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HAMPTON PLACE HAMPTON, SC | 41 UNITS

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Page 1: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

HAMPTON PLACEHAMPTON, SC | 41 UNITS

Page 2: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

HAMPTON PLACE425 WADE HAMPTON ROADHAMPTON, SC

The Kirkland Company is proud to present the following Offering Memorandum for Hampton Place, 41 Studio, 1BD & 2BD units in Hampton, South Carolina. The asset sits just off of W Carolina Ave. (11,500 VPD) and 3rd St. NE (5,200 VPD).

As a part of the South Carolina Low Country, Hampton is known for being a region along South Carolinas coast rich in historic cities and communities, natural environment, and cultural heritage. Hampton is conveniently located 75 miles west of Charleston, SC, 50 miles north of Savannah, GA, 60 miles northwest of Hilton Head Island, and 75 miles east of Augusta, GA. The asset is a 25-minute drive from The University of South Carolina Salkehatchie, one of four USC regional campuses with a total enrollment of 1,108 students and 57 members of their academic staff.

In a 2012 census Hampton County had a total employment of 91,673. The county’s largest employers include Brunson Building Supply Co. (2.2 miles), Elliott Sawmilling Co. (18.2 miles), Hampton Regional Medical Center (1.1 miles), LeCruset of America (12.2 miles), and Palmetto State Bank (1.4 miles). In addition to these, Hampton County is known for its three industrial parks, one of those covering a portion of a foreign trade zone.

Hampton’s main entertainment stems from Palmetto Theater, Bar Hampton, and Spinbad records. Hampton also has two medical centers, Beaufort Memorial Harrison Peeples Care Center and Hampton Regional Medical Center, the main emergency center in the town. Hampton Regional covers 82,000 SF, has 32 beds, and 30 members on its physician staff. The hospital operates under the guiding principle that “people living in rural areas deserve local access to the finest medical care available.”

Charlotte | Nashville | CharlestonT: 704.208.3800

TABLE OF CONTENTS

Chris YeagleManaging Partner

[email protected]

Kyle ChaseManaging Partner

[email protected]

Neil ChrispManaging Partner

[email protected]

Property Profile ...................................................................................................3

Location Overview ...............................................................................................7

Financial Analysis ..............................................................................................13

Confidentiality & Disclaimer

The 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 The Kirkland Company and should not be made available to any other person or entity without the written consent of The Kirkland Company. 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. The Kirkland Company 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, The Kirkland Company has not verified, and will not verify, any of the information contained herein, nor has The Kirkland Company 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR KIRKLAND COMPANY AGENT FOR MORE DETAILS.

Augusta

Columbia

Hampton Place

32

Page 3: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

OFFERING SUMMARY

PRICING SUMMARY

Offering Price $1,600,000

CAP Rate (Pro Forma) 9.09%

Year 1 Cash-on-Cash 13.18%

Financing Offered All Cash

INVESTMENT HIGHLIGHTS

Modern Construction

Recently Renovated

100% Occupied

W/D Connections

Newest Product In Market

54

SITE

Number of Units 41

Rentable Square Feet 36,700

Average Square Feet Per Unit 895

Number of Apartment Buildings 5

Year Built 1985

Acreage 4.14

Density (Units Per Acre) 9.90

Access Type Wade Hampton Road

CONSTRUCTION & UTILITIES

Exterior Vinyl Siding

Roof Pitched / Shingles

Parking Surface Asphalt

Electricity South Carolina Electric & Gas

Water & Sewer Lowcountry Regional Water System

UNIT BREAKDOWN

Type Units Unit SF Total SF

Studio 1 700 700

1BD/1BA 8 700 5,600

2BD/1BA 32 950 30,400Total/Avgs 41 895 36,700

Page 4: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

LOCATION OVERVIEW

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Page 6: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present
Page 7: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

FINANCIAL ANALYSIS

Page 8: HAMPTON PLACE - LoopNetimages2.loopnet.com/d2/Fg4LEnAxNOXB_H-aWHTmaIt45j9eQINJpoEfs… · HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present

INCOME May-17 T12 % of Gross May-17 T3 % of

GrossYear 1 Pro

Forma% of Gross

Year 2 Pro Forma

Year 3 Pro Forma

Year 4 Pro Forma

Year 5 Pro Forma

Market Rent $240,300 $240,300 $265,200 $273,156 $281,351 $289,791 $298,485

Rent Growth $0 $0 $7,956 $8,195 $8,441 $8,694 $8,955

Scheduled Rent $240,300 $240,300 $273,156 $281,351 $289,791 $298,485 $307,439

(Vacancy: Loss-to-Lease) $0 $0 ($5,304) 2.00% ($5,463) ($5,627) ($5,796) ($5,970)

Gross Potential Rent $240,300 $240,300 $267,852 $275,888 $284,164 $292,689 $301,470

(Vacancy: General) ($38,272) 15.93% ($16,728) 6.96% ($10,608) 4.00% ($10,926) ($11,254) ($11,592) ($11,939)

Net Rental Income $202,028 $223,572 $257,244 $264,961 $272,910 $281,097 $289,530

Plus: Late Fee $580 $420 $420 $433 $446 $459 $473

Plus: Other Income ($1,057) $0 $0 $0 $0 $0 $0

Effective Gross Income $201,551 $223,992 $257,664 $265,394 $273,356 $281,556 $290,003

EXPENSES May-17 T12 Per Unit May-17 T12 Per Unit Year 1 Pro Forma Per Unit Year 2 Pro

FormaYear 3 Pro

FormaYear 4 Pro

FormaYear 5 Pro

Forma

Real Estate Taxes $27,218 $664 $27,218 $664 $32,162 $784 $33,127 $34,121 $35,145 $36,199

Insurance $11,503 $281 $11,503 $281 $9,225 $225 $9,502 $9,787 $10,080 $10,383

Electricity $9,436 $230 $9,436 $230 $9,719 $237 $10,011 $10,311 $10,620 $10,939

Water & Sewer $4,135 $101 $4,135 $101 $4,259 $104 $4,386 $4,518 $4,654 $4,793

Pest Control $1,715 $42 $1,715 $42 $1,766 $43 $1,819 $1,874 $1,930 $1,988

Manager Payroll $7,136 $174 $7,136 $174 $7,350 $179 $7,570 $7,797 $8,031 $8,272

Security $700 $17 $700 $17 $721 $18 $743 $765 $788 $811

Administrative $5,808 $142 $5,808 $142 $5,982 $146 $6,162 $6,347 $6,537 $6,733

Internet $585 $14 $585 $14 $603 $15 $621 $639 $659 $678

Maintenance & Repairs $5,846 $143 $5,846 $143 $6,150 $150 $6,335 $6,525 $6,720 $6,922

Cleaning & Decorating $1,952 $48 $1,952 $48 $5,125 $125 $5,279 $5,437 $5,600 $5,768

Landscaping & Grounds $785 $19 $785 $19 $809 $20 $833 $858 $884 $910

Professional $412 $10 $412 $10 $424 $10 $437 $450 $464 $477

Management (% of EGI) $10,737 5.33% $10,737 4.79% $13,527 5.25% $13,933 $14,351 $14,782 $15,225

Capital Reserves $4,569 $111 $4,569 $111 $14,350 $350 $14,350 $14,350 $14,350 $14,350

Total Expenses $92,537 $2,257 $92,537 $2,257 $112,172 $2,736 $115,107 $118,130 $121,243 $124,450

Net Operating Income $109,014 $131,455 $145,492 $150,287 $155,226 $160,313 $165,553

FINANCIAL ANALYSIS

Notes on Financials

The rent roll includes 40 units. However, the property is renovating a small office building to be a studio. This unit is assumed to have 700 Square Feet and a market rent of $500 preleased.

As of July 1, the property assessed a $25 per month rent increase to all tenants not at the standard rate. This increase has been included on the 28 rents below the standard rate for this analysis.

Rental income was not included on the financials provided for April and May. The rental income from March has been used for April and May.

The line item “Balance Adjustment” from the financials provided has been removed from this analysis.

Rent Growth is based off 3% growth each year.

Other Income: All Other Income items are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis.

Real Estate Taxes:

The state of South Carolina allows the appraised value at the time of sale to be equal to 75% of the sales price. While this reduction is state law, it must be requested. It is recommended that investors contact a professional for more specific information relating to this law.

Travel expenses, including fuel and meals, have been removed from this analysis.

The Total Maintenance Expense figure is an indicator for informational purposes only that we calculate by adding together the following line item expenses: Maintenance Payroll, Maintenance & Repairs, Cleaning & Decorating, and Capital Reserves.

All expenses are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis.

Tax Reappraisal Schedule

Last Reassessment

Year

Next Reassessment Year

Assessment Ratio

Total Millage Rate

Every 5 Years 2016 2021 6% $44.67 per $100 of assessed value

Time Period Parcel ID Appraised Value Assessed ValueHampton Co. Millage Rate

Hampton Millage Rate

Real Estate Taxes

2016 119-12-07-001 $1,146,100 $68,766 $0.79 $43.88 $30,718

Type Units Vacant Units

Unit SF

Total SF In-Place Rent Market Rent In-Place Rent

(Monthly)Market Rent

(Monthly)

Studio 1 0 700 700 $500 $500 $500 $500

1BD/1BA 8 0 700 5,600 $441 $450 $3,525 $3,600

2BD/1BA 32 0 950 30,400 $496 $500 $15,875 $16,000

Totals / Avgs 41 0 895 36,700 $485 $490 $19,900 $20,100

1514

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Chris YeagleManaging Partner

[email protected]

Kyle ChaseManaging Partner

[email protected]

Neil ChrispManaging Partner

[email protected]

Charlotte | Nashville | CharlestonT: 704.208.3800