Offering Memorandum€¦ · Owner pays water, sewer, trash, and heat. Property Overview For Sale Multifamily Property 17,418 SF | $1,490,000 400 ... naiunited.com 1706 Morningside

Offering MemorandumMorningside View Apartments

1700 Morningside Ave, Sioux City, IA 51106

For Sale

Multifamily Property17,418 SF | $1,490,000

3 Section 1Property Information

9 Section 2Financial Analysis

15 Section 3Sale Comparables

17 Section 4Rent Comparables

19 Section 5Location Information

22 Section 6Demographics

Table of Contents

For Sale


Morningside View Apartments

1700 Morningside AveSioux City, Iowa 51106

Section 1

Property Information

1

400 Gold Circle, Suite 120Dakota Dunes, SD 57049

712 224 2727 telnaiunited.com

SALE PRICE: $1,490,000

NUMBER OF UNITS: 25

CAP RATE: 7.55%

GRM: 7.35

NOI: $112,421

LOT SIZE: 0.8 Acres

BUILDING SIZE: 17,418 SF

YEAR BUILT: 1900

ZONING: NC.5

SUB MARKET: Morningside North

Well established, fully occupied apartment complex located directly across the street from Morningside College.The offering includes twenty five (25) units, eighteen (18) 1-bedrooms and seven (7) 2-bedrooms consisting of a10-plex, triplex, and 12-plex. The apartments are currently managed by NAI United Management.

Built in 1900, 1700-06 Morningside Ave is a 10-plex, nine (9) one-bedroom units and one (1) two-bedroom unit.There are five car ports in the rear of the building, a coin operated washer and dryer and storage units in thebasement for additional storage. Owner pays water, sewer, trash, and heat.

1710-12 Morningside Ave is a triplex that was built in 1918 all two-bedroom, one-bath units. 1710 ½ has beenfully renovated with new flooring, kitchen, bathroom, and paint. Please see attached photos. All utilities areseparately metered.

Built in 1920, 1714-18 Morningside Ave is a 12-plex, nine (9) one-bedroom units and three (3) two-bedroom unit.There are 4 cart ports in the rear of the building, a coin operated washer and dryer and storage units in thebasement for additional storage. Owner pays water, sewer, trash, and heat.

Property Overview

For Sale




1706 Morningside Ave Apt F Living Room 1706 Morningside Ave Apt F Kitchen

Parking for 1700-06 Morningside Ave1710-12 Morningside Ave

For Sale




1710 1/2 Morningside Ave Living Room Before Remodel 1710 1/2 Morningside Ave Living Room After Remodel

1710 1/2 Morningside Ave Kitchen After Remodel1710 1/2 Morningside Ave Kitchen Before Remodel

For Sale




1718 Morningside Ave Apt D Kitchen 1718 Morningside Ave Apt D Living Room

1718 Morningside Ave Apt D Bedroom1714-18 Morningside Ave Exterior

For Sale




1714-18 Morningside Ave.

1700-06 Morningside Ave. 1710-12 Morningside Ave.

For Sale




Section 2

Financial Analysis

2

FinancialOverview

400 Gold Circle, Suite 120 Dakota Dunes, SD 57049+1 712 224 2727naiunited.com

This portfolio investment is priced at a 7.55% CAP rate. Net Operating Income was based on

increased rent starting July 1, 2020. These 3 buildings in thie portfolio are located in a very

desirable neighborhood, directly across the street from the Morningside College campus. The

property is currently being managed by NAI United Management.

7.55% Cap Rate 100% Occupied

Great Location

Additional Storage Units

Coin Operated Laundry

Below Market Rental Rates

Income Summary Per SF

Other income $1,500 $0.09Rental Income $203,100 $11.66

Gross Income $204,600 $11.75

Expense Summary Per SF

Insurance $12,000 $0.69Property Management $16,017 $0.92Property Taxes $23,896 $1.37Repairs & Maintenance $10,000 $0.57Lawn/Snow $5,000 $0.29Trash $1,800 $0.10Electric/Gas $13,680 $0.79Water/Sewer $5,400 $0.31

Gross Expenses $87,793 $5.04

Net Operating Income $112,421 $6.45



For Sale


UnitNumber

UnitBed

UnitBath

LeaseEnd

CurrentRent

SecurityDeposit

LeaseStart

1706 Morningside Ave A 1 1 $650 $217 10/1/2003

1706 Morningside Ave B 1 1 $650 $575 9/18/2018

1700 Morningside Ave C 1 1 $620 $575 4/1/2016

1700 Morningside Ave D 1 1 $650 $525 8/15/2019

1700 Morningside Ave E 1 1 4/30/2021 $680 $680 4/10/2020

1700 Morningside Ave F 1 1 3/31/2021 $600 $600 3/5/2020

1706 Morningside Ave G 1 1 $620 $525 2/1/2019

1706 Morningside Ave H 1 1 $650 $565 1/1/2016

1700 Morningside Ave I 2 1 4/02/2021 $800 $800 4/1/2020

1706 Morningside Ave J 1 1 $620 $550 11/1/2017

1710 Morningside Ave 2 1 $800 $625 1/1/2020

1710 1/2 Morningside Ave 2 1 4/30/2021 $975 $950 5/1/2020

1712 Morningside Ave 2 1 4/30/2021 $800 $695 5/1/2018

1714 Morningside Ave 1 1 $650 $500 6/1/2013

1718 Morningside Ave A 2 1 $725 $625 11/1/2012

1718 Morningside Ave B 1 1 $650 $650 5/1/2020

1718 Morningside Ave C 1 1 $650 $550 12/1/2019

1718 Morningside Ave D 1 1 3/31/2021 $660 $620 3/10/2020

1718 Morningside Ave E 1 1 $620 $200 8/1/1995

1718 Morningside Ave F 2 1 $700 $525 4/1/2019

1718 Morningside Ave G 1 1 $695 $695 8/1/2015

1718 Morningside Ave H 2 1 $620 $525 4/1/2019

1718 Morningside Ave I 1 1 $620 $152 2/1/2002

1718 Morningside Ave J 1 1 3/31/2021 $600 $600 3/13/2020

1718 Morningside Ave K 1 1 $620 $232 2/1/2007

Totals/Averages $16,925 $13,757 400 Gold Circle, Suite 120Dakota Dunes, SD 57049


For Sale


Unit Type Count % Total Market Rent Market Rent/SF

1 bedroom 18 72.0 $700

2 bedroom 7 28.0 $950

Totals/Averages 25 100% $19,250



For Sale


Investment Overview

Price $1,490,000Number of Units 25Price per Unit $59,600Approximate Square Footage 17,418Price per Square Footage $85GRM 7.35CAP Rate 7.55%

Operating Data

Gross Scheduled Income $202,800Vacancy Cost (2.0%) - $4,056Gross Operating Income $200,544Operating Expenses - $87,793Net Operating Income $112,421Debt Service - $86,679Pre-Tax Cash Flow $25,742Cash-on-Cash Return % (yr 1) 8.64%Principal Reduction (yr 1) + $39,721Total Return (yr 1) $65,463Return on Investment % 21.97%

Financing Data

Loan Amount $1,192,000LTV 80.00%Interest Rate 4.000%Debt Service $86,679Debt Service Monthly $7,223Amortization 20



For Sale




Section 3

Sale Comparables

3

Property Address Sale Date # of Units Year Built Sale Price Price/Unit

205 Centennial Dr. North Sioux City, SD 57049

1331 S. Maple St. Sioux City, IA 51106

4351-4425 Lincoln Way Sioux City, IA 51106

260 Paxton St. Sioux City, IA 51106

$49,063

1 Sep-15 20 2008/2009 $1,500,000 $75,000

2 Feb-17 160 1968 $7,850,000

$54,583

3 Mar-18 48 1967 $2,800,000 $58,333

4 Mar-16 56 2003 $655,000

Sale

Comparables

1 2 3 4




Section 4

Rent Comparables

4


Rental

Comparables

Property Address 1 Bedroom

Glen Oaks by Broadmoor 3800 Glen Oaks Blvd Sioux City, IA 51104

Morningside Country Estates 1331 S Maple St

Sioux City, IA 51106

The Summit5701 Christy Road


Paxton Apartments 260 Paxton St.


1 $700-$900

2 $695

3 $940

4 $650-$700

1 2 3 4

2 Bedrooms

$850-$1175

$795

$850

$1,1175-$1,220



Section 5

Location Information

5

hear e

The Sioux City IA-NE-SD MSA is e pected to continue driving economic growth in the Midwest.

he growing regional and national importance of the local agricultural sector has helped eep the local economy e panding at or above the national rate, while insulating it from ma or economic slowdowns.

Recent Metro Highlights:

CF Industries just finished constructing a $4B fertilizer plant. Seaboard Triumph Foods completed a $264M pork processing plant. Interstate 29 is going from 4 lanes to 6 through the City by 2019. US 20 is 4 lanes from Chicago to Sioux City.

For the third year in a row, the trade publication Site Selection has named Sioux City as the small-size metro area with the most economic development projects.

The region has ranked in the top three nationally in its population category in a remarkable 10 of the last 12 years.

Iowa was ranked No. 1 in the country according to U.S. News World Report in its Best States rankings in 2018 which evaluates all 50 states across a range of criteria. This is the second year U.S. News has ranked states. According to the 2018 report, the rankings show how each of the 50 states perform in metrics across eight categories. Those categories include health care, education, economy, infrastructure, crime and fiscal stability, among others.




For Sale




Section 6

Demographics

6

* Demographic data derived from 2010 US Census

Population 1 Mile 3 Miles 5 Miles

Total Population 8,903 45,093 99,632

Median Age 30.6 32.8 33.7

Median Age (Male) 28.9 31.2 32.7

Median Age (Female) 33.6 34.4 34.6

Households & Income 1 Mile 3 Miles 5 Miles

Total Households 3,483 16,825 37,353

# of Persons Per HH 2.6 2.7 2.7

Average HH Income $47,492 $49,748 $52,204

Average House Value $96,913 $106,357 $114,557



For Sale


Documents

Offering Memorandum€¦ · Owner pays water, sewer, trash, and heat. Property Overview For Sale Multifamily Property 17,418 SF | $1,490,000 400 ... naiunited.com 1706 Morningside