CALL FOR OFFERS MULTIFAMILY INVESTMENT OPPORTUNITY … · Highland Hills The Cliffs of Macon Bed/Bath Units Avf SF Avg Rent Per/SF 1 Bed / 1Bath 40 864 $520 $0.60 2 Bed / 1.5 Bath

CALL FOR OFFERSMULTIFAMILY INVESTMENT OPPORTUNITY

152 UNIT APARTMENT COMPLEX

Exclusive OfferingCherry Tree Hill Apartments2050 Old Clinton Road | Macon, GA 31211

Commercial Real Estate Services, Worldwide.

TABLE OF CONTENTS

3. Offering

4. Market

9. Location

11. Investment Highlights

24. Financial Analysis

27. Valuation

OFFERING SUMMARY

Cherry Tree Hill Apartments2050 Old Clinton RoadMacon, GA 31211

SALE PRICETo Be Determined By Market

CALL FOR OFFERS DATEJuly 12, 2017

PROPERTY VISITS

OFFER SUBMISSIONPlease submit offers directly to NAI Earle Furman in the form of a non-binding letter-of-Intent (“LOI”).

OFFERING

DEBT PARAMETERSDebt Assumption

Interested parties are required to schedule property tours directly through NAI Earle Furman. Under no circumstances should the property or seller be contacted directly. Please contact one of our Brokers to schedule a tour.

3 | Offering

Bern DuPree NAI Earle Furman, LLC 864 678 [email protected]

Gwinna Cahal NAI Earle Furman, LLC 864 678 [email protected]

James Dasher Coldwell Banker [email protected]

Kay Hill NAI Earle Furman, LLC 864 678 [email protected]

Tony Bonitati

NAI Earle Furman, LLC 864 678 5994 [email protected]

MACON, GEORGIA

4 | Market

MACON, GEORGIA

Macon lies near the geographic center of the state, approximately 85 miles (137 km) south of Atlanta, hence the city’s nickname “the Heart of Georgia.”

Cherry Tree Hill is located in Bibb County in the city of Macon. Bibb County is located in the Macon Metropolitan Statistical Area (MSA). The MSA is comprised of Bibb, Monroe, Jones, Crawford, and Twiggs Counties.

The city has several institutions of higher education, as well as numerous museums and tourism sites. Macon is considered the center for transportation, communication, medical facilities, retail trade, and industry for Central Georgia. The Macon economy is also closely tied to the Robins Air Force Base in neighboring Houston County; the state’s largest industrial complex employing more than 25,000 civilian, contractor, and military members.

5 | Market

CHERRY TREE HILL

75 Miles

150 Miles

6 | Market

TOP EMPLOYERS - MACON /BIBB COUNTYThe Boeing Corporation

Mercer University

Medical Center, Navicent Health

7 | Market

Company Product/ServiceNumber ofEmployees

Medical Center of Central Georgia Hospital 6,200

GEICO Insurance 5,000

Bibb County Board of Education Public Education 3,700

Coliseum Health System Hospital 1,400

City of Macon Government 1,142

Mercer University Private Education 900

Bibb County County Government 780

YKK (USA) Zippers & Vinyl Windows Mfg. 750

Wal-Mart Super Stores Retail 740

United States Postal Service Postal Service 600

Georgia Farm Bureau Insurance 525

Graphic Packaging Corporation Coated & Container Board 500

The Boeing Company Components Manufacturing 486

IKON Office Solutions Sales, Service & Finance 454

8 | Market

TOP EMPLOYERS - BIBB COUNTY

CHERRY TREE HILL

9 | Location

OLD

CLIN

TON R

OAD

AERIAL PHOTO

10 | Location

Northeast High School

ApplingMiddleSchool

Jones Elementary

School

Gra

y H

wy

Shurling Dr.

11 | Location

AREA MAP

SiteVPD:

23,600

VPD: 25,430

Downtown3.1 miles

CHERRY TREE HILL

12 | Investment Highlights

PROPERTY SPECS

SITE ADDRESSCherry Tree Hill Apartments2050 Old Clinton RoadMacon, GA 31211

LOCATION

Located just minutes northeast of downtown Macon, Cherry Tree Hill has excellent accessibility to two interstates, a variety of retail, and the Macon CBD. Nearby Gray Highway, one of Macon’s major arteries, provides residents with a direct connection to downtown Macon, Interstate 16 / Interstate 75, and numerous retail options including a Wal-Mart Supercenter, all under three miles from the property.

Residents enjoy superior regional connectivity via Interstates 16 and 75. Interstate 75 offers a direct commute 75 miles north to Atlanta, and Interstate 16 connects residents to Savannah and its prolific port, 150miles to the southeast.

SITE SIZE & DENSITYCherry Tree Hill Apartments comprises a 12.66 acre site developed with 152 apartment units.

PARKING (SOURCE: COSTAR)Parking is provided via 300 free surface spaces (2.0 per unit).

YEAR BUILT1983

Built in 1983, Cherry Tree Hill benefits from durable construction featuring brick exteriors with wood accents, pitched roofs, and exterior hallways. The asset’s well-maintained condition combined with its mature landscaping and enduring architecture provides attractive curb appeal to prospective tenants.

The property has a full swim/tennis amenity package with a stand alone clubhouse/leasing office, tennis court,swimming pool, and laundry facility.

PROPERTY HIGHLIGHTS


UNIT INFORMATION

UTILITIES

UNIT MIX

KITCHENS

• Dishwasher• Stove• Garbage disposal• Refrigerator• Large pantries• Breakfast bar• Oversized closets• Central heat and air• Reserved parking• Playground• Swimming pool and tennis court• Camera security system

Utility Provider Paid ByWater / Sewer Bibb County ResidentElectricity GA Power ResidentCable Winstream Resident

Unit Type Units Avg SF Rent/Unit Rent/SF1 Bed / 1 Bath 64 588 $451 $0.762 Bed / 1 Bath 88 840 $551 $0.65Totals/Average 152 734 $509 $0.69

Three one-bedroom and eight two-bedroom fire/water damaged units have been renovated with white cabinets, faux-granite laminate countertops, and new carpet and vinyl. A new owner could institute a low-cost renovation program and push rents at Cherry Tree Hill. We estimate a $3,500 renovation budget would produce up to $100 per month rental increase producing a blended ROI of 30%.

Other amenities include:


INTERIOR UNIT UPGRADESAchieve the greatest return on investment by continuing the interior unit upgrades already in process.

ROI

RENT PREMIUM

Per unit / 2 Bedroomspotential rent premium

$100

Full Upgrade: $3,500Rent Premium Annual: $1,20030%

*New Appliances $1,000*New Flooring $1,000*New Fixtures & Hardware $1,000*Countertops $ 500Total $3,500*Estimates

Proven Rental Premiums with:

VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE

$75


Per unit / 1 Bedroompotential rent premium

$0

$100

$200

$300

$400

$500

$600

$700

1 BR - 1 BTH 1 BR - 1 BTH - Renovated 2 BR - 1 BTH 2 BR - 1 BTH - W/D Conn. 2 BR - 1 BTH - W/D Conn. -Renovated

$450 $525 $550 $560

$650

Cherry Tree Hill - Interior Renovation Potential


$71,000

$72,000

$73,000

$74,000

$75,000

$76,000

$77,000

$78,000

January February March April May June July August September October November December

Gross Potential Rent Growth

Series1

Gross Potential Rent Growth

Interior Renovation Potential

VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE

$100 per month increase with $3,500 Renovation Cost ROI of 34%

$75 per month increase with $3,500 Renovation Cost ROI of 26%

2

3

4

PROPERTY TOTAL UNITS

YEAR BUILT

AVG. SF/ UNIT

AVG. RENT/ UNIT

RENT/ SQ. FT.

Cherry Tree Hill Apartments 152 1983 734 $509 $0.69

1 Highland Hills Apartments 241 1971 1,244 $656 $0.532 The Cliffs of Macon Apartments 142 1972 1,083 $730 $0.673 Overlook Gardens Apartments 184 1988 1,025 $646 $0.634 River Park Apartments 232 1977 / 2016 1,043 $631 $0.60

Averages 200 1977 1,099 $666 $0.61

RENT COMPS


HIGHLAND HILLS

RIVER PARK

THE CLIFFS

OVERLOOK GARDENS

Cherry Tree Hill

1

RENT COMPSHighland Hills The Cliffs of Macon

Bed/Bath Units Avf SF Avg Rent Per/SF

1 Bed / 1Bath 40 864 $520 $0.60

2 Bed / 1.5 Bath 2 1,142 $599 $0.52

2 Bed / 1.5 Bath 60 1,220 $599 $0.492 Bed / 2 Bath 60 1,175 $633 $0.542 Bed / 2 Bath 1 1,187 $633 $0.533 Bed / 2 Bath 40 1,257 $730 $0.583 Bed / 2.5 Bath 2 1,493 $836 $0.56

3 Bed / 2.5 Bath 36 1,798 $850 $0.47

Total/Avg 241 1,244 $656 $0.53

Year Built: Total Units: Property Type: Total Area (SF):

1971241 Garden 297,041 SF

2275 Gray HwyMacon, GA 31211

Unit Mix and Rental Rates

Unit Breakdown Features & AmenitiesBalconyStorage SpaceFully Equipped KitchenFireplaceWalk-In ClosetsPicnic Area/PlaygroundPoolTennis CourtSport Court



1972 142Garden 157,412 SF

1895 Clinton RoadMacon, GA 31211

Bed/Bath Units Avg SF Avg Rent Per/SF

1 Bed / 1 Bath 37 750 $579 $0.77

2 Bed / 2 Bath 35 1,000 $649 $0.65

3 Bed / 2 Bath 35 1,200 $757 $0.63

4 Bed / 2 Bath 35 1,400 $942 $0.67

Total/Avg 142 1,083 $730 $0.67

1 Bedroom26%

2 Bedroom24%

3 Bedroom25%

4 Bedroom25%

Unit Breakdown Features & AmenitiesGatedFull Equipped KitchenCrown MoldingBalconyLaundry FacilitiesPoolPlaygroundPicnic AreaFitness CenterClubhouse/Grill

1 2


1 Bedroom17%

2 Bedroom51%

3 Bedroom32%

RENT COMPSOverlook Gardens River Park



1977/2016 232 Garden 240,000 SF

700 Tidewater CircleMacon, GA 31211

Bedrooms Units Avg SF Avg Rent Per/SF

1 Bed / 1 Bath 64 760 $555 $0.73

2 Bed / 1 Bath 54 1,081 $645 $0.60

2 Bed / 2 Bath 38 1,083 $670 $0.62

3 Bed / 2 Bath 76 1,235 $666 $0.54

Total/Avg 232 1,043 $631 $0.60

1 Bedroom27%

2 Bedroom40%

3 Bedroom33%

Unit Breakdown Features & Amenities

Fitness CenterLaundry ServicePoolAir ConditioningDishwasherRefrigerator

3 4


1988 184 Garden 253,576 SF

1400 Gray HwyMacon, GA 31211


BalconyCeiling FansGatedVolleyball CourtClubhouseGrillLaundry FacilitiesPlaygroundPool

Bed/Bath Units Avg SF Avg Rent Per/SF

1 Bed / 1 Bath 45 733 $529 $0.72

2 Bed / 1 Bath 32 971 $604 $0.62

2 Bed / 2 Bath 61 1,094 $664 $0.61

3 Bed / 2 Bath 46 1,255 $764 $0.61

Total/Avg 184 1,025 $646 $0.63

1 Bedroom24%

2 Bedroom51%

3 Bedroom25%

Unit Breakdown Features & Amenities


Copyrighted report licensed to NAI Earle Furman LLC - 751500.6/2/2017

Page 1

1

3

2

PROPERTY TOTAL UNITS

YEAR BUILT

SALE DATE

SALE PRICE

Price/Unit

Cherry Tree Hill 152 1983 TBD TBD TBD1 Magnolia Crossing Apartments 116 1980 7/31/2015 $4,200,000 $36,2072 Ashley Woods Apartments 96 1984 4/8/2015 $3,300,000 $34,3753 Chambers Cove Apartments 72 1990 10/16/2015 $1,900,000 $26,3894 Creekside Vistas Apartments 100 1973 12/20/2016 $2,250,000 $25,5005 Park Slope Apartments 96 1971 6/27/2016 $2,200,100 $22,9186 Carriage Hills Apartments 160 1977 1/9/2015 $3,800,000 $23,750

Averages 113 2,941,683 $28,190

4

5

SALE COMPS

6

Cherry Tree Hill


MAGNOLIA CROSSING

ASHLEY WOODS

CHAMBERS COVE

CREEKSIDE VISTAS

CARRIAGE HILLS

PARK SLOPE

SALE COMPS21

Unit Breakdown


Features & Amenities

Sale Information


Ashley Woods Apartments

Unit Breakdown



Sale Information


1984 96 Garden 84,000 SF

3900 Northside DriveMacon, Georgia 31210

• Sale Date: 4/8/2015• Price/Unit: $34,375

• Sale Price: $3,300,000

Bed/Bath Units SF Avg Rent Per/SF

1 Bed / 1 Bath 72 800 $572 $0.72

2 Bed / 2 Bath 24 1,100 $928 $0.61

Total/Avg 96 875 $597 $0.68

1 Bedroom75%

2 Bedroom25%

BalconyWalk-In ClosetsCabanaGatedPoolPlaygroundBusiness CenterProperty Manager on Site

Magnolia Crossing Apartments


1980 116 Garden 136,740 SF

461 Forest Hill RoadMacon, GA 31210



2 Bed / 1 Bath 24 1,100 $525 $0.48

2 Bed / 1.5 Bath 65 1,100 $620 $0.56

3 Bed / 2 Bath 16 1,300 $625 $0.48

3 Bed / 2.5 Bath 10 1,540 $760 $0.49

4 Bed / 4 Bath 1 2,200 $1,200 $0.55

Total/Avg 116 1,175 $618 $0.53

2 Bedroom77%

3 Bedroom22%

4 Bedroom1%

Ceiling FansEat-in KitchenFireplaceDining RoomClubhouseMaintenance on sitePlaygroundPoolHealth Club Discount

• Sale Price: $4,200,000

3

Unit Breakdown


SALE COMPS


Sale Information

4

Unit Breakdown



Sale Information


Chambers Cove Apartments

Sale Information


208 Chambers Cove DriveMacon, Georgia 31206

1990 72 Garden 80,100 SF


• Sale Price: $1,900,000


2 Bed / 1.5 Bath 4 800

2 Bed / 2 Bath 16 900

2 Bed / 2 Bath 36 700

3 Bed / 2 Bath 16 1,00 675 $0.68

Total/Avg 72 817

2 Bedroom78%

3 Bedroom22%

DishwasherEat-in KitchenBalconyPoolClubhouseWasher/Dryer Hook-up

Creekside Vistas Apartments


1973 100 Garden 79,060 SF

4690 Log Cabin DriveMacon, GA 31204


• Sale Price: $2,250,000


1 Bed / 1 Bath 33 660 $530 $0.80

1 Bed / 1 Bath 35 710 $548 $0.77

2 Bed /1.5 Bath 32 1,015 $650 $0.64

Total/Avg 100 791 $575 $0.73

1 Bedroom68%

2 Bedroom32%

DishwasherBalconyAir ConditioningMaintenance on SiteWasher/Dryer Hook-up

5

Unit Breakdown


SALE COMPS


Sale Information

Carriage Hills Apartments6

Unit Breakdown



Sale Information


3871 Northside DriveMacon, Georgia 31210

1977 160 Garden 216,262 SF


• Sale Price: $3,800,000


1 Bed / 1 Bath 40 1,000 $665 $0.67

2 Bed / 1.5 Bath 88 1,175 $715 $0.61

3 Bed / 2 Bath 32 1,300 $799 $0.61

Total/Avg 160 1,156 $719 $0.62

2 Bedroom78%

3 Bedroom22%

BalconyCeiling FansPlaygroundPoolDishwasher Laundry Facilities


Park Slope Apartments


4406 Chambers RoadMacon, Georgia 31206

1971 96 Garden 80,100 SF


• Sale Price: $2,200,000


1 Bed / 1 Bath 12 595

2 Bed / 1 Bath 72 836

3 Bed / 1.5 Bath 12 1,064

Total/Avg 96 834

1 Bedroom12%

2 Bedroom75%

3 Bedroom13%

DishwasherCarpetDisposalWalk-in ClosetProperty Manager on SiteTrash Pick-up Door to Door

24 | Financial Analysis

CHERRY TREE HILL

FINANCIAL ANALYSIS


December 2016 March 2017 NAI Multifamily Extended Proforma

Revenue Actual T-6 Revenue/T-12 Expenses Proforma - Year 1 Year 2 Year 3 Year 4 Year 5

Total Per Unit Total Per Unit Total Per Unit Total Total Total TotalGROSS POTENTIAL RENT

Market Rent $825,970 $5,434 $846,864 $5,571 $945,420 $6,220 $945,420 $964,328 $983,615 $1,003,287 Gain/(Loss) to Lease $0 $0 $0 $0 ($45,436) ($299) ($539) $0 $0 $0

TOTAL GROSS POTENTIAL RENT $825,970 $5,434 $846,864 $5,571 $899,984 $5,921 $944,881 $964,328 $983,615 $1,003,287 DEDUCTIONS

Vacancy Loss ($41,377) ($272) ($57,103) ($376) ($56,725) ($373) ($56,725) ($57,860) ($59,017) ($60,197)Employee/Courtesy Officer ($5,400) ($36) ($5,400) ($36) ($5,400) ($36) ($5,400) ($5,400) ($5,400) ($5,400)Bad Debt-Rent Write-Off ($4,081) ($27) ($1,392) ($9) ($4,500) ($30) ($4,724) ($4,822) ($4,918) ($5,016)

TOTAL DEDUCTIONS ($50,858) ($335) ($63,894) ($420) ($66,625) ($438) ($66,850) ($68,081) ($69,335) ($70,614)NET RENTAL INCOME $775,112 $5,099 $782,970 $5,151 $833,359 $5,483 $878,031 $896,247 $914,280 $932,674

OTHER INCOMELate Fees $22,338 $147 $18,580 $122 $19,000 $125 $19,000 $19,000 $19,000 $19,000

Laundry Income $5,281 $35 $3,452 $23 $5,000 $33 $5,000 $5,000 $5,000 $5,000 Lease Termination Income $9,640 $63 $6,800 $45 $7,500 $49 $7,500 $7,500 $7,500 $7,500

Other Income $14,979 $99 $14,696 $97 $14,750 $97 $14,750 $14,750 $14,750 $14,750 TOTAL OTHER INCOME $52,238 $344 $43,528 $286 $46,250 $304 $46,250 $46,250 $46,250 $46,250

TOTAL REVENUE $827,349 $5,443 $826,498 $5,437 $879,609 $5,787 $924,281 $942,497 $960,530 $978,924 EXPENSESPayroll $145,966 $960 $147,799 $972 $147,799 $972 $147,799 $147,799 $147,799 $147,799

Management Fees $23,870 $157 $19,958 $131 $35,184 $231 $36,971 $37,700 $38,421 $39,157 Administrative Expense $19,000 $125 $15,285 $101 $30,400 $200 $30,400 $30,400 $30,400 $30,400

Marketing $8,090 $53 $7,229 $48 $18,000 $118 $18,000 $18,000 $18,000 $18,000 Utilities $72,470 $477 $67,653 $445 $69,682 $458 $71,773 $73,926 $76,144 $78,428

Contract Services $25,831 $170 $25,052 $165 $25,052 $165 $25,052 $25,052 $25,052 $25,052 Repairs & Maintenance $69,911 $460 $65,535 $431 $91,200 $600 $93,936 $96,754 $99,657 $102,646

Taxes $31,258 $206 $31,818 $209 $58,128 $382 $58,128 $58,128 $58,128 $58,128Insurance $19,904 $131 $22,359 $147 $38,000 $250 $38,380 $38,764 $39,151 $39,543

TOTAL EXPENSES $416,300 $2,739 $402,688 $2,649 $513,446 $3,378 $520,440 $526,523 $532,753 $539,154

NET OPERATING INCOME $411,050 $2,704 $423,809 $2,788 $366,163 $2,409 $403,842 $415,974 $427,777 $439,770

Reserves 54,108 $356 $54,108 $356 $54,108 $356 $54,108 $54,108 $54,108 $54,108

NET OPERATING INCOME (AFTER RESERVES) $356,942 $2,348 $369,701 $2,432 $312,055 $2,053 $349,734 $361,866 $373,669 $385,662

T-3 Revenue/T-12 Expenses NOI Adjusted for increase in taxes $343,392

ASSUMPTIONS - REVENUE & EXPENSES

LOSS TO LEASE

MARKET RENT

Market Rents are based on a survery of market comparable properties (included in this package).

EMPLOYEE/COURTESY OFFICER UNITS

Loss to Lease represents the difference between Market Rent and current in place rents. Proforma rent growth assumes that rents are increased $30 at renewal and brought to market rent at turnover.

Employees Concessions are based on historical performance and are set at $450 per month.

MANAGEMENT FEESManagement Fees are assumed to be 4% of Total Revenue.

VACANCY LOSSVacancy is assumed to be 6% and is based on historical performance.

REPAIRS AND MAINTENANCERepairs and Maintenance is assumed to be $600 per unit per year.

TAXESTaxes are estimated to increase at point of sale. NAI Earle Furman and its associates are not tax professionals. Purchaser should consult with a tax professional to determine estimated taxes.

ADMINISTRATIVE EXPENSEAdministrative Expense is assumed to be $200 per unit per year.

BAD DEBT

Bad Debt is assumed to be 0.5% which is consistent with historical performance.

OTHER INCOMEOther Income is based on historical performance.

PAYROLL AND RELATED EXPENSESPayroll and Related Expenses is based on historical performance.

MARKETING EXPENSEMarketing is assumed to be $1,500 per month.

UTILITIESUtilities is based on historical performance and is assumed to increase at a rate of 3% per year.

INSURANCEInsurance is estimated to be $250 per unit per year.

RESERVES FOR REPLACEMENTReserves for Replacement are $54,108 per year as required under the current loan terms.


KEY VALUATION CONSIDERATIONS

• Cherry Tree Hill is being offered for sale with the assumption of a Freddie Mac non-recourse loan. The note is an SBA loan and does not allow for a supplemental.

• The note terms are as follows:

LENDING REQUIREMENTS

o Origination Date: November 6, 2013o Original Balance: $2,500,000o Rate: 4.81%o Maturity Date: December 1, 2023

• Please contact NAI Earle Furman for further information regarding all aspects of the debt parameters.

27 | Valuation

Documents

CALL FOR OFFERS MULTIFAMILY INVESTMENT OPPORTUNITY … · Highland Hills The Cliffs of Macon Bed/Bath Units Avf SF Avg Rent Per/SF 1 Bed / 1Bath 40 864 $520 $0.60 2 Bed / 1.5 Bath