for sale | multifamily investment portfolio 1310 …images1.loopnet.com/d2/skneqxooe8...high school...

Presented By:

PHIL REESNESSenior [email protected]

Michel Commercial Real Estate International, Inc. | michelcommercialre.com

1310 5TH AVENUE SOUTH, SAINT CLOUD, MN 56301FOR SALE | MULTIFAMILY INVESTMENT PORTFOLIO

Portfolio Sale

CONFIDENTIALITY & DISCLAIMER

PROPERTY INFORMATION3

LOCATION INFORMATION9

FINANCIAL ANALYSIS17

DEMOGRAPHICS21

ADVISOR BIOS23

A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .

N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .

E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .

A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.

Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .


PROPERTY INFORMATION


Presented By:


SECTION 1


This portfolio sale includes 4 Twin Homes and a 4 unit apartment building. The proximity toSCSU and the luxury design of the Twin Homes make these units desirable for both comfortablestudent housing or family housing.

The 4 Twin Homes are contained in 2 buildings and are only 11 years old! These 4 rental units arevery spacious and include 4 bedrooms in each unit and bathrooms up and down. There is ampleoff-street parking for both buildings. One of the buildings also has a three car insulated garage foreach unit with electric door openers. Each kitchen has an electric range, refrigerator, and dishwasher. Each unit has a gas forced-air furnace and central air. There are washers and dryers in eachunit as well. The 4 Twin Homes each have their own water and sewer lines, allowing for all tenantpaid utilities (water, sewer, gas, and electric).

The 4 unit consists of 4 two bedroom units. There are 4 garage stalls and 4 additional off-streetparking spaces. There is a laundry room with 1 washer and 1 dryer for the use of the tenants. Theseare currently free to the tenants, but could be converted to coin-operated machines. The upperunits have newer decks for the enjoyment of the tenants.

PROPERTY OVERVIEW

This portfolio of a 4 unit apartment building and 4 twin homes (8 units total) is located within acouple blocks of St. Cloud State University. The 4 unit building is 2 blocks from campus and thetwin homes are directly across the street from the Herb Brooks National Hockey Center.

LOCATION OVERVIEW

OFFERING SUMMARY

Total Offering Price $920,000

Twin Homes Price $680,000

4-Plex Price $240,000

Number of Units 8

Price Per Unit - 4 TH's $170,000

Price Per Unit - 4 Units $60,000

Cap Rate - 4 TH's 7.2%

Cap Rate - 4 Units 8.5%

NOI - 4 TH's $49,080

NOI - 4 Units $20,487

Parking Structure and Surface

Number of ParkingSpaces 23 Spaces

Zoning: R3 Lodging House,and Fraternity/

Sorority

1310 5TH AVENUE SOUTH, SAINT CLOUD, MN 56301

PROPERTY INFORMATION | Executive Summary - SC


PROPERTY ADDRESS: 1301 - 1302 4thAvenue South1310 - 1312 5thAvenue South610 14th Street SouthSaint Cloud, MN56301

PIN: 82.44678.000082.44678.000182.44691.0000

LOT SIZE: 7,260 Sq. Ft.7,260 Sq. Ft.13,320 Sq. Ft.

BUILDING SIZE: 2,888 Sq. Ft.1,680 Sq. Ft.3,513 Sq. Ft.

ZONING: R3 Lodging House,and Fraternity/Sorority

PARKING DESCRIPTION: 10 Garage Spaces and13 Surface Spaces

TOTAL PARKING SPACES: 23

YEAR BUILT: 2007 and 1982

NUMBER OF STORIES: 2

NUMBER OF UNITS: 8

LAUNDRY DESCRIPTION: On Site


PROPERTY INFORMATION | Property Details - SC


PROPERTY HIGHLIGHTS

• Twin Homes:

• Built in 2007

• Tenants pay all utilities

• 4 bedrooms in each unit

• Bathrooms up and down in each unit

• Gas forced-air furnace in each unit

• Central air in each unit

• Dishwashers in each unit

• 2 three car insulated garages with door openers

• 4 additional off-street parking spaces per unit

• Directly across the street from the Herb Brooks National HockeyCenter

• 4 Unit Apartment Building:

• 4 two bedroom units

• 4 garage stalls

• 5 additional off-street parking spaces

• New roof in 2014

• Newer deck for each upper level unit

• Fire pit for tenants enjoyment

• 1 Washer and 1 Dryer provided for tenants (could be converted tocoin-operated)

• Tenants pay for trash service (reimbursed to owner each month)

• Electric range, refrigerators, and dishwashers in each unit


PROPERTY INFORMATION | Complete Highlights



PROPERTY INFORMATION | Photos



PROPERTY INFORMATION | Photos 2

LOCATION INFORMATION


Presented By:


SECTION 2



LOCATION INFORMATION | Minnesota

• In 2015, PoliticoMagazine namedMinnesota the “Best Statein the Nation”

• Nearly 40% of Minnesotaadults volunteer theirtime, among the highestpercentage in the nation.

• The state’s 8th gradersrank near the head of theclass in math, science andreading scores.

• The Mayo Clinic inRochester, MN isconsidered to be one ofthe top health careinstitutions in the world.

• Approximately 91.8% ofthe population have ahigh school diploma orhigher.

• Minnesota is home to 17Fortune 500 companies,the 2nd highest per capitain the US.

LOCATION OVERVIEW: MINNESOTA

The State of Minnesota is the 12th largest statein the United States and has a population ofapproximately 5,500,000 people. Minnesota is aleader in industry, education, and healthcareand its residents are among the best educatedand wealthiest in the nation. Minnesota hasbeen ranked among the top 10 states ineducation, technology and innovation, qualityof life, infrastructure, and economy. Itsstandard of living index is among the highest inthe United States and there are many reasonswhy Minnesota is considered one of the bestplaces to live, work and do business.

Minnesota’s strong economy can be attributedto a diverse collection of industries includingbiotechnology, manufacturing, cleantechnology, data centers, mining and renewableenergy. Minnesota has one of the strongestlife-science, biotechnology and healthtechnology clusters in the world whichgenerates billions of dollars in revenue eachyear.

Some of the world’s most well-knowncompanies have headquarters or majoroperations here including: Medtronic, BostonScientific, 3M, Honeywell, Target, Best Buy,Cargill and several more. In 2015, CNBCnamed Minnesota “America’s Top State forBusiness”. Minnesota is home to 17 Fortune500 companies, the 2nd highest per capita inthe nation. Since July of 2014, Minnesota hasmaintained an unemployment rate below 4.0%.As of March 2016, unemployment is at 3.7%,well below the current national unemploymentrate.

Minnesota’s educational system is top notch.Minnesota is home to nearly 200 public andprivate post-secondary institutions and theMinnesota State Colleges and Universitiesserve 250,000 students each year. Six ofMinnesota’s private colleges and universitiesrank among the nation’s top 100 liberal artscolleges, according to US News and WorldReport.



LOCATION INFORMATION | Minnesota

In addition to beautiful lakes and scenery, Minnesota is hometo 76 state parks, 13 state trails and 62 state forestcampgrounds. The people of Minnesota enjoy hiking, fishing,boating, outdoor recreation and endless cultural events andactivities. Minnesota is home to an internationally known artscommunity and has more theaters per capita than anywhereelse besides New York. In 2015, Politico Magazine namedMinnesota the “Best State in the Nation” based on 14 differentcriteria such as income, unemployment, education, well-beingand life expectancy.

With a strong economy, a superb educational system, highaccess to quality healthcare, and an exceptional quality of life,it is clear that its residents are proud to call Minnesota home.

Top medical facilities and a strong emphasis on access tohealth care make Minnesota a leader in the nation forhealthcare services. Minnesota’s own “Medical Alley” consistsof over 8,000 medical companies that line a 350 mile stretchthat begins in Rochester and extends up to northernMinnesota. US News and World Report ranked several of ourhospitals among its Best Hospitals of 2013. These included: St.Johns Hospital, Abbott Northwestern and the University ofMinnesota Medical Center. The Mayo Clinic in Rochester,one of the top institutions in the world, was also named onthis list.

Minnesota residents consistently score high on quality of lifeand standard of living indexes. With over 11,000 lakes,Minnesotans love to explore their spectacular surroundings.



LOCATION INFORMATION | Twin Cities

In 2013, the Bureau of Labor Statistics listed Minneapolis-St.Paul as having the lowest unemployment of large metro areasand Monster.com ranks Minneapolis-St. Paul number 4 in thenation for career advancement. With a median age of 36.3years and a highly educated workforce, the Twin Citieseconomy will continue to be strong for years to come.

Travel and Leisure has named Minneapolis-St. Paul as the“most intelligent city” in the United States. Approximately52% of the MSP population has an associate degree or higher.Education is highly valued and educational opportunities areplentiful. There are 39 colleges and universities in the metroarea alone, the largest being the University of Minnesota with41,000 undergraduate students and approximately 14,000graduate students. There are numerous public and privateinstitutions, offering a wide variety of experiences.

Minnesota’s public schools system is one of the topeducational systems in the nation. In 2007, Minnesotastudents earned the highest average score in the nation on theACT exam. There are 48 public school districts represented inthe Twin Cities area alone. There are also more than 200private school options in the Minneapolis-St. Paul area.

LOCATION OVERVIEW:

TWIN CITIES The Minneapolis-St. Paul area, referred tocommonly as the Twin Cities, is an 11 county region thatspans approximately 64 miles east to west. Of Minnesota’s 5.5million people, nearly 60% (about 3.8 million) live in theMinneapolis-St. Paul metro area. It is the geographic center ofthe Upper Midwest and is the 2nd largest economic center inthe Midwest, behind Chicago. With a robust economy, atop-notch educational system, a high quality of life andendless cultural and recreational opportunities, theMinneapolis-St. Paul metro area is renowned for being ahighly desirable place to live.

The Minneapolis-St Paul area is a major commercial centerlocated between the east and west coasts. The metro area has16 of Minnesota’s 17 Fortune 500 corporations. Many foreigncompanies have their US headquarters based in theMinneapolis-St Paul area as well. These include Medtronic,Allianz, Canadian Pacific, Pentair and RBC. The Twin Citiesmetro is also the 2nd largest medical device manufacturecenter in North America. Around 90% of all major industriesare represented in the Twin Cities, making it one of the mostdiverse economies in the nation. The Twin Cities area’s laborforce has grown by 2% over the last 5 years (almost twice thenational average) and is expected to grow by 5.6% until 2030.



LOCATION INFORMATION | Twin Cities

The American College of Sports Medicine has named the TwinCities as the healthiest, fittest city in America. Men’s Health alsonamed Minneapolis-St. Paul as one of the nation’s most activecities.

The metro area is home to the Minnesota Vikings (NFL),Timberwolves (NBA), Wild (NHL), Twins (MLB), Lynx(WNBA), and United (MLS). Besides professional sports, theUniversity of Minnesota sports teams play in the Big TenConference, offering many exciting opportunities to cheer on thecollegiate level. The St. Paul Saints also offer another option forfun as the metro’s minor league baseball team.

The Twin Cities area is considered to be the cultural capital of theMidwest. Next to New York City, Minneapolis-St. Paul has thehighest number of theater seats per capita. Over two milliontheater tickets are sold each year. In addition to theater, the metroarea is home to many fine museums, two full-time professionalorchestras, an internationally renowned opera company, andhundreds of theatrical troupes.

The Minneapolis-St.Paul area is easy to get to by air, road, or railfrom anywhere in the world. It has one of the largest publictransportation systems in the country and provides its residentswith convenient and efficient transit options. As the Twin Citiescontinues to grow, the commitment to affordable, reliabletransportation remains strong and options in transit areconstantly expanding.

Metro Transit is one of the country’s largest transit systems. Itoperates an integrated network of buses, light rail and commutertrains. Metro Transit has won numerous awards for safety andtop performance. In 2015, Metro Transit reached nearly 86million rides, its highest ever. Every day, customers utilize MetroTransit buses and trains an average of 276,000 times.

An electrically powered train system called light rail transit(LRT) connects downtown Minneapolis with theMinneapolis-St.Paul International Airport, the Mall of America,St. Paul and 43 other stations in between. Plans are underway toexpand these lines out further to the southwest metro andnorthwest metro areas.

The Minneapolis-St. Paul International Airport is the largest andbusiest airport in the upper Midwest. It serves nearly 37,000,000passengers a year. Centrally located in the metro area, the airportis just a 15-20 minute drive into Minneapolis or St. Paul.Recently, the airport was ranked third among domestic airportsin Travel and Leisure’s “World’s Best Airports” listing.

Amtrak provides service in the Twin Cities area for passengerrail service throughout the country. Union Depot, located in St.Paul serves as the hub in the Twin Cities for rail travel. TwoEmpire Builder trains operate daily offering passengers ridesthroughout the United States.

The Twin Cities area is home to nearly 950 lakes and 137,000acres of parkland providing beautiful natural surroundings.Residents are known to enjoy outdoor activities, such as hiking,fishing, swimming, golfing, biking and skiing.


1310 5th Avenue South


LOCATION INFORMATION | Regional Map



LOCATION INFORMATION | Location Maps



LOCATION INFORMATION | Aerial Map - SC

FINANCIAL ANALYSIS


Presented By:


SECTION 3


INCOME SUMMARY 2018 PROJECTED OPERATING STATEMENT - 1301 AND 1310 PER UNIT 2019 PROJECTED OPERATING STATEMENT - 610 PER UNIT

Scheduled Rental Income $73,560 $9,195 $35,760 $4,470

Less 5% Vacancy (est.) -$3,678 -$459 -$1,788 -$223

GROSS INCOME $69,882 $8,735 $33,972 $4,246

EXPENSE SUMMARY 2018 PROJECTED OPERATING STATEMENT - 1301 AND 1310 PER UNIT 2019 PROJECTED OPERATING STATEMENT - 610 PER UNIT

Property Manager (5% est.) $3,494 $436 $1,699 $212

Lawn Service / Snow Removal (2018) $2,359 $294 $555 $69

Repairs / Maintenance (5% est.) $3,494 $436 $1,699 $212

Gas / Electric (2018) - - $2,156 $269

Water / Sewer (2018) - - $1,946 $243

Real Estate Taxes (payable 2019) $6,048 $756 $2,798 $349

Property Insurance (2018) $3,468 $433 $1,594 $199

License (2018) $644 $80 $227 $28

Internet (2018) - - $811 $101

Water / Sewer / Trash (2018) $1,295 $161 - -

GROSS EXPENSES $20,802 $2,600 $13,485 $1,685

NET OPERATING INCOME $49,080 $6,135 $20,487 $2,560


FINANCIAL ANALYSIS | Income & Expenses - SC


UNITNUMBER

UNITBED

UNITBATH

CURRENTRENT

610-1 2 1 $750

610-2 2 1 $730

610-3 2 1 $750

610-4 2 1 $750

1301 4 2 $1,680

1302 4 2 $1,495

1310 4 2 $1,460

1312 4 2 $1,495

Totals/Averages $9,110


FINANCIAL ANALYSIS | Rent Roll


UNIT TYPE COUNT % TOTAL DEPOSIT

4 Bedroom 4 50.0

2 Bedroom 4 50.0

Totals / Averages 8 100% $0


FINANCIAL ANALYSIS | Unit Mix Summary

DEMOGRAPHICS


Presented By:


SECTION 4


* Demographic data derived from 2010 US Census

POPULATION 1 MILE 3 MILES 5 MILES

TOTAL POPULATION 12,831 56,531 102,042

MEDIAN AGE 23.6 29.6 31.4

MEDIAN AGE (MALE) 23.0 28.4 30.0

MEDIAN AGE (FEMALE) 24.4 31.7 33.3

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

TOTAL HOUSEHOLDS 4,252 21,401 40,355

# OF PERSONS PER HH 3.0 2.6 2.5

AVERAGE HH INCOME $43,820 $51,898 $56,005

AVERAGE HOUSE VALUE $167,319 $184,955


DEMOGRAPHICS | Demographics Map

ADVISOR BIOS


Presented By:


SECTION 5


T [email protected]

12930 32nd Avenue NorthMinneapolis, MN 55441

PHIL REESNES

Senior Associate Professional Background

Phil joined Michel Commercial Real Estate Intl. Inc. in 2002. Specializing in multifamilyhousing, Phil is a valued partner to both buyers and sellers in the acquisition anddisposition of their investment properties, citing his knowledge of the market, accurateproperty valuations, quality contacts, and trusted leadership from initial contact tosuccessful closing. Phil and his wife Lisa have three children and live in the northwesternsuburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playinggolf.

Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on sellingmultifamily housing. The brokerage company represents both private and institutionalgroups, including local owners and national investors. Michel Commercial Real Estatesuccessfully trades 1,500+ units of multifamily housing a year in the Midwest andspecializes in all types of apartments, including market rate, affordable, and studenthousing. The list of apartment projects sold ranges from 10 to 500 units.


ADVISOR BIOS | Biography 1

for sale | multifamily investment portfolio 1310 …images1.loopnet.com/d2/skneqxooe8...high school...

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