AVEY COURT APARTMENTS OFFERING MEMORANDUM · Avey Court Apartments is a newly constructed apartment...

(503) 223 3171 • norris-stevens.com • 12503 SE Mill Plain Blvd • Suite 260 • Vancouver, WA 98684

DAVID C. CHATFIELDMULTI-FAMILY INVESTMENT BROKER

[email protected]

CAMERON MERCERSENIOR MULTI-FAMILY INVESTMENT BROKER

DIRECTOR OF APARTMENT BUSINESS DEVELOPMENT

[email protected]

OFFERING MEMORANDUM

INVESTMENT REAL ESTATE SERVICES


Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

APRIL 2020

AVEY COURT APARTMENTS13609 NE 28TH STREET | VANCOUVER, WA 98682


AVEY COURT APARTMENTS 13609 NE 28TH STREET | VANCOUVER, WA 98682


OFFERING MEMORANDUM


12503 SE Mill Plain Blvd • Suite 260 • Vancouver, WA 98684

503.223.3171 • norris-stevens.com

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TABLE OF CONTENTS

THE OFFERING

INVESTMENT SUMMARY

PROPERTY DETAILS

LOCATION AERIALS

LOCATION OVERVIEW

INCOME & EXPENSE ANALYSIS

MARKET RENT SURVEY

SALE COMPARABLES

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THE OFFERING

Avey Court Apartments is a newly constructed apartment community located in the Landover-Sharmel Neighborhood of Vancouver, Washington. The asset was completed in August, 2019, is well located within walking distance to public schools and offers convenient access to Vancouver’s primary arterials including the I-205 corridor, Highway 14 and the SR-500. The unit mix at Avey Court consists of seventeen 2 bedroom/1 bathroom units at approximately 750 square feet and two studio units at approximately 350 square feet. As of April 2020, the property was at 100% occupancy. Every unit contains a stackable washer & dryer, a balcony/patio, LVT flooring, quality finishes and stainless steel appliances.




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INVESTMENT SUMMARY

• Excellent location with convenient access to services and major arterials • Upside on in-place rents • Low-density residential setting • LVT Flooring throughout apartments • Stainless steel appliances • Granite counter tops • Portable A/C wall vent in living room • Stackable washer and dryer in all units • Private balconies and patios

• Dog wash station

PRICING OVERVIEWOffering Price: $4,300,000

Capitalization Rate (Actual): 4.88%

Price Per Unit: $226,316

Price Per SF: $319.70

Est. Cash-on-Cash Return (Year 1): 2.91%

Est. Total Return (Year 1): 7.02%

PROPERTY HIGHLIGHTS

Address: 13609 NE 28th Street

City/State: Vancouver, WA 98682

# of Units: 19

Studio: 2 Units (± 350 SF)

2 Bed/1 Bath: 17 Units (± 750 SF)

Parking Spaces: 28

Year Built: 2019

Rentable Building Area:

± 13,450 SF

AVERY COURT APARTMENTS




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PROPERTY DETAILS

STUDIO A: ± 350 SFTWO BED - ONE BATH: ± 750 SF

Property Name: Avery Court

Address: 13609 NE 28th Street

City/State/Zip: Vancouver, WA 98682

No. of Units: 19

Year Built: 2019

Parcel Number(s): 164121000; 164117000

Rentable Bldg Area: ± 13,450 SF

Lot Size: ± 35,719 SF (0.82 AC)

Parking Spaces: 28

Construction Type: Wood frame

Siding Type: Hardi-Plank

Roof Type: Pitched composition

Foundation Type: Crawl spaces

SCHEDULED MONTHLY RENTS

UNIT TYPE # UNITS UNIT SF SCHEDULEDRENT

RENT PERSF

Studio 2 350 $950 $2.71

2 Bed/1 Bath 16 750 $1,250 $1.67

2 Bed/1 Bath 1 750 $1,445 $1.93

TOTAL 19 13,450 $23,345 $2.10

STUDIO B: ± 350 SF




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PROPERTY DETAILS - EXTERIOR PHOTOS




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PROPERTY DETAILS - INTERIOR PHOTOS




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LOCATION AERIAL

NE 28TH STNE 28TH ST

NNE

138T

H AVE

NE 13

8TH A

VE




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LOCATION MAP




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LOCATION MAP

NE 28TH ST.

EVERGREENHIGH SCHOOL

BURTONELEMENTARY

SCHOOLSUBJECT

PROPERTY

PORTLANDINTERNATIONAL

AIRPORT

PEACEHEALTH SWMEDICAL CENTER

VANCOUVER MALL

PORTLAND17.1 MILES




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LOCATION OVERVIEW - VANCOUVER

Vancouver, Washington is a favorable market for investment, given Oregon’s recent lift on the rent control ban, inclusionary zoning in the City of Portland and many other onerous landlord/tenant ordinances that have gone into effect throughout Oregon in the last few years. Vancouver, which has historically been dominant in the manufacturing sector, is now seeing the largest growth to be in the trade, transportation, construction, utilities and business service sectors.

Population Growth: The Portland-Vancouver-Hillsboro MSA is the 13th fastest growing metro area in the country with approximately 2.5 million people and around 500,000 live in Clark County. Over the past twelve month period, Clark County has seen approximately 9,000 new residents move to the area (1.88% annual growth) which includes spillover from Portland and intrastate and immigration patterns.

Rental Market: Vancouver demonstrates strong fundamentals and throughout the past six years, rent growth has outpaced the submarkets historical average peaking at 12% in 2015 and sustaining at 2% in 2019. Vacancies moved slightly upward in 2019 due to approximately 1,500 new apartment deliveries but rent growth in Vancouver is still outperforming the Portland metro. The rent gap between Portland and Vancouver was around 11% at the start of the current cycle. Due to strong rent growth throughout the past six years, this rent gap has been reduced to approximately 5% which helps demonstrate the strong fundamentals that exist in the Vancouver apartment market.

NOTABLE VANCOUVER EMPLOYERSEMPLOYER # OF EMPLOYEES INDUSTRY

Vancouver Public Schools 3,178 Education

Evergreen Public Schools 2,698 Education

Vancouver Clinic 1,526 Medical

Bonneville Power Administration 1,124 Utilities

Clark College 1,023 (12,900 students) Education

SEH American Inc. 865 Manufacturing

Banfield Pet Hospital 778 Medical

Dick Hannah Dealerships 755 Auto

Tapani Inc. 465 Construction

WA State University - Vancouver 446 (3,600 students) Education

Clark Public Utilities 383 Utilities

Source: Vancouver Business Journal, May 17, 2019




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INCOME & EXPENSE ANALYSISESTIMATED INCOME

CURRENT

POTENTIAL GROSS INCOME $280,140

PLUS: Utility Billbacks (9) @ $75/unit & (10) @ $90/unit 18,900

GROSS OPERATING INCOME $299,040

LESS: Vacancy/Credit Loss 5.0% (14,952)

PLUS: Other Estimate (pet fees, late fees, etc.) 6,000

EFFECTIVE GROSS INCOME $290,088

ESTIMATED EXPENSES

ANNUAL

FIXED

Real Estate Taxes Estimated Reassessed 27,000

Property Insurance Estimated 3,500

Landscaping Estimated 3,000

Replacement Reserves Approx. $200/unit/year 3,800

TOTAL FIXED EXPENSES $37,300

VARIABLE

Repairs/Maintenance Estimated 6,000

Professional Management/On-Site Approx. 5% of EGI 14,500

Estimated Turnover Estimated 2,000

Water/Sewer 7,000

Garbage 5,160

Electricity/Gas 3,600

Marketing/Advertising 1,000

Fire Alarm/Phone Line 1,500

Miscellaneous/Admin Estimated 2,000

TOTAL VARIABLE EXPENSES $42,760

TOTAL ANNUAL EXPENSES $80,060 NET OPERATING INCOME $210,028

Expense Ratio (% of EGI): 27.6%

Expenses/Unit: $4,214

NEW FINANCING

Loan Amount: $3,010,000

Down Payment: $1,290,000

Loan-to-Value: 70.00%

Loan Type: Conventional/Non-recourse

Interest Rate: 4.00%

Term/Amortization: 10 Years/30 Years

Annual Debt Service: $172,442

Interest Only Option: 3 Years

POTENTIAL LOAN ASSUMPTION

Loan Balance (4/1/20): $2,775,000

Interest Rate/Amortization: 4%, 30-Year Amortization

Term: 5-Year Fixed Term

Monthly Principal & Interest: $13,247.71

Loan Type: Conventional

Lender: IQ Credit Union

PRICE ANALYSIS

Offering Price: $4,300,000

Capitalization Rate (Actual): 4.88%

Est Cash-on-Cash Return (Year 1): 2.91%

Total Return (Year 1): 7.02%

Price Per Unit: $226,315.79

Price Per SF: $319.70

Current Loan: Assumable




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MARKET RENT SURVEY

APARTMENT YEAR BUILT NUMBER OF UNITS UNIT TYPE UNIT SIZE AVERAGE

ASKING RENTAPPROX RENT/SF

GARAGE/CARPORT PLAYGROUND

WASHER/DRYER OR HOOKUPS

DISHWASHER AIRCONDITIONING

PATIO/BALCONY EXTRA

AVERY COURT 2019 19 STUDIO ± 350 SF $950

RUBS WSG $2.71 WD DW & GD Δ

SUBJECT PROPERTY13609 NE 28TH STVANCOUVER, WA | 98682

2 BD / 1 BA ± 750 SF $1,300RUBS WSG $1.73 WD DW & GD Δ

This survey of rents and amenities in Vancouver, WA apartment communities was prepared April 15, 2020.






PATIO/BALCONY EXTRA

AUTUMN CHASE

1989(Renovated) 398 STUDIO ± 473 SF $1,075

METERED W/S $2.27 Δ WD Δ Δ POOLFITNESS CENTER

11301 NE 7TH STVANCOUVER, WA | 98684






PATIO/BALCONY EXTRA

FIRST ST. STATION

1997(Renovated) 70 2 BD / 1 BA ±875 SF $1,385

RUBS WSG $1.58 Δ WD Δ Δ

16119 SE 1ST STVANCOUVER, WA | 98684






PATIO/BALCONY EXTRA

MEADOW WOOD

1993(Renovated) 334 2 BD / 1 BA ± 852 SF $1,348

METERED W/S $1.58 WD Δ Δ POOLFITNESS CENTER

6811 NE 121ST STVANCOUVER, WA | 98682






PATIO/BALCONY EXTRA

UNIONPARK 2017 120 2 BD / 1 BA ± 876 SF $1,404

RUBS WSG $1.60 Δ WD Δ Δ POOLFITNESS CENTER

11803 NE 124TH AVEVANCOUVER, WA | 98682




OFFERING MEMORANDUM




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SALE COMPARABLESMIDTOWN513 E 16th Street | Vancouver, WA 98663

# of Units 48 Sale Price $10,825,000

Year Built 2017 Sale Date 1/14/2019

Total RBA 30,368 SF Price Per Unit $225,521

Cap Rate 5.34% Price Per SF $356.46

NotesStabilized at sale and closed with a 90 day escrow period. Listed for $11.3M. Mix of one and two bedrooms from 436 – 618 square feet.

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Avey Court comps

Untitled layer

13609 NE 28th St

513 E 16th St

5513 NE 66th Ave

4721 NE 66th Ave

AVEYCOURT

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N

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HAVEN PARK7508 NE 45th St | Vancouver, WA 98662




Pro-formaCap Rate 5.00% Price Per SF $281.92

Notes

HERBY1510 C St | Vancouver, WA 98663




Cap Rate 5.51% Price Per SF $236.91

Notes

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(503) 223 3171 • norris-stevens.com • 12503 SE Mill Plain Blvd • Suite 260 • Vancouver, WA 98684

INVESTMENT REAL ESTATE SERVICESINVESTMENT REAL ESTATE SERVICES

Copyright © 2020 Norris & Stevens, Inc. Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

DAVID C. CHATFIELDMULTI-FAMILY INVESTMENT BROKER

[email protected]

CAMERON MERCERSENIOR MULTI-FAMILY INVESTMENT BROKER

DIRECTOR OF APARTMENT BUSINESS DEVELOPMENT

[email protected]

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AVEY COURT APARTMENTS OFFERING MEMORANDUM · Avey Court Apartments is a newly constructed apartment...

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