Broker's Opinion of Value
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BROKER'S OPINION OF VALUE 4315 SOUTH KIRKWOOD, HOUSTON, TX 77072 A 80 Unit ● Class C ● Multi-Family Asset 4295 San Felipe ● Suite 355 ● Houston, TX 77027 www.ketent.com GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 TOWNHOME APARTMENTS FOR SALE Market Units: 42 Avg Size: 1239 Date Built: 1985 Rentable Sq. Ft.: 52,055 Acreage: Occupancy: 90% Class: B+ SALIENT FACTS: ♦ Available on an All Cash or New Loan Basis ♦5 units (1 BR) and 1 TH do not have garages ♦ Located in the Alief submarket of SW Houston ♦ No HOA ♦ Individually titled units ♦ Individual hot water heaters ♦ Close to Westchase For More Information Please Contact: KET Enterprises Incorporated Houston Income Properties Tom Wilkinson Jim Hurd [email protected] [email protected] 713-355-4646 ext 102 713-783-6262 License #0406902 | ketent.com License #0393404 | hipapt.com GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 42 Asking Price Market New Loan @ 75% of Asking Est Mkt Rent (May-21) $49,858 Avg Unit Size 1239 Price Per Unit Amortization (months) 360 3 Mo Avg $54,833 Net Rentable Area 52,055 Price Per Sq. Ft. Debt Service Physical Occ (May-21) 90% Land Area (Acres) 0.00 Stabilized NOI$289,917 Monthly P & I Est Ins per Unit per Yr $1,325 Units per Acre #DIV/0! Interest Rate 3.40% Property Tax Information Date Built 1985 Date Due 10 Yrs Tax Rate (2020) 2.47109 Water Meter / Master Master/RUBS Est Res for Repl/Unit/Yr $300 2021 Tax Assessment $2,973,560 Elec Meter Indiv Yield Maintenance Yes 2020 Taxes $73,479 Roof Style Pitched Interest Rates fluctuate daily Est Future Tax Assessment $3,475,000 A/C Type: HVAC-Indiv Est Future Taxes $85,870 INCOME MODIFIED ACTUALS PRO-FORMA PRO-FORMA INCOME Current Street Rent with a 7% Increase 640,177 $53,348 / Mo Estimated Gross Scheduled Income 640,177 $53,348 / Mo Estimated Loss to Lease (2% of Total Street Rent) (12,804) 2% Estimated Vacancy (4% of Total Street Rent) (25,607) 4% Estimated Concessions and Other Rental Losses (4% of Total Street Rent) (25,607) 4% Estimated Utilities Income 21,291 $507 / Unit / Yr Estimated Other Income 4,881 $116 / Unit / Yr Estimated Total Rental Income 602,331 ESTIMATED TOTAL PRO-FORMA INCOME 602,331 $50,194 / Mo 3 Mo Avg Income Annualized $657,990 EXPENSE Jun '20 thru May '21 Expenses Estimated Expenses Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $98,519 $2,346 per Unit 5/21 operating statement $85,870 $2,045 per Unit 2020 Tax Rate & Future Assessment Insurance $55,658 $1,325 per Unit $55,658 $1,325 per Unit Estimated Total Fixed Expense 154,177 $3,671 per Unit141,528 $3,370 per Unit Utilities Utilities Estimated Utilities Electricity $3,986 $95 per Unit $3,986 $95 per Unit Water & Sewer (net of reimbursement) -$16,513 -$393 per Unit -$16,513 -$393 per Unit Water Billing Service $841 $20 per Unit $841 $20 per Unit Phone/Fax $2,356 $56 per Unit $2,356 $56 per Unit Alarm/Security $905 $22 per Unit $905 $22 per Unit Trash $4,520 $108 per Unit $4,520 $108 per Unit Total Utilities (3,906) -$93 per Unit(3,906) -$93 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing $26,128 $622 per Unit $26,128 $622 per Unit Repairs & Maintenance $19,341 $461 per Unit $19,341 $461 per Unit Labor Costs $74,560 $1,775 per Unit $74,560 $1,775 per Unit Contract Services $0 $ per Unit $0 $ per Unit Management Fees $66,065 10.04% $1,573 per Unit $42,163 7.00% $1,004 per Unit Total Other Expense 186,094 $4,431 per Unit162,193 $3,862 per Unit Total Operating Expense 336,365 $8,009 per Unit299,815 $7,138 per Unit Reserve for Replacement 12,600 $300 per Unit12,600 $300 per Unit Total Expense 348,965 $8,309 per Unit312,415 $7,438 per Unit Net Operating Income (Actual Underwriting) 309,025 289,917 Asking Price Market Market Cap Rate Proposed Debt Equity Estimated Debt Service Cash Flow 309,025 289,917 Cash on Cash NOTES: ACTUALS: Income and Expenses calculated using owner's 5/21 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2020 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 7.% 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. 7/4/2021 GatewayonKirkwood GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 PROPERTY OVERVIEW GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 Keymap: 529E Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1985 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: Multiple Accounts Elec Meter: Indiv Cable Ready Walk-In Closets Amortization360 Alief ISD $1.204800 A/C Type: HVAC-Indiv Club House School Bus Pick-up P & I Harris County $0.391160 Water: Master/RUBS Laundry Rooms Shuttle Route Type Harris County Flood Control $0.031420 Roof: Pitched Mini Blinds Patios/Balconies Assumable Port of Houston Authority $0.009910 Paving: Concrete Pool Indiv Hot Wtr Htrs Monthly Escrow Harris County Hospital District $0.166710 Materials: Brick/Wood Bookshelves Origination Date Harris County Education Dept $0.004990 # of Stories: 2 Outside Storage Due Date Houston Community College $0.100260 Parking: Ceiling Fans Interest Rate City of Houston $0.561840 Buildings: 6 Yield Maintenance 2020 Tax Rate/$100 $2.471090 Units/Acre: #DIV/0! Transfer Fee 2021 Tax Assessment $2,973,560 *In Select Units HCAD Improvement Sq.Ft. 52,056 COLLECTIONS Total$ 576,165 $70,000 June 2020$ 49,795 12 Mo Avg$ 48,014 $60,000 July 2020$ 46,179 Aug 2020$ 47,911 $50,000 Sept 2020$ 46,794 9 Mo Avg$ 48,031 $40,000 Oct 2020$ 46,557 $30,000 Nov 2020$ 46,956 Dec 2020$ 41,842 6 Mo Avg$ 48,662 $20,000 Jan 2021$ 40,368 $10,000 Feb 2021$ 45,266 Mar 2021$ 48,782 3 Mo Avg$ 54,833 $- Apr 2021$ 50,643 May 2021$ 65,072 PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The Gateway on Kirkwood Townhome Apartments, is an individually titled two story community located in the Alief submarket of Houston, Texas. The asset was built in 1985. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies, walk-in closets and garages in the larger units. The owner has 100% of the units and there is no HOA. Per Owner, $734,932 has been spent in CapEx (see summary attached, but this is not a detailed breakdown). Many units have granite counter tops. There is a storage room behind the garage in many units that was turned into an additional bedroom (with two doors). Four units have not yet been converted. The appliances are in generally good condition. There are 5 one bedrooms and one TH that do not have garages. There are no washer/dryer connections in the one bedroom units. Every unit has an individual title and individual hot water heaters and this property may be ideal to sell off individually as townhomes. The owners have had the property approximately four years. The property is located close to the Westpark Toll Road, Beltway 8 and the Westchase District. 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. GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 CapEx Certificate of Occupancy 55,868.96 Exterior 0.00 AC 51,950.98 Fence / Gate 9,150.00 Foundation 9,450.00 Lighting 4,916.16 Mailbox 3,937.30 Plumbing 7,907.51 Roof 130,000.00 Security Cameras 9,335.00 Structural Repair 8,600.00 Supplies / Materials 49,421.58 Tree Removal 9,250.00 Wood Replacement / Paint 89,700.00 Total Exterior $ 383,618.53 Interior 0.00 Flooring 87,411.13 Make Ready 40,857.90 Paint 44,634.94 Supplies / Materials 122,540.17 Total Interior $ 295,444.14 Total CapEx $ 734,931.63 GATEWAY AT KIRKWOOD 4315 S KIRKWOOD RD HOUSTON, TX 77072 2021 KET RENT COMPARABLE TAX ANALYSIS Property Address Yr Built Units Impr Sq.Ft.