1.13
0.92
0.75
0.71
0.71
0.86
occ
avg sf
total/sf
avg rent
total rent
avg$/sf
Rent Comps compared with Pro forma rents above
Yr Blt
Property Name
Chelsea Regent 1985
MacKenzie Pointe 1984
Promontory Point 1983
Trestles of Austin 1983
Wildwood
1984
Totals/Avgs Comps
1984
Penbrook Club
Austin NE "B" SubMkt
Austin Market "B" Mkt.
Occ
#Units
Avg SF
Avg Rent
P/SF
87%
85%
90%
95%
95%
90%
90%
90%
93%
236
348
252
396
344
1,576
164
2,942
49,907
748
723
728
696
761
731
686
858
801
$734
$707
$707
$606
$701
$690
$594
$741
$749
0.98
0.98
0.97
0.87
0.92
0.94
0.86
0.86
0.94
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.
Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made
above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME,
EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend
that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead
paint and/or mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Email: [email protected]
Email: [email protected]
Penbrook Club
7227 HWY 290 East
Austin, Texas 78723
PHYSICAL INFORMATION
Number of Units
164
686
Avg Unit Size
112,566
Net Rentable Area
Land Area (Acres)
4.82
Units per Acre
34.0
Date Built
1984
e-Met / w-Met
Indiv. / Mast. "RUBS"
Roof Style
Pitched
HVAC System Individual Ground Mtd
FINANCIAL INFORMATION
Asking Price
Est. Total Assumable Debt
Price Per Unit Price
Price Per SF
Est. Rehab/Upgrade/Unit
Est. Total Rehab/Upgrade
Est "All In" Cost
Down Payment
37%
$5,832,000
$3,674,039
$35,561
$51.81
$1,000
$164,000
$5,996,000
$2,157,961
Equity (based on "All In" Cost *) 40% $2,321,961
*"All In" Cost = Asking Price + Rehab/Upgrades
Existing Assumable Loan
Parameters
Original Loan Amount
$3,900,000
5.83%
Interest Rate
Est. Balance
$3,674,039
Monthly P & I
$22,958
Amortizing {Mths}
360
Term
10 Years
Reserve for Replacement-U/YR $250
Estimated Loan Constant
7.50%
Note is Due in 2014
1% Assumption Fee + Legal
OPERATING INFORMATION
Current Mkt Rent {Jul-08}
Current Coll. {Avg Jan-Jul 08}
$91,380
$82,537
90%
$157
Current Occ. {Jul-08}
Est. Ins per Unit per Y
Property Tax Information
2007 Rate / $100 of Value
2.15580
2008 Certified Tax Assmt
$4,976,366
Pro form Assessment
Pro forma Est. assessment
$4,976,366
used is 2008 assessment.
MODIFIED ACTUALS
Income is Actual Jan - Jul 08 Annualized
Expenses are Actuals Jan - Jul 08 Annualized
STABILIZED PRO FORMA
INCOME IS PRO FORMA
EXPENSES ARE PRO FORMA
Except where noted
Except where noted
INCOME
$1,167,836 $97,320. / Mo
(3,504) .3%
$1,164,333 99.7%
(58,392) 5.0%
(23,357) 2.0%
$1,082,584 92.7%
63,838 $389 / Unit / Yr
$1,146,422 $95,535 / Mo
Current Market Rent with a {6.5% } Rent Increase or {$593 }/unit/mth or {.86}/sf
Loss to Lease {.3%} of Total Street Rent-Estimated
Estimated Gross Potential Income
Vacancy Estimated at {5.0%}
Credit/Concess/Admin/Other Rental Losses Estimated at {2.0%}
Total Rental Income {Estimated}
Other Income {Estimated with RUBS for Water Included at 65% penetration}
$990,444 $82,537 / Mo
Total Income
EXPENSE
Fixed Expenses
Taxes
Insurance
Total Fixed Expense
Utilities
Electricity
Telephone
Internet Office
Refuse Disposal
Water/Sewer
Total Utilities
Estimated
Estimated
Fixed Expenses
Fixed Expenses
$107,280
$654 per Unit
2008 Assessment and 2007 Rate
$19,876
$121 per Unit
Current Policy
127,156
Cap Rate
Debt
Equity
Debt Service
Cash Flow
Cash on Cash
$19,876
$121 per Unit
2008 Assessment and 2007 Rate
Current Policy is Assumable
127,156
$775 / Unit
Utilities
$775 / Unit
Estimated Utilities
$22,155
$135 per Unit
$22,000
$3,617
$22 per Unit
$3,600
$22 per Unit
$1,402
$9 per Unit
$1,400
$9 per Unit
$134 per Unit
$9,247
$56 per Unit
$9,247
$56 per Unit
$86,237
$526 per Unit
$60,366
$368 per Unit
Other Expenses
Other Expenses
$19,805
$121 per Unit
General & Admin
$17,849
$109 per Unit
Leasing/Marketing
$51,564
$314 per Unit
Repairs/Maint. and Make Readies
$214,942
$1,311 per Unit
Labor Costs {Salaries + Burden}
$9,255
$56 per Unit
Contract Services {Grounds,Exterm.,Patrol}
$39,618
4.0% $242 per Unit
Management Fees
Total Other Expense
Operating Expense
Reserve for Replacement {Estimated}
Total Est. Operating Expenses
Net Operating Income
Total Price
$107,280 $654 per Unit
122,659
Assumes water saving devices installed
96,613
$748 / Unit
$589 / Unit
Estimated Other Expenses
$19,680
$120 per Unit
$16,400
$100 per Unit
$73,800
$450 per Unit
$164,000 $1,000 per Unit
No Patrol (Cameras installed)
$9,255
Adjusted Owner's Portion Out
$34,393
353,033
602,849
41,000
643,849
346,595
$2,153 / Unit
$3,676 / Unit
$250 / Unit
$3,926 / Unit
$2,113 / Unit
$5,832,000 "As Is" Cost
5.94%
3,674,039
2,157,961
275,495
71,100
3.29%
Based on Asking Price
Existing Debt
Based on Asking Price
$56 per Unit
3.0% $210 per Unit
No Patrol (Cameras Installed)
Calculated at 3% of Total Income
317,528
541,297
41,000
582,297
564,125
$1,936 / Unit
$3,301 / Unit
$250 / Unit
$3,551 / Unit
$3,440 / Unit
5,996,000 "All In" Cost
9.41%
3,674,039
2,321,961
275,495
288,630
12.43%
Based on "All In" Cost
Existing Debt
Includes Upgrades
NOTES ON MODIFIED ACTUALS: Income is Jan- Jul 08 annualized. Taxes are at 2007 rate and 2008 assessment. Expenses are actual Jan-Jul 08 annualized except for Management which has been reduced
by 1% which is the current owner's portion. Contract Services has been reduced by $21,744, due to the current owner installing security cameras and no longer uses a courtesy patrol. Taxes are at 2007 rate and
2008 assessment.
NOTES ON PRO FORMA: Income is Market Rent with a 6.5% increase as noted. Taxes are estimated at 2007 rate and 2008 assessment. The Management fee is calculated at 3% of Total Income. Other Income
is Estimated with RUBS for Water included at a 65% penetration. Proposed upgrades include water saving devices for a savings of 30% of the water bill.
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate
to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF
INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of
Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Email: [email protected]
Email: [email protected]
Penbrook Club
7227 HWY 290 East
Austin, Texas 78723
556E
Key Map:
Sales Comparables
Copper Mill
●
Located 3.3 miles Northwest of the Subject
● Sold Date:
2/26/07
● Sales Price:
$15,000,000
● Price Per Unit:
$46,875
● Price Per SF:
$57.29
Creekwood Village
●
Located 8.7 miles Northwest of the Subject
● Sold Date:
5/14/07
● Sales Price:
$3,880,000
● Price Per Unit:
$40,417
● Price Per SF:
$57.52
Brook Meadow Village
●
Located . miles Northwest of the Subject
● Sold Date:
1/11/07
● Sales Price:
$6,850,000
● Price Per Unit:
$43,910
● Price Per SF:
$61.78
Las Palmas
●
Located 6.3 miles Southwest of the Subject
● Sold Date:
5/31/07
● Sales Price:
$5,500,000
● Price Per Unit:
$45,455
● Price Per SF:
$66.89
Chelsea Regent
●
Located 1.1 miles West of the Subject
● Sold Date:
2/20/07
● Sales Price:
$12,250,000
Apartment Sales Comparables (sorted by $/per/sf)
● Price Per Unit:
● Price Per SF:
Penbrook Club
$51,907
$69.34
Property Name
Sold
Total SF Avg/SF
Price
Pr./U
Pr./SF
Blt.
#/U
2/26/07
261,840
818 $15,000,000 $46,875 $57.29 1984
320
Creekwood Village 5/14/07
67,456
703
$3,880,000 $40,417 $57.52 1984
96
Copper Mill
Brook Meadow
Village
1/11/07
110,880
711
$6,850,000 $43,910 $61.78 1984
156
Las Palmas
5/31/07
82,230
680
$5,500,000 $45,455 $66.89 1985
121
Chelsea Regent
2/20/07
Average Comps Only
Penbrook Club
Subject
176,676
749 $12,250,000 $51,907 $69.34 1985
236
139,816
732
$8,696,000 $45,713 $62.56 1984
186
112,566
686
$5,832,000 $35,561 $51.81 1984
164
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy
factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as
well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE,
AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you
determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or
mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
BROKER: Jim Hurd
AGENT: Forrest Bass
www.houstonincomeproperties.com
Broker's License #0393404
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
Email: [email protected]
Email: [email protected]
Penbrook Club
Site Plan
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources
that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an
arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment
is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other
factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY
EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a
detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend
that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance,
whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and
whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
www.houstonincomeproperties.com
Broker's License #0393404
BROKER: Jim Hurd
AGENT: Forrest Bass
Email: [email protected]
Email: [email protected]
Penbrook Club
Floor Plans
Plan B
One Bedroom, One Bath
677 sq. ft.
Plan A
Efficiency
398 sq. ft.
Plan C
Two Bedroom, One Bath
938 sq. ft.
Plan D
Two Bedroom, Two Bath
1035 sq. ft.
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources
that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an
arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment
is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other
factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY
EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a
detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend
that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance,
whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and
whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.
Suite 230
Austin, TX 78746
Telephone: 512-610-8000
Fax: 512-610-8001
BROKER: Jim Hurd
AGENT: Forrest Bass
www.houstonincomeproperties.com
Broker's License #0393404
Main Office ~ 6363 Woodway
Suite 370
Houston, TX 77057
Telephone: 713-783-6262
Fax: 713-783-6767
Email: [email protected]
Email: [email protected]
Penbrook Club
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.
Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions
made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF
INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances
and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property
contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain .
Approved by the Texas Real Estate Commission for Voluntary Use
Texas law requires all real estate licensees to give the following information
about brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage Services
B
efore working with a real estate broker, you should
know that the duties of a broker depend on whom
the broker represents. If you are a prospective
seller or landlord (owner) or a prospective buyer or
tenant (buyer), you should know that the broker who lists
the property for sale or lease is the owner’s agent. A
broker who acts as a subagent represents the owner in
cooperation with the listing broker. A broker who acts as
a buyer’s agent represents the buyer. A broker may act as
an intermediary between the parties if the parties
consent in writing. A broker can assist you in locating a
property, preparing a contract or lease, or obtaining
financing without representing you. A broker is obligated
by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an
agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by
accepting an offer of subagency from the listing broker. A
subagent may work in a different real estate office. A
listing broker or subagent can assist the buyer but does
not represent the buyer and must place the interests of
the owner first. The buyer should not tell the owner’s
agent anything the buyer would not want the owner to
know because an owner’s agent must disclose to the
owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an
agreement to represent the buyer, usually through a
written buyer representation agreement. A buyer’s agent
can assist the owner but does not represent the owner
and must place the interests of the buyer first. The owner
should not tell a buyer’s agent anything the owner would
not want the buyer to know because a buyer’s agent must
disclose to the buyer any material information known to the
agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties
if the broker complies with The Texas Real Estate License
Act. The broker must obtain the written consent of each
party to the transaction to act as an intermediary. The
written consent must state who will pay the broker and, in
conspicuous bold or underlined print, set forth the broker’s
obligations as an intermediary. The broker is required to
treat each party honestly and fairly and to comply with
The Texas Real Estate License Act. A broker who acts
as an intermediary in a transaction:
(1) shall treat all parties honestly;
(2) may not disclose that the owner will accept a
price less than the asking price unless authorized in
writing to do so by the owner;
(3) may not disclose that the buyer will pay a price
greater than the price submitted in a written offer
unless authorized in writing to do so by the buyer; and
(4) may not disclose any confidential information or
any information that a party specifically instructs the
broker in writing not to disclose unless authorized in
writing to disclose the information or required to do so
by The Texas Real Estate License Act or a court
order or if the information materially relates to the
condition of the property.
With the parties’ consent, a broker acting as an
intermediary between the parties may appoint a person who
is licensed under The Texas Real Estate License Act
and associated with the broker to communicate with and
carry out instructions of one party and another person who
is licensed under that Act and associated with the broker
to communicate with and carry out instructions of the
other party.
If you choose to have a broker represent you,
you should enter into a written agreement with the broker
that clearly establishes the broker’s obligations and your
obligations. The agreement should state how and by
whom the broker will be paid. You have the right to
choose the type of representation, if any, you wish to
receive. Your payment of a fee to a broker does not
necessarily establish that the broker represents you. If you
have any questions regarding the duties and
responsibilities of the broker, you should resolve those
questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
Buyer, Seller, Landlord or Tenant
Date
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question
or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.
01A
EQUAL HOUSING
OP P O RT U N I T Y
TREC No. OP-K