Country Creek Apartments - Commercial Realty Resources Jan2015.pdf · Country Creek Apartments ......

Providing professional apartment brokerage and marketing services for over 30 years

Mike Buhl

CRRC-OKC

405.360.5966 [email protected]

Darla Knight

CRRC-Tulsa

918.557.5966

[email protected]

Country Creek Apartments 1 0 3 0 0 S . We s t e r n

O k l a h o m a C i t y, O k l a h o m a 7 3 1 3 9

320-Units

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Arkansas Oklahoma Kansas

Priced well below replacement cost New Roofs in 2010 / 2011 New 2” Wood Blinds Throughout Potential to add Washer/Dryers Buyer can secure New Financing Near Schools, Shopping, Dining and Major

Employers Moore School District Excellent Location at the intersection of

Western and 104th Street

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Country Creek Apartments

Table of Contents

1. Property Highlights

Disclaimer Photographs Submarket Map Neighborhood Map Aerial Map Offering Description Property Highlights Unit Mix Floor Plans

2. Offering Terms

Purchase Price and Terms Existing Financing

3. Income/Expense Statement

Income & Expense Statement

4. Rent & Sale Comparables

Sale Comparables Rent Comparables

5. Oklahoma City Overview

Oklahoma City Overview

6. Oklahoma Broker Relationship Act

Oklahoma Broker Relationship Act

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Country Creek Apartments

Disclaimer

This package has been prepared to provide summary information to prospective buyers and to establish an initial and preliminary level of interest in the property described herein. It is not intended to present all material information regarding the subject property, and is not a substitute for a complete and thorough due diligence investigation. Commercial Realty Resources has not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to the actual number of appliances being conveyed or any potential environmental problems that may exist and makes no warranty or representation whatsoev-er concerning these issues. The information contained in this package has been obtained from sources we believe to be reliable; however, Commercial Realty Resources and Seller have not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any proformas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. Commercial Realty Resources and Seller recommend that prospective buyers conduct an in-depth investi-gation of the physical and financial aspects of the property to determine if the property meets their needs and expectations. We also recommend that prospective buyers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent con-sequences of ownership. Commercial Realty Resources and Seller recommend that prospective buyers consult with qualified pro-fessionals regarding the presence of any molds, funguses, or other organisms that may adversely affect the property and the health of individuals. The material contained in this document is not to be copied and/or used for any purpose or made availa-ble without the express written consent of Commercial Realty Resources.

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Country CreekCountry CreekCountry Creek 10300 S. Western Oklahoma City, OK

Submarket Map

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Neighborhood Map

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Aerial Photo Boundary


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Aerial Photo


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Offering Description

Country Creek is a 320-unit two-story garden style apartment community located in prestigious southwest Oklahoma City near upscale residential neighborhoods and in the highly acclaimed Moore school district. The property is convenient to Will Rogers Airport, fine dining and shopping, I-240, I-35 and I-44. The Country Creek location has easy access to Downtown and Bricktown, Tinker AFB, Will Rogers World Airport and the nearby Oklahoma City Community College.

Offering Highlights: Priced well below replacement cost Complete New Roofs in 2010 / 2011 New 2” Wood Blinds Throughout Potential to add Washer/Dryers Buyer can secure New Financing (see Term Sheet included) One of the strongest rental markets in Oklahoma City Near Schools, Shopping, Dining and Major Employers Moore School District Excellent Location at the intersection of Western and 104th Street


Property Description: Country Creek is a two-story garden style apartment commu-nity located in south Oklahoma City. Country Creek has an excellent location on 104th and South Western The property is located in the highly acclaimed Moore School District and has convenient access to Interstate 35 and 240. This is a very popular area of south Oklahoma City and within minutes of major employers, shopping, dining and entertainment.

Number of Units: 320

Number of Buildings: 21 two-story apartment buildings and 1 single-story office/laundry building.

Year Built: 1985 (according to courthouse records)

Apartment Features: Fully equipped kitchens l Breakfast bars l Accent lighting l

Generous closets l Ceiling fans l Private exterior storage l Some

Microwave ovens l New 2” wood blinds

Property Amenities: Swimming Pool Moore School District Laundry Facility

Construction:

Style: Two-Story Garden Style

Exterior: Brick Veneer with wood trim and composite siding

Roof: Gable Roofs with Composition Shingles (New in 2010)

Mechanical System:

Electrical Metering: Individually Metered

HVAC: Individual HVAC

Hot Water: Individual Hot Water Heaters

Water: Provided by Property

Site/Land Area: 12.41 acres (according to courthouse records)

Density: 25.78 units per acre

Current Occupancy: 96%

Real Estate Taxes: R0053923 Assessed Value (2014): 1,136,927 Tax Rate: 120.61 Tax Amount: $137,125

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UNIT MIX

DISTRIBUTION RATIO

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1 Bed/1 Bath50%

2 Bed/2 Bath25%

1 Bed/1 Bath Jr25%


No. Bdrm/Bth Sq.Ft. Total Sq.Ft. Rent Roll Rent/Sq.Ft. Gross/Mo. Gross/Yr.

80 1 Bed/1 Bath Jr 500 40,000 499.00 1.00 39,920 479,040

160 1 Bed/1 Bath 600 96,000 560.00 0.93 89,600 1,075,200

80 2 Bed/2 Bath 800 64,000 699.00 0.87 55,920 671,040

- -

320 625 200,000 579.50 0.93 185,440 2,225,280

FLOOR PLANS

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Value-add potential to add washers and dryers. The floor plans offer two closets in the bedroom that back up to the water heater closet for a cost effective installation.

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PURCHASE PRICE & TERMS Purchase Price:

$17,000,000

Terms of Sale:

Cash Buyer to Obtain New Financing

Price Per Apartment Unit:

$53,125

Price Per Net Rentable Sq. Ft.

$85.00

Cap Rate: (Based on Proforma)

6.15%

Cash-On-Cash: (Based on Proforma)

8.24% 15.34% with Interest only payments


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EXISTING FINANCING

Original Amount/Date:

NA

Current Balance/Date:

Interest Rate:

Interest Only Period:

Payment:

Amortization:

Maturity Date:


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Proforma Income is based on 2014 with a 2% increase over the annualized July through December 2014 actual income. We used a 6% economic loss to es-tablish Effective Rental Income of $2,091,738. Other Income is based on 2014 actual.

Expenses are calculated at 3,749 per unit per year. Replacement Reserves have been included at $250/unit/year Real Estate taxes have been increased to the Offering Price Buyer to obtain new financing (see term sheet included)

Operating Data Highlights Income

Expenses

Mortgage and Debt Service

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Annual Property Operating Data

Project: Country Creek Apartments Price: 17,000,000$ Run Date: 22-Jan-15Location: 10300 S. Western - OKC Per Unit: 53,125$ Cap Rate On Proforma: 6.15%

Number of Units: 320 Per Foot: 85.00$ Cash-On-Cash at P&I: 8.24%

Net Rentable S.F. 200,000 Mortgage Balances: 13,600,000$ Cash-On-Cash at Interest Only: 15.34%Avg. Unit Size: 625 Equity Requirement: 3,400,000$ 20%

No. Bdrm/Bth Sq.Ft. Total Sq.Ft. Rent Roll Rent/Sq.Ft. Gross/Mo. Gross/Yr.

80 1 Bed/1 Bath Jr 500 40,000 499.00 1.00 39,920 479,040

160 1 Bed/1 Bath 600 96,000 560.00 0.93 89,600 1,075,200

80 2 Bed/2 Bath 800 64,000 699.00 0.87 55,920 671,040

- -

320 625 200,000 579.50 0.93 185,440 2,225,280

2012 2013 2014 Proforma Proposed New Loan

INCOME Per UnitGross Potential 2,225,280 6,954 Current Bal. Jan-15 13,600,000$ Loss-to-Lease - - Original Bal. Jan-15 13,600,000$

Vacancy and Credit Loss 6% 133,517 417 Maturity 10

Effective Rental Income 1,849,494 1,962,419 2,033,353 2,091,763 6,537 Amortization 30Laundry & Other Income 102,382 103,844 92,737 92,737 290 Interest Rate 3.850%RUBS Income 39,180 45,833 60,332 60,332 Constant 5.626%Gross Operating Income 1,991,056 2,112,096 2,186,422 2,244,832 7,015 Debt Service at P&I 765,095$

EXPENSES Debt Coverage Ratio 1.37 R E Taxes 98,595 103,867 137,124 245,000 766 Debt Service at I.O. 523,600$ Insurance 136,910 142,109 83,164 83,164 260 Gas - - 5,276 5,276 16 Electricity - - 44,257 44,257 138 Water / Sewer - - 89,442 89,442 280 Trash - - 21,065 21,065 66 Total Utilities 150,795 145,850 - - - Maintenance / Repairs 196,152 205,945 157,168 160,000 500 Landscaping - - - - - Wages & Payrol Taxes 239,557 268,354 315,671 304,000 950 Management Fee 79,358 83,552 87,256 3.0% 67,345 210 Advertising 10,125 22,554 45,675 25,000 78 Administration 92,615 85,272 88,200 75,000 234 Replacement Reserves - - - 80,000 250 Total Operating Expenses 1,004,107 1,057,503 1,074,298 1,199,549

Per Unit 3,138 3,305 3,357 3,749 Per Sq Ft 5.02 5.29 5.37 6.00

Net Operating Income 986,949 1,054,593 1,112,124 1,045,283 3,267

Debt Service - - - 765,095 2,391 Cash Flow 986,949 1,054,593 1,112,124 280,188 876

Real Estate Tax Information: 2014 Assessed Value: 1,136,927 Rate/$1000: 120.61 Value:Tax Amount: 137,125$ Tax Dist: 0 Per Unit: 29,607.47$

Jul through Dec 2014 Total Income annualized is $2,199,170Adjusted to actual

9,474,391.67$ Account: R0053923

Jason Rice Senior Vice President

8333 Douglas Avenue, Suite 1100 Dallas, Texas 75225 Phone: 214-360-3811

Email: [email protected]

January 21, 2015 Mike Buhl Commercial Realty Resources Co. 611 24th Avenue S.W Norman, OK 73069

RE: Country Creek Apartments – Oklahoma City, OK

Dear Mr. Buhl:

We have completed our initial review of the Country Creek Apartments, located in Norman, OK. We would like to provide you with our permanent loan quote through either our Berkadia Fannie Mae DUS or Freddie Mac CME loan programs. This quote is solely based on the information that has been provided to us. The loan amount, rates and fees are subject to change due to the property’s performance.

Loan Amount: Up to 80% of Purchase Price

LTV: 80% LTV

Term: 7, 10 or 12 Years

Interest Rate: 7-year term – 3.45% - 3.60% 10-year term – 3.60% - 3.80% 12-year term – 3.85% - 4.05% Amortization: 30 years

Interest Only: 2 – 5 years available, depending on loan term

Recourse: None. Except for normal carve-outs

Assumability: Yes – with a 1% fee at assumption.

Replacement Reserves: $275/Unit

Expense Deposit: $24,500 (applied to appraisal, engineering and environmental reports as well as due diligence costs and lender legal fees).

Origination Fee: 1% of the loan amount

Please let me know if you have any questions regarding this quote. I look forward to working with you on this transaction and an application can be provided upon your request. Respectfully submitted,

Jason Rice

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Sold Comparison

Property Address: 2301 NW 122nd Street, Oklahoma City Size and Age: 458-units, Built in 1984 Price: $24,274,000 Price Per Unit: $53,000 Closing Date: 12 / 2014 Total Square Footage: 358,446 Lincoln Green

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Property Address: 6801 NW 122nd Street, Oklahoma City Size and Age: 104-units, Built in 1986 Price: $5,506,000 Price Per Unit: $52,942 Closing Date: 12 / 2014 Total Square Footage: 78,399 Deer Creek

Property Address: 1301 W. Hefner Rd, Oklahoma City, OK Size and Age: 152-units, Built in 1985 Price: $8,720,000 Price Per Unit: $57,368 Closing Date: 12 / 2014 Total Square Footage: 129,742 Arbor Lake

Property Address: 3101 NW 150th Street, Oklahoma City, OK Size and Age: 176-units, Built in 1984 Price: $10,000,000 Price Per Unit: $56,818 Closing Date: 12 / 2014 Total Square Footage: 129,742 Country Oaks

Sold Comparison

Property Address: 1836 W. Robinson, Norman Size and Age: 257-units, Built in 1971 Price: $16,050,000 Price Per Unit: $62,451 Closing Date: 08 / 2014 Total Square Footage: 232,037 Westwood Park

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Property Address: 5757 W. Hefner Rd, Oklahoma City Size and Age: 316-units, Built in 1985 Price: $16,050,000 Price Per Unit: $50,791 Closing Date: 07 / 2014 Total Square Footage: 231,768 Bluff Creek

Property Address: 2681 Jefferson, Norman, OK Size and Age: 126-units, Built in 1983 Price: $6,600,000 Price Per Unit: $52,381 Closing Date: 03 / 2013 Total Square Footage: 74,983 Stoneridge

Sold Comparison Summary

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Property

Price/Unit

Overall Price

No. Unit

Year Built

Lincoln Green $53,000 $24,274,000 458 1984

Deer Creek $52,942 $5,506,000 104 1986

Westwood Park $62,451 $16,050,000 257 1971

Bluff Creek $50,791 $16,050,000 316 1985

Stoneridge $52,381 $6,600,000 126 1983

Average $54,877 $87,200,000 1,589

Country Creek $53,125 $17,000,000 320 1985

Country Oaks $56,818 $10,000,000 176 1984

Arbor Lake $57,368 $8,720,000 152 1985

$53,000

$52,942

$57,368

$56,818

$62,451

$50,791

$52,381

$53,125

$‐

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

LincolnGreen

Deer Creek Arbor Lake CountryOaks

WestwoodPark

Bluff Creek Stoneridge CountryCreek

Price per Unit Average

Sold Comparison Map

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RENT COMPS In order to estimate market rents for Country Creek, five apartment communities were selected as most competitive. Each property has been chosen due to its similarity with regard to quality, location, age, or amenities. While each property may not be directly comparable in all aspects, collectively they represent the rental market for Country Creek.


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Surrounding Apartments

Countryside Village Apartments 9516 S. Shields Blvd, Moore, OK 73160

Floor Plans & Pricing

Beds Bath Sq. Ft. Rent Rent Per Sq. Ft.

1 1 708 $608 to $930 $0.86 to $1.31

2 1 875 $687 to $1,157 $0.79 to $1.32

2 2 986 $746 to $1,204 $0.76 to $1.22

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The Hunt Apartments 3016 SW 89th, Oklahoma City, OK 73159



1 1 500 $555 to $635 $1.11 to $1.27

1 1 700 $670 to $725 $0.96 to $1.04

2 2 900 $825 to $865 $0.92 to $0.96

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Oak Place Apartments 12500 S. Western, Oklahoma City, OK 73170



1 1 600 From $625 $1.04

1 1 750 From $690 $0.92

2 2 900 From $780 $0.87

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Eastlake Village Apartments 12901 S. Western, Oklahoma City, OK 73170



1 1 600 $574 to $649 $0.96 to $1.08

2 1 710 $659 to $734 $0.93 to $1.03

2 2 750 $709 to $784 $0.95 to $1.05

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Winchester Run Apartments 201 SE 89th, Oklahoma City, OK 73139



1 1 500 $465 $0.93

1 1 600 $515 $0.86

2 2 800 $669 $0.84

1 1 500 with W/D $520 $1.04

1 1 600 with W/D $575 $0.96

2 2 800 with W/D $734 $0.92

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Rent Comp Map

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http://www.greateroklahomacity.com/

Oklahoma City at a Glance


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Mike Buhl CRRC Oklahoma City 611 24th Avenue SW, Suite 100 Norman, OK 73069 405-360-5966 [email protected]

Darla Knight CRRC Tulsa 4137 S. Harvard, Suite E Tulsa, OK 74135 918-557-5966 [email protected]


OKLAHOMA REAL ESTATE COMMISSION

What You Need to Know About Broker Services

A real estate broker may work with one or both parties to a real estate transaction. The Oklahoma BrokerRelationships Law (Title 59, Oklahoma Statutes, §858-351 – 858-363) allows a real estate firm to provide brokerageservices to both parties to the transaction. This could occur when a firm has contracted with a seller to sell their propertyand a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer onthe property, the firm must now provide a written notice to both the buyer and seller that the firm is now providingbrokerage services to both parties to the transaction.

Oklahoma real estate brokers have mandatory duties and responsibilities to all parties in a real estatetransaction. These duties and responsibilities shall be described and disclosed in writing prior to signing a contract tosell, purchase, lease, option or exchange real estate. These duties and responsibilities are to:

Treat all parties with honesty and exercise reasonable skill and care.

Receive all written offers and counteroffers, reduce offers or counteroffers to a written form upon request ofany party to a transaction and present timely all written offers and counteroffers (unless specifically waived inwriting by a party).

Timely account for all money and property received by the broker.

Disclose information pertaining to the property as required by the Residential Property Condition DisclosureAct.

Comply with all requirements of The Oklahoma Real Estate License Code and all applicable statutes andrules.

Keep confidential information received from a party or prospective party confidential unless written consent isgranted by the party, the disclosure is required by law, or the information is public or becomes public as theresults of actions from a source other than the broker. Confidential information includes:

o That a party is willing to pay more or accept less than what is being offeredo That a party or prospective party is willing to agree to financing terms different from those offeredo The motivating factors of the party or prospective party purchasing, selling, leasing, optioning or

exchanging the propertyo Any information specifically designated as confidential by the party unless such information is public.

A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerageservices. These duties and responsibilities shall also be described and disclosed in writing prior to signing a contract tosell, purchase, lease, option and exchange real estate. These duties are to:

Inform the party in writing when an offers is made that the party will be expected to pay certain costs,brokerage services costs and approximate amount of the costs.

Keep the party informed regarding the transaction.

If a broker intends to provide fewer brokerage services than those required to complete a transaction, the brokershall provide written disclosure to the party for whom the broker is providing services. The disclosure shall includea description of those steps in the transaction that the broker will not provide and state that the broker assisting the otherparty in the transaction is not required to provide assistance with these steps in any manner.

Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by thebroker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract topurchase, option or exchange real estate.

Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerageservices to a landlord under a property management agreement, the services provided to the tenant by the broker shallnot be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to inwriting; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care.

This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission.

OREC BROKER SERVICES INFORMATION (11-2013)

For more information, visit www.orec.ok.gov

Country Creek Apartments - Commercial Realty Resources Jan2015.pdf · Country Creek Apartments ......

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