COMMERCIAL REALTY RESOURCES COMPANY MULITFAMILY INVESTMENT SERVICES Arkansas Oklahoma Kansas Exclusively Presents: Aaron Hargrove CRRC-Tulsa 918.557.5966 [email protected] Mike Buhl CRRC-OKC 405.360.5966 London Square at Southern Hills [email protected] 2217 East 59th Street Brad James Tulsa, Oklahoma CRRC - Arkansas 479.739.4480 [email protected] 182-Units Darla Knight CRRC - Kansas 316.361.0479 [email protected] Providing professional apartment brokerage and marketing services for over 21 years www.crrc.us Page 1 COMMERCIAL REALTY RESOURCES COMPANY MULITFAMILY INVESTMENT SERVICES Table of Contents London Square at Southern Hills Property Highlights----------- 1 • Map and Photos • Property Information • Unit Mix • Floor Plans • Site Map Purchase Price & Terms----------------------------------------------- 2 Income/Expense Proforma-------------------------------------------- 3 Rent/Sale Comps------------------------------------------------------- 4 Tulsa Overview--------------------------------------------------------- 5 The information included herein is from reliable sources, but is not guaranteed and is offered subject to errors and omissions. www.crrc.us Page 2 1 www.crrc.us Page 3 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES PROPERTY HIGHLIGHTS • Excellent location in the prime Southern Hills area • Perfect property and location for a 55+ community • Six private courtyards with swimming pools included www.crrc.us Page 4 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES www.crrc.us Page 5 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES www.crrc.us Page 6 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES www.crrc.us Page 7 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES Property A two-story garden style apartment community consisting of 6 two-story residen- Description: tial buildings and 1 freestanding clubhouse/laundry facility with a total of 182- units. Location: London Square at Southern Hills is located on the north side of East 59th Street, one block west of South Lewis Avenue in the southern portion of Tulsa. East 59th Street is a two-lane, east/west secondary road that intersects South Lewis Avenue, approximately one block to the east. Lewis Avenue is a primary north/south arte- rial road, which intersects Interstate 44 approximately one mile north. Lewis Ave- nue is a heavily developed commercial corridor south of Interstate 44, with many neighborhood shopping centers, upscale dining, Wal-Mart Supercenter, Tulsa Mar- riott at Southern Hills, Oral Roberts University and Southern Hills Country Club, which hosted the 2007 PGA Championship. London Square at Southern Hills is also within close proximity to Oral Roberts University, Wal-Mart Supercenter, Tulsa Marriott at Southern Hills, and several retail and dining centers. Number of Units: 182 Number of 6 Buildings: Parking: 204 (1.12 per unit) Year Built: 1965 (according to courthouse records) Construction London Square at Southern Hills has brick veneer and wood siding exterior. The Features: roofs are pitched with composition shingles. The parking areas are asphalt with concrete curbs and walkways. Property Six Swimming Pools Amenities: Landscaped Courtyards Six On-Site Laundry Facilities All Bills Paid Huge Floorplans Woodburning Fireplaces Built In Bookshelves Oversized Closets Ceiling Fans Frost-Free Refrigerators HVAC: The property is master metered for utilities and served by a forced air two pipe chilled water air conditioning system and boiler heating system. Utilities: All Bills Paid Site/Land Area: 260,998 Sq Ft/5.99 acres (30 units per acre) Occupancy 80% Real Estate Taxes $44,263 – 2007 www.crrc.us Assessed Value: $374,000 Tax Rate: $118.35 per 1,000 Page 8 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES UNIT MIX/MARKET RENTS No. Units #Bdrm Sq.Ft. Total Sq.Ft. Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr. 50 1 Bed 626 31,300 475.00 0.76 23,750 285,000 122 2 Bed 907 110,654 625.00 0.69 76,250 915,000 10 3 Bed 1,365 13,650 925.00 0.68 9,250 111,000 182 855 155,604 600.27 0.70 109,250 1,311,000 DISTRIBUTION RATIO 3 Bed 5% 2 Bed 1 Bed 68% 27% www.crrc.us Page 9 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES FLOOR PLANS 1 Bedroom 2 Bedroom 3 Bedroom www.crrc.us Page 10 2 www.crrc.us Page 11 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES TERMS Purchase Price: $6,900,000 Terms of Sale: Cash to Seller at Closing Price Per Apartment Unit: $37,912 Price Per Net Rentable Sq. Ft. $44.34 Cap Rate: 8.00% (Based on Proforma) Cash-On-Cash: 13.22% (Based on Proforma) www.crrc.us Page 12 3 www.crrc.us Page 13 London Square @ Southern Hills - Offering Analysis Run Date: 21-Aug-07 Purchase Price:$ 6,900,000 Cap Rate: 8.00% Project: London Square ` Per Unit:$ 37,912 Cash-On-Cash: 13.22% Number of Units: 182 Cost Per SF:$ 44.34 NOI:$ 552,293 No. Units #Bdrm Sq.Ft. Total Sq.Ft. Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr. 50 1 Bed 626 31,300 475.00 0.76 23,750 285,000 122 2 Bed 907 110,654 625.00 0.69 76,250 915,000 10 3 Bed 1,365 13,650 925.00 0.68 9,250 111,000 182 855 155,604 600.27 0.70 109,250 1,311,000 INCOME Proforma Per Unit Gross Rentals 1,311,000 7,203 Concessions/Loss to Lease 6% 78,660 432 Less Vacancy 5% 65,550 360 Potential Financing Total Rental Income 1,166,790 6,411 Original Bal. $ 5,520,000 Other Income 46,000 253 20% Equity $ 1,380,000 Gross Income 1,212,790 6,664 Maturity 10 EXPENSE Amortization 30 Payroll 140,000 769 Interest Rate 6.70% Advertising 18,000 99 Constant 7.743% Maintenance/Repairs 92,000 505 Debt Service $ 427,432 Administration 12,000 66 Interest Only 3 yr $ 369,840 Management Fee 4% 48,512 267 DCR - P&I 1.29 Utilities 195,000 1,071 DCR - I.O. 1.49 Taxes 74,486 409 Insurance 35,000 192 Replacement Reserves 45,500 250 Total Operating Expense 660,497 3,629 NET OPERATING INCOME 552,293 3,035 Debt Service I.O. 369,840 2,032 Cash-Flow Before Taxes 182,453 1,002 ® 4 www.crrc.us Page 15 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES Rent Comps Property Occupancy Rental Rates RENT/ APT TYPE SQ. FT RENT SQ. FT 1 Bdrm 700 $485.00 $0.69 1 Heatherwood 98% 3006 E 51st St 2 Bdrm 950 $640.00 $0.67 Tulsa, OK 2 Bdrm 1,100 $665.00 $0.60 RENT/ APT TYPE SQ. FT RENT SQ. FT French Villa 1 Bdrm 700 $560.00 $0.80 2 4752 S Harvard 2 Bdrm 990 $660.00 $0.67 Tulsa, OK 3 Bdrm 1,300 $850.00 $0.65 3 Bdrm 1,350 $925.00 $0.69 RENT/ APT TYPE SQ. FT RENT SQ. FT 1 Bdrm 660 $507.00 $0.77 Southern Elms 1 Bdrm 857 $656.00 $0.77 3 4519 E 31st 100% 2 Bdrm 970 $661.00 $0.68 Tulsa, OK 2 Bdrm 1,104 $748.00 $0.68 3 Bdrm 1,175 $774.00 $0.66 www.crrc.us Page 16 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES Sale Comps Location Map 1. Woodhollow 2. Royal Arms 3. Kenwood Hills 4. 5400 South 5. Colonial Park 6. Southern Gardens www.crrc.us Page 17 London Square at Southern Hills 2217 East 59th Street COMMERCIAL REALTY RESOURCES COMPANY Tulsa, Oklahoma MULITFAMILY INVESTMENT SERVICES Sale Comps Number Sale Price Price/ Price/ Year Date of Units Unit Ft. Built Sold Woodhollow 1 5972 E 33rd Ct 42 $1,550,000 $39,905 $86.48 1972 Jun-07 Tulsa, OK Royal Arms 2 5116 S Norfolk 100 $3,450,000 $34,500 $77.54 1964 May-07 Tulsa, OK Kenwood Hills 3 512 E Madison St 99 $3,950,000 $39,899 $73.34 1970 Jan-07 Broken Arrow, OK 5400 South 4 4706 E 54th Street 153 $5,550,000 $35,948 $75.98 1972 Nov-06 Tulsa, OK Colonial Park 5 7625 E 21st Street 208 $7,900,000 $37,981 $67.77 1968 Oct-06 Tulsa, OK Southern 6 Gardens 52 $1,950,000 $37,500 $77.58 1968 Sept-06 1027 E 41st Street Tulsa, OK www.crrc.us Page 18 5 www.crrc.us Page 19 Tulsa COMMERCIAL REALTY RESOURCES COMPANY Information MULITFAMILY INVESTMENT SERVICES Remaining below the national average in unemployment, and reporting net new job growth, Tulsans enjoy a cost of living that is 8 percent BELOW the national aver- age and county per capita income that is 11 percent ABOVE the national average. Tulsa’s envious labor force clusters — 8th in aerospace, 9th in oil and gas, and 17th in technology maintain stability for the region while entrepreneurship and small business make up its backbone. Nearly eighty percent of the region’s businesses contain 10 or fewer employees. With a cost of doing business 20 percent BELOW the national average, a highly educated labor pool, and a $500 million improvement package, Vision 2025 underway, Tulsa’s economy is expected to nearly double its job growth next year.