SUNRISE PORTFOLIO - LoopNet
Transcript of SUNRISE PORTFOLIO - LoopNet
SUNRISE PORTFOLIO76 UNITS | 5941/5960/5971/5980/5990 NW 16TH PLACE, SUNRISE, FLORIDA 33313
Offering Memorandum
NON-ENDORSEMENT & DISCLAIMER NOTICECONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only
by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be
made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap 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 and improvements, the presence or absence of contaminating
substances, PCB’s or asbestos, the compliance with State and Federal regulations, 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has
not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package.
The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said
corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap,
and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILL ICHAP AGENT FOR MORE DETAILS.
SUNRISE PORTFOLIO7 6 U N I T S | S U N R I S E , F L O R I D A
FELIPE J. ECHARTEFirst Vice President Investments
Tel: (954) [email protected]
License: FL SL696115
BRANDON J. REX First Vice President Investments
Tel: (954) [email protected]
License: FL SL672545
EXCLUSIVELY L ISTED BY
O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A
WWW.MARCUSMILLICHAP.COM
EVAN P. KRISTOL Executive Managing Director Investments
Tel: (954) [email protected]
License: FL SL640466
PORTFOLIO OF 76 UNITS IN
FIVE BUILDINGS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0240286
$9,600,000LIST PRICE
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EXECUTIVESUMMARY
SUNRISE PORTFOLIO
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OFFERING HIGHLIGHTS
5941/5960/5971/5980/5990 NW 16th Place, Sunrise, FL 33313
OFFERING PRICE
$9,600,000CURRENT CAP RATE
5.64%
VITAL DATA
Price $9,600,000
Current Cap Price 5.64%
Pro Forma Cap Price 6.36%
Price/SF $158.55
Gross Square Feet 60,549 SF
Year Built 1965-1973
SUNRISE PORTFOLIO7 6 U N I T S | B R O W A R D C O U N T Y
STRONG RENTAL MARKET WITH VERY
L ITTLE VACANCY
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INVESTMENT OVERVIEW
The Sunrise Portfolio is a 76-unit apartment portfolio comprised of five buildings located on Northwest 16th Place in the City of Sunrise, east of Sunset Strip. Most of the portfolio has been extensively renovated and is currently operating at an above market occupancy with additional upside in rental income. Three of the five buildings were condominium
buildings that were purchased by the current owners over the last several years. The current owners have renovated the apartments as they received title to the units. Four of the five buildings have hurricane impact windows and doors, including impact sliding glass doors. The fifth building has hurricane shutters.
The buildings were developed between 1963 and 1973. Water, sewer and trash removal are paid by the owner in four of the five buildings while the residents of 5990 NW 16th Place pay all utilities. The portfolio has an attractive unit mix of which 64 percent of the units are two-bedrooms. The portfolio has 27 one-bedroom and one-bathroom units, 16 of which have one and one-half bathrooms. There are also 49 two-bedroom units, 16 with one-bathroom, 22 with one and one-half bathrooms and 11 with two-bathrooms. The average unit size is 797 square feet. The exteriors of all the buildings have recently been painted, new railings installed, landscaping updated, and parking lots resurfaced, or seal coated and lined with new curbing and parking stoppers. There is also a new playground that was installed at the 5960 building.
An investor has the opportunity to acquire this mostly renovated portfolio of 76 units in a very strong rental market in Central Broward County with approximately 10-15 percent upside in rental income. There is very favorable financing available which will result in a positive cash on cash return.
60th AVENUE
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INVESTMENT HIGHLIGHTS
► 18 Units : 2 - 1 Bdr 1Bath
8 - 1 Bdr 1.5 Bath
3 - 2 Bdr 1 Bath
5 - 2 Bdr 2 Bath
► Impact resistent windows
► Most units have renovated kitchens and bathrooms
► All units have washer/dryer hook-ups
► Balconies and patios
5980 NW 16th Place
UpdatedAppliances
Close to Retail
► 24 Units : 2 - 1 Bdr 1 Bath
22 - 2 Bdr 1.5 Bath
► Lakefront views
► Porches and patios in select units
► All units have renovated kitchens and bathrooms
► Impact resistent windows and sliding glass doors
5941 NW 16th Place
► 18 Units : 2 - 1 Bdr 1 Bath
7 - 1 Bdr 1.5 Bath
5 - 2 Bdr 1 Bath
4 - 2 Bdr 2 Bath
► Impact resistent windows
► Most units have renovated kitchens and bathrooms
► Select units have washer/dryer hook-ups
► Balconies and patios
5960 NW 16th Place
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► 8 Units : 1 - 1 Bdr 1 Bath
7 - 2 Bdr 1 Bath
► Impact resistent windows and doors
► Balconies and patios
► All units have been extensively renovated
► Lakefront views
5971 NW 16th Place
► 8 Units : 2 - 1 Bdr 1Bath
2 - 1 Bdr 1.5 Bath
2 - 2 Bdr 1 Bath
2 - 2 Bdr 2 Bath
► Windows have shutters
► Resident pays for water, sewer and trash removal
► Balconies and patios
► All units have washer/dryer hook-ups
5990 NW 16th Place
Balconies & Patios
Laundry Rooms
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SUMMARY OF TERMSINTEREST OFFEREDMarcus & Millichap has been selected to exclusively market for sale Sunrise Portfolio, Sunrise, Florida.
TERMS OF SALESunrise Portfolio is offered on an Open Bid basis free and clear of existing debt.
PROPERTY TOURSProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must
be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without
prior approval.property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site
management or staff be contacted without prior approval.
MOST OF THE UNITS HAVE
BEEN RENOVATED
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0240286
Sunrise is the 26th Largest of Florida’s 400+ Incorporated Municipalities, as Well as One of its Most Progressive
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PROPERTYDESCRIPTION
SUNRISE PORTFOLIO
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PROPERTY DETAILS
SUNRISE PORTFOLIO
Property Address 5941/5960/5971/5980/5990 NW 16th Place
City, State Zip Sunrise, FL 33313
Number of Units 76
Number of Buildings 6
Number of Stories 2
Year Built 1965-1973
Lot Size 2.56 Acres
Type of Ownership Fee Simple
Utilities: Water City of Sunrise - Paid by Owner
Utilities: Electric FPL - Paid by Resident
Assessor’s Parcel Number 494135-36-0010
494135-23-0020
494135-BH-0010 to 0080
494135-23-0010
Zoning RM-25
2017 Ad-Valorem Taxes $96,742.44
2017 Non-Ad Valorem Taxes $15,922
2017 Millage Rate 20.6707
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SUNRISE PORTFOLIO]
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SUNRISE PORTFOLIO
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CLOSE PROXIMITY TO MAJOR THOROUGHFARES
AND EXPRESSWAYS
60th A
VENUE
NW 5
8TH T
ERRACENW 16TH PLACE
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CLOSE PROXIMITY TO MAJOR THOROUGHFARES
AND EXPRESSWAYS
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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0240286
$1,083AVERAGE RENT
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate
Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0240286
5.64% 6.36%CAP RATE PRO FORMA CAP RATE
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FINANCIALANALYSIS
SUNRISE PORTFOLIO
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PRICING DETAILS
*Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.
PRICE $9,600,000
Down Payment 33% $3,168,000
Number of Units 76
Price Per Unit $126,316
Rentable SqFt 60,549
Price Per SqFt $158.55
Year Built 1965-1973
RETURNS
Cap Rate - Current 5.64%
Cap Rate - Pro Forma 6.36%
GRM Rate - Current 9.72
GRM Rate - Pro Forma 8.49
FINANCING
Loan Amount $6,432,000
Loan Type Proposed New
Interest Type 4.50%
Amortizaion 30 Years
Year Due 2028
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RENT ROLL SUMMARYSCHEDULED PRO FORMA
UNIT TYPE # OF UNITS
AVG SQFEET
SCHEDULED RENTAL RANGE
AVG RENT
MONTHLYINCOME
AVG RENT
MONTHLY INCOME
1 Bdr 1 Bath 10 696 $890 - $1,050 $956 $9,557 $1,050 $10,500
1 Bdr 1.5 Bath 16 705 $850 - $1,100 $993 $15,895 $1,100 $17,600
2 Bdr 1 Bath 17 827 $895 - $1,250 $1,111 $18,885 $1,300 $22,100
2 Bdr 1.5 Bath 22 845 $950 - $1,375 $1,129 $24,848 $1,325 $29,150
2 Bdr 2 Bath 11 878 $900 - $1,500 $1,190 $13,095 $1,350 $14,850
Totals/Weighted Averages 76 797 $1,083 $82,280 $1,239 $94,200
Scheduled rent is based on current in-place income, with vacant units at current asking rents.
Rent Roll Summary
$1.28 SF
$1.30 SF
$1.32 SF
$1.34 SF
$1.36 SF
$1.38 SF
$1.40 SF
$1.42 SF
0
200
400
600
800
1000
1200
1400
1 Bdr 1 Bath 1 Bdr 1.5 Bath 2 Bdr 1 Bath 2 Bdr 1.5 Bath 2 Bdr 2 Bath
Rent p
er SF/M
onthRen
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onth
Unit Type
Unit Rent
1 Bdr 1 Bath13%1 Bdr 1.5 Bath
21%
2 Bdr 1 Bath22%
2 Bdr 1.5 Bath29%
2 Bdr 2 Bath15%
Unit Distribution
NOTICE:This is a draft and not intended for client distribution.
Unit Distribution
Rent Roll Summary
$1.28 SF
$1.30 SF
$1.32 SF
$1.34 SF
$1.36 SF
$1.38 SF
$1.40 SF
$1.42 SF
0
200
400
600
800
1000
1200
1400
1 Bdr 1 Bath 1 Bdr 1.5 Bath 2 Bdr 1 Bath 2 Bdr 1.5 Bath 2 Bdr 2 Bath
Rent p
er SF/M
onthRen
t p
er M
onth
Unit Type
Unit Rent
1 Bdr 1 Bath13%1 Bdr 1.5 Bath
21%
2 Bdr 1 Bath22%
2 Bdr 1.5 Bath29%
2 Bdr 2 Bath15%
Unit Distribution
NOTICE:This is a draft and not intended for client distribution.
Unit Rent
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RENT ROLL SUMMARY
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OPERATING DATAINCOME CURRENT PRO FORMA NOTES
Gross Scheduled Rent $987,354 $1,130,400 [1]
Less: Vacancy/Deductions 5.00% $49,368 5.00% $56,520 [2]
Total Effective Rental Income $937,986 $1,073,880
Other Income $9,120 $9,120 [3]
Effective Gross Income $947,106 $1,083,000
Less: Expenses 42.86% $405,933 43.61% $472,256
Net Operating Income $541,173 $610,744
Cash Flow $541,173 $610,744
Debt Service $391,080 $391,080
Net Cash Flow After Debt Service 4.74% $150,093 6.93% $219,664
Principal Reduction $103,763 $108,530
Total Return 8.01% $253,856 10.36% $328,194
1. Gross Scheduled Rent – Based on current in-place rents with vacant units at current asking rents, annualized.
2. Less: Physical Vacancy – Based on the current market average occupancy.
3. Other Income – Based on assumption of $120 per unit per year.
NOTES
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OPERATING DATAEXPENSES CURRENT PER UNIT PRO FORMA PER UNIT NOTES
Real Estate Taxes $108,158 $1,423 $167,686 $2,206 [4]
Insurance $45,600 $600 $45,600 $600 [5]
Utilities - Electric $9,120 $120 $9,120 $120
Utilities - Water & Sewer $91,200 $1,200 $91,200 $1,200
Payroll $40,000 $526 $40,000 $526
Repairs & Maintenance $38,000 $500 $38,000 $500 [6]
Landscaping & Clean-Up $5,700 $75 $5,700 $75
Pest Control $1,800 $24 $1,800 $24
Operating Reserves $19,000 $250 $19,000 $250 [7]
Management Fee $47,355 $623 $54,150 $713
Total Expenses $405,933 $5,341 $472,256 $6,214
Expenses as % of EGI 43% 44%
Net Operating Income $541,173 $610,744
NOTES4. Real Estate Taxes – Real Estate Taxes are reassessed based on 80 percent of list price, times the 2017 millage rate (20.6707),
plus 2017 non-ad valorem taxes ($15,922), minus 4 percent for early tax payment. 2017 real estate taxes were $112,644.
5. Insurance – Based on assumption of $600 per unit per year.
6. Repairs & Maintenance – Based on assumption of $500 per unit per year.
7. Operating Reserves – Based on assumption of $250 per unit per year.
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E X C L U S I V E LY L I S T E D B Y
SUNRISE PORTFOLIO
EVAN P. KRISTOL Executive Managing Director Investments
Tel: (954) [email protected]
License: FL SL640466
FELIPE J. ECHARTEFirst Vice President Investments
Tel: (954) [email protected]
License: FL SL696115
BRANDON J. REX First Vice President Investments
Tel: (954) [email protected]
License: FL SL672545