San Antonio, Tx 78210
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DELMAR PLACE APARTMENTS
120 DELMAR STREET SAN ANTONIO, TX 78210
Offering Memorandum SAN ANTONIO, TX | 1 LISTED BY: JOSUE POSADA CRAIG IRVIN DAVID HARRINGTON Associate Associate EVP & National Director Multifamily Multifamily Multifamily [email protected] [email protected] [email protected] dir: (512) 361 1048 dir: (512) 817 4975 dir: (310) 295 1170 mob: (832) 277 4810 mob: (832) 797 8440 mob: (310) 497 5590 Lic #: 710235 (TX) Lic #: 678230 (TX) Lic #: 01320460 (CA)
2 | 120 DELMAR ST Offering Memorandum DELMAR PLACE APARTMENTS
SAN ANTONIO, TX 78210
TABLE OF CONTENTS
04 06 12 Property Financial Area Overviews Overview Overview
SAN ANTONIO, TX | 3 DELMAR PLACE APARTMENTS
PROPERTY OVERVIEW
4 | 120 DELMAR ST DELMAR PLACE APARTMENTS 120 Delmar St | San Antonio, TX 78210
• Delmar Place Apartments is located in the Denver Heights area of San Antonio, near North New Braunfels, I-10 and I-37.
• Within walking distance of Poe Middle School. Herff Elementary and Brackenridge High School are a short drive away.
• Located close to McCreeless Corner Shopping Center, HEB, many restaurants and local businesses.
• Our location offers quick access to Brooks City Base, SAMC, the AT&T Center and the downtown area.
SAN ANTONIO, TX | 5 DELMAR PLACE APARTMENTS
FINANCIAL OVERVIEW
6 | 120 DELMAR ST Investment Summary
120 Delmar Street Property Address: San Antonio, TX 78210
List Price: Contact Broker for Details
Number of Units: 22
Year Built: 1986
Gross Sq. Ft.: 17,340
Average S.F. Per Unit: 788
Lot Size (Acres): 0.52 DELMAR ST
Density: 42
UNIT MIX
Current Current Market Market Rent Market Total Units Unit Mix Unit Mix % Avg. S.F Avg. Rent P.S.F. Avg Rent Monthly Rent Rent P.S.F Monthly Rent
1 1+1 5% 580 $1.12 $650 $650 $675 $1.16 $675 5 2+1 45% 775 $0.97 $770 $7,697 $795 $1.00 $7,950 11 2+1U 36% 775 $0.99 $765 $6,120 $795 $1.03 $6,360 3 2+1LU 9% 865 $0.98 $850 $1,700 $895 $1.03 $1,790 1 2+1L 9% 865 $0.98 $850 $1,700 $895 $1.03 $1,790 1 3+1 5% 900 $1.19 $1,075 $1,075 $1,100 $1.22 $1,100 Scheduled Monthly Rent: $17,242 $17,875 Scheduled Yearly Rent: $206,904 $214,500
SAN ANTONIO, TX | 7 ANNUALIZED OPERATING SUMMARY
Current Pro Forma Market
Scheduled Gross Income: $206,976 $206,976 Current $214,500 4% Upside
Less Vacancy Reserve: $9,210 4.5% $16,558 8.0% $17,160 8.0%
Laundry Income: $1,500 $1,500 $1,500
RUBS Income: $10,320 $10,320 $10,320
Other Income: $0 $0 $0
Gross Operating Income: $209,585 $202,238 $209,160
Expenses: $91,561 44.2% $95,994 46.38% $96,409 44.95% *
Net Operating Income: $118,024 $106,244 $112,751
Loan Payments: $77,621 $77,621 $77,621
Pre-Tax Cash Flow: $40,403 13.0% $28,623 9.23% $35,130 11.33% **
Plus Principal Reduction: $19,134 $19,134 $19,134
Total Return Before Taxes: $59,537 19.21% $47,757 15.41% $54,264 17.50% **
* As a percent of Scheduled Gross Income
** As a percent of Down Payment
8 | 120 DELMAR ST PRO FORMA ANNUAL OPERATING SUMMARY % of SGI Current Per Unit * Pro Forma Per Unit Market Per Unit % of SGI
Property Taxes 2.704% x Sale Price 12.31% $25,794 $1,172 $25,794 $1,172 $25,794 $1,172 15.6%
Off-Site Management 6.0% x GOI 2.91% $6,105 $277 $12,134 $552 $12,550 $570 5.9%
Insurance $0.60 x GSF 4.92% $10,308 $469 $10,404 $473 $10,404 $473 4.9%
On-Site Management $0 x Units 3.03% $6,356 $289 $0 $0 $0 $0 0.0%
Repairs & Maintenance $250 x Units 2.33% $4,875 $222 $5,500 $250 $5,500 $250 2.6%
Turnover $150 x Units 0.00% $0 $0 $3,300 $150 $3,300 $150 1.5%
Landscaping $100 x Units 2.40% $5,040 $229 $2,200 $100 $2,200 $100 1.0%
Pest Control $15 x Units 0.16% $336 $15 $336 $15 $336 $15 0.2%
Utilities** $1,000 x Units 11.68% $24,480 $1,113 $22,000 $1,000 $22,000 $1,000 10.3%
Trash $125 x Units 2.11% $4,428 $201 $2,750 $125 $2,750 $125 1.3%
General Administration $175 x Units 1.83% $3,840 $175 $3,840 $175 $3,840 $175 1.8%
Total Expenses 43.69% $91,561 $4,162 $95,994 $4,363 $96,409 $4,382 44.9%
*Estimates unless otherwise stated
**All units are all bills paid Current Per Unit % of SGI
Non-controllable expenses: Taxes, Ins., Reserves: $36,102 $1,641 17.4%
Total Expense without Taxes $65,767 $2,989 31.78%
SAN ANTONIO, TX | 9 RENT ROLL Unit Mix Rent Market Rent
101 2+1U $765 $765 102 2+1U $765 $765 103 2+1 $866 $745 104 2+1U $765 $765 105 2+1U $765 $765 106 2+1U $765 $765 107 2+1U $765 $765 108 2+1U $765 $765 201 2+1U $715 $745 202 2+1 $866 $745 203 2+1 $715 $745 204 2+1U $745 $765 205 2+1U $765 $765 206 2+1U $765 $765 207 2+1 $650 $745 208 2+1 $665 $745 300 3+1U $1,075 $1,075 301 1+1 $650 $650 401 2+1LU $865 $865 402 2+1L $845 $745 403 2+1LU $835 $865 404 2+1LU $865 $865
Totals $17,242 $17,185 22 Averages $784 $781
10 | 120 DELMAR ST SAN ANTONIO, TX | 11 AREA OVERVIEW
SAN ANTONIO, TEXAS San Antonio is now the seventh (7th) largest city in the United States, second largest in the State of Texas, and boasts one of the fastest growing metropolitan areas in the country. • The city added 31,200 new jobs over the last year • Expanded employment by 3.0%, which is 3rd among the Top 50 Metros in America. • San Antonio ranked 8th as Forbes’ “America’s Cities of the Future” this year. • San Antonio titled “America’s Friendliest City,” by Travel + Leisure Magazine • San Antonio ranked 2nd in the largest increase in millennials from 2010 to 2015 from a study from Bookings Institution.
12 | 120 DELMAR ST LIVING IN SAN ANTONIO
San Antonio is not shy to start-ups, especially in recent years. With concentrated efforts on the tech district, the city adopted a new nickname “Silicon San Antonio” due to the city’s embrace of the tech industry. Last year, large streaming service Hulu opened a viewer experience center in Alamo City. TaskUs, Google Fiber, and CaptureRX are opening local offices in San Antonio. Additionally, just up I-35, exciting new relocations are taking place, such as Amazon’s fulfillment center and Urban Mining Company. Thanks to this, the city’s rapid growth is matched with new career opportunities and more to come in the future.
A city rich in tradition and history meets a unique culture that welcomes growth and success. As the 7th largest metropolitan city in the U.S, and still growing, San Antonio is no stranger to new possibilities. Placed perfectly in the heart of the Texas Hill Country straddling South Texas and Central Texas, San Antonio is in the center of a booming corridor with many business-friendly elements. San Antonio’s historically steady population growth has established a local market of 2.3 million residents, one that is projected to increase by 28% in the coming future. Moreover, there is an increasing population of young professionals flocking to central San Antonio, enticed by areas such as Pearl Brewery, Alamo Heights, and downtown, which offer an urban lifestyle with endless shopping, nightlife, culture, fine dining, and employment opportunities.
With core values such as safety, integrity, and service, it’s no surprise that San Antonio was ranked #1 in America’s Friendliest Cities by Travel + Leisure. Other notable mentions include National Geographic Traveler’s one of the “Best of the World” destination for 2018, #3 in the 5 most underrated cities in the U.S. by Conde Nast Traveler, and within the top 20 of the Milken Institute’s annual list of best-performing cities. While San Antonio is crowned as one of the largest American cities, it still remains affordable in regard to the cost of living compared to other cities among its rank.
SAN ANTONIO, TX | 13 The Riverwalk The Alamo The Tower of the Americas
ARANSAS AVE
DELMAR ST
PORTER ST
S NEW BRAUNFELS AVE
14 | 120 DELMAR ST Appliance Parts Company
HWY 37 Thomas Nelson Page Middle School
ARANSAS AVE
PORTER ST
DELMAR ST
SAN ANTONIO, TX | 15 SUBMARKET/NEIGHBORHOOD The Eastside neighborhood of San Antonio is bordered by I-37 to the West, I-10 to the South, Loop 410 to the East and I-35 to the North. Delmar Place is directly located in East San Antonio. Within the Eastside of San Antonio lies the Alamodome, AT&T Center & and St Phillips College.
The Alamodome is located just east of downtown in the Denver Heights neighborhood and is home to the UTSA Roadrunners and the newly formed San Antonio Commanders football teams, as well as playing host to many other sporting events including NCAA Alamo Bowl and Final Four Basketball tournament. South of the Alamodome off the corner of Cherry St and Essex St are plans in motion to build a $150 million ‘Pearl- like’ mixed-use district with the first phase of the 8-acre project transforming a former pallet manufacturing site into 80,000 square feet of creative office space, 65,000 square feet of retail, 248 apartments, 160 condominiums, 80 townhomes and a food hall.
The AT&T center is home to the San Antonio Spurs and the San Antonio Rodeo both of which provide hundreds of millions of dollars in economic impact to the neighborhood and surrounding city. The 2018 San Antonio Rodeo broke its attendance record while selling out 18 of its 21 shows. According to the Bexar County Commissioner, Tommy Calvert, there are plans moving forward on a master-planned mixed-use zone surrounding the AT&T center in order to give patrons a place to go before and after events at the center.
St. Phillips College, located between E-Commerce and Martin Luther King Dr, is a public community college that is part of the Alamo Colleges District and serves over 11,000 students in more than 70 different academic disciplines.
With the City of San Antonio moving forward in their efforts in revitalizing the neighborhood, the East San Antonio submarket is primed to become one of the best rental submarkets in the city due to its proximity downtown and its ability to take advantage of its current below-market rents.
16 | 120 DELMAR ST EMPLOYERS
PORT SAN ANTONIO
Port San Antonio is a public entity created to redevelop the 1,900 acres once occupied by Kelly Air Force base. Since its beginning in 2007, Port San Antonio has become home to over 80 public and private- sector employers that use over 10 million square feet of commercial and industrial space. With employment of over 13,000 and an economic impact of over $5 billion, Port San Antonio is one of the biggest employers in the San Antonio region. In addition to being a large employer for the residents of South San Antonio, the port of San Antonio is located in a Foreign-trade zone which allows for the deferral or elimination of import duties making it attractive for more employers to move to the 1,900 acres.
H-E-B
A supermarket chain, is one of the largest privately held companies in America, with 350 stores throughout Texas and headquartered in Downtown San Antonio. Home to approximately 20,000 employees and annual sales in excess of $21 billion. Also known for their philanthropic culture, HEB donates five percent of pre-tax profits to charity
LACKLAND AIR FORCE BASE
Lackland Air Force Base is part of Joint Base San Antonio which includes US Fort Sam Houston and US Air Force Randolph Air Force Base. Lackland AFB is known for being the sole location for Basic Military Training for active duty Air Force, Air Force reserve and Air National guard. In all, Joint Base San Antonio is the largest single base in the Department of Defense and employs around 80,000 as of 2016.
San Antonio’s powerhouse employers support a healthy and diverse economy – a blend of well-established financial services, rapidly growing biomedical and biotech sectors, a booming new energy sphere, a flourishing IT, and cybersecurity field and a robust manufacturing sector that produces everything from aircrafts to Toyota trucks. The city’s central location has made it the hub for economies in the South Central Texas region and Mexico. San Antonio’s employment in March 2018 was 1,186,154 compared to 1,160,544 in March 2017. The metro’s unemployment rate was 3.5% compared to 4.1% in Texas and 4.1% in the U.S in the same time period.
SAN ANTONIO, TX | 17 POPULATION AT A GLANCE
1.512 M $67,980 3.2% POPULATION MEDIAN UNEMPLOYMENT HOUSEHOLD INCOME RATE DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile
2010 Census 8,225 97,758 243,036
2019 Estimate 9,376 111,800 278,169
2024 Projection 10,102 120,429 299,712
% Change: 2010 to 2019 13.99% 14.36% 14.465
% Change: 2019 to 2024 7.74% 7.72% 7.75%
Households 1 Mile 3 Mile 5 Mile
2010 Census 3,201 36,217 89,974
2019 Estimate 3,660 41,651 103,435
2024 Projection 3,957 45,039 111,747
% Change: 2010 to 2019 14.34% 15.00% 14.96%
% Change: 2019 to 2024 8.12% 8.13% 8.04%
Income 1 Mile 3 Mile 5 Mile
Average HH Income $65,158 $66,249 $76,491
18 | 120 DELMAR ST SAN ANTONIO, TX | 19 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of The Property located at 120 Delmar Street, San Antonio, TX (“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
20 | 120 DELMAR ST 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: . • A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary: • Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.
Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/ License No. Email Phone Associate
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date
Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov SAN ANTONIO, TX | 21 IABS 1-0 DELMAR PLACE APARTMENTS
SAN ANTONIO, TX 78210
Offering Memorandum
LISTED BY
JOSUE POSADA CRAIG IRVIN DAVID HARRINGTON Associate Associate EVP & National Director Multifamily Multifamily Multifamily [email protected] [email protected] [email protected] dir: (512) 361 1048 dir: (512) 817 4975 dir: (310) 295 1170 mob: (832) 277 4810 mob: (832) 797 8440 mob: (310) 497 5590 Lic #: 710235 (TX) Lic #: 678230 (TX) Lic #: 01320460 (CA)
22 | 120 DELMAR ST