Offering Memorandum
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OFFERING MEMORANDUM St. Charles Place Apartments 226 Units | 2000 Old Minden Road, Bossier City, LA John A. Hamilton Luke Nicholls [email protected] [email protected] For additional information, please contact the agents at this toll free number: 1-877-806-4791 330 Marshall Street, Suite 200 | Shreveport, LA 71101 | website: www.vintagemultifamily.com Table of Contents: 1 - Market Analysis ...........................................................Page 3 2 - Location Highlights/Demographics ................................. Page 4 3 - Property Overview .......................................................Page 7 4 - Maps and Aerials .........................................................Page 8 5 - Amenities .................................................................... Page 11 6 - Comparable Rentals ..................................................... Page 12 7 - Financials/Proforma ..................................................... Page 14 8 - Comparable Sales ........................................................ Page 16 9 - Final Evaluation ............................................................ Page 18 10 - Vintage Realty Company & Agent Overview .................. Page 19 Important Information/Disclaimer: The information obtained herein is assumed to be correct and market supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential: it is intended only for use by Vintage Realty and their clients. This file may not be reproduced physically or in electronic format without the written consent of Vintage Realty Company. 11/2018 PROPERTY AND MARKET ANALYSIS Strong Demand – St. Charles Place apartments is located in the heart of Bossier City, Louisiana. Bossier City is home to the mostly solid middle and working class of Shreveport-Bossier City area. St. Charles Place is in close proximity to I-20 and Highway 3, some of the area’s oldest and most established businesses, other apartment communities, hotels, restaurants, car dealerships, and schools. St. Charles, with its strategic location within Bossier City, combined with continued strong management, is in a position to flourish for years to come. Considerable capital expenditures have been spent improving the property over the last five years on St. Charles place resulting in a property in excellent overall condition. Rental Analysis – The study of the rents and occupancy in the Bossier rental market from comparable properties has shown rental growth is still strong. Comparable occupancy in the immediate area is well above 90% and in some cases closer to 95%. Averages in 1970’s and 1980’s vintage properties are reaching over a $1.00 square foot in some cases. Unit upgrades at St. PROPERTY HIGHLIGHTS PROPERTY Charles have been initiated indicating an average increase in almost $80 per unit (See proforma and notes for renovated unit premium). Because the Bossier rental market remains relatively strong, a property with strong management that strives for an improved, cutting-edge product can continue to flourish. Market Analysis – In 2014, the Bossier market was as strong as it has ever been and owners began the attempts to take advantage of the robust climate by increasing the rates across the city. As a natural result, vacancy climbed through 2015 and 2016 which resulted in owners making small corrections to rates through those two years. Since 2017 and through 2018 vacancy has begun to drop with rents continuing to slowly increase, indicating a very healthy market. Overall, the market occupancy is very encouraging, holding steady at 93% average across Bossier with occupancy percentages even higher at apartment communities within close proximity to St. Charles Place, and effective rents seem to have stabilized close to the $.90 per square foot range. Properties with strong management teams and well maintained assets continue to lead the way in Bossier, driving the high end of the occupancy scale. Page | 3 Bossier Vacancy Rate Bossier Effective Rate LOCATION HIGHLIGHTS Shreveport/Bossier City is part of the area called the Ark-La-Tex, a U.S. socio- economic region where Arkansas, Louisiana, Texas, and Oklahoma intersect. The Shreveport—Bossier City MSA is home to Barksdale Air Force Base, Cyber Innovation Center, the CenturyLink Event Center, multiple colleges AREA PROFILE and universities, as well as several upscale riverboat casinos that bring over 2 million tourists to the area each year. Shreveport/ North Louisiana’s 14 parishes of over 815,000 residents boast some of the Bossier City most vibrant and diverse economies in the nation. The population within a 20 Alexandria Baton mile radius of Shreveport Bossier in 2010 was 365,719 with a projected 2022 Rouge population of 395,235. Source: US Census Bureau and ESRI forecasts. Northwest Louisiana supports a large and sophisticated healthcare sector, a competitive manufacturing base, a reenergized oil and gas sector (through the exploration of the Haynesville Shale), a sizeable and diverse service sector and supplier network, a transforming timber/paper industry, a hospitality/ gaming industry, federal installations and more. REGIONAL CITIES AND THEIR DISTANCE FROM BOSSIER CITY, LOUISIANA INCLUDE: El Dorado, AR 96 miles Little Rock, AR 212 miles Monroe, LA 98 miles Jackson, MS 219 miles Alexandria, LA 125 miles Houston, TX 240 miles Vicksburg, MS 175 miles New Orleans, LA 328 miles Dallas, TX 186 miles Oklahoma City, OK 390 miles Page | 4 Executive Summary 2000 Old Minden Rd, Bossier City, Louisiana, 71111 Prepared by Esri Rings: 1, 3, 5 mile radii Latitude: 32.51709 DEMOGRAPHIC SNAPSHOT Longitude: -93.71212 1 mile 3 miles 5 miles Median Household Income 2018 Median Household IncomeExe cutive Summary $29,319 $35,594 $39,436 2023 Median Household IncomeExe cutive Summary $31,132 $37,086 $41,320 2000 Old Minden Rd, Bossier City, Louisiana, 71111 Prepared by Esri 2018-2023 Annual Rate 2000 Old Minden Rd, Bossier City, Louisiana, 711111.21% 0.82% Prepared0.94% by Esri Average Household IncomeRings: 1, 3, 5 mile radii Latitude: 32.51709 Rings: 1, 3, 5 mile radii Latitude: 32.51709 Longitude: -93.71212 2018 Average Household Income $37,529 $47,392 Longitude: -93.71212$59,389 2023 Average Household Income $40,7711 mile $51,2003 miles $63,7485 miles 1 mile 3 miles 5 miles Population2018-2023 Annual Rate 1.67% 1.56% 1.43% Median Household Income Per2000 Capita Population Income 8,931 53,500 117,509 2018 Median Household Income $29,319 $35,594 $39,436 20182010 PePorpulation Capita Income $17,1579,388 $20,63752,871 $25,223117,229 2023 Median Household Income $31,132 $37,086 $41,320 20232018 PePorpulation Capita Income $18,6359,903 $22,18155,761 $26,978121,560 2018-2023 Annual Rate 1.21% 0.82% 0.94% 2018-20232023 Population Annual Rate 10,1871.67% 56,8781.45% 123,1811.35% Average Household Income Households2000-2010 byAnnual Income Rate 0.50% -0.12% -0.02% 2018 Average Household Income $37,529 $47,392 $59,389 2010-2018 Annual Rate 0.65% 0.65% 0.44% Current median household income is $39,436 in the area, compared to $58,100 for all U.S. households. Median household income is DEMOGRAPHIC SNAPSHOT 2023 Average Household Income $40,771 $51,200 $63,748 projected2018-2023 to be Annual $41,320 Rate in fiveExe years,cutive compared toSummary $65,727 for all U.S. households0.57% 0.40% 0.27% 20182018-2023 Male PoAnnualpulation Rate 1.67%48.4% 1.56%49.5% 1.43%48.9% CurrentPer2018 Capita Feavemale raIncomege Po householdpulation income2000 is Old $59,389 Minden in Rd,this Bossierarea, compared City, Louisiana, to $83,694 71111 51.6%for all U.S. households. Avera50.5%ge household incomePrepared is51.1% by Esri projected to be $63,748 in five years, compared to $96,109 for all U.S. households 2018 PeMedianr Capita Age Income Rings: 1, 3, 5 mile radii $17,15732.3 $20,63732.7 Latitude: $25,22332.5170935.3 2023 Per Capita Income $18,635 $22,181 Longitude: -93.71212$26,978 InCurrent the identified per capita area, income the currentis $25,223 year in population the area, comparedis 121,560. to In the 2010, U.S. tperhe Ccapitaensus incomecount in of the $31,950. area wa Thes 117,229. per capita The income rate of is change projected since to 2018-2023 Annual Rate 1.67% 1.45% 1.35% 2010be $26,978 was 0.44% in five annual years,ly. compared The five-year to $36,530 projection for allfor U.S. the populationhouseholds in the area is 1123,181 mile representing a change3 miles of 0.27% annually5 from miles MedianHouseholds2018 to 2023.Household by Currentl Income Incomey, the population is 48.9% male and 51.1% female. Housing MedianCurrent2018 MedianmedianAge Household household Income income is $39,436 in the area, compared to $58,100$29,319 for all U.S. households. Median$35,594 household income is $39,436 2000 Total Housing Units 4,598 24,935 51,998 projected2023 Median to be $41,320Household in Incomefive years, compared to $65,727 for all U.S. households$31,132 $37,086 $41,320 The median2000 Owner age in Occupied this area Housing is 32.3, Unitscompared to U.S. median age of 38.3. 1,581 9,329 25,796 2018-2023 Annual Rate 1.21% 0.82% 0.94% RaceCurrent2000 and ave ReEthnicityranterge household Occupied Housingincome isUnits $59,389 in this area, compared to $83,694 2,414for all U.S. households. Avera12,588ge household income is20,822 projectedAverage Householdto be $63,748 Income in five years, compared to $96,109 for all U.S. households 20182000 White Vacant Alone Housing Units 44.7%603 47.9%3,018 51.8%5,380 2018 Average Household Income $37,529 $47,392 $59,389 Current20182010 BlackTopertal capita HousingAlone income Units is $25,223 in the area, compared to the U.S. per capita42.0%4,608 income of $31,950. The24,351 per40.7% capita income is projected52,81440.1% to 2023 Average Household Income $40,771 $51,200 $63,748 be2018 $26,9782010 American Owner in five OccupiedIndian/Alaska years, compared Housing Native Unitsto $36,530Alone for all U.S.