44 Units in Durham, NC

FOR SALE

OFFERS FOR SALE 44 Units in Durham, NC

Deaton.com 919/847.1117 PROPERTY SUMMARY The COROJO Apartments 44 units $4,800,000

1718 Palmer St, Durham, NC 27707

Built in 1993 and known as the Corojo Apartments, Of the 44 units, 32 units are 2 BD/1 BA floorplans, eight these 44 units are located one mile from Downtown units are 3 BD/2 BA floorplans, and four units are 4 BD/2 Durham and Duke University. The property is within BA floorplans. Over the last two years, all but three units steps of the Lakewood shopping center where the have been renovated and feature new flooring, blinds, Scrap Exchange has initiated the redevelopment of lighting fixtures, plumbing fixtures, counter tops and more than 100,000 SF of dining, retail and entertain- appliances. Ownership has established an improving ment space as a part of the Reuse Arts District. In income trend, creating the opportunity for a buyer to addition, neighborhoods in the Lakewood area have raise lagging rents and further grow the income by seen median single-family home prices increase from renovating the final three units. The property was also approximately $100/sf to nearly $200/sf in the last recently submetered, so the next owner can benefit seven years. from recapturing water expenses. DURHAM NC

Durham, North Carolina is city rich in American history, layered with culture and unending business opportunity.

As one corner of the globally-recognized Research Triangle, Durham’s economic funda- mentals and ever-strengthening sense of community have made it one of the country’s great mid-size cities. It’s also a significant part of the Triangle’s consideration for becoming home to Amazon’s second U.S. headquarters.

Durham, in short, is the city you don’t know you already love. A thriving urban center for entre- preneurism belies its already established reputation for being home to many of the brands that make up “Big Pharma.” Corrojo interiors

The city is pulling in an ever-growing population of young, educated work talent, in addition to those educated in one of the region’s three world-class universities.

In conjunction with a highly-rated nearby inter- national airport, location along major commut- er corridors, and a growing reputation as city on the rise, Durham is a real estate investor’s next great find. Location: Close To What Matters

1 mile

85 LAKEWOOD DISTRICT Monarch

Blackwell The Barclay 147 W Club Blvd The Viceroy Dunhill

Montego House Ave

Chapel Hill Road The Scrap Exchange “redevelopment” DUKE UNIVERSITY Tareyton Square CENTRAL CAMPUS 147

Freeman’s Creative

Lakewood Shopping Center 7 min 10 min 1.1 miles 1.3 miles County Fare GRUB Durham Joe Van Gogh Food Trucks Food Lion Corojo 3 min 0.5 miles Durham Co-op Market Dollar General Hill Road American Chapel W Tobacco Lakew DOWNTOWN ood Ave Blackwell Campus Montego DURHAM The Barclay Cocoa Cinnamon The Lakewood “restaurant” The Viceroy Durham Bulls The Scrap Exchange Tareyton Square Athletic Park LEGEND Freeman’s Creative 147 LAKEWOOD Properties County Fare HISTORIC Corojo DISTRICT New Retail Food Trucks The Corojo Apartments Existing Retail The Lakewood Cocoa Cinnamon Bus Stop Restaurant Foxgate

The Central Durham Portfolio

Location Highlights: • Duke University Medical Center: Short drive to a nationally-reknowned medical center • Commuting Corridors: 15-501, Hwy. 70, and Interstate 85 carry 100,000s of commuters/day to the Triangle’s many employment centers • Smart Neighbors: A couple of minutes’ drive, Duke University’s reputation speaks for itself; NCSSM is considered by many to be the country’s best high school; just north of Walltown.

44 UNITS IN DURHAM Financial: Trailing 12 Months

Trailing 12 Month Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 TOTAL Palmer PotenCal DroEE Fevenue

Base Rental Income 30,827 31,674 34,286 32,926 35,593 31,544 28,908 30,069 28,359 30,599 31,066 37,794 $ 383,645.59 Expense Reimbursement Revenue 4 27 69 - 31 458 - 17 557 98 180 484 $ 1,924.89 Special Services Income ------Parking Income ------Other Income 1,693 706 756 419 181 450 905 711 627 220 670 588 $ 7,925.55

Total PotenCal DroEE Fevenue 32,524 32,406 35,111 33,345 35,804 32,452 29,813 30,797 29,544 30,917 31,916 38,867 $ 393,496.03 General Kacancy / NollecOon Loss ------

GHecCve DroEE Fevenue 32,524 32,406 35,111 33,345 35,804 32,452 29,813 30,797 29,544 30,917 31,916 38,867 $ 393,496.03

OperaOng Expenses QOliOes 3,891 2,251 2,603 4,493 5,048 4,868 4,402 5,597 5,438 5,128 4,084 3,663 $ 51,466.66 Janitorial / Trash - 75 25 140 39 52 39 104 72 23 170 17 $ 755.16 Personnel ------$ - Landscaping/Pool 572 320 572 572 572 572 572 572 572 572 573 572 $ 6,616.30 Security - 156 - - 156 - - 156 - - 179 - $ 647.90 Supplies, R&M 335 512 1,953 930 660 1,327 723 356 630 505 212 1,178 $ 9,319.34 G&A - 215 105 185 134 120 59 290 414 100 496 75 $ 2,192.29 Management Fee 2,426 1,277 1,388 1,401 1,459 1,303 1,163 1,270 1,240 1,320 1,387 1,481 $ 17,113.56 Property Taxes 2,293 2,293 2,293 2,293 2,293 2,293 2,293 2,493 2,176 2,373 2,373 2,283 $ 27,746.74 Insurance 922 922 922 922 922 922 922 922 922 1,014 1,014 1,014 $ 11,343.72 Make-Ready 383 535 1,063 505 65 251 215 546 1,007 326 155 2,145 $ 7,193.98 MarkeOng (438) 1,327 13 369 28 572 2 382 56 543 40 437 $ 3,330.11 Replacement Reserve ------$ -

Total OperaCng GIpenEeE 10,384 9,881 10,936 11,809 11,377 12,280 10,390 12,688 12,527 11,904 10,683 12,866 $ 137,725.76

Net OperaCng Jncome 22,140 22,525 24,175 21,536 24,427 20,172 19,423 18,109 17,017 19,013 21,233 26,000 $ 255,770.27

DEATON.COM/LISTINGS Financial: Trailing 3 Months & Proforma

Trailing 3-Month Jan-18 Feb-18 Mar-18 T-3 Rev Annualized Proforma* 1718 Palmer (Corojo) - 44 units T-3 Exp Potential Gross Revenue Base Rental Income 30,599 31,066 37,794 99,459 $ 397,837.40 $ 456,000.00 Expense Reimb. Revenue 98 180 484 763 $ 3,051.28 $ 8,000.00 Special Services Income - - - - Parking Income - - - - Other Income 220 670 588 1,478 $ 5,910.44 $ 5,910.44 Effective Gross Revenue 30,917 31,916 38,867 101,700 $ 406,799.12 $ 469,910.44 Operating Expenses Utilities 5,128 4,084 3,663 12,875 $ 51,500.80 $ 52,015.81 Janitorial / Trash 23 170 17 210 $ 841.32 $ 849.73 Personnel - - - - $ - $ - Landscaping/Pool 572 573 572 1,717 $ 6,869.68 $ 6,938.38 Security - 179 - 179 $ 716.12 $ 723.28 Supplies, R&M 505 212 1,178 1,895 $ 7,580.16 $ 7,655.96 G&A 100 496 75 671 $ 2,683.00 $ 2,709.83 Management Fee (assume 6%) 1,836 1,864 2,268 5,968 $ 23,870.24 $ 27,360.00 Property Taxes (2017 actual) 2,238 2,238 2,238 6,715 $ 26,861.26 $ 27,129.87 Insurance (2017 actual) 845 845 845 2,536 $ 10,145.00 $ 10,246.45 Make-Ready 326 155 2,145 2,625 $ 10,501.36 $ 10,606.37 Marketing 543 40 437 1,020 $ 4,080.28 $ 4,121.08 Total Operating Expenses 12,117 10,857 13,439 36,412 $ 145,649.22 $ 150,356.77

Net Operating Income 18,801 21,059 25,428 65,287 $ 261,149.90 $ 319,553.67

*Proforma Assumptions *Proforma Assumes $39,000/mo rental income & utility reimbursement of $400/unit for 20 units • Assumes $39,000/mo rental income & utility reimbursement of $400/unit for 20 units Annualized• Annualized Expenses Expenses + 1.0% + 1.0%

44 UNITS IN DURHAM 1718 Palmer (Corojo) - Rent Roll as of April 2018 Unit Unit Type Sq Ft All Lease Move In Expiration Financial: Rent Roll Charges 1700-A pl_3x2R 1,008.00 925.00 03/11/2016 09/10/2016 1700-B pl_2x1R 812.00 875.00 04/25/2018 04/24/2019 1700-C pl_2x1R 812.00 885.00 05/16/2017 08/15/2018 1700-D pl_2x1R 812.00 875.00 02/29/2016 02/27/2019 1700-E pl_3x2R 1,008.00 955.00 02/19/2016 06/30/2018 1700-F pl_2x1R 812.00 875.00 05/22/2018 05/20/2019 1700-G pl_2x1R 812.00 885.00 04/15/2016 01/31/2019 1700-H pl_2x1P 812.00 1,000.00 03/30/2018 03/29/2019 1701-A pl_2x1R 812.00 862.00 03/31/2017 04/01/2019 1701-B pl_2x1R 812.00 895.00 12/01/2015 08/28/2018 1701-C pl_2x1R 812.00 850.00 12/19/2017 06/18/2018 1701-D pl_4x2R 1,264.00 1,100.00 05/10/2016 05/09/2018 1701-E pl_2x1R 812.00 905.00 09/30/2016 06/29/2018 1701-F pl_2x1R 812.00 860.00 12/01/2015 06/08/2018 1701-G pl_2x1R 812.00 875.00 04/30/2018 06/30/2019 1701-H pl_4x2R 1,264.00 1,200.00 11/30/2017 08/29/2018 1710-A pl_2x1R 812.00 875.00 04/07/2018 02/23/2019 1710-B pl_2x1 812.00 850.00 10/01/2014 05/31/2018 1710-C pl_2x1R 812.00 895.00 08/23/2017 05/10/2018 1710-D pl_4x2R 1,264.00 1,035.00 06/07/2016 06/06/2018 1710-E pl_2x1R 812.00 850.00 02/20/2018 08/19/2018 1710-F pl_2x1R 812.00 895.00 06/16/2017 06/15/2018 1710-G pl_2x1R 812.00 895.00 11/14/2017 11/13/2018 1710-H pl_4x2R 1,264.00 1,187.00 09/19/2016 03/27/2019 1711-A pl_2x1R 812.00 860.00 12/08/2017 03/07/2019 1711-B pl_2x1R 812.00 887.00 03/14/2018 09/13/2018 1711-C pl_2x1R 812.00 875.00 01/21/2018 01/20/2019 1711-D pl_3x2R 1,008.00 0.00 1711-E pl_2x1R 812.00 915.00 08/18/2017 08/17/2018 1711-F pl_2x1R 812.00 895.00 01/31/2018 07/30/2018 1711-G pl_2x1R 812.00 875.00 04/13/2018 04/15/2019 1711-H pl_3x2R 1,008.00 760.00 01/22/2018 01/21/2019 1718-A pl_3x2R 1,008.00 1,021.00 12/16/2016 12/15/2018 1718-B pl_2x1 812.00 750.00 03/20/2013 09/16/2018 1718-C pl_3x2R 812.00 1,072.00 03/10/2018 03/11/2019 1718-D pl_2x1R 812.00 895.00 10/21/2016 10/20/2017 1719-A pl_2x1R 812.00 897.00 03/16/2018 03/17/2019 1719-B pl_2x1R 812.00 850.00 12/27/2017 09/26/2018 1719-C pl_2x1R 1,008.00 850.00 01/18/2018 10/17/2018 1719-D pl_3x2R 1,008.00 1,050.00 11/06/2017 08/05/2018 1719-E pl_2x1R 812.00 862.00 02/10/2018 05/22/2019 1719-F pl_2x1 812.00 850.00 08/09/2014 09/15/2018 1719-G pl_2x1R 812.00 925.00 07/05/2017 07/04/2018 1719-H pl_3x2R 1,008.00 985.00 02/09/2016 02/28/2019 44 units $ 39,378.00

DEATON.COM/LISTINGS About Deaton

Since 1981, Deaton Investment Real Estate has handled approximately 2,000 transactions, accounting for more than a billion dollars in multi-family sales.

Located in the Triangle region of North Carolina, encompassing Raleigh, Durham, and Chapel Hill, we specialize in brokering income-producing multi-family investment properties. Thomas “T” Furlow Steve Deaton, CCIM Michael Deaton

Throughout Central and Eastern N.C., we max- imize opportunities for buyers and sellers of rent- For more information on all or any of the properties al investment property, from large apartment listed in this package, call 919/847.1117 or email: complexes to duplexes, triplexes and quads. • [email protected] The company was founded in 1981 by Steve Deaton, • [email protected] who still operates it today. We work with individual, • [email protected] family-oriented buyers and sophisticated, institu- tional investors. You may also visit www.deaton.com.

Deaton is proud to do business with a handshake as easily as we do over the Internet, because the goal is always the same: earn, keep and respect the customer’s business.

44 UNITS IN DURHAM