14 UNITS PLUS RETAIL in OKC's PASEO ARTS DISTRICT 3017 North Lee Avenue | Oklahoma City, Oklahoma 73103 2 Offering Summary
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14 UNITS PLUS RETAIL IN OKC'S PASEO ARTS DISTRICT 3017 North Lee Avenue | Oklahoma City, Oklahoma 73103 2 Offering Summary Oklahoma City Office 204 North Robinson EXCLUSIVE REPRESENTATION Suite 700 Newmark Knight Frank Multifamily has been exclusively retained to represent the Seller in the Veterans Affairs Medical Center Oklahoma City, OK 73102 disposition of Chardonnay (Property). All inquiries about the Offering or the Property should be 77 35 62 T 405-840-1500 BHGE Energy directed to Newmark Knight Frank Multifamily. 35 35 62 35 Innovation Center Brookings State Innovation District 40 Capitol OKC PROPERTY VISITATION CBD Ted Prince Prospective purchasers will have the opportunity to visit the Property via pre-scheduled property 77 T 405-630-0862 tours. These tours will include access to a representative sampling of units and access to common 235 [email protected] areas and other similar facilities. In order to accommodate the property’s ongoing operations, visitation will require advance notice and scheduling through Newmark Knight Frank. Justin Wilson PASEO DRIVE OFFER SUBMISSION The Paseo Plunge SixTwelve Inc. T 405-605-2546 Studio Six Paseo Gallery One Offers should be presented in the form of a non-binding Letter of Intent, spelling out the significant Paseo Pottery Jonque Mode 77 Prairie Arts Collective Oklahoma Shakespeare [email protected] 235 ReModernOK Contemporary Art Gallery terms and conditions of Purchaser’s offers including, but not limited to: Brayer & Brush OSO Paseo Paseo Drive Picasso Café Sauced on Paseo Holey Rollers Samir Groceries Old Trinity of Paseo Event Venue Scratch Kitchen & Cocktails, Paseo Tim McKay (1) asset pricing In Your Eye Studio & Gallery Paseo Grill Literati Press Bookshop Annex Barbershop T 405-879-4768 (2) due diligence and closing time frame Betsy King. A Shoe Boutique The Daley Gun Izakaya Frida Southwest [email protected] (3) Earnest Money deposit Paseo Farmers Market (4) a description of the debt / equity structure Brandon Lamb, CCIM (5) qualifications to close T 918-551-7600 NW Walker Avenue [email protected] The purchase terms shall require that All Cash be paid at closing. Offers should be delivered to the attention of one of the brokers at the address and / or emails listed. Ben McKay FINANCING T 405-213-2991 For parties interested in receiving debt quotes, Newmark Knight Frank facilitates agency, life company, Paseo Drive [email protected] bank, bridge, and mezzanine financing options for the acquisition of Chardonnay. North Shartel Avenue Steven Leitch George Wisecarver T 301-347-4822 T 301-347-4870 Licensed as Newmark Knight Frank Multifamily in Oklahoma. [email protected] [email protected] Confidential Offering Memorandum 3 Veterans Affairs Medical Center 77 35 62 BHGE Energy 35 35 62 35 Innovation Center Brookings State Innovation District 40 Capitol OKC CBD 77 235 PASEO DRIVE The Paseo Plunge SixTwelve Inc. Studio Six Paseo Gallery One Paseo Pottery Jonque Mode 77 Prairie Arts Collective Oklahoma Shakespeare 235 ReModernOK Contemporary Art Gallery Brayer & Brush OSO Paseo Paseo Drive Picasso Café Sauced on Paseo Holey Rollers Samir Groceries Old Trinity of Paseo Event Venue Scratch Kitchen & Cocktails, Paseo In Your Eye Studio & Gallery Paseo Grill Literati Press Bookshop Annex Barbershop Betsy King. A Shoe Boutique The Daley Gun Izakaya Frida Southwest Paseo Farmers Market NW Walker Avenue Paseo Drive North Shartel Avenue Chardonnay | 96 Multifamily Units 4 Executive Summary Chardonnay 3017 North Lee Avenue Oklahoma City, Oklahoma 73103 Oklahoma County PRICE TERMS YEAR BUILT TBD CASH 1949 TOTAL NUMBER AVERAGE RESIDENTIAL OF UNITS UNIT SIZE (SF) OCCUPANCY (AUGUST 2020) 14 750 85.7% NET RENTABLE AVG MARKET RENT AVG MARKET AREA (SF) PER MONTH RENT PER SF 10,500 $719 $0.96 Confidential Offering Memorandum Property Highlights 5 STRONG PROPERTY FUNDAMENTALS STRONG MARKET AND SUBMARKET • Three-story vintage workforce asset with ground-level FUNDAMENTALS retail in Oklahoma City’s Paseo Arts District • Nearly 50% renter-occupied households with a high • Average $60 monthly rent premiums on partly- or fully- concentration of Millennials (ESRI). No market-rate renovated units since 4Q 2018 for all new leases and units delivered in the submarket since 3Q 2017 and no renewals deliveries projected though 3Q 2022 (CoStar) • Video security, assigned parking, and community laundry room • Average submarket asking rents have increased for 13 consecutive quarters (REIS) ADVANTAGEOUS LOCATION • Submarket average occupancy rate is expected to increase to 94.7% by year- end 2020 and average 94.6% from 2021 to 2023 (RealPage, 2Q 2020, Intown • Walking distance to Paseo Drive’s fine dining, galleries, and boutique retail Oklahoma City submarket) • Short commute times to Oklahoma City University (1.0 mile), SSM Health St. Positive OKC MSA net migration, population growth rate exceeds the U.S. Anthony Hospital (1.7 miles), the Oklahoma State Capital (2.1 miles), and the • average (Moody’s), MSA civilian labor force recovery rate from COVID-19 Central Business District (2.5 miles) exceeds state and national averages (BLS) • Over 14,000 businesses and 211,000 employees within a five-mile radius: 7.0% December, 2019 Oklahoma City MSA unemployment rate 56.3% white collar workforce • continues to track well below the same-month 11.1% national average (BLS) 6 Property Information NO. of BUILDINGS 1 Residential Building with YEAR BUILT 1949 Ground-level Retail LAND SIZE 0.34 Acres PARKING 14 Total Spaces (assigned) • 6 Covered Spaces • 2 Covered Handicap Spaces DENSITY 41.18 Units Per Acre • 6 Open Spaces SCHOOL DISTRICT Oklahoma City Public Schools ZONING NC; Neighborhood Conservation • Wilson Elementary School (pre-K through grade 4) 0.8 mile MECHANICAL • F. D. Moon Middle School SYSTEM / UTILITIES (grades 5 through 8) 3.8 miles Electric Metering Individual; resident pays directly to provider • Frederick Douglass High School HVAC Individual (grades 9 through 12) 4.5 miles Hot Water Individual Water / Sewer Master; owner pays Billing EMPLOYEE UNITS None Gas Metering None Trash Fee None Pest Fee None MODEL UNITS None CONSTRUCTION Style Garden Exterior Brick Veneer / Stone Veneer NON- OR REDUCED- REVENUE UNIT Roof Pitch / Clay Tile None Confidential Offering Memorandum Unit Mix 7 RESIDENTIAL UNIT MIX UNIT TYPE Average Average # of % of Unit Total Bed / Bath Market Rent Market Rent Units Total Size SF Unit SF 29% Per Month Per SF 6 1 BR / 1 BA 42.9% 700 4,200 $687 $0.98 2 1 BR / 1 BA 14.3% 725 1,450 $699 $0.96 1 1 BR / 1 BA 7.1% 800 800 $699 $0.87 71% 4 2 BR / 1 BA 28.6% 800 3,200 $793 $0.99 1 1 BR / 1 BA 7.1% 850 850 $670 $0.79 14 100.0% 750 10,500 $719 $0.96 1 BEDROOM 2 BEDROOM TOTALS / AVERAGES CURRENT CONCESSIONS UNIT SIZE TOTAL # OF UNITS 14 NONE 7% NET RENTABLE SF (APPROXIMATE) 10,500 SCHEDULED MONTHLY RENT $10,059 43% | August 2020 AVERAGE MARKET RENT/MONTH $719 CURRENT OCCUPANCY AVERAGE MARKET RENT/SF $0.96 Residential: 85.7% – Physical Commercial: 0% AVERAGE UNIT SIZE 750 SF 36% COMMERCIAL UNIT MIX Average Average 700 SF 14% # of Unit Tenant Market Rent Market Rent 725 SF Units Size SF Per Month Per SF 800 SF 850 SF 1 Vacant 2,100 $3,105 $1.48 Chardonnay | 96 Multifamily Units 8 Site Plan COVERED PARKING GATE (NOT IN USE) NORTHWEST 30TH STREET 30TH NORTHWEST OPEN PARKING GATE (NOT IN USE) GATE NORTH LEE AVENUE Subfloor Commercial Space 1st and 2nd Floor Residential Subfloor Laundry Room 1st and 2nd Floor Residential Subfloor Storage 1st Floor Patio 2nd Floor Balcony Residential Fence Confidential Offering Memorandum Floor Plans – Sublevel 9 UP BEDROOM STORAGE DINING KITCHEN BATH LAUNDRY HOT CLOSET HVAC WATER RETAIL LIVING ENTRY DINING ENTRY HOT WATER HVAC LIVING DOWN KITCHEN BATH UP CLOSET BEDROOM Chardonnay | 14 Multifamily Units 10 Floor Plans – First Floor COVERED PARKING DOWN DOWN CLOSET CLOSET CLOSET STORAGE BATH BATH BEDROOM UP BEDROOM BEDROOM BEDROOM BEDROOM DOWN CLOSET HOT PATIO WATER HOT WATER HVAC HVAC BATH CLOSET DINING HOT CLOSET BATH WATER HVAC HOT LIVING WATER LIVING HVAC DINING KITCHEN KITCHEN KITCHEN KITCHEN ENTRY ENTRY ENTRY CLOSET DINING LIVING LIVING CLOSET DOWN DOWN DINING CLOSET ENTRY CLOSET ENTRY DINING DOWN DINING KITCHEN LIVING LIVING KITCHEN HOT WATER HOT WATER HVAC HVAC CLOSET BATH CLOSET CLOSET BATH BEDROOM BEDROOM BEDROOM Confidential Offering Memorandum Floor Plans – Second Floor 11 DOWN DOWN CLOSET CLOSET CLOSET STORAGE BATH BATH BEDROOM UP BEDROOM BEDROOM BEDROOM BEDROOM DOWN CLOSET HOT BALCONY WATER HOT WATER HVAC HVAC BATH CLOSET DINING HOT CLOSET BATH WATER HVAC HOT LIVING WATER LIVING HVAC DINING KITCHEN KITCHEN KITCHEN KITCHEN ENTRY ENTRY ENTRY CLOSET DINING LIVING LIVING CLOSET BALCONY BALCONY DINING CLOSET ENTRY CLOSET ENTRY DINING DOWN DINING KITCHEN LIVING LIVING KITCHEN HOT WATER HOT WATER HVAC HVAC CLOSET BATH CLOSET CLOSET BATH BEDROOM BEDROOM BEDROOM Chardonnay | 14 Multifamily Units 12 Community Amenities • Laundry Room • Courtyard with Seating Area • Ground-floor Retail Unit • Gated Parking Access (not in use) • Covered Parking (assigned) • 24 Hour Emergency Maintenance Confidential Offering Memorandum Unit Appointments 13 • Deadbolt and Viewer on Entry Door • Faux Plank Flooring in Entry, Kitchen, and Bathroom • Carpeted Living and Dining Areas • Brushed Nickel Hardware • Coat Closet * • Patio or Balcony * • CleanSteel Appliance Package * >> Frost-free Refrigerator >> Self-cleaning Oven >> Multi-cycle Dishwasher • Double Stainless Steel Sink with Disposal and Vegetable Sprayer • Lighted Ceiling Fan in Master Bedroom