4648 Cuming Street - LoopNet · year for the College World Series. Home to the Oracle of Omaha...
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Transcript of 4648 Cuming Street - LoopNet · year for the College World Series. Home to the Oracle of Omaha...
CONFIDENTIALITY AND DISCLOSUREThe information contained in the following Offering Memorandum ("OM") is proprietary and strictly confidential. It is intended to be reviewed only by
the party receiving it from Investors Realty, Inc. (“IRI”) and should not be made available to any other person, entity, or affiliates without the written
consent of IRI. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the
strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the OM. If you have no interest in the subject
property at this time, please return this OM to IRI. This OM has been prepared to provide summary, unverified information to prospective purchasers,
and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. IRI has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the
subject property, the future projected financial performance of the property, the size and square footage of the property, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy
of the subject property. The information contained in this OM has been obtained from sources we believe to be reliable; however, IRI has not verified,
and will not verify, any of the information contained herein, nor has IRI conducted any investigation regarding these matters and makes no warranty or
representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to
verify all of the information set forth herein.
NON-DISCLOSURE NOTICEIRI is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this OM. The presence of any corporation's logo or
name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, or any agent, product, service, or commercial listing of IRI,
and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
SECTION three MARKET INFORMATIONSale Comparables
Greater Omaha Overview
Omaha Multifamily Market Analysis
Dundee Neighborhood Summary
Demographics
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Property Description
Construction
Capital Improvements
Parking
Features & Amenities
Aerial
SECTION TWO Property Overview 7
SECTION ONE Executive Summary 5IntroductionInvestment HighlightsTours Debt Offer Submission
4648 Cumming Street
4648 Cuming Street
Executive summary
Executive Summary
Price $1,200,000
Occupancy 91.6%
Net Operating Income (Pro Forma) $89,755
Capitalization Rate (Pro Forma) 7.48%
Year of Construction 1963
Number of Units 24
Number of Buildings 2
Site Size 15,000 SF|.34 Acres
Rentable Square Feet 11,592
Omaha Submarket Dundee
INTRODUCTIONInvestors Realty, Inc. is pleased to present the opportunity to acquire this 24-unit multifamily
building located in the prestigious Dundee submarket. 4648 Cuming Street offers a stabilized
investment opportunity. Its location is an asset as it is in close proximity to the Midtown
Omaha submarket with easy access to the rest of the Omaha MSA. With a strong, diverse
economy, Omaha continues to have very low unemployment and steady population growth.
TOURSProspective purchasers will have the opportunity to visit the Property via pre-scheduled tours.
These tours will include access to a representative sampling of units and access to common
areas and other similar facilities. To accommodate the Property’s ongoing operations, tours
will require advanced notice and scheduling through Investors Realty, Inc.
DEBTThe Property is offered free and clear of debt and available for new financing.
OFFER SUBMISSIONOffers shall include, but not be limited to:
» Purchase Price and Earnest Money
» Due Diligence Period
» Description of financing contingency
» Closing Date
INTERSTATE
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Midtown
Eppley Airfield
Council Blu�s
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NEBRASKA
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Millard
Elkhorn
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West Maple Road
West Dodge Road
West Center Road
La Vista
PapillionGretna
Bellevue
Downtown
4648 CUMING STREET
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propert y overview
4648 Cuming Street
PROPERTY DESCRIPTIONNumber of Units 24
Number of Buildings 2
Gross Building Area 11,592
Land Area (SF) or (Acres) 15,000 SF|.34 Acres
Year of Construction 1963
Zoning R7 Medium Density Multiple Family Residential
Flood Plain No
CONSTRUCTIONFrame Wood
Roof Asphalt shingle
Plumbing Copper supply, caste waste
Electric Copper
HVAC Gas furnaces, electric window air
Exterior Finish Brick
Number of Stories 3
UTILITIES|SERVICESCable|Internet|Phone Cox Communications
Electric Omaha Public Power District
Water|Sewer Metropolitan Utilities District
IMPROVEMENTSNew asphalt parking lot and striping
New mulch beds and bushes|flowers
New LED exterior lights
PARKING22 Surface spaces
Additional street parking
Electricity is paid by tenants
The electrical house meter is paid by Landlord
Landlord pays gas, water and sewer directly and is not reimbursed by tenants
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INTERIOR UNIT AMENITIES
UNIT BREAKDOWN
Efficient floor plan Microwave
Large closets Oven
Direct access Range
Air conditioning
Unit Type Square Feet Units
Studio 375 1
One Bedroom|One Bath 375 1
One Bedroom|One Bath 550 22
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Aerial
4648 Cumming Street
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Market Information
4648 Cuming Street
sale comparables
1. 4716 Cuming Street
5. 805-807 North 50th Street 6. 1015 North 47th Avenue
2. 7511 Cass Street 3. Shirley Ann Apartments
4. Oak View Apartments
Site Complex Address Price Sale Date Year Built SF Units Per Unit Price Price Per SF
1 4716 Cuming Street 4716 Cuming Street $750,000 07.25.2018 1964 7,185 12 $62,500 $104.38
2 7511 Cass Street 7511 Cass Street $1,500,000 08.08.2018 1984 16,884 24 $62,500 $88.84
3 Shirley Ann Apartments 5820 Erskine Street $1,450,000 11.01.2018 1968 30,205 26 $55,769 $48.01
4 Oak View Apartments 3915 North 70th Circle $1,550,000 01.11.2019 1973 19,875 30 $51,667 $77.99
5 805-807 North 50th Street 805-807 North 50th Street $675,000 05.14.2019 1921 9,306 12 $56,250 $72.53
6 1015 North 47th Avenue 1015 North 47th Avenue $550,000 05.17.2019 1963 6,804 12 $45,833 $80.83
7 4648 Cuming Street 4648 Cuming Street $1,200,000 1963 11,592 24 $50,000 $103.52
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GREATER OMAHA OVERVIEW
With approximately 1.3 million residents within the Greater Omaha area, the region is known for its beef, but a major cash cow is also technology. The modern economy is diverse and built primarily on skilled knowledge jobs.
Omaha sits on the banks of the Missouri River and boasts a steady economy with a low unemployment rate and an affordable cost of living which proves enticing for
both companies and families.
It’s been named one of the Top 10 Cities to Raise a Family. Parents love the Henry
Doorly Zoo and Aquarium which has been ranked one of the best zoos in the world
by TripAdvisor. Baseball fans throughout the country converge on the Big O every
year for the College World Series. Home to the Oracle of Omaha Warren Buffett,
his company, Berkshire Hathaway is one of four Fortune 500 companies in the
country’s 59th largest city.
Over the past few decades, the Omaha area has been growing by about 1.2% per
year. It is the 39th fastest growing metro area in the nation. Despite that growth,
Omaha is known as a 20-minute city. Residents and visitors can travel nearly
anywhere in town in a short amount of time, making it a convenient place to live,
play and work.
OMAHA OFFERS BUSINESSES• Strategic, central location
• Hub of the nation’s fiber connectivity
• Pro-business climate; low cost of doing business
• Business incentives that reward performance
• Stable and healthy economy
• Educated, motivated and affordable workforce
• Savings on real estate costs
• Lower cost of living
• Available, reliable utilities
FORTUNE 500 ANCHORS:
FORTUNE 1 ,000
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MISSO
URI RIVER
C A S S
D O D G E
D O U G L A S
S A R P Y
S A U N D E R S
W A S H I N G T O N
H A R R I S O N
M I L L S
P O T T A W A T T A M I E
PAPILLION
BLAIR
PLATTSMOUTH
BELLEVUE
FREMONT
COUNCIL BLUFFS
OMAHA
LINCOLN
I O W A
Top States, Gallup Job Creation
Index (Nebraska)
#5
#2Best Places to Live
(Papillion, Nebraska)
#2Best City to Find a Job
#3Best States for Doing Business
(Nebraska)
2016
2015
OMAHA MAP
2015
2015
2015
The U.S. Healthcare
Affordability Index
#1
2015’s Best Cities to Work
for a Small Business
#5
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OMAHA MULTIFAMILY MARKET ANALYSIS Apartment values continue to increase in the Omaha MSA. Recently, the Greenhouse
Apartments (sale price of $136,434 per unit) and Southwest Gables (sale price of
$111,667 per unit) pushed up the average price in the second half of 2018 to over
$80,000 per unit. On an annual basis, the average per unit sale price increased over
2017 with $64,541 in 2018 per unit compared to $61,819 per unit in 2017.
Despite the increased prices, we continue to see the pool of potential buyers for
apartment properties to be large. Many buyers are from larger markets looking to
secondary and tertiary markets, like Omaha, in hopes of finding higher capitalization
rates and more stability. The slight uptick in interest rates has little or no impact on
capitalization rates.
Most deals seem to be won by a unique buyer that may have a reason to pay a premium,
whether a 1031 exchange, operating efficiencies from owning a neighboring property,
or an acquisition department that needs to accomplish a win. Several sales have been
of mismanaged property where a buyer believes they will be able to manage up a 4%
capitalization rate into a 7% or 8% capitalization rate deal. Sophisticated management
teams are finding additional revenue streams while being vigilant with their costs.
Unfortunately, with higher sales, the local county assessors are catching wind and are
adjusting their annual tax valuation upward, which will have a negative impact on a
property’s market value.
OMAHA MULTIFAMILY PERMITSNationally and locally, apartment developers may be taking a breather in their rush
to build new apartments evidenced by a 2018 slowdown in construction permits.
Nationally, according to data from the U.S. Census, there were 386,000 permits in 2015,
381,000 in 2016, 343,000 in 2017 and only 324,000 in 2018. Omaha’s trend, illustrated
in the chart, is similar to the national trend. According to the Omaha Chamber of
Commerce, the Omaha MSA had 2,116 multifamily units permitted in 2017 and only half
of 2017’s total in 2018 at 1,041 permits. The construction projects permitted several
years ago are now nearing completion with roughly 4,000 units under construction
which will a come on line in 2019 and 2020. Increased construction costs, expensive
land, flattening rents and potentially more expensive debt, may create a more difficult
environment to get projects to pencil.
2018 ANNUAL MULTIFAMILY OMAHA MSA STATISTICSW• $194,270,473 in sales volume
• Average sale price per square foot $65.58
• 3,010 total units sold
• 48 multifamily building sales
• Average price per unit $64,541
• 5.7% vacancy according to Costar
• Forecast: Sales volume will continue to be strong in 2019 and
supply will be tight for investors.
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2,500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
367684
9811,225
1,605 1,650
1,2921,565
2,116
1,041
Omaha MSA Multifamily Permits
Source: Omaha Chamber of Commercial
Tota
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Omaha MSA Historical Total Multifamily Sales & Historical Average Price Per Unit
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
$70,000
$100$110
$120$130
$140$150
$160$170$180$190$200
2012 2013 2014 2015 2016 2017 2018Omaha Multifamily Sale Price Per Unit Omaha Historical Multifamily Total Sales
Source: Investors Realty Multifamily Research Department
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DUNDEE NEIGHBORHOOD SUMMARYThe Dundee-Happy Hollow Historic District borders directly west of Midtown Omaha.
The “heart” of Dundee is located at 50th and Underwood Avenue, about three miles west
of Omaha’s Downtown CBD. This historical district was founded in 1880 and has been
dubbed Omaha’s first suburb.
During World War II, a Japanese incendiary balloon exploded over Dundee. Very few of
the Japanese bombs made it that far inland, fortunately, it exploded ineffectually above
the area and no one was harmed. News of the bomb was not released until the day after
the Japanese surrendered. A commemorative plaque is located on the south side of
Underwood Avenue, just went of North 50th Street.
Until the 1990s, a nationally known favorite was the soda fountain at Kohll’s Pharmacy (fka
Cris Rexall Drug). Many times, over the years the National Association of Soda Jerks would
meet at the Dundee location.
Dundee is host to many chef-based restaurant and other popular eateries including: Avoli
Osteria, Dario’s Brasserie, Marks Bistro, Dundee Dell Goldberg’s, Pitch Pizzeria, Cupcake!
Omaha and eCreamery. With its close proximity to the Midtown Omaha submarket,
Midtown Crossing, a mixed-use development featuring upscale restaurants, specialty
shops and Alamo Drafthouse Cinema and The Blackstone District are revitalized areas with
shopping, fine dining and nightlife options are alternative options for entertainment.
Memorial Park and Elmwood Park are two major parks in Dundee. The Dundee-Memorial
Park district has been named one of the American Planning Association’s Great American
Places because of the neighborhood pro-active vibrant community.
The Dundee Community Garden was organized to grow and share local produce. In
addition to garden plots for individuals and families, four plots are designed as “food pantry”
plots with all produce from these plots donated to various community organizations. Over
the past few years, the Garden has added fruit trees, pollinator flowers, solar panels, rain
barrels and composting. Many special events are hosted by the Dundee Community
Garden each year.
University of Nebraska at Omaha is located within a couple miles of the Property. As both a
Metropolitan University and a Carnegie Doctoral Research institution, the University offers
more than 200 undergrad programs and 70+ graduate degrees and certificates. Total
enrollment for the University exceeds 16,000.
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2019 DEMOGRAPHIC PROFILEOne-Mile Three-Mile Five-Mile
Population 21,311 148,945 286,201
Average HH Income 77,680 60,325 63,826
Total Households 9,545 62,819 118,479
2024 DEMOGRAPHIC PROJECTIONOne-Mile Three-Mile Five-Mile
Population 22,675 157,309 300,222
Average HH Income 86,760 65,806 70,164
Total Households 10,209 66,946 125,312
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