investment summary - NM Apartment Advisors

INVESTMENT SUMMARY
Rare opportunity to invest in
NM’s EnergyPlex Region
Sale as Decreed by the
NM Bankruptcy Court
The offering — The Regal Manor Apartments
Address
Size:
1502 East Bender
Hobbs, NM 88240
60
units
Bldg. Size
Gross 54,900 sf
Est.
Rentable
Avg. Unit
Size
915 square
feet
Estimated
Utilities
Master Metered - most of the
market is submetered
Site
2.35 +/- acres
Density
25 units to the acre
Construction
Amenities
NM Apartment Advisors and Tier One Partners LLC
are proud to offer this rare opportunity to purchase a
distressed asset in a rising apartment market.
Pricing:
In the event of
multiple offers a
strong preference will
be given to those that
are all cash, subject
only to inspection.
List Price
“As-Is”
$2,100,000
This investment is abundant in value add opportunities like reducing the master metered electric by adding solar carports, perform minor work to improve
the 25% down units to rent ready condition, update
the exteriors and interiors with new finishes, all of
which will enhance the net operating income.
List Price +
$389,500 in
renovations
$2,489,500
$/ unit
$41,492
$41,492
$ /sf
$45.35
$45.35
Actual
at 33% vac.
Proforma
at 5% vac.
Avg. Rent
$886
$886
GRM
3.29
3.90
Cap Rate
Before reserves
10.89%
15.64%
Two story, frame stucco with
flat roof
Cap Rate
After reserves
10.17%
15.04%
Swimming pool, laundry
room, lush landscaping as
well as disposals, dishwashers, walk-in closets and
refrigerated air conditioning.
Year 1 NOI
$213,597
$374,361
Cash on Cash
21.18%
63.48%
IRR After Tax
54.7%
45.1%
66% as of
10/1
Assume 95%
(proforma)
Occupancy
Occupancy is 100% of all rent ready units.
Annual Property Operating Data (APOD)
Based on
current 33%
vacancy
5 year hold analysis with internal rate of returns (IRR)
Based on
current 33%
vacancy
Estimated Property Renovations
The property currently has 33% of its apartment units in non-rentable condition. Some of the units need as little as $500 in work to be rent ready, while
others need $5,000. The list below has categorized those items into 4 different levels. The APOD and IRR analysis that follows this pages assumes the
new owner addresses those items that need immediate attention and reflects the $2,100,000 purchase price + $389,500 in renovations.
Annual Property Operating Data (APOD)
Based on
market 5%
vacancy
5 year hold analysis with internal rate of returns (IRR)
Based on
market 5%
vacancy
The Market—Southern NM
Distance from Hobbs to:
Carlsbad, NM
Artesia, NM
Midland/Odessa, TX
Lubbock, TX
Roswell, NM
Amarillo, TX
El Paso, TX
Las Cruces, NM
Santa Fe, NM
Albuquerque
Dallas, TX
San Antonio, TX
69 miles
77 miles
97 miles
109 miles
116 miles
220 miles
234 miles
287 miles
307 miles
314 miles
396 miles
412 miles
Although the rest of the country might
know New Mexico for its award winning TV Show, Breaking Bad, astute
investors are looking at New Mexico as
the place to invest.
Thanks to major employers like Sandia
National Laboratories and Intel, New
Mexico is home to more PhD’s per capita than in any state in North America.
New Mexico has an exceptional quality
of living, as well as mile high Sandia
mountains, and North Americas largest
cottonwood forest. It is known for its
300+ days of sunshine, skiing and golf in
the same day, stunning sunsets, and
abundance of outdoor activities.
The Market—NM’s Energyplex
The cities of Eunice, Hobbs, Jal, Lovington and Tatum have
banded together to form the EnergyPlex—economic development focused on the abundant natural resources offered in
Lea and adjoining Eddy counties.
Lubbock
Lea county ranked as the fastest growing county in NM
from 2010 to 2014 with a 8.1% growth, followed by Curry
(Clovis), and Eddy County (Carlsbad) at 4.8%.
Hobbs Area major employers (Q2-2015)
Hobbs, NM
Midland/Odessa
100 mile radius
Within 100 miles of Hobbs is:
859,752 people
with a median age of
30.9 years
with a median household income of
$65,274
442,523 employees
309,858 households
39,444 businesses
Hobbs Municipal Schools
1193
Haliburton
608
City of Hobbs
431
Lea Regional Medical Center
423
Ferguson Construction
411
Nor-Lea hospital
394
NM Junior College
389
Walmart
368
Urenco
362
Lea County
302
GEO Group (Correctional Facility)
267
D & D Pipeline Construction
254
NovaMud
225
Zia Park Racetrack and Casino
216
McDonald's
215
Willibros
181
Baker Hugest
183
Lin-Mar
174
WCS
171
Area Demographics/Employment
The Hobbs Regal
Manor Apartments are
within a few minutes
drive time of a majority of the city including
access to some 1,886
businesses, 21,885 employees, and 36,317
people whose average
household income is
$65,274.
The census block that
contains Regal Manor
has an average household income of $41,298
to $71,695.
Hobbs Average Household Income
Retail opportunities in Hobbs, NM
The Hobbs Regal Manor
Apartments are located in the
heart of Hobbs and within a 10
minute drive of most anything a
resident might need in the city.
The Residential Neighborhood
The Regal Manor Apartments
are located in a middle to high
end residential neighborhood
with single family housing values ranging from $80,000 to
$350,000.
Photographs on the map show
the wide range of architectural
and housing styles available in
this market.
UNM
Park &
Ride
Exterior photographs
Interior photographs
Key Dates
Property Tour : Scheduled on an as-needed basis. Bankruptcy Court
has ordered property to be liquidated and sold ASAP.
Register online for the tour at
www.nmapartment.com/hobbs
Marketing Advisors
The property is being offered a fixed deadline for receipt of all
offers. Additional information on the sales process can be
found at
www.nmapartment.com/bidprocess/bidprocess.pdf
Todd Clarke
CEO
NM Apartment Advisors Inc.
505-440-TODD
[email protected]
www.nmapartment.com
Steve Etkind
Tier One Partners LLC
505-263-1500
[email protected]
Ron Hensley
Tier One Partners LLC
505-238-6335
[email protected]