offering procedures...las violetas sits right off north jackson road and west university drive...
TRANSCRIPT
O F F E R I N G P R O C E D U R E SPurchasers wishing to make an offer on the property are requested to submit:
• Letter of Intent• Resume and/ or business letter indicating assets owned and assets purchased in the past two years• Transaction references• Banking references• Source of equity for acquisition
Upon receipt of an acceptable Letter of Intent, the successful offerer will be supplied with a Purchase and Sale Agreement.
CO- BROKER COMMISSION
This Offering of Memorandum is sent to you on a Principal- only basis.
COMMUNICATIONSAll communications, inquiries and requests including property tours, should be addressed to:_____-
Please do not contact the property directly. Schedule all tours with one of the above agents.
Seller reserves the right to remove the property from the market at any time. Seller expressly reserves the right, in its sole and absolute discretion, to accept a preemptive offer, to reject any and all proposals or expressions of interest in the property or to terminate discussions with any party at any time.
Mike Moffitt Kaylee Lumsden Ben Sobczak Hank CraneFirst Vice President Investments Agent Assistant Investment Analyst Senior DirectorAustin Office Austin Office Austin Office Austin Office512-338-7846 512-338-7833 512-338-7829 512-338-7841www.TheMoffittGroupTexas.com www.TheMoffittGroupTexas.com www.TheMoffittGroupTexas.com www.TheMoffittGroupTexas.comJ.Michael.Moffitt@marcusmillichap.com [email protected] [email protected] [email protected]
Exclusively Listed By:
5
2102 ELISA LANE | EDINBURG | TEXAS | 78541Exclusively Listed By:
Mike MoffittFirst Vice President InvestmentsAustin Office512-338-7846www.TheMoffittGroupTexas.comJ.Michael.Moffitt@marcusmillichap.com
6
CONFIDENTIALITY AGREEMENTDisclaimer
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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsements
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.
7
CONTENTSPROPERTY DESCRIPTION 09SECTION ONE
RENT COMPARABLES 20SECTION TWO
FINANCIAL ANALYSIS 32SECTION THREE
8
9
INVE
STME
NTH
IGH
LIG
HTS
PROPERTY OVERVIEW Marcus & Millichap is pleased to announce the exclusive listing of Las Violetas Apartments, a 96-unit multifamily asset located in Edinburg, Texas. Built in 1996 and renovated in 2001, the property sits on 3.85 acres of land. Exterior amenities include on-site parking, a courtyard, and a swimming pool while interior amenities include ceiling fans, tile flooring, washer/dryer connections, and walk-in closets.
LOCATION
Las Violetas sits right off North Jackson Road and West University Drive providing residents with easy access to Interstate-69C and Interstate-2, two major thoroughfares in Edinburg. The property is less than one mile away from the University of Texas Rio Grande Valley – Edinburg Campus, a rapidly expanding university with over 27,000 undergraduate students, as well as the UTRGV Graduate College and the UTRGV School of Medicine providing an easy commute for students. There are numerous popular retailers, restaurants, parks, churches, and schools nearby. Within a half-mile distance sits a frozen yogurt shop called Frozen Twist, El Tigre Food Store, Walmart Supercenter, Rio Grande 24 Hour Emergency Care, and many banks including Wells Fargo. Just less than one mile away sits Bicentennial Park offering residents a playground and a fitness trail. Within a two-mile distance sits an H-E-B Grocery, Target, Walmart, Sam’s Club, Gold’s Gym, Bank of America, Wells Fargo, Home Depot, and UPS along with many popular eating establishments. There are also attractions such as the International Museum of Art and Science and Cinemark Hollywood USA. The U.S. Border Patrol Sector Headquarters sits just over four miles from the property and the McAllen International Airport is located about 11 miles away from Las Violetas, directly across from La Plaza Mall, McAllen’s premier shopping location.
INVESTMENT RATIONALE
Las Violetas provides an opportunity for a new owner to invest in the property and increase rents. It is currently 90% occupied with 13 vacant units. The property contains the largest one-bedrooms and two-bedrooms on the market by comparison. Rents on the 52 one-bedroom/ one-bathroom units at 846 square feet can be increased from $0.77/SF to $0.80/SF. Rents on the 44 two-bedroom one and one-half-bathroom units at 1,002 square feet can be increased from $0.73/SF to $0.76/SF.
10
Eighty years ago, the Rio Grande Valley of South Texas was a rural, agriculture-based economy characterized by sporadic growth. Today, the area is being transformed into a major international trade area by developing first-rate commercial, retail, industrial, medical, retirement and higher education institutions. The promotion of international and retail trade, manufacturing and education are among the most successful along the U.S.-Mexico Border.
The Rio Grande Valley includes the four southern-most counties in Texas: Cameron, Hidalgo, Starr and Willacy. It is in the geographic center of the region most recently termed the Borderplex, which includes the four Rio Grande Valley counties and the Northern Mexico border cities between Matamoros and Ciudad Mier.
EDINBURG OVERVIEW TOP EMPLOYERS
• University of Texas Rio Grande Valley 6,000• McAllen Border Patrol 1,400• Edinburg Consolidated ISD 935• Sprouts 121 925• Walmart 800• Nurses That Care Sitter SVCS 700• McAllen Medical Center Inc. 650• Whataburger 608• Jordan Health Services 440• Hidalgo County Welfare Deptartment 400• Lowes 308• Edinburg North High School 300
11
12
13
14
2 1 0 2 E L I S A L A N E | E D I N B U R G | T E X A S | 7 8 5 4 1
15
2 1 0 2 E L I S A L A N E | E D I N B U R G | T E X A S | 7 8 5 4 1
INVESTMENT OVERVIEWYear Built / Rennovated 1996 / 2001Number of Units 96Rentable Square Feet 88,132Average Unit Size 947Lot Size 3.85 AcresOccupancy 90%
PROP
ERTY
DES
CRIP
TIO
N
PARKINGOpen Spaces 115 +/-
TAX ENTITIES & 2018 TAX RATESCentral Appraisal District 0.000000City of Edinburg 0.635000Hidalgo County 0.580000Edinburg I.S.D 1.239800Drainage District #1 0.095100South Texas College 0.178000South Texas School 0.049200Road Dist 15 0.000000Total Tax Rate 2.777100
CONSTRUCTIONStyle GardenSiding Brick/VeneerFoundation Concrete slab on gradeRoofs Pitched CompositionNumber of Buildings 9
UTILITIES PROVIDERWater/Sewer City Of EdinburgGas No gas on-siteElectric City Of EdinburgTrash City Of EdinburgPhone AT&TInternet/Cable Spectrum
SCHOOL INFORMATIONElementary School De La Vina Elementary SchoolMiddle School B L Garza Middle SchoolHigh School Edinburg North High School
LEASING FEESApplication Fee $35 per applicant $50 Per CoupleSecurity Deposit $300 for 2 Bdrm $200 for 1BdrmPet Deposit $300 per pet (Non-refundable)
16
COMMUNITYHIGHLIGHTS
INTERIORHIGHLIGHTS
On-Site Management Office Public TransportationTropical Landscaping
Covered Parking
Washer / Dryer ConnectionsCustom Solid Cabinents
Ceramic Tile Flooring Full Service Kitchens
Window Coverings Large Closets Dinning AreaCeiling FansPet Friendly
Cable
17
APAR
TMEN
TIN
TERI
ORS
18
APAR
TMEN
TIN
TERI
ORS
20
RENT
COM
PARA
BLES
2
3
45
6
RENT COMPARABLESLas VioletasNottinghill
University Commons
University Manor
Champion Gardens
Vista De Palmas
1234
56
I-69
I-69
1
21
PROPERTY BUILT UNITS AVG SF MARKETAVG RENT RENT/SF
OCCUPANCY
Las Violetas 1996 96 916 $686 $0.75 90%
Nottinghill 2005 43 819 $617 $0.79 100%
University Commons 1975 216 834 $707 $0.85 91%
University Manor 1972 80 740 $570 $0.78 100%
Champion Gardens 1983 48 801 $608 $0.79 90%
Vista De Palmas 1974 90 716 $651 $0.77 96%
#1
2
3
4
5
6
MARKET AND EFFECTIVE RENT COMPARISON
RENT
COM
PARA
BLES
22
RENT COMPARABLES BY FLOOR PLANS
PROPERTY UNIT TYPE UNITS SF EFF RENT RENT/SF
Las Violetas 1 BR / 1 BA 52 846 $567.00 $0.67
University Commons
1 BR / 1 BA 100 846 $650.00 $0.77
Vista De Palmas 1 BR / 1 BA 56 702 $585.00 $0.83
Nottinghill 1 BR / 1 BA 25 721 $575.00 $0.80
University Manor 1 BR / 1 BA 64 700 $550.00 $0.79
Champion Gardens
1 BR / 1 BA 16 600 $525.00 $0.88
PROPERTY UNIT TYPE UNITS SF EFF RENT RENT/SF
Las Violetas 2 BR / 2 BA 44 1,075 $671.00 $0.67
University Commons
2 BR / 2.5 BA
44 1,002 $730.00 $0.73
Vista De Palmas 2 BR / 2 BA 72 880 $725.00 $0.82
Nottinghill 2 BR / 2 BA 18 956 $675.00 $0.71
University Manor 2 BR / 2 BA 16 900 $650.00 $0.72
Champion Gardens
2 BR / 2 BA 32 902 $650.00 $0.72
ONE BEDROOM TWO BEDROOM RE
NTCO
MPA
RABL
ES
23
RENT
COM
PARA
BLES
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 25 721 $575 $0.80
2 BR / 2 BA 18 956 $675 $0.71
TOTAL/AVERAGES 43 819 $617 $0.79
NOTTINGHILL814 Chinese Street, Edinburg, TX, 78541
2
LAS VIOLETAS APARTMENTS2102 Elisa Lane, Edinburg, TX, 78541
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 52 846 $567 $0.67
2 BR / 2 BA 44 998 $671 $0.67
TOTAL/AVERAGES 96 916 $615 $0.67
1
24
RENT
COM
PARA
BLES
University Commons 1609 West Schunior Street, Edinburg, TX, 78541
3
UNIVERSITY MANOR APARTMENTS615 South Sugar Road, Edinburg, TX, 78539
4
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 100 624 $625 $1.00
2 BR / 2 BA 60 901 $725 $0.80
3 BR / 2 BA 56 1,136 $836 $0.85
TOTAL/AVERAGES 216 834 $707 $0.85
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 64 700 $550 $0.79
2 BR / 2 BA 16 900 $650 $0.72
TOTAL/AVERAGES 80 740 $570 $0.78
25
RENT
COM
PARA
BLES
Updated 09/03/2019
CHAMPION GARDENS APARTMENTS1802 West Samano Street, Edinburg, TX, 78539
5
VISTA DE PALMAS1415 West Freddy Gonzalez Drive, Edinburg, TX, 78539
6
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 16 600 $525 $0.88
2 BR / 2 BA 32 902 $650 $0.72
TOTAL/AVERAGES 48 801 $608 $0.79
UNIT TYPE UNITS SF RENT RENT/SF
1 BR / 1 BA 46 567 $524 $0.92
2 BR / 2 BA 40 989 $721 $0.73
3 BR / 2 BA 10 1,011 $814 $0.79
TOTAL/AVERAGES 96 789 $639 $0.80
26
RENT
COM
PARA
BLES AVERAGE RENT/SF BY UNIT AVERAGE RENT-MULTIFAMILY
Avg. $572
$0
$70
$140
$210
$280
$350
$420
$490
$560
$630
$700
LasVioletas
Nottinghill Vista dePalm as
El Bosque UniversityManor
ChampionGardens
Apartments
1 Bedroom
Avg. $695
$0
$80
$160
$240
$320
$400
$480
$560
$640
$720
$800
LasVioletas
Nottinghill Vista dePalm as
El Bosque UniversityManor
ChampionGardens
Apartments
2 Bedroom
Avg. $ .87
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
LasVioletas
ATIM Vista dePalm as
UniversityCommons
UniversityManor
ChampionGardens
Apartments
1 Bedroom
Avg. $ .74
$0.00
$0.09
$0.18
$0.27
$0.36
$0.45
$0.54
$0.63
$0.72
$0.81
$0.90
LasVioletas
ATIM Vista dePalm as
UniversityCommons
UniversityManor
ChampionGardens
Apartments
2 Bedroom
27
FINAN
CIALA
NAL
YSIS
INVESTMENT SUMMARY
PRICING GUIDANCE
High $5,775,000
$5,725,000
Middle $5,675,000
$5,625,000
Low $5,575,000
PROPERTY OVERVIEW
Year Built/Renovated 1996/2001
Number of Units 96
Rentable Square Feet 88,132
Average Unit Size 947
Current Occupancy 90%
2019 Tax Assessment $109,944
Assessed Value $3,958,967
FINANCIAL METRICS
Purchase Price $5,575,000 $5,675,000 $5,775,000
Price/Unit $58,073 $59,115 $60,156
Price/SqFt $63.26 $64.39 $65.53
Current NOI $382,933 $382,933 $382,933
Current Cap 6.87% 6.75% 6.63%
Year 1 NOI $426,769 $426,769 $426,769
Year 1 CAP 7.66% 7.52% 7.39%
Current GRM 7.85 7.99 8.13
GRM Year 1 7.21 7.34 7.47
YEAR ONE RETURNS
Year One Per Unit
Gross Potential Rent $813,782 $8,476.90
Effective Gross Income $784,667 $8,173.62
Total Expenses $357,898 $3,728.10
NOI $426,769 $4,445.51
ASSET LEVERAGEPurchase Price $5,575,000 $5,675,000 $5,775,000LTV 75.00% 75.00% 75.00%Total Debt $4,181,250 $4,256,250 $4,331,250Down Payment $1,393,750 $1,418,750 $1,443,750Debt Coverage Current 1.37 1.35 1.33Debt Coverage Year 1 1.53 1.50 1.48Current Cash-on-Cash 7.48% 7.00% 6.53% Year 1 Cash-on-Cash 10.63% 10.09% 9.57%5-Year IRR 31.64% 30.42% 29.21%7-Year IRR 28.18% 27.29% 26.42%10-Year IRR 24.89% 24.22% 23.56%
LOAN SUMMARY*
Interest Rate 5.30%
Amortization Period 30 Years
Months of Interest Only 0 Months
Annual Loan Constant 6.66%
Loan Term 10 Years
Loan to Value 75%
Loan Amount $4,256,250
Down Payment $1,418,750
Updated 11/13/2019
*Loan Financials based on 2019 CMBS quote.
28
T12 Current Year 1 Notes Per Unit Per SF
INCOME Gross Potential Rent 790,080 790,080 813,782 [1] 8,477 9.26
Loss / Gain Lease (82,140) 10.4% (79,944) 10.1% (40,689) 5.0% (424) (0.46)
GROSS SCHEDULED RENT 707,940 710,136 773,093 8,053 8.79
Physical Vacancy (87,776) 12.4% (73,973) 10.4% (54,117) 7.0% [2] (564) (0.62) Non-Revenue Units (8,760) 1.2% (8,760) 1.2% (8,760) 1.1% [3] (91) (0.10)
Total Vacancy ($96,536) 13.6% ($82,733) 11.7% ($62,877) 8.1% ($655) ($1)
Economic Occupancy 86.36% 88.35% 91.87%
Effective Rental Income 611,404 627,404 710,217 7,398 8.08
Affordable Housing Income 46,320 46,320 47,710 [4] 497 0.54
All Other Income 25,962 25,962 26,741 [4] 279 0.30
Total Other Income $72,282 $72,282 $74,450 $776 $0.85
EFFECTIVE GROSS INCOME $683,686 $699,686 $784,667 $8,174 $8.92
EXPENSES
Real Estate Taxes 107,752 107,752 110,984 [5] 1,156 1.26
Insurance 38,412 38,412 43,200 [6] 450 0.49
Utilities - Combined 12,728 12,728 13,110 [7] 137 0.15
Trash Removal 2,804 2,804 2,270 [8] 24 0.03
Repairs & Maintenance 10,291 10,291 62,400 [9] 650 0.71
Landscaping 6,892 6,893 7,100 [11] 74 0.08
Marketing & Advertising 55,782 55,783 62,400 [12] 650 0.71
Payroll 27,276 27,276 28,094 [13] 293 0.32
Contract Services 30,325 30,325 4,800 [14] 50 0.05
General & Administrative 20,405 24,489 3.5% 23,540 3.0% [15] 245 0.27
Management Fee $312,667 $316,752 $357,898 $3,728 $4.07
Total Expenses 45.7% 45.3% 45.6%
Expenses as % of EGI $371,019 $382,933 $426,769 $4,446 $4.85 Net Operating Income $371,019 $382,933 $426,769 $4,446 $4.85
HISTORICAL COMPARISON TO PRO FORMAHISTORICALS PRO FORMA
TEN-YEAR CASH FLOW
FINAN
CIALA
NAL
YSIS
Pro Forma Notes1 Gross Potential Rent is based on Rent Roll scheduled rents and Trailing 12 Month P&L from August.2 Vacancy rate at 10.4% per September 2019 Rent Roll3 One non-revenue unit as leasing office 4 Current and Historical Other Income based on annualized P&L from the month of August 2019.5 Real Estate Tax based on HCAD apprasial value of $3,958,967 and tax rate of 2.777%. Tax rate used according to tax rate shown on HCAD. 3% Growth6 Insurance Year 1 projections based on trailing 12 month figures. Year 1 figure based on 450 per unit assumption in line with comparable regional properties7 All Utilities Year 1 projections based on trailing 12 month figures at 3% growth8 Trash Year 1 projections based on trailing 12 month figures at 3% growth9 Maintenance and Repairs figure based on 750 per unit assumption in line with comparable regional properties.
10 Landscaping Year 1 projections based on trailing 12 month figures at 3% growth11 Marketing and Advertising Year 1 projections based on trailing 6 month figures at 3% growth12 Payroll Year 1 expense based on 650 per unit assumption in line with comparable regional properties13 Current Contract Services based on trailing 12 month P&L figures. 3% growth. Includes landscaping, pest control, and pool.14 General and Administrative Year 1 expense based on 50 per unit assumption in line with comparable regional properties15 Current Management Fee based on Trailing 12 Month P&L. Year 1 projection based on 3% fee.
29
T12 Current Year 1 Notes Per Unit Per SF
INCOME Gross Potential Rent 790,080 790,080 813,782 [1] 8,477 9.26
Loss / Gain Lease (82,140) 10.4% (79,944) 10.1% (40,689) 5.0% (424) (0.46)
GROSS SCHEDULED RENT 707,940 710,136 773,093 8,053 8.79
Physical Vacancy (87,776) 12.4% (73,973) 10.4% (54,117) 7.0% [2] (564) (0.62) Non-Revenue Units (8,760) 1.2% (8,760) 1.2% (8,760) 1.1% [3] (91) (0.10)
Total Vacancy ($96,536) 13.6% ($82,733) 11.7% ($62,877) 8.1% ($655) ($1)
Economic Occupancy 86.36% 88.35% 91.87%
Effective Rental Income 611,404 627,404 710,217 7,398 8.08
Affordable Housing Income 46,320 46,320 47,710 [4] 497 0.54
All Other Income 25,962 25,962 26,741 [4] 279 0.30
Total Other Income $72,282 $72,282 $74,450 $776 $0.85
EFFECTIVE GROSS INCOME $683,686 $699,686 $784,667 $8,174 $8.92
EXPENSES
Real Estate Taxes 107,752 107,752 110,984 [5] 1,156 1.26
Insurance 38,412 38,412 43,200 [6] 450 0.49
Utilities - Combined 12,728 12,728 13,110 [7] 137 0.15
Trash Removal 2,804 2,804 2,270 [8] 24 0.03
Repairs & Maintenance 10,291 10,291 62,400 [9] 650 0.71
Landscaping 6,892 6,893 7,100 [11] 74 0.08
Marketing & Advertising 55,782 55,783 62,400 [12] 650 0.71
Payroll 27,276 27,276 28,094 [13] 293 0.32
Contract Services 30,325 30,325 4,800 [14] 50 0.05
General & Administrative 20,405 24,489 3.5% 23,540 3.0% [15] 245 0.27
Management Fee $312,667 $316,752 $357,898 $3,728 $4.07
Total Expenses 45.7% 45.3% 45.6%
Expenses as % of EGI $371,019 $382,933 $426,769 $4,446 $4.85 Net Operating Income $371,019 $382,933 $426,769 $4,446 $4.85
TEN-YEAR CASH FLOWPRO FORMA ASSUMPTIONS
INCOME YEAR 1 2021 2022 2023 2024 2025 2026 2027 2028 2029
Gross Potential Rent 3.0% 5.00% 4.00% 4.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Loss / Gain Lease (1) 5.0% 2.00% 2.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%TOTAL VACANCY 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10%TOTAL OTHER INCOME 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%EXPENSES
Operating Expenses 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Real Estate Taxes 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Insurance 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Utilities 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Management Fee (2) 3.0%
Current 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
INCOME
Gross Potential Rent 790,080 813,782 854,472 888,650 924,196 951,922 980,480 1,009,894 1,040,191 1,071,397 1,103,539
Loss / Gain Lease (79,944) (40,689) (17,089) (17,773) (9,242) (9,519) (9,805) (10,099) (10,402) (10,714) (11,035)
GROSS SCHEDULED RENT 710,136 773,093 837,382 870,877 914,954 942,403 970,675 999,795 1,029,789 1,060,683 1,092,503
Physical Vacancy (73,973) (54,117) (41,869) (43,544) (45,748) (47,120) (48,534) (49,990) (51,489) (53,034) (54,625)
Non-Revenue Units (8,760) (8,760) (837) (871) (915) (942) (971) (1,000) (1,030) (1,061) (1,093) Total Vacancy (82,733) (62,877) (42,706) (44,415) (46,663) (48,063) (49,504) (50,990) (52,519) (54,095) (55,718)
Effective Rental Income 627,404 710,217 794,676 826,463 868,292 894,341 921,171 948,806 977,270 1,006,588 1,036,786
All Other Income 25,962 26,741 27,276 27,821 28,378 28,945 29,524 30,115 30,717 31,331 31,958
Total Other Income 72,282 74,450 75,939 77,458 79,007 80,588 82,199 83,843 85,520 87,231 88,975
EFFECTIVE GROSS INCOME 699,686 784,667 870,615 903,921 947,299 974,928 1,003,370 1,032,649 1,062,790 1,093,819 1,125,761
EXPENSES
Operating Expenses (120,277) (102,394) (105,466) (108,630) (111,889) (115,245) (118,703) (122,264) (125,932) (129,710) (133,601)
Real Estate Taxes (107,752) (110,984) (114,314) (117,743) (121,275) (124,914) (128,661) (132,521) (136,496) (140,591) (144,809)
Insurance (38,412) (43,200) (44,496) (45,831) (47,206) (48,622) (50,081) (51,583) (53,131) (54,724) (56,366)
Utilities (25,823) (77,780) (80,113) (82,517) (84,992) (87,542) (90,168) (92,873) (95,659) (98,529) (101,485)
Management Fee (24,489) (23,540) (26,118) (27,118) (28,419) (29,248) (30,101) (30,979) (31,884) (32,815) (33,773)
TOTAL EXPENSES (316,752) (357,898) (370,507) (381,838) (393,781) (405,571) (417,714) (430,220) (443,102) (456,369) (470,034)
NET OPERATING INCOME 382,933 426,769 500,108 522,083 553,518 569,357 585,656 602,429 619,688 637,449 655,727
Updated 11/13/2019
30
FINAN
CIALA
NAL
YSIS
UNIT MIX
Scheduled Potential
Unit Type
# of Units
Average Sq. Ft
Rental Range Average Rent
Average Rent/SF
Monthly Income
Average Rent
Average Rent/SF
Monthly Income
1x1 52 846 $52 - $703 $567 $0.67 $29,483 $650 $0.77 $33,800
2x2 44 998 $133 - $750 $671 $0.67 $29,512 $728 $0.73 $32,040
Totals/Weighted Averages 96 916 $615 $0.67 $58,955 $686 $0.75 $65,840
Gross Annualized Rents $707,940 $790,080
31
Loan Program Option 1 Option 2 Option 3 Option 4
Product Freddie Mac Freddie Mac Freddie Mac Freddie Mac
Proceeds $4,256,250 $3,972,000 $3,972,000 $3,972,000
Fixed Interest Rate 5.30% 4.58% 4.28% 4.24%
Rate based on Max LTV 75% 70% 70% 70%
Rate based on min DSCR 1.30x 1.40x 1.50x 1.50x
Years Interest Only None None None None
Prepay Schedule Yield Maintenance Yield Maintenance Yield Maintenance Yield Maintenance
Loan Term (Years) 10 20 20 20
Amortization (Years) 30 30 30 30
Estimated Monthly Payment $23,635.15 $20,314.79 $19,609.68 $19,516.61
MMCC DEBT QUOTES
32
Loan Program Option 5 Option 6 Option 7 Option 8
Product Freddie Mac Freddie Mac Fannie Mae Fannie Mae
Proceeds $3,972,000 $3,972,000 $4,205,000 $4,256,000
Fixed Interest Rate 4.32% 4.32% 4.50% 4.42%
Rate based on Max LTV 70% 70% 75% 75%
Rate based on min DSCR 1.50x 1.50x 1.30x 1.30x
Years Interest Only 1 2 None None
Prepay Schedule Yield Maintenance Yield Maintenance Yield Maintenance Yield Maintenance
Loan Term (Years) 20 20 7 10
Amortization (Years) 30 30 30 30
Estimated Monthly Payment $19,702.97 $19,702.97 $21,306.12 $21,362.69
MMCC DEBT QUOTES
33
Loan Program Option 9 Option 10
Product Fannie Mae Fannie Mae
Proceeds $4,256,000 $4,256,000
Fixed Interest Rate 4.50% 4.61%
Rate based on Max LTV 75% 75%
Rate based on min DSCR 1.30x 1.30x
Years Interest Only None None
Prepay Schedule Yield Maintenance Yield Maintenance
Loan Term (Years) 12 15
Amortization (Years) 30 30
Estimated Monthly Payment $21,564.53 $21,843.59
MMCC DEBT QUOTES
34
Information About Brokerage ServicesTexas law requires all real estate license holders to give the following information about brokerage ser-
vices to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction.
The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:
• Must treat all parties to the transaction impartially and fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:o that the owner will accept a price less than the written asking price;o that the buyer/tenant will pay a price greater than the price submitted in a written offer; ando any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
11-2-2015
Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker/Broker Firm Name or Primary Assumed Business Name License No. Email Phone
Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone
Craig R. Swanson 538612 [email protected] 512-388-7800Licensed Supervisor of Sales Agent/Associate License No. Email Phone
James Moffitt 599728 [email protected] 512-388-7846Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord’s Initials DateInformation available at www.trec.texas.gov
IABS 1-0Regulated by the Texas Real Estate Commission
2102 ELISA LANE | EDINBURG | TEXAS | 78541