New Sale Offering Memorandum (L) - LoopNet...Tulsa • Current in place rents $70 dollars below market according torent Yardi Matrix survey • The immediate area boasts a number of

SVN | OAK REALTY ADVISORS | 4812 E 81ST ST, STE 301, TULSA, OK 74137 OFFERING MEMORANDUM

MADISON PARK9743 EAST 12TH STREET

TULSA, OK 74128

Benjamin Davis

Managing Director 918.201.2005

[email protected]

Raymond Lord

Managing Director 918.201.2005

[email protected]

mailto:[email protected]


1 PROPERTY

INFORMATION9743 East 12th Street

Tulsa, OK 74128

SVN | OAK Realty Advisors | Page 2MADISON PARK | 9743 EAST 12TH STREET TULSA, OK 74128

NOI: $410,700

Lot Size: 5.78 Acres

Year Built: 1973

Building Size: 108,800 SF

Renovated: 2014

buyer to come in with strong management and increase current in place rents. The average occupancy in the area is

above 94% and the majority of the employers in a 5 mile radius comes from the manufacturing and distribution sector

which is one of the sectors the city of Tulsa has been targeting increasing specifically in aerospace.

Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the tenant profile in the

area as well as strong rental criteria to attract qualified tenants. The community has a number of different amenities

including a swimming pool with large sundeck, onsite laundry facility, and spacious club house and leasing office.

OFFERING SUMMARY PROPERTY OVERVIEW

Sale Price: $5,300,000 SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment community

represents a terrific opportunity to acquire a stable property with value add components. Current in place rents are $70

Number Of Units: 128 dollars below average according to a recent market study of comparable properties inside a 2 mile radius.

Cap Rate: 7.75% In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good position for a new

PROPERTY HIGHLIGHTS

Zoning:

Market:

RS-2

Tulsa

• Current in place rents $70 dollars below market according to rent Yardi Matrix survey

• The immediate area boasts a number of local and national employers specifically in the manufacturing & distribution

area which Tulsa has indicated being two sectors which they plan on targeting new companiesPrice / SF: $48.71

• Average area apartment occupancy of 94% within a 2 mile radius

Property Summary


UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF

1 Bed 1Bath 40 31.3 700 $437 $0.63 $500 $0.71

1 Bed 1Bath 16 12.5 800 $469 $0.59 $525 $0.66

2 Bed 1Bath 32 25.0 900 $550 $0.61 $595 $0.66

2 Bed 1.5Bath 16 12.5 950 $557 $0.59 $665 $0.70

2 Bed 2 Bath TH 24 18.8 1,000 $600 $0.60 $700 $0.70

Totals/Averages 128 100% 108,800 $65,966 $0.61 $74,880 $0.69

Unit Mix Summary


PROPERTY OVERVIEW

SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment

community represents a terrific opportunity to acquire a stable property with value add components.

Current in place rents are $70 dollars below average according to a recent market study of comparable

properties inside a 2 mile radius.

In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good

position for a new buyer to come in with strong management and increase current in place rents. The

average occupancy in the area is above 94% and the majority of the employers in a 5 mile radius comes

from the manufacturing and distribution sector which is one of the sectors the city of Tulsa has been

targeting increasing specifically in aerospace.

Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the

tenant profile in the area as well as strong rental criteria to attract qualified tenants. The community has a

number of different amenities including a swimming pool with large sundeck, onsite laundry facility, and

spacious club house and leasing office.

LOCATION OVERVIEW

Madison Park is exceptionally well located just west of 169 on E 11th street. The property has a terrific unit

mix to take advantage of the large number of manufacturing and distribution companies within a 5 mile

radius such as American Airlines, Hilti, Spirit Aerosystems, Melton Truck Lines, and West Corp. Additionally,

the area boasts a several large technical colleges, Tulsa Tech and Tulsa Welding School, as well as a

number of national and regional headquarters such as State Farm Regional HQ and Quicktrip Corporate

HQ.

Residents have easy access to a number of local grocery stores, shopping centers, as well as freeways

with direct access to the Tulsa Central Business District.

Average apartment occupancies within a 2 mile radius is 94.2% according to a recent Yardi Matrix report

with average rents at $585 which equates to approx 0.69 cents per square foot. Madison Park's current

average in place rent at $515 which is $70 dollars below average market.

Property Description


SALE HIGHLIGHTS

• Current in place rents $70 dollars below market according to rent Yardi Matrix

survey

• The immediate area boasts a number of local and national employers

specifically in the manufacturing & distribution area which Tulsa has indicated

being two sectors which they plan on targeting new companies

• Average area apartment occupancy of 94% within a 2 mile radius

• Existing non-recourse financing through FNMA

• Excellent unit mix of 1, 2, and 2 bed TH's which is conducive to the tenant profile

and jobs in the area

• All new 60 mil T.P.O. roofs (2014)

• All new double pane vinyl windows throughout (2014)

• Parking lotpatch, seal coat, re-stripe, and partial overlay (2014)

• All new down spouts anddrainage pads (2014)

• Updated Leasing office (2014)

Complete Highlights


2 FINANCIAL

ANALYSIS9743 East 12th Street

Tulsa, OK 74128


INVESTMENT OVERVIEW

Price $5,300,000

Price per Unit $41,406

GRM 6.6

CAP Rate 7.8%

Cash-on-Cash Return (yr 1) 11.44%

Total Return (yr 1) $240,549

Debt Coverage Ratio 1.8

OPERATING DATA

Gross Scheduled Income $800,000

Other Income $102,700

Total Scheduled Income $902,700

Vacancy Cost $0

Gross Income $902,700

Operating Expenses $492,000

Net Operating Income $410,700

Pre-Tax Cash Flow $181,951

FINANCING DATA

Down Payment $1,590,000

Loan Amount $3,710,000

Debt Service $228,749

Debt Service Monthly $19,062

Principal Reduction (yr 1) $58,598

Financial Summary


Income & Expenses


3 LOCATION

INFORMATION9743 East 12th Street

Tulsa, OK 74128


Area Map


Aerial Map


Additional Photos


Additional Photos


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Additional Photos


Additional Photos


4 SALE

COMPARABLES9743 East 12th Street

Tulsa, OK 74128


Sale Comps


5 RENT

COMPARABLES9743 East 12th Street

Tulsa, OK 74128


Rent Comparable Summary


Unit Type

Unit Description

% of

Total

Unit

Count

Size (SqFt) Market Rent

Unit Total Total SqFt

One Bedroom 40.63% 52 754 39,200 $433 $0.57

Two Bedroom/One Bath 18.75% 24 900 21,600 $480 $0.53

Two Bedroom/One and One Half Bath 29.69% 38 950 36,100 $493 $0.52

Two Bedroom/Townhouse/Two Bath 10.94% 14 1,000 14,000 $655 $0.66

Total/Average 100% 128 866 110,900 $483 $0.56

Completed Date

Improvements Rating

Location Rating

January, 1973

C

C+

128 Units

9743 East 12th Street

Tulsa, OK 74128

(918) 836-1707

Unit Type

Unit Description

% of

Total

Unit

Count



Two Bedroom/Townhouse/One and One Half Bath

100.00% 54 1,083 58,482 $746 $0.69

Total/Average 100% 54 1,083 58,482 $746 $0.69

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1983

B-

C+

98.1%

54 Units

11308 East 23rd Street

Tulsa, OK 74129

(918) 622-8800

Madison Park Apartments

Belmont Park Townhomes



Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 23.08% 48 600 28,800 $600 $1.00


Three Bedroom/One and One Half Bath 11.54% 24 825 19,800 $750 $0.91

Total/Average 100% 208 708 147,200 $650 $0.92

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1968

C-

C+

93.3%

208 Units

7625 East 21st Street

Tulsa, OK 74129

(918) 619-9038

Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 70.36% 178 649 115,450 $540 $0.83

Two Bedroom/Two Bath 13.44% 34 1,010 34,340 $715 $0.71


14.62% 37 963 35,649 $681 $0.71

Three Bedroom/Townhouse/One and One Half Bath

1.58% 4 1,222 4,888 $840 $0.69

Total/Average 100% 253 752 190,327 $588 $0.78

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1970

C+

C

93.8%

253 Units

8314 East 25th Place

Tulsa, OK 74129

(918) 270-2751

Colonial Park Apartments

Evergreen Apartments



Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 77.22% 200 700 140,096 $480 $0.69

Two Bedroom/Two Bath 19.31% 50 912 45,584 $629 $0.69

Three Bedroom/Townhouse/Two Bath 3.47% 9 1,368 12,312 $795 $0.58

Total/Average 100% 259 764 197,992 $519 $0.68

Completed Date

Improvements Rating

Location Rating

January, 1969

C+

C

259 Units

139 North Garnett Road

Tulsa, OK 74116

(918) 437-7017

Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 46.15% 96 599 57,500 $468 $0.78

One Bedroom/Townhouse/One Bath 30.77% 64 800 51,200 $547 $0.68

Two Bedroom/One and One Half Bath 23.08% 48 933 44,800 $685 $0.73

Total/Average 100% 208 738 153,500 $542 $0.74

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1975

C+

B-

91.8%

208 Units

2186 South 99th East Avenue

Tulsa, OK 74129

(918) 664-7513

Ivy Place Apartments

Lakeside Place Apartments



Unit Type

Unit Description

% of

Total

Unit

Count



Studio 2.56% 3 435 1,305 $387 $0.89

One Bedroom 35.04% 41 550 22,550 $481 $0.87


Total/Average 100% 117 747 87,455 $538 $0.72

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1968

C

C+

95.7%

117 Units

444 South Mingo Road

Tulsa, OK 74128

(918) 835-1569

Unit Type

Unit Description

% of

Total

Unit

Count



Studio 23.81% 20 500 10,000 $463 $0.93

One Bedroom 57.14% 48 700 33,600 $546 $0.78


Total/Average 100% 84 671 56,400 $542 $0.81

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1973

C+

C+

100%

84 Units

8120 East 16th Street South

Tulsa, OK 74112

(918) 663-6030

Meadowbrook Apartments

Red Fox Apartments



Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 38.71% 60 685 41,076 $528 $0.77


Total/Average 100% 155 875 135,676 $607 $0.69

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1976

C+

C+

91.6%

155 Units

717 South 101st East Avenue

Tulsa, OK 74128

(918) 835-8571

Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 22.99% 80 640 51,200 $555 $0.87



13.79% 48 900 43,200 $801 $0.89

Three Bedroom/One and One Half Bath 13.79% 48 1,000 48,000 $907 $0.91

Three Bedroom/Townhouse/One and One Half Bath

5.75% 20 1,000 20,000 $969 $0.97

Total/Average 100% 348 827 287,800 $718 $0.87

Completed Date

Improvements Rating

Location Rating

January, 1968

C+

C

348 Units

1433 South 107th East Avenue

Tulsa, OK 74128

(918) 895-5980

Ridgeview Apartments

Sierra Pointe Apartments



Unit Type

Unit Description

% of

Total

Unit

Count



Studio 15.32% 36 500 18,000 $424 $0.85

One Bedroom 25.53% 60 689 41,360 $487 $0.71



16.17% 38 1,032 39,200 $652 $0.63

Three Bedroom/Two Bath 0.85% 2 1,125 2,250 $781 $0.69

Three Bedroom/Townhouse/Two Bath 1.70% 4 1,300 5,200 $780 $0.60

Total/Average 100% 235 815 191,510 $550 $0.68

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1971

C+

C+

90.6%

235 Units

11327 East 23rd Street

Tulsa, OK 74129

(918) 437-3737

Unit Type

Unit Description

% of

Total

Unit

Count



One Bedroom 75.38% 49 609 29,841 $573 $0.94


Total/Average 100% 65 650 42,241 $593 $0.91

Completed Date

Improvements Rating

Location Rating

Occupancy

January, 1960

C

C+

92.3%

65 Units

1140 South 101st East Avenue

Tulsa, OK 74128

(918) 323-4511

Village East Apartments

Whispering Oaks Apartments

Rent Comparable By Rank


Rent Comparable By Rank


6

DEMOGRAPHICS9743 East 12th Street

Tulsa, OK 74128


1MILE 3 MILES 5 MILES

Total population 10,188 78,478 162,671

Median age 34.8 33.8 33.9

Median age (male) 31.8 31.6 32.1

Median age (female) 37.7 35.6 35.5

Total households 3,965 30,462 66,442

Total persons per HH 2.6 2.6 2.4

Average HH income $43,320 $44,911 $46,671

Average house value $104,908 $96,513 $94,812

* Demographic data derived from 2010US Census

Demographics Report


POPULATION 1MILE 3 MILES 5 MILES

Total population 10,188 78,478 162,671

Median age 34.8 33.8 33.9

Median age (male) 31.8 31.6 32.1

Median age (Female) 37.7 35.6 35.5

HOUSEHOLDS & INCOME 1MILE 3 MILES 5 MILES

Total households 3,965 30,462 66,442

# of persons per HH 2.6 2.6 2.4

Average HH income $43,320 $44,911 $46,671

Average house value $104,908 $96,513 $94,812

* Demographic data derived from 2010 US Census

Demographics Map


7 ADVISOR BIOS9743 East 12th Street

Tulsa, OK 74128


4812 E 81st ST

STE 301

Tulsa, OK 74137

T918.201.2005

C 918.850.1779

[email protected]

PROFESSIONAL BACKGROUND

As an apartment specialist with SVN OAK Realty Advisors, in Oklahoma, Kansas and Arkansas, Raymond’s primarily focus on multi-family properties since 1987 and their dispositions

for banks, private clients as well as Institutional Investors. In addition he has an extensive background in the disposition of assets for FNMA, FDIC and in the past the RTC and various

institutional investors, and banking assignments throughout the Midwest and Southwest region of the U.S. His forte is financial analysis of investments and effective marketing of

assets both regionally and nationally. Raymond has transacted over $2.5 billion of transactions, including investment sales, joint ventures, redevelopment and recapitalization

advisory assignments.

SVN OAK Realty Advisors Tulsa OK Managing Director 2016

NAI Commercial Properties Tulsa OK Principal 2000 to 2016 Commercial Real Estate Tulsa OK Investment 1997 to 2000

The Lyon Group Management CA President 1987-1997

American Village on the Lake 464 Units Tulsa OK Redfern Portfolio 1,465 Units Tulsa OK Woodlake Apartments 799 Units OKC OK One Western & Quail Ridge 150,000 SF Office OKC

Brookline Office Complex 74,000 SF OKC

Modern Bindery Industrial 100,000 SF Tulsa OK

Macco Properties 1,541 units OKC OK

Cobblestone 482 Units Tulsa OK

Case & Associates 585 Units Phoenix

American Residential 324 Units Tulsa OK

Real Source 284 & 544 Tulsa / OKC

Sterling American 682 Unit Tulsa OK

EDUCATION

Northrop School of Law, Los Angeles, CA, Juris Doctorate University of Florida, Gainesville, FL, BA Finance

MEMBERSHIPS & AFFILIATIONS

Multifamily Dispositions/Acquisitions ; Property Repositioning ;

Court Appointed Approved Receiver

Licensed Real Estate Broker, Oklahoma

SVN OAK Realty Advisor's

National Association of Realtors

RAYMOND LORD

Managing Director

Advisor Bio



4812 E 81st ST

STE 301

Tulsa, OK 74137

T918.201.2005

C918.740.6288

[email protected]

PROFESSIONAL BACKGROUND

Ben is a Principal and Managing Director at SVN OAK Realty Advisors and has over 10 years of experience specializing in

the marketing and sale of multifamily properties in the region.

Since he began his career in 2006, he has been involved in the sale of over $400 million commercial real estate

transactions and has proven himself to consistently be one of the top multifamily brokers in the region.

EDUCATION

Ben is a graduate of the University of Oklahoma with a Bachelors of Arts and Science.

BENJAMIN DAVIS

Managing Director

Advisor Bio



4812 E 81st ST, STE301

Tulsa, OK 74137

918.201.2005

www.svnoakrealty.com

All SVN® Offices Independently Owned & Operated | 2014 All Right Reserved

http://www.svnoakrealty.com/

Documents

New Sale Offering Memorandum (L) - LoopNet...Tulsa • Current in place rents $70 dollars below market according torent Yardi Matrix survey • The immediate area boasts a number of