arden court apartments

56 Pages·2016·2.56 MB·English

by  Le, Sean

Offering Memorandum
ARDEN COURT APARTMENTS
NEW BRIGHTON, MINNESOTA
G U N D E R S O N L I N N E L L TA L B E R G
exclusively listed by
For More Information on This Investment Opportunity
Please Contact Dan Linnell:
Dan Linnell
Mox Gunderson Josh Talberg
Vice President of Investments
AssociateVice President of Investments Senior Associate
Director National Multi Housing Group Director National Multi Housing Group Member National Multi Housing Group
952-852-9713 952-852-9770 952-852-9769
[email protected] [email protected] [email protected]
License #: 40237387 License #: 40211216 License #: 40124349
www.MFInvestmentBrokerage.com
PARRODEPNER CTOYUNRATM AEPARTMENTS
EXECMUATRIVKEE TSINUGM MTEAARMY
OFFERING PROCEDURE
Gunderson Linnell Talberg of Marcus & Millichap is pleased to offer for sale Arden Court Apartments in New Brighton, Minnesota. This
apartment community is comprised of three apartment buildings totaling 69-units.
Price: $5,416,500
Interest Offered:
Fee simple interest in Arden Court Apartments, a 69-unit apartment community located at 346 Cleveland Avenue SW in New Brighton
(Saint Paul), Minnesota.
Offering Procedures:
Purchasers wishing to make an offer should submit:
• Letter of Intent (template available upon request)
• Proof of Funds and Banking References
• Resume (which includes a list of other investment real estate owned now or in the past)
At the time the Owners select a Purchaser, they will have considered a number of factors including: price, contingency time frame(s), track
record and the perceived ability of potential purchasers to complete the contemplated transaction. Therefore, interested purchasers are
encouraged to submit as much of the above as possible with the Letter of Intent.
All communication, inquiries and requests, including property tours, should be addressed to the Marcus & Millichap listing agents. Do not
directly contact the Owners or anyone at the property.
Tour Schedule:
• Thursday, September 29th
• Tuesday, October 4th
• Thursday, October 6th
• Tuesday, October 11th
• Thursday, October 13th
• Tuesday, October 18th
Call for Offers: Thursday, October20th
3
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
ConfidentialityandDisclaimer
TheinformationcontainedinthefollowingMarketingBrochureisproprietaryandstrictlyconfidential.Itisintendedto
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property,thesizeandsquarefootageofthepropertyandimprovements,thepresenceorabsenceofcontaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
hasbeenobtainedfromsourceswebelievetobereliable;however,Marcus&Millichaphasnotverified,andwillnot
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding
these matters and makesno warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth
herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016
Marcus &Millichap. Allrightsreserved.
Non-EndorsementNotice
Marcus&Millichapisnotaffiliated with,sponsoredby,orendorsedbyanycommercialtenantorlesseeidentifiedin
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
thepurpose ofprovidingtenantlessee informationaboutthislistingtoprospective customers.
ALLPROPERTYSHOWINGSAREBYAPPOINTMENTONLY.
PLEASECONSULTYOURMARCUS&MILLICHAPAGENTFORMOREDETAILS.
ARDEN COURT APARTMENTS
New Brighton, MN
ACT ID X0510344
ARDEN COURT APARTMENTS
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01
Offering Summary
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02
Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Acquisition Financing
Growth Rate Projections
Cash Flow
MARKET COMPARABLES 03
Comparables
Rent Comparables
MARKET OVERVIEW 04
Market Analysis
Demographic Analysis
ARDEN COURT APARTMENTS
INVESTMENT
OVERVIEW
6
ARDEN COURT APARTMENTS
OFFERING SUMMARY
EXECUTIVE SUMMARY
VITAL DATA
Price $5,416,500 CURRENT YEAR1
MAJOR EMPLOYERS
Down Payment 20% / $1,083,300 CAP Rate 5.41% 6.61%
Loan Amount $4,333,200 GRM 8.05 7.19
Loan Type Conventional Net Operating Income $292,865 $357,914 EMPLOYER # OF EMPLOYEES
Interest Rate / Amortization 4.00% / 30 Years Net Cash Flow After Debt Svc 4.12% / $44,617 10.12% / $109,665
3M 18,231
Price/Unit $78,500 Total Return 11.16% / $120,926 17.45% / $189,084
Honeywell 8,000
Price/SF $103.51
Medtronic 5,163
Number of Units 69
Minnesota Dept Transportation 4,800
Rentable Square Feet 52,330
Number of Buildings 3 UPS 3,510
Number of Stories 3 Smiths Medical MD Inc 2,580
Year Built 1964 Medtronic Usa Inc 2,500
Lot Size 3.19 acre(s) Medtronic World Headquarters 2,500
Cummins Power Generation Inc 2,303
UNITMIX AViands LLC 1,900
NUMBER UNIT TYPE APPROX. Ebersen Inc 1,500
OF UNITS SQUAREFEET
Target 1,470
37 1 Bedroom 640
29 2 Bedroom 882
3 3 Bedroom 1,024
DEMOGRAPHICS
69 Total 52,330
1-Miles 3-Miles 5-Miles
2015 Estimate Pop 6,670 78,349 229,075
2010 Census Pop 6,458 75,079 219,776
2015 Estimate HH 2,806 33,049 96,489
2010 Census HH 2,698 31,448 92,058
Median HH Income $61,853 $62,266 $56,539
Per Capita Income $34,819 $36,501 $32,724
Average HH Income $81,916 $84,680 $76,615
#7
ARDEN COURT APARTMENTS
OFFERING SUMMARY
INVESTMENT OVERVIEW
Arden Court Apartments is a 69-unit extremely well-kept apartmentcomplex located inNew Brighton, Minnesota.Infact,ithasbeenowned,managed and
visited everysingle week bythesamehands-onowners forover 40years.Tosaythatithasbeenwell caredfor is anunderstatement.
Arden Court has seen significant capital investments throughout the years. Most recently they have replaced all of the original patio/balcony doors with
brand new Anderson sliding glass doors. Nearly all of the doors have been converted (they have supplies to complete the remaining). The windows have
all beenreplacedinthelast 20years.Theboilers areallbrandnew.Thepoolpumpsystem isbrandnew.Theroofshave beenmaintained.
New ownership will stepin, build abeautifulwebsite fortheproperty,updatesignage,cleanlandscaping andbeginimmediately raising rentstomarket as
well ascharginggaragerent.Over thecourseofthenext1-2yearsrentswill bebroughtto market,boosting theNetOperating Income (NOI) toover
$350,000peryear;with furtherupside throughupgradesto selectunits andcommonareas.
Arden Court Apartments is only 12 minutes from downtown Minneapolis, 5 blocks from Lake Johanna and enjoys nearby residential single family home
sales inexcessof$500,000.
Arden Court Apartments offers the rare opportunity to acquire a stabilized, well-kept apartment community at below replacement cost in the heart of one
ofthestrongestapartmentmarkets in theentire nation.
INVESTMENT HIGHLIGHTS
 Immediate Value Add Opportunity
 Current Loss-to-Lease over 9 Percent
 Additional Rent Premiums Through Strategic In-Unit and Common Area Upgrades
 Priced Well Below Replacement Value
#
8
ARDEN COURT APARTMENTS
OFFERING SUMMARY
PROPERTY OVERVIEW
Arden Court Apartments, located in New Brighton, Minnesota, consist of three main apartment
buildings built in 1965 and two enclosed garage buildings totaling 77 stalls. The apartment
buildings feature 37 one-bedroom units, 29 two-bedroom units and 3 three-bedroom units.
Arden CourtApartmentsoriginally had70 apartment units,however,oneunit hasbeenconverted
toarental/managementofficeandwasremodeledin2015.
Tenants at Arden Court Apartments enjoy the property campus which spans over 3 acres. The
buildings arecenteredaroundtheoutdoor pool and courtyard.The fenced in pool features a new
pump and heater system. Views of the pool can be enjoyed through the brand new Anderson
slidingglassdoors.LakeJohannaisjust5shortblocksfromArdenCourtApartments.
ArdenCourtiseasilyaccessibleviaInterstate35Wandisapproximately12minutestodowntown
Minneapolis. Next year the property will be insulated from I35W road noise via a brand new
Common Area Amenities
soundbarrierbeingconstructedalongtheinterstate.
 Laundry Facilities on Each Floor
 Controlled Access Entry
 Outdoor Swimming Pool | BBQ Grill Area
 Garages Available
Unit Amenities
 1-, 2-, and 3-Bedroom Apartment Homes
 Large Balconies or Patios
 New Sliding Glass Patio/Balcony Doors
#9
ARDEN COURT APARTMENTS
OFFERING SUMMARY
PROPERTY SUMMARY
THE OFFERING PROPOSED FINANCING
Property Arden Court Apartments First Trust Deed
Price $5,416,500 Loan Amount $4,333,200
Property Address 346 Cleveland Ave SW,New Brighton,MN Loan Type Proposed New
Assessor’s Parcel Number 32-30-23-14-0003 Interest Rate 4.00%
Zoning Multifamily Amortization 30 Years
SITE DESCRIPTION Loan Term 10 Years
Number of Units 69 Loan to Value 80%
Number of Buildings 3 Debt Coverage Ratio 1.18
Number of Stories 3
Year Built/Renovated 1965
Rentable Square Feet 52,330
Lot Size 3.18 Acres
Type of Ownership Fee Simple Interest
Parking 77 Garages: 39 Stalls & 38 Stalls | Off Street | Surface Lot
Landscaping Mature
Topography Level
UTILITIES
Water Owner
Phone Tenant
CONSTRUCTION
Foundation Concrete
Framing Wood
Exterior Brick
Parking Surface Asphalt
Roof Flat
MECHANICAL
HVAC New Boilers | New Boiler and Pump for Pool
Wiring Standard
#
10