oak cliff 2 building portfolio - loopnet

MULTIFAMILY PORTFOLIO PROPERTY FOR SALE

OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N. MARSALIS, DALLAS, TX 75203

MATTEO FAETH

[email protected]

Presented By

PERRY GUEST COMPANY

2517 Thomas Avenue, Dallas, TX 75201

214.528.9250 | management.perryguest.com

CONFIDENTIAL OFFERING MEMORANDUM | 2

OFFERING SUMMARY

Sale Price: $2,592,000

Number Of Units: 32

Cap Rate: 5.68%

NOI: $147,249

Lot Size: 0.67 Acres

Building Size: 19,088

Price / SF: $135.79

Price / Door: $81,000.00

2 building value add portfolio located in the up and coming neighborhood Oak Cliff, Dallas, TX now available for sale. Theportfolio consists of 2 buildings, 32 units, 19,088 square feet of rent-able square footage, and over half an acre of land. Thebuildings are located in the opportunity zone. This is a value add deal where you will need to renovate the exterior/interiorto increase rents. The buildings are currently all bills paid so there is an opportunity to bill back for utilities. Both propertiesare on hard corners with great exposure on Marsalis. The area is improving year after year. HEB foods purchased a largetract of land where they plan on building a Central Market. Also Centre Homes has purchased several tracts of land in thearea with the intent of building brand new apartments.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

• Value Add Properties

• Opportunity Zone

• Properties have great exposure

OAK CLIFF 2 BUILDING PORTFOLIO722 AND 800 N MARSALIS, DALLAS, TX 75203

EXECUTIVE SUMMARY


OPPORTUNITY ZONE DESCRIPTION

Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017 and designated in April of 2018.The Zones are designed to spureconomic development by providing tax benefits to investors. An Opportunity Zone is an economically-distressed area where new investments, under certainconditions, may be eligible for preferential tax treatment. Areas designated as Opportunity Zones were nominated by the state and certified by the Secretary of theU.S. Treasury via delegation authority to the Internal Revenue Service. You can read more about Opportunity Zones at the Internal Revenue Service FrequentlyAsked Questions (FAQ) page on Opportunity Zones.

OAK CLIFF 2 BUILDING PORTFOLIOOAK CLIFF - DALLAS, TX 75203

OPPORTUNITY ZONE INFORMATION


LOCATION DESCRIPTION

Given that it’s now one of the hottest neighborhoods in the Dallas-Fort Worth area, it’s hard to imagine North Oak Cliff wasn’t always a bastion of cool. For decades, after itslongtime residents fled to the suburbs in the 1970s, the area directly southwest of downtown Dallas languished. But then, something began to change.

Starting with the restoration of the Belmont Hotel around 2004, the rebirth of this once-abandoned section of town -- colloquially bounded by Fort Worth Avenue, I-35, IllinoisAvenue, and Westmoreland Road -- really began to pick up steam (somewhat ironically) in the midst of the economic downturn of 2009. Centered around the Bishop ArtsDistrict, empty storefronts were reimagined as rustic restaurants, which helped turn the neighborhood into a foodie’s paradise, and long-vacant theaters reopened as venues formusic and art.

Slowly, the unique character and landscape of North Oak Cliff helped revive the neighborhood; as of 2015, it had grown to an estimated population of 72,000 with a medianresident age of 32 years old. Meet some of the places and people that helped make this rebirth a reality.

Central Market - The purchase was made "in anticipation of our future expansion needs," said Mabrie Jackson, director of public affairs for Central Market/H-E-B in Dallas. "Weare evaluating our options for this evolving and unique location," Jackson said.

There are no firm plans yet for developing the property, she said, but the property was purchased with a Central Market store in mind, not an H-E-B store. The parcel had houseda transportation building for Dallas County Schools and was then bought by Crescent Communities, a North Carolina-based developer that's building an apartment complexacross the street.


OAK CLIFF

INCOME SUMMARY PER DOOR

Rental Income $321,600 $10,050

5% Vacancy -$16,080 -$502

Electricity Reimbursements $15,019 $469

Gross Income $320,539 $10,016

EXPENSE SUMMARY PER DOOR

Repairs and Maintenance $24,969 $780

Utilities $46,971 $1,467

Administrative $41,710 $1,303

Legal, Finance, and Insurance $14,000 $437

Taxes $45,640 $1,426

Gross Expenses $173,290 $5,415

Net Operating Income $147,249 $4,601



INCOME & EXPENSES

PROPERTY INFORMATIONSECTION 1

MATTEO FAETH

[email protected]

Presented By

CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION | 11

722 N MARSALIS BUILDING DETAILS

Wiring: Copper

Plumbing: Cast Iron

HVAC: Window Units/Wall Heaters

Roof: Composition

Foundation: Pier and Beam

Electric Metering: Separate

Gas Metering: Separate

Water Metering: Master

722 N MARSALIS BUILDING SUMMARY

Number of Units: 16

Year Built: 1955

Lot Size: 16,997 SF

Building Size: 9,760SF

NOI: $75,050

Occupancy: 88%


722 N MARSALIS PROPERTY SUMMARY


OAK CLIFF 2 BUILDING PORTFOLIO722 N MARSALIS, DALLAS, TX

ADDITIONAL PHOTOS



5% Vacancy -$8,160 -$510

Gross Income $155,040 $9,690


Repair and Maintenance $11,815 $738

Utilities $16,489 $1,030



Taxes $22,820 $1,426




722 N MARSALISOAK CLIFF - DALLAS, TX 75203

PROFORMA INCOME & EXPENSES

UNIT

NUMBER

UNIT

BED

UNIT

BATH

UNIT

SIZE (SF)

LEASE

START

LEASE

END

CURRENT

RENT

CURRENT

RENT (PER SF)

MARKET

RENT

MARKET

RENT/SF

101 1 1 610 $800 $1.31 $850 $1.39

102 1 1 610 5/6/2019 5/6/2020 $725 $1.19 $850 $1.39

103 1 1 610 $800 $1.31 $850 $1.39

104 1 1 610 8/23/2019 8/15/2020 $805 $1.32 $850 $1.39

105 1 1 610 $725 $1.19 $850 $1.39

106 1 1 610 10/24/2018 10/31/2019 $725 $1.19 $850 $1.39

107 1 1 610 5/31/2019 6/30/2020 $650 $1.07 $850 $1.39

108 1 1 610 7/3/2019 7/2/2020 $725 $1.19 $850 $1.39

201 1 1 610 11/3/2018 10/31/2019 $800 $1.31 $850 $1.39

202 1 1 610 6/7/2019 6/6/2020 $800 $1.31 $850 $1.39

203 1 1 610 $725 $1.19 $850 $1.39

204 1 1 610 MTM MTM $805 $1.32 $850 $1.39

205 1 1 610 6/3/2019 5/31/2020 $725 $1.19 $850 $1.39

206 1 1 610 6/4/2019 6/6/2020 $725 $1.19 $850 $1.39

207 1 1 610 5/6/2019 4/30/2020 $725 $1.19 $850 $1.39

208 1 1 610 7/12/2019 7/31/2020 $725 $1.19 $850 $1.39

Totals/Averages 9,760 $11,985 $1.23 $13,600 $1.39



RENT ROLL

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF

1 br / 1 ba 16 100.0 610 $749 $1.23 $850 $1.39

Totals/Averages 16 100% 9,760 $11,984 $1.23 $13,600 $1.39



UNIT MIX SUMMARY


800 N MARSALIS BUILDING DETAILS

Wiring: Aluminum

Plumbing: Cast Iron

HVAC: Two Pipe Chiller

Roof: Composition -2018

Foundation: Pier and Beam

Electric Metering: Master

Gas Metering: Master

Water Metering: Master

800 N MARSALIS BUILDING SUMMARY

Number of Units: 16

Year Built: 1963

Lot Size: 12,000 SF

Building Size: 9,328 SF

NOI: $67,980

Occupancy: 88%


800 N MARSALIS PROPERTY SUMMARY


OAK CLIFF 2 BUILDING PORTFOLIO800 N MARSALIS, DALLAS, TX

ADDITIONAL PHOTOS



5% Vacancy -$7,920 -$495

Electricity Reimbursement $10,800 $675

Gross Income $161,280 $10,080


Repairs and Maintenace $13,154 $822

Utilities $30,482 $1,905



Taxes $22,820 $1,426





PROFORMA INCOME & EXPENSES

UNIT

NUMBER

UNIT

BED

UNIT

BATH

UNIT

SIZE (SF)

LEASE

START

LEASE

END

CURRENT

RENT

CURRENT

RENT (PER SF)

MARKET

RENT

MARKET

RENT/SF

SECURITY

DEPOSIT

101 1 1 583 MTM MTM $795 $1.36 $825 $1.42

102 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42

103 1 1 583 $750 $1.29 $825 $1.42

104 1 1 583 $750 $1.29 $825 $1.42

105 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42

106 1 1 583 4/1/2019 3/31/2020 $750 $1.29 $825 $1.42

107 1 1 583 7/9/2019 7/4/2020 $805 $1.38 $825 $1.42

108 1 1 583 $725 $1.24 $825 $1.42

201 1 1 583 2/22/2019 4/30/2020 $725 $1.24 $825 $1.42

202 1 1 583 8/6/2019 8/31/2020 $750 $1.29 $825 $1.42

203 1 1 583 MTM MTM $725 $1.24 $825 $1.42

204 1 1 583 MTM MTM $785 $1.35 $825 $1.42

205 1 1 583 4/1/2019 3/31/2020 $805 $1.38 $825 $1.42

206 1 1 583 8/26/2019 7/31/2020 $805 $1.38 $825 $1.42

207 1 1 583 8/27/2019 7/31/2020 $805 $1.38 $825 $1.42

208 1 1 583 MTM MTM $725 $1.24 $825 $1.42

Totals/Averages 9,328 $12,200 $1.31 $13,200 $1.42 $0



RENT ROLL

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF

1 br / 1 ba 16 100.0 583 $763 $1.31 $825 $1.42

Totals/Averages 16 100% 9,328 $12,208 $1.31 $13,200 $1.42



UNIT MIX SUMMARY


SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

808 BlaylockDallas, TX75203

$1,100,000 8,812 SF $124.83 $78,571 - - 14 12/07/2017

939 MarsalisDallas, TX75203

$5,247,000 42,320 SF $123.98 $83,285 - - 63 01/26/2017

833 EwingDallas, TX75203

$1,000,000 8,660 SF $115.47 $71,428 - - 14 10/16/2018

PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE

Totals/Averages $2,449,000 19,931 SF $122.87 $80,745 - - 30.33

1

2

3


SALE COMPS SUMMARY


1 Dallas, TX75203

808 BLAYLOCK2 Dallas, TX

75203

939 MARSALIS3 Dallas, TX

75203

833 EWING


SALE COMPS MAP


RENT COMPS UNIT TYPE RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY %

939 MarsalisDallas, TX75203

1-1 $1.51 620 SF 620 SF 63 98%

404 E 9thDallas, TX75203

1-1 $1.73 550 SF 550 SF 26 100%

808 BlaylockDallas, TX75203

2-1 $1.31 800 SF 800 SF 14 93%

Totals/Averages $1.52 $1.52 657 SF 657 SF 34.33 97%

1

2

3


RENT COMPS SUMMARY


1 Dallas, TX75203

939 MARSALIS2 Dallas, TX

75203

404 E 9TH3 Dallas, TX

75203

808 BLAYLOCK


RENT COMPS MAP

POPULATION 1 MILE 2 MILES 3 MILES

Total population 13,904 46,695 106,400

Median age 31.1 32.0 31.2

Median age (male) 31.4 31.9 31.0

Median age (Female) 30.2 31.9 31.4

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES

Total households 4,505 16,000 38,098

# of persons per HH 3.1 2.9 2.8

Average HH income $48,429 $53,900 $60,574

Average house value $40,979 $158,907 $142,107

* Demographic data derived from 2010 US Census


DEMOGRAPHICS MAP



CONFIDENTIALITY & DISCLAIMER

All materials and information received or derived from Perry Guest Company its directors, officers,agents, advisors, affiliates and/or any third party sources are provided without representation orwarranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack ofcompliance with applicable governmental requirements, developability or suitability, financialperformance of the property, projected financial performance of the property for any party’s intendeduse or any and all other matters.

Neither Perry Guest Company its directors, officers, agents, advisors, or affiliates makes anyrepresentation or warranty, express or implied, as to accuracy or completeness of the any materialsor information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct ofits own due diligence to determine these and other matters of significance to such party. Perry GuestCompany will not investigate or verify any such matters or conduct due diligence for a party unlessotherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including through appropriatethird party independent professionals selected by such party. All financial data should be verified bythe party including by obtaining and reading applicable documents and reports and consultingappropriate independent professionals. Perry Guest Company makes no warranties and/orrepresentations regarding the veracity, completeness, or relevance of any financial data orassumptions. Perry Guest Company does not serve as a financial advisor to any party regarding anyproposed transaction. All data and assumptions regarding financial performance, including that usedfor financial modeling purposes, may differ from actual data or performance. Any estimates of marketrents and/or projected rents that may be provided to a party do not necessarily mean that rents canbe established at or increased to that level. Parties must evaluate any applicable contractual andgovernmental limitations as well as market conditions,vacancy factors and other issues in order todetermine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions should bediscussed by the party with a title officer or attorney. Questions regarding the condition of theproperty and whether the property complies with applicable governmental requirements should bediscussed by the party with appropriate engineers, architects, contractors, other consultants andgovernmental agencies. All properties and services are marketed by Perry Guest Company incompliance with all applicable fair housing and equal opportunity laws.


DISCLAIMER

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