Beverly Place Apartments 105-Unit Multifamily Portfolio
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FOR SALE BEVERLY PLACE APARTMENTS 105-UNIT MULTIFAMILY PORTFOLIO JDS REAL ESTATE SERVICES, INC. 01 EXECUTIVE SUMMARY TABLE OF 02 PROPERTY DESCRIPTION CONTENTS 03 FINANCIALS EXCLUSIVELY LISTED BY 04 COMPARABLES KIDDER MATHEWS JDS REAL ESTATE SERVICES, INC. 05 MARKET OVERVIEW CHRIS ARMES, PRIMARY BROKER JENNIFER D. STEIN, CO-BROKER 760.613.9200 213.446.5366 [email protected] [email protected] LIC N° 01379750 LIC N° 6505385865 06 DEVELOPMENT BOOM KIDDER.COM JDS REAL ESTATE SERVICES, INC. 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. 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. Kidder Mathews 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. E KALAMAZOO ST LANSING, MI EXECUTIVE SUMMARY & PROPERTY DESCRIPTION FINANCIALS & COMPARABLES SUBJECT PROPERTY E KALAMAZOO ST E KALAMAZOO KIDDER.COM $83.42 $42,000 PRICE/SF PRICE/UNIT EXECUTIVE 105 Lansing, MI SUMMARY TOTAL UNITS SUBMARKET toilets, aerators, and faucets. The Situated adjacent to Lansing’s building’s units feature high-speed INVESTMENT SUMMARY central business district, Beverly internet access, ceiling fans, and Place contains 105 one-, two- and cable ready hookups; many units Price $4,200,000 three-bedroom units across three also enjoy balconies and patios. stories. The 83 one-bedroom, one- Average Price/Unit $40,000 bathroom units, 21 two-bedroom, Residents of Beverly Place enjoy the use of community laundry facilities Price/SF $77.85 one bathroom units and 1 three- and a surface parking lot. The Cap Rate bedroom, one-bathroom unit. 7.3% property benefits from its location (2020 Revenue) directly across from Lansing’s 13- acre Hunter Park and its recently- GRM 5 BEVERLY PLACE renovated pool and splash pad. Number of Units 105 Originally built in 1961/1972, Michigan State University, Frandor Beverly Place began renovations Shopping Center and the rest of Total Portfolio SF 53,944 in 2016 where 83% of the units have downtown Lansing are also nearby, been fully renovated, including the providing Beverly Place’s residents installation of new water saving with ample area amenities. LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 4 PROPERTY SUMMARY Address 1401 E Kalamazoo Year Built 1961 Number Of Buildings 5 Number Of Stories 3 Gross Building Size 53,944 SF Parking Surface Lot 1 Space per unit Number Of Units 105 1 Bed x 1 Bath (83) Unit Mix 2 Bed x 1 Bath (21) 3 Bed x 1 Bath (1) Assessor’s Parcel # 01-01-15-407-081 Rental Restrictions 3 Pet Limit | Breed Restrictions Electricity, Gas, Water & Sewer, Tele- Utilities BEVERLY phone & Internet Construction Wood Frame PLACE Type Of Building Garden Style Low Rise OFFERING TERMS Price $4,200,000 Price/Unit $40,000 Price/SF $77.85 # of Units 105 Year Built / Renovated 1972 / 2017 Building Size 53,944 SF Lot Size 4.05 Acres Cap Rate 7.3% (2020 Revenue) LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 5 UNIT AMENITIES High Speed Internet Heating Smoke Free Garbage Disposal Balcony Air Conditioning Ceiling Fans Wired for Cable Carpeting APARTMENT HIGHLIGHTS Self-Service Laundry Walk Score | 63 Across from Hunters Park Close proximity to Frandor Shopping Center, Michigan State University & Downtown Lansing 4.7 mi to Capital Region International Airport NEARBY SCHOOLS Riddle Elementary School Pattengill Academy Eastern High School LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 6 FORWARDS LOOKING 2020 FINANCIAL SUMMARY BEVERLY PLACE ANNUALIZED OPERATING DATA Current renovated pool and splash pad. Michigan Gross Potential Rent $847,800 State University, Frandor Shopping Center BEVERLY PLACE Vacancy $41,760 and the rest of downtown Lansing are also Situated adjacent to Lansing’s central nearby, providing Beverly Place’s residents Loss to Lease $-26,892 business district, Beverly Place contains with ample area amenities. Other Income $0 107 one-, two- and three-bedroom units across three stories. The 83 one-bedroom, Total Income $779,148 POTENTIAL RE-DEVELOPMENT one-bathroom units, 20 two-bedroom, one bathroom units and 1 three-bedroom, two- Although the portfolio is currently bathroom unit. Originally built in 1961/1972, positioned as workforce housing, Beverly Beverly Place began renovations in 2016 Place can be a significant Re-development ANNUALIZED OPERATING DATA where 83% of the units have been fully play. Beverly is well located between the renovated, including the installation of University and Downtown Lansing. The Current new water saving toilets, aerators, and entire corridor between Michigan State Taxes $82,392 faucets. The building’s units feature high- and Downtown is currently under major re- Insurance $21,845 speed internet access, ceiling fans, and development. A new Hospital is being built cable ready hookups; many units also enjoy in close proximity to the property as well On-Site Payroll $164,611 balconies and patios. as high-end Multi-Family, Condominium, and Retail assets. It is part of the cities Management Fee $32,987 Residents of Beverly Place enjoy the use of development plan to significantly upgrade Contract Services $7,209 community laundry facilities and a surface the corridor in the past and future years. parking lot. The property benefits from its They are very pro-development in the Repairs and Maintenance $19,339 location directly across from Lansing’s corridor. A 300 unit mixed-use project is Legal & Collection $15,385 13-acre Hunter Park and its recently- high on the city plannings list for the site. Telephone/Internet $4,385 Garbage Removal $2,990 Electricity $28,188 Gas $27,622 Sewer and Water $43,149 Misc. & Reserves $21,200 Total Operating Expenses $471,302 Net Operating Income $307,846 LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 7 FINANCIALS BEVERLY PLACE PRICING AND UNDERWRITING Address Price Price/Unit Price/SF CAP Rate BEVERLY PLACE 1401 E Kalamazoo $4,200,000 $40,000 $77.85 7.3% Lansing, MI 48912 UNIT MIX Gross Potential Unit Type Number of Units Average SF Price/Unit Price/SF Monthly Rent BEVERLY PLACE: 1 Bed, 1 Bath 83 472 $650 $1.38 $53,950 BEVERLY PLACE: 2 Bed, 1 Bath 21 672 $750 $1.12 $15,750 BEVERLY PLACE: 3 Bed, 1 Bath 1 2,000 $950 $0.48 $950 Total/Weighted Avg 105 Units 53,944 $692/Unit $1.10/SF $70,650 LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 8 LANSING CATHOLIC HIGH SCHOOL EASTSIDE Oak Park Frandor Shopping Center WEST LANSING Sparrow Hospital Reutter Hunter Park Municipal Park Park BEVERLY Transportation Museum RED Cedar PLACE Natural Area Scott GM Grand River Park Assembly Plant Crego Park POTTER PARK ZOO Lansing Railroad Depot Lansing Country Club Carl G Fenner MICHIGAN STATE Arboretum UNIVERSITY Forest Akers Golf Course Scott Woods Park EVERETT HIGH SCHOOL WAINWRIGHT ELEMENTARY OLD EVERETT NEIGHBORHOOD Risdale Park Cavanaugh Park RIO ELEMENTARY SCHOOL N Jolly Cedar Plaza Benjamin Davis Park LANSING, MI OFFERING MEMORANDUM KIDDER MATHEWS 9 SALES COMPARABLES BELMONT PARK, MARVIN GARDENS & BEVERLY PLACE # of Year Address Units Built Price Price/Unit Price/SF CAP Rate Sale Date 01 AUTUMN RIDGE APARTMENTS Common 618 1977 $34,500,000 $55,825 — 5/22/2014 900 Long Blvd laundry Lansing , MI 49811 02 WOODLAND LAKES APARTMENT 344 2004 $31,500,000 $91,570 $82.85 6.85% 6/30/2014 4320 Dell Rd Lansing, MI 48911 03 WATERS EDGE 7530 Waters Edge 120 1996 $7,000,000 $58,333 $51.07 7.45% 1/23/2015 Lansing, MI 48917 04 PLUMTREE APARTMENTS 229 Parkwood Dr 406 1969 $20,200,000 $49,754 $40.18 6.95% 3/29/2016 Lansing, MI 48917 05 FAIRFAX APARTMENTS 831 Brookside Ln 156 1988 $14,600,000 $93,590 $98.17 5.75% 12/9/2016 Lansing, MI 48917 06 SANDSTONE CREEK APARTMENTS 169 1975 $7,700,000 $46,107 $50.59 7.00% 2/26/2017 1110 Jenne St Lansing, MI 48917 07 ASHTON LAKE APARTMENTS 120 1989 $8,500,000 $70,833 $72.73 - 6/15/2018 2610 Marfitt Rd Lansing, MI 48911