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Brian Eliason Broker Associate (605) 999-4240 [email protected]
For Sale: 15-unit Multi-Family Property
Fully Occupied
Palace View Apartments 121/123 W 6th Ave
Mitchell, SD 57301
List Price: $539,000
Fantastic location—one block west of the World’s Only Corn Palace Interior entries—secure building access Stainless steel or white appliances in remodeled units Laundry facility on-site (coin-operated, 2 washer & 2 dryers) Many improvements made since 2019 (new roof, 9 units renovated,
newer kitchens and bathrooms, newer flooring & ext. doors.
Brian Eliason Broker Associate (605) 999-4240 [email protected]
Offering Summary 15 apartment units - 9 remodeled units - 6 legacy units Fully-stabilized 100% Occupancy (Dec ‘20) 11.4% cap rate (pro forma)
Property Highlights
Palace View Apartments 121/123 W 6th Ave
Mitchell, SD 57301
For Sale: 15-unit Multi-Family Property
Fully Occupied
Brian Eliason Broker Associate (605) 999-4240 [email protected]
9 Remodeled Units:
Palace View Apartments 121/123 W 6th Ave
Mitchell, SD 57301
Brian Eliason Broker Associate (605) 999-4240 [email protected]
6 Legacy Units:
Palace View Apartments 121/123 W 6th Ave
Mitchell, SD 57301
Brian Eliason Broker Associate (605) 999-4240 [email protected]
convenient Location In Downtown Mitchell, SD
“Palace View” for a reason!
Brian Eliason Broker Associate (605) 999-4240 [email protected]
Financial Highlights
* Disclaimer: Financial Highlights have been prepared and provided by Lis ng Agent as a good‐faith es mate of the poten al financial opera ons. Buyers are hereby advised to prepare their own financial projec ons and conduct their own due diligence and SHOULD NOT rely on this Pro Forma for
future financial performance. In addi on, Financial Highlights do not reflect any tax‐related benefits or risks of inves ng in real estate.
Investment Parameters
Purchase Price $539,000 Capitaliza on Rate 11.4% Yr 1 Cash‐on‐Cash 32.3% 5‐Yr IRR 45.3%
Sample Debt Terms
LTV 80% Down Payment $107,800 Loan Amount $431,200 Interest Rate 3.75% Amor za on (yrs) 25 Term (yrs) 5
Residual Equity
Yr 5 NOI $66,866 Terminal Cap Rate 10.00% Sale Price $668,658 Less: Closing Costs (5%) $33,433 Less: Debt Payoff $373,921 Net Sale Proceeds $261,305
IRR Analysis Yr 0 (Purchase) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Ini al Equity Invested (107,800) Annual Cash Flow 34,789 35,189 36,831 38,521 40,263 Residual Equity 261,305 Net (107,800) 34,789 35,189 36,831 38,521 301,567
Projected 5‐yr IRR 45.31%
Pro Forma
* Disclaimer: Financial Highlights have been prepared and provided by Lis ng Agent as a good‐faith es mate of the poten al financial opera ons. Buyers are hereby advised to prepare their own financial projec ons and conduct their own due diligence
and SHOULD NOT rely on this Pro Forma for future financial performance. In addi on, Financial Highlights do not reflect any tax‐related benefits or risks of inves ng in real estate.
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Income 3.0% 3.0% 3.0% 3.0%
15 Apartment Units (current rent roll) $7,370 88,440 91,093 93,826 96,641 99,540 Vending/Laundry Income (actual) 3,567 3,673 3,784 3,897 4,014 Internet/Wifi (projected) $50/unit 9,000 9,000 9,000 9,000 9,000 Vacancy (projected) 5% 4,422 4,555 4,691 4,832 4,977 Net Revenue 96,585 99,212 101,918 104,706 107,577 Expenses 3.0% 3.0% 3.0% 3.0%
Prop Mgmt (projected) 6.00% 5,795 5,969 6,148 6,332 6,522 Maintenance (projected) $400/unit 6,000 6,180 6,365 6,556 6,753 Snow Removal (projected) $70 ea. 700 721 743 765 788 RE Taxes actual 3,661 5,000 5,150 5,305 5,464 Insurance actual 3,524 3,630 3,739 3,851 3,966 Natural Gas Heat actual 2,385 2,456 2,530 2,606 2,684 Electric ‐ Common Areas actual 1,748 1,800 1,854 1,910 1,967 Electric ‐ Included w/rent in 4 units actual 2,435 2,508 2,584 2,661 2,741 Water actual 5,394 5,556 5,723 5,895 6,072 Garbage actual 1,630 1,679 1,729 1,781 1,834 Internet/Wifi projected 1,920 1,920 1,920 1,920 1,920 Total Opera ng Exp's 35,192 37,420 38,484 39,581 40,711
Net Opera ng Income 61,392 61,793 63,434 65,125 66,866 Less: Debt Service 26,603 26,603 26,603 26,603 26,603 Net Cash Flow 34,789 35,189 36,831 38,521 40,263
Cash‐on‐Cash % Return 32.3% 32.6% 34.2% 35.7% 37.3%
Rent Roll: December 2020
Unit Descrip on Remodeled Sec. Deposit Current Rent Lease Start Lease Expira on
101 1 Bdrm/1 Bath Yes $500 $500 5/1/2020 4/30/2021 102 2 Bdrm/1 Bath No $500 $575 7/5/2019 Month‐to‐Month 104 2 Bdrm/1 Bath Yes $500 $500 12/1/2019 Month‐to‐Month 201 1 Bdrm/1 Bath Yes $550 $550 8/18/2020 8/31/2021 202 1 Bdrm/1 Bath Yes $525 $525 8/1/2020 7/31/2021 203 Studio Yes $500 $500 6/12/2020 5/31/2021 204 1 Bdrm/1 Bath No $375 $375 5/1/2018 Month‐to‐Month* 205 Studio Yes $500 $500 8/18/2020 8/31/2021 206 1 Bdrm/1 Bath No $395 $395 4/3/2018 Month‐to‐Month 301 1 Bdrm/1 Bath No $450 $450 12/1/2019 11/30/2020 302 1 Bdrm/1 Bath No $375 $375 6/4/2018 Month‐to‐Month 303 1 Bdrm/1 Bath No $475 $450 5/17/2018 Month‐to‐Month 304 1 Bdrm/1 Bath Yes $525 $525 12/17/2020 12/31/2021 305 1 Bdrm/1 Bath Yes $500 $500 4/1/2020 Month‐to‐Month 306 1 Bdrm/1 Bath Yes $650 $650 3/1/2020 Month‐to‐Month
15 Units $7,320 $7,370
Brian Eliason Broker Associate (605) 999-4240 [email protected]
*Note: Unit 204 has given a notice to vacate and will be available as of January 1, 2021.
Brian Eliason Broker Associate (605) 999-4240 [email protected]
For More Information or a Property Tour of:
Brian Eliason Broker Associate
(605) 999 - 4240 [email protected]
Palace View Apartments
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