great opportunity to acquire 24 units of mixed use …...education, beistle co, walmart, schreiber...
TRANSCRIPT
Paras Turakhia+1 (267) 666 – 0533
Email: [email protected]
Great Opportunity to acquire 24 Units of mixed use of Multifamily & Student Housing in the heart of Shippensburg, PA
Raider House Apartments20 Britton Rd | Shippensburg, PA 17257
OFFERING MEMORANDUM
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PROPERTY SHOWINGS AND OFFER PROCESS
Show ings and Tour
Interested buyers will be given the opportunity to visit the subject property after scheduling tours with Justin Verner and/or Brooks Healy.
At least 24 hours' notice is required for scheduling a tour. Showings include access to common areas and a representation of sample units.
Legal Disclaim er
We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
www.RaiderHouseApartments.com
Highlights
Rent Increase01Master Lease
Option02Mixed Tenants03
Location05
Metered Utilities04
0102
Our Rents are 30%below market rents.
The Master Leaseguarantees 95% ofleases for one year(TnC apply)
04 Water, Sewer, Electricity are individually metered in each apartment. Tenants pays all Utilities including Trash.
05 Shares the borderwith ShippensburgUniversity andlocated less than 1mile from all majorretailers03 Multifamily and
Student housing. 96%Occupied
3 BEDROOM RENT COMPARABLES BY BED
Delt a: $1,132
<
<
With transferable 10 year Warranty
Capital ImprovementsNew Roof Installed 2020
Landlords have replaced 11 HVAC units
HVAC Systems
18 Units converted to deluxe. 1 Unitconverted to the Grande. 1 Unit Convertedto the Suites
Renovated Apartments
www.RaiderHouseApartments.com
1
www.RaiderHouseApartments.com
2Value Add- Stage wise Renovations1
2
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“The Classic” The original allwhite walls no frills units. Newlandlords have almost phasedout all of these apartments.
“The Deluxe”. Converted theClassic to the Deluxe. Byupgrading fittings, lightings andhigh-quality paints. Cost$1000/Unit.
The Grande. Convert anyDeluxe Unit to a Grande. Byupgrading appliances,refinishing kitchen andupgrading bathroom. Cost$5000. Increase Rents 15% andachieve ROI of 35%-30%
“The Suites” Convert andDeluxe or Grande into “TheSuites”. Achieve ROI ofadditional 20%-30% onRenovation cost with increasedrents.
" The Deluxe"
"The Grande"
"The Suites"
INVESTMENT SUMMARY
# OF UNITS GROSS BUILDING SIZE
24 20,400 SF
4
4/20-4/22
- Shippensburg has an enrollment over 6,000 students within 150+ different graduate and undergraduate programs- Under a 10 min walk to campus- Major employers: Volvo Construction Equipment, Procter & Gamble Northeast Mixing Center, State System of Higher
Education, Beistle Co, Walmart, Schreiber Foods,and JLG Industries Inc- Many local restaurants, bars, and student attractions. Anchor retailers include: Walmart, ALDI, Giant, and Weis Markets- Easy access to the Blue Line of the Raider Regional Transit- In close proximity to I-81, and US Rt. 11
Cent rally Locat ed St udent Housing Asset Wit hin Walk ing Dist ance t o Shippensburg Universit y
Many Recent Capit al Im provem ent s and Unit Renovat ions
- Deluxe units have received updated painting scheme - New roofs, including extended warrenties, on both buildings in 2020- 11 New HVAC units have been replaced in prior 3 years
Value Add Pot ent ial Wit hin a Recent ly Renovat ed Proper t y
- Enhancing kitchens and bathrooms in remaining deluxe units can lead to 12% rental increases- Offering furnished units to achieve increases in rents- Implement roommate sharing technology and social media targeting towards students - Market units as all-inclusive of utilit ies at a premium
AVERAGE RENT / UNIT
$848
AUCTION DATES # OF BEDS
72
UNIT SPECIFICATIONS
9
Refr igerat or Included, Some Stainless Steel
St ove Range Included, Some Stainless Steel
Microwave Not Included
Dishwasher Not Included
Cabinet Mat er ials Wood
Count er t op Mat er ials Granite and Formica
Floor ing Mat er ials LVT and Carpet
Disposal Not Included
Washer / Dryer Included
Sources: CoStar, Real Capital Analytics
SALE PRICE
TAXES
UTILITIES
MECHANICALS
UTILITY SERVICE
POWER SERVICE
PAID BY
SERVICE PROVIDER
PROPERTY DETAILS
# Of Floors
2
Heat Electric Tenant Penelec
Cooking Electric Tenant Penelec
Hot Water Electric Tenant Penelec
Air Conditioning Electric Tenant Penelec
Lights + Plugs Electric Tenant Penelec
Water/Sewer Shippensburg Borough
Landlord, Tenant Reimburses
Shippensburg Borough
HEATING
Electric Heat Pump
PLUMBING
Updated
ACELECTRICAL
200 Amp Central
Occupancy87.5%
CONSTRUCTION
EXTERIORFRAMING ROOF
New 2020, Architectural Shingle
WINDOWS FOUNDATION
Poured Concrete
Wood
Vinyl
Brick
PARKING
Lot with 100 spaces
Year Built 1997
TAX YEAR
ASSESSED VALUE
TAX RATE TAX BILL
2020 $1,794,600 0.0151244 $27,142
2021 $1,794,600 0.0151244 $27,142
2022 $1,794,600 0.0151244 $27,142PARCEL NUMBER LOT SIZE ZONING LEAD STATUS TYPE OF OWNERSHIP
36-33-1867-099 1.81 Acres MU Lead Free Fee Simple
# Of Buildings 2
SPOTLIGHT: SHIPPENSBURG UNIVERSITY
Year Founded: 1871
Enrollm ent : 5,286 undergrad, 810 graduate
Cam pus Size: 210 acres
Program s: 100+ undergraduate programs, 50 master 's degree programs, 2 doctoral programs, 3 post-bachelor/master 's programs in 17 fields of study
Accolades: In U.S News & World Report 's 2020 rankings, ranked #27 in Top Public Schools, #100 in Regional Universities North, #138 in Top Performers on Social Mobility
Recent News: PA Governor Tom Wolf just proposesd a $204M need-based scholarship fund for students who enroll in a Pennsylvania State System of Higher Education university (includes Shippensburg).
AREA DESCRIPTION
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Shippensburg is located 40 miles south of the state capital in Cumberland County, the fastest growing county in Pennsylvania. It is centrally located within 3 hours of the East Coast?s major metropolitan areas of Washington DC, Baltimore, New York City, Philadelphia and Pittsburgh, and 40 miles Southwest of Harrisburg.
The subject property is located just blocks away from Shippensburg University of Pennsylvania, one of 14 universities of the Pennsylvania State System of Higher Education. Shippensburg University is a public institution that was founded in 1871. It has a total student enrollment of 6,096 and a 210-acre campus.
Major nearby retail includes Walmart, ALDI, Giant, and Weis Markets. Many local restaurants and bars in close proximity to
the university.Major area employers include Volvo Construction Equipment, which employs over 1000 employees representing nearly 20 nationalities working in operations, technology, sales and marketing, and customer support. Other major employers include Procter & Gamble Northeast Mixing Center (900 employees), State System of Higher Education (824 employees), Beistle Co (the world?s largest manufacturer of party goods, employs 370), Walmart with 261 employees, Schreiber Foods (150 employees), and JLG Industries Inc (employs 125). There are also 3 large business parks in the area.
Minutes to I-81, and US Rt. 11. Easy access to the blue line of the Raider Regional Transit, which provides students with free bus service to and from the University, as well as to local and regional retail establishments.
Shops on King St , 0.3 Miles
H. Ric Luhrs Per form ing Ar t s Cent er (0.7 Miles) Cum ber land Valley Rail Trail (4.8 Miles)
Volvo Const ruct ion Equipm ent (3.3 Miles) Set h Grove St adium (0.8 Miles)
AERIAL MAP
SHIPPENSBURG UNIVERSITY
RAIDER HOUSE
1
3
RAIDER HOUSE
4
65
7
8
9
2
NEARBY EMPLOYERS / RETAILERS MAP 1. Volvo Const ruct ion Equipm ent
2. Weis Market s
3. Proct er & Gam ble Nor t heast Mixing Cent er
4. St at e Syst em of Higher Educat ion
5. Walm ar t
6. Beist le Co.
7. Schreiber Foods
8. ALDI
9. Giant Food
RAIDER HOUSE
17
MAJOR AREA EMPLOYERS | SHIPPENSBURG
Com pany No. Em ployed Dist ance
Volvo Const ruct ion Equipm ent
St at e Syst em of Higher Educat ion
Walm ar t
Schreiber Foods
1,000+
JLG Indust r ies Inc.
824
370
261
150
Proct er & Gam ble Nor t heast Mixing Cent er 900
125
3.2 Miles
0.3 Miles
2.7 Miles
1.5 Miles
1.5 Miles
2.6 Miles
4.2 Miles
Beist le Co.
3 Br-1 Ba 72 24 $848 $822 $1,133
UNIT MIX
22
3 BR- 1 BA
UNIT MIX
# OF BEDS # OF UNITSUNIT TYPE AVG RENT / UNIT AVG DELUXE
AVERAGE RENT
* Per Leased Bed
AVG GRANDE & SUITE
RENT COMPARABLES: 3-BEDROOM
DEMOGRAPHICS DEMOGRAPHICS*
TOTAL POPULATION
* Demographic data derived from 2010 U.S. Census
1 Mile: 7,587
3 Miles: 16,283
5 Miles: 24,637
MEDIAN AGE
1 Mile: 24.0
3 Miles: 26.1
5 Miles: 29.2
MALE MEDIAN AGE
1 Mile: 22.6
3 Miles: 25.1
5 Miles: 28.3
FEMALE MEDIAN AGE
1 Miles: 28.3
3 Miles: 29.2
5 Miles: 31.6
TOTAL HOUSEHOLDS
1 Mile: 2,510
3 Miles: 5,254
5 Miles: 8,393
# OF PERSONS PER HH
1 Mile: 3.0
3 Miles: 3.1
5 Miles: 2.9
AVERAGE HH INCOME
1 Mile: $40,649
3 Miles: $45,521
5 Miles: $51,061
AVERAGE HOUSE VALUE
1 Mile: $137,040
3 Miles: $146,848
5 Miles: $159,370
$
25
JUSTIN [email protected]
BROOKS HEALYSenior [email protected]
TONY CASALENA, CCIMRealSite [email protected]
KATHRYN SHOFERMarketing Manager
Invest m ent Sales Sales Suppor t Services
RAIDER HOUSE
20 Britton RoadShippensburg, PA 17257