WESTMINSTER APARTMENTS Macon, GA NON - ENDORSEMENT and DISCLAIMER NOTICE
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Offering Memorandum WESTMINSTER APARTMENTS Macon, GA 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. WESTMINSTER APARTMENTS Macon, GA ACT ID Y0230385 WESTMINSTER APARTMENTS TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Pricing Detail Acquisition Financing Growth Rate Projections Cash Flow MARKET COMPARABLES 03 Sales and On-Market Comparables Rent Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis WESTMINSTER APARTMENTS INVESTMENT OVERVIEW 4 WESTMINSTER APARTMENTS OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA Price $1,400,000 CURRENT PROFORMA - YEAR 1 Down Payment 30% / $420,000 CAP Rate 9.50% 10.82% MAJOR EMPLOYERS Loan Amount $980,000 GRM 5.87 5.66 Net Operating Loan Type Proposed New $132,980 $151,425 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 4.50% / 30 Years 17.47% / $73,394 20.44% / $85,839 Bibb County Board Education 4,200 After Debt Service Price/Unit $35,000 Total Return 21.24% / $89,203 24.37% / $102,375 Personnel Department 3,800 Price/SF $31.53 Central GA Hlth Systems Inc 3,601 Number of Units 40 Hospice of Central Georgia 3,300 Rentable Square Feet 44,400 Professional Systems LLC 3,200 Year Built / Renovated 1972 / 2014 Corporation of Mercer Univ 1,632 Mercer Univ Schl Medicine 1,200 County of Bibb 863 Norfolk Southern Corporation 535 UNIT MIX BellSouth 500 NUMBER APPROX. UNIT TYPE McDonalds 489 OF UNITS SQUARE FEET Armstrong World 453 4 1 Bedroom 600 24 2 Bedroom 1,100 12 3 Bedroom 1,300 DEMOGRAPHICS 40 Total 44,400 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 5,503 49,322 96,530 2016 Census Pop 5,563 49,335 96,520 2016 Estimate HH 2,195 18,603 37,080 2016 Census HH 2,222 18,543 37,076 Median HH Income $26,281 $25,819 $31,171 Per Capita Income $14,424 $16,022 $20,062 Average HH Income $35,994 $41,811 $50,811 #5 WESTMINSTER APARTMENTS OFFERING SUMMARY INVESTMENT OVERVIEW PROPERTY OVERVIEW: Marcus & Millichap is pleased to present for sale the Westminster Apartments located at 1655 North Atwood Drive, Macon, Georgia 31204. Built in 1972, the property is a 40-unit, townhome-style apartment complex that comprises four 1 bedroom/1 bath units, 24 2 bedroom/1.5 bath units, and 12 3 bedroom/1.5 bath units. Total rentable square footage for the property is 44,400 SF. Each unit features a washer/dryer hookup, central heating and air conditioning, ceiling fans, and complete kitchen appliances including a trash disposal and dishwasher. MARKET OVERVIEW: Macon (officially MaconBibb County) is a city located in the state of Georgia, United States. Macon lies near the geographic center of the state, approximately 85 miles (137 km) south of Atlanta, hence the city's nickname "the Heart of Georgia." Settled near the fall line of the Ocmulgee River, Macon is the county seat of Bibb County and had a 2014 estimated population of 153,691. Macon is the principal city of the Macon metropolitan area, which had an estimated population of 231,259 in 2014. Macon is also the largest city in the MaconWarner Robins Combined Statistical Area (CSA), a larger trading area with an estimated 417,473 residents in 2014; the CSA abuts the Atlanta metropolitan area just to the north. The subject property is located off of Columbus Road (2014 Average Daily Traffic Counts: 32,900 Vehicles per Day) which feeds from Mercer University Drive; the property is also located a half mile from Eisenhower Parkway (2015 Average Daily Traffic Counts: 21,200 Vehicles per Day). Both thoroughfares flank Macon Mall and other various retail shopping centers that feature prominent retailers and eateries such as Olive Garden, Macy's, Burlington Coat Factory, Chick-fil-A, BB&T, Applebee's, The Home Depot, PetSmart, Guitar Center, Marshalls, Target, Walmart Supercenter, Best Buy, Kroger, and much more. The property is also surrounded by many residential neighborhoods and housing developments . Located approximately two miles from the property are entry and exit points to Interstate 475. Also located approximately 2.5 miles from the property is Middle Georgia State University - Macon Campus. INVESTMENT OVERVIEW: The Westminster Apartments is being offered for $1.4 Million or a 9.50% cap rate on current income. This property is ideal for an investor who is looking to acquire an asset that not only is generating generous cash flows but also does not need a lot of hands-on management from the potential owner. The current owner has maintained a below market expense-to-income ratio at 36.7%. Current physical occupancy is at 88% versus below 50% when the current owner took over the property. Two units are currently being used as an office and additional storage space. A potential investor has the opportunity to transition those two units into profit-generating units. #6 WESTMINSTER APARTMENTS OFFERING SUMMARY INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS ▪ Price per Unit: $45,000; 88% Physical Occupancy ▪ Excellent 5-Mile Demos: Population - 96,530 People; Avg. HHI - $50,811 ▪ Current CAP: 9.50% | Proforma CAP: 10.82% ▪ Potential 17.47% Cash-on-Cash Return ▪ Centrally Located to Lots of Retail Shopping Options and Other Services #7 WESTMINSTER APARTMENTS OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING PROPOSED FINANCING Property Westminster Apartments First Trust Deed Price $1,400,000 Loan Amount $1,260,000 Property Address 1655 North Atwood Drive,Macon,GA Loan Type Proposed New Assessors Parcel Number M084-0193 Interest Rate 4.50% Zoning R-3 Amortization 30 Years SITE DESCRIPTION Loan Term 10 Years Number of Units 40 Loan to Value 70% Number of Buildings 7 Debt Coverage Ratio 2.23 Number of Stories 2 Year Built/Renovated 1972 Rentable Square Feet 44,400 Lot Size 2.75 Acres Type of Ownership Fee Simple Parking 80 Spaces Parking Ratio 2 Spaces per Unit Landscaping Minimal Topography Mostly Flat CONSTRUCTION Foundation Poured Concrete Framing Wood and Drywall Exterior Masonry Brick and Vinyl Siding Parking Surface Asphalt Roof Gable Design with Asphalt Shingles MECHANICAL HVAC Central Air and Heating Wiring Copper Fire Protection Yes #8 WESTMINSTER APARTMENTS REGIONAL MAP 9 WESTMINSTER APARTMENTS LOCAL MAP 10 WESTMINSTER APARTMENTS AERIAL PHOTO 11 WESTMINSTER APARTMENTS PHOTOS – 1 Bedroom Kitchen Hallway Living Room Dining Room 12 WESTMINSTER APARTMENTS PHOTOS – 2 Bedroom Stairway to Apartment Hallway Living Room Utility Closet Full Bath Half Bath Kitchen Small Bedroom Large Bedroom 13 WESTMINSTER APARTMENTS PHOTOS – 3 Bedroom Stairway to Apartment Kitchen Large Bedroom 14 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS 15 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS RENT ROLL SUMMARY 16 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS RENT ROLL DETAIL 17 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS RENT ROLL DETAIL 18 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS OPERATING STATEMENT 19 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS PRICING DETAIL 20 WESTMINSTER APARTMENTS FINANCIAL ANALYSIS GROWTH RATE PROJECTIONS