422 cedar avenue north, owatonna, mn 55060...422 cedar avenue north, owatonna, mn 55060 location...
TRANSCRIPT
Presented By:
PHIL REESNESVice [email protected]
Michel Commercial Real Estate International, Inc. | michelcommercialre.com
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060FOR SALE | MULTIFAMILY INVESTMENT
COURTYARD APARTMENTS
CONFIDENTIALITY & DISCLAIMER
PROPERTY INFORMATION3
LOCATION INFORMATION8
FINANCIAL ANALYSIS12
RENT COMPARABLES16
ADVISOR BIOS21
A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .
N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .
E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .
A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.
Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 2
PROPERTY INFORMATION
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 3
Presented By:
PHIL REESNESVice [email protected]
SECTION 1
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OFFERING SUMMARYSale Price: $1,425,000
Number Of Units: 23
Price Per Unit: $61,957
Cap Rate: 7.12%
NOI: $101,448
Lot Size: 0.25 Acres
Year Built: 1976
Building Size: 11,336 SF
Zoning: Central Business
PROPERTY OVERVIEWThe Courtyard Apartments was built in 1976. The property consists of 16 one bedroom unitsand 7 studio units. There are two buildings with a courtyard between the two buildings. Thereis on-site laundry and vending for the convenience of the tenants. Each unit is also equippedwith a sleeve-type air conditioner, as well as it's own forced air furnace and electric baseboardheat, and it's own hot water heater.
LOCATION OVERVIEWOwatonna is a community of approximately 25,000 in population located near Interstate 35and Highways 218 and 14. There are many businesses and industries in Owatonna. Thecommunity has experienced moderate growth rate in population over the past 10 years.Owatonna is the county seat for Steele County. It is known as one of the wealthiest cities in thestate of Minnesota on a per capita basis. There are more than 500 retail, wholesale andprofessional firms and more than 40 diversified industrial firms in Owatonna.
The Courtyard Apartments are conveniently located in downtown Owatonna, close toshopping, restaurants, post office, library, and much more! Schedule your showing today!
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
PROPERTY INFORMATION | Executive Summary
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SALE HIGHLIGHTS
• New flat roofs on both buildings in last 3 years
• New electric boxes and circuit breakers in last 4 years
• New video camera security system in last 2 years
• Secure buildings
• Most units have new appliances, flooring, air conditioners (thru wall)
in last 4 years
• Newer on-site laundry equipment (owned)
• Newer doors and windows in each unit
• Each unit has it's own forced air furnace as well as electric baseboard
heat
• Each unit has it's own hot water heater
• On-site office
• Solid concrete structures
• Attractive courtyard separates 2 buildings
• Great downtown location:
• * Dining
• * Shopping
• * Library
• * Post office (and much more!)
• Excellent unit mix!
• 16 One-bedroom units
• 7 Studio units
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
PROPERTY INFORMATION | Complete Highlights
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COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
PROPERTY INFORMATION | Additional Photos
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COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
PROPERTY INFORMATION | Additional Photos
LOCATION INFORMATION
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 8
Presented By:
PHIL REESNESVice [email protected]
SECTION 2
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Courtyard Apartments
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
LOCATION INFORMATION | Regional Map
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COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
LOCATION INFORMATION | Location Maps
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Courtyard Apartments
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
LOCATION INFORMATION | Aerial Map
FINANCIAL ANALYSIS
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 12
Presented By:
PHIL REESNESVice [email protected]
SECTION 3
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INVESTMENT OVERVIEW PROFORMA
Price $1,425,000
Price per Unit $61,957
CAP Rate 7.12%
Cash-on-Cash Return (yr 1) 9.47 %
Total Return (yr 1) $59,160
Debt Coverage Ratio 1.5
OPERATING DATA PROFORMA
Gross Scheduled Income $168,600
Other Income $2,604
Total Scheduled Income $171,204
Gross Income $162,774
Operating Expenses $61,326
Net Operating Income $101,448
Pre-Tax Cash Flow $33,753
FINANCING DATA PROFORMA
Down Payment $356,250
Loan Amount $1,068,750
Debt Service $67,695
Debt Service Monthly $5,641
Principal Reduction (yr 1) $25,407
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
FINANCIAL ANALYSIS | Financial Summary
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INCOME SUMMARY PROFORMA
Apartment Rental Income $168,600LESS: 5% Estimated Vacancy -$8,430Laundry / Vending Revenue (2019) $2,604Gross Income $162,774
EXPENSE SUMMARY PROFORMA
Cleaning Payroll $1,997Cleaning Supplies $167Rubbish $1,225Maintenance Supplies $3,049Maintenance Contracts $14,349Electric $2,136Water $1,127Gas $2,776Sewer $3,116Internet Services $280Management Fees $8,064Legal Expenses $2,890Facilities Improvements $2,820Apartment Refurbishing Expense $1,261Real Estate Taxes (payable 2020) $11,990Insurance $4,079Gross Expenses $61,326
Net Operating Income $101,448
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
FINANCIAL ANALYSIS | Income & Expenses
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UNITNUMBER
UNITBED
UNITBATH
LEASESTART
LEASEEND
CURRENTRENT
PROJECTEDRENT
SECURITYDEPOSIT
1 0 1 3/18/19 3/31/20 $545 $545 $495
2 1 1 8/1/16 12/31/20 $645 $645 $537
3 1 1 7/1/18 8/31/20 $645 $645 $595
4 1 1 5/10/19 4/30/20 $645 $645 $595
5 1 1 1/16/19 12/31/20 $645 $645 $595
6 0 1 11/25/19 11/30/20 $545 $545 $495
7 1 1 4/17/20 4/30/21 $645 $645 $595
8 1 1 8/1/16 12/31/20 $645 $645 $425
9 0 1 3/18/19 3/31/20 $600 $545 $495
10 1 1 8/1/16 10/31/20 $645 $645 $425
11 1 1 1/15/20 1/31/21 $645 $645 $595
12 0 1 11/2/17 10/31/19 $545 $545 $495
13 1 1 8/1/16 12/31/20 $645 $645 $587
14 1 1 7/1/19 8/30/20 $595 $645 $595
15 0 1 8/24/16 7/31/20 $495 $545 $545
16 1 1 5/1/07 1/31/20 $645 $645 $425
17 1 1 6/1/20 5/31/21 $645 $645 $595
18 0 1 12/11/19 11/30/20 $545 $545 $545
19 1 1 4/16/20 3/31/21 $645 $645 $595
20 1 1 3/6/20 3/31/21 $645 $645 $595
21 0 1 8/1/16 1/31/20 $545 $545 $425
22 1 1 6/5/18 M/M $655 $645 $595
23 1 1 7/1/19 6/30/20 $595 $645 $595
Totals/Averages $14,050 $14,135 $12,439
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
FINANCIAL ANALYSIS | Rent Roll
RENT COMPARABLES
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 16
Presented By:
PHIL REESNESVice [email protected]
SECTION 4
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Subject Property
422 Cedar Avenue NorthOwatonna, MN 55060
1976Year Built: 0.25 AcresLot Size:
23No. Units: Avg. Rent/SF:
$610Avg. Rent: 0 SFAvg. Size:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
0 br / 1 ba 7 30.4 0 $546
1 br / 1 ba 16 69.6 0 $639Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 23 100% 0 $610
The Courtyard Apartments was built in 1976. The property consists of 16 onebedroom units and 7 studio units. There are two buildings with a courtyardbetween the two buildings. There is on-site laundry and vending for theconvenience of the tenants. Each unit is also equipped with a sleeve-type airconditioner, as well as it's own forced air furnace and electric baseboard heat, andit's own hot water heater.
435 16th St NEOwatonnaMN 55060
1
1
53,481 SFBldg Size: $789Avg. Rent:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
1 Bedroom 26 47.3 $705
2 Bedroom 25 45.5 $840
3 Bedroom 4 7.3 $1,020Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 55 100% 0 $789
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
RENT COMPARABLES | Rent Comps
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Academy Apartments706 E Academy StOwatonna, MN 55060
2
2
10,614 SFBldg Size: 11No. Units:
$794Avg. Rent:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
1 Bedroom 8 72.7 $775
2 Bedroom 3 27.3 $848Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 11 100% 0 $794
Westgate Apartments585 Adams Ave NWOwatonna, MN 55060
3
3
18,000 SFBldg Size: 30No. Units:
$708Avg. Rent:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
1 Bedroom 13 43.3 $615
2 Bedroom 14 46.7 $759
3 Bedroom 3 10 $873Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 30 100% 0 $708
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
RENT COMPARABLES | Rent Comps
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811 E School StOwatonnaMN 55060
4
4
18,758 SFBldg Size: 16No. Units:
$796Avg. Rent:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
Studio 6 37.5 $548
1 Bedroom 7 43.8 $822
3 Bedroom 3 18.8 $1,234Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 16 100% 0 $796
Maple View Apartments421 and 431 State AveOwatonna, MN 55060
5
5
14,472 SFBldg Size: 22No. Units:
$661Avg. Rent:
UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF
Studio 8 36.4 $518
1 Bedroom 10 45.5 $704
2 Bedroom 4 18.2 $840Liquid error: no implicit conversion from nil to integer
TOTAL/AVG 22 100% 0 $661
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
RENT COMPARABLES | Rent Comps
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422 Cedar Avenue North | Owatonna, MN 55060SUBJECT PROPERTY
1 Owatonna, MN55060
2706 E Academy StOwatonna, MN 55060
ACADEMY APARTMENTS
3585 Adams Ave NWOwatonna, MN 55060
WESTGATE APARTMENTS 4 Owatonna, MN55060
5421 and 431 State AveOwatonna, MN 55060
MAPLE VIEW APARTMENTS
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
RENT COMPARABLES | Rent Comps Map
ADVISOR BIOS
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Presented By:
PHIL REESNESVice [email protected]
SECTION 5
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12930 32nd Avenue NorthMinneapolis, MN 55441T [email protected]
PROFESSIONAL BACKGROUND
Phil joined Michel Commercial Real Estate Intl. Inc. in 2002. Specializing in multifamilyhousing, Phil is a valued partner to both buyers and sellers in the acquisition anddisposition of their investment properties, citing his knowledge of the market, accurateproperty valuations, quality contacts, and trusted leadership from initial contact tosuccessful closing. Phil and his wife Lisa have three children and live in the northwesternsuburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playinggolf.
Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on sellingmultifamily housing. The brokerage company represents both private and institutionalgroups, including local owners and national investors. Michel Commercial Real Estatesuccessfully trades 1,500+ units of multifamily housing a year in the Midwest andspecializes in all types of apartments, including market rate, affordable, and studenthousing. The list of apartment projects sold ranges from 10 to 500 units.
PHIL REESNES
Vice President
COURTYARD APARTMENTS
422 CEDAR AVENUE NORTH, OWATONNA, MN 55060
ADVISOR BIOS | Advisor Bio & Contact 1