THE MODERNON MARIPOSA

M

MODERN, RENOVATED 16-UNIT COMMUNITY WITH UNPARALLELED FINISHES501 & 511 E. MARIPOSA STREET | PHOENIX, AZ | 85012

Licensed as Newmark Knight Frank Multifamily in Arizona

MODERN HOME QUALITY INTERIOR IMPROVEMENTS & AMENITIESThe Modern on Mariposa was fully renovated in 2019 with nearly $800,000 in quality capital improvements to the unit interiors and exteriors, greatly enhancing the resident living experience. Cosmetic interior improvements include new modern shaker cabinets, new stainless steel appliances including dishwashers, granite countertops, modern wood plank flooring, 4” baseboards, modern sliding barn doors, modern mosaic decorative tile backsplashes, square subway tile shower surrounds, pedestal sinks, elegant Edison bulb lighting, oil rubbed bronze plumbing, IN UNIT washer & dryers, tank-less water heaters, lighting fixtures and modern dual draft ceiling fans.

SIGNIFICANT EXTERIOR CAPITAL IMPROVEMENTS The Modern on Mariposa was fully renovated in 2019 with nearly $800,000 in quality capital improvements to the unit interiors and exteriors, mitigating forward-looking expenses for new ownership. Significant exterior capital improvements include all new electric, new plumbing, new dual pane windows with modern black trim, modern iron entry gates, modern iron patio gates, new front and rear patios with concrete pads and pavers, elegant Edison bulb light fixtures, solar powered lighting, full exterior two tone paint, new landscaping including modern fountains, artificial turf, new parking lot and new covered parking structure.

ATTRACTIVE LOW-MAINTENANCE LANDSCAPINGOwnership installed low-maintenance desert landscaping throughout the community with native desert rock, trees, cactus and flowering bushes throughout. Ownership also installed new concrete walkway paths and decorative paver lined community grass areas along with artificial turf, barbeques and multiple fountains for residents to relax and enjoy the oversized community courtyard.

INCREDIBLE UPTOWN LOCATION NEAR CAMELBACK AND CENTRALThe Modern on Mariposa is located just southeast of Central and Camelback, which was named the “hottest Intersection in Metro Phoenix” by the Urban Land Institute. This vibrant infill location is embedded within an area experiencing hundreds of millions of dollars of gentrification efforts and a residential revival that has led to a sharp increase in rental demand, rental rates and property values.

ICONIC UPTOWN PLAZA & NEIGHBORHOOD HOTSPOTS A SHORT 5 MINUTE WALKJust to the West of The Modern on Mariposa lies the iconic Uptown Plaza at Central/Camelback. Built in 1955 and artfully restored in 2016 with wall-to-wall renovation dedicated to restoring this Mid-Century Modern gem to its former glory. The restored Uptown Plaza once again serves as a bustling, brick-lined heartbeat for all of North-Central Phoenix and features the same vibrant mix of local, regional, and national tenants that helped make this development such a success in previous decades. Those popular tenants include the grocery anchor AJ’s Fine Foods, Flower Child, Lou Malnati’s, Shake Shack, Creamistry and Huss Brewing. Other neighborhood hotspots include Postino’s Central, Joyride Taco, Federal Pizza, Windsor, Churn, and Dutch Bros.

W. CAMELBACK RD

W. CAMELBACK RD

CENTRAL LIGHTRAIL

STATION

LIGHT RAIL STATION A SHORT 5 MINUTE WALKThe Light Rail Station at Camelback & Central provides a tremendous benefit to residents traveling to the Central Office Corridor, Downtown Phoenix, Sky Harbor International Airport, Downtown Mesa and Tempe for work, school, and entertainment. Light rail serves as an important link between communities and stimulates economic growth and revitalization along its path and around each stop station. Over 14 million riders use this transportation, making it one of the busiest light rails in the country.

ADJACENT TO THE CENTRAL & CAMELBACK CORRIDOR’SThe Modern on Mariposa is ideally situated in between both the Central and Camelback Corridor, just a 5-minute commute to each. These employment centers host the dynamic mix of premier office, high-end retail and hospitality development serving as a focal points for business and entertainment activity in Phoenix, which attracts more than 250,000 professionals and highly educated workers while boasting some of the highest office rents in Metro Phoenix.

IDEAL LOCATION & AMENITIES FOR AIRBNB OPPORTUNITYWith it’s “A” location near Camelback & Central, this neighborhood is in high demand for short-term rentals. With upgraded modern unit interiors, The Modern on Mariposa could attract nightly rates over $200 in the winter months and $100 in the summer months. Investors of well-located, highly amenitized properties are realizing significant bumps to their NOI via short-term rental operations while enjoying a truly “hands-off” ownership experience. The listing agents have extensive working relationships with several local and national companies that provide long term master leases with guaranteed fixed monthly rents, cover all property and operating expenses(outside of major mechanicals) and handle all day-to-day management duties. The net result of this arrangement leads to higher returns and less involvement for the owner.

ADJACENT TO ARIZONA’S PREMIER COLLEGE PREPARATORY CAMPUSES

The Modern on Mariposa is located directly north of Brophy(boys) and Xavier(girls) campus. These are the most acclaimed and premier College Preparatory campuses in the State of Arizona. The 2 adjacent campuses are spread over 55 acres that include historic buildings and state of the art academic and athletic facilities that rival most major universities.

BROPHY COLLEGE PREPARATORY

DOWNTOWN PHOENIX

XAVIER COLLEGE PREPARATORY

LIGHTRAIL

STATION

Camelback Corridor Business District

5 minute drive

PROPERTY DETAILS

ADDRESS: 501 & 511 E. Mariposa StreetPhoenix, AZ 85012

NUMBER OF UNITS: 16

YEAR BUILT: 1950 / 2019

RENTABLE AREA: 12,100 square feet

AVG. UNIT SIZE: 756 square feet

AVG. PROFORMA RENT: $1,470

AVG. PROFORMA RENT/SF: $1.94

THE MODERN ON MARIPOSA16 Units • 12,100 net rentable sq. ft.

PRICE: $3,995,000 PRICE PER UNIT: $249,688 TERMS: New Financing PRICE PER SQ FT: $330.17PROFORMA CAP RATE: 5.73%

Market Underwriting AnalysisThe Modern at Mariposa

INCOME AssumptionsGross Scheduled Rent $282,240Gross Potential Income $282,240

Less: Vacancy (3.0%) (8,467)Total Rental Income 97.00% $273,773

Plus: Other Income 350 5,600

Effective Gross Income $279,373

EXPENSES per unit

Repairs & Maintenance $300 $4,800Payroll 400 6,400Administrative/Advertising 100 1,600Utilities 700 11,200Total Variable Expenses $1,500 $24,000Taxes 332 5,317Insurance 262 4,200Management Fee 5.00% 13,689Total Operating Expenses $2,950 $47,206Plus: Capital Reserves 200 3,200Total Expenses $3,150 $50,406

NET OPERATING INCOME $228,967

Debt ServiceNew Financing - $2,596,750 (65% LTV)Debt Service (3.5% P & I)Cash Flow After Debt Service (6.37%) $89,041

Proforma

$139,926

UNDERWRITING ANALYSIS

UNIT TYPE NO. OF UNITS SQ FT PROFORMA

RENT/MOPROFORMA

RENT/SF

2 BED / 1 BATH(STANDARD 2’S) 8 725 $1,445 $1.99

2 BED / 1 BATH(LARGE FRONTYARD) 2 825 $1,445 $1.75

2 BED / 1 BATH (LARGE 2’S) 2 875 $1,445 $1.59

2 BED / 1 BATH(CASITA BACKYARD) 4 725 $1,545 $2.06

TOTAL / AVG. 16 756 $1,470 $1.94

CAMELBACK COLONNADECAMELBACK COLONNADE

MODERN, RENOVATED 16-UNIT COMMUNITY WITH UNPARALLELED FINISHES501 & 511 E. MARIPOSA STREET | PHOENIX, AZ | 850122398 E. Camelback Road

Suite 950Phoenix, AZ 85016T 602-252-4232

RYAN ASHSenior Managing DirectorT 602-852-3784

C 602-525-4877

ryan.ash@ngkf.com

MIKE WOODRICKDirectorT 602-852-3789

C 480-540-1504

mike.woodrick@ngkf.com Licensed as Newmark Knight Frank Multifamily in Arizona