Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
1200 Sunrise Plaza Drive Florence, Arizona 85232
CONFIDENTIAL OFFERING MEMORANDUM
EXCLUSIVE LISTING
For Further Information
Jason Jones, Sr. V.P.
602-625-0964
2942 24th Street #114, Phoenix, AZ. 85016 – 480-423-8383 – Fax 602-271-0220 – [email protected]
www.shshotels.com
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
DISCLAIMER STATEMENT
Important – Please Read
Broker Disclaimer
This Confidential Offering Memorandum has been prepared by Swoboda Hospitality Specialists (SHS) in cooperation with the owner, solely for the limited use
of prospective purchasers. This Confidential Offering Memorandum is not intended to provide all the information necessary to reach a purchase decision.
Each prospective purchaser is encouraged to do their own inspection and gather and verify to their satisfaction any information about the property.
Financial, operational, property description, projections and other information are carefully compiled from sources believed to be reliable, however, no liability is
assumed for errors and omissions, misstatements of facts, prior sale, change in price or withdrawal from the market without notice. No obligation is assumed
by (SHS) to supplement or modify the information to reflect subsequent events or conditions. Nothing contained in this presentation should be assumed to
constitute legal or tax advice concerning the property or the purchase of the property.
Environmental Issues:
The owner and (SHS) specifically make no representation whatsoever about any environmental conditions on the property, including but not limited to issues
such as asbestos, hazardous waste, petroleum leaks or spills. Each prospective purchaser is encouraged to do their own study and analysis in order to
determine to their own satisfaction the status of any Environmental issues.
American With Disabilities (ADA) Federal Law:
This law is intended to make many business establishments equally accessible to persons with a variety of disabilities; modif ication to the real property may be
required. State and local laws also mandate changes. (SHS) in this transaction is not required to advise you as to what, if any changes may be required not or
in the future. Prospective purchasers should consult an attorney and a qualified design professional of their choice for information regarding these matters.
Real Estate Brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area.
Confidentiality:
All information contained in this offering, except information which is a matter of public record, is confidential in nature and must be held in the strictest
confidence. Duplication or reproduction of any of the contents of this document, or other information provided to you by (SHS) about the property, without
express written permission of (SHS) is prohibited. The recipient of offering further agrees that they will not attempt to contact the Seller or employees of the
property, nor visit the property without the expressed consent of both (SHS) and the Seller of the property.
Return This memorandum is the property of (SHS) and is intended to be used by such parties to whom (SHS) has delivered this memorandum, or to whom
(SHS) has approved such delivery. If you have no interest in the property at this time, kindly return this memorandum and all other information provided to you
by the owner, (SHS) or others to: Swoboda Hospitality Specialists 2942 N. 24th Street #114, Phoenix, AZ., 85016.
Agency: (SHS) is the exclusive agent of the Seller, and shall be compensated by the Seller.
Acceptance: Acceptance of this Confidential Offering Memorandum by recipient signifies acceptance of the terms and conditions stated above.
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
TABLE OF CONTENTS
Disclaimer
Investment Highlights
Property Description
Market Summary
Lodging Market Analysis
Financial Analysis
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
INVESTMENT HIGHLIGHTS
Swoboda Hospitality Specialists, as sole and exclusive agent for Pinal Hotel AZ-1 L.L.C. (the “Seller
is pleased to offer qualified investors the opportunity to acquire the fee-simple interest in the 90-room Holiday Inn
Express (the “Property” or “Hotel”) in Florence, Arizona.
Florence is located 60 miles southeast of Phoenix and 70 miles northeast of Tucson.
The Holiday Inn Express is the only branded property in Florence, and it is nearly 30 miles from its closest competitor. The Hotel opened in 2008,
is in excellent condition, and has one of the strongest brand affiliations in its competitive set. The town of Florence relies heavily on the government
sector, primarily the corrections department, as there are nine prisons in the area.
This offering represents an excellent opportunity for a hands-on owner/operator to acquire a relatively new hotel with a strong brand
affiliation at an attractive price per room that is well below replacement cost. There is strong upside available to a new owner/operator who will
employ a more hands-on approach.
More details can be found at www.shshotels.com
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
KEY PROPERTY FEATURES
HIGHLIGHTS
• 90 guest rooms in a three-story, interior corridor
building
• 3,038 square feet of meeting space
• Outdoor swimming pool and whirlpool, fitness room,
business center, and a guest laundry
• Opened in April 2008 and is the newest hotel in the
Florence/Coolidge/Casa Grande region
• Strong upside available as the hotel approaches
stabilization
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
AREA GROWTH
• The largest commercial business in Florence is the
housing of prisoners in the three large correctional
facilities located in the center of town. Over the last few
years, the State of Arizona had been housing 5,000
prisoners in Oklahoma but is now moving those inmates
back to Florence. The town’s prisoner population grew
in 2010 from 17,000 to 19,000 as a result of these
returning inmates. The largest prison operator in the
country, Correction Corporation of America, recently
purchased 200 acres in Florence on which they will add
space for an additional 8,000 inmates, increasing the
capacity of the Florence prison system by almost 50%.
• The National Guard is expanding their presence in
Florence by adding a “Readiness Center” which will be
completed in January 2011. This center is part of the
Guard’s overall plan of moving a significant portion of
their operations facilities from Phoenix to Florence.
• Florence Community Hospital, a renovation of the
former Central Arizona Medical Center, reopened as a
privately run facility in spring 2010. In addition to typical
treatments, the hospital, which is less than one mile
from the Holiday Inn Express, will also offer long-term
care. and is now known as. Additionally, ground was
recently broken on the construction of the new Florence
Hospital at Anthem located ten miles north of the
Hotel in the Anthem at Merrill Ranch community. The
10-acre site will be the first phase of a planned 40-acre
medical campus.
FINANCIAL HIGHLIGHTS
Price: $5,950,000
Price per room: $66,110
Number of rooms: 90
OWNERSHIP AND TERMS
The Property is offered free and clear of debt and
management and a minimal change of ownership PIP is
expected.
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
PROPERTY DESCRIPTION
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
SUMMARY OF FACILITIES AND AMENITIES
Address:
1200 Sunrise Plaza Drive Florence, Arizona 85232
Guestrooms: 90 guest rooms
Built: 2008 / 3 story, interior corridor
Acres: +/- 2.44 acres
Parking: 101 surface spaces
Tenure: Fee simple
Meeting Space: 3,038 square feet, including a
2,646-square foot ballroom
Food & Beverage: Complimentary continental breakfast
In-Room Amenities:
Complimentary high-speed Internet
32" flat panel television
Coffee maker
Microwave/mini-refrigerator
Hair dryer
Iron and ironing board
Additional Amenities:
Outdoor swimming pool and whirlpool
Fitness room
Business center
Guest laundry
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
ACCESS AND VISIBILITY
The Property enjoys good visibility from Florence-Coolidge
Highway (Highway 287), one of the primary thoroughfares
bisecting Florence.
GUEST ROOMS
Each of the 90 guest rooms features a 32’ flat panel television,
work desk with chair, high-speed Internet access, two-line
phone with voicemail and speakerphone, coffee maker,
microwave, mini-refrigerator, hair dryer and iron/board.
GUEST ROOM CONFIGURATION
ROOM TYPE NUMBER
Standard King 4
Jacuzzi King 4
King Handicap 3
Double Queen 28
Double Queen Handicap 1
King Suite 50
Total 90
FOOD AND BEVERAGE
The Holiday Inn Express offers a complimentary
Smart Start breakfast buffet daily.
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
PROPERTY DESCRIPTION MEETING FACILITIES
The Property’s meeting space is made up of two rooms with a
total of 3,028 square feet.
MEETING SPACE
ROOM AREA (SF) SEATING
Ballroom 2,646
Board Room 40
Classroom 150
Banquet 200
Reception 250
Theatre 300
Boardroom 392 40
CONSTRUCTION SPECIFICATIONS
STRUCTURAL AND SYSTEMS OVERVIEW
COMPONENT DESCRIPTION
Building Size:
Approximately 56,028 square feet
Foundation:
Reinforced concrete footings and stem walls, with reinforced
concrete slabs on aggregate base course (ABC)
Structural: Frame Wood, Exterior Walls Synthetic stucco
construction with, artificial stone accents, Interior Walls
Gypsum board on wood/steel studs, Roof Pitched with
decorative concrete tile
Parking Surface:, 101 spaces
HVAC
Guestrooms: individual wall-mounted heat pumps;
Public Areas: large roof-mounted heating and air conditioning
units
Public Utilities:
Electric: Arizona Public Service
Gas: Southwest Gas Company
Water: Town of Florence
Sewer: Town of Florence
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
MARKET AREA OVERVIEW
FLORENCE OVERVIEW
Florence is situated along the Gila River in the Sonoran Desert, 60
miles southeast of Phoenix and 70 miles northeast of Tucson.
Florence, located just east of the 372,000-acre Gila River Indian
Community, is one of the oldest towns in Arizona and is regarded as
a National Historic District with over 100 buildings listed on the
National Historic Registry. It is the seat of Pinal County, one of two
counties that comprise the Phoenix-Mesa MSA. Florence is home to
nine prisons including two Arizona Department of Corrections
prisons – Arizona State Prison Complex – Eyman and Arizona State
Prison Complex – Florence, the largest prison complex in the state.
Florence is also home to Country Thunder, the largest country music
festival in the southwestern U.S., and the Junior Parada Rodeo, the
oldest sanctioned youth rodeo in the country.
POPULATION
Much of the land within Florence, and the neighboring cities of
Coolidge and Casa Grande was historically a combination of desert
and agricultural land. However, between 1994 and 2005, the
Phoenix-Mesa MSA experienced a significant development boom.
During this period, significant new master planned, residential
development began to occur within Florence, Coolidge, and Casa
Grande to meet the need for affordable housing, as many people
were being priced out of housing closer to major employment
centers and transportation arteries. The major planned communities
in the area include Del Webb/Pulte’s Anthem at Merrill Ranch, a
master planned community in Florence, and the Cross Creek Ranch
and Heartland Ranch master planned communities in Coolidge.
These new developments resulted in significant population growth in
Pinal County over the last ten years. Additionally, the town of
Florence has grown from ten square miles in 2000 to over 50
today.
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
ECONOMY
Its relatively young population base and low cost of
living, which is 21 to 27% lower than Southern
California, makes the Phoenix area an attractive
location for growing firms to build their employment
base. According to the U.S. Bureau of Labor Statistics,
total employment in the Phoenix MSA is currently nearly
1.7 million workers. Between 2003 and 2007, total
employment in the Phoenix MSA grew at 4.2%
annually, well above the national average growth rate of
1.4%. In March 2008, employment in the MSA began to
decline as compared to the previous year and total
annual employment fell at a rate of 5.2% per year
between 2007 and 2009. Total U.S. employment fell at
an annual rate of 2.5% during the same period. As
of September 2010, the unemployment rate in the
Phoenix MSA was 8.9% compared to 9.7% for the state
and 9.2% for the U.S. Agriculture is a predominant
employer within Pinal County, and cotton, cattle, grains,
and grapes are some of the main agricultural products
produced in the area. However, employment within the
town of Florence is dominated by the public sector,
most of which is concentrated within the area’s
correctional facilities. There are nine prison facilities in
Florence with a combined total of 17,000 beds providing
over 4,500 jobs. There are several federal government
and military training and testing facilities in and around
the Florence area. The major private employers in
Florence include Corrections Corporation of America and
Correctional Services Corporation. Major public employers
include the Arizona Department of Corrections, Florence
Unified School District, Pinal County Government, the Town of
Florence, and the U.S. Department of Homeland Security.
Additionally, the National Guard is expanding their presence in
Florence by adding a “Readiness Center” which will be
completed in
January 2011. This center is part of the Guard’s overall plan of
moving a significant portion of their operations facilities from
Phoenix to Florence. The Hotel is two miles from Florence’s
CBD. Additionally, the local economic base is integrally tied to
the economic base of the overall Phoenix-Mesa MSA.
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
TOURISM
There are many recreational opportunities and areas of
interest in and around Florence. The Gila River runs
through the town. Just east of Florence, visitors will find
numerous opportunities to enjoy the Sonoran Dessert
including the areas of Box Canyon, Martinez Canyon,
old Silverbell Mine, and Coke Ovens. Also in the area
are the Casa Grande Ruins, Lost Dutchman State Park,
Boyce Thompson Arboretum State Park, Tom Mix
Monument, and the Superstition Mountain Wilderness
Area. The Hotel is seven miles from St. Anthony
Monastery, the largest Greek monastery in the country.
The Hotel is also proximate to the Superstition Golf
Course, site of the LPGA Safeway Classic golf
tournament, and the Renaissance Festival. Major
events in the area include the annual Country Thunder
Music Festival, the largest music festival in the
Southwestern U.S., and the Junior Parada Rodeo, the
oldest sanctioned youth rodeo in the country. The
Arizona Renaissance Festival, east of Apache Junction
in the foothills of the Superstition Mountains, is a one of
the largest events of its kind in the nation. It features a
12-stage theater, 30-acre circus, an arts and crafts fair,
a jousting tournament, and a daily feast.
TRANSPORTATION
Highways
Florence is situated in the central portion of Pinal
County, 45 minutes from Phoenix and Tucson. The
town is 20 miles east of I-10 and is bisected by Highway
287, Highway 79, and Hunt Highway. Highway 287
connects Florence with I-10 to the west. Highway 79
connects the town with Apache Junction in eastern
Phoenix to the north, and Tucson to the south. Hunt
Highway provides access to the city of Queen Creek in
southwestern Phoenix. Airport The Holiday Inn Express
is 58 miles southwest of Phoenix Sky Harbor
International Airport which is, by far, the busiest airport
in Arizona with over 19 million annual enplanements.
The Hotel is 78 miles northeast of Tucson International
Airport, Arizona’s second busiest airport with over 2
million enplanements a year.
DEMAND GERNERATORS
DEMAND GENERATOR DISTANCE (MILES)
Florence State Prison 0.25
McFarland State Park 2
Casa Grande Ruins 5
Country Thunder Music Festival 5
St. Anthony's Greek Orthodox
Monastery 7
Anthem Golf Course 9
Junior Rodeo 11
Renaissance Festival 24
Gold Canyon Stables 25
Gold Canyon Golf Course 25
L O D G I N G M A R K E T A N A LY S I S
COMPETITIVE SET OVERVIEWThe identified competitive set of hotels is comprised of six hotels in addition to the Holiday Inn Express. Collectively, these properties provide a totalof 596 guest rooms including the Property. A profile of each of the identified competitive hotels is presented in the following table:
COMPETITIVE SET CHARACTERISTICS
PROPERTY CITY/STATE ROOMS OPENED DISTANCEMEETING
SPACE COMP
BREAKFASTRESTAURANT /
LOUNGEFITNESS CENTER
POOL
Holdiay Inn Express and Suites Florence, AZ 90 2008 NA 3,038 SF Y N/N Y Outdoor
Holiday Inn Casa Grande Casa Grande, AZ 176 1987 30 mi SW 5,796 SF N Y/Y Y Outdoor
Days Inn Casa Grande Eloy, AZ 67 1979 37 mi SW NA Y N/N N Outdoor
Super 8 Apache Junction Apache Junction, AZ 60 1996 34 mi N NA Y N/N N Outdoor
Best Western Gold Canyon Inn & Suites Gold Canyon, AZ 68 1999 28 mi N 5,289 SF Y N/Y Y Outdoor
Comfort Inn Casa Grande Casa Grande, AZ 65 1999 27 mi SW NA Y N/N Y Outdoor
MainStay Suites Casa Grande Casa Grande, AZ 70 2006 27 mi SW NA Y N/N Y NA
19
L O D G I N G M A R K E T A N A LY S I S
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Holiday Inn Casa Grande The four-story, interior corridor Holiday Innwas built in 1987. This 176-room property isthe largest hotel in the competitive set. Itfeatures Cabo’s Bar and Grill, an outdoor pool,fitness center, complimentary high-speedInternet access, guest laundry, business center, airport shuttle, and 5,796 square feetof meeting space, including a 4,500-square footballroom. The hotel is located approximately30 miles southwest of the Property.
Days Inn Casa Grande
Located in Eloy, 37 miles southwest of theHoliday Inn, the two-story, exterior corridorDays Inn was built in 1979. The Days Innfeatures a complimentary continentalbreakfast, free high-speed Internet access,an outdoor swimming pool, guest laundry, andtruck/bus parking.
Super 8 Apache Junction
The 60-room Super 8 is located 34 miles north ofthe Holiday Inn Express in Apache Junction.Built in 1996, the two-story, interior corridorSuper 8 features an outdoor pool and whirlpool,complimentary continental breakfast, wirelesshigh-speed Internet access, guest laundry, and RV/truck parking.
Best Western Gold Canyon Inn and Suites
The Best Western, built in 1999, offers 68guestrooms within a two-story, exteriorcorridor building. Hotel amenities include anoutdoor pool and whirlpool, a fitness center,high-speed Internet access, complimentarybreakfast, and 5,289-square feet of meeting space for up to 200 people. The hotel is locatedapproximately 28 miles north of the HolidayInn Express.
Comfort Inn Casa Grande
The 65-room Comfort Inn is located 27 milessouthwest of the Hotel in Casa Grande. Theinterior corridor hotel was built in 1999 andfeatures an outdoor swimming pool, fitnesscenter, complimentary continentalbreakfast, high-speed Internet access, and a guest laundry.
MainStay Suites Casa Grande
The two-story, interior corridor MainStaySuites was built in 2006 with 70 suites. Eachsuite features a fully equipped kitchen andweekly housekeeping services. The hoteloffers a complimentary continental breakfast,fitness center, guest laundry, high-speed Internet access, and a business center.
L O D G I N G M A R K E T A N A LY S I S
Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013
LODGING AND MARKET ANALYSIS
COMPETITIVE SET TRENDS
The Florence/Coolidge/Casa Grande area has not
suffered from the overbuilding that has plagued many
hotel markets around the U.S., and the Holiday Inn
Express is the only nationally branded hotel in the town
of Florence. The 90-room Subject Hotel, a 77-room
Holiday Inn Express and Suites opened in December
2010 and the 480-room Legacy Suites both in Casa
Grande in Casa Grande, 24 miles from the Subject are
the only three hotels that have opened in the three-city
area since 2006. While the Legacy Suites is operated
as a hotel, it reportedly has a significant amount of long-
term stay demand that could be more aptly described
as permanent residents. The public sector provides
thousands of stable jobs and is the backbone of
the Florence’s economy. Many of the hotel guests
during the week are business travelers working on
government contracts and/or members of U.S.
Marine and National Guard units conducting training
exercises in the area. Since its opening in May 2008,
the Hotel has experienced steady RevPAR growth as it
ramps up and moves towards stabilization. It is the
newest hotel in its competitive set, its ADR index is well
above 100 percent, and its occupancy index is
approaching 100 percent. Due to its superior condition
and brand affiliation, as the hotel reaches stabilization, it
should be able to
achieve occupancy and ADR well above market
penetration levels. An owner/operator with a focused
marketing strategy and hands-on approach would likely
see significant improvement in property operations.
Total Rooms Available 90
2012 ACTUAL RESULTS Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 TOTALS
OCCUPANCY % 46.85% 64.71% 58.35% 59.59% 49.28% 44.81% 40.51% 64.34% 55.85% 63.55% 53.15% 53.23% 54.79%
OCCUPIED ROOMS 1,307 1,689 1,628 1,609 1,375 1,210 1,130 1,795 1,518 1,771 1,483 1,485 18,000
ADR $88.87 $88.94 $86.89 $100.73 $81.88 $76.82 $73.50 $73.21 $75.29 $73.08 $73.76 $82.01 $0.00
ROOMS REVENUE 113,541 150,219 141,454 162,179 112,588 92,954 83,053 131,420 108,152 131,387 106,107 121,788 $1,454,842
NET OPERATING INCOME $28,278 $54,760 $41,010 $48,040 $7,543 $6,662 -$4,294 $28,512 $10,768 $36,483 $7,686 $25,943 $291,391
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
ACTUAL ACTUAL ACTUAL BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
OCCUPANCY % 60.90% 65.71% 60.97% 67.22% 58.06% 52.41% 53.58% 64.34% 75.00% 67.03% 62.22% 56.63% 61.99%
OCCUPIED ROOMS 1712 1656 1701 1815 1620 1415 1495 1795 2025 1870 1680 1580 20364
REVPAR $49.09 $55.76 $53.92 $64.05 $52.03 $42.19 $40.48 $48.78 $57.02 $55.63 $50.67 $45.78 $50.91
AVERAGE DAILY RATE $78.00 $83.17 $84.64 $95.27 $89.60 $80.50 $75.55 $75.82 $76.03 $83.00 $81.43 $80.84 $82.12
REVENUES
ROOMS 134,682 139,350 143,503 172,922 145,150 113,901 112,942 136,100 153,967 155,208 136,804 127,732 1,672,260
TELEPHONE 282 65 247 35 35 20 20 20 20 20 35 35 834
MISCELLANEOUS 1,741 2,984 3,889 3,360 2,866 2,532 2,476 2,638 3,413 3,441 3,558 4,044 36,942
TOTAL REVENUES 136,705 142,399 147,639 176,317 148,051 116,453 115,438 138,758 157,400 158,669 140,397 131,811 1,710,036
COST OF SALES
MISCELLANEOUS 0 458 111 400 0 0 400 0 0 400 0 0 1,768
TOTAL COST OF SALES 0 458 111 400 0 0 400 0 0 400 0 0 1,768
GROSS OPERATING INCOME 136,705 141,941 147,529 175,917 148,051 116,453 115,038 138,758 157,400 158,269 140,397 131,811 1,708,267
PAYROLL AND RELATED
ROOMS 24,576 22,212 26,890 24,017 24,168 23,234 24,382 24,989 24,734 25,165 25,038 25,373 294,779
ADMINISTRATIVE & GENERAL 8,252 8,101 8,072 8,554 8,554 8,837 8,837 9,967 8,967 8,967 9,467 9,967 106,542
ADVERTISING & PROMOTONS 0 0 0 0 0 0 0 0 0 0 0 0 0
REPAIRS & MAINTENANCE 805 534 481 3,138 3,238 3,138 3,238 3,238 3,138 3,238 3,138 3,238 30,564
TOTAL PAYROLL & RELATED 33,634 30,847 35,442 35,710 35,960 35,210 36,457 38,194 36,839 37,370 37,644 38,578 431,885
OPERATING EXPENSES
ROOMS 17,275 13,622 16,264 21,039 17,441 15,299 16,922 18,555 20,614 21,192 17,818 16,997 213,039
TELEPHONE & INTERNET 1,911 992 802 900 900 900 900 900 900 900 900 900 11,805
ADMINISTRATIVE & GENERAL 6,364 6,784 10,581 6,033 5,189 4,408 5,534 4,963 5,409 5,590 4,980 4,753 70,587
ADVERTISING & PROMOTIONS 4,612 1,895 4,635 3,960 3,610 5,610 4,110 4,610 2,960 5,960 3,110 3,460 48,532
FRANCHISE FEES 17,708 16,814 19,042 21,246 18,042 14,604 14,649 17,046 19,011 19,298 17,123 16,126 210,708
MANAGEMENT FEE 2,000 2,000 2,100 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,100
REPAIR & MANTENANCE 4,541 3,801 7,226 2,900 2,700 6,400 2,900 2,700 2,700 2,900 2,700 6,400 47,868
UTILITIES 8,546 7,566 7,588 8,750 8,835 8,985 8,985 9,985 9,385 8,385 8,385 7,885 103,281
TOTAL OPERATING EXPENSES 62,956 53,475 68,239 66,829 58,716 58,206 55,999 60,759 62,980 66,225 57,017 58,520 729,920
HOUSE PROFIT 40,115 57,619 43,847 73,379 53,375 23,038 22,581 39,806 57,580 54,673 45,736 34,713 546,462
FIXED EXPENSES
PROPERTY TAX - PERSONAL 1,000 1,000 1,000 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 15,150
PROPERTY TAX - REAL 9,098 9,098 9,098 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,295
GENERAL LIABILITY/AUTO INSURANCE 2,481 2,116 2,116 2,150 2,150 2,150 2,150 2,150 2,150 2,150 2,150 2,150 26,063
TOTAL FIXED EXPENSES 12,580 12,215 12,215 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 149,509
NET OPERATING INCOME 27,535 45,404 31,633 60,879 40,875 10,538 10,081 27,306 45,080 42,173 33,236 22,213 396,953
NON-RECURRING START UP COSTS 5,191 8,521 6,968 20,680
MORTGAGE P&I EXPENSE 18,132 17,956 41,925 78,013
NET CASH FLOW 4,212 18,927 (17,260) 298,261
2013 BUDGET
2013 YEAR-TO-DATE + BUDGET