Steve Fisher Apartment & Land Offering Canyon Bluffs Apartments 48 Unit Phase II

Apartment & Land Offering
Spokane, WA
Canyon Bluffs Apartments
Completed 2004-05
192 Units
Includes 10,000 sq. Ō. Club House
48 Unit Phase II
Fall of 2012
429 Units of Multi-family Land
Offered by:
Steve Fisher
Managing Broker
Coldwell Banker Tomlinson North
509-994-2599
[email protected]
Steve Fisher—Coldwell Banker Tomlinson North 509‐994‐2599 Existing 192 Units
Permitted 48 Units
Remaining Land (429 Units)
CANYON BLUFFS
PROJECT DESCRIPTION
The Canyon Bluffs development is located in the southwest quadrant of the City of Spokane
in Washington State. The neighborhood is currently known as the "South Hill" area. The
subject site is bordered by upper-end custom-built homes in a well-established residential
community.
Driving time from the site to the center of downtown is approximately five (5) minutes. The
site has a panoramic view of the mountains and is easily accessible from the two nearby
north-south (Hwy 195) and east-west freeways (Hwy 190). Driving time to the Spokane
airport and Fairchild Air Force base is about 10 minutes.
The project has residential zoning and full P.U.D. approval for 793 units of residential
housing, including apartments, townhomes, condominiums and single-family homes, both for
rent and sale.
The Final Map is recorded for the entire property and divides the land into seventeen (17)
parcels. The project is planned to be built in four (4) or five (5) separate phases, with
apartment buildings or for sale homes. All streets within the development are private.
The Development Agreement and the project approvals, also allow the developer to set his
own phasing and determine how many units and types should be built at any one time.
Phase One:
Multifamily:
Completed: Phase One (built in 2004-2005) includes 192 units, consisting of eight (8)
buildings with 24 apartments in each building.
Single Family:
Completed: The Developer completed and sold as part of Phase 1, 59 single family lots and a
parcel of land for 65 units.
Phase II: Multifamily
Contemplated New Construction in 2012: Phase Two will have an additional 48 units,
consisting of two (2) additional buildings with 24 apartments in each building. Plans are fully
completed and the City has issued all the building permits. All utilities are available to the
building site and all the required notices for the impending project have been posted. The
construction of the 48 unit apartment project is scheduled to start September of 2012. The
HUD 221-d4 loan is amount is $3,756,100 committed with a 40 year fixed interest rate lock at
3.18%.
At the completion of this Phase the sales price of the 48 units is $4,300,000.
The unit types designed for Phase Two are: a) Studio - 1 bath, b) 1 bedroom - 1 bath, c) 2
bedroom – 1 ½ baths, d). The buildings are designed for three stories, with two separate
entries and will be fire sprinkled. All apartments will feature a private deck or patio.
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The Homeowners Association for the entire Canyon Bluffs PUD was formed several years
ago and is operational. The Covenants, Conditions and Restrictions were approved, recorded
with the County Recorder’s Office and bind all the parcels in the Canyon Bluffs PUD. The
developer still controls the HOA.
Description of Clubhouse:
There is a Stunning 10,000-sq. ft. state of the art two story Clubhouse, located at the entrance
to the Canyon Bluffs development on Westwood Drive, a few yards beyond the Thorpe Road
entrance - opposite the bus stop turn around.
This clubhouse and recreation center provides numerous one-of-a-kind amenities such as a
racquetball/basketball court, a weight lifting and exercise aerobics center, and a Dry heat
thermostat controlled Sauna, a very large tiled Whirlpool facility with shower and a private
sun-tanning room. A communications room that houses the cable TV, internet and telephone
cables, wires and electronics; a mechanical and pool equipment room; an elevator equipment
room and a storage and electrical room complete the plethora of elements and functions found
in the Clubhouse complex. There are lockers in the men and women’s bathroom, together
with showers and changing areas in the lower floor facility - additional bathrooms for both
men and women are also available on the top floor. Convenient vending machines are easily
accessible to all attendees at the lower level
In addition to the athletic amenities, the clubhouse provides social entertaining and daily
recreational activities. There are also social gatherings, celebrations, events, meetings and
conferences organized by residents, staff and community organizations.
On the upper floor, there is also a hi-tech, large screen video and surround sound theater and
community meeting room. A computer is available for the residents’ use, near the entrance to
the spacious social room and fireplace, where they gather and congregate in a casual and
elegant setting – a spacious and comfortable Pool room is very popular and a commercial
grade elevator is available for individuals that have difficulty using the convenient staircase
that provides access to the amenities located on the lower level
Complementing the interior amenities, there is an elegant outdoor swimming pool,
surrounded by professionally designed multi-level decks and a patio – BBQ anyone? The
entire area is landscaped with native trees, selected plants, rock outcroppings, waterfalls and
attractive night lighting.
A fully equipped workshop located at the end of the lower level houses the necessary
supplies, equipment; tools and parts needed to maintain the apartment buildings and all other
on site facilities – video cameras inside and on the exterior of the Clubhouse constantly record
and save 24/7 all activities that take place around the clock.
The spacious administrative and leasing offices to the left of the front entry to the Clubhouse,
serve prospective and current residents.
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Description of Future Phases:
Townhomes: The City of Spokane has approved the development and construction of 32
townhomes in two separate locations of the property. The final subdivision map and the
building plans are completed and construction can begin at the developer’s discretion.
Apartments: The next apartment phase contemplated by the developer could consist of 100
or more units of adult housing. The improvements will feature locally Themed 5 story
buildings with a parking garage and surface parking. Elevators that access every level will be
a welcome feature for this segment of the market. The Apartments will enjoy panoramic
views of the valley, privacy, closeness to the state of the art medical facilities, hospitals and
clinics found a few minutes away catering to the retired, senior market, a bus stop at the
entrance to the Community and the nearby walking trails that provide access to parks and
other destination places as far away as Idaho and Montana. The floor plans, finishes,
appliances, details, components and mix will be based upon the experience gained from
anticipated regional demographics and the needs of the existing rental market.
Site Description:
The main entry road to this 82-acre Plan Unit Development (PUD) is Westwood Road, a
private road, which connects to Thorpe Road, the main East West access to the region and
State Hwy 90 – a couple of blocks away. All the streets in the project are private and are
maintained through the oversight of the Canyon Bluffs Homeowners Association.
There is a Northerly secondary entrance and exit to the PUD, off Canyon Woods Lane and
16th Street, leading through the existing Canyon Bluffs single family residential community
that is a part of the entire approved PUD development.
In addition to the attractive landscaping that has been designed for this specific site, taking
into consideration its location, weather, soil type and circulation; the grounds feature trails
and walking paths, for the residents’ enjoyment. Native trees, carefully selected shrubs and
plants, together with aesthetic rock placements created a very inviting and appealing "parklike" atmosphere.
Special Features:
The Canyon Bluffs development features a consolidated communication wired community
with broadband and high-speed Internet access, data transfer, video delivery and telephone.
This technology is state-of-the-art information and electronic services provided by Comcast
and Qwest.
The paths that are designed and built on the Canyon Bluffs PUD site connect with an existing
trail that is known as the Centennial Trail, which is planned to connect Spokane with parks,
recreational facilities and towns as far as Idaho, Montana and the southern and western
portions of Washington State.
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Canyon Bluffs Apartments:
The studio type apartments are very affordable for single residents and are in great demand by
corporate suite users.
The one-bedroom apartments are loaded with the latest designed floor plan features and
modern appliances.
The two-bedroom one-bath type units include oversized living rooms.
The new two-bedroom one and a half bath type units provide for a patio or deck on all floors.
The spacious two-bedroom two-bath suites are designed so that two roommates can share the
financial benefits from shared rent, much larger living and sleeping quarters and still keep
their privacy.
All apartment rents include the cost of hot and cold water, garbage, carport covered parking,
the use of the athletic, recreational and social activities at the clubhouse and the benefits of a
"leading edge" communications system supported by Comcast and Qwest.
All single-family home residents may apply and use the Clubhouse amenities for a monthly
fee, at the Landlord’s discretion.
There are six (6) (2 bedroom 1 bath) furnished apartments that are made available for
temporary Executive Suites occupancy with a minimum 3 to 6 month stay – terms and
conditions change seasonally.
Canyon Bluffs Pricing
A. 192 Unit Phase One Apartments
$17,500,000
(Currently processing refinance to a lower rate)
B. 48 Unit Phase Two – At Completion
$4,300,000
*(Includes Approved Plans, Completed Streets, All
Approvals, Permits, Utilities to property and Financing
package) - Construction & 40 year (HUD 221-d4) loan
rate locked in at 3.18%
C. 32 Units of Townhome Land
(Includes Plans, Approvals, Utilities to property)
Inc. D below
D. Remaining Land / 429 Units Land
$4,000,000
(Includes Site Grading, Utilities stubbed at street ends)
TOTAL Sales Price
$25,800,000
Total Loans
$19,640,800
$ 6,159,200
SELLER EQUITY
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CURRENT FINANCING
1.
Loan terms for the existing 192 apartments:
Heartland Bank:
A.
Original Amount: $13,134,700
B.
Term: 40 years
C.
Rate: fixed 3.75%.
D.
The loan is assumable for a ½ % assumption fee.
E.
There are no personal guarantees required.
3.
Loan terms for the under construction 48 units:
Heartland Bank:
A.
Loan Amount: $3,756,100
B.
Term: 40 years
C.
Rate: fixed 3.18%
D.
Assumable: ½% fee
E.
No Guarantees
2.
Land Development Loan:
A.
There is an existing $2,750,000 Land Development loan which was used to grade
the balance of the site where the future units are to be constructed.
Development of the Remaining PUD property:
There are eight (8) remaining lots of various sizes to build the remaining 461 units approved
for construction.
Included with the land at this price are the following benefits:
1.
2.
3.
4.
5.
6.
7.
8.
9.
A credit from the City of Spokane of about $50,000 to go towards
the next building permits.
Street access and utilities available to the next phases including
fiber optics lines.
The total site is graded for the future phases: roads, building pads
and drainage basins.
Two lots graded with utilities to them and the paved street finished
supporting the approved 48 units.
Engineering models for grading, water, sewer and utilities for the
balance of the site.
Architectural plans complete for the 48 units and the 32 town
homes with permits issued for the 48 units.
Westwood Road completed grading with utilities ready to pave.
Final maps and PUD plan approved and recorded by the City.
The contract with Comcast requires the payment to the developer
of $225 per apartment, condominium, townhouse or any other type of unit,
including single-family residences as occupants sign up for service in the future.
Canyon Bluffs One, LLC’s Acquisition – 192 units
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Amounts are approximations:
Purchase Price
*Assumable Debt
Cash at Close
$17,500,000
$13,134,700
$ 4,365,300
Purchaser buys the existing Members’ Interest, leaving the entity, Canyon Bluffs One, LLC, intact.
Canyon Bluffs One, LLC is a single asset entity of which Feature Realty, Inc, a Nevada “sub
S” corporation, licensed in Washington, as its Manager has a 1% Membership Interest.
If Feature Realty retains a portion of Canyon Bluffs One LLC it should be possible for the
Buyer to reduce the assumption fee on the HUD loan which is a ½ %. Additionally, since Canyon
Bluffs One LLC is a single asset entity, the Buyer can propose to purchase the Member’s Interest in
the LLC, instead of buying the real Estate.
The Seller is willing to consider suitable terms from a qualified purchaser, using the above
information, to structure a mutually acceptable deal.
Canyon Bluffs Two, LLC’s Acquisition – 48 units
Purchase Price
*Assumable Debt
Cash at Close
$4,300,000
$3,756100
$ 543,900
Feature Realty Inc. Stock Acquisition Purchase Price
**Loan Assumption
Cash (Equity) to Seller
$ 4,000,000
2,750,000
$1,250,000
**Loan:
Assumed by Buyer of Feature Realty, Inc
$ 2,750,000
**The grading loan is collateralized by the remaining land (8 lots) (429 units). As new apartments are
ready to build, advances will pay the loan down.
**This note is due in 5 years amortized for 30 years with monthly payments of P & I. Interest rate
6.5%.
*Feature Realty Inc. is a single asset entity consisting of the undeveloped land, approved for about
429 units.
A new Canyon Bluffs Two LLC has a 48 unit project approved and ready to build with permits. That
project will be built on Lot 6 which is owned free and clear and not tied to the Grading loan for the
remainder of the property.
There is an agreement in place between Canyon Bluffs One LLC and Feature Realty for use of the
Club House constructed in the initial 192 unit phase one. This allows for additional economies of scale
in leasing, management and community to be built into the project as additional phases are
constructed and completed.
Seller will consider staying as partner in the land portion of the deal for a portion of the
equity, and acting as the contractor for future phases or any combination thereof.
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EXHIBIT A
SELF-CONTAINED
APPRAISAL REPORT
SUBJECT PROPERTY
Canyon Bluffs Excess Land
North of Thorpe Road and West Westwood
Lane
Spokane, WA 99224
PREPARED FOR
C/O Mr. Kevin McCathren, CPM
McCathren Mgmt. & Real Estate Services
1848 West Broadway S-A
Spokane, WA 99201
PREPARED BY
Prithy A. Korathu
John A. Campbell, CMI
Renée C. Schaefer, MAI
January 12, 2007
C/O Mr. Kevin McCathren, CPM
McCathren Mgmt. & Real Estate Services
1848 West Broadway S-A
Spokane, WA 99201
RE: Canyon Bluffs Excess Land
North of Thorpe Road and West Westwood Lane
Spokane, WA 99224
In accordance with your request, we have conducted an appraisal of the above captioned
property.
The property is valued using generally accepted appraisal principles and theory. The report is intended
to conform to the Uniform Standards of Professional Appraisal Practice (USPAP), the
Federal Deposit Insurance Corporation (FDIC) and the Financial Institutions Reform, Recovery and
Enforcement Act (FIRREA) standards.
At the request of the client, this appraisal report is presented in a self-contained appraisal format as
defined by USPAP Standards Rule 2-2(a). This format provides a detailed description of the appraisal
process, subject and market data and valuation analyses. The appraisal service was performed in such a
manner that the results of the analysis, opinion, or conclusion be that of a disinterested third party.
The purpose of this appraisal is to estimate the As-Is Market Value of the subject property. The
site is described in the report. The following table summarizes the estimated value conclusion(s), based
upon our investigation and analysis of available information:
VALUE SCENARIO(S) INTEREST APPRAISED DATE VALUE
Site Value Fee Simple December 6, 2006 $6,310,000
*This value assumes that the property is unencumbered by bonds
EXHIBIT B
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