5500 Mable Avenue For more information, please visit Saint Louis, MO 63140 www.Suburban.Results-Commercial.com $4,500,000 104 Unit UMSL Student Housing Community AN EXCLUSIVE MULTI-FAMILY OFFERING PAUL CUNNINGHAM PATRICE TENBROEK MULTI-FAMILY INVESTMENT ADVISOR DIRECTOR, COMMERCIAL SERVICES 314.406.4896 314.614.0247 [email protected] [email protected] Property Highlights • 248 Bed UMSL Student Housing • Average Unit Size: 728 Sq Ft • Attractively Priced at $18,145 Per Bed • Gated Controlled Access • Completely Renovated 2013-2016 • 24/7 Recorded Security Cameras • Lowest Rent in Submarket @ $297 per Bed • Onsite Leasing Office • Average Unit Rent: $708/Month • Emergency Maintenance • In-Unit Washer/Dryer in all Units • 95% Occupied TABLE OF CONTENTS 4-10 LOCATION DESCRIPTION 11-19 PROPERTY DESCRIPTION 20-34 FINANCIAL ANALYSIS 35-42 RENT COMPARABLES 43-48 SALE COMPARABLES 49-69 ECONOMIC & DEMOGRAPHIC OVERVIEW Location Description Suburban Heights is conveniently located in northwest St. Louis County with immediate access to I-70 and I-170. The property is only minutes from the University of Missouri – St. Louis and a short commute to Lambert St. Louis International Airport, light rail transit system stations, and top area employers such as Express Scripts, Boeing, and the world headquarters of Emerson Electric. The community is also located only eleven minutes from St. Louis Community College – Florissant. University of Missouri – St. Louis Campus LOCATION DESCRIPTION Suburban Heights Apartments is located at the intersection of Mable and Suburban Avenues, less than 8 miles from Clayton and 13 miles from downtown St. Louis. The property is within close proximity of Interstate 70 and Interstate 170, providing easy commuting throughout the St. Louis metro region, and is also located near top area employers, University of Missouri – St. Louis, and St. Louis Lambert International Airport. Nearby conveniences include PNC Bank, Walgreens, Starbucks, Schnucks, U.S. Bank, Gold's Gym, CVS Pharmacy, and Target. 5 LOCATION DESCRIPTION 6 LOCATION DESCRIPTION Suburban Heights is located within walking distance of NorthPark Business Park, a newly developed 550 acre premier business park which will host over five million square feet of dramatic buildings designed to compliment the surrounding environment. Over 1 million square feet of development has been constructed to date. 7 7 LOCATION DESCRIPTION Over 5,000 permanent jobs were created to date and NorthPark Partners have invested Express Scripts Headquarters - Building I over $291 million dollars to date. The business park is located within walking distance of Express Scripts Business Ctr - Building II Suburban Heights Apartments. Express Scripts Office & Data System Express Scripts Tech/Innovation Center Express Scripts Office NorthPark Distribution Center One Hilton Garden Inn Hotel NorthPark Business Center One Schnucks Distribution Center SKF Manufacturing 8 8 LOCATION DESCRIPTION MetroLink is the light rail transit system in the Greater St. Louis area of Missouri and the Metro East area of Illinois. The system consists of two lines connecting Lambert-St. Louis International Airport and Shrewsbury, Missouri with Scott Air Force Base near Shiloh, Illinois through downtown St. Louis. Suburban Heights is located 1.8 miles from the N. Hanley MetroLink station and 2.8 miles from the UMSL North station. 9 LOCATION DESCRIPTION / SURVEY 10 Property Description Suburban Heights is a 104-unit, garden-style apartment community situated on 5.49 acres. The community consists of six two-story buildings with brick exteriors and pitched shingled roofs. From 2013 to 2016 the owners completed a $3.6 million top-to-bottom renovation of the complex. The property offers a unit mix of eight one-bedroom units measuring 525 square feet each, 49 two-bedroom units measuring 730 square feet each, and 47 three-bedroom units measuring 760 square feet each, for an overall average unit size of 728 square feet. Community amenities include gated/controlled access, 24/7 recorded security cameras, on- site leasing office and common area with separate entrance and emergency maintenance. The in-unit amenities include a kitchen with a stove, dishwasher, microwave and a refrigerator, as well as free Wi-Fi, cable ready, and a washer/dryer in every unit. North County Inc. (NCI) recognizes leaders for making a significant positive impact in North County and awarded the owner of Suburban Heights Apartments with an NCI Business Development Award in 2017. The award was presented to those whose efforts have positively affected the economic development in North St. Louis County. PROPERTY DESCRIPTION AMENITIES •Key-Fobbed Gated Community •24/7 Recorded Security Cameras •On-Site Leasing Office •Emergency Maintenance •Cable Ready Units •Washer/Dryer in Every Unit •WiFi Complementary to Tenants 12 PROPERTY DESCRIPTION 13 PROPERTY DESCRIPTION The current ownership has performed a top-to-bottom renovation of Suburban Heights, with more than $3.6 million spent over 3+ years. COMMON AREA IMPROVEMENTS SINCE 2013 •Installation of all new gate actuators •Installation of new call box at each entry •Installation of all new exterior lights around each building •Installation of cameras •All common areas were renovated •Post Office installed all new postal boxes •Installation of extensive landscaping, mulch •Grading and installation of walkways for several new buildings •Installation of several underground drains for downspouts •Repair/resurfacing and sealing of asphalt areas and drives •Installation of all new hi speed internet boxes in the attics •Built on site leasing office and common area with separate entry •Removed all gas lines (now individually metered electric) •Replacement of all roofs, down to decking 14 PROPERTY DESCRIPTION UNIT IMPROVEMENTS SINCE 2013 •Installation of all new water and sewer lines •Installation of all new washer/dryer units •Installation of all new copper wiring •Installation of all new lighting and fixtures •Installation of all new furnaces •Installation of all new plumbing fixtures •Installation of all new A/C units •Installation of all new outlets/switches and GFCI’s •Installation of ductwork, wrapping etc. •Installation of all new entry doors •Installation of all new insulation •Installation of all new interior doors and closet doors •Installation of new drywall in all units •New paint throughout •Installation of all new sub floors and floor coverings •Installation of all new wired smoke alarms •Installation of all new kitchen cabinets and countertops •Installation of all new electrical panels, including 200amp panels in common areas •Installation of all new bathtubs and tub surrounds •Installation of all new wiring/cable and CAT 6 in all units behind walls •Installation of all new bathroom vanities •New closet shelving in each unit •Installation of all new 40 gallon hot water heaters •New blinds in each unit 15 PROPERTY DESCRIPTION Prior to Renovations After Renovations 16 PROPERTY DESCRIPTION 17 PROPERTY DESCRIPTION 18 18 PROPERTY DESCRIPTION 19 Financial Analysis FINANCIAL ANALYSIS 21 FINANCIAL ANALYSIS Revenue Alocation Gross Potential Income $867,187 Total Economic Loss Total Economic Loss ($67,601) 7.80% Property Taxes Property Taxes ($53,097) 6.12% Operating Expenses ($365,902) 42.19% Operating Expenses Debt Servicing ($248,002) 28.60% Debt Servicing Net Cash Flow $132,585 15.29% Net Cash Flow 100.00% Equity Position / Growth Projected Value UPB $4,632,000 $3,552,388 Year 1 $4,717,000 $3,502,041 Year 2 $4,804,000 $3,448,800 Year 3 $4,893,000 $3,392,500 Year 4 $4,984,000 $3,332,965 Year 5 $5,076,000 $3,270,010 Year 6 $5,171,000 $3,203,437 Year 7 $5,268,000 $3,133,038 Year 8 $5,367,000 $3,058,595 Year 9 $5,468,000 $2,979,874 Year 10 22 FINANCIAL ANALYSIS Distribution of Expenses Real Estate Taxes $53,097 12.67% Insurance (4) $22,396 5.35% Real Estate Taxes Utilities/Waste Removal $69,905 16.68% Insurance Utilities Maintenance Labor, leasing mgr $85,000 20.29% Contracted Services Repairs & Maintenance, Cleaning $48,358 11.54% Repairs & Maintenance Marketing & Promotion $15,000 3.58% Marketing & Promotion General & Administrative $7,700 1.84% General & Administrative On-Site Payroll - P/T leasing $12,500 2.98% On-Site Payroll Management Expense (2) $47,975 11.45% Management Fee Other $16,000 3.82% Replacement Reserve Other $20,268 4.84% Replacement Reserve $20,800 4.96% Total Expenses $418,999 100.00% 23 24 FINANCIAL ANALYSIS 25 FINANCIAL ANALYSIS 26 27 28 FINANCIAL ANALYSIS 29 FINANCIAL ANALYSIS / RENT ROLL Rent Roll As of 1/1/2019, Suburban Heights, Current leases, All units Suburban Heights Recurring Unit Lease Start Lease End Bed/Bath Rent Non-rent Credits Total Deposits Held Suburban Heights 5500 Mable A1 7/10/2018 8/31/2019 3 Bed/1 Bath $785.00 $0.00 $0.00 $785.00 $200.00 5500 Mable A2 9/5/2018 9/30/2019 3 Bed/1 Bath $675.00 $0.00 $0.00 $675.00 $300.00 5500 Mable A3 7/14/2018 7/31/2019 1 Bed/1 Bath $575.00 $0.00 $0.00 $575.00 $300.00 5500 Mable A4 6/25/2018 6/30/2019 1 Bed/1 Bath $605.00 $0.00 $0.00 $605.00 $300.00 5500 Mable B1 2/25/2017 5/31/2019 3 Bed/1 Bath $772.00 $0.00 $0.00 $772.00 $300.00 5500 Mable B2 9/1/2017 8/31/2019 3 Bed/1 Bath $740.00 $35.00 $0.00 $775.00 $200.00 Utility Income $35.00 5500 Mable B3 8/1/2018 8/31/2019 1 Bed/1 Bath $575.00 $0.00 $0.00 $575.00 $600.00 5500 Mable B4 12/22/2017 1/31/2020 1 Bed/1 Bath $580.00 $0.00 $0.00 $580.00 $300.00 5506 Mable A1 1/10/2018 5/31/2019 1 Bed/1 Bath $575.00 $0.00 $0.00 $575.00 $300.00 5506 Mable A2 8/5/2016 8/31/2019 1 Bed/1