Marmalade Apartments Salt Lake City, Ut Non-Endorsement & Disclaimer Notice
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OFFERING MEMORANDUM MARMALADE APARTMENTS SALT LAKE CITY, UT NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE 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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com MARMALADE APARTMENTS EXCLUSIVELY LISTED BY KRIS MORTENSEN Associate National Multi Housing Group Salt Lake City Office Tel: (801) 736-2634 // Fax: (801) 736-2610 [email protected] License: UT 9789720-SA00 OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com TABLE OF CONTENTS 01 OFFERING SUMMARY 02 FINANCIAL ANALYSIS 03 MARKET COMPARABLES 04 MARKET OVERVIEW OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com 01 OFFERING SUMMARY This 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 are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Marmalade / Investment Overview 405-407 North Center Street, Salt Lake City, UT 84103 Marcus & Millichap have been selected to exclusively market for sale the Marmalade Apartments. The Marmalade Apartments offer 8 multi family units located at 405-407 North Center Street, Salt Lake City, UT 84103. The units include seven 1 Bedroom/1 Bathroom units and a single Studio unit. The tenants have access to a laundry room on the premises. The property has been very well maintained. Recently the water heaters, roof and gutters have been replaced in addition to upgrades and maintenance as tenants have turned over. The Marmalade Apartments is located in a very desirable rental neighborhood close to Downtown Salt Lake City and the University of Utah (3 miles away). UTA Trax lines are just a few blocks away and multiple UTA bus stops surround the property, making transportation across the valley easy for tenants. The apartment caters to a large tenant pool, ranging from students to small families. Because of the great location the vacancy history is very low and available units fill up fast. The economic condition in Utah remains strong, trending upward, as unemployment remains at an all-time low of 3.2% compared to the National low of 4.5%, and companies continue to move or expand into Utah including Amazon, Facebook, and Goldman Sachs. Marmalade is located less than 3 blocks from a TRAX light rail station, which provides direct routes to downtown Salt Lake City and the University of Utah. 6 EXECUTIVE SUMMARY • Property Details MARMALADE / 405 N Center Street, Salt Lake City UT 84103 Price Price to Be Determined By Market Number of8 Units UNITS 188 out of 200 Condominium Units Price $1,050,000 HIGHLIGHTS Parcel Number 08-36-277-020 Total Sq Footage 4,780 SF OPPORTUNITY 8-unit property in rapidly growing Salt Lake City area Year Built 1926 Lot Size 0.13 Acres TRANSPORTATION Less than 3 blocks from 2 TRAX light rail stations LOCATION Close proximity to downtown Salt Lake City and University of Utah 7 EXECUTIVE SUMMARY MARMALADE 8 EXECUTIVE SUMMARY 67 89 66 Centerville 65 67 Bountiful Farmington Bay Waterfowl WoodsMARMALADE Cross Management APARTMENTS Area Grandview Lewis Peak North Peak Salt Lake 65 215 WESTPOINTE 15 89 Salt Lake City International CAPITOL HILL Emigration 80 80 Airport Oaks 80 Salt Lake City Silver Summit 80 179 154 80 Summit Park 202 186 89 71 Kimball 201 South Junction 201 Salt Lake Magna 215 224 Woodridge Snyderville 189 68 171 Terrace 171 West 171 Valley City Mill Creek 172 154 266 Gobblers Taylorsville Murray 215 Knob 248 Kearns 89 9 EXECUTIVE 173SUMMARY 173 152 111 85 71 190 68 Oquirrh 224 02 FINANCIAL ANALYSIS This 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 are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Unit Mix Analysis / MARMALADE APARTMENTS SCHEDULED POTENTIAL NO. OF AVG. RENTAL AVERAGE AVERAGE MONTHLY AVERAGE AVERAGE MONTHLY UNIT TYPE UNITS SF RANGE RENT RENT/SF INCOME RENT RENT/SF INCOME 1 Bed / 1 Bath 7 629 $815 - $920 $869 $1.38 $6,080 $1,000 $1.59 $7,000 Studio 1 380 $800 - $800 $800 $2.11 $800 $850 $2.24 $850 Totals/Weighted Averages 8 598 $860 $1.44 $6,880 $981 $1.64 $7,850 Gross Annualized Rents $81,660 $94,200 13% UNIT DISTRIBUTION STUDIO 13% 87% 1 BDR + 1 BATH 87% 11 FINANCIAL ANALYSIS Operating Statement / MARMALADE APARTMENTS Income Current Year 1 Notes Per Unit Per SF Gross Scheduled Rent 82,560 96,084 12,011 20.10 Physical Vacancy 0 0.0% (4,804) 5.0% (601) (1.01) Total Vacancy $0 0.0% ($4,804) 5.0% ($601) ($1) Effective Gross Income $82,560 $91,280 $11,410 $19.10 Expenses Current Year 1 Notes [3] Per Unit Per SF Real Estate Taxes 4,837 4,982 [3] 623 1.04 Insurance 2,321 2,391 299 0.50 Utilities 5,529 5,695 712 1.19 Repairs & Maintenance 2,036 2,097 [4] 262 0.44 Operating Reserves 2,000 2,000 [4] [5] 250 0.42 Management Fee 6,605 8.0% 7,302 8.0% [5] 913 1.53 Total Expenses $23,328 $24,467 $3,058 $5.12 Expenses as % of EGI 28.3% 26.8% Net Operating Income $59,232 $66,813 $8,352 $13.98 12 FINANCIAL ANALYSIS Operating Statement Notes / MARMALADE APARTMENTS [1] Year 1 Income based on being able to raise rents to market prices of at lease $1000 [2] 5% Vacancy added to Current and Year 1 [3] Year 1 Expenses were increased by 3% [4] Operating Reserve of $250 per Unit added to Current & Year 1 [5] 8% Management fee adeed to Current & Year 1 13 FINANCIAL ANALYSIS Financial Summary / MARMALADE APARTMENTS Summary Operating Data Price $1,050,000 Income Current Year 1 Gross Scheduled Rent $82,560 $96,084 Down Payment $262,500 25% Less: Vacancy/Deductions $0 5.0% $4,804 Number of Units 8 Total Effective Rental Income $82,560 $91,280 Price Per Unit $131,250 Less: Expenses 28.3% $23,328 26.8% $24,467 Price Per SqFt $219.67 Net Operating Income $59,232 $66,813 Rentable SqFt 4,780 Lot Size 0.13 Acres Approx. Year Built 1926 Operating Data Expenses Current Year 1 Real Estate Taxes $4,837 $4,982 Returns Current Year 1 Insurance $2,321 $2,391 CAP Rate 5.64% 6.36% Utilities $5,529 $5,695 GRM 12.72 10.93 Repairs & Maintenance $2,036 $2,097 Cash-on-Cash 3.79% 6.67% Operating Reserves $2,000 $2,000 Debt Coverage Ratio 1.20 1.36 Management Fee $6,605 $7,302 Total Expenses $23,328 $24,467 Expenses/Unit $2,916 $3,058 Expenses/SF $4.88 $5.12 # of Units Unit Type SqFt/Unit Scheduled Rents Market Rents 7 1 Bed / 1 Bath $869 $1,000 $1,000 1 Studio $800 $850 $850 14 FINANCIAL ANALYSIS 03 MARKET COMPARABLES This 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.