New Sale Offering Memorandum (L) - LoopNet...Tulsa • Current in place rents $70 dollars below...
Transcript of New Sale Offering Memorandum (L) - LoopNet...Tulsa • Current in place rents $70 dollars below...
SVN | OAK REALTY ADVISORS | 4812 E 81ST ST, STE 301, TULSA, OK 74137 OFFERING MEMORANDUM
MADISON PARK9743 EAST 12TH STREET
TULSA, OK 74128
Benjamin Davis
Managing Director 918.201.2005
Raymond Lord
Managing Director 918.201.2005
1 PROPERTY
INFORMATION9743 East 12th Street
Tulsa, OK 74128
SVN | OAK Realty Advisors | Page 2MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
NOI: $410,700
Lot Size: 5.78 Acres
Year Built: 1973
Building Size: 108,800 SF
Renovated: 2014
buyer to come in with strong management and increase current in place rents. The average occupancy in the area is
above 94% and the majority of the employers in a 5 mile radius comes from the manufacturing and distribution sector
which is one of the sectors the city of Tulsa has been targeting increasing specifically in aerospace.
Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the tenant profile in the
area as well as strong rental criteria to attract qualified tenants. The community has a number of different amenities
including a swimming pool with large sundeck, onsite laundry facility, and spacious club house and leasing office.
OFFERING SUMMARY PROPERTY OVERVIEW
Sale Price: $5,300,000 SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment community
represents a terrific opportunity to acquire a stable property with value add components. Current in place rents are $70
Number Of Units: 128 dollars below average according to a recent market study of comparable properties inside a 2 mile radius.
Cap Rate: 7.75% In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good position for a new
PROPERTY HIGHLIGHTS
Zoning:
Market:
RS-2
Tulsa
• Current in place rents $70 dollars below market according to rent Yardi Matrix survey
• The immediate area boasts a number of local and national employers specifically in the manufacturing & distribution
area which Tulsa has indicated being two sectors which they plan on targeting new companiesPrice / SF: $48.71
• Average area apartment occupancy of 94% within a 2 mile radius
Property Summary
SVN | OAK Realty Advisors | Page 3MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF
1 Bed 1Bath 40 31.3 700 $437 $0.63 $500 $0.71
1 Bed 1Bath 16 12.5 800 $469 $0.59 $525 $0.66
2 Bed 1Bath 32 25.0 900 $550 $0.61 $595 $0.66
2 Bed 1.5Bath 16 12.5 950 $557 $0.59 $665 $0.70
2 Bed 2 Bath TH 24 18.8 1,000 $600 $0.60 $700 $0.70
Totals/Averages 128 100% 108,800 $65,966 $0.61 $74,880 $0.69
Unit Mix Summary
SVN | OAK Realty Advisors | Page 4MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
PROPERTY OVERVIEW
SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment
community represents a terrific opportunity to acquire a stable property with value add components.
Current in place rents are $70 dollars below average according to a recent market study of comparable
properties inside a 2 mile radius.
In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good
position for a new buyer to come in with strong management and increase current in place rents. The
average occupancy in the area is above 94% and the majority of the employers in a 5 mile radius comes
from the manufacturing and distribution sector which is one of the sectors the city of Tulsa has been
targeting increasing specifically in aerospace.
Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the
tenant profile in the area as well as strong rental criteria to attract qualified tenants. The community has a
number of different amenities including a swimming pool with large sundeck, onsite laundry facility, and
spacious club house and leasing office.
LOCATION OVERVIEW
Madison Park is exceptionally well located just west of 169 on E 11th street. The property has a terrific unit
mix to take advantage of the large number of manufacturing and distribution companies within a 5 mile
radius such as American Airlines, Hilti, Spirit Aerosystems, Melton Truck Lines, and West Corp. Additionally,
the area boasts a several large technical colleges, Tulsa Tech and Tulsa Welding School, as well as a
number of national and regional headquarters such as State Farm Regional HQ and Quicktrip Corporate
HQ.
Residents have easy access to a number of local grocery stores, shopping centers, as well as freeways
with direct access to the Tulsa Central Business District.
Average apartment occupancies within a 2 mile radius is 94.2% according to a recent Yardi Matrix report
with average rents at $585 which equates to approx 0.69 cents per square foot. Madison Park's current
average in place rent at $515 which is $70 dollars below average market.
Property Description
SVN | OAK Realty Advisors | Page 5MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
SALE HIGHLIGHTS
• Current in place rents $70 dollars below market according to rent Yardi Matrix
survey
• The immediate area boasts a number of local and national employers
specifically in the manufacturing & distribution area which Tulsa has indicated
being two sectors which they plan on targeting new companies
• Average area apartment occupancy of 94% within a 2 mile radius
• Existing non-recourse financing through FNMA
• Excellent unit mix of 1, 2, and 2 bed TH's which is conducive to the tenant profile
and jobs in the area
• All new 60 mil T.P.O. roofs (2014)
• All new double pane vinyl windows throughout (2014)
• Parking lotpatch, seal coat, re-stripe, and partial overlay (2014)
• All new down spouts anddrainage pads (2014)
• Updated Leasing office (2014)
Complete Highlights
SVN | OAK Realty Advisors | Page 6MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
2 FINANCIAL
ANALYSIS9743 East 12th Street
Tulsa, OK 74128
SVN | OAK Realty Advisors | Page 7MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
INVESTMENT OVERVIEW
Price $5,300,000
Price per Unit $41,406
GRM 6.6
CAP Rate 7.8%
Cash-on-Cash Return (yr 1) 11.44%
Total Return (yr 1) $240,549
Debt Coverage Ratio 1.8
OPERATING DATA
Gross Scheduled Income $800,000
Other Income $102,700
Total Scheduled Income $902,700
Vacancy Cost $0
Gross Income $902,700
Operating Expenses $492,000
Net Operating Income $410,700
Pre-Tax Cash Flow $181,951
FINANCING DATA
Down Payment $1,590,000
Loan Amount $3,710,000
Debt Service $228,749
Debt Service Monthly $19,062
Principal Reduction (yr 1) $58,598
Financial Summary
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Income & Expenses
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3 LOCATION
INFORMATION9743 East 12th Street
Tulsa, OK 74128
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Area Map
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Aerial Map
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Additional Photos
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Additional Photos
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Additional Photos
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Additional Photos
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Additional Photos
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Additional Photos
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4 SALE
COMPARABLES9743 East 12th Street
Tulsa, OK 74128
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Sale Comps
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5 RENT
COMPARABLES9743 East 12th Street
Tulsa, OK 74128
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Rent Comparable Summary
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Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 40.63% 52 754 39,200 $433 $0.57
Two Bedroom/One Bath 18.75% 24 900 21,600 $480 $0.53
Two Bedroom/One and One Half Bath 29.69% 38 950 36,100 $493 $0.52
Two Bedroom/Townhouse/Two Bath 10.94% 14 1,000 14,000 $655 $0.66
Total/Average 100% 128 866 110,900 $483 $0.56
Completed Date
Improvements Rating
Location Rating
January, 1973
C
C+
128 Units
9743 East 12th Street
Tulsa, OK 74128
(918) 836-1707
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
Two Bedroom/Townhouse/One and One Half Bath
100.00% 54 1,083 58,482 $746 $0.69
Total/Average 100% 54 1,083 58,482 $746 $0.69
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1983
B-
C+
98.1%
54 Units
11308 East 23rd Street
Tulsa, OK 74129
(918) 622-8800
Madison Park Apartments
Belmont Park Townhomes
Rent Comparable Summary
SVN | OAK Realty Advisors | Page 23MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 23.08% 48 600 28,800 $600 $1.00
Two Bedroom/One Bath 65.38% 136 725 98,600 $650 $0.90
Three Bedroom/One and One Half Bath 11.54% 24 825 19,800 $750 $0.91
Total/Average 100% 208 708 147,200 $650 $0.92
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1968
C-
C+
93.3%
208 Units
7625 East 21st Street
Tulsa, OK 74129
(918) 619-9038
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 70.36% 178 649 115,450 $540 $0.83
Two Bedroom/Two Bath 13.44% 34 1,010 34,340 $715 $0.71
Two Bedroom/Townhouse/One and One Half Bath
14.62% 37 963 35,649 $681 $0.71
Three Bedroom/Townhouse/One and One Half Bath
1.58% 4 1,222 4,888 $840 $0.69
Total/Average 100% 253 752 190,327 $588 $0.78
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1970
C+
C
93.8%
253 Units
8314 East 25th Place
Tulsa, OK 74129
(918) 270-2751
Colonial Park Apartments
Evergreen Apartments
Rent Comparable Summary
SVN | OAK Realty Advisors | Page 24MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 77.22% 200 700 140,096 $480 $0.69
Two Bedroom/Two Bath 19.31% 50 912 45,584 $629 $0.69
Three Bedroom/Townhouse/Two Bath 3.47% 9 1,368 12,312 $795 $0.58
Total/Average 100% 259 764 197,992 $519 $0.68
Completed Date
Improvements Rating
Location Rating
January, 1969
C+
C
259 Units
139 North Garnett Road
Tulsa, OK 74116
(918) 437-7017
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 46.15% 96 599 57,500 $468 $0.78
One Bedroom/Townhouse/One Bath 30.77% 64 800 51,200 $547 $0.68
Two Bedroom/One and One Half Bath 23.08% 48 933 44,800 $685 $0.73
Total/Average 100% 208 738 153,500 $542 $0.74
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1975
C+
B-
91.8%
208 Units
2186 South 99th East Avenue
Tulsa, OK 74129
(918) 664-7513
Ivy Place Apartments
Lakeside Place Apartments
Rent Comparable Summary
SVN | OAK Realty Advisors | Page 25MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
Studio 2.56% 3 435 1,305 $387 $0.89
One Bedroom 35.04% 41 550 22,550 $481 $0.87
Two Bedroom/One Bath 62.39% 73 871 63,600 $578 $0.66
Total/Average 100% 117 747 87,455 $538 $0.72
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1968
C
C+
95.7%
117 Units
444 South Mingo Road
Tulsa, OK 74128
(918) 835-1569
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
Studio 23.81% 20 500 10,000 $463 $0.93
One Bedroom 57.14% 48 700 33,600 $546 $0.78
Two Bedroom/One Bath 19.05% 16 800 12,800 $630 $0.79
Total/Average 100% 84 671 56,400 $542 $0.81
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1973
C+
C+
100%
84 Units
8120 East 16th Street South
Tulsa, OK 74112
(918) 663-6030
Meadowbrook Apartments
Red Fox Apartments
Rent Comparable Summary
SVN | OAK Realty Advisors | Page 26MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 38.71% 60 685 41,076 $528 $0.77
Two Bedroom/One Bath 61.29% 95 996 94,600 $657 $0.66
Total/Average 100% 155 875 135,676 $607 $0.69
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1976
C+
C+
91.6%
155 Units
717 South 101st East Avenue
Tulsa, OK 74128
(918) 835-8571
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 22.99% 80 640 51,200 $555 $0.87
Two Bedroom/One Bath 43.68% 152 825 125,400 $685 $0.83
Two Bedroom/Townhouse/One and One Half Bath
13.79% 48 900 43,200 $801 $0.89
Three Bedroom/One and One Half Bath 13.79% 48 1,000 48,000 $907 $0.91
Three Bedroom/Townhouse/One and One Half Bath
5.75% 20 1,000 20,000 $969 $0.97
Total/Average 100% 348 827 287,800 $718 $0.87
Completed Date
Improvements Rating
Location Rating
January, 1968
C+
C
348 Units
1433 South 107th East Avenue
Tulsa, OK 74128
(918) 895-5980
Ridgeview Apartments
Sierra Pointe Apartments
Rent Comparable Summary
SVN | OAK Realty Advisors | Page 27MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
Studio 15.32% 36 500 18,000 $424 $0.85
One Bedroom 25.53% 60 689 41,360 $487 $0.71
Two Bedroom/One Bath 40.43% 95 900 85,500 $585 $0.65
Two Bedroom/Townhouse/One and One Half Bath
16.17% 38 1,032 39,200 $652 $0.63
Three Bedroom/Two Bath 0.85% 2 1,125 2,250 $781 $0.69
Three Bedroom/Townhouse/Two Bath 1.70% 4 1,300 5,200 $780 $0.60
Total/Average 100% 235 815 191,510 $550 $0.68
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1971
C+
C+
90.6%
235 Units
11327 East 23rd Street
Tulsa, OK 74129
(918) 437-3737
Unit Type
Unit Description
% of
Total
Unit
Count
Size (SqFt) Market Rent
Unit Total Total SqFt
One Bedroom 75.38% 49 609 29,841 $573 $0.94
Two Bedroom/One Bath 24.62% 16 775 12,400 $657 $0.85
Total/Average 100% 65 650 42,241 $593 $0.91
Completed Date
Improvements Rating
Location Rating
Occupancy
January, 1960
C
C+
92.3%
65 Units
1140 South 101st East Avenue
Tulsa, OK 74128
(918) 323-4511
Village East Apartments
Whispering Oaks Apartments
Rent Comparable By Rank
SVN | OAK Realty Advisors | Page 28MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
Rent Comparable By Rank
SVN | OAK Realty Advisors | Page 29MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
6
DEMOGRAPHICS9743 East 12th Street
Tulsa, OK 74128
SVN | OAK Realty Advisors | Page 30MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
1MILE 3 MILES 5 MILES
Total population 10,188 78,478 162,671
Median age 34.8 33.8 33.9
Median age (male) 31.8 31.6 32.1
Median age (female) 37.7 35.6 35.5
Total households 3,965 30,462 66,442
Total persons per HH 2.6 2.6 2.4
Average HH income $43,320 $44,911 $46,671
Average house value $104,908 $96,513 $94,812
* Demographic data derived from 2010US Census
Demographics Report
SVN | OAK Realty Advisors | Page 31MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
POPULATION 1MILE 3 MILES 5 MILES
Total population 10,188 78,478 162,671
Median age 34.8 33.8 33.9
Median age (male) 31.8 31.6 32.1
Median age (Female) 37.7 35.6 35.5
HOUSEHOLDS & INCOME 1MILE 3 MILES 5 MILES
Total households 3,965 30,462 66,442
# of persons per HH 2.6 2.6 2.4
Average HH income $43,320 $44,911 $46,671
Average house value $104,908 $96,513 $94,812
* Demographic data derived from 2010 US Census
Demographics Map
SVN | OAK Realty Advisors | Page 32MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
7 ADVISOR BIOS9743 East 12th Street
Tulsa, OK 74128
SVN | OAK Realty Advisors | Page 33MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
4812 E 81st ST
STE 301
Tulsa, OK 74137
T918.201.2005
C 918.850.1779
PROFESSIONAL BACKGROUND
As an apartment specialist with SVN OAK Realty Advisors, in Oklahoma, Kansas and Arkansas, Raymond’s primarily focus on multi-family properties since 1987 and their dispositions
for banks, private clients as well as Institutional Investors. In addition he has an extensive background in the disposition of assets for FNMA, FDIC and in the past the RTC and various
institutional investors, and banking assignments throughout the Midwest and Southwest region of the U.S. His forte is financial analysis of investments and effective marketing of
assets both regionally and nationally. Raymond has transacted over $2.5 billion of transactions, including investment sales, joint ventures, redevelopment and recapitalization
advisory assignments.
SVN OAK Realty Advisors Tulsa OK Managing Director 2016
NAI Commercial Properties Tulsa OK Principal 2000 to 2016 Commercial Real Estate Tulsa OK Investment 1997 to 2000
The Lyon Group Management CA President 1987-1997
American Village on the Lake 464 Units Tulsa OK Redfern Portfolio 1,465 Units Tulsa OK Woodlake Apartments 799 Units OKC OK One Western & Quail Ridge 150,000 SF Office OKC
Brookline Office Complex 74,000 SF OKC
Modern Bindery Industrial 100,000 SF Tulsa OK
Macco Properties 1,541 units OKC OK
Cobblestone 482 Units Tulsa OK
Case & Associates 585 Units Phoenix
American Residential 324 Units Tulsa OK
Real Source 284 & 544 Tulsa / OKC
Sterling American 682 Unit Tulsa OK
EDUCATION
Northrop School of Law, Los Angeles, CA, Juris Doctorate University of Florida, Gainesville, FL, BA Finance
MEMBERSHIPS & AFFILIATIONS
Multifamily Dispositions/Acquisitions ; Property Repositioning ;
Court Appointed Approved Receiver
Licensed Real Estate Broker, Oklahoma
SVN OAK Realty Advisor's
National Association of Realtors
RAYMOND LORD
Managing Director
Advisor Bio
SVN | OAK Realty Advisors | Page 34MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
4812 E 81st ST
STE 301
Tulsa, OK 74137
T918.201.2005
C918.740.6288
PROFESSIONAL BACKGROUND
Ben is a Principal and Managing Director at SVN OAK Realty Advisors and has over 10 years of experience specializing in
the marketing and sale of multifamily properties in the region.
Since he began his career in 2006, he has been involved in the sale of over $400 million commercial real estate
transactions and has proven himself to consistently be one of the top multifamily brokers in the region.
EDUCATION
Ben is a graduate of the University of Oklahoma with a Bachelors of Arts and Science.
BENJAMIN DAVIS
Managing Director
Advisor Bio
SVN | OAK Realty Advisors | Page 35MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128
4812 E 81st ST, STE301
Tulsa, OK 74137
918.201.2005
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