KRAMER's MIDTOWN 645 South Virginia Street • Reno, NV 89501 1 NON - ENDORSEMENT and DISCLAIMER NOTICE
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Offering Memorandum KRAMER'S MIDTOWN 645 South Virginia Street • Reno, NV 89501 1 NON - ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and 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. © 2017 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. KRAMER'S MIDTOWN Reno, NV ACT ID Y0420017 2 KRAMER'S MIDTOWN TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo Floor Plans FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Acquisition Financing MARKET COMPARABLES 03 Sales Comparables Rent Comparables 3 KRAMER'S MIDTOWN INVESTMENT OVERVIEW 4 KRAMER'S MIDTOWN OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA Price $2,400,000 CURRENT YEAR 1 MAJOR EMPLOYERS Down Payment 100% / $2,400,000 CAP Rate 5.06% 5.53% Loan Type All Cash GRM 13.54 12.62 Net Operating Price/Unit $160,000 $121,376 $132,786 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Price/SF $214.65 5.06% / $121,376 5.53% / $132,786 U-Haul 4,982 After Debt Service Number of Units 15 Total Return 5.06% / $121,376 5.53% / $132,786 VA Sirra Nev Hlth Care Systems 3,000 Rentable Square Feet 11,181 Peppermill Hotel Casino 2,250 Number of Buildings One Circus Circus Reno Ht & Casino 2,000 Number of Stories Three St Marys Health Network 1,800 Year Built / Renovated 1977 / 2016 County of Washoe 1,615 Lot Size 0.17 acre(s) Grand Sierra Resort and Casino 1,529 Grand Sierra Resort Corp 1,500 US Post Office 1,461 UNIT MIX Saint Marys Regional Med Ctr 1,370 NUMBER APPROX. UNIT TYPE Club Cal-Neva 1,300 OF UNITS SQUARE FEET Atlantis Casino Resort 1,000 2 Efficiency 213 2 Studio 600 4 1 Bedroom 814 7 2 Bedroom 900 DEMOGRAPHICS 15 Total 11,181 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 22,376 130,658 232,280 2016 Census Pop 21,037 123,265 219,658 2016 Estimate HH 11,900 54,679 93,472 2016 Census HH 11,143 51,919 88,962 Median HH Income $27,539 $35,196 $41,515 Per Capita Income $24,259 $23,341 $25,446 Average HH Income $44,293 $54,490 $62,161 #5 KRAMER'S MIDTOWN OFFERING SUMMARY INVESTMENT OVERVIEW The City of Reno benefits from the state of Nevada having no personal income tax, no state tax, no franchise tax, no inventory tax and no gift tax. Large, publicly-traded companies have moved their operations to the Reno area for these tax benefits. With a current student population of 22,800, the University of Nevada, Reno has experienced unprecedented growth and is now projected to enroll 30,000 students by the year 2020. Quality of life, employment opportunities, and higher education continue to propel the northern Nevada economy. Northern Nevada continues to experience an economic boom with Tesla (6,500 jobs projected) and Switch Digital (2,500 jobs projected) leading the charge. The Tahoe- Reno Industrial Center (TRI-Center) now has over 125 companies that have relocated to the Center. News of Google partnering with a yet to be determined auto manufacturer bringing 25,000 new jobs has been rumored, these factors will continue to propel the Reno economy for the foreseeable future. The investment appeal of Kramer’s Midtown is driven by free-and-clear delivery, stable operations with rent increases and major, modern renovations throughout. The rent comparables will show that this asset garners some of the highest rents for the Midtown area. With all that has been done to the property, there remains upside potential: further rent increases could be realized by obtaining a higher utility bill-back percentage, another strategy would be to install washers and dryers in every unit. Other opportunities to enhance the property involve constructing garages for all fifteen units as well as adding an on-site fitness facility. All of this would allow an investor to capitalize on an already well-performing asset. INVESTMENT HIGHLIGHTS . Offered Free and Clear; Buyer Can Place New Debt . Substantial Modern Renovations Done in 2016 Complement Midtown’s Upbeat Reputation . Premier Location in the heart of Reno's thriving Midtown District 6 KRAMER'S MIDTOWN OFFERING SUMMARY PROPERTY OVERVIEW Kramer's Midtown is located in the heart of Reno's thriving Midtown District. The property was completely renovated in 2016 to emulate Midtown's atmosphere. The vibrancy of the neighborhood is reflected in the property's colors. The exterior demanded substantial effort and major changes in order to complement Midtown's upbeat reputation. In addition to its appearance, Kramer's includes newly renovated interiors, state-of-the-art security, a pleasing landscape, gated access, a laundry facility and off-street parking. The property features a mix of efficient units, studios, one-bedroom/one-bath units and two-bedroom/two-bath units. Kitchens include granite countertops, wood-plank floors, stainless steel appliances, barn-style doors, insulated windows and decorative window coverings. Kramer's provides twenty onsite parking spaces; half of them are covered. An elevator, secure access, and full- time management also accompany the property. The location is ideal for shopping, dining and entertainment. Just steps from your apartment you will find Great Full Common Area Amenities Gardens, Michael's Deli, Newman's Deli, Two Chicks, Mari Chuy's Mexican Kitchen, Truckee Bagel Company and numerous quaint shops and eateries. Newly Installed Secured Access The City bus lines stop in front of Kramer's with access throughout the City and University. Less than three . Secure Bike Storage Area minutes away are three of Reno's largest employers; St. Mary's Health Systems, the City of Reno, and Wells . Carports and Open Parking Fargo. Kramer's is also in close proximity to the Nevada Museum of Art, the Pioneer Center for the Performing . Laundry Room Arts, the Bruka Theater and the famous Downtown River Walk. Close to many Great Restaurants and Downtown Unit Amenities . Granite Countertops Throughout . Wood Plank Flooring . Brushed Nickle Finishes and Hardware . Sleek Looking, Modern Barn Doors . Updated Windows #77 KRAMER'S MIDTOWN OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING PROPOSED FINANCING Property Kramer's Midtown First Trust Deed Price $2,400,000 Loan Type All Cash Property Address 645 South Virginia Street, Reno, NV Debt Coverage Ratio Assessors Parcel Number 011-226-41 Zoning MUSV SITE DESCRIPTION Number of Units 15 Number of Buildings One Number of Stories Three Year Built/Renovated 1977/2016 Rentable Square Feet 11181 Lot Size 0.17 acre(s) Type of Ownership Fee Simple Density High Parking 20 Spaces Parking Ratio 1.33:1 Landscaping Mature Topography Flat UTILITIES Water TMWA Phone AT&T; Charter Electric NV Energy Gas NV Energy CONSTRUCTION Foundation Concrete Framing Wood Frame Exterior Brick and Wood Parking Surface Concrete Roof Flat MECHANICAL HVAC Wall Unit Heating & Air Conditioning Wiring Copper 8 KRAMER'S MIDTOWN REGIONAL MAP 9 KRAMER'S MIDTOWN LOCAL MAP 10 KRAMER'S MIDTOWN PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 1211 KRAMER'S MIDTOWN FINANCIAL ANALYSIS 12 KRAMER'S MIDTOWN FINANCIAL ANALYSIS RENT ROLL SUMMARY 13 KRAMER'S MIDTOWN FINANCIAL ANALYSIS RENT ROLL DETAIL 14 KRAMER'S MIDTOWN FINANCIAL ANALYSIS OPERATING STATEMENT 15 KRAMER'S MIDTOWN FINANCIAL ANALYSIS PRICING DETAIL 16 KRAMER'S MIDTOWN ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC? CAPABILITIES Optimum financing solutions to MMCC—our fully integrated, dedicated financing arm—is committed to enhance value providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most Our ability to enhance buyer competitive rates and terms.