morgan apartments - loopnet · 2017-02-17 · morgan apartments consists of three parcels plus a...

LAKE WALES, FL

Morgan Apartments

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

LAKE WALES, FL

Morgan Apartments

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PROPERTY DESCRIPTION

Section 2 RECENT SALES

Section 3 PRICING AND FINANCIAL ANALYSIS

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Morgan Apartments

Morgan ApartmentsLAKE WALES, FL

PROPERTY DESCRIPTION

Morgan Apartments consists of three parcels plus a parcel of vacant land located off of North Scenic Highway in Lake Wales. The first parcel is located at 3531 North Scenic Highway, Lake Wales, Florida and contains 13-units consisting of nine, studio units; one, one-bedroom/one-bathroom unit and three two-bedroom/one-bathroom units in which one of the units is occupied by the Property Manager. The second parcel is located at 3553 U.S. Highway 17, Lake Wales, FL and contains four-units consisting of three, one-bedroom/one-bathroom units and one, two-bedroom/one-bathroom unit. The third parcel is located at 25 Froden Road, Lake Wales, FL and consists of one, two-bedroom/one-bathroom, single-family home. Finally, there is a parcel of vacant land included with Morgan Apartments. All of the properties are contiguous of each other.

Morgan Apartments have frontage to North Scenic Highway and has an average daily traffic count of 7,300 vehicles. The properties are also conveniently located approximately one-and-one-half miles to U.S. Highway 27, a primary north/south thoroughfare which houses large retail centers, office buildings, restaurants and other commercial properties. U.S. Highway 27 connects residents as far south as Miami and as far north as the Florida panhandle. Nearby, residents are furnished with two major hospitals, the Regency Center for Women and Infants and the Winter Haven Hospital. The central location of all of the properties provides quick access to entertainment destinations such as LEGOLAND, Chain O' Lakes Convention Center, Cypress Gardens Botanical Park and numerous golf courses and country clubs.

Investment Highlights

■ 18-Unit, Multiple Parcel Apartment Community in LakeWales, Florida

■ Minutes from LEGOLAND Theme Park and MajorEmployers

■ Very Strong Day One Return of 8.82 Percent Cap Rate

■ Central HVAC

■ Concrete Block Construction

■ Priced Well Under Replacement Cost

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PROPERTY DESCRIPTIONMorgan ApartmentsLAKE WALES, FL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Florida © 2017 Marcus &Millichap. All rights reserved.

INVESTMENT OVERVIEW

Lake Wales is experiencing a significant uptick in new commercial development along U.S. Highway 27. ATR Advance Technological Radiology, P.A. (formerly AT Radiology), has replaced a limited-services medical imaging center in Lake Wales with a new full-service center, utilizing state-of-the art equipment, near Eagle Ridge Mall. The center opened in September in sizeable leased space that once included a RadioShack store in the Shoppes on the Ridge (Publix) complex on the northeast corner of U.S. 27 and Chalet Suzanne Road. ATR now has three full-service imaging centers in Polk County; the others are in Winter Haven and Davenport. The ATR location at Shoppes on the Ridge is among four medical facilities that have opened in Lake Wales recently. The newest is Central Florida Health Care, which just enjoyed a ribbon-cutting ceremony at its multi-services medical center at 305 West Central Avenue.

Opposite Shoppes on the Ridge, on a two-acre mall outparcel on the southeast corner of U.S. Highway 27 and Chalet Suzanne Road, plans call for the construction of a new Wawa super convenience store and auto fueling station. The 5,537-square foot store was approved by the Lake Wales City Commission in July 2012 and now awaits approval by the Florida Department of Transportation. Also awaiting FDOT approval are plans for the construction of a large new Love’s Truck Stop along U.S. 27 south of State Road 60, across from Longleaf Business Park. The truck stop has the potential to create about 70 new jobs for Lake Wales. That’s the number of jobs that were filled when Love’s opened a new truck stop in April near the intersection of U.S. Highway 27 and Deen Still Road in Davenport.

Construction is just about complete at the site of a new AutoZone retail store. The location is near Batteries Plus, off U.S. Highway 27 and across the highway from Publix and Shoppes on the Ridge. The new auto parts store will be the second AutoZone for Lake Wales; the other one is on U.S. Highway 60 West.

Finally, one of Lake Wales newest treasures can be found where Timberlane and Masterpiece roads meet on the southwest shore of Lake Pierce. It’s the new Capernaum Lakeside Lodge and Conference Center. The lodge opened to the public on June 30 of this year after completion of an extensive renovation project on a stately two-story structure that was built in 1925 and first used as a hotel. The 14,077-square foot lodge, built in Mediterranean style on a 10 acre of lush pasture land with a rich and interesting history. The lodge features 12 sleeping rooms, a banquet hall for meetings and events, a magnificent view of Lake Pierce, a boat dock and abundant outdoor space for large events.

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PROPERTY DESCRIPTIONMorgan ApartmentsLAKE WALES, FLPublix Headquarters, Lakeland, FL


Wawa Super Convenience Store

NEW DEVELOPMENT

Employers/Economic Drivers

The backbone of Polk County’s local economy is supported by a workforce of over 275,000, large tourism industries, phosphate mining and agriculture. Additionally, six higher education campuses - Polk State College, Southeastern University, Florida Southern College, Florida Polytechnic University, Warner University and Webber International University - all call Polk County their home. Lakeland, the largest city on Interstate 4 between Tampa and Orlando, has had a major economic shift in the past few years as the basis of its local economy has moved from predominately citrus, cattle and phosphate mining into a greater dependence on tourism, medicine, insurance, and transportation. However, phosphate production is still an integral part of Lakeland’s local economy as it produces 25 percent of the United States phosphate supply.

Major Fortune 500 company headquarters like FedEx and Publix Super Markets have established routes in the area and greatly contribute to local employment numbers as well. In fact, Publix is Lakeland’s largest employer, employing more than 10,000 people including headquarter and warehouse employees. Lakeland, with its prime location on Interstate 4, is also considered a major transportation hub. Winter Haven, the second largest city in Polk County, is known as the birth place of the Publix Super Market chain, which has since expanded from one store to more than one thousand stores nationwide. It is also a well- known water skiing hub as it has been instrumental in the development and growth of popularizing the sport via the opening of the former “Water Ski Capital of the World”, Cypress Gardens by world renown water skier Dick Pope, Sr. in 1936. Cypress Gardens, located nearby LEGOLAND, is a mixed-use park featuring beautiful botanical gardens and a large water ski area which has hosted a variety of competitions, sporting events and concerts by famous legends such as Johnny Carson. Located throughout Winter Haven are also several well-respected ski schools for both water and barefoot skiing, which are open to the public year-round.

3



Lakeland Regional Health MOSAIC Fertilizer

AREA OVERVIEW

POLK COUNTY TOP 10 EMPLOYERS # OF EMPLOYEES

Publix Supermarkets 10,249

Walmart 6,238

Polk County School Board 6,210

Lakeland Regional Health 4,499

Winter Haven Hospital 2,567

City of Lakeland 2,359

GEICO 2,139

MOSAIC Fertilizer 1,993

Watson Clinic 1,600

Polk County Sheriff's Office 1,500

4



Publix Headquarters, Lakeland, FL

AREA OVERVIEW

Education

Polk State College (Winter Haven Campus) - 12.6 Miles from Subject

Located in Winter Haven, formerly named Polk Community College, Polk State College changed its name in 2009 when it began offering students Bachelor’s degree programs. Currently, there are approximately 25,000 enrolled students, accommodated by an academic staff of approximately 1,200. Polk State offers an array of degree programs from sciences to arts.

Florida Southern College - 26.6 Miles from Subject

Florida Southern College is considered one of the top private universities in the South and was ranked second best in the U.S. News Regional College South Rankings. The Princeton Review has also ranked Florida Southern’s campus as the most beautiful campus in the country. The university currently has a total student enrollment of nearly 2,500 and employs nearly 110 academic staff.

Florida Polytechnic University - 26.9 Miles from Subject

Florida Polytechnic University (FPU) recently opened for classes on August 16, 2014 and is a public university, which focuses its academic teachings in the fields of science, technology, engineering and math (STEM). The university has approximately 924 currently enrolled students and plans to be accredited in December 2017.

Additional four-year institutions within commuting distance include Bethune-Cookman, Keiser College, the University of South Florida, Webber International University, Warner Southern College, Webster University, the University of Central Florida and the University of Tampa. Two technical schools, Ridge Technical Center and Travis Technical Center, are also

nearby.

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Polk State College Florida Southern

AREA OVERVIEW

Medical

Lake Wales Medical Center - 5.6 Miles from Subject

A 160-bed facility providing inpatient, outpatient, medical, surgical and emergency care. The facility offers an American College of Radiology-accredited 64-slice CT scanner and digital mammography program.

Winter Haven Hospital - 13.1 Miles from Subject

Winter Haven Hospital and Winter Haven Women’s Hospital are part of the not-for-profit BayCare Health System. Located centrally between Orlando and Tampa in Winter Haven, Florida, the main hospital is a 468-bed acute facility and the Women’s Hospital is a 61-bed facility catering to the unique medical needs of women and infants. We offer state-of-the-art patient care, cutting-edge technology and equipment and a superior staff.

Lakeland Regional Medical Center - 26.5 Miles from Subject

Its 849-bed Medical Center is the fifth largest hospital in the state of Florida and also operates the busiest single-site Emergency Department in the state.

6


Lake Wales Medical Center


Winter Haven Hospital

AREA OVERVIEW

Retail

Eagle Ridge Mall - 2.3 Miles from Subject

Eagle Ridge Mall is a regional, enclosed shopping mall with 624,579-square feet of retail space located on the north side of Lake Wales, Florida. This mall has three anchor stores: Dillard’s, JCPenney and Sears. It also has a Regal Cinema, which has twelve theatres, and a large entertainment center, which contains a bowling alley, a large video arcade, a restaurant and meeting rooms. On the north side of the mall is a large food court and a carousel. Sears relocated from an existing mall, Winter Haven Mall, in nearby Winter Haven.

Spook Hill - 3.4 Miles from Subject

Gravity-defying, Spook Hill, is one of Florida’s most unique roadside American attractions. Each year visitors from far and wide are drawn to the unique roadside attraction where cars appear to roll up the hill backwards. Centrally located in Lake Wales, Florida, Spook Hill’s unique history has been recorded from eye-witness accounts spanning multiple generations.

Downtown Lake Wales - 3.7 Miles from Subject

The downtown area features smaller shops and businesses in a historic setting. This quaint collection of specialty shops emphasizes highest quality and attentive personal service. With a charming atmosphere all its own, this Main Street District is ready to satisfy the most discriminating of tastes in a wide variety of areas. It's also the place for a leisurely stroll while enjoying the 1920s architecture.

Historic Downtown Lake Wales

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PROPERTY DESCRIPTION

Bok Tower



AREA OVERVIEW

Retail

Bok Tower - 4.5 Miles from Subject

Bok Tower Gardens (also known as Bok Mountain Lake Sanctuary and Singing Tower) is a National Historic Landmark, contemplative garden and bird sanctuary located north of Lake Wales. It consists of a 250-acre garden, the 205-foot tall Singing Tower with its carillon bells, Pine Ridge Trail, Pinewood Estate and a visitor center. The tower is built upon Iron Mountain, one of the highest points of peninsular Florida, estimated to be 295 feet above sea level. It is a National Historic Landmark that is listed on the National Register of Historic Places.

LEGOLAND - 8.0 Miles from Subject

LEGOLAND, located nearby in Winter Haven, is a 145-acre theme park, which was originally restored from Cypress Gardens. The park preserved the original botanical garden and transformed the location into a thriving Lego-themed park. The design is family-friendly, targeting families with children ages 2-12 years old. LEGOLAND features more than 45 rides, a variety of shows, attractions, restaurants, and shopping. Approximately 1,000 local jobs were created by the opening of LEGOLAND in 2011.

Cypress Gardens Botanical Gardens at LEGOLAND - 8.5 Miles from Subject

The beautiful and historic botanical gardens have been restored to pristine condition, and the collection of native plants, including azaleas and camellias, have been reclaimed and combined with a range of exotic species to create a horticultural masterpiece. Still standing sentinel in the garden is the vast Banyan tree that was planted as a seedling in 1939. It is best

known for its water ski shows, gardens and Southern Belles.

LEGOLAND

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Cypress Gardens Botanical Gardens



AREA OVERVIEW

Retail

Country Club of Winter Haven - 9.8 Miles from Subject

In 1923, the founding members, seeking a place of natural beauty, and a congenial way of life, had no way of knowing that their new association was to eventually become Central Florida’s most prestigious and historic private country club. The Golf course is an 18-hole, 7,021 yard Reese Jones and Bill Bergin designed course. This club offers its members a variety of golf, tennis, fitness facilities, swimming pools and premier dining.

Chain O’ Lakes Complex - 11.1 Miles from Subject

The Chain O’ Lakes Complex features fitness and creative arts programs, including classes for taekwondo, boxing fitness, guitar, yoga and belly dance. Several rooms are available to rent for seminars, wedding receptions, birthday parties, banquets, trade shows and much more.

Flyboard Central Florida - 15.3 Miles from Subject

Located on the northernmost lakes of the Chain of Lakes in Winter Haven, FL, Flyboard Central Florida offers world class instruction for anybody looking to experience the thrills of flyboarding. Whether a first timer just looking to check it off the bucket list or an advanced flyer looking to try a hand at back flipping and dolphin diving, Flyboard Central Florida can give the best instruction in the industry. A day at Flyboard Central Florida can be spent flyboarding, waterskiing, stand up paddleboarding, lounging on the beach, playing volleyball, sunbathing and generally enjoying the lake life and Florida sun.

The Country Club of Winter Haven Joker Marchant Stadium

9



AREA OVERVIEW

Retail

Joker Marchant Stadium - 27.9 Miles from Subject

Joker Marchant Stadium hosts Spring Training for the MLB’s Detroit Tigers and is a permanent home to the Lakeland Flying Tigers minor league baseball team. It was recently renovated in 2003 and can comfortably house a maximum capacity of 8,500 guests. The Detroit Tigers’ Spring Training in Lakeland contributes approximately $45 million in local economic impact per season, according to the Florida Sports Foundation. In 2013, the Tigers’ Spring Training set an all-time attendance record, revenue, and food concession record at the Stadium. In addition to the Detroit Tigers’ annual revenue, the home-based Lakeland Flying Tigers minor league team contributes an additional $18 million dollars to the local economy.

Lakeland Park Center - 29.3 Miles from Subject

The Lakeland Park Center is a brand-new retail shopping center, located directly off of Interstate 4 in Lakeland. Major tenants include Dick’s Sporting Goods, Ross Dress for Less, PetSmart, Old Navy, ULTA Beauty, Shoe Carnival, Floor and Décor, Dress Barn, Lane Bryant and America’s Best. Additionally, the center houses a local owned nail salon.

Streamsong Resort - 43.6 Miles from Subject

Renowned golf architects Bill Coore and Ben Crenshaw of Coore & Crenshaw and Tom Doak of Renaissance Golf Design, worked side by side simultaneously to create two extraordinary 18-hole golf masterpieces. The Acquapietra Spa is an opulent retreat providing unparalleled spa and lifestyle programs that will exceed expectations, AcquaPietra features eight indoor treatment rooms and six unique pool experiences, as well as a hair and nail salon. The resort also offers meetings and events coordination along with the ultimate wedding experience.

Lakeland Park Center Streamsong Resort

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AREA OVERVIEW

11This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age areapproximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Florida © 2017 Marcus &Millichap. All rights reserved.

Morgan ApartmentsLAKE WALES, FL PROPERTY DESCRIPTION

LOCAL DESTINATIONS



LOCAL DESTINATIONS MAP

The Offering

Property Morgan Apartments

Property Address 3531 Scenic Highway NorthLake Wales, FL 33898

Site Description

Number of Units 18Number of Buildings Five

Number of Stories One

Year Built/Renovated 1953 / 1989Rentable Square Feet 7,000Lot Size 1.61Type of Ownership Fee Simple

Utilities

Water/Sewer Paid by Owner

Electric Paid by Owner

Trash Collection Paid by Owner

Construction

Foundation Slab on Grade

Framing Concrete Block

Exterior Paint Concrete Block and Brick Face

Roof Pitched Composition Shingle

Mechanical

HVAC Central HVAC

13



PROPERTY SUMMARY

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

17



PROPERTY PHOTOS

18



PROPERTY PHOTOS

Local Map Regional Map

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AREA MAPS



AERIAL - BIRDSEYE



AERIAL - RETAIL


RECENT SALES

Average Price per Square Foot

Average Price per Unit

0.00

10.00

20.00

30.00

40.00

50.00

60.00

BonnycrestApartments

401DomarisAvenue

28352nd

Avenue

LakeDomaris

Apartments

405WestMyrtleStreet

ParkviewCottages

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

BonnycrestApartments

401DomarisAvenue

28352nd

Avenue

LakeDomaris

Apartments

405WestMyrtleStreet

ParkviewCottages

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RECENT SALESMorgan ApartmentsLAKE WALES, FL


PRICE PER SF AND PRICE PER UNIT

1)2)3)4)5)6)

Morgan ApartmentsBonnycrest Apartments401 Domaris Avenue2835 2nd AvenueLake Domaris Apartments405 West Myrtle StreetParkview Cottages

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RECENT SALES MAP

No. of Units: 12 Units Unit Type

Year Built: 1980 7 1 Bdr 1 Bath

Sale Price: $538,000 5 2 Bdr 1 Bath

Price/Unit: $44,833

Price/SF: $50.60

401 Domaris AvenueLake Wales, FL 33853




Price/Unit: $36,818

Price/SF: $46.78

CommentsThis was a conventional real estate transaction in which the buyer received 70 percent loan-to-value financing.

Close of Escrow: August 2016

Close of Escrow: August 2016

Bonnycrest Apartments1350 Lake Bonny Drive WestLakeland, FL 33801

Close of Escrow: November 2015

CommentsThis was a conventional real estate transaction in which the buyer received 75 percent loan-to-value financing.



Sale Price: $970,000

Price/Unit: $40,417

Price/SF: $47.55

2

32835 2nd AvenueMulberry, FL 33860

25


CommentsThis was a conventional real estate transaction.


1

RECENT SALES

Close of Escrow: April 2016


Year Built: 1953 11 Studio

Sale Price: $495,000

Price/Unit: $45,000

Price/SF: $55.86




Sale Price: $505,000 4 2 Bdr 1.5 Bath

Price/Unit: $42,083 4 2 Bdr 2 Bath

Price/SF: $33.41

Lake Domaris Apartments410 Domaris Avenue

Lake Wales, FL 33853

405 West Myrtle StreetLakeland, FL 33815

Parkview Cottages529 East Orange StreetLakeland, FL 33801



Year Built: 1973 6 Studio


Price/Unit: $36,667

Price/SF: $29.32


Close of Escrow: December 2015

Close of Escrow: January 2016

4

5

6

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RECENT SALES


PRICING AND FINANCIAL ANALYSIS

Price $550,000Down Payment 30% / $165,000

Price/Unit $30,556

Price/SF $78.57

Number of Units 18

Rentable Square Feet 7,000

Number of Buildings Five

Number of Stories One

Year Built/Renovated 1953 / 1989

Lot Size 1.61

Vital DataCAP Rate - Current 8.82%

GRM - Current 3.81

Net Operating Income - Current $48,488

Net Cash Flow After Debt Service - Current 13.0% / $21,480

Total Return - Current 17.8% / $29,418

CAP Rate - Pro Forma 11.31%

GRM - Pro Forma 3.65

Net Operating Income - Pro Forma $62,207

Net Cash Flow After Debt Service - Pro Forma 19.2% / $31,717

Total Return - Pro Forma 26.2% / $43,218

Unit MixNo. ofUnits

UnitType

Approx.Square Feet

9 Studio 300

4 1 Bdr 1 Bath 300

4 2 Bdr 1 Bath 600

1 House 700

18 Total 7,000

Demographics

28

PRICING AND FINANCIAL ANALYSISMorgan ApartmentsLAKE WALES, FL

1-Mile 3-Mile 5-Mile

2012 Population

2017 Population

2012 Households

2017 Households

Median HH Income

Per Capita Income

Average HH Income


OFFERING SUMMARY

Existing Financing

Loan Type Free and Clear

Proposed Financing

First Trust Deed

Loan Amount $385,000

Loan Type Proposed New

Interest Rate 5.0%

Amortization 25 Years

Debt Coverage Ratio 1.80

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FINANCING

Studio: 50%

House: 6%

2B1B: 22%

1B1B: 22%

No. ofUnits

UnitType

Approx.Square Feet

CurrentRents

Rent/SF

MonthlyIncome

Pro FormaRents

Rent/SF

MonthlyIncome

9 Studio 300 $640 $2.13 $5,760 $660 $2.20 $5,940

4 1 Bdr 1 Bath 300 $700 $2.33 $2,800 $720 $2.40 $2,880

4 2 Bdr 1 Bath 600 $760 $1.27 $3,040 $780 $1.30 $3,120

1 House 700 $823 $1.18 $823 $830 $1.19 $830

18 TOTAL 7,000 $12,423 $12,770

Unit Mix Unit Rent & Rent/SF

$0.00

$0.30

$0.60

$0.90

$1.20

$1.50

$1.80

$2.10

$2.40

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Studio 1B1B 2B1B House

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UNIT MIX

Income Current Per Unit Pro Forma Per UnitAll Units at Current Market Rent $149,076 $8,282 $153,240 $8,513

Less: Loss to Lease $4,850 $269 $2,500 $139

GROSS POTENTIAL RENT $144,226 $8,013 $150,740 $8,374

GROSS POTENTIAL INCOME $144,226 $8,013 $150,740 $8,374

Vacancy/Collection Allowance (GPR) 6.0% / $8,654 $481 6.0% / $9,044 $502

Manager Unit (GPR) 6.3% / $9,120 $507

EFFECTIVE GROSS INCOME $126,452 $7,025 $141,696 $7,872

Expenses

Real Estate Taxes $7,317 $407 $7,317 $407

Insurance $6,644 $369 $6,644 $369

Utilities $33,158 $1,842 $33,158 $1,842

Contract Services $3,600 $200 $3,600 $200

Repairs & Maintenance $9,000 $500 $9,000 $500

Marketing & Promotion $1,000 $56 $1,000 $56

Management Fee 10.0% / $12,645 $703 10.0% / $14,170 $787

General & Administrative $1,000 $56 $1,000 $56

Reserves & Replacements $3,600 $200 $3,600 $200

TOTAL EXPENSES $77,964 $4,331 $79,489 $4,416

Expenses per SF $11.14 $11.36

% of EGI 61.7% 56.1%

NET OPERATING INCOME $48,488 $2,694 $62,207 $3,456

Total Number of Units: 18

Total Rentable Area: 7,000 SF

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INCOME & EXPENSES

Income & Expense Notes:

1) Utilities: Owner pays for water, sewer, trash, and electric. The current owner bought the property with this implemented

and decided to keep it as is. *The property is individually metered for water and electric so the payment of utilities can be

changed.

No. ofUnits

UnitType

Approx.Square Feet

CurrentRents

Rent/SF

MonthlyIncome

Pro FormaRents

Rent/SF

MonthlyIncome

9 Studio 300 $640 $2.13 $5,760 $660 $2.20 $5,940

4 1 Bdr 1 Bath 300 $700 $2.33 $2,800 $720 $2.40 $2,880

4 2 Bdr 1 Bath 600 $760 $1.27 $3,040 $780 $1.30 $3,120

1 House 700 $823 $1.18 $823 $830 $1.19 $830

18 Total/Wtd. Avg. 7,000 $12,423 $12,770

FIRST TRUST DEEDLoan Amount $385,000Loan Type Proposed NewInterest Rate 5.0%

Amortization 25 Years

Annualized Operating Data

Income Current Pro FormaAll Units at Current Market Rent $149,076 $153,240

Less: Loss to Lease $4,850 $2,500

Gross Potential Rent $144,226 $150,740

Gross Potential Income $144,226 $150,740

Less: Vacancy/Deductions (GPR) 12.3% / $17,774 6.0% / $9,044

Effective Gross Income $126,452 $141,696

Less: Expenses $77,964 $79,489

Net Operating Income $48,488 $62,207Net Cash Flow Before Debt Service $48,488 $62,207

Debt Service $27,008 $30,490

Debt Coverage Ratio 1.80 2.04

Net Cash Flow After Debt Service 13.0% / $21,480 19.2% / $31,717

Principal Reduction $7,938 $11,501

Total Return 17.8% / $29,418 26.2% / $43,218

3531 Scenic Highway North

Lake Wales, FL 33898

Price $550,000

Down Payment 30% / $165,000

Number of Units 18

Price/Unit $30,556

Rentable Square Feet 7,000

Price/SF $78.57

CAP Rate - Current 8.82%

CAP Rate- Pro Forma 11.31%

GRM - Current 3.81

GRM- Pro Forma 3.65

Year Built/Renovated 1953 / 1989

Lot Size 1.61

Type of Ownership Fee Simple

Location

FinancingExpensesReal Estate Taxes $7,317 $7,317

Insurance $6,644 $6,644

Utilities $33,158 $33,158

Contract Services $3,600 $3,600

Repairs & Maintenance $9,000 $9,000

Marketing & Promotion $1,000 $1,000

Management Fee $12,645 $14,170

General & Administrative $1,000 $1,000Reserves & Replacements $3,600 $3,600

Total Expenses $77,964 $79,489

Expenses/unit $4,331 $4,416Expenses/SF $11.14 $11.36% of EGI 61.65% 56.10%

Scheduled Income

Loan information is time sensitive and subject tochange. Contact your local Marcus & MillichapCapital Corporation representative.

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FINANCIAL OVERVIEW


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 842 8,174 26,636

2010 Population 1,303 10,229 36,488

2014 Population 1,333 10,650 37,958

2019 Population 1,481 11,484 41,399

2000 Households 433 3,177 10,593

2010 Households 634 4,086 14,663

2014 Households 650 4,266 15,285

2019 Households 727 4,658 16,925

2014 Average Household Size 2.18 2.42 2.43

2014 Daytime Population 738 4,711 11,870

2000 Owner Occupied Housing Units 60.66% 58.94% 57.81%

2000 Renter Occupied Housing Units 12.89% 21.09% 22.95%

2000 Vacant 26.45% 19.97% 19.24%



2014 Vacant 17.95% 15.92% 14.38%



2019 Vacant 16.72% 14.92% 12.91%

$ 0 - $14,999 13.4% 18.8% 17.0%

$ 15,000 - $24,999 16.5% 16.4% 14.2%

$ 25,000 - $34,999 18.4% 15.9% 14.6%

$ 35,000 - $49,999 23.9% 17.8% 16.9%

$ 50,000 - $74,999 15.9% 16.6% 17.3%

$ 75,000 - $99,999 5.5% 7.4% 9.4%

$100,000 - $124,999 3.6% 3.4% 5.0%

$125,000 - $149,999 0.3% 0.8% 1.5%

$150,000 - $199,999 0.6% 0.9% 2.1%

$200,000 - $249,999 0.5% 0.5% 0.8%

$250,000 + 1.3% 1.3% 1.4%

2014 Median Household Income $35,836 $34,220 $38,095

2014 Per Capita Income $23,449 $19,266 $21,968

2014 Average Household Income $48,011 $47,817 $54,187

Demographic data © 2012 by Experian.

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DEMOGRAPHIC ANALYSISMorgan ApartmentsLAKE WALES, FL


DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 37,958. The population has changed by 42.50% since 2000. It is estimatedthat the population in your area will be 41,399 five years from now, which represents a change of 9.06% from the current year. Thecurrent population is 48.01% male and 51.98% female. The median age of the population in your area is 43.5, compare this to theEntire US average which is 37.3. The population density in your area is 483.83 people per square mile.

HouseholdsThere are currently 15,285 households in your selected geography. The number of households has changed by 44.28% since 2000.It is estimated that the number of households in your area will be 16,924 five years from now, which represents a change of 10.72%from the current year. The average household size in your area is 2.42 persons.

IncomeIn 2014, the median household income for your selected geography is $38,094, compare this to the Entire US average which iscurrently $51,972. The median household income for your area has changed by 24.43% since 2000. It is estimated that the medianhousehold income in your area will be $45,400 five years from now, which represents a change of 19.17% from the current year.

The current year per capita income in your area is $21,968, compare this to the Entire US average, which is $28,599. The currentyear average household income in your area is $54,186, compare this to the Entire US average which is $74,533.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 72.39% White, 18.72% Black, 0.07% Native American and 1.71%Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 15.00% of the current yearpopulation in your selected area. Compare this to the Entire US average of 17.13%.

HousingIn 2000, there were 7,582 owner occupied housing units in your area and there were 3,010 renter occupied housing units in yourarea. The median rent at the time was $364.

Employment

In 2014, there are 11,870 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 51.75% of employees are employed in white-collar occupations in this geography, and 48.19% are employed in blue-collaroccupations. In 2014, unemployment in this area is 9.64%. In 2000, the average time traveled to work was 25.4 minutes.


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SUMMARY REPORT

The number of people employed in a given area per square mile.


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EMPLOYMENT DENSITY

LAKE WALES, FL

OFFERING MEMORANDUM

Morgan Apartments

Offices Throughout the U.S. and Canadawww.MarcusMillichap.com

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morgan apartments - loopnet · 2017-02-17 · morgan apartments consists of three parcels plus a...

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