Turning Point Townhomes - LoopNet

KW COMMERCIAL

10210 Quaker Avenue

Lubbock, TX 79424GREG BROWNDCCIM0: 806.777.4459C: [email protected] #596497

Turning Point Townhomes

OFFERING MEMORANDUM

PRESENTED BY:

LUBBOCK, TX

OFFERING MEMORANDUM

Each Office Independently Owned and Operated kwcommercial.com 2

KW COMMERCIAL

10210 Quaker Avenue

Lubbock, TX 79424

Confidentiality & Disclaimer

GREG BROWNDCCIM0: 806.777.4459C: [email protected] #596497

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sourcesare provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of theproperty for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, thatmay be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters ofsignificance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections andinvestigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by theparty including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercialmakes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercialdoes not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party withan attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by theparty with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmentalrequirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. Allproperties and services are marketed by Lubbock in compliance with all applicable fair housing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. Itis submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We includeprojections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisorsshould conduct your own investigation of the property and transaction.

OFFERING MEMORANDUM

PRESENTED BY:

LUBBOCK, TX

http://www.kwcommercial.com

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DETAILS

PROPERTY LOCATIONS

EXTERIOR PHOTOS

INTERIOR PHOTOS

1PROPERTY INFORMATIONTURNING POINT TOWNHOMES

OFFERING MEMORANDUM


OFFERING SUMMARY

SALE PRICE: $2,200,000

NUMBER OF UNITS: 22

LOT SIZE: 3.67 Acres

YEAR BUILT: 2003

BUILDING SIZE: 47,710 SF

MARKET: West Texas

SUBMARKET: Lubbock

PROPERTY OVERVIEWTurning Point Townhomes is a 11 property duplex package. Each of the 22 unitsare 3 bed, 3 bath, and have a 2 car garage which is ideal for student living orroommates who all want their own bathroom. They were built in 2003 and arepriced about 2/3 of what new construction duplexes in the area are currentlyselling for. This is an opportunity to own multiple, income producing, duplexes thatare in a convenient location, and priced well under replacement cost. Propertiesmay be bought as a package or as individual duplexes.

LOCATION OVERVIEWThese properties are located in Northwest Lubbock. This location provides easyaccess to Loop 289, Texas Tech University, and is close to numerous retail andentertainment options for the tenants. Lubbock's population is close to 260,000and has a diverse economy that's driven primarily by Texas Tech, healthcare, andagriculture.

PROPERTY HIGHLIGHTS• 11 Duplexes / 22 units

• Priced well below new construction and replacement cost

• Each unit is 3 Bed / 3 Bath / 2 car garage

• Easy access to Loop 289

• Located near retail and entertainment options

Executive Summary

TURNING POINT TOWNHOMES 1 | PROPERTY INFORMATION



SALE PRICE $2,400,000

LOCATION INFORMATION

Building Name Turning Point Townhomes

Street Address 15 Duplexes

City, State, Zip Lubbock, TX

County Lubbock

Market West Texas

Submarket Lubbock

BUILDING INFORMATION

Building Size 47,710 SF

Roof Pitched composition

PROPERTY DETAILS

Property Type Duplex

Property Subtype Low-Rise/Garden

Hot Water Heater Electric, individual

HVAC Electric, central HVAC in each unit

Utilities:

Electric Separately metered, paid by tenant

Water, Sewer, Trash Separately metered, paid by tenant

Property Details




Property Locations




Exterior Photos




Interior Photos



LOCATION INFORMATION

2 | LOCATION INFORMATION

LOCATION MAPS

RETAILER MAP

CITY INFORMATION-LUBBOCK

2LOCATION INFORMATIONTURNING POINT TOWNHOMES

OFFERING MEMORANDUM




Location Maps

TURNING POINT TOWNHOMES 2 | LOCATION INFORMATION



Retailer Map




TOP EMPLOYERS

Texas Tech University: 6,044

Covenant Health: 5,500

University Medical Center: 3,800

Lubbock ISD: 3,544

United Supermarkets: 2,700

CITY HIGHLIGHTS

• Lubbock ranks as one of the Top 25 Cities in the U.S. forpeople under 35 according to a 2017 Growella study.

• Lubbock ranks as one of WalletHub’s Top 15 Cities in Americato start a business in 2017.

• Lubbock is one of 17 places in America that are getting richeraccording to MSN.com.

• ALN Market occupancy October 2018: 90.3%

LUBBOCK, TX

Lubbock, TX is the "Hub City" of the South Plains region of Texas. It's diverse economy is driven by Texas Tech University,medical care, and agriculture. It's the birthplace of rock n roll legend Buddy Holly and has a vibrant music scene. The WestTexas region grows over 80% of the wine grapes in Texas. According to a CNBC survey in 2017, it's one of the top 15 cities inAmerica to start a small business.

City Information-Lubbock



FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

UNIT MIX SUMMARY

UNDERWRITING

5 YEAR CASH FLOW PROFORMA

PROPERTY DATA

3FINANCIAL ANALYSISTURNING POINT TOWNHOMES

OFFERING MEMORANDUM


UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF

3 / 3 / 2 24 100.0 1,255 $975 $0.78

Totals/Averages 24 100% 30,120 $23,400 $0.78

Unit Mix Summary

TURNING POINT TOWNHOMES 3 | FINANCIAL ANALYSIS


NotesINCOME Amount Per Unit % of GPR Amount Per Unit % of GPR Amount Per Unit % of GPR Amount Per Unit % of GPRGross Potential Rent 444,600$ 11,700$ 100.0% 444,600$ 11,700$ 100.0% 444,600$ 11,700$ 100.0% 444,600$ 11,700$ 100.0%-Vacancy 58,142$ 1,530$ 13.1% 48,388$ 1,273$ 10.9% 42,096$ 1,108$ 9.5% 42,096$ 1,108$ 9.5%-Delinquency -$ - -$ - -$ - -$ --Loss to Lease -$ - -$ - -$ - -$ -Net Rental Income 386,458$ 10,170$ 86.9% 396,213$ 10,427$ 89.1% 402,504$ 10,592$ 90.5% 402,504$ 10,592$ 90.5% T3Other Income 13,657$ 359$ 3.1% 12,793$ 337$ 2.9% 11,604$ 305$ 2.6% 13,657$ 359$ 3.1% T12Gross Operating Income 400,115$ 10,529$ 90.0% 409,005$ 10,763$ 92.0% 414,108$ 10,898$ 93.1% 416,161$ 10,952$ 93.6%EXPENSES -$ -Admin 366$ 10$ 0.1% 366$ 10$ 0.1% 732$ 19$ 0.2% 366$ 10$ 0.1% T12Advertising -$ -$ - -$ -$ - -$ -$ - -$ -Contract Services 10,190$ 268$ 2.3% 13,962$ 367$ 3.1% 15,969$ 420$ 3.6% 10,190$ 268$ 2.3% T12Insurance 29,830$ 785$ 6.7% 29,830$ 785$ 6.7% 29,830$ 785$ 6.7% 11,400$ 300$ 2.6% 300/unitRepairs & Maintenance 60,063$ 1,581$ 13.5% 58,369$ 1,536$ 13.1% 69,115$ 1,819$ 15.5% 22,800$ 600$ 5.1% 600/unitManagement 32,842$ 864$ 7.4% 33,696$ 887$ 7.6% 31,049$ 817$ 7.0% 24,970$ 657$ 5.6% 6%Property Taxes 76,827$ 2,022$ 17.3% 76,827$ 2,022$ 17.3% 76,827$ 2,022$ 17.3% 76,827$ 2,022$ 17.3% T12Utilities 4,051$ 107$ 0.9% 3,376$ 89$ 0.8% 3,518$ 93$ 0.8% 4,172$ 110$ 0.9% T12 + 3%Payroll -$ -$ - -$ -$ - -$ -$ - -$ -$ - 1000-1200/unitReserves -$ -$ - -$ -$ - -$ -$ - 9,500$ 250$ 2.1% 300/unitOperating Expenses 214,169$ 5,636$ 48.2% 216,426$ 5,695$ 48.7% 227,040$ 5,975$ 51.1% 160,225$ 4,216$ 36.0%

Net Operating Income 185,946$ 4,893$ 41.8% 192,579$ 5,068$ 43.3% 187,068$ 4,923$ 42.1% 255,936$ 6,735$ 57.6%

Capital Expenditures -$ -$ - -$ -$ - -$ -$ - -$ -$ -Loan Payment -$ -$ - -$ -$ - -$ -$ - 191,398$ 5,037$ 43.0% 80% LTV, 4.8%, 30 yr

Cash Flow $185,946 4,893$ 41.8% $192,579 5,068$ 43.3% $187,068 4,923$ 42.1% $64,538 1,698$ 14.5%

T12 T6 T3 Proforma

INCOME Year 1 Year 2 Year 3 Year 4 Year 5Gross Potential Rent 444,600$ 457,938$ 471,676$ 485,826$ 500,401$ -Vacancy 42,096$ 43,359$ 44,660$ 45,999$ 47,379$ -Delinquency -$ -$ -$ -$ -$ -Loss to Lease -$ -$ -$ -$ -$ Net Rental Income 402,504$ 414,579$ 427,016$ 439,827$ 453,022$ Other Income 13,657$ 14,067$ 14,489$ 14,923$ 15,371$ Gross Operating Income 416,161$ 428,646$ 441,505$ 454,750$ 468,393$ EXPENSES -$ -$ -$ -$ -$ Admin 366$ 377$ 388$ 400$ 412$ Advertising -$ -$ -$ -$ -$ Contract Services 10,190$ 10,496$ 10,811$ 11,135$ 11,469$ Insurance 11,400$ 11,742$ 12,094$ 12,457$ 12,831$ Repairs & Maintenance 22,800$ 23,484$ 24,189$ 24,914$ 25,662$ Management 24,970$ 25,719$ 26,490$ 27,285$ 28,104$ Property Taxes 76,827$ 79,132$ 81,505$ 83,951$ 86,469$ Utilities 4,172$ 4,297$ 4,426$ 4,559$ 4,696$ Payroll -$ -$ -$ -$ -$ Reserves 9,500$ 9,785$ 10,079$ 10,381$ 10,692$ Operating Expenses 160,225$ 165,031$ 169,982$ 175,082$ 180,334$

-$ -$ -$ -$ -$ Net Operating Income 255,936$ 263,614$ 271,523$ 279,668$ 288,059$

-$ -$ -$ -$ -$ Capital Expenditures -$ -$ -$ -$ -$ Loan Payment 191,398$ 191,398$ 191,398$ 191,398$ 191,398$

-$ -$ -$ -$ -$ Cash Flow 64,538$ 66,475$ 68,469$ 70,523$ 72,638$

Cash on Cash Return 7.9% 8.1% 8.4% 8.6% 8.9%

Income Growth 3.0%Expense Growth 3.0%

5 Year Cash Flow

5 Year Cash Flow Proforma

TURNING POINT TOWNHOMES 3 | FINANCIAL ANALYSIS



Address LegalDescription Square Feet Lot Size (acres)603 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 269 2,590 0.158402621 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 260 2,590 0.158402601 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 270 2,590 0.169399809 N EVANSTON AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 206 2,358 0.180831807 N ENGLEWOOD AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 217 2,669 0.256405809 N ENGLEWOOD AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 216 2,686 0.261685806 N ENGLEWOOD AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 258 2,652 0.258287805 N ENGLEWOOD AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 218 2,669 0.227342615 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 263 2,590 0.158402810 N EVANSTON AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 215 2,686 0.289118613 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 264 2,590 0.158402611 N ELKHART AVE, LUBBOCK, TX 79416 WESTERN ESTATES L 265 2,590 0.158402

Turning Point Townhomes - LoopNet

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