Warwood Apartments- Offering Memo

WARWOOD APARTMENTSEXCEPTIONAL INVESTMENT OPPORTUNITY

St. Louis, Missouri

Confidential Offering Memorandum

EXECUTIVE SUMMARY

PROPERTY OVERVIEW

MARKET OVERVIEW

OPERATING INFORMATION

F O R M O R E I N F O R M AT I O N, C O N TA C T:

3

7

9

15

TABLE OF CONTENTS

LICENSING DISCLOSURE

AUCTION.COM REAL ESTATE BROKER LICENSE NO.: AL 000094404-0 AK 2207 AR PB00075836 AZ Licensed as REDC CO586378000 CA 01093886 CO EL100028410 CT Scott Reid

REB.0790370 DC LL98370409 DE RB-0020326 FL No. CQ1031187 GA H-61904 HI RB-20620 IA F05393000 ID LC38200 IN RC51100011 IL 478.012986 KS CO00001663 KY 75140 LA

BROK.0995681059-CORP ME AC90602657 MD 652906 MA 7990 MI 6505355610 MN 40040398 MS 19897 MO 2008027754 MT RRE-BRO-LIC-32620 NE 20140595 NV B.1001472.

CORP NH 068879 NJ 1110662 NM 07791 NY 10991207955 NC C20400 ND 2918 OH REC.2012003219 OK 157084 OR 201102068 PA RB067584 RI REC.0005008 SC 15690 SD

15963 TN 262679 TX 0580708 UT 7923219-CN00 VT 083.0078393-MAIN VA 0226020092 WA 9943 WI 936870-091 WV 004930-00 WY 189700. AUCTION FIRM LICENSE NO.: AL C17

GA AUC002976 IN AC 31100002 LA AB-328 MA 03058 MS 1203F NC 8781 ND Online Auction OH Auction Mediation Company PA AY002136 SC 3933 TN Online Auction VA 2908000750

WA 2370 WI Registered Firm 384-53 WV Online Auction PRINCIPAL AUCTIONEER MARK P. BULEZIUK LICENSE NO.: AL 5097 IN AU10900036 KY RP3242 LA 1733 ME AUC1527 MN Hennepin

County 2711079 NH 5058 NC 8336 PA AU005557 RI 5163 TX 16063 VT 057.0068633 WI Registered Auctioneer 2585-52. WWW.AUCTION.COM 1 Mauchly, Irvine, CA 92618 (800) 499-6199.

January 2015

LIMITING CONDITIONS

The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the acquisition of the property described herein (the “Property”) and is not to be

used for any other purpose or made available to any other person without the express written consent of the owner (the “Owner”) or Auction.com. This Offering Memorandum contains selected infor-

mation pertaining to the Property and does not purport to be all-inclusive or to contain all of the information which prospective purchasers may desire. The material in this Offering Memorandum has

been compiled by Auction.com from sources considered reliable and has not been independently verified by Auction.com. Summaries contained herein of any legal documents are not intended to be

comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. Qualified prospective purchasers should conduct appropriate

due diligence and review all legal documents, which are available from Auction.com, and make their own conclusions. Additional information and an opportunity to inspect the Property will be made

available to interested and qualified prospective purchasers. Neither the Owner nor Auction.com, nor any of their respective officers, agents or employees, have made any representation or warranty,

expressed or implied, as to the accuracy or completeness of this Offering Memorandum, or any additional verbal or written information provided. This Offering Memorandum is subject to prior place-

ment, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property. Each prospective purchaser is to rely

solely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. No liability is assumed by and none shall be asserted against the Owner

or Auction.com on account of any statements, descriptions or information, or projections or estimates, contained herein or omitted here from. The Owner reserves the right, at its sole discretion, to

reject any or all offers to acquire the Property and/or to terminate discussions with any prospective purchaser, at any time, with or without notice or cause. The Owner expressly reserves the right to

sell the Property on any basis or using any criteria. In addition, the Owner expressly reserves the right, at its sole discretion, to withdraw, supplement, change, amend, bifurcate, or reduce the Offering

Memorandum and/or the Property.

JOHN NESBITTAuction.com

949-208-8505

[email protected]

GLORIA BOYERWorth Clark Realty

MO RE Lic No: 2013028234

314-494-2589

[email protected]

ALEXANDRA BRODYAuction.com

305-503-2654

[email protected]

WHERE REAL ESTATE IS MOVING

3


EXECUTIVE SUMMARY

Auction.com and Worth Clark Realty are pleased to present the opportunity to acquire the Warwood Apartments, this 95-Unit 8 story Multifamily high-rise was constructed in 1973, located just 6 minutes from the historic Central West End and 5 minutes from the Delmar Loop, fun and adventure is just a few miles away. Students at Washington University and Saint Louis University would enjoy a brisk 10 minute commute to school and social activities. Close to grocery stores and public transportation residents enjoy Laundry on every floor, 2 elevators as well as a recreational room with a pool table and work out equipment. With attractions just 10 minutes away enjoy the Missouri History Museum, the Muny, Saint Louis Art Museum, Saint Louis Science Center, James S. McDonnell Planetarium, Saint Louis Zoo, The Boathouse Restaurant, The Jewel Box, Athletic Fields, Bike Tours & Rentals, Bird Watching, Boating, Tennis Center Courts, Fishing, Highlands Golf & Tennis Center and the Steinberg Skating Rink.

The staff are extremely self-sufficient and dedicated; the maintenance man has been with the building over 12 years and would be an asset to someone who purchases the building. The sale also includes 1.487 Acres of vacant land which is zoned Multifamily located at 4947 Aldine Place.

OFFERING OVERVIEW

PROPERTY SNAPSHOT

Property Warwood Apartments

Address 1610 North Kingshighway Boulevard

City, State St. Louis, MO

Type Multifamily

Occupancy 94.0%

Square Feet 149,475

Number of Units 95

Number of Stories Eight

Year Built/Renovated 1973

4


EXECUTIVE SUMMARY

Highlights:

• Across from Wohls Recreation Center (Sherman Park)• 95 units total, 59 studio units with 425 sqft and 36 1 bedroom units with 525 sqft. • Studios rent for $450 (including all utilities compared to $550 in the neighborhood )• 1 Bedrooms rent for $499 (including all utilities compared to $599 in the neighborhood )• Located on a main bus line• Close to St. Louis Children’s Hospital• Washington University School of Medicine• Barnes Jewish Hospital• Kindred Hospital

Upgrades:

• All units painted in 2013• All new GE air conditioners installed in 2013 • All tubs resurfaced 2013• Floors stripped and waxed 2013• New Hot water tanks 2013• New Camera System installed in 2013, ability to watch live feed from desktop or smartphone anywhere in the world. • New Fire Panel in compliance to 2015 city/state code• New Cables and hoists for Elevators 2013• All appliances are fairly new – Ranges and Refrigerators• New building air conditioner with new cage installed on first floor exterior 2014 • Upgraded generators will maintain power if the rest of the city goes down 2014

INVESTMENT HIGHLIGHTS

5


EXECUTIVE SUMMARY

AREA MAP

Warwood Apartments

6


EXECUTIVE SUMMARY

THE OFFERING PROCESS

Auction.com will conduct an auction sale process on the website www.auction.com. Prospective bidders will execute a confidentiality agreement, and then be given access to an online archival bank of information.

Prospective bidders will be required to register with Auction.com to bid. The system will automatically total the amount necessary for deposit and total proof of funds. If you are the winning bidder, your bidder deposit may be applied toward the earnest money deposit. If you are a non-winning bidder, your bidder deposit will be refunded following the auction.

Due diligence materials are available to qualified prospective bidders via an electronic data room hosted by www.auction.com. Conduct your due diligence by visiting the secure data vault. All due diligence must be conducted prior to signing the contract. You may contact Auction.com concerning any due diligence questions.

In order to participate in an auction, the Seller requires bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid for those assets they wish to bid on. Such liquidity must be in the form of cash, or cash equivalents, and must be available immediately without restriction. Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable only if it is already closed in place, has undrawn capacity, and may be funded immediately without bank approval. Loan pre-approval letters, term sheets, and the like, where the loan would be collateralized by the property up for auction and funded at escrow closing, are NOT acceptable. Capital call agreements, investor equity commitments, and the like, are evaluated on a case-by-case basis. The acceptance of any proof of funds documents are made at the sole and absolute discretion of Auction.com.

During the live auction period, place your bid amount and click BID NOW. Feel free to contact Auction.com before or during the auction process with any questions.

CLOSING

Following the auction, the winning bidder will be contacted by phone and email to go over specifics of the sale, including the execution of the purchase agreement and all documentation involved in the purchase. The winning bidder must be available by telephone within two hours of the sale. More information can be found on the auction.com website: http://www.auction.com/auction-process/commercial.php

CONTACT INFORMATION

All questions should be directed to the individuals referenced below.

SALES PROCESS

Auction.com Important Dates

Warwood Apartments - Property ID #: B152-117Auction Start Date March 24, 2015

Auction End Date March 26, 2015

TOUR DATES

On-Site Tour Date #1 Thursday, March 12th from 10:00AM to 1:00PM

On-Site Tour Date #2 Thursday, March 19th from 10:00AM to 1:00PM


949-208-8505

[email protected]


MO RE Lic No: 2013028234

314-494-2589

[email protected]


305-503-2654

[email protected]

7


PROPERTY DESCRIPTION


Property Warwood Apartments

Address 1610 North Kingshighway Boulevard

City, State St. Louis, MO

Parcel/Area APN: 44890602000/ 3.4 acres

BUILDING DATA

Year Built/Renovated 1973

Number of Units 95

Number of Stories Eight

Square Feet 149,475

Occupancy 94.0%

Unit Mix

The sale also includes an adjacent 1.483 acres of vacant Zoned multifamily.

SITE DATA

Type # UnitsEfficiency units (Studios) 59

1 BD / 1 BA 36

8



AERIAL VIEW

Dr. Martin Luther King Drive

No

rth

Eu

clid

Ave

nu

e

Nor

th K

ingsh

ighw

ay

Blv

d

Warwood Apartments

1.483 acre

Vacant Zoned

Multifamily

Wohls Recreation Center

(Sherman Park)

St. Louis University School of Medicine

9


MARKET OVERVIEW

Warwood Apartments (“Property”) is located at 1610 North Kingshighway Boulevard in St. Louis, Missouri. St. Louis is an independent city that sits outside any county boundaries, and is the principal city of the St. Louis Metropolitan Statistical Area (“metro”) in eastern Missouri. In addition to the city, the St. Louis metro encompasses 15 counties in Missouri and Illinois.

Strengths

• Metro employment is recovering steadily and is forecast to surpass its prior peak sometime this year

• Diverse employment base with growth projected in most major economic sectors

• Metro is home to nine Fortune 500 Company headquarters

• Effective apartment rents are at all-time high in market and St. Louis City North submarket

MARKET OVERVIEW

St. Louis, Missouri

10


MARKET OVERVIEW

METRO POPULATION GROWTH TO PROCEED AT MODEST PACE

The St. Louis metro, with 2.8 million residents, is the 19st largest population center in the US. Like the rest of the Midwest, the metro has seen only modest population growth in recent years, falling short of the US average pace since 2000. The metro is projected to average 0.1% annual growth through 2019.

The city of St. Louis is home to about 11% of the metro population. City residency has been declining since 2000, but the ex-migration has slowed to a mild 0.2% annually since 2010. Nielsen Claritas projects a further contraction of 0.1% per annum, working out to a decline of about 1,100 people through 2019.

Population is also contracting in the neighborhood surrounding the Property. Currently, about 335,000 people live within a 5-mile radius of the Property, but the area is forecast to lose residents at a pace matching the projected city rate, and an even sharper decline is projected in the blocks closest to the Property (1-mile radius).

METRO INCOMES APPROACHING US LEVEL

St. Louis metro incomes, at $70,000, are below the US average. Metro incomes have grown by 1.5% annually since 2000 and are forecast to keep up the established pace through 2019, ahead of the US projected pace. Growth of this magnitude would narrow the gap between metro and US incomes to less than 1% by 2019, according to Nielsen Claritas.

Incomes are further constrained in St. Louis city and the blocks surrounding the Property, though forecast to grow ahead of the projected metro pace over the next five years.

Area 2000 2010a 2014e 2019f 2000-2010a 2010-2014e 2014-2019f

W arwood Apartments : 5 mile ring 366,547 336,984 334,844 333,570 -0.8% -0.2% -0.1%

W arwood Apartments : 3 mile ring 154,772 135,564 133,297 131,392 -1.3% -0.4% -0.3%W arwood Apartments : 1 mile ring 23,571 19,156 18,384 17,658 -2.1% -1.0% -0.8%S t. Louis , MO 348,203 319,294 317,322 316,230 -0.9% -0.2% -0.1%S t. Louis Metro 2,721,493 2,837,592 2,848,641 2,864,817 0.4% 0.1% 0.1%Mis s ouri 5,595,288 5,988,927 6,039,326 6,102,328 0.7% 0.2% 0.2%T he United S tates 281,421,942 308,745,538 317,199,353 328,309,464 0.9% 0.7% 0.7%

S ource: US C ensus , Nielsen C laritas

P opulation L evel Annual G rowth

Area 2000a 2014e 2019f 2000-2014a 2014-2019f 2000a 2014e 2019f

W arwood Apartments : 5 mile ring $42,490 $52,276 $56,788 1.5% 1.7% 3.2% 5.5% 6.6%

W arwood Apartments : 3 mile ring $35,285 $41,240 $44,470 1.1% 1.5% 2.2% 3.5% 4.1%W arwood Apartments : 1 mile ring $30,765 $34,207 $37,514 0.8% 1.9% 1.1% 1.4% 1.8%S t. Louis , MO $37,012 $47,137 $51,253 1.7% 1.7% 1.6% 3.8% 4.6%S t. Louis Metro $56,945 $69,966 $75,234 1.5% 1.5% 4.1% 8.4% 10.2%Mis s ouri $49,894 $62,828 $65,201 1.7% 0.7% 3.0% 6.2% 7.4%T he United S tates $56,644 $71,320 $75,940 1.7% 1.3% 4.6% 9.0% 10.7%

S ource: US C ensus , Nielsen C laritas

Average Hous ehold Income Annual G rowth % HHs with Inc . > $150K

St. Louis Skyline

11


MARKET OVERVIEW

METRO EMPLOYMENT GROWTH IS STEADILY PROGRESSING

The St. Louis metro posted employment growth of 1.2% last year, an improvement over the prior decade. Despite overall job growth being flat since 2005, payrolls have expanded in each of the last five years and total employment is up 3.6% from the 2009 trough. The metro currently supports more than 1.3 million jobs.

Moody’s Economy.com projects 3% growth this year, moderating to an annualized 1.4% through 2019, on par with the US projection. Growth of this magnitude projects a new employment peak in the current year and about 94,300 new jobs through 2019.

About 18% of the metro’s jobs are based in the city of St. Louis. City employment growth outpaced the metro over the last decade at 0.3% per annum. Payroll growth is forecast to ramp up to 1.2% annually in the city, slightly behind the metro and US projection.

Metro unemployment was 6% as of 4Q’14, above the current US rate. The metro unemployment rate is forecast to drop to 4.6% by 2019, according to Moody’s Economy.com.

The St. Louis metro has a diverse employment base, with no one sector significantly overweight. Growth is forecast in nearly all metro sectors over the next five years.

The metro’s largest sector is Trade, Transportation, and Utilities (TTU), which includes all retail jobs. Major TTU employers include Walmart, Schnuck Markets, and McDonald’s. TTU jobs are forecast to grow by 0.7% annually through 2019.

Professional and Business Services jobs was one of the metro’s fastest-growing sectors since 2010, improving by 2.7% annually. These jobs are also forecast to account for the largest share of the metro’s new positions over the next five years. About 27,500 jobs are projected in this sector, equating to 29% of the anticipated total, according to Moody’s Economy.com. The metro is home to nine Fortune 500 company headquarters, including Express Scripts, Monsanto, and Emerson Electric, illustrating the importance of the sector.

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2005-2014 2014 2015 2015-2019

Employment Growth

St. Louis city (MO) St. Louis Metro United States

Source: BLS, Moody's

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

Sector Jobs Forecast

New Metro Jobs Over Next 5 Years

(2015-2019)

Current Unemployment 6%

Forecast 2019 Unemployment 4.6%

Source: BLS, Moody's Economy.com

Emerson Electric HQ - St. Louis, MO Monsanto HQ - St. Louis, MO

12


MARKET OVERVIEW

Financial Activities also improved by 2.7% annually over the last five years, and is now the metro’s most overweight sector. Financial Activities jobs are forecast to grow by 1.3% per annum through 2019, with about 5,800 new positions projected.

The Education and Health Services sector encompasses three of the metro’s top five employers. The sector is forecast to grow by 1.7% annually through 2019, translating to 21,000 new jobs, or more than 22% of the total projected.

In addition to the sectors discussed above, strong improvement is forecast in the Construction, Information, and Leisure and Hospitality sectors. The only sector forecast to decline is Other Services, with a projected contraction of 0.4% annually through 2019, according to Moody’s Economy.com.

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

Metro Sector Employment Weighting

USA St. Louis MetroSource: BLS

Washington University - St. Louis, MO

B J C Healthcare 24,082B oeing Defense, S pace & S ecurity 15,000W ashington Univers ity in S t. Louis 14,170S cott Air F orce B ase 13,000S S M Health C are S ystem 12,697Archdiocese of S t. Louis 11,207W almart S tores Inc. 10,600S chnuck Markets Inc. 10,553Mercy Health C are 10,247McDonald's C orp. 9,500S t. Louis Univers ity 7,495AT &T 7,100W ells F argo 5,300E nterprise Holdings 4,830E dward J ones 4,813Ameren C orp. 4,408Monsanto C orp. 4,200E xpress S cripts Inc. 4,188C itiMortgage Inc. 4,000Dierbergs Markets 4,000

C ompany R ankingE xpress S cripts Holding 20E merson E lectric C o. 121Monsanto C ompany 197C entene C orporation 251R einsurance G roup of America, Incorporated 274P eabody E nergy C orporation 365Ameren C orporation 379T he J ones F inancial C ompanies ,L.L.L.P . 444G raybar E lectric C ompany, Inc. 449

S ource: F ortune Magazine, May 2014

Major E mployers in the S t. L ouis Metro

Fortune 500 C orporations Headquartered in the S t. L ouis Metro

S ources : S t. Louis B us ines s J ournal, 2014 & 2012

13


MARKET OVERVIEW

ST. LOUIS APARTMENT MARKET

The St. Louis apartment market encompasses about 120,450 units, according to Reis. New units have been delivered each year for over two decades, increasing market inventory by about 8% since 1994. Reis reports about 460 market-rate units currently under construction, all in the city of St. Louis.

Absorption has been robust over the last five years, dwarfing new deliveries. More than 7,400 units were taken up between 2010 and 2014, after negative performance from 2008-2009. In response, vacancy declined by 480 basis points (bps), falling from a cyclical peak of 9.2% in 2009 to 4.4% at 4Q’14.

Effective apartment rents have increased in each of the last five years, reaching an all-time high of $755 per unit at year-end 2014. In general, St. Louis rents have performed well, declining less than 1% from peak to trough during the recession.

ST. LOUIS CITY NORTH APARTMENT SUBMARKET

The St. Louis City North apartment submarket contains about 18,740 apartment units, or 15% of the St. Louis market total, according to Reis. An average of 200 units have been completed annually over the last decade, with 2010 uncharacteristically light. Reis reports about 460 units are under construction, representing the only market-rate units underway in the St. Louis market.

Submarket apartment absorption has been positive in each of the last five years, allowing vacancy to slide from its 2009 peak of 11.1%. The vacancy rate dropped 540 bps to a bottom of 5.7% in early 2014, but ticked up as deliveries outpaced demand, reaching 6.3% at year-end 2014. The current rate is 190 bps above the St. Louis market average. Reis projects vacancy to rise to 7.2% through 2019 as forecast demand falls below the pace of projected new deliveries.

Effective rents in St. Louis City North have risen steadily since 2010, and measured $867 per unit at 4Q’14, a submarket high and a gain of 3.2% year-over-year. Reis forecasts rents to continue rising by 2.3% per annum, projecting rents to $971 per unit by 2019. Currently, submarket effective rents command a 15% premium over the St. Louis market average.

Source: Reis

Relative Size

(Market/Submarket)

St. Louis

Apartment Market

St. Louis City

North

Apartment Submarket

15.6%

Source: CoStar

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-400

-200

0

200

400

600

800

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Va

ca

ncy

(%

)Un

its

St. Louis City North Apartment Submarket Trends (4Q'14)

Completions AbsorptionVacancy (%)

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

0

200

400

600

800

1000

1200

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

YO

Y C

ha

ng

e (

%)R

en

t p

er U

nit

St. Louis City North

Apartment Submarket Rent Trends (4Q'14)

Effective Rent % Change

14


MARKET OVERVIEW

WARWOOD APARTMENTS - COMPETITIVE PROPERTIES

Comparable Criteria: Competitive properties were selected among apartment properties of 15 stories or less, having between 50 and 200 units, within a five mile radius of the Property.

Twenty comparable properties were identified. All but one the competitors were built between 1960 and 1978 and most are Class B/C.

Most properties are a mix of one- and two-bedroom units, but several contain studios, and one property, Williamsburg Square, offers three-bedroom units. Unit sizes range from 400 sf to 1,840 sf.

The competitors have an average weighted occupancy of 96.9%. One property reports vacancy of 13%, but most are less than 5% vacant.

Average rents are in a wide range from $448 per unit to $1,098 per unit. The lowest listed rent is $405for a one-bedroom unit at Rolling Hills, while the highest listed is $1,284 for a two-bedroom unit at West End Terrace.

Property Name Street Address CitySize

(units)Year built Floors Class

Rent/Unit ($)

Vacancy Rate (%)

Warwood Apartments 1610 North Kingshighway Blvd St. Louis 96 NA 8 NA NA NAWaterman Apartments 5132 Waterman Ave St. Louis 60 1978 3 BC $563 0.0Soho Towers 5438 Delmar Blvd St. Louis 88 1960 4 BC $577 3.4West End Terrace 4466 Greenwich Ct St. Louis 195 1977 2 A $1,098 3.6Jackson Arms 4482 Lindell Blvd St. Louis 104 1965 14 BC $662 3.8Park 44 4444 W Pine Blvd St. Louis 147 1967 1 BC $830 0.7Lucas Heights Village Apts Ph.I 3114 Franklin Ave St. Louis 192 1978 2 BC $537 1.6Park Clayton 6605 Clayton Ave St. Louis 104 1970 4 A $793 6.7Purdue Park 1104 Midland Blvd University City 52 1962 1 BC $600 5.8The Railton 205 N 18th St St. Louis 104 1973 14 BC $553 1.0Caroline Apartments 2729 Park Ave St. Louis 112 1981 2 BC $629 4.5Williamsburg Square 7477 Ahern Ct University City 58 1962 2 BC $1,088 5.2Bermuda Heights Apartments 7738 Springdale Dr Normandy 69 1970 3 BC $671 13.0Normandy Villa 4335 Walker Ln St. Louis 78 1965 2 BC $698 1.3Peppertree 2111 Bellevue Ave Maplewood 60 1970 2 BC $456 1.7Hafner Court Apartments 8077 Hafner Ct St. Louis 80 1965 2 BC $574 1.3Rolling Hills 8869 Maya Ln Jennings 128 1965 2 BC $455 0.0Lackland Plaza 8432 Plazarock Ct St. Louis 80 1965 2 BC $548 6.3River Trails 849 Rivertrail Ct St. Louis 96 1968 3 BC $525 4.2Elta Rose Apts 2653 Eltarose Dr St. Louis 80 1965 3 BC $448 5.0Richwood Terrace 2471 Laclede Station Rd Maplewood 163 1969 2 BC $550 0.6

Source: Reis

Comparable Properties - Warwood Apartments

15



2014 P&L STATEMENT


Revenue:

Residential Units:

Occupancy % 94.74%

Occupancy Units 90

Gross Rent $467,136

LESS: Rent Abatement / Loss to Lease $0

Net Base Rent $467,136

PLUS: Laundry Income @ $450/Mo. $5,400

Net Residential Revenue $472,536

Less: Collection Loss @ 4.00% ($18,901)

Effective Gross Income $453,635

Operating Expenses:

Auto Local Transportation $1,238

Business Promotion $50

Expenses $2,362

Insurance $6,530

Landscaping $300

Legal & Professional Fees $10,338

Refurbishment, Maintenance and Repairs $37,402

Other Taxes $385

Outisde Services $0

Payroll $97,857

Postal Courier $238

RE Taxes $5,039

Tenant Screening $1,887

Utilities - Gas $11,692

Utilities - Power $62,884

Utilities - Trash $2,472

Utilities - Water & Sewer $19,320

Management Fee $0

Total Operating Expenses ($259,994)

LESS: Replacement Reserve @ $250/Unit ($23,750)

Total Expenses & Reserve ($283,744)

Net Operating Income $169,891

NOI Margin (vs. EGI) 37.45%

Warwood Apartments P&L Statement 2014

16



PRO-FORMA

Revenue:

Residential Units:

Occupancy % 100.00%

Occupancy Units 95

Gross Rent $648,168

LESS: Rent Abatement / Loss to Lease $0

Net Base Rent $648,168

PLUS: Laundry Income @ $450/Mo. $5,400

Net Residential Revenue $653,568

Less: Vacancy - 5% ($32,678)

Effective Gross Income $620,890

Operating Expenses:

Auto Local Transportation $1,238

Business Promotion $50

Expenses $2,362

Insurance $6,530

Landscaping $300

Legal & Professional Fees $10,338

Materials Building Supplies $37,402 Refurbishment expenses

Other Taxes $385

Outisde Services $0

Payroll $97,857

Postal Courier $238

RE Taxes $5,039

Tenant Screening $1,887

Utilities - Gas $11,692

Utilities - Power $62,884

Utilities - Trash $2,472

Utilities - Water & Sewer $19,320

Management Fee @ 3.00% $19,607

Total Operating Expenses ($279,601)

LESS: Replacement Reserve @ $250/Unit ($23,750)

Total Expenses & Reserve ($303,351)

Net Operating Income $317,539

NOI Margin (vs. EGI) 51.14%

Type No of Units Market RentStudios 59 550.00$ 32,450.00$ 1 Bedroom 36 599.00$ 21,564.00$

Monthy Poteltial 54,014.00$ Yearly Potential 648,168.00$

17



RENT ROLL

Apartment # Tenant Name Month Rent Lease end date1001 Vacant1002 Vacant1003 Occupied $499.00 4/30/20151004 Occupied $450.00 2/28/20152001 Occupied $450.00 5/31/20152002 Occupied $450.00 11/30/20152003 Occupied $499.00 2/28/20152004 Occupied $450.00 7/31/20152005 Occupied $475.00 7/31/20152006 MODEL APARTMENT $0.002007 Occupied $499.00 2/28/20152008 Occupied $450.00 11/30/20152009 Occupied $499.00 9/30/20152010 Occupied $450.00 8/31/20152011 Occupied $475.00 4/1/20152012 Occupied $450.00 7/31/20152013 Occupied $375.00 7/31/20153001 Vacant3002 Occupied $425.00 6/30/20153003 Occupied $499.00 12/31/20153004 Occupied $450.00 4/30/20153005 Occupied $475.00 10/31/20153006 Occupied $450.00 6/30/20153007 Occupied $499.00 8/31/20153008 Occupied $475.00 9/30/20153009 Occupied $499.00 2/28/20153010 Occupied $450.00 7/31/20153011 Occupied $475.00 7/31/20153012 Occupied $375.00 6/30/20153013 Occupied $375.00 8/31/20154001 Occupied $450.00 1/31/20164002 Occupied $400.00 month to month4003 Occupied $499.00 7/31/20154004 Occupied $375.00 11/30/20154005 Occupied $270.00 5/31/20154006 Vacant4007 Occupied $475.00 7/31/20154008 Occupied $375.00 6/30/20154009 Occupied $499.00 2/28/20154010 Occupied $375.00 6/30/20154011 Occupied $499.00 1/31/20164012 Vacant4013 Occupied $450.00 7/31/2015

FEBRUARY 2015 RENT ROLLApartment # Tenant Name Month Rent Lease end date

1001 Vacant1002 Vacant1003 Occupied $499.00 4/30/20151004 Occupied $450.00 2/28/20152001 Occupied $450.00 5/31/20152002 Occupied $450.00 11/30/20152003 Occupied $499.00 2/28/20152004 Occupied $450.00 7/31/20152005 Occupied $475.00 7/31/20152006 MODEL APARTMENT $0.002007 Occupied $499.00 2/28/20152008 Occupied $450.00 11/30/20152009 Occupied $499.00 9/30/20152010 Occupied $450.00 8/31/20152011 Occupied $475.00 4/1/20152012 Occupied $450.00 7/31/20152013 Occupied $375.00 7/31/20153001 Vacant3002 Occupied $425.00 6/30/20153003 Occupied $499.00 12/31/20153004 Occupied $450.00 4/30/20153005 Occupied $475.00 10/31/20153006 Occupied $450.00 6/30/20153007 Occupied $499.00 8/31/20153008 Occupied $475.00 9/30/20153009 Occupied $499.00 2/28/20153010 Occupied $450.00 7/31/20153011 Occupied $475.00 7/31/20153012 Occupied $375.00 6/30/20153013 Occupied $375.00 8/31/20154001 Occupied $450.00 1/31/20164002 Occupied $400.00 month to month4003 Occupied $499.00 7/31/20154004 Occupied $375.00 11/30/20154005 Occupied $270.00 5/31/20154006 Vacant4007 Occupied $475.00 7/31/20154008 Occupied $375.00 6/30/20154009 Occupied $499.00 2/28/20154010 Occupied $375.00 6/30/20154011 Occupied $499.00 1/31/20164012 Vacant4013 Occupied $450.00 7/31/2015

FEBRUARY 2015 RENT ROLL

5001 Occupied $400.00 9/30/20155002 Occupied $400.00 5/31/20155003 Occupied $499.00 9/30/20155004 Occupied $450.00 6/30/20155005 Occupied $499.00 1/31/20165006 Occupied $475.00 4/30/20155007 Occupied $499.00 10/31/20155008 Occupied $375.00 6/30/20155009 Occupied $475.00 12/31/20155010 Occupied $425.00 1/31/20165011 Occupied $475.00 5/31/20155012 Occupied $450.00 1/31/20165013 Occupied $450.00 1/31/20166001 Occupied $450.00 1/31/20166002 Occupied $450.00 7/31/20156003 Occupied $499.00 6/30/20156004 Occupied $400.00 10/31/20156005 Occupied $499.00 1/31/20156006 Occupied $450.00 6/30/20156007 Occupied $499.00 7/31/20156008 Occupied $450.00 1/31/20166009 Occupied $499.00 3/31/20156010 Occupied $375.00 5/31/20156011 Occupied $475.00 5/31/20156012 Occupied $450.00 1/31/20156013 Occupied $450.00 1/31/20157001 Occupied $450.00 6/30/20157002 Occupied $450.00 11/30/20157003 Occupied $499.00 6/30/20157004 Occupied $450.00 6/30/20157005 Occupied $499.00 1/31/20157006 Occupied $450.00 6/30/20157007 Occupied $499.00 5/31/20157008 Occupied $475.00 12/31/20157009 Occupied $475.00 6/30/20157010 Occupied $375.00 5/31/20157011 Occupied $475.00 6/30/20157012 Occupied $375.00 6/30/20157013 Occupied $375.00 1/31/20158001 Occupied $375.00 3/31/20158002 Occupied $450.00 2/28/20158003 Occupied $499.00 9/30/20158004 Occupied $375.00 3/31/20158005 Occupied $499.00 9/30/20158006 Occupied $450.00 3/31/20158007 Occupied $499.00 5/31/20158008 Occupied $400.00 9/30/20158009 Occupied $499.00 8/31/20158010 Occupied $375.00 5/31/20158011 Occupied $475.00 6/30/20158012 Occupied $400.00 3/31/20158013 Occupied $375.00 6/30/2015

$39,921.00

No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to omissions, change of price, rental or other condition, without notice, and to any listing conditions, imposed by the owner.

Confidential Offering Memorandum


949-208-8505

[email protected]


MO RE Lic No: 2013028234

314-494-2589

[email protected]


305-503-2654

[email protected]

Documents

Warwood Apartments- Offering Memo