olde town apartments...olde town apartments | 9 olde town apartments is within easy access to: >...

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

OLDE TOWN APARTMENTS 720 S. 5TH AVENUE, TUCSON, AZ 85701

THIS DOCUMENT/EMAIL HAS BEEN PREPARED BY NORTHMARQ MULTIFAMILY FOR ADVERTISING AND GENERAL INFORMATION ONLY. NORTHMARQ MULTIFAMILY MAKES NO GUARANTEES, REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, REGARDING THE INFORMATION INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF CONTENT, ACCURACY AND RELIABILITY. ANY INTERESTED PARTY SHOULD UNDERTAKE THEIR OWN INQUIRIES AS TO THE ACCURACY OF THE INFORMATION. NORTHMARQ MULTIFAMILY EXCLUDES UNEQUIVOCALLY ALL INFERRED OR IMPLIED TERMS, CONDITIONS AND WARRANTIES ARISING OUT OF THIS DOCUMENT AND EXCLUDES ALL LIABILITY FOR LOSS AND DAMAGES ARISING THERE FROM. THIS PUBLICATION IS THE COPYRIGHTED PROPERTY OF NORTHMARQ MULTIFAMILY AND/OR ITS LICENSOR(S). © 2018. ALL RIGHTS RESERVED.

Presented by: NorthMarq Multifamily

Visit us online at northmarq.com

Daniel Leibsohn SENIOR ASSOCIATE

T 602.952.4048

C 602.284.5904

[email protected]

Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253

PHOENIX, AZ 85018

602.955.7100

MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES

Alex Quenzler VICE PRESIDENT-PRODUCER

T 602.508.2209

C 480.522.0250

[email protected]

NorthMarq Capital

4 | NORTHMARQ MULTIFAMILY

SITE DESCRIPTION

Apartment Community Olde Town Apartments

Location 720 S. 5th Avenue, Tucson, AZ 85701

Total Units 32

Year Built 1961

Net Rentable Square Feet 14,800

Number of Buildings 3

Number of Stories 2

Sub-market Armory Park/Downtown

Land Size 0.65

Density 49.23 Units Per Acre

Parking 40 spaces

Laundry On-Site Laundry Room

OFFERING

Price $2,000,000

Price Per Unit $62,500

Terms Cash - Fee Simple

MECHANICAL

Heating / Cooling Individual Roof Mounted Evaporative Coolers

Hot Water Commercial Boiler

Electricity Individual (Provided by TEP)

Water / Sewer Paid by Owner (City of Tucson)

CONSTRUCTION

Style Garden Style

Foundation Concrete

Framing Wood Frame

Exterior Painted Brick

Roof Flat

Parking Surface Asphalt

PROPERTY TAXES

Number of Parcels 1

Tax Parcel Number 117-07-2180

2018 Property Tax $14,068

5 OLDE TOWN APARTMENTS |

PROPERTY SUMMARY

UNIT TYPE # OF UNITS % OF COMPLEX

SQUARE FEET VACANT NON-REV ASKING RENT ASKING

RENT / SFTOTAL ASKING

RENT

Studio 8 25% 450 - 1 $425 $0.94 $3,400

1BD/1BA 24 75% 500 5 - $495 $0.99 $11,880

TOTAL / AVERAGE 32 100% 488 5 1 $478 $0.98 $15,280

INFORMATION AS OF: 8/22/2018

Studio25%

1BD/1BA75%

UNI T MI X BR E A K DO W N


AREA DESCRIPTION

Olde Town apartments is located in the up-and-coming neighborhood of Armory Park in Tucson, Arizona. The asset is a prime, value-add opportunity that boasts several amenities to the growing rental population, many of whom are exceeding the median household income of $41,700 a year due to the robust inflow of new corporate jobs added to the downtown area. The asset has secured access, a pool, lush, garden landscaping, a laundry room, a gazebo, an office, and plenty of on-site parking to the east and west of the building. Less than a mile north of the property is downtown Tucson that offers residents easy access to the Tucson Museum of Art, Museum of Contemporary Art, Rialto Theatre, Fox Tucson, Theatre, Hotel Congress, and several award winning restaurants including Downtown Kitchen + Cocktails, Elvira’s, Cafe Poca Cosa, El Charro, HUB, Diablo Burger, and Pueblo Vida. The opportunity exists for the new owner to convert the laundry room into a new unit. Upon completion of a complete interior and exterior renovation, a new owner can achieve rental premiums of $150/unit for studios and $275/unit for one bedrooms.

DO W N T O W N T UC SON

OLDE TOWN A P A R T M E N T S


Tucson International

Airport

Kino Sports Complex

Tucson Spectrum Mall

Sentenial Peak ParkStarr Pass

Country Club

JW Marriot Starr Pass

Resort

Saguaro National Park

Randolf Golf Course

Pima Air & Space

Museum

Santa Cruz River Park

Davis-Monthan AFB

N

Pima Community

College

University of Arizona

Banner University Medical Center Tucson

Southern Arizona VA

Hospital

Tucson Medical Center

Reid Park Zoo

Carondelet St. Joseph’s

Hospital

Park Place Mall

El Con Center

Tucson Convention

Center

Downtown Tucson

OLDE TOWN A P A R T M E N T S


OLDE TOWN APARTMENTS IS WITHIN EASY ACCESS TO:

> University of Arizona - top ranked university with over 43,000 students enrolled, and a campus size of 392 acres.

> Downtown Tucson - ranks in the top 20 of Forbes Most Innovative Cities. There are 30 projects under construction or proposed-including hotels, apartments, commercial space, parks, and roadway improvements.

> Banner University Medical Center Tucson - 487-bed acute-care hospital and Southern Arizona’s only Level I Trauma Center.

> Tucson Medical Center - 641-bed locally governed nonprofit regional hospital.

> Carondelet St. Joseph’s Hospital - 486-bed acute-care facility located on the east side of Tucson. .

> Park Place Mall - over one million square feet of fashion and entertainment featuring more than 125 stores.

> El Con Center - open-air shopping mall anchored by JCPenney, Target, The Home Depot, Burlington, and Walmart .

> Tucson Convention Center - 27-acre campus featuring 8,962-seat indoor arena, two performing arts venues, and 205,000 square feet of meeting space.

> Davis-Monthan Air Force Base - Part of the United States Air Force’s Air Combat Command and is home to the 355th Fighter Wing, responsible for training and deploying A-10C Thunderbolt II pilots. Located five files southeast of downtown Tucson and employs 9,100.

> Tucson International Airport - over 10,000 passengers daily.

> Pima Air & Space Museum - one of the world’s largest non-government funded aerospace museums featuring a display of over 350 aircraft spread out over 80 acres.

> Reid Park Zoo - 24-acre city-owned and operated non-profit zoo located within Reid Park.

> Randolph Golf Course - Longest golf course in the City of Tucson system with year round 18-hole, regulation length courses.

> Kino Sports Complex - 155 acres dedicated to soccer and long field activities with a lighted 2,000-seat North Grandstand field, four more soccer fields, and a 3,000-seat stadium (North Stadium), Kino is the largest professional sports and entertainment venue of its kind in Pima County.

AREA HIGHLIGHTS


PRO FORMA OPERATIONS

NOTES

RENTSNew rents based on comparable properties post rennovation.

PHYSICAL VACANCYConsistent with submarket performance.

PROPERTY TAXES2018 Annual property taxes quoted from the Pima County Treasurer.

UTILITIESIncreased 3% from adjusted T-12 operations.

OPERATIONAL EXPENSESBased on industry standards of similar properties.

UNIT TYPE UNITS SF ASKING RENT/UNIT

MONTHLY RENT

Studio 8 450 $550 $4,400

1BD/1BA 24 500 $650 $15,600

TOTAL/AVG. 32 488 $625 $20,000

PRO FORMA OPERATING INCOME

Monthly Scheduled Gross Rent $20,000

Annual Scheduled Gross Rent $240,000

Physical Vacancy 5.00% -$12,000

Economic Vacancy 4.00% -$9,600

Net Rental Income $218,400

Other Income (Late Fees, Pet Fees, Application Fees, Laundry) $3,000

Gross Operating Income $221,400

PRO FORMA OPERATING EXPENSES PER UNIT

Property Taxes $383 $14,068

Insurance $150 $4,800

Maintenance & Repairs $450 $14,400

Turnover $250 $8,000

Contract Services $100 $3,200

Utilities $1,145 $36,629

Payroll $500 $16,000

Management Fee 5.00%OF GOI $346 $11,070

Marketing $50 $1,600

Administrative Expenses $50 $1,600

Capital Reserve $300 $6,400

TOTAL OPERATING EXPENSES $117,767

Operating Cost Per Unit $3,680

Operating Cost Per Sq Ft $7.96

PRO FORMA NET OPERATING INCOME $103,633


NO. PROPERTY YEAR BUILT UNITS UNIT SIZE

AVG. SFPHYSICAL

OCCUPANCYASKING RENT/

UNITASKING RENT/SF

NET RENT/UNIT NET RENT/SF MANAGED BY

SOlde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701

1961 32 488 84% $478 $0.98 $478 $0.98 Peach Properties

1Belair Apartments 435 E. 18th Street Tucson, AZ 85701

1963 33 523 93% $460 $0.88 $460 $0.88 Son Property

2San Carlos 71 E. 13th Street Tucson, AZ 85701

1910 36 644 95% $698 $1.08 $698 $1.08 Ashton-Goodman

3The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701

1971 53 548 96% $916 $1.67 $916 $1.67 NorthStar

4Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705

1928 31 379 95% $668 $1.76 $661 $1.75 Werth

Average 1947 37 516 93% $644 $1.25 $643 $1.24

RENT COMPARABLES


Olde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701

OWNER: Briles Family

MANAGED BY: Peach Properties


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

Studio 8 450 $425 $0.94 $425 $0.94

1BD/1BA 24 500 $495 $0.99 $495 $0.99

TOTAL/AVG. 32 488 $478 $0.98 $478 $0.98

S

Belair Apartments 435 E. 18th Street Tucson, AZ 85701

OWNER: Son Property

MANAGED BY: Tucson GS Apts, LLC


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 32 520 $456 $0.88 $456 $0.88

2BD/1BA 1 620 $600 $0.97 $600 $0.97

TOTAL/AVG. 33 523 $460 $0.88 $460 $0.88

1

San Carlos 71 E. 13th Street Tucson, AZ 85701

OWNER: Ashton-Goodman Properties

MANAGED BY: OWNER


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

Studio 5 450 $588 $1.31 $588 $1.31

1BD/1BA 30 665 $709 $1.07 $709 $1.07

2BD/1BA 1 1000 $935 $0.94 $935 $0.94

TOTAL/AVG. 36 644 $698 $1.08 $698 $1.08

2

The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701

OWNER: GR Capital Partners, LLP

MANAGED BY: NorthStar


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

Studio 22 454 $794 $1.75 $794 $1.75

1BD/1BA 27 544 $968 $1.78 $968 $1.78

2BD/1BA 4 1086 $1,239 $1.14 $1,239 $1.14

TOTAL/AVG. 53 548 $916 $1.67 $916 $1.67

3

Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705

OWNER: Coronado Hotel Apartments

MANAGED BY: Werth Realty


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

Studio 31 379 $995 $2.63 $995 $2.63

TOTAL/AVG. 31 379 $668 $1.76 $661 $1.75

4


RENT COMPARABLES

N

SOlde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701

1Belair Apartments 435 E. 18th Street Tucson, AZ 85701

2San Carlos 71 E. 13th Street Tucson, AZ 85701

3The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701

4Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705

1

SITE

2

4

3

M U L T I F A M I L Y & M A N U F A C T U R E D H O U S I N G I N V E S T M E N T S A L E S

Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253

PHOENIX, AZ 85018

602.955.7100

NorthMarq Multifamily

Visit us online at northmarq.com

Daniel Leibsohn SENIOR ASSOCIATE

T 602.952.4048

C 602.284.5904

[email protected]

Alex Quenzler VICE PRESIDENT-PRODUCER

T 602.508.2209

C 480.522.0250

[email protected]

James DuMars MANAGING DIRECTOR

T 602.508.2206

C 602.714.4202

[email protected]

NorthMarq Capital

olde town apartments...olde town apartments | 9 olde town apartments is within easy access to: >...

Documents