528 south 13th street · 2021. 2. 24. · 528 south 13th street offering memorandum february 2021...
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528 South 13th Street
Offering MemorandumFebruary 2021
Presented by: Eric FeinbergRS318964
DUPLEX2 Residential Units
in Washington Square West
Confidentiality and DisclaimerThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Eric Feinberg and Keller Williams Realty Group (KWRG) and should not be made available to any other person or entity without the written consent of Eric Feinberg and KWRG.
The Offering Memorandum shall not constitute an offer to sell the Property. A sale of the Property shall only take place upon the execution of an Agreement of Sale that has been signed by the Buyer and Seller and all conditions and contingencies contained in the Agreement of Sale have been satisfied prior to settlement.
This Offering Memorandum 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. Eric Feinberg and KWRG 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 Offering Memorandum has been obtained from sources we believe to be reliable; however, Eric Feinberg and KWRG has not verified, and will not verify, any of the information contained herein, nor has Eric Feinberg and KWRG 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.
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Table of Contents
The NumbersInvestment Summary
Financial Breakdown
Rent Roll
Financing Outline
Property DescriptionProperty Specifics
Highlights and Features
Floor Plans
Virtual Tours
Immediate Market Review
Location, Location, Location
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5
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10
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15
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12th Street - East Temple Apartments Phase I
Presented by: The Numbers
Investment SummaryFinancial BreakdownRent Roll ReviewFinancial Outline
Investment Summary
Investment Highlights
Completely Turnkey, Expertly Operated, 2 Unit Property
Newly Built in 2017
In Washington Square West – A few blocks from Jefferson and Penn Hospital
6+ Years of Tax Abatement Remaining
Pricing
Offer Price $899,000
Total Number of Units 2
Price per Unit $449,500
2021 Projected Pro Forma Cap Rate 6.16%
Terms of Sale
Offered free and clear of debt
All cash at closing
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Investment Summary
Eric Feinberg Real Estate Group is proud to present, on behalf of ownership, a 2 unit investment opportunity generating significant cash flow in Philadelphia, Pennsylvania. Specifically the Washington Square West neighborhood, one of THE MOST DESIRABLE sections of the city.
Surrounded by numerous higher education institutions, located within the McCall Catchment, and with access to great public transportation, this will be a fantastic investment opportunity for years to come.
The property is complete with an ideal unit mix. There is one 4 Bedroom and 3 Full Bathroom Unit and a 3 Bedroom and 3 Full Bathroom Unit. The price, size, and condition of the property attracts very good tenants of all different types. Medical school students, families who would like their children to attend the McCall Catchment, young professionals moving to the city, and so many more groups would be interested in living in this property. The location of the property is fantastic, a short walk to Center City, the Broad Street and Market Frankford Line, and tons of restaurants, bars, and coffee shops. With a Walk Score of 98, this can’t be beat.
Pride of ownership is apparent at this property. The owner has self-managed meticulously and ALSO currently lives in the 1st Unit. They are on-site 24/7. The property was newly built in 2017 and has 6+ years of the New Construction Tax Abatement remaining on the property. The condition cannot be beat!
Washington Square West and all of the neighborhoods surrounding it are flourishing. Even in the midst of COVID the last year, the city is still very busy and doing well. Especially Washington Square West where this property is located, there’s not many better places to live in all of Philadelphia. This unique geography creates stability and regular appreciation for years to come.
The market factors impacting this area and the unique design of this property make this a killer investment opportunity.
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Financial BreakdownUnit Mix and Pro Forma
2021 Pro Forma (Estimated)
Operating Revenues
Residental Income $ 74,640
Residental Vacancy/Collection Loss Rate 3.0%
Residental Vacancy/Collection Allowance $ (2,239)
Gross Income $ 72,401
Operating Expenses
General & Administrative $ 490
Repairs & Maintenance $ 692
Turnover $490
Common Area Expenses $575
Utilities $ 1,900
Marketing, Advertising, & Leasing $ 3,110
RE Taxes $ 2,965
Philadelphia Multi-Family Dwelling License $100
Insurance $ 3,005
Management Fee (5%) $ 3,732
Total Operating Expenses $ (17,054)
Net Operating Income $ 55,346
Capital Reserves $ (1,448)
Net Operating Income Less Capital Reserves $ 53,898
Unit Name Bedrooms Bathrooms Rent
1 4 3 $3,400
2 3 3 $2,820
Total 7 6 $6,220
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Residential Units - Rent Roll
Unit Lease Start Date Lease End DateMonthly
RentSecurity Deposit
1Owner
OccupiedOwner Can Stay or Go
$ 3,400 $ 3,400
2 6/1/20 5/31/21 $2,820 $2,700
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Potential Financing Outline
Financial Overview
Offering Price
Price per Unit
Projected CAP Rate
Financing
Down Payment (25%)
Loan Amount
Interest Rate
Amortization
Term
Return
Net Cash Before Debt Service
Annual Payment
Net Cash After Debt Service
Debt Coverage Ratio
Cash on Cash Return
$899,000
$449,500
6.16%
$224,750
$674,250
3.75%
30 Years
30 Years
$53,898
$37,341
$16,428
1.48
6.11%
Photo 1
12th Street - East Temple Apartments Phase I
Presented by: Property Description
Property SpecificsHighlights & FeaturesFloor PlansVirtual Tours
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Property Specifics
Address
County
Municipality/Township
School District
Zoning
Tax ID Number
Lot Size
Year Built
Number of Buildings
Number of Stories
Number of Residential Units
Parking
528 South 13th Street
Philadelphia
Philadelphia
Philadelphia - McCall
RM-1
053156300
780
2017
1
4
2
Street
528 S 13th Street
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Property Specifics
Construction Specs
Foundation
Exterior
Roof
Flooring
Utilities
Electric
Water
Mechanical
Heating and Cooling
Fire Protection
Concrete
Brick/Vinyl Siding
Flat/Rubber
Hardwood/Tile
Paid by Tenant, Separately Metered
Paid by Landlord
HVAC System in Each Unit
Fire Alarm and Monitoring System
Sprinkler System
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Property Specifics
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Highlights and Features• Very Spacious Units with Great Living Spaces for Each Unit
• Basically Brand New Construction, Built in 2017
• In-Unit Laundry for Each Residential Unit
• Hardwood Floors throughout Each Unit
• Unit 1 has a Private Rear Patio, Very Attractive to Tenants due to Recent Pandemic
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Floor Plan - Unit 1
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Floor Plan - Unit 2
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Virtual Tours
Unit 1 Matterport
https://my.matterport.com/show/?m=KmDEg554XoR
Unit 2 Matterport
https://my.matterport.com/show/?m=CZYUEcbLr93
Whole Property Virtual Tour Walkthrough
https://www.youtube.com/watch?v=cuVGxtOCH98&t=2s
Photo 1
Presented by: Immediate Market Review
Location, Location, Location
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Location, Location, Location
• Fantastic access to so much Philadelphia has to offer:
– Center City
– Hospitals and Schools
– Great Parks
– Great Restaurants, Bars, and Coffee Shops
See the photo below:
199 W City Ave
Saint Joseph’s University Campus
Washington Square
CITY HALL
PENN HOSPITAL
JEFFERSON UNIVERSITY HOSPITAL
University of the Arts
528 S 13th Street
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Location, Location, Location
• Fantastic access to the following Public Transit:
– Broad Street Line
– Market Frankford Line
– Access to Many Bus Routes
See the photo below:
I-76
199 W City Ave
Montgomery Avenue
Route 30Bus 65 and 44 Bus 52
Paoli/Thorndale Line
30th Street Station
Broad Street Subway Line
528 S 13th Street
Market-Frankford Line