Exclusive Investment Offering
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EXCLUSIVE INVESTMENT OFFERING Summerplace Apartments 112 Units | Las Vegas, NV EXCLUSIVE CONTACTS Patrick Sauter Art Carll-Tangora Antone Brazill, CCIM Managing Advisor Senior Advisor Senior Advisor 8945 W Russell Road T +1 702 534 1700 T +1 702 534 1701 T +1 702 278 3886 Las Vegas, NV 89148 [email protected] [email protected] [email protected] T +1 702 383 3383 www.naivegas.com EXECUTIVE SUMMARY THE OFFERING Offering Price $5,900,000 Price per Unit $52,679 27 N 28th St. Address Las Vegas, NV Year Built 1979 Number of Units 112 Land Size 3.14 AC Net Rentable SF 39,200 SF Average Unit Size 350 SF Market Rent $485 Current Occupancy 98% Proforma CAP Rate 6.55% E. Charleston Blvd. N 28th St. EXCEPTIONAL LOCATION, INTIMATE COMMUNITY Summer Place Apartments is comprised of seven, two story garden style buildings consisting of 112 studio units in 28 individually parceled four-plexes. Contruction is stucco over wood frame with built up tar roofs. The property features a gated entrance, swimming pool, lush mature landscaping, ample parking, on-site laundry facilities and a clubhouse/leasing office with a television room and pool table. Summer Place offer residents an affordable living environment within minutes of downtown, the "Strip" and other significant employment centers. EXCEPTIONAL ACCESSIBILITY Summerplace is located within the Downtown Las Vegas submarket near the intersection of Fremont Street and Eastern Avenue. The property are less than two miles from the downtown hotel and casinos and within one mile of the US 95 freeway. Downtown is undergoing a transformation due the City of Las Vegas' Downtown Redevelopment Agency leading the way with several new projects completed and many more planned. On the heels of the hugely successful Las Vegas Premium Outlet Mall, construction has begun on the World Furniture Mart, which will consist of several million square feet of retail space. Within one mile of the property the City has designated a new entertainment district which will be comprised of nightclubs, restaurants and bars, this non-gaming area will feature live music nightly along several blocks of Fremont Street. 515 15 "The Strip" Las Vegas Blvd. 15 Maryland Pkwy. E. Sahara Ave. LV Downtown Valley E. Bonanza Rd. High School E. Charleston Blvd. S. Eastern Ave. Sunrise Acres Elementary School Roy Martin Middle School 515 Fremont St. PROPERTY DESCRIPTION PROPERTY DESCRIPTION Units: 112 27 N 28th St. Address: Las Vegas, NV 139-36-413-001 through 009 Parcel Number: (4 Plex Parcels) Year Completed: 1979 Land Size: 3.14 AC Net Rentable SF: 39,200 SF Average Unit Size: 350 SF Floorplans: 1 Zoning: R-PD34 Parking Spaces: TBD PROPERTY AMENITIES Summer Place Apartments, located in Downtown Las Vegas, NV, offers spacious studios for those interested in a slow-paced lifestyle. Each studio apartment includes air conditioning and heating, a private bath.,and kitchen with modern appliances. Unfurnished and furnished units are available. Within the warm and cozy atmosphere, the property features controlled access, a refreshing swimming pool, clubhouse, a laundry facility, and an on-site maintenance. Summer Place Apartments is nestled in a quiet, mature, and serene community with night security, and 24 hour video surveillance. Located directly on the CAT bus line and convenient to Downtown, freeways and the famous Las Vegas Strip. PRIVATE SPACES: • Furnished Available SOCIAL SPACES: • Laundry Facility • Residents Pay Electricity • Clubhouse with Billiards Table • Full Kitchens • On Public Transportation • Private Bath • Controlled Access • Assigned Parking Space • Swimming Pool Ample Parking • Private Entrances • FINANCIAL ANALYSIS UNIT MIX TOTAL MARKET RENT UNIT TYPE SQFT UNITS RENTS PER SF Studio 112 350 $485 $1.39 *Rents Quoted January 2018 FINANCIAL ANALYSIS Pro Forma Year 1 Pro Forma Operating Income 2017 Per Unit Per Unit Per Unit Current Rent roll (4% Growth) GPRI/Economic Rent $651,840 $5,820 $677,914 $6,053 Vacancy Loss $(13,037) $(116) $(13,558) $(121) Bad Debt/Other $(6,518) $(58) $(6,779) $(61) Net Rental Income $598,741 $5,346 $632,285 $5,645 $657,576 $5,871 Other Income $3,332 $30 $31,614 $282 $32,879 $294 Effective Gross Income (EGI) $602,073 $5,376 $663,899 $5,928 $690,455 $6,165 Pro Forma Year 1 Pro Forma Forecasted Expenses 2017 Per Unit Per Unit Per Unit Current Rent roll (4% Growth) Payroll $92,138 $823 $100,800 $900 $100,800 $900 Administration $12,331 $110 $16,800 $150 $16,800 $150 Management $0 $0 $19,917 $178 $20,714 $185 Repairs & Maintenance $29,292 $262 $44,800 $400 $44,800 $400 Utilities $60,063 $536 $61,865 $552 $61,865 $552 Advertising $13,806 $123 $11,200 $100 $11,200 $100 Insurance $17,843 $159 $18,378 $164 $18,378 $164 Property Tax (Actual) $28,219 $252 $29,348 $262 $29,348 $262 Turnover Total Expenses $253,692 $2,265 $303,108 $2,706 $303,905 $2,713 Year 1 Pro Forma Net Operating Income 2017 Per Unit Current Pro Forma Per Unit Per Unit (4% Growth) NOI $348,381 $3,111 $360,791 $3,221 $386,550 $3,451 CAP Rate 5.90% 6.12% 6.55% NOTES TO FINANCIAL UNDERWRITING Assumptions for the proforma are based on the Property’s characteristics, as well as market-driven revenue and expense trends. REVENUE • Proforma Gross Potential Income is generated using the current Market Rent Schedule plus 4% growth. • Proforma Economic Vacancy is 3% • Other income is estimated at 5% of Net Rental Income per unit per month. FORECASTED EXPENSES • Payroll is forecasted at the equivalent of $900 per unit per year reflecting market expense for staffing requirements of a manger, leasing agents, maintenance supervisor, maintenance techs and porters. • Administration is forecasted at $150 per unit per year reflecting market averages for similar properties. • Management fees are forecasted 3% of Gross Operating Income, currently no management fee is paid by the property. • Repairs & Maintenance expenses are forecasted at $400 per unit per year, consistent with market averages for similar size, age, and construction quality. • Utilities are forecasted to be the actual utility amount with a 3% increase. • Advertising expenses are forecasted to be $100 per unit per year • Property Insurance is forecasted to be $164 per unit per year • Property Tax are calculated on the current amount plus 4%. RENT COMPARABLES RENT COMPARABLES VETERANS RIDGE ON SIEGEL SUITES S SUMMERPLACE 1 2 3 4 VILLAGE Desert Rose CHARLESTON CHARLESTON II 50 N 21st St 29 N 28th St 27 N 28th St 3040 E Charleston Blvd 2900 E Charleston Blvd Built 1979 Built 1980 Built 1978 Built 1984 Built 1940 112 Units 204 Units 236 Units 477 Units 232 Units # PROPERTY NAME AVERAGE SF STUDIO RENT/SF RUBS 1 Veterans Village 356 $600 $1.81 No 3 Desert Rose Apartments 298 $465 $1.60 No 2 Siegel Suites Charleston II 523 $775 (Monthly) $1.48 Yes 4 Ridge on Charleston 385 $475 $1.46 No 6 Summerplace Apartments 350 $485 $1.39 No *Rents Quoted January 2018 RENT COMPARABLES MAP S Summerplace 1 Veterans Village 2 Desert Rose 3 Ridge on Charleston 4 Desert Plaza 4 Siegel Suites Charleston II 4 1 2 S 5 3 LAS VEGAS OVERVIEW HIGHLIGHTS • Fast growing population • 3rd largest convention destination • International tourism hub • Favorable business tax structure • No state income tax • 24-hour economy • Growing tech-industry environment • A young and highly productive work force • Modern transportation infrastructure • Attractive quality of life and moderate climate • Affordable cost of living • Favorable shopping, dining & entertainment LOCATION Located in Clark County in Southern Nevada, Metropolitan Las Vegas is the 31st largest MSA in the United States, with over two million residents. With 320 days of sunshine and an average year round temperature of 80 degrees, Las Vegas is an internationally renowned tourism and convention destination. After lagging for most of the economic recovery, Las Vegas has begun to see increases in job growth, home prices, construction, tourism, and population. As the national recovery progresses, people will continue to be drawn to Las Vegas for its employment opportunities, warm weather, quality of life, and affordable cost of living. POPULATION With over two million residents, the Las Vegas MSA is home to approximately 70% of the state’s population. Las Vegas has traditionally counted robust population growth as one of its key economic drivers. Over the early part of the last decade, the metro area grew at rate that was 3.5 times faster than that of the nation. This growth was fueled by high levels of in-migration, averaging 65,000 people from 2000 to 2008. Like most of the nation, population growth suffered during the recession and Las Vegas saw minimal increases. People have once again begun migrating to Las Vegas. Population growth in the region is driven by trends, such as the shifting of the nation’s population center further to the west, and opportunities for jobs in industries like healthcare, logistics, and technology, as well as a recovering tourism industry. Projections show the region is expected to grow three percent annually over the next four years, reaching 2.3 million people. One of the market’s strong aspects is that Las Vegas has a large concentration of residents in the 20 to 34-year-old demographic, the group most likely to rent apartments. This group is set to increase by nearly 16% over the next five years, which is substantially higher than any other western US market. HOUSING MARKET Another positive economic indicator is Las Vegas’s improving housing market. The total number of existing homes, condos and townhomes sold in January 2017 increased 14.1% for homes and 13.2% for condos and townhomes from January 2016.