VALUE-ADD OPPORTUNITY IN VIBRANT CENTRAL PHOENIX NEIGHBORHOOD307 W. MARIPOSA AVENUE| PHOENIX, AZ | 85013

MARIPOSA

Mariposa is a pride of ownership 13 unit garden-style community located in one of the hottest neighborhoods in Central Phoenix. This vibrant infill location is embedded within an area experiencing millions of dollars in gentrification efforts and a residential revival that has led to unprecedented rental demand. A number of local hot spots have opened in the area during recent years, where buildings have undergone the adaptive reuse transformation and are now serving as neighborhood eateries and coffee shops all within a 3-5 minute walk of Mariposa. The Newton at 3rd Ave/Camelback is a mixed-use 18,000 SF redevelopment of a long-empty midcentury building that was sensitively redeveloped to its original structure and has created a modernized destination to read, eat, gather, and shop. Just to the east is the iconic Uptown Plaza at Central/Camelback which was built in 1955 and artfully restored in 2015 and combines mid-century modern charm with the irresistible mix of the best local and national retailers and restaurants. Those popular tenants include the grocery anchor AJ’s Fine Foods, Flower Child, Lou Malnati’s, Shake Shack, Creamistry, Huss Brewing. Other neighborhood hotspots that are within walking distance of Mariposa is Postino’s Central, Joyride Taco, Windsor, and Dutch Bros. Furthermore, the Central & Camelback Light Rail Station is located just a one minute walk from Mariposa providing residents with affordable transportation.

Mariposa has great frontage and curb appeal on Mariposa Street, which is in the Pierson Place Historic District and consists of charming houses on large lots. Mariposa consists of two separate buildings. The main building was built in 1960, consists of 10 units, is two story and has an attractive courtyard featuring an enclosed grass area and swimming pool and sundeck. That building offers large 1 and 2 bedroom floor plans. The second building consists of 1,200 SF single story house that fronts Mariposa Street. The historic home was built in 1944 of brick with unique Spanish accents and a Spanish tiled pitched roof and consists of 3 bedrooms and 2 bathrooms and even has a small basement. Attached to the south of the house are 2 additional units both single story as well and have a small courtyard. Both buildings are set back from a large grass area that are watered by the city irrigated canals.

Mariposa is an ideal candidate for a value-add reposition. The immediate neighborhood has seen significant re-development activity in the past several years for both single family homes and similar apartment communities that has changed the look and feel of the neighborhood. That resurgence has resulted in investors achieving significant rent increases through updating unit interiors resulting in doubling and in some cases tripling rents post renovation. Investors in the neighborhood that have updated their communities are experiencing rents of $825-$900 for 1 bedroom units and $950 to $1,100 for 2 bedroom units depending on the extent of renovation and upgrades.

Mariposa offers an investor the opportunity to purchase a boutique garden-style community with the bonus of a historic 3 bedroom house that has tremendous upside in rents and is located in the highly sought after Central Phoenix neighborhood near Camelback and Central Avenue.

THE OPPORTUNITY

PROPERTY DETAILS

ADDRESS: 307 W. Mariposa AvenuePhoenix, AZ 85013

NUMBER OF UNITS: 13

YEAR BUILT: 1968

RENTABLE AREA: 10,460 square feet

AVG. UNIT SIZE: 805 square feet

AVG. PROFORMA RENT: $919

AVG. PROFORMA RENT/SF: $1.14

MARIPOSA APARTMENTS13-Units • 10,460 net rentable sq. ft.

PRICE: $1,625,000 PRICE PER UNIT: $125,000

TERMS: New Financing PRICE PER SQ FT: $155.35

PROFORMA CAP RATE: 6.23% PROFORMA CASH-ON-CASH: 7.48%

Market Underwriting AnalysisMariposa ApartmentsPhoenix, Arizona

INCOME AssumptionsGross Scheduled Rent $143,400Gross Potential Income $143,400

Less: Vacancy (5.0%) (7,170)Total Rental Income 95.00% $136,230

Plus: Utility Income $300 $3,900Plus: Other Income 350 4,550

Effective Gross Income $144,680

EXPENSES per unit

Repairs & Maintenance $500 $6,500Payroll 200 2,600Administrative/Advertising 100 1,300Utilities 1,000 13,000Total Variable Expenses $1,800 $23,400Taxes 466 6,056Insurance 300 3,900Management Fee 5.00% 6,812Total Operating Expenses $3,090 $40,168Plus: Capital Reserves 250 3,250Total Expenses $3,340 $43,418

NET OPERATING INCOME $101,263

Debt ServiceNew Financing - $1,056,250 (65% LTV)Debt Service (3.75% P & I)Cash Flow After Debt Service (6.78%) $42,564

Proforma

$58,699

INVESTMENT HIGHLIGHTSUNDERWRITING ANALYSIS

• Vibrant Camelback and Central - A Class Location

• Pierson Place Historic District NeighborhoodGreat Frontage and Curb Appeal on Mariposa Street

• Includes a 3 Bedroom / 2 Bath 1,200 SF Historic House

• Large 1 Bedroom and 2 Bathroom Apartments Units

• Attractive Courtyard, Pool, and Large Grass Areas

• Covered Parking, Laundry & Storage Rooms

• Tremendous Upside in Rents & Value through a Reposition

• Walking Distance to the Newton, Uptown Plaza, and Popular Central Corridor Eateries

• Walking Distance to the Light Rail Station at Camelback & Central

UNIT TYPE NO. OF UNITS SQ FT PROFORMA

RENT/MOPROFORMA

RENT/SF

STUDIO 1 500 $750 $0.84

1 BED / 1 BATH 3 700 $850 $1.21

1 BED / 1 BATH 2 780 $850 $1.09

2 BED / 1 BATH 1 750 $950 $1.27

2 BED / 1 BATH 5 870 $950 $1.09

3 BED / 2 BATH HOUSE 1 1,200 $1,250 $1.04

TOTAL / AVG. 13 805 $919 $1.14 *Based on $130,000 ($10K/Unit) in Property Improvements

UPTOWN PLAZA5 MINS LIGHTRAIL STATION

4 MINS

CAMELBACK CORRIDORBROPHY & XAVIER

COLLEGE PREPARTORY

STEELE INDIAN SCHOOL PARK

MARIPOSA

W. CAMELBACK RD

ARA Phoenix2398 E. Camelback RoadSuite 950Phoenix, AZ 85016T 602-252-4232

Ryan AshSenior Managing DirectorT 602-852-3784C 602-525-4877ryan.ash@aranewmark.com

Mike WoodrickDirectorT 602-852-3789C 480-540-1504mwoodrick@aranewmark.com

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