Broker's Opinion of Value
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BROKER'S OPINION OF VALUE 2700 DAIR ASHFORD, HOUSTON, TX 77082 A 80 Unit ● Class C ● Multi-Family Asset 4295 San Felipe ● Suite 355 ● Houston, TX 77027 www.ketent.com BELLA VISTA ● 2700 DAIRY ASHFORD ● TX 77082 APARTMENTS FOR SALE $12,600,000 PRICE/UNIT: $70,000 PRICE/SF: $73.71 Units: 180 TERMS: ALL CASH Avg Size: 950 PRO-FORMA CAP RATE: 6.76% Date Built: 1981 Rentable Sq. Ft.: 170,932 Stabilized Value Capped @ 6.5% $13,099,294 Acreage: 6.01 Est Rehab/Upgrade @ $/unit $0 Occupancy: 91% Est. Entrepreneurial Profit $0 Class: B Est. Carry to Stabilization $0 Stabilized NOI $851,454 Asking Price $12,600,000 SALIENT FACTS: ♦ Available on an All Cash or New Loan Basis ♦ Off Market Offering ♦ Located in near West Houston ♦ Ideal for long term hold ♦ Originally constructed as condominiums ♦ Centrally located between Beltway 8, Hwy 6, Westheimer and I-10 ♦ Near Houston's Energy Corridor For More Information Please Contact: Tom Wilkinson [email protected] 713-355-4646 ext 102 4295 San Felipe, Suite 355 Houston, TX 77027 www.ketent.com BELLA VISTA ● 2700 DAIRY ASHFORD ● TX 77082 Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 180 Asking Price $12,600,000 Est New Loan @ 75% of Asking $9,450,000 Est Mkt Rent (Jul-16) $150,140 Avg Unit Size 950 Price Per Unit $70,000 Amortization (months) 360 Estimated Collections $136,137 Net Rentable Area 170,932 Price Per Sq. Ft. $73.71 Debt Service $574,581 Physical Occ (Aug-16) 91% Land Area (Acres) 6.01 Stabilized NOI $851,454 Monthly P & I $47,882 Est Ins per Unit per Yr $450 Units per Acre 29.939 Stabilized Value Capped @ 6.5% $13,099,294 Interest Rate 4.5% Property Tax Information Date Built 1981 Est Rehab/Upgrade @ $/unit Date Due 10 Yrs Tax Rate (2015) 2.61846 Water Meter / Master Master Est. Entrepreneurial Profit Est Res for Repl/Unit/Yr $300 2016 Prelim Assessment $5,814,201 Elec Meter Indiv Est. Carry to Stabilization $0 Yield Maintenance Yes 2016 Taxes $152,243 Roof Style Pitched Calculation of Value $13,099,294 Est Future Tax Assessment $10,080,000 HVAC System HVAC-Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry Est Future Taxes @ 80% $263,941 INCOME MODIFIED ACTUALS PRO-FORMA PRO-FORMA INCOME Current Street Rent with a 6% Increase 1,909,781 $159,148 / Mo Estimated Gross Scheduled Income 1,909,781 $159,148 / Mo Estimated Loss to Lease (2% of Total Street Rent) (38,196) 2% Estimated Vacancy (7% of Total Street Rent) (133,685) 7% Estimated Concessions and Other Rental Losses (4% of Total Street Rent) (76,391) 4% Estimated Utilities Income 90,119 $501 / Unit / Yr Estimated Other Income 66,587 $370 / Unit / Yr Estimated Total Rental Income 1,818,215 ESTIMATED TOTAL PRO-FORMA INCOME 1,818,215 $151,518 / Mo 12 Mo Avg Income $1,633,643 EXPENSE Aug '15 thru Jul '16 Expenses Estimated Expenses Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $141,153 $784 per Unit 7/16 operating statement $263,941 $1,466 per Unit 2015 Tax Rate & Future Assessment Insurance $129,795 $721 per Unit $81,000 $450 per Unit Estimated Total Fixed Expense 270,948 $1,505 per Unit 344,941 $1,916 per Unit Utilities Utilities Estimated Utilities Electricity $34,349 $191 per Unit $34,349 $191 per Unit Water & Sewer $95,771 $532 per Unit $95,771 $532 per Unit Gas $327 $2 per Unit $327 $2 per Unit Total Utilities 130,447 $725 per Unit 130,447 $725 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing $88,492 $492 per Unit $46,800 $260 per Unit Repairs & Maintenance $218,779 $1,215 per Unit much higher than normal $81,000 $450 per Unit Labor Costs $227,926 $1,266 per Unit $227,926 $1,266 per Unit Contract Services $63,032 $350 per Unit higher than normal $18,009.1 $100 per Unit Management Fees $61,749 3.78% $343 per Unit $63,638 3.50% $354 per Unit Total Other Expense 659,978 $3,667 per Unit 437,373 $2,430 per Unit Total Operating Expense 1,061,373 $5,897 per Unit 912,761 $5,071 per Unit Reserve for Replacement 54,000 $300 per Unit 54,000 $300 per Unit Total Expense 1,115,373 $6,197 per Unit 966,761 $5,371 per Unit Net Operating Income (Actual Underwriting) 518,270 851,454 Asking Price 12,600,000 12,600,000 "All In" Price Cap Rate 4.11% 6.76% Proposed Debt 9,450,000 9,450,000 Equity 3,150,000 3,150,000 Estimated Debt Service 574,581 574,581 Cash Flow (56,311) 276,873 Cash on Cash -1.79% 8.79% NOTES: ACTUALS: Income and Expenses calculated using owner's 7/16 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2015 Tax Rate & Future Assessment. 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. 8/24/2016 BellaVista PROPERTY OVERVIEW BELLA VISTA ● 2700 DAIRY ASHFORD ● TX 77082 Keymap: 488V Construction Quality: B PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1981 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: 0402250010001 Elec Meter: Indiv Cable Ready Walk-In Closets Amortization Alief ISD $1.280000 A/C Type: HVAC-Indiv Club House School Bus Pick-up P & I Harris County $0.419230 Water: Master Laundry Rooms Shuttle Route Type Harris County Flood Control $0.027330 Wiring: Copper Mini Blinds Patios/Balconies Assumable Port of Houston Authority $0.013420 Roof: Pitched Pool Monthly Escrow Harris County Hospital District $0.170000 Paving: Concrete Bookshelves Origination Date Harris County Education Dept $0.005422 Materials: Brick/Wood Outside Storage Due Date City of Houston $0.101942 # of Stories: 2 Ceiling Fans Interest Rate Houston Community College $0.601120 Parking: Open Yield Maintenance Buildings: 25 Transfer Fee 2015 Tax Rate/$100 $2.618464 Units/Acre: 29.94 *In Select Units 2016 Prelim Assessment $5,814,201 COLLECTIONS 12 Mo Avg $ 136,137 $150,000 Aug 2015 $ 133,490 $145,000 Sept 2015 $ 138,789 9 Mo Avg $ 135,065 Oct 2015 $ 145,778 $140,000 Nov 2015 $ 136,072 6 Mo Avg $ 134,483 $135,000 Dec 2015 $ 136,417 $130,000 Jan 2016 $ 136,198 3 Mo Avg $ 133,661 Feb 2016 $ 127,135 . $125,000 Mar 2016 $ 137,552 $120,000 Apr 2016 $ 141,229 $115,000 May 2016 $ 133,594 June 2016 $ 137,474 July 2016 $ 129,915 PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The Bella Vista Apartments, is a two story, garden-style, apartment community located in near west Houston. The asset was built in 1981 and per Enriched Data Online was renovated in 2004. Residents enjoy ample amenities which include: faux wood flooring, laundry facilities, patios and balconies, walk-in closets, and wood burning fireplaces. The original builder (The Etto Corporaation) planned to condo convert the asset. The property enjoys great drive-by on Dairy Ashford, a major north/south thoroughfare, near the corner of Westheimer. The property has close access to Beltway 8, The Westpark Tollway and Hwy 6. The majority of apartment communities in the submarket are "A" quality with very few "C' and "D'. Overall occupancies average 85%. The property has been nicely rehabbed. 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. BELLA VISTA ● 2700 DAIRY ASHFORD ● TX 77082 Unit Mix UNIT MIX AUGUST 2016 No. Market Unit Floor Type Sq Ft Total SqFt Total Rent Rent/SF Units Rent 1 Bed/1 Bath 16 622 9,952 $640 $10,240 $1.03 1 Bed/1 Bath 19 622 11,818 $620 $11,780 $1.00 1 Bed/1 Bath 4 776 3,104 $735 $2,940 $0.95 1 Bed/1 Bath 4 776 3,104 $715 $2,860 $0.92 2 Bed/1 Bath 15 790 11,850 $750 $11,250 $0.95 2 Bed/1 Bath 14 790 11,060 $730 $10,220 $0.92 2 Bed/2 Bath 34 1,103 37,502 $915 $31,110 $0.83 2 Bed/2 Bath 8 1,113 8,904 $930 $7,440 $0.84 2 Bed/2 Bath 34 1,103 37,502 $890 $30,260 $0.81 3 Bed/1 Bath 12 1,125 13,500 $1,010 $12,120 $0.90 3 Bed/1 Bath 8 1,142 9,136 $1,020 $8,160 $0.89 3 Bed/1 Bath 12 1,125 13,500 $980 $11,760 $0.87 180 950 170,932 $828 $150,140 $0.88 Total Average Total Sq.