Forest Hills Flyer.Pub
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MULTIFAMILY OFFERING | SHOWN BY APPT. WITH LISTING AGENTS Forest Hills INVESTMENT HIGHLIGHTS Improved Updated Financials and NOI 210 Units | Strong Rental Growth Area Located in Austin’s Fastest Growing and Trendy Submarket | Southeast Riverside Great Value Add Opportunity Underutilized Amenity Spaces Walking Distance to Lady Bird Lake and Three Miles to Downtown | U.T. Built in Two Phases (1983 and 1973) Easy Access to CBD and IH-35 via Riverside 2201 Willow Creek Dr. | Austin, TX 78741 Ellen Muskin - 512.343.2700 x1 Daniel Elam - 512.343.2700 x2 [email protected] [email protected] Investment Opportunity • Very well located just minutes from downtown, Lady Bird Lake and the associated hike-and-bike trails. This submarket has benefited greatly from unprecedented redevelopment along Riverside Drive. The area now flourishes with brand new upper-end construction, new retail establishments, music venues and situated be- tween Class A office and industrial facilities nearby. View www.austintexas.gov/eastriverside for more information. • This submarket is averaging an annual rent growth of 6.8%, according to Austin Investor Interests’ (AII) 4Q 2015 Trend Report. • Unit sizes range from 554+/- SF up to 1,017 +/- SF, offering those seeking more moderately priced living a wonderful alternative to downtown housing which averages more than $2,479 in rents, and greater than $2.52 PSF. • Austin is ranked at the top of the list of U.S. cities most likely to prosper during the next 10 years (Forbes, America’s Next Boom Town, January 2016). Property Highlights Forest Hills Apartments are perfectly nestled just minutes from downtown Austin, offices, nightlife, dining and shopping. This is an excellent location for bike commuters, easy access to city transit, and a stress-free commute to downtown, the State Capitol, and both North and South Austin. Nicely appointed one and two bedroom apartment homes feature spacious floor plans for a comfortable lifestyle. The average unit size of 724 +/- SF is larger than the typical properties of this vintage, and offer a wide array of floorplans. The roofs are a combination of flat and pitched with composition shingles. The property underwent major rehabilitation in 2006 / 2007 which included full exterior painting, new roofs, resurfacing of the tennis and basketball courts, and unit interior upgrades. There was another major rehab on 2014 / 2015 (approx. $3,500,000). Exterior construction is a combination of stucco and hardi board siding. Built in two phases (1973 and 1983), the property is situated on two tracts (3.91 + 3.17 acres) totaling a 7.08 +/- acre site (according to TCAD records). The community consists of thirty (30) two and three-story buildings with individual HVAC and 96 individual water heaters, with the remainder of units utilizing a central boiler system and master-metered for electric. Leasing efforts benefit from this excellent location, a variety of floor plans and convenient access to public and UT bus transportation. The residents enjoy Google fiber cable, a swimming pool with sundeck, black appliances, faux wood flooring and two centrally located clothes-care facilities. Area amenities include close proximity to the CBD, Austin Convention Center, Lady Bird Lake, University of Texas, UT’s new medical school, ACC Riverside Campus, St. Edward’s University, downtown entertainment districts and the Plaza Saltillo Station Redevelopment, plus easy access to the Bergstrom International Airport (ABIA) only seven miles away. Drive-by traffic and walkability are excellent due to frontage on both Willow Creek and Anken Drives - just north of Oltorf Boulevard. Forest Hills | 210 Units Property Features Designer Black Appliance Packages Wood-Look Vinyl Flooring Spacious Floor Plans (554 +/- SF up to 1,017 +/- SF) Resurfaced Kitchen Countertops | Bar Areas Large Walk-In Closets for Extra Storage Two-Toned Interior Color Schemes Outdoor Balcony and Patios Spaces Vaulted Ceilings | Ceiling Fans | Fireplaces Vertical Blinds Open Green Spaces Throughout Site (Some Features May Vary In Units) Community Overview Multiple Courtyards with Picnic Tables | Bar-B-Que Areas Basketball, Volleyball and Tennis Courts Property Wired for Google Fiber Centrally Located, Sparkling Swimming Pool Large Finished-Out Space (1,672 +/- SF) for Fitness Center | Clubhouse Two Remodeled On-Site Clothes Care Centers Located on Both UT and Capitol Metro Shuttle Bus Routes Black Wrought Iron Perimeter Fence Pet Friendly Community and Dog “Bark Park” Close Proximity to the East Riverside Corridor Online Rent Payments and Service Request Submissions COMMERCIAL Forest Hills | 210 Units MUSKIN FINANCIAL ANALYSIS PROPERTY HIGHLIGHTS INVESTMENT OUTLINE UNITS 210 plus 1 (Short-Term Rental)* NOW PRICED $18,900,000 | Cap Rate: 6.55% BUILT 1973 & 1983 (Two Phases) TERMS Cash, New Loan or Loan Assumption BUILDINGS 30 Two & Three Story Garden Style TOTAL SQUARE FEET 152,342 +/- (TCAD) EXTERIOR Stucco and Hardi Board Siding LAND SIZE 3.91 (Ph. I) + 3.17 (Ph. II) = 7.08 +/- Acres (TCAD) METERING Master-metered (Phase I) Electric - Individual (Phase II) ROOF Flat (Ph. I) & Pitched Composition Shingle (Ph. II) HOT WATER Central Boilers (6 in Phase I) Individual Water Heaters (Phase II) PARKING SPACES 312 Spaces UNIT MIX MONTHLY ANNUAL UNIT TOTAL MARKET MARKET MARKET RENT UNITS SF +/- SF +/- RENT RENT RENT SF +/- 20 1 Bed / 1 Bath - Ph. I 554 11,080 $925 $18,500 $222,000 $1.67 4 1 Bed / 1 Bath - Ph. I 555 2,220 $925 $3,700 $44,400 $1.67 24 1 Bed / 1 Bath - Ph. II 555 13,320 $825 $19,800 $237,600 $1.49 24 1 Bed / 1 Bath - Ph. I 570 13,680 $950 $22,800 $273,600 $1.67 24 1 Bed / 1 Bath - Ph. II 591 14,184 $860 $20,640 $247,680 $1.46 12 1 Bed / 1 Bath - Ph. I 653 7,836 $975 $11,700 $140,400 $1.49 12 1 Bed / 1 Bath - Den - Ph. 1 725 8,700 $995 $11,940 $143,280 $1.37 2 1 Bed / 1 Bath - TH - Ph. I 729 1,458 $1,000 $2,000 $24,000 $1.37 16 2 Bed / 1.5 Bath - Ph. I 846 13,536 $1,100 $17,600 $211,200 $1.30 48 2 Bed / 2 Bath - Ph. II 871 41,808 $950 $45,600 $547,200 $1.09 8 2 Bed / 2 Bath - Ph. I 991 7,928 $1,150 $9,200 $110,400 $1.16 16 2 Bed / 2 Bath - Ph. I 1,017 16,272 $1,200 $19,200 $230,400 $1.18 210 724+/- 152,022+/- $965 $202,680 $2,432,160 $1.33 *$100 for utilities is included in Rental Rates for master-metered units only (approx. 114 total) *One unit, furnished, is not shown on Rent Roll (Unit #100) and rents as an Short-Term Rental (STR) Square footage is approximate. Muskin Commercial, LLC makes no representations or warranties regarding the square footages and has not independently verified this information. NOTES TO PRO FORMA: Replacement Reserves reflect Industry Averages 2016 Real Estate Taxes have been protested and are now at $12,700,000 PRO FORMA ANALYSIS STABILIZED Trailing-12 INCOME UNDERWRITING From July 2016 YE 2015 SCHEDULED MARKET RENT $2,432,160 $2,004,133 $1,906,253 Less: Loss to Lease 3.00% ($72,965) — — Less: Vacancy 5.00% ($121,608) — — Less: Concessions 0.50% ($12,161) — — Less: Employee Units 0.25% ($6,080) ($3,725) ($8,870) Less: Prepaid Rents / Dues (Net) ($5,000) $3,609 ($2,157) NET RENTAL INCOME $2,214,346 $2,004,017 $1,895,226 Plus: Fees Income $45,000 $38,471 $43,366 Plus: Laundry Income $15,000 $12,159 $12,101 Plus: RUBS Income $45,000 $42,244 $43,513 Plus: Other Income $22,500 $19,706 $11,196 TOTAL OPERATING INCOME (EGI) $2,341,846 $2,116,597 $2,005,402 EXPENSES PER UNIT Administrative $95 $20,000 $17,2026 $36,213 Advertising & Promotion $95 $20,000 $20,927 $23,499 Payroll $1,050 $220,500 $211,559 $206,781 Repairs & Maintenance $450 $94,500 $94,833 $105,768 Management Fee (3.00%) $335 $70,255 $125,927 $118,582 Utilities $952 $200,000 $207,267 $217,137 Contracted Services $238 $50,000 $54,627 $51,074 Real Estate Taxes (2.296081%) $1,550 $325,469 $229,608 $205,615 Franchise Tax $38 $8,000 $7,186 $9,109 Insurance $200 $42,000 $35,351 $33,087 Replacement Reserve/Cap Ex $250 $52,500 $52,500 $52,500 Total Expenses $1,103,225 $1,056,991 $1,059,364 Per Unit $5,253 $5,033 $5,045 Per SF $7.26 $6.95 $6.97 Net Operating Income $1,238,621 $1,059,607 $946,038 Cap Rate: 6.55% NOTES TO PRO FORMA: Replacement Reserves reflect Industry Averages 2016 Real Estate Taxes have been protested and are now at $12,700,000 Recently Announced #1 Enterprise Database in the World Serves 420,000 global clients, including 100 of the Fortune 100 The new Oracle Campus is Currently three existing locations in Austin approximately 1 mile away New location to be next-generation from Forest Hills Apartments technology campus that will include some nearby housing for employees Over 1,000 existing Oracle employees in the Austin area Plans to expand number of Austin employees by 50% over the next few years Oracle’s New Campus Metro Austin has strongest expansion in tech The new Oracle campus will include a 560,000 +/- SF office complex sector employment and parking development. It is to be located south of Lady Bird Lake and east of I-35, near Lakeshore Blvd in Austin’s fastest growing Austin has highest net-migration of adults submarkets, Southeast Riverside. The company has also purchased a with college degrees 295-unit apartment building adjacent to the campus which will be used to conveniently house their employees.