Lookout Pointe Apartments - 1200 North Terrace Drive Provo.indd

Lookout Pointe Apartments - 1200 North Terrace Drive Provo.indd

Lookout Pointe
Apartments
A 115 Unit Multifamily Community
1200 North Terrace Drive
Provo, Utah
Mark Jensen
801.578.5505
[email protected]
Greg Ratliff
801.578.5531
gratliff@ngacres.com
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
THE OPPORTUNITY
Lookout Pointe is a one of a kind Property that would be nearly impossible to replace at its current location. In addition to having an amazing setting, there is little
to no non-student housing competing properties in the area. Provo is a very strong rental market with high physical and political barriers to new product coming
online. As a result additional units in Utah County will not compete directly and Lookout will continue to improve its position in the market. Lookout Pointe is a true
community that enjoys long term tenants and little turnover as compared to the rest of the market. The Property attracts a diverse tenant mix and will continue to
maintain high occupancy and rental rates. Lookout Pointe is positioned well to benefit from the positive multi-family market conditions as well as the future growth
of the State of Utah. The Property’s location is such that the additional investment will be rewarded with increased rents and a stronger tenant base. There is a
proven model of upside in renovation.
THE MARKET
Lookout Pointe Apartments sits high on the hill above Brigham Young University in Provo, Utah, which boasts an undergraduate enrollment of over 29,884 students (www.byu.edu). Utah County is also home to Utah Valley University. Recently UVU, formerly Utah Valley State College, became a 4-year college and has
surpassed undergraduate enrollment of BYU with over 33,395 students in 2011 (www.uvu.edu).
Located 45 miles south of Salt Lake City, Provo serves as the county seat and is the largest city in Utah County. It is the third largest city in Utah. Provo is the economic center of the county and has a population of approximately 124,000. Utah County has an unemployment rate of 5.7% which has a lot to do with the access
to a young educated workforce, but it is also well located regionally for distribution and warehousing. The Provo- Orem area was recently ranked 7th by Forbes
Magazine for the Best Mid-Sized Cities for Jobs with a 2.9% employment growth (up from 30th in 2011).
http://www.forbes.com/sites/joelkotkin/2012/05/01/the-best-cities-for-jobs-2/
THE PROPERTY
Lookout Pointe Apartments represent an amazing opportunity for an investor to acquire a 115 unit apartment complex in an irreplaceable hillside location in Provo,
Utah. Lookout Pointe has unbelievable views of the valley and sits high above Provo City overlooking Brigham Young University and the entire Utah County Valley.
The 115 unit complex is comprised of 24 Studios, 76 one bedroom, and 15 two bedroom units. The Property was built in 1974 and sits on 5.85 acres. Amenities
include a swimming pool, laundry room, community meeting room, and large open spaces. Special note: Lookout Pointe is regulated under a Land Use Restriction
Agreement which expires in 2032. The LURA was put into place in 1995 and calls for 41 of the
units to be occupied by residents that qualify under the income restrictions. 23 of the units are
Additional Information Available Upon Request:
held for residents who make 65% if the area median income. Of the restrictions, there is upside
• August 2013 12 Month Trailing, Profit & Loss
in rents in 30 of the 41 units and significant upside ($35,232) in the 18 65% AMI units.
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•
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2
Current Rent Roll
Title Report
LURA Documentation
2012 P & L
Survey
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
PROPERTY HIGHLIGHTS
OFFERING SUMMARY
Lookout Pointe is located within blocks of Brigham Young University and a few
miles from Utah Valley University and a few miles from Utah Valley University.
It is within minutes from University Mall, parks, golf courses, restaurants and
entertainment. Lookout Pointe is named for its amazing world class views!
Price:
• 115 Total Units on 5.85 Acres
$11,400,000
NOI
T-3 Annualized:
Renovation Proforma:
$711,912
$816,792
CAP
T-3 Annualized:
Conservative Renovation Proforma:
• Irreplaceable!
• Unit Mix
- 24 Studio Apartments
- 76 One Bedroom Apartments
- 15 Two Bedroom Apartments
Price Per Unit:
6.24%
7.16%
$99,130
• 69,270 Rentable Square Feet
• Built in 1974
• Amenities Include: Swimming Pool, Covered Parking, Laundry Room, Lots of
Open Space, Community Garden, Dog Park, Community Meeting Space and
Amazing Views!
• Buyer can obtain NEW FINANCING!
• On-Site Leasing Office
• Major Physical and Political Barriers to New Product Making Lookout Pointe a
Very Conservative Investment with Upside in Renovation
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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
1ST LOAN
FINANCIAL INDICATORS:
Price:
$11,400,000
Down Payment:
Rate:
25%
Term:
T-3 CAP:
6.24%
Renovation Proforma CAP:
7.16%
Average Rent / SF:
Cost Per SF:
$44.74
6.6%
Cash on Cash Renovation:
9.7%
PROPERTY ABSTRACT:
T-3 Annualized
Conservative Renovation Proforma
$711,912
$711,912
Renovation Rental Increases
$104,880
$524,898
92 Units $100 Rent Bump
(Includes 5% Vacancy)
ESTIMATED ANNUALIZED EXPENSES:
115
1974
Lot Size SF:
254,826
Rentable SF:
69,270
APN:
30
T-3 NOI Annualized
$99,130.43
Cash on Cash T-3:
Occupancy:
4.50%
$164.57
$3,260.28
Year Built:
$8,550,000
$99,130.43
Expenses / Unit / Year:
Number of Units:
Annual Payment:
SOURCE OF INCOME:
$1.08
Cost Per SF Ground:
Price / Unit:
1 Loan:
$2,850,000
Down Payment %:
Price / Unit:
st
97%
480010060
Administrative
Payroll
ESTIMATED ANNUALIZED OPERATING DATA:
$20,165
$122,075
Advertising
$12,228
Other Income:
Repairs & Maintenance
$17,063
Gross Operating Income:
Turnover Expenses
Utilities
$9,149
T-3 Annualized
Renovation Proforma*
($374,932)
($374,932)
$711,912
$816,792
($524,898)
($539,724)*
$277,068
Total Rental Income:
Expenses:
$90,541
Net Operating Income:
Property Taxes
$24,686
Less Loan Payments:
Property Insurance
$13,178
Contract Services
$29,188
Pre-Tax Cash Flow:
$187,014
$36,659
Percentage Return:
6.6%
Property Management
Total Expenses:
$374,932
9.7%*
*Includes $322,000 in Renovation
Estimated $3,500 Unit in Renovations
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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, 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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
N
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900 Eas t
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21,3 15 ca rs /da y
220 0 No rt h
Cent e r S t re et
700 Eas t
Cent e r S t re et
300 Sou t h
r iv e
T er r ac e D
17,6 50 ca rs /da y
33,2 35 ca rs /da y
800 Nor t h
145 0 E as t
223 0 No rt h
St
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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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
RENT COMPARABLES
CURRENT MONTH RENT
RANGE
UNIT
PROPERTY
UNIT TYPE
Lookout Pointe
1200 North Terrace Drive
Provo, Utah
Total & Weighted Averages
% Occupied
Boulders Phase I-Section 42
750 South 650 West
Provo, Utah
Total & Weighted Averages
% Occupied
Boulders Phase II-Section 42
750 South 650 West
Provo, Utah
Total & Weighted Averages
% Occupied
Pinnacle Canyon View
1401 Sandhill Road
Orem, Utah
UNIT MIX
Studio
437
21
Studio LG
595
4
1x1
600
78
2x1
825
11
2x1 LG
900
1
Cable, Parking, and Tax not incl.
594
115
97%
Built: 1974
Branbury-Student Housing
1x1
449 West 1720 North
2 bed 4 Occup
Provo, Utah
4 bed 4 Occup
Total & Weighted Averages
% Occupied
SIZE (SF)
98%
625
40
935
130
1065
130
$50 per mo all util
950
300
Built: 1986
CURRENT RENT/SF
TOTAL SF
LOW
HIGH
LOW
HIGH
CURRENT
AVERAGE RENT
TOTAL
VALUE OF AMENITIES
CONCESSION INCLUDED IN RENT
EFFECTIVE
RENT
ACTUAL
EFFECTIVE
POTENTIAL RENT PER SF
CURRENT
VACANCY
9,177
2,380
46,800
9,075
900
$598
$619
$589
$782
$835
$610
$619
$669
$809
$849
$1.37
$1.04
$0.98
$0.95
$0.93
$1.40
$1.04
$1.12
$0.98
$0.94
$604
$619
$629
$796
$842
$150
$150
$150
$150
$0
$0
$0
$0
$0
$0
$592
$607
$617
$783
$842
$12,422
$2,426
$48,087
$8,613
$842
$1.35
$1.02
$1.03
$0.95
$0.94
68,332
$612
$671
$1.05
$1.15
$642
$148.70
$0.00
$629
$35,799
$1.08
25,000
121,550
138,450
$679
$916
$1,116
$679
$1,156
$1,396
$1.09
$0.98
$1.05
$1.09
$1.24
$1.31
$679
$1,036
$1,256
$200
$400
$600
$479
$636
$656
$19,160
$82,680
$85,280
$0.77
$0.68
$0.62
285,000
$971
$1,196
$1.02
$1.25
$1,084
$0
$0
$0
W/year lease
$0.00
$1,200.00
$624
$196,532
$0.66
0
0
0
0
0
0
0
0
0
1x1
577
177
102,129
$489
$599
$0.85
$1.04
$544
$0
$45
$499
$88,323
$0.86
0
2x1
728
631
99
276
Built: 1971
72,072
174,201
$650
$547
$750
$653
$0.89
$0.86
$1.03
$1.04
$700
$600
$0
$0
$55
$49
$645
$551
$63,855
$79,546
$0.89
$0.87
0
0
840
960
48
48
789
845
$739
$749
$750
$850
$0.88
$0.78
$0.89
$0.89
$745
$800
$0
$0
$70
$80
$675
$720
$32,376
$34,536
$0.80
$0.75
900
96
Built: 1971
86,400
$621
$668
$0.69
$0.74
$644
$0.00
$62.61
$582
$27,928
$0.65
783
1017
1072
1174
120
24
88
56
93,960
24,408
94,336
65,744
$840
$1,065
$1,120
$1,275
$915
$1,140
$1,195
$1,350
$1.07
$1.05
$1.04
$1.09
$1.17
$1.12
$1.11
$1.15
$878
$1,103
$1,158
$1,313
$150
$150
$150
$150
$130
$130
$130
$130
$735
$960
$1,015
$1,170
$88,200
$23,040
$89,320
$65,520
$0.94
$0.94
$0.95
$1.00
2,421
288
Built: 1997
697,331
$1,099
$1,193
$1.34
$1.45
$1,146
$187.83
$162.78
$967
$96,843
$1.18
675
950
1010
24
110
30
16,200
104,500
30,300
$729
$809
$889
$769
$849
$899
$1.08
$0.85
$0.88
$1.14
$0.89
$0.89
$749
$829
$894
$0
$0
$0
$0
$0
$0
$749
$829
$894
$17,976
$91,190
$26,820
$1.11
$0.87
$0.89
920.7317073
164
Built: 1996
151,000
$812
$846
$0.89
$0.93
$829
$0
$0
$829
$68,701
$0.91
93%
2x2
3x2
94%
1x1
2x2
2X2
3x2
Total & Weighted Averages
% Occupied
94%
Country Springs
625 South Orem Boulevard
Orem, Utah
1x1
2x2 SM
2x2 LG
Total & Weighted Averages
% Occupied
99%
0
0
0
0
0
0
Provided by Apartment Management Consultants (AMC)
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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
RENT COMPARABLES
N
S ta
800 Ea st
G
tre e
te S
Country Springs
164 Units
Built in 1996
en
ev
Unive r sit y P ar kwa y
a
t
Ro
ad
Branbury-Student Housing
300 Units
Built in 1986
223 0 No r t h
]
^
‰
15
@
?
800 Nor t h
Lookout Pointe
115 Units
Built in 1974
900 Ea st
820 Nor t h
500 W es t
Pinnacle Canyon View
288 Units
Built in 1997
Cent e r S t re et
Cent e r S t re et
300 Sou t h
Boulders Phase I-Section 42
276 Units
Built in 1971
Boulders Phase II-Section 42
96 Units
Built in 1971
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
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
SALE COMPARABLES
AXIS AT 739 APARTMENTS
FOX CREEK APARTMENTS
739 South 300 West
Salt Lake City, Utah 84101
• Price: $10,800,000.00
• Price / Unit: $180,000.00
• PSF: $80.11
• Cap Rate: 5.79%
• Closing Date: 02/05/2013
1656 North 400 West
Layton, Utah 84041
• Price: $14,250,000.00
• Price / Unit: $76,612.90
• PSF: $93.56
• Cap Rate: 6.00%
• Closing Date: 12/24/2012
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Units: 60
Acres: 0.97
Rentable SF: 134,820
Year Built: 2008
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Units: 186
Acres: 7.49
Rentable SF: 152,314
Year Built: 1985
CHERRY CREEK APARTMENTS
OVERLOOK APARTMENTS
1551 West Riverdale Road
Riverdale, Utah 84405
• Price: $15,500,000
• Price / Unit: $68,888.89
• PSF: $85.57
• Cap Rate: 6.40%
• Closing Date: 12/24/2012
2930 West 4660 South
West Valley City, Utah 84118
• Price: $26,750,000.00
• Price / Unit: $87,993.42
• PSF: $104.25
• Cap Rate: 6.60%
• Closing Date: 07/01/2013
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Units: 225
Acres: 8.97
Rentable SF: 181,134
Year Built: 1986
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•
Units: 304
Acres: 15.40
Rentable SF: 256,600
Year Built: 1983
FAIRSTONE AT RIVERVIEW APARTMENTS
PARK CAPITOL APARTMENTS
4341 South Riverboat Road
Taylorsville, Utah 84123
• Price: $54,530,000.00
• Price / Unit: $110,833.33
• PSF: $128.56
• Cap Rate: NA
• Closing Date: 10/25/2012
247 North Main Street
Salt Lake City, Utah 84103
• Price: $19,250,000.00
• Price / Unit: $142,59.59
• PSF: $181.99
• Cap Rate: 0.00%
• Closing Date: 12/20/2012
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•
•
Units: 492
Acres: 29.64
Rentable SF: 424,168
Year Built: 1997
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Units: 135
Acres: 1.70
Rentable SF: 105,776
Year Built: 1972
FOOTHILL PLACE APARTMENTS
PEPPERTREE PARK APARTMENTS
2260 South Foothill Drive
Salt Lake City, Utah 84109
• Price: $61,800,000.00
• Price / Unit: $137,333.33
• PSF: $150.20
• Cap Rate: 6.20%
• Closing Date: 05/01/2013
4656 South 3860 West
West Valley City, Utah 84120
• Price: $6,200,000.00
• Price / Unit: $64,583.33
• PSF: $64.82
• Cap Rate: NA
• Closing Date: 12/01/2012
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•
•
•
Units: 450
Acres: 18.93
Rentable SF: 411,458
Year Built: 1975
9
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Units: 96
Acres: 3.90
Rentable SF: 95,644
Year Built: 1985
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com
Lookout Pointe Apartments
1200 North Terrace Drive, Provo, Utah
SALE COMPARABLES
PINNACLE CANYON VIEW APARTMENTS
STERLING VILLAGE APARTMENTS
1401 South Sandhill Road
Orem, Utah 84058
• Price: $36,500,000.00
• Price / Unit: $126,736.11
• PSF: $132.76
• Cap Rate: 5.73%
• Closing Date: 03/13/2013
1656 North 400 West
Layton, Utah 84041
• Price: $14,250,000.00
• Price / Unit: $76,612.90
• PSF: $93.56
• Cap Rate: 6.00%
• Closing Date: 12/24/2012
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Units: 288
Acres: 12.81
Rentable SF: 274,928
Year Built: 1998
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Units: 186
Acres: 7.49
Rentable SF: 152,314
Year Built: 1985
SANTA FE APARTMENTS
SUNSET TOWERS APARTMENTS
1550 East Fort Union Boulevard
Cottonwood Heights, Utah
• Price: $52,000,000.00
• Price / Unit: $105,691.06
• PSF: $135.92
• Cap Rate: 5.18%
• Closing Date: 04/13/2013
40 South 900 East
Salt Lake City, Utah 84102
• Price: $12,012,000.00
• Price / Unit: $105,368.42
• PSF: $139.47
• Cap Rate: 5.28%
• Closing Date: 04/26/2013
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Units: 1985
Acres: 19.81
Rentable SF: 382,588
Year Built: 1985
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Units: 114
Acres: 1.36
Rentable SF: 86,126
Year Built: 1962
SCOTTSDALE APARTMENTS
UNIVERSITY GARDENS APARTMENTS
4000 South Redwood Road
West Valley City, Utah 84123
• Price: $33,400,000.00
• Price / Unit: $76,430.21
• PSF: $193.14
• Cap Rate: 6.71%
• Closing Date: 08/13/2013
1151 East 100 South
Salt Lake City, Utah 84102
• Price: $5,612,750.00
• Price / Unit: $86,350.00
• PSF: $114.50
• Cap Rate: 6.04%
• Closing Date: 03/28/2013
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Units: 437
Acres: 16.35
Rentable SF: 172,928
Year Built: 1985
10
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Units: 65
Acres: 2.63
Rentable SF: 49,020
Year Built: 1948
376 East 400 South, Suite 120 l Salt Lake City, Utah 84111
Office 801.578.5555 l Fax 801.578.5500
www.ngacres.com