Investment Property Offering Due South Apartments 8818 S Central Avenue | Phoenix, AZ A 128 Unit Apartment Complex Located in Phoenix, Arizona Bill Hahn Senior Vice President 602 222 5105 – Direct 602 418 9578– Mobile [email protected] Jeffrey Sherman Senior Associate 602 222 5109 – Direct 602 694 1127 – Mobile [email protected] Trevor Koskovich Senior Associate 602 222 5145 – Direct 480 227 7420 - Mobile [email protected] Table of Contents I Executive Summary 1 II Property Photos 3 III Location Maps Aerial - Far 4 Aerial - Birds Eye 5 Parcel Map 6 IV Financial Summary 7 V Comparables Rent 8 Sales 11 VI Appendix Legal Disclaimer www.colliers.com/phoenix Due South Apartments 8818 S Central Avenue | Phoenix, AZ Executive Summary Location 8818 S Central Avenue Phoenix, Arizona 85040 List Price $2,990,000 Price Per Unit $23,359 Price Per Square Foot $50.73 Total Units 128 Building Square Footage 58,944 Number of Buildings 2 Land Acres 3.91 Cross Street Baseline & Central Market Phoenix Year Built 1986 Building Class C HVAC Individual Tax Parcel Number 30045224, -225B, -225C Sub Market South Phoenix Foundation Type Slab Location Class C Number of Stories 3 EXECUTIVE SUMMARY | COLLIERS INTERNATIONAL | 1 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Executive Summary Amenities shopping centers, and a mixture of older and newer single-family homes. The Amenities include air conditioning, main entrance to South Mountain Park, two swimming pools, a basketball court, the largest municipal park in the United picnic area, and coin operated laundry States, is approximately one mile south facility. of the property on Central Avenue. Property Area Due South Apartments is a 128 unit Due South Apartments is located on apartment community comprised of Central Avenue, the major thoroughfare two rectangular three-story buildings running north-south through downtown on a fl ag-shaped lot. All rental units Phoenix. The central business district face inward towards central courtyards including professional sports facilities with a swimming pool in each building. (Chase Field, home of the Arizona There are eight studio units, 108 one Diamondbacks, and US Airways bedroom units, and 12 two bedroom, Arena, home of the Phoenix Suns) is one bath units. The improvements are approximately fi ve miles to the north of constructed of frame and stucco on the property on Central Avenue. The concrete slabs. A separate rental offi ce South Phoenix neighborhood where is situated in a manufactured home on- Due South is located is a neighborhood site. The rental units are individually of upward transition, evidence by metered for electricity. The property the recently-constructed new home owner pays for the cost of water, sewer, subdivision directly across Central and trash collection. Avenue. Other improvements in the immediate area include numerous EXECUTIVE SUMMARY | COLLIERS INTERNATIONAL | 2 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Property Photos PROPERTY PHOTOS | COLLIERS INTERNATIONAL | 3 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Aerial - Far Due South LOCATION MAPS | COLLIERS INTERNATIONAL | 4 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Aerial - Birds Eye LOCATION MAPS | COLLIERS INTERNATIONAL | 5 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Parcel Map Due South EuclidEuclid AveAve 30045224B30045224B 30045224C30045224C 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 30045224 Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave Central Ave DobbinsDobbins RdRd LOCATION MAPS | COLLIERS INTERNATIONAL | 6 Due South Apartments Projected Financial Summary 8818 S Central Avenue | Phoenix, AZ NOTE: The property was recently foreclosed on by the mortgage lender, and limited historical operating data exists. All items of income and expense stated below are estimates, and the vacancy represented is an estimate of future stabilized vacancy. Current vacancy is signifi cantly higher. Actual operating data for the time period since the foreclosure is available from the listing agents. Year Built 1986 Total Units Square Feet 128 58,944 Units Type Sq. Ft. Current Rent Scheduled Rent 8 Studio 288 $299$ 28,704 96 1BD/1BA 432 $349$ 402,048 12 1BD/1BA 560 $369$ 53,136 12 2BD/1BA 704 $449$ 64,656 Annual Scheduled Gross Rent $ 548,544 Est. Stabilized Physical Vacancy 12.0% $ 65,825 Economic Vacancy 8.0% $ 43,884 Total Vacancy 20.0% $ 109,709 Net Rental Income $ 438,835 Other Income $ 24,000 Gross Operating Income$ 462,835 OPERATING EXPENSES Property Taxes$ 38,741 Insurance $ 22,300 Payroll$ 105,300 Professional Management (5% GOI)$ 23,142 Utilities$ 48,540 Turnover Cost$ 19,780 Maintenance and Repairs$ 32,100 Administrative Cost$ 18,600 Marketing$ 7,800 Capital Replacement Reserve$ 27,000 Total Operating Expenses $ (343,303) Operating Cost Per Unit $ (2,682) Operating Cost Per Sq Ft $ (5.82) Net Operating Income $ 119,532 FINANCIAL SUMMARY | COLLIERS INTERNATIONAL | 7 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Rent Comparables Adjusted Monthly Rent Monthly Monthly Rent / Property Location Year Built % Vacant Unit Mix Total Units S.F. Rent S.F. Photo !"# $ $ % & '() * +(" , % % -" . $ $ $ % /0 (" $!"# $ % % & '() $ +$ $ % % * +(" , % % (12 , $$ /0 $/ (" !"# 3 % & '() 0 $1 4 % 4"# 3 1 4 $ $ $$ % * +(" , $$ % $ !0 2 $ /0 % !"# % $ % & '() $ %$ % * +(" , $ (" , % COMPARABLES | COLLIERS INTERNATIONAL | 8 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Subject Property RentalComparison Due South Apartments | 8818 S Central Avenue, Phoenix AZ Unit Mix Total Units S.F. Monthly Rent Monthly Rent / S.F. /0 $ $ $ $ $ $ % Totals/Averages 128 461$ 357 $ 0.79 45 1&56/044 6 Unit Mix Total Units S.F. Monthly Rent Monthly Rent / S.F. /0 $ $ % $ % $ $ $ % % $ $ % % % Totals/Averages 639 674$ 509 $ 0.78 COMPARABLES | COLLIERS INTERNATIONAL | 9 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Rent Comparable Map 5 3 2 4 1 1. Subject Property Due South Apartments 8818 S Central Avenue | Phoenix, Az 2 4 Corte Linda Arbor Village 1630 E. Baseline Road | Phoenix, Az 8028 S Central Avenue| Phoenix, Az 3 5 Westview Mountain Vista 40 E. Sunland Avenue | Phoenix, Az 358 E Roeser Rd | Phoenix, Az COMPARABLES | COLLIERS INTERNATIONAL | 10 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Sales Comparables Property Year # Sales Price/ Close of Property Location Built Units Unit Mix Price Unit Price/SF Escrow Photograph Hillcrest Arms 1983 27 2 Studio$ 550,000 $20,370 $30.99 6/5/2009 1908 N 32nd St 23 1BD/1BA Phoenix, AZ 85008 2 2BD/1BA Hatcher Square 1984 22 22 2BD/1BA$ 550,000 $25,000 $36.50 7/1/2009 9430 N. 11th Ave. Phoenix, AZ 85021 Regency Apartments 1985 36 8 1BD/1BA$ 800,000 $22,222 $29.29 6/12/2009 4308 N Longview Ave 28 2BD/1BA Phoenix, AZ 85014 Casa Blanca 1985 21 11 1BD/1BA$ 410,000 $19,524 $31.10 6/1/2009 3131 N Black Canyon Hwy 10 2BD/1BA Phoenix, AZ 85015 AVERAGES 1984 21$ 577,500 $21,779 $31.97 COMPARABLES | COLLIERS INTERNATIONAL | 11 Due South Apartments 8818 S Central Avenue | Phoenix, AZ Sales Comparables Map PEORIA PHOENIX 2 GLENDALE PARADISE VALLEY 4 5 3 MESA TEMPE 1 1. Subject Property Due South Apartments 8818 S Central Avenue | Phoenix, Az 2 4 Casa Blanca Regency Apartments 3131 N Black Canyon Hwy | Phoenix, Az 4308 N Longview Ave| Phoenix, Az 3 5 Hillcrest Arms Hatcher Square 1908 N 32nd St | Phoenix, Az 9430 N 11th Avenue | Phoenix, Az COMPARABLES | COLLIERS INTERNATIONAL | 12 Colliers International Legal Disclaimer This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. 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