Houston, Texas - 2019 Moving Forward As Growth Returns
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Westwood II Apartments Homes KET Enterprises Incorporated I 1770 St. James Pl, Suite 382 I Houston, TX 77056 I 713.355.4646 I www.ketent.com WillowoodWestwood Gardens ● 7609 1/2 Fallbrook Dr.II ● Houston, TX 77086 Westwoodapartment II • 9560 Deering Dr. • Houston, TX 77036 homes A P A R T M E N T S F O R S A L E MARKET PRICE 9560 Deering Dr., Houston, TX 77036 THE MATERIAL IN THIS REAL ESTATE OFFERING IS FOR USE ONLY BY KET ENTERPRISES Units: 66 Avg Size: 814 INCORPORATED. USE BY ANOTHER PERSON OR Date Built: 1983 COMPANY IS UNLAWFUL. Rentable Sq. Ft.: 53,692 Acreage: 2.31 Occupancy: 94% Class: C INVESTMENT HIGHLIGHTS ♦ Valued on an All Cash or New Loan Basis ♦ Located in Southwest Houston ♦ Blue Collar Tenant Profile ♦ Washer/Dryer Connections in Each Apartment ♦ Individual Water Heaters HASHIR SALEEM Broker/Senior Associate KET Enterprises Incorporated [email protected] 713-355-4646 ext 106 KET ENTERPRISES INCORPORATED 1770 St. James Place I Suite 382 I Houston, TX 77056 www.ketent.com Broker License #406902 Westwood II • 9560 Deering Dr. • Houston, TX 77036 Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 66 MARKET PRICE New Loan @ 75% Est Mkt Rent (Aug-19) $46,864 Avg Unit Size 814 Amortization (months) 360 2 Mo Avg $42,846 Net Rentable Area 53,692 Debt Service $0 Physical Occ (Aug-19) 94% Land Area (Acres) 2.31 Interest Only Payment $0 Est Ins per Unit per Yr $354 Units per Acre 28.568 Interest Rate 4.25% Property Tax Information Date Built 1983 Date Due 10 Years 2018 Tax Rate/$100 3.45374 Water Meter / Master RUBS Est Res for Repl/Unit/Yr $250 2019 Tax Assessment $1,303,644 Elec Meter Indiv Yield Maintenance Yes Est 2019 Taxes $45,025 Roof Style Pitched Transfer Fee 1%+app+legal Est Future Tax Assessment $3,196,000 A/C Type HVAC Est Future Taxes @ 80% $110,382 INCOME MODIFIED ACTUALS PRO-FORMA PRO-FORMA INCOME Current Street Rent with a 2% Increase 573,615 $47,801 / Mo Estimated Gross Scheduled Income 573,615 $47,801 / Mo Estimated Loss to Lease (2% of Total Street Rent) (11,472) 2% Estimated Vacancy (5% of Total Street Rent) (28,681) 5% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (11,472) 2% Estimated Utilities Income 22,455 $340 / Unit / Yr Estimated Other Income 14,571 $221 / Unit / Yr Estimated Total Rental Income 559,015 ESTIMATED TOTAL PRO-FORMA INCOME 559,015 $46,585 / Mo June & July 2019 Income Annualized $514,146 EXPENSE Aug '18 thru July '19 Expenses Estimated Future Expenses Fixed Expenses Estimated Fixed Expenses Estimated Fixed Expenses Taxes $45,025 $682 per Unit 2018 Tax Rate & 2019 Assessment $110,382 $1,672 per Unit 2018 Tax Rate & Est Future Value Insurance $17,841 $270 per Unit Aug '18 thru Jul '19 Trailing OS $17,841 $270 per Unit Total Fixed Expense 62,866 $953 per Unit 128,223 $1,943 per Unit Utilities Utilities Estimated Utilities Electricity $9,511 $144 per Unit $9,511 $144 per Unit Gas $0 $ per Unit $0 $ per Unit Waste Removal $6,683 $101 per Unit $6,683 $101 per Unit Water/Sewer $27,455 $416 per Unit $27,455 $416 per Unit Total Utilities 43,649 $661 per Unit 43,649 $661 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing $4,032 $61 per Unit $4,032 $61 per Unit Repairs & Maintenance $24,295 $368 per Unit $24,295 $368 per Unit Labor Costs $43,036 $652 per Unit $43,036 $652 per Unit Contract Services $0 $ per Unit $0 $ per Unit Management Fees $0 0.00% $ per Unit $19,566 3.50% $296 per Unit Total Other Expense 71,363 $1,081 per Unit 90,929 $1,378 per Unit Total Operating Expense 177,878 $2,695 per Unit 262,800 $3,982 per Unit Reserve for Replacement 16,500 $250 per Unit 16,500 $250 per Unit Total Expense 194,378 $2,945 per Unit 279,300 $4,232 per Unit Net Operating Income (Actual Underwriting) 319,768 279,715 NOTES: ACTUALS: Income and Expenses are based on owner's Aug '18 thru Jul '19 Trailing OS. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2018 Tax Rate & Est Future Value. Insurance is estimated. Management Fees calculated as 3.5% of Gross Income, Other expenses are Estimated for the Pro Forma. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. 12/10/2019 WestwoodII Westwood II • 9560 Deering Dr. • Houston, TX 77036 Property Overview TAXING AUTHORITY PROPERTY INFORMATION CURRENT MORTGAGE Harris County Age: 1983 Mortgage Balance Account #: 1080610000010 Renovated: N/A Servicer Alief ISD $1.330000 Elec Meter: Indiv Amortization Harris County $0.418580 A/C Type: HVAC P & I (when amortizing) Harris County Flood Control $0.028770 Water: RUBS Type Port of Houston Authority $0.011550 Wiring: Copper Assumable Harris County Hospital District $0.171080 Roof: Pitched Monthly Escrow Harris County Education Dept. $0.005190 Paving: Concrete Origination Date Houston Community College $0.100263 Materials: Brick/Wood Due Date City of Houston $0.588310 # of Stories: 2 Interest Rate Southwest Management District $0.800000 Buildings: 6 Yield Maintenance* Units/Acre: 28.57 Transfer Fee 1%+app+legal Parking: Surface Garages: No 2018 Tax Rate/$100 $3.453743 Quality: C 2019 Tax Assessment $1,303,644 COLLECTIONS Total $423,160 AVERAGES $50,000 Aug 2018 $28,930 2 Mo Avg $42,846 $45,000 Sep 2018 $30,940 $40,000 Oct 2018 $30,210 $35,000 3 Mo Avg $42,117 Nov 2018 $28,436 $30,000 Dec 2018 $29,614 $25,000 6 Mo Avg $39,810 Jan 2019 $36,173 $20,000 Feb 2019 $36,379 $15,000 9 Mo Avg $37,009 Mar 2019 $38,239 $10,000 Apr 2019 $37,889 $5,000 12 Mo Avg $35,263 May 2019 $40,659 $0 Jun 2019 $41,985 Jul 2019 $43,706 PLEASE DO NOT VISIT THE PROPERTY WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER The Westwood II Apartments is a 66 unit, 2-story, 1983 vintage apartment community located in southwest Houston in the Sharpstown/Westwood sub-market. Residents enjoy amenities such as: ceiling fans, outdoor storage, patios and balconies, a swimming pool, mini-binds, kitchen pantries, fully equipped kitchens with frost-free refrigerators, garbage disposals, dishwashers, washer/dryer connections, and individual water heaters. The property is access controlled with perimeter fencing and controlled access gates. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. Westwood II • 9560 Deering Dr. • Houston, TX 77036 Unit Mix Bed/Baths No. Units Sq Ft Total SqFt Market Rent Total Rent +EWG Rent/SF 1 Bed/1 Bath 12 649 7,788 $625 $7,500 +EW $0.96 1 Bed/1 Bath 16 727 11,632 $650 $10,400 +EW $0.89 1 Bed/1 Bath TH 10 848 8,480 $700 $7,000 +EW $0.83 1 Bed/1 Bath Loft 16 852 13,632 $710 $11,360 +EW $0.83 2 Bed/1 Bath 8 920 7,360 $838 $6,704 +EW $0.91 2 Bed/2 Bath TH 4 1,200 4,800 $975 $3,900 +EW $0.81 12/1/19 Rent Roll 66 814 53,692 $710 $46,864 +EW $0.87 Average Sq. Average Average Rent/ Total Units Total Sq. Feet Total Rent Ft. Rent/Unit SF UNIT TYPE UNIT SIZE 8 700 622 28 16 654 671 660 10 662 10 1 Bed/1 Bath 1 Bed/1 Bath TH 1 Bed/1 Bath 1 Bed/1 Bath 1 Bed/1 Bath TH 1 Bed/1 Bath Loft 2 Bed/1 Bath 1 Bed/1 Bath Loft 2 Bed/1 Bath 2 Bed/2 Bath TH Apartment Amenities ▼Frost Free Refrigerator ▼Outside Storage ▼Ceiling Fans ▼Kitchen Pantry ▼Granite Counter tops in Kitchens and bathrooms* ▼Decorative Stone Back Splash* ▼Townhouses* Community Amenities ▼Dishwasher ▼Ice Maker ▼Controlled Access Gates ▼Patio/Balcony ▼Perimeter Fence ▼Disposal ▼Swimming Pool ▼Laundry Facility ▼Mini-blinds ▼Park & Ride Nearby ▼Walk-in Closets ▼School Bus Pick-up ▼Washer/Dryer Connections ▼Covered Parking ▼Individual Water Heaters In Select Units* Westwood II • 9560 Deering Dr. • Houston, TX 77036 Location Westwood II • 9560 Deering Dr.