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KW COMMERCIAL
4001 Westown Parkway
West Des Moines, IA 50266
Meadow Village Apartments
OFFERING MEMORANDUM
JARED HUSMANNDirector0: [email protected]
PRESENTED BY:
801 S. R ST. INDIANOLA, IA
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 2
OFFERING MEMORANDUM
Confidentiality & Disclaimer801 S. R ST. INDIANOLA, IA
All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness ,veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financialperformance of the property for any party’s intended use or any and all other matters.
Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived,or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independentprofessionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KWCommercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any partyregarding any proposed transaction.
All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that maybe provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with acertified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies withapplicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed byGreater Des Moines in compliance with all applicable fair housing and equal opportunity laws.
KW COMMERCIAL
4001 Westown Parkway
West Des Moines, IA 50266
PRESENTED BY:
JARED HUSMANNDirector0: [email protected]
Licensed in IOWA to sell Real Estate.
www.kwcommercial.com 3
PROPERTY INFORMATION
1 | PROPERTY INFORMATION
EXECUTIVE SUMMARY
PROPERTY DESCRIPTION
PROPERTY DETAILS
ADDITIONAL PHOTOS
1PROPERTY INFORMATIONMEADOW VILLAGE APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 4
OFFERING SUMMARY
SALE PRICE: $3,072,000
NUMBER OF UNITS: 72
CAP RATE: 8.25%
NOI: $253,504
LOT SIZE: 7.32 Acres
YEAR BUILT: 1970
BUILDING SIZE: 63,180
ZONING: Multi-Residental
MARKET: Indianola
SUBMARKET: McCord Park
PRICE / SF: $48.62
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
TOTAL HOUSEHOLDS 1,254 6,342 8,019
TOTAL POPULATION 3,154 16,904 21,457
AVERAGE HH INCOME $54,429 $65,729 $67,739
PROPERTY OVERVIEWKW Commercial is proud to offer exclusively for sale, Meadow Village. Meadow Village is located in the Indianola, IA sub-marketof Central Iowa and consists of 72 units among 6 brick-buildings. This Low-Income HAP project provides strong cashflow upona purchase and strong barriers of entry due to nature of the HUD subsidy.
PROPERTY HIGHLIGHTS• Strong Cash Return Exceeding 9% in Year One
• Government Subsidized Rental Rates
• Steady Market Occupancy of 98%
• Located in the County Seat
Executive Summary
801 S. R ST. INDIANOLA, IA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 5
PROPERTY OVERVIEWMeadow Village consists of 72 units divided evenly among 6 buildings. The unit mix is; 12-1Br Units48-2Br Units, and 12-3Br Units. The property is a low-income government subsidized property withan an average rental rate of $725 per month. All utilities are included in the residents rental amountand each unit has individual furnaces and AC units with a centralized water heater for each building.
LOCATION OVERVIEWIndianola is a city in Warren County, Iowa. Located 18 miles south of Des Moines, IA, the population is 15,489and is the county seat. The largest industries in Indianola, IA are Educational Services, Retail Trade, and Finance& Insurance with an average household income of: $55,634.
SITE DESCRIPTIONMeadow Village sits on 7.32 acres which consists of 6 buildings and a large grassy common area as well as acommunity basketball court for residents.
Property Description
801 S. R ST. INDIANOLA, IA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 6
SALE PRICE $3,072,000
LOCATION INFORMATIONBuilding Name Meadow Village Apartments
Street Address 801 S R St.
City, State, Zip Indianola, IA 50125
County/Township Warren
Market Indianola
Submarket McCord Park
Side Of Street East
Road Type Paved
Market Type Small
Nearest Highway Hwy 92
Nearest Airport DSM
BUILDING INFORMATIONBuilding Size 63,180 SF
Occupancy % 94.0
Number Of Floors 3
Average Floor Size 702 SF
Year Built 1970
Gross Leasable Area 50,544 SF
Load Factor Yes
Construction Status Existing
Framing Wood
Condition Average
Roof Shingle
Free Standing Yes
Number Of Buildings 6
PROPERTY DETAILSProperty Type Multifamily
Property Subtype Government Subsidized
Zoning Multi-Residental
Lot Size 7.32 Acres
Submarket McCord Park
PARKING & TRANSPORTATIONParking Price Per Month $0/month
Parking Type Surface
UTILITIES & AMENITIESNumber Of Elevators 0
Number Of Escalators 0
Central HVAC Individual Furnace/AC
Laundry Description OnSite
Exterior Description Brick Exterior
Interior Description
Property Details
801 S. R ST. INDIANOLA, IA 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 7
Additional Photos
801 S. R ST. INDIANOLA, IA 1 | PROPERTY INFORMATION
www.kwcommercial.com 8
LOCATION INFORMATION
2 | LOCATION INFORMATION
REGIONAL MAP
LOCATION MAPS
2LOCATION INFORMATIONMEADOW VILLAGE APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 9
Meadow Village Apartments
Regional Map
801 S. R ST. INDIANOLA, IA 2 | LOCATION INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 10
Location Maps
801 S. R ST. INDIANOLA, IA 2 | LOCATION INFORMATION
www.kwcommercial.com 11
FINANCIAL ANALYSIS
3 | FINANCIAL ANALYSIS
FINANCIAL SUMMARY
INCOME & EXPENSES
UNIT MIX SUMMARY
3FINANCIAL ANALYSISMEADOW VILLAGE APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 12
INVESTMENT OVERVIEW 2019 FORECAST
Price $3,072,000
Price per Unit $42,666
CAP Rate 8.3%
Cash-on-Cash Return (yr 1) 9.11 %
Total Return (yr 1) $144,380
Debt Coverage Ratio 1.45
OPERATING DATA 2019 FORECAST
Gross Scheduled Income $627,288
Other Income $24,418
Total Scheduled Income $651,706
Vacancy Cost $31,364
Gross Income $620,342
Operating Expenses $366,838
Net Operating Income $253,504
Pre-Tax Cash Flow $78,286
FINANCING DATA 2019 FORECAST
Down Payment $859,500
Loan Amount $2,212,500
Debt Service $175,218
Debt Service Monthly $14,601
Principal Reduction (yr 1) $66,094
Financial Summary
801 S. R ST. INDIANOLA, IA 3 | FINANCIAL ANALYSIS
Each Office Independently Owned and Operated kwcommercial.com 13
INCOME SUMMARY 2019 FORECAST PER UNIT
Gross Annual Rent $627,288 $8,712
Other Income $24,418 $339
Gross Income $651,706 $9,051
EXPENSE SUMMARY 2019 FORECAST PER UNIT
Taxes $60,438 $839
Insurance $17,339 $240
Gas/Heat $75,038 $1,042
Water/Sewer $43,748 $607
Garbage/Trash $6,193 $86
Lawn/Snow $4,826 $67
Repairs/Maintenance $96,572 $1,341
Superintendent Salary $25,047 $347
Management (6%) $37,637 $522
Gross Expenses $366,838 $5,094
Net Operating Income $253,504 $3,520
Income & Expenses
801 S. R ST. INDIANOLA, IA 3 | FINANCIAL ANALYSIS
Each Office Independently Owned and Operated kwcommercial.com 14
UNIT TYPE COUNT % TOTAL RENT
1Br/1Ba 12 16.7 $573
2Br/1Ba 2 2.8 $691
2Br/1Ba 46 63.9 $708
3Br/1Ba 12 16.7 $954
Totals/Averages 72 100% $52,274
Unit Mix Summary
801 S. R ST. INDIANOLA, IA 3 | FINANCIAL ANALYSIS
www.kwcommercial.com 15
SALE COMPARABLES
4 | SALE COMPARABLES
SALE COMPS
SALE COMPS SUMMARY
SALE COMPS MAP
4SALE COMPARABLESMEADOW VILLAGE APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 16
Subject Property801 S R St. | Indianola, IA 50125
$3,072,000Sale Price: 7.32 AcresLot Size: 1970Year Built:
63,180 SFBuilding SF: $48.62Price PSF: 8.25%CAP:
$253,504NOI:
KW Commercial is proud to offer exclusively for sale, Meadow Village. Meadow Village is located in the Indianola, IA sub-market of Central Iowa and consists of 72 unitsamong 6 brick-buildings. This Low-Income HAP project provides strong cashflow upon a purchase and strong barriers of entry due to nature of the HUD subsidy.
1$1,500,000Sale Price: 60,548 SFLot Size: 1980Year Built:
22,680 SFBuilding SF: $66.14Price PSF: 24No. Units:
$62,500Price / Unit: 8.25%CAP: 100%Occupancy:
Uplift Manor2916 30th St. | Des Moines, IA 50310
1
Sale Comps
801 S. R ST. INDIANOLA, IA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated kwcommercial.com 17
2$1,675,000Sale Price: 140,699 SFLot Size: 1978Year Built:
33,048 SFBuilding SF: $50.68Price PSF: 48No. Units:
$34,895Price / Unit: 8.51%CAP: 81%Occupancy:
Southlawn Apartments2516 Perry Park Ave. | Perry, IA 50220
2
3$1,550,000Sale Price: 109,336 SFLot Size: 1976Year Built:
71,315 SFBuilding SF: $21.73Price PSF: 60No. Units:
$25,833Price / Unit: 11.58%CAP:
1211 Gebhardt StKnoxville, IA 50138
3
Sale Comps
801 S. R ST. INDIANOLA, IA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated kwcommercial.com 18
1
2
3
SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS
Meadow Village Apartments801 S R St.Indianola, IA 50125
$3,072,000 63,180 SF $48.62 $42,667 8.25% 72
SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS CLOSE
Uplift Manor2916 30th St.Des Moines, IA 50310
$1,500,000 22,680 SF $66.14 $62,500 8.25% 24 On Market
Southlawn Apartments2516 Perry Park Ave.Perry, IA 50220
$1,675,000 33,048 SF $50.68 $34,895 8.51% 48 On Market
1211 Gebhardt StKnoxville, IA50138
$1,550,000 71,315 SF $21.73 $25,833 11.58% 60 On Market
PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS CLOSE
Totals/Averages $1,575,000 42,348 SF $37.19 $35,795 9.45% 44
Sale Comps Summary
801 S. R ST. INDIANOLA, IA 4 | SALE COMPARABLES
Each Office Independently Owned and Operated kwcommercial.com 19
801 S R St. | Indianola, IA 50125SUBJECT PROPERTY
12916 30th St.Des Moines, IA 50310
UPLIFT MANOR 22516 Perry Park Ave.Perry, IA 50220
SOUTHLAWN APARTMENTS 3Knoxville, IA50138
1211 GEBHARDT ST
Sale Comps Map
801 S. R ST. INDIANOLA, IA 4 | SALE COMPARABLES
www.kwcommercial.com 20
DEMOGRAPHICS
5 | DEMOGRAPHICS
DEMOGRAPHICS MAP
5DEMOGRAPHICSMEADOW VILLAGE APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 21
POPULATION 1 MILE 3 MILES 5 MILES
Total Population 3,154 16,904 21,457
Median Age 39.1 33.8 34.0
Median Age (Male) 32.5 31.9 32.9
Median Age (Female) 41.0 35.0 34.9
HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES
Total Households 1,254 6,342 8,019
# Of Persons Per HH 2.5 2.7 2.7
Average HH Income $54,429 $65,729 $67,739
Average House Value $171,647 $163,705 $168,636
* Demographic data derived from 2010 US Census
Demographics Map
801 S. R ST. INDIANOLA, IA 5 | DEMOGRAPHICS