kendalia - 12 - loopnet...property name address city state zip year built # of units occupancy avg....

CONFIDENTIALOffering Memorandum

Kendalia - 12 430 Kendalia AveSan Antonio, TX 78214

Jonathan KrebbsManaging PartnerPhone: 972.379.9843E-mail: [email protected]

Chase DavisVice PresidentPhone: 972.465.9533E-mail: [email protected]

Paul YazbeckManaging PartnerPhone: 972.379.9844E-mail: [email protected]

Will ClarkeVice President Phone: 469.250.9714E-mail: [email protected]

Please do not disturb management or visit the office without an appointment.

The BlueprintLocation Overview ........................................4

Property Overview ........................................6

Rent Comparables ........................................21

Financial Overview .......................................27

2

San Antonio

North

Kendalia Apartments

Location

97

10

173

Castroville

Dunlay

Natalia

Losoya

Bandera

Lytle

Castle Hills

Alamo Heights

Quihi 35

410

35

10

Leon Valley

Devine

Moore

Hondo

Uvalde

Concan

Rio FrioUtopia

Lake Hills

Piper Creek

Hollywood Park

Calaveras

Leming

Amphion

Anchorage

New Braunfels

Selma

Universal City

Live Oak Seguin

Sunnyside

Dewees

Sutherland Springs

Adkins 123

16

46

16 181

90

281

1604

54

7

Property Overview

The Multifamily Group is pleased to announce the opportunity to acquire the Kendalia - 12

Apartment building. The building is comprised of 12 units and is located at the corner of

Kendalia Avenue and Pleasanton Road in South San Antonio. All units have central heat and

air and individual electric boilers. All units feature enclosed patios and balconies. Based on the

comparable properties Kendalia could command rent bumps with the right interior upgrades. The

area has a high rate of occupancy (95%) due to the lack of product in the Sub-Market and high

rate of population growth in San Antonio, currently the highest in the country. Year over year rent

increases for this Sub-Market are some of the highest in the city at 4.9% (Yardi).

Highlights

• Class C Asset featuring 12 units built in 1985

• Opportunity to bring occupancy from 83% to area average

of 96%

• At least a $60 delta between comp supported rents

• Located 15 minutes south of Downtown San Antonio

• Easy access to I-35 (2 minutes) & Loop 410 (9 minutes)

• San Antonio is the fastest growing city in America

according to United States Census Bureau

Property Summary

Price $700,000

Terms Free and Clear

Units 12

Year Built 1985

Net Rentable SF 7,650

Average Unit Size 638 SF

Average In Place Rent $669

Electricity Resident Pays

HVAC Individual Electric

Hot Water Individual Electric

9

Property Details

Price $700,000

Terms Free and ClearAddress 430 Kendalia Ave

San Antonio Year Built 1985Units 12Net Rentable SF 7,650 Average Unit Size 638 SFSite Size 0.49 AcresDensity 24.5 Units/AcreOccupancy 83.0%

Construction

Foundation SlabExterior Brick and Masonite SidingRoof Pitched CompositionNumber of Buildings 1

Mechanical

HVAC Individual ElectricHot Water Individual ElectricWiring CopperPlumbing Copper

Utilities

Electricity Resident PaysWater/Sewer Property PaysGas Resident PaysCable/Internet Resident Pays

Tax Information

County BexarCAD Account No. 401711Tax Rate 2.833842%

Tax Detail

Assessed Value $538,490 City 0.558270ISD 1.528800County 0.291229College 0.149150Hospital 0.276235Other 0.017290Other 2 0.012868Total 2.833842%

School Information

School District Harlendale Independent School DistrictElementary Rayburn Elementry SchoolMiddle School Harlandale Middle SchoolHigh School Harlandale High School

Parking

Paving ConcreteOpen Spaces 16Total Spaces 16

Personnel

(1) Property Manager/ Maintenance

1110

Unit Mix

Type # Units % of Total Square Feet Effective Rent Market Rent Comp Supported Rent Effective $/SF Market $/SF Supported $/SF

1/1 6 50% 575 $625 $625 $684 $1.09 $1.09 $1.19

2/2 6 50% 700 $713 $725 $773 $1.02 $1.04 $1.10

Total: 12 100% 7,650 $8,028 $8,100 $8,742

Average: 638 $669 $675 $728

Annual: $91,800 $96,336 $97,200 $104,902

Notes

1312

Rent Comparables

North

Kendalia Apartments

Deely PlaceRiver Bend North

13

536

Pleasanton Rd

S Flores St

Comm

ercial Ave

S Zarzamora St

SW Military Dr

Century South

Salem Creek

1514

Rent Comparable Summary

Property Name Address City State Zip Year Built # of Units Occupancy Avg. Size Avg. Rent/Unit Avg. Rent PSF

Salem Creek 803 Flame Circle San Antonio TX 78221 1986 78 92% 758 $897 $1.18

Deely Place 8511 South Flores St San Antonio TX 78221 1986 56 98% 646 $722 $1.12

RiverBend 8237 South Flores St San Antonio TX 78221 1984 200 97% 730 $785 $1.12

Century South Apart-ments 703 Logwood Avenue San Antonio TX 78221 1976 24 96% 605 N/A N/A

Averages 1983 90 96% 685 $801 $1.17

Kendalia 430 Kendalia Ave San Antonio TX 78214 1985 12 83% 638 $669 $1.05

Variance (47) ($132) ($0.12)

35

Two BedroomOne Bedroom

PROPERTY SIZE RENT R/SFSalem Creek 560 $716 $1.28

Deely Place 550 $598 $1.09

RiverBend 516 $660 $1.28

Villa de Oro 586 $650 $1.11

Average 553 $656 $1.19 Kendalia* 575 $625 $1.09

Variance ($31) ($0.10)

PROPERTY SIZE RENT R/SFSalem Creek (2/1) 844 $911 $1.08

Deely Place 700 $792 $1.13

RiverBend (2/1) 837 $853 $1.02

Villa de Oro 776 $899 $1.16

Century South 750 $850 $1.13

Average 781 $861 $1.10 Kendalia* 700 $713 $1.02

Variance ($148) ($0.09)

Rent ComparisonThis study compares market rents from comparable properties to Kendalia's effective rents.

17

Notes

Financial Overview

1918

2120

T-12 INCOME Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 T-12 TOTAL

Market Rent 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 $91,200

Gross Potential Rent 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 $91,200

Vacancy (1,237) (875) (1,555) (934) (1,950) (1,598) (355) 100 (1,480) (1,125) (550) (850) ($12,409)

Net Rental Income 6,363 6,725 6,045 6,666 5,650 6,002 7,245 7,700 6,120 6,475 7,050 6,750 $78,791

GROSS REVENUES 6,363 6,725 6,045 6,666 5,650 6,002 7,245 7,700 6,120 6,475 7,050 6,750 $78,791

T-12 EXPENSES

Repairs & Maintenance 479 479 479 479 479 479 479 479 479 479 479 479 $5,750

Utilities 858 858 858 858 858 858 858 858 858 858 858 858 $10,300

Electric 50 50 50 50 50 50 50 50 50 50 50 50 $600

Water/Sewer 638 638 638 638 638 638 638 638 638 638 638 638 $7,660

Trash 170 170 170 170 170 170 170 170 170 170 170 170 $2,040

Management Fees 175 175 175 175 175 175 175 175 175 175 175 175 $2,100

Insurance 242 242 242 242 242 242 242 242 242 242 242 242 $2,900

Real Estate Taxes 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 $13,181

TOTAL EXPENSES 2,853 2,853 2,853 2,853 2,853 2,853 2,853 2,853 2,853 2,853 2,853 2,853 $34,231 Recurring Capital Expenditures 250 250 250 250 250 250 250 250 250 250 250 250 $3,000

NOI (WITH RESERVES) 3,261 3,622 2,942 3,563 2,547 2,899 4,142 4,597 3,017 3,372 3,947 3,647 $41,560

2322

TRENDING INCOME TRAILING 12 MONTHS

6 MONTHS ANNUALIZED INCOME

90 DAY ANNUALIZED IN-COME

60 DAY ANNUALIZED INCOME

30 DAY ANNUALIZED INCOME YEAR 1 UNDERWRITING

Market Rent 91,200 7,600 91,200 7,600 91,200 7,600 91,200 7,600 91,200 7,600 100,116 8,343

Gross Potential Rent 91,200 7,600 91,200 7,600 91,200 7,600 91,200 7,600 91,200 7,600 97,637 8,136

Vacancy (12,409) 13.6% (8,520) 9.3% (10,100) 11.1% (8,400) 9.2% (10,200) 11.2% (5,006) 5.0%

Net Rental Income 78,791 6,566 82,680 6,890 81,100 6,758 82,800 6,900 81,000 6,750 92,632 7,719

RUB Income 0 0 0 0 0 0 0 0 0 0 4,500 375

Water/Sewer 0 0 0 0 0 0 0 0 0 0 4,500 375

GROSS REVENUES 78,791 6,566 82,680 6,890 81,100 6,758 82,800 6,900 81,000 6,750 97,132 8,094

EXPENSES

Repairs & Maintenance 5,750 479 5,750 479 5,750 479 5,750 479 5,750 479 4,776 398

Utilities 10,300 858 10,300 858 10,300 858 10,300 858 10,300 858 10,300 858

Electric 600 50 600 50 600 50 600 50 600 50 600 50

Water/Sewer 7,660 638 7,660 638 7,660 638 7,660 638 7,660 638 7,660 638

Trash 2,040 170 2,040 170 2,040 170 2,040 170 2,040 170 2,040 170

Management Fee 2,100 175 2,100 175 2,100 175 2,100 175 2,100 175 4,857 405

Insurance 2,900 242 2,900 242 2,900 242 2,900 242 2,900 242 2,900 242

Taxes 13,181 1098 13,181 1,098 13,181 1,098 13,181 1,098 13,181 1,098 16,861 1,405

TOTAL EXPENSES 34,231 2853 34,231 2853 34,231 2853 34,231 2853 34,231 2853 39,694 3308

Recurring Capital Expenditures 3,000 250 3,000 250 3,000 250 3,000 250 3,000 250 3,000 250

NOI (WITH RESERVES) 41,560 3,463 45,449 3,787 43,869 3,656 45,569 3,797 43,769 3,647 54,438 4,536

NOI / In Place Cap Rate 41,560 5.94% 45,449 6.49% 43,869 6.27% 45,569 6.51% 43,769 6.25% 54,438 7.78%

Underwritten NOI & Cap Rate 36,097 5.16% 39,986 5.71% 38,406 5.49% 40,106 5.73% 38,306 5.47% 54,438 7.78%

25

5 Year Cash Flow

INCOME NOTES

Year 1 Rents have been grown at 3% based on comparable propertiesYear 1 Underwriting assumes 7.5% economic loss

EXPENSE NOTES

Repairs and Maintenance have been normalized at $398 per unit based on comparable propertiesAdministrative Costs are projected at $0 per unit based on current operationsMarketing is projected at $0 per unit based on current operationsPayroll is projected at $0 per unit based on current operationsUtilities are projected at $858 per unitManagement Fees are projected at 5.0% of Gross RevenueInsurance is projected at $242 per unit based on current policyTaxes are $16,861 based on 85% of purchase price of $700,000 and the 2017 rate of 2.834%Recurring capital expenditures have been estimated at $250 per Unit

INCOME FY1/UNIT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Gross Potential Rent 8,343 100,116 103,119 106,213 109,399 112,681Less: Total Economic Loss (624) (7,484) (10,312) (10,621) (10,940) (11,268)Economic Occupancy 93% 93% 90% 90% 90% 90%Net Rent Per Unit $677 $677 $678 $699 $720 $741Per SF $1.06 $1.06 $1.06 $1.10 $1.13 $1.16Net Rental Income 7,719 92,632 92,808 95,592 98,460 101,413Utility Reimbursement Income 375 4,500 4,590 4,682 4,775 4,871Other Income 0 0 0 0 0 0Gross Revenues 8,094 97,132 97,398 100,274 103,235 106,284Monthly Revenue 675 8,094 8,116 8,356 8,603 8,857% Increase over previous year 0.27% 2.95% 2.95% 2.95%

EXPENSES

Contract Services 0 0 0 0 0 0Repairs & Maintenance 398 4,776 4,872 4,969 5,068 5,170Administrative 0 0 0 0 0 0Marketing 0 0 0 0 0 0Payroll 0 0 0 0 0 0Utilities 858 10,300 10,506 10,716 10,930 11,149Management Fees 405 4,857 4,954 5,053 5,154 5,257Insurance 242 2,900 2,958 3,017 3,078 3,139Real Estate Taxes 1405 16,861 17,199 17,543 17,893 18,251Recurring Capital Expenditures 250 3,000 3,000 3,000 3,000 3,000Total Expenses with Reserves (3,558) (42,694) (43,548) (44,419) (45,307) (46,213)Net Operating Income 4,536 54,438 53,850 55,855 57,928 60,071

DEBT SERVICE

Total Debt Service Amount (27,563) (34,789) (34,789) (34,789) (34,789)Net Cash Flow 26,875 19,061 21,066 23,139 25,282 Return on Equity 14.91% 10.57% 11.69% 12.84% 14.03%Debt Service Coverage 1.98 1.55 1.61 1.67 1.73

CASH FLOW ASSUMPTIONS Current YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Gross Potential Rent Growth 3.00% 3.0% 3.0% 3.0% 3.0%Total Economic Loss 14% 7.48% 10% 10% 10% 10%Other/Utility Reimbursement Income Growth 2% 2% 2% 2%Operating Expense Growth 2% 2% 2% 2%Real Estate Tax Growth 2% 2% 2% 2%

Internal Rate of Return

2726

Leveraged IRR 26.33%

Unleveraged IRR 13.87%

Likely Sale Price $700,000 Estimated Closing Date Sep-18

Additional/Deferred $0 Loan Amount at Closing $525,000

Total Costs $700,000 LTV 75%

Equity Requirement (includes 1% for origin.) $180,250 Amortization (months) 360

Hold Period (Years) 5 Loan Term (Months) 120

Terminal Cap Rate 6.50% Maturity Date Sep-28

Price in Year 5 $924,168 Interest Only 1

Sales Expense 5.00% Interest Rate 5.25%

Sales Expenses @ 3% $46,208 Loan Constant 6.63%

Principal Outstanding $492,913 Monthly Payment (2,899)

Net Proceeds $385,047 Cost of Loan (%) 1.00%

Paul YazbeckManaging PartnerThe Multifamily Group

Prior to forming The Multifamily Group Paul was an Executive Director in Investment Sales with Sperry Van Ness (SVN) and finished as the company’s #7 highest performing broker out of over 1,100 brokers worldwide in 2017, the #1 ranked broker in the Southwest Region, and the top producer in the office in 2017. In 2016, Paul was the 3rd ranked broker in the Southwest Region, was the 25th highest producing Broker worldwide, and top producer in the office in 2016. He qualified for the company’s Partner’s Circle recognition in both 2016 and 2017. throughout the US.

Volunteer Involvement includes Big Brother Big Sisters (BBBS), American Corporate Partners, Gen Next, and Carter Bloodcare.

Paul’s education includes an M.B.A from the University of Texas at Austin and a B.B.A in Finance from The University of Colorado at Boulder where he attended on a ROTC scholarship. He was awarded the Bronze Star Medal for his service in Iraq during his second deployment as a Captain in the Army. Between his two deployments, he spent 27 months in Baghdad from 2003-2008.

Phone: 972.379.9844Cell: 972.310.1032Fax: 972.957.7662E-mail: [email protected]

4228 North Central Expressway, Suite 110Dallas, TX 75206

Jon KrebbsManaging PartnerThe Multifamily Group

Jon began his career in real estate in 2005, purchasing and renovating several multifamily properties while attending college. Since then, he has been involved in the brokerage, management, development, and construction of multifamily and single family assets across Texas and Oklahoma. Prior to forming The Multifamily Group, Jon was a top producer at Sperry Van Ness and the Henry S. Miller Company in Dallas. Jon specializes in asset valuation, coordination of the marketing process, property tours, and contract negotiations for sellers of multifamily

properties. With 12 years of real estate experience and an abundance of industry contacts, Jon analyzes each assignment carefully and finds creative ways to add value to his clients. Jon serves as the Community Service Coordinator for the Dallas Chapter of the Texas Tech Alumni Association and on the board of Real Estate Finance Executives Association. His education includes a B.B.A. in Finance and an M.B.A. from Texas Tech University.



2928

3130

Chase DavisVice President The Multifamily Group

Chase began remodeling rental properties in high school and developed an understanding of how to add value and increase cash flow. While earning his Bachelor of Science degree from Texas Tech University he managed a major redevelopment of downtown Round Rock, Texas and started a management company with a significant portfolio of Student Housing.

At The Multifamily Group Chase uses his knowledge of apartment rehabilitation to help principals get the most out of their properties. Chase looks to add value in whatever he does through wise negotiations

and unmatched tenacity, always approaching life from his personal business moto, “Striving for perfection, producing excellence.”



Will ClarkeVice PresidentThe Multifamily Group

Will embarked on his commercial real estate career as an investment associate and underwriter for a nationally recognized brokerage firm in 2016. In his role as Vice President at The Multifamily Group (TMG), Will is responsible for arranging multifamily transactions in the Dallas – Fort Worth metroplex as well as other major markets in the southwest region.

Will grew up in Dallas and received his B.S. in Finance with a concentration in real estate from the Naveen Jindal School of Management at The University of

Texas at Dallas.



DisclaimerThe material contained in this Marketing

Analysis is furnished solely upon the

Property Owner’s request for the purpose

of considering the sale of the property

within and is not to be used for any other

purpose. This information should not,

under any circumstance, be photocopied

or disclosed to any third party without the

written consent of The Multifamily Group or

Property Owner, or used for any purpose

whatsoever other than for the Property

Owner to evaluate the possible purchase of

the Property.

The only party authorized to represent the

Owner in connection with the sale of the

Property are the Multifamily Group Advisors

listed in this proposal, and no other person

is authorized by the Owner to provide any

information or to make any representation

other than contained in this Market Analysis.

If the person receiving these materials

does not choose to pursue a purchase of

the Property, this Market Analysis must be

returned to The Multifamily Group Advisor.

Neither The Multifamily Group Advisor

nor the Owner make any representation

or warranty, express or implied, as to

the accuracy or completeness of the

information contained herein, and nothing

contained herein is or shall be relied upon

as a promise or representation as to the

future condition, operations or financial

performance of the Property. This Market

Analysis may include certain statements

and estimates with respect to the Property

based on certain assumptions. These

assumptions may or may not be proven to

be correct, and there can be no assurance

that such results will be achieved. Further,

The Multifamily Group Advisor and the

Owner disclaim any and all liability for

representations or warranties, expressed

or implied, contained in or omitted from

this Market Analysis, or any other written

or oral communication transmitted or made

available to the recipient. The recipient

shall be entitled to rely solely on those

representations and warranties that may be

made to it in any final, fully executed and

delivered Real Estate Purchase Agreement

between it and Owner.

The information contained herein is subject

to change without notice and the recipient

of these materials shall not look to Owner

or The Multifamily Group Advisor nor any of

their officers, employees, representatives,

independent contractors or affiliates, for

the accuracy or completeness thereof.

Recipients of this Market Analysis are

advised and encouraged to conduct their

own comprehensive review and analysis of

the Property.

This Market Analysis is a solicitation of

interest only and is not an offer to sell the

Property. The Owner expressly reserves the

right, at its sole discretion, to reject any or

all expressions of interest to purchase the

Property and expressly reserves the right, at

its sole discretion, to terminate negotiations

with any entity, for any reason, at any time

with or without notice. The Owner shall

have no legal commitment or obligation to

any entity reviewing the Market Analysis or

making an offer to purchase the Property

unless and until the Owner executes and

delivers a signed Real Estate Purchase

Agreement on terms acceptable to Owner,

in Owner’s sole discretion. By submitting

Disclaimeran offer, a prospective purchaser will be deemed

to have acknowledged the foregoing and agreed

to release the Owner and The Multifamily Group

Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner

corresponds with any prospective purchaser, any

prospective purchaser should not rely on any

such correspondence or statements as binding

Owner. Only a fully executed Real Estate Purchase

Agreement shall bind the property and each

prospective purchaser proceeds at its own risk.

Information About Brokerage Services

TYPES OF REAL ESTATE LICENSE HOLDERS:A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):Put the interests of the client above all others, including the broker’s own interests; Inform the client of any material information about the property or transaction received by the broker;Answer the client’s questions and present any offer to or counter-offer from the client; andTreat all parties to a real estate transaction honestly and fairly.A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimumduties above and must inform the owner of any material information about the property or transaction known by the agent, includinginformation disclosed to the agent or subagent by the buyer or buyer’s agent.AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any

material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent.AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:Must treat all parties to the transaction impartially and fairly;May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner andbuyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.Must not, unless specifically authorized in writing to do so by the party, disclose:that the owner will accept a price less than the written asking price;that the buyer/tenant will pay a price greater than the price submitted in a written offer; andany confidential information or any other information that a party specifically instructs the broker in writing not todisclose, unless required to do so by law.AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:The broker’s duties and responsibilities to you, and your obligations under the representation agreement.Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation foryou to use the broker’s services.

333232 33

4228 North Central Expy, Suite #110 Dallas, Texas 75206

kendalia - 12 - loopnet...property name address city state zip year built # of units occupancy avg....

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