offering memorandum - loopnet...effective gross income (egi) $ 2,927,684 $ 11,090 $ 3,349,151 $...

1 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

O F F E R I N G M E M O R A N D U M

EXCLUSIVELY PRESENTED BY

4150 E. MAIN STREET | MESA, ARIZONA 85205

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.


OFFERING SUMMARY

PRICE: $45,000,000

PRICE/UNIT: $170,455

PRICE/FOOT: $178.67

TERMS: Cash to New Loan

AFFORDABLE SUMMARY: 238 units are designated as affordable and subject to Declaration of Affirmative Land Use and Restrictive Covenants Agreement (LURA) dated May 8, 2006. 26 units are designated as market rate.

DOCUMENTS: LURA, Operating Statement, Rent Roll, etc. are available upon request.

PROGRAM: Section 42 (i) (3) (A)

PLACED IN SERVICE: 10/14/05

TERMINATION DATE FOR EXTENDED USE PERIOD:

5/15/2037

MEDIAN FAMILY INCOME: $72,900

QCT: Not Eligible


PROPERTY SUMMARY

Apartment Community San Fernando Apartments

Address 4150 East Main StreetMesa, Arizona 85205

Number of Units 264

Year Completed 2005

Net Rentable Square Feet ±251,856 SF

Weighted Average Unit Size ±954 SF

Number of Buildings 22 Residential including Leasing Office/Clubhouse & Fitness Center

Number of Floors Two

Parcel Size 15.42 Acres

Site Density 17.12 Units per Acre

THE OFFERING

Covered Spaces 264

Uncovered 278

Total Parking Spaces 542

Parking Ratio 2.05 Spaces per Unit

PARKING BREAKDOWN

Tax Parcel Number 140-19-003A

Zoning RM-4

High School District Mesa Unified

Elementary School District Mesa Unified

ASSESSOR/PARCEL INFORMATION

Building Type Garden

Construction Type Wood Frame & Stucco

Foundation Type Concrete

Roofs Pitched Tile

Parking Surface Asphalt

HVAC Individual Ground Mounted Units

Electrical Individually Metered

Hot Water Individual Domestic Hot Water (Electric)

Plumbing Copper

Wiring Copper

Life Safety Smoke Detectors in Apartment Interiors &Fire Extinguishers on Building Exteriors

CONSTRUCTION + MECHANICAL

Electric Salt River Project

Gas None

Water City of Mesa

Sewer City of Mesa

Trash City of Mesa

Phone Cox or Century Link

Cable Cox, DIRECTV or Dish Network

Internet Cox or CenturyLink

UTILITIES


SITE MAP


OFFERING AMENITIES

COMMUNITYAMENITIES » Sparkling Swimming Pool and Spa with Lounge Seating

» Fitness Facility

» Stand-Alone Clubhouse with Leasing Office

» Spacious Outdoor Areas with Barbecue Grills

» Assigned Covered Parking

» Vehicular Gating

» Basketball Court

» Children’s Play Structure/Area

» Enclosed Trash Recepticles

FLOOR PLANAMENITIES » Full Size W/D

» 9ft Ceilings

» Private Balconies and Patios

» Dishwasher

» Microwave

» All Electric Kitchen

» Gourmet Style Kitchens

» Modern Black Appliances

» Kitchen Pantry

» Garbage Disposal

» Separate Dining Area

» Vertical Blinds

» Pantry

» Cable Ready

» Tile Floors/Carpet (Bedrooms)

» Ceiling Fan(s)

» Extra Storage

» Central Air/Heating


60 60

NEARBY AMENITIES

MAIN STREETMAIN STREET


FLOOR PLANS

1 BD/1 BA(635 SF)

2 BD/ 2 BA(907 SF)

2 BD/ 2 BA TH(1,019 SF)

3 BD/ 2 BA(1,100 SF)

3 BD/ 2 BA(1,100 SF)


PROFORMA PROFORMASSaann FFeerrnnaannddoo

44115500 EEaasstt MMaaiinn SSttrreeeett MMeessaa,, AArriizzoonnaa

## ooff UUnniittss SSiizzee AAvvgg.. CCuurrrreenntt RReenntt

AARR ww// 66..8866%% IInnccrreeaassee 44//22002200

PPoosstt RReennoo ooff MMKKTT rraattee uunniittss && 33..11%% AARR iinnccrreeaassee 44//22002211

ΔΔ CCuurrrreenntt ttoo TTooddaayy''ss RReenntt MMoo.. RReenntt ppeerr SSFF

4 635 622$ 665$ 686$ 6.9% 0.98$ 3 635 833$ 925$ 1,090$ 11.0% 1.31$

19 635 693$ 742$ 765$ 7.1% 1.09$ 55 907 882$ 944$ 973$ 7.0% 0.97$ 26 907 711$ 761$ 785$ 7.0% 0.78$ 11 907 1,003$ 1,095$ 1,175$ 9.2% 1.11$ 93 1019 881$ 942$ 971$ 6.9% 0.86$ 3 1019 787$ 842$ 868$ 7.0% 0.77$ 8 1019 1,024$ 1,125$ 1,350$ 9.9% 1.00$ 6 1100 811$ 867$ 894$ 6.9% 0.74$

32 1100 1,001$ 1,070$ 1,103$ 6.9% 0.91$ 4 1100 1,237$ 1,322$ 1,446$ 6.9% 1.12$

264 954 873$ 936$ 976$ 2,766,180$ 2,965,752$ 3,090,600$

EEffffeeccttiivvee GGrroossss IInnccoommeeRRUUBBSS // WW//DD IInnccoommeeMMiisscc.. IInnccoommeeEExxppeennsseess

IInnccoommee SSuummmmaarryyGPRI/Economic Rent 2,766,180$ 10,478$ 2,965,752$ 11,234$ 3,090,600$ 11,707$ Less: Vacancy Loss (57,537)$ (218)$ 2% (59,315)$ (225)$ 2% (61,812)$ (234)$ 2%Less: Loss to Lease/ Bad Debt (5,532)$ (21)$ 0% (2,966)$ (11)$ 0% (3,091)$ (12)$ 0% NNeett RReennttaall IInnccoommee 2,703,111$ 10,239$ 2% 2,903,471$ 10,998$ 2% 3,025,697$ 11,461$ 2%RUBS / W/D Income -$ -$ 205,680$ 779$ 276,840$ 1,049$ Other / Misc. Income 224,573$ 851$ 240,000$ 909$ 247,440$ 937$

TToottaall OOtthheerr IInnccoommee 224,573$ 851$ 445,680$ 1,688$ 524,280$ 1,986$ EEffffeeccttiivvee GGrroossss IInnccoommee ((EEGGII)) 2,927,684$ 11,090$ 3,349,151$ 12,686$ 3,549,977$ 13,447$

EExxppeennssee SSuummmmaarryyUtility Expense 160,640$ 608$ 5% 160,640$ 608$ 5% 160,640$ 608$ 5%Repairs/Bldg Maint and Turnover 125,200$ 474$ 4% 125,200$ 474$ 4% 125,200$ 474$ 4%Marketing 701$ 3$ 0% 701$ 3$ 0% 701$ 3$ 0%Management 112,931$ 428$ 3.9% 93,776$ 355$ 2.8% 99,399$ 377$ 2.8%Payroll 337,435$ 1,278$ 12% 337,435$ 1,278$ 10% 337,435$ 1,278$ 10%Taxes/Ins/Rents 225,003$ 852$ 8% 235,003$ 890$ 7% 235,003$ 890$ 7%Admin/Replacement/Compliance 147,915$ 560$ 5% 147,915$ 560$ 4% 147,915$ 560$ 4%

EExxppeennsseess BBeeffoorree RReesseerrvveess 1,109,825$ 4,204$ 38% 1,100,670$ 4,169$ 34% 1,106,293$ 4,191$ 32%

Replacement Reserves -$ -$ 0% 79,200$ -$ 2% 79,200$ -$ 2%TToottaall EExxppeennsseess 1,109,825$ 4,204$ 38% 1,179,870$ 4,169$ 36% 1,185,493$ 4,191$ 34%

NNeett OOppeerraattiinngg IInnccoommee 1,817,859$ 6,886$ 62% 2,169,281$ 8,217$ 64% 2,364,484$ 8,956$ 66%

CCaapp RRaattee AAnnaallyyssiiss Cap Rate Price Per / Unit Price / Sqft Price Price / Unit Price / Sqft Price Price / Unit Price / Sqft

4.00% 45,446,477$ 172,146$ 180.38$ 54,232,024$ 205,424$ 215.25$ 59,112,101$ 223,909$ 234.62$ 4.25% 42,773,155$ 162,020$ 169.77$ 51,041,905$ 193,341$ 202.59$ 55,634,918$ 210,738$ 220.82$ 4.50% 40,396,869$ 153,018$ 160.34$ 48,206,244$ 182,599$ 191.33$ 52,544,090$ 199,031$ 208.55$

Post Renovation Rent Assumes CapEx of 26 units @ $5,000/unit. ($130,000)

3Bed/2Bath - AR50%2Bed/2Bath TH - MKT

1Bed/1Bath - MKT

2Bed/2Bath TH - AR60%2Bed/2Bath TH - AR50%

1Bed/1Bath - AR60%2Bed/2Bath - AR60%2Bed/2Bath - AR50%2Bed/2Bath - MKT

Total/Avg:

T-12T-2

T-12 Proforma

AAvvgg.. CCuurrrreenntt RReenntt SScchheedduulleedd RReenntt aafftteerr 66..8866%% iinnccrreeaassee 44//2200

Proforma

N/AT-2

Gross Annual Total

UUnniitt TTyyppee

1Bed/1Bath - AR50%

3Bed/2Bath - MKT3Bed/2Bath - AR60%

Proforma

PPoosstt RReennoovvaattiioonn RReenntt ++ 33..11 %% RReenntt iinnccrreeaassee oonn AARR uunniittss

ProformaT-2 + 6.86% + 3.1%T-2 + 6.86%

Post Reno Rent on MKT rate units & 3.1% AR increase 4/202126u@$50/m & 264u@$60/m

Inclusive of AR 2020 and MKT Increases26u@$75/m & 264u@$80/m

2017: 97.0%

2018: 98.1%

2019 98.6%

2020 YTD: 98.9%

Annual Occupancy History Average


SALE COMPARABLES - MARKET RATE

PROPERTY CITY YEAR BUILT UNITS PRICE $/UNIT $/SF SALE DATE

SAN FERNANDO MESA 2005 264 $45,000,000 $170,455 $178.67 TBD

CAMBRIA GILBERT 2000 174 $35,125,000 $201,867 $139.27 11/16/18

MONTERO AT DANA PARK MESA 2000 208 $35,800,000 $172,115 $167.75 4/30/18

LA COSTA AT DOBSON RANCH MESA 1979 194 $33,750,000 $173,969 $166.80 5/30/19

VILLAGE AT LINDSAY PARK MESA 1997 256 $45,810,000 $178,945 $197.80 7/2/18

ALANTE AT THE ISLANDS CHANDLER 1996 320 $59,600,000 $186,250 $166.62 2/22/19

INDIGO SPRINGS MESA 1999 240 $41,685,000 $173,688 $185.74 10/17/18

BISCAYNE BAY CHANDLER 2000 512 $110,250,000 $215,332 $231.13 9/17/19

ALCOVE AT THE ISLANDS GILBERT 1989 272 $48,600,000 $178,676 $204.24 1/15/19

AVERAGE 1996 271 $51,327,500 $185,105 $182

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CITY OF MESA

INFORMATION COURTESY OF SELECTMESA.COM

36MEDIAN AGE

AZ: 37.3 | U.S. 38.3

38.0%*ASSOCIATES DEGREE

OR HIGHER*

$51,084MEDIAN HOUSEHOLD

INCOME

500,000 MESA POPULATION

$243,075MEDIAN HOME

SALE PRICE

1.4M WORKFORCE POPULATION WITHIN A 30-MINUTE DRIVE

35TH LARGESTCITY IN THE U.S. LARGER THAN

MIAMI, MINNEAPOLIS & ATLANTA

2ND LARGEST CITY IN PHOENIX-MESA

METRO


EXCLUSIVELY PRESENTED BY

Todd BraunPrincipal602.474.9550tbraun@leearizona.comwww.braunapartmentgroup.com

3200 E. Camelback Road, Suite 100Phoenix, AZ 85018

602.956.7777www.leearizona.com

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

4150 E. MAIN STREET | MESA, ARIZONA 85205

offering memorandum - loopnet...effective gross income (egi) $ 2,927,684 $ 11,090 $ 3,349,151 $...

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