Boho Omdraft 051618r
Transcript of Boho Omdraft 051618r
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THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOWA CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY
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www.cbremarketplace.com/boho4w
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01. QUICK LOOK 7
02. INVESTMENT NUMBERS 11
03. INVESTMENT STORYDemographic of the Future 21
Location of the Future 29
Property of the Future 45
04. PROPERTY 57
05. MULTIFAMILY MARKET 77
CONTENTS
THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW
DRAFT / 05-16-14
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4 / BOHO4W
COMMUNICATION
All communication, inquiries and requests should be addressed to the CBRE Team, as representatives of the Seller. Management at the property should not be contacted directly.
PROPERTY VISITS
Interested investors are required to schedule a time to meet with the CBRE team to tour the asset and discuss the merits of the offering. Please contact a member of the marketing team with any questions.
DOCUMENT CENTER
Investors agreeing to the terms and conditions set forth in the confidentiality agreement can expect an invitation to a password protected document center containing electronic forms of the offering memorandum, operating statements, rent roll, and other information that should be useful in your evaluation of the property.
For questions regarding the document center please contact Rhonda Masterson at 404.923.1430.
www.cbremarketplace.com/boho4w
MALCOLM [email protected]
PAUL [email protected]
KEVIN [email protected]
JOHN [email protected]
COLLEEN [email protected]
CBRE ATLANTA3280 Peachtree Road NESuite 1400Atlanta, Georgia 30305
404.504.7900 main404.923.1560 fax
www.cbre.com/mhg
CBRE CONTACTS
A CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY
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501. QUICK LOOK /
A CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY
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6 / BOHO4W
01. QUICK LOOK
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701. QUICK LOOK /
BOHO4W is a visionary new property adjacent
to Historic Fourth Ward Park (H4WP) on the
BeltLines Eastside Trail. It is also a forward-
thinking investment that is poised to outperform
the market. From its location in the fast evolving
Old Fourth Ward, to its cutting edge fiber to the
unit (FTTU) broadband infrastructure, BOHO4W
is positioned to seize the future.
I look to the future because thats where Im going to spend the rest of my life.
~ George Burns
THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW
PROPERTY SUMMARY
Units 276
Rentable SF (gross) 246,464
Rentable SF (heated) 232,234
Average Unit Size (gross) 893
Average Unit Size (heated) 841
Year Completed 2014
Current Average Rent (5/4/14) $1,534
Current Average Rent/SF (heated) $1.82
% Leased (5/4/14) 56%
477 WILMER STREET NE - ATLANTA, GA 30308
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8 / BOHO4W
Demographicof the Future
Locationof the Future
Productof the Future
What if the countrys rental population is about to change dramatically, is your asset an exact match for the way the new population wants to live?
To understand the power of BOHO4W, it is important to understand how rapidly the future of multifamily will be changing. In a short 11 years, Generation Y, the cohort between ages 10 and 32, will account for 75% of the workforce. BOHO4W understands what this game-changing demographic group wantsand BOHO4W delivers.
What if the same property is also in the sweet spot of an extensive urban renewal project, one that will supercharge growth for decades?
Core NeighborhoodThe Old Fourth Ward (O4W) neighborhood, once considered edgy, has reached core status in recent years. Anchored by Virginia Highlands and Inman Park, this pocket is rock solid with demand.
Location Inflection PointAtlantas BeltLine is still in its infancy. While the Eastside Trail and Historic Fourth Ward Park have served as the catalyst for a remarkable transformation, more is yet to come. Its still early in terms of getting in on the action. Demand is about to surge.
Superior SiteBOHO4W got in early and secured one of the best locations along the BeltLine, a spot surrounded by authentic amenities and situated on the front row of Historic Fourth Ward Park (H4WP).
Later developments will have to stake claims on lesser locations, if they can secure land at all.
What if you invest in a new property that has a technology advantage so ahead-of-the-game, that it will deliver a better resident profile, increase rents, and reduce turnover for years to come?
Gigabit Internet Speed:100x Faster than Cable BOHO4Ws investment in FTTU broadband infrastructure allows BOHO4W to deliver content faster than any property in Atlanta. It is a rare first-mover advantage that has helped BOHO4W attract the right target residents from the start. Whats more, the technology competitive advantage supports higher rents and better retention.
Forward-Looking Design of Unit InteriorsResidents live large with well-designed, open floorplans with quality storage space incorporated in each unit. They also appreciate details like skyline and H4WP views, granite and quartz countertops, 9 and 10 ceiling heights, and other upscale finishes.
Spectacular Amenities that Build CommunityBOHO4W is the only property on the BeltLine with a pool overlooking Historic Fourth Ward Park. A pool cabana room, art studio and outdoor lounge area offer plenty of social spaces.
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901. QUICK LOOK /
BOHO4W
Single Family Homes and Townhomes
$450,000-$700,000 Ralph McGill Blvd
Glen Iris DriveNorth Avenue
Highland Dog Training
Ponce City Market
GA Power Equipment Yard
Downtown: 118,000 Jobs Midtown: 81,000 Jobs
Single Family Homes $250,000-$450,000
The Masquerade Concert Venue
Whole Foods Market
Freedom P
arkway
Single Family Homes $500,000-$1.3M
Historic Old 4th Ward Park
Future Entrance to Beltline
BOHO4W
Single Family Homes and Townhomes
$450,000-$700,000 Ralph McGill Blvd
Glen Iris DriveNorth Avenue
Highland Dog Training
Ponce City Market
GA Power Equipment Yard
Downtown: 118,000 Jobs Midtown: 81,000 Jobs
Single Family Homes $250,000-$450,000
The Masquerade Concert Venue
Whole Foods Market
Freedom P
arkway
Single Family Homes $500,000-$1.3M
Historic Old 4th Ward Park
Future Entrance to Beltline
BOHO4W is located on the Historic Fourth Ward Park, overlooking the parks amphitheater, lake and walking trails. The property is walkable to Ponce City Market, the Eastside Trail
of the Atlanta BeltLine, and many restaurants, barsand nightlife.
AERIAL IN PRODUCTION - FPO
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10 / BOHO4W
02. INVESTMENT NUMBERS
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1102. INVESTMENT NUMBERS /
Investment SummaryPROPERTY SUMMARY
Units 276
Rentable SF (gross) 246,464
Rentable SF (heated) 232,234
Average Unit Size (gross) 893
Average Unit Size (heated) 841
Year Completed 2014
Current Average Rent (5/4/14) $1,534
Current Average Rent/SF (heated) $1.82
% Leased (5/4/14) 56%
UNIT MIX SUMMARY
Gross / Rentable SF Net / Heated SF
Floorplan Unit Type # Units % of Mix Current Rent Total Rent Unit Area Total Area Rent/SF Unit Area Total Area Rent/SF
A1 1BR - 1BA 70 25.4% $1,304 $91,290 687 48,090 $1.90 637 44,590 $2.05
A1b 1BR - 1BA 6 2.2% 1,438 8,625 904 5,424 1.59 854 5,124 1.68
A2 1BR - 1BA 94 34.1% 1,383 129,955 780 73,320 1.77 730 68,620 1.89
A2b 1BR - 1BA 8 2.9% 1,563 12,500 1,038 8,304 1.51 988 7,904 1.58
A3 1BR - 1BA 1 0.4% 1,540 1,540 885 885 1.74 823 823 1.87
A5 1BR - 1BA 20 7.2% 1,672 33,440 972 19,440 1.72 922 18,440 1.81
A6 1BR - 1BA 2 0.7% 2,143 4,285 1,012 2,024 2.12 972 1,944 2.20
B1 2BR - 2BA 16 5.8% 1,745 27,915 1,057 16,912 1.65 1,007 16,112 1.73
B2 2BR - 2BA 24 8.7% 1,905 45,710 1,215 29,160 1.57 1,153 27,672 1.65
B3 2BR - 2BA 10 3.6% 1,821 18,210 1,164 11,640 1.56 1,124 11,240 1.62
B4 2BR - 2BA 15 5.4% 1,891 28,370 1,193 17,895 1.59 1,143 17,145 1.65
B5 2BR - 2BA 10 3.6% 2,153 21,525 1,337 13,370 1.61 1,262 12,620 1.71
Total 276 100.0% $1,534 $423,365 893 246,464 $1.72 841 232,234 $1.82
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STABILIZED PRO FORMA MONTHLY REVENUE
FY1 FY2 FY3
Current Market Rents $423,365 $440,299 $457,911
Rent Increase (Market) 4.0% 4.0% 4.0%
Scheduled Market Rents $440,299 $457,911 $476,228
Loss to Lease 2.0% 2.0% 2.0%
Gross Potential Rent $431,493 $448,753 $466,703
Vacancy Loss 5.0% 5.0% 5.0%
Concessions 0.0% 0.0% 0.0%
Bad Debt Loss 0.3% 0.3% 0.3%
Non-Revenue Units 0.8% 0.8% 0.8%
Net Rental Income $405,421 $421,672 $438,575
Utility Reimbursements 19,279 3.0% 3.0%
Parking & Storage Income 6,250 3.0% 3.0%
Broadband Income 11,183 3.0% 3.0%
Other Income 9,795 3.0% 3.0%
Total Income $451,929 $469,575 $487,914 ANNUAL EXPENSES PER UNIT
FY1 FY2 FY3
Payroll $1,241 $1,272 $1,304
Gas & Electric 302 309 317
Water & Sewer 685 702 719
Trash Removal 204 209 214
Repairs & Maintenance 250 256 263
Turnover Related 175 179 184
Landscaping 115 118 121
Marketing & Advertising 250 256 263
General & Administrative 200 205 210
Broadband Service 660 677 693
Controllable Expenses $4,082 $4,184 $4,288 Management Fee 491 510 530
Taxes 2,736 2,804 2,874
Insurance 190 195 200
Total Operating Expenses $7,499 $7,693 $7,892 Replacement Reserves 150 175 200
Total Expenses $7,648 $7,868 $8,092
Financial Analysis
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1302. INVESTMENT NUMBERS /
STABILIZED PRO FORMA
FY1 FY1/Unit FY2 FY3 FY4 FY5 FY6 FY7 FY8
Current Market Rents $5,080,377 $18,407 $5,283,592 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787
Rent Increase (Market) 203,215 736 211,344 219,797 200,016 207,016 214,262 221,761 229,523
Scheduled Market Rents $5,283,592 $19,143 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787 $6,787,310
Loss to Lease (105,672) (383) (109,899) (114,295) (103,508) (107,131) (110,880) (114,761) (118,778)
Gross Potential Rent 5,177,920 18,761 5,385,037 5,600,438 5,811,240 6,014,634 6,225,146 6,443,026 6,668,532
Vacancy Loss (258,896) (938) (269,252) (280,022) (290,562) (300,732) (311,257) (322,151) (333,427)
Concessions - - - - - - - - -
Bad Debt Loss (12,945) (47) (13,463) (14,001) (14,528) (15,037) (15,563) (16,108) (16,671)
Non-Revenue Units (41,023) (149) (42,253) (43,521) (44,827) (46,171) (47,557) (48,983) (50,453)
Net Rental Income $4,865,056 $17,627 $5,060,069 $5,262,894 $5,461,323 $5,652,694 $5,850,769 $6,055,784 $6,267,981
Utility Reimbursements 231,343 838 238,283 245,432 252,795 260,379 268,190 276,236 284,523
Parking & Storage Income 75,000 272 77,250 79,568 81,955 84,413 86,946 89,554 92,241
Broadband Income 134,201 486 138,227 142,374 146,645 151,044 155,576 160,243 165,050
Other Income 117,544 426 121,070 124,702 128,444 132,297 136,266 140,354 144,564
Total Income $5,423,144 $19,649 $5,634,900 $5,854,970 $6,071,161 $6,280,827 $6,497,746 $6,722,170 $6,954,359
Payroll $342,514 $1,241 $351,077 $359,854 $368,850 $378,071 $387,523 $397,211 $407,142
Gas & Electric 83,280 302 85,362 87,496 89,683 91,926 94,224 96,579 98,994
Water & Sewer 188,988 685 193,713 198,556 203,519 208,607 213,823 219,168 224,647
Trash Removal 56,304 204 57,712 59,154 60,633 62,149 63,703 65,295 66,928
Repairs & Maintenance 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019
Turnover Related 48,300 175 49,508 50,745 52,014 53,314 54,647 56,013 57,414
Landscaping 31,800 115 32,595 33,410 34,245 35,101 35,979 36,878 37,800
Marketing & Advertising 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019
General & Administrative 55,200 200 56,580 57,995 59,444 60,930 62,454 64,015 65,615
Broadband Service 182,160 660 186,714 191,382 196,166 201,071 206,097 211,250 216,531
Controllable Expenses $1,126,546 $4,082 $1,154,710 $1,183,577 $1,213,167 $1,243,496 $1,274,583 $1,306,448 $1,339,109
Management Fee 135,579 491 140,872 146,374 151,779 157,021 162,444 168,054 173,859
Taxes 754,999 2,736 773,874 793,221 813,051 833,378 854,212 875,567 897,457
Insurance 52,440 190 53,751 55,095 56,472 57,884 59,331 60,814 62,335
Total Operating Expenses $2,069,564 $7,498 $2,123,207 $2,178,267 $2,234,469 $2,291,778 $2,350,570 $2,410,884 $2,472,759
Replacement Reserves 41,400 150 48,300 55,200 56,580 57,995 59,444 60,930 62,454
Total Expenses $2,110,964 $7,648 $2,171,507 $2,233,467 $2,291,049 $2,349,773 $2,410,015 $2,471,814 $2,535,213
Net Operating Income $3,312,180 $12,001 $3,463,393 $3,621,502 $3,780,112 $3,931,054 $4,087,731 $4,250,356 $4,419,146
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Financial AnalysisThe market appeal of BOHO4W is demonstrated by its incredibly strong lease-up.
Move-ins averaging nearly 29 units/month since February 2014 Rising Lease rates throughout lease-up period Higher Loss-to-Lease on early move-ins as a result of increasing Market Rents.
OCCUPIED UNITS
Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL %
Jan. '14 12 925 $1,496 $1,409 $1.52 ($88) -5.9%
Feb. '14 23 913 $1,576 $1,468 $1.61 ($108) -6.9%
Mar. '14 25 878 $1,523 $1,441 $1.64 ($82) -5.4%
April '14 31 873 $1,505 $1,457 $1.67 ($48) -3.2%
Through May 3, 2014 6 834 $1,514 $1,473 $1.77 ($41) -2.7%
FUTURE MOVE-INS
Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL %
May '14 30 862 $1,476 $1,445 $1.68 ($31) -2.1%
June '14 14 858 $1,448 $1,418 $1.65 ($30) -2.1%
July '14 9 854 $1,428 $1,399 $1.64 ($29) -2.0%
Aug. '14 1 972 $1,459 $1,459 $1.50 $0 0.0%
Loss
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arly
Mo
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Mar
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6.9%
5.4%
3.2%
2.2% 2.1% 2.0%
0.0%0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Jan. '14 Feb. '14 Mar. '14 April '14 May '14 June '14 July '14 Aug. '14
Loss
to L
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(% o
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mar
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Move-In Date
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1502. INVESTMENT NUMBERS /
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Non Revenue UnitsNon-Revenue Units currently consist of two model units and four employee discount units.
NON REVENUE UNITS
Unit Type Use Current Market Rent Discount
Model Units
2113 B2 Model $1,850 100%
2116 A2 Model $1,325 100%
Employee Units
2105 A3 Courtesy Officer $1,540 $755
2216 A2 Employee $1,330 100%
2313 B2 Employee $1,840 100%
2318 A2 Employee $1,335 100%
FY1 projections assume that employee units are discontinued.
Utility Reimbursement IncomeResidents pay for valet trash collection and reimburse the property for their water/sewer consumption.
FY1 Utility Reimbursement Income is projected using a 95% recapture ratio of gross water/sewer expenses, plus $18/unit monthly valet trash collection fee.
UTILITY REIMBURSEMENT INCOME
Collection %
Monthly/Unit Monthly Annual
Annual/Unit
Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600
Billing Fee $5.25 $1,449 $17,388 $63
Total ReimbursableWater/Sewer $55.25 $15,249 $182,988 $663
Water/Sewer Reimbursements 95% $47.50 $13,110 $157,320 $570
Billing Fee 100% $5.25 $1,449 $17,388 $63
Valet Trash Collection 95% $18.00 $4,720 $56,635 $205
Total Utility Reimbursement Income $231,343 $838
Underwriting NotesINCOME CATEGORIES
Current Market RentsAs of the May 5, 2014 rent roll, current market rents at BOHO4W were $1,534 per unit ($1.82 per heated SF / $1.72 per gross SF). Monthly Market Rent totals $423,365 as of the 5/5/2014 rent roll.
Rent IncreaseMarket Rent growth of 4.0% is projected in FY1 through FY3, and 3.5% thereafter. Resulting FY1 market rent is $1,595/unit and $1.90 per heated SF).
Loss To LeaseLoss to Lease represents the difference between Market Rent and actual rent. As a result of projected Market Rent increases, FY1 Loss to Lease is projected to equal 2% of projected Market Rent. This results in projected Gross Potential Rent (GPR) of $1,563 per month ($1.86 per SF).
Vacancy LossVacancy Loss equal to 5% of Gross Potential Rent is projected throughout the analysis period.
ConcessionsThe property has offered limited up-front concessions on an as-needed basis during construction. Upfront concessions were only offered to residents whose unit was not ready by the move-in date. Only two units have recurring concessions totaling $106 per month:
Unit 2208 Concession of $56/month was offered to offset residents storage fees.
Unit 2501 Concession of $50/month offered due to leasing banner on building exterior covering window.
Bad Debt LossBad Debt Loss of 0.25% of GPR is projected throughout the analysis period.
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1702. INVESTMENT NUMBERS /
the propertys broadband service provider. The property receives a 5% revenue share of upgrade charges.
This stabilized pro forma projects that the property begins charging residents $40/month for the base 50Mbps internet service. The Flats at Ponce City Market currently charges $40/month for 20Mbps internet service. FY1 Broadband Income is projected as follows:
BROADBAND INCOME
Service Monthly RatePene-
trationTotal
Monthly Annual RoyaltyAnnual Income
Per Unit
Base Internet (50 Mbps), TV $40.00 95% $10,488 $125,856 N/A $125,856 $456
Ultimate Internet (100 Mbps) $29.99 35% 2,897 34,764 5% 1,738 6
Gigabit Internet (1Gbps) $99.99 30% 8,279 99,350 5% 4,968 18
HBO $18.99 10% 524 6,289 5% 314 1
Digital TV Package $39.99 20% 2,207 26,489 5% 1,324 5
Total $134,201 $486
Parking/Storage IncomeThe property does not currently charge residents for parking. There is opportunity to implement a reserved parking program particularly in the podium building fronting Old 4th Ward Park. The Flats at Ponce City Market charges residents $75/month for parking. FY1 projections assume 50 reserved spaces at a monthly rate of $50.
FY1 projections assume 50 storage units at an average monthly rent of $75.
PARKING AND STORAGE INCOME
Monthly Rate # Spaces Monthly Annual Annual/Unit
Reserved Parking $50.00 50 $2,500 $30,000 $109
Storage Units $75.00 50 $3,750 $45,000 $163
Total $75,000 $272
Broadband IncomeThus far during lease-up, the property has offered basic internet (50 Mbps) and a basic TV channel line-up included in monthly rent. Residents have the option to upgrade internet service (to 100 Mbps or 1Gbps), TV package and to add VoIP telephone through Hotwire,
Other IncomeOther Income includes application fees, pet fees and rent, month-to-month fees, transfer fees, etc. FY1 Other Income is projected as shown in the table below:
OTHER INCOME
Fee/Rate Quantity Monthly Annual Annual/Unit Assumptions
MTM $150 12 $1,800 $21,600 $78 12 per month
Washer/Dryer 25 100 2,500 30,000 109 Property to provide W/D sets in 100 units
Admin Fees 125 138 1,438 17,250 63 50% turnover
Application Fees 50 159 661 7,935 29 50% turnover, 1.15 applicants per move-in
Pet Fee (NR) 350 35 1,006 12,075 44 25% of turned units have pets
Pet Rent 10 69 690 8,280 30 25% of units have pets
Termination fee (1 month rent) 1,534 6 767 9,204 33 6 terminations/year
Transfer fee 500 8 333 4,000 14 8 transfers/year
Late/NSF Fee 50 48 200 2,400 9 4 per month
Damage Fees 100 48 400 4,800 17 4 per month
Total $5,495 $117,544 $426
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Water & SewerThis line item represents gross water and sewer expenses before resident reimbursements. Residents reimburse the property based upon submeter readings of actual consumption. This line item also includes third-party billing fees paid by the property, which are then passed through to residents. WATER/SEWER EXPENSE
Monthly/Unit Monthly Annual Annual/Unit
Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600
Water/Sewer Expense - Common Areas $500 $6,000 $22
Billing Fee $5.25 $1,449 $17,388 $63
Total $15,749 $188,988 $685
Trash RemovalThis line item represents net trash collection expenses before resident reimbursements. Residents are charged a monthly trash collection fee of $18, which is billed as income.
FY1 Trash Collection expenses are based upon a monthly expense of $17/unit.
Repairs And MaintenanceFY1 Repairs and Maintenance are projected at $250/unit, in line with market levels for new Class AA midrise properties.
Turnover RelatedTurnover expenses are projected at $175/unit, based upon a cost of $350 to turn each unit and a 50% turnover ratio.
LandscapingThis category includes landscaping contract and supplies FY1 Landscaping and Contract Services expense is projected based on a monthly landscaping contract of $1,900 and annual expenses of $5,000 for seasonal color and $4,000 for mulch.
Marketing And AdvertisingProjected Marketing and Advertising expenses reflect stabilized operations, which are lower than during initial lease-up. FY1 Marketing and Advertising expenses are projected at $69,000 ($250/unit).
Underwriting NotesEXPENSE CATEGORIES
PayrollFY1 Payroll expenses project a stabilized staffing level of 3 office and 3 maintenance personnel. FY1 Payroll expense is projected as shown in the table below.
The rates shown below are based upon predominant wage rates in metro Atlanta and do not represent the actual wage rates paid to current staff at BOHO4W.
PAYROLL
Position Salary Bonus Burden @24% Total
Manager $55,000 $5,500 $14,521 $75,021
Leasing Consultant (2) $72,000 $14,400 $20,736 $107,136
Subtotal - Office $127,000 $19,900 $35,257 $182,157
Maintencance Supervisor $55,000 $14,400 $20,736 $72,292
Maintenance Technician $43,000 $3,300 $13,992 $56,519
Housekeeper $24,000 $2,580 $10,939 $31,546
Subtotal - Maintenance $122,000 $20,280 $45,667 $160,357
Total Payroll $249,000 $40,180 $80,924 $342,514
ElectricityElectricity expenses include vacant unit and common area utility expenses.
FY1 Electricity expense is projected based on common area expense of $6,250/month and a monthly vacant unit expense of $50/unit (and 5% vacancy rate).
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1902. INVESTMENT NUMBERS /
Projected FY1 Real Estate Tax expense for BOHO4W is based upon a projected Fair Market Value of $155,000 per unit ($184 per heated SF).
On a per-unit basis, the projected stabilized FMV for BOHO4W is above the top end of the comparable range. On a per-SF basis, the projected FMV is 24% above the top end of the range.
FY1 Real Estate Tax expense is projected as follows:
REAL ESTATE TAXES
Total Per Unit Per SF
Fair Market Value $42,780,000 $155,000 $184
Assessment Ratio 40%
Assessed Value $17,112,000 $62,000 $74
Millage Rate 0.044121
Real Estate Tax $754,999 $2,736 $3
InsuranceFY1 Insurance expense is projected at $190/unit ($0.23 per heated SF), in line with market levels for newly-built Class AA midrise Atlanta properties.
Replacement ReservesReplacement Reserves are projected at $150/unit in FY1, $175/unit in FY2, $200/unit in FY3, and inflation-adjusted thereafter.
General & AdministrativeFY1 G&A expenses are projected in line with typical levels for stabilized Class AA properties, at $55,200 ($200/unit).
Broadband ServiceHotwire is the propertys broadband service provider. The property pays $55/unit per month for fiber optic broadband services.
Management FeeA Management Fee equal to 2.5% of Total Income is projected.
Real Estate TaxesReal Estate Taxes are based upon the Fair Market Value of the property as of January 1 of each year. The FMV is determined by the countys board of assessors.
The Georgia Constitution stipulates that ad valorem real estate taxes shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax.
The table below illustrates the 2013 FMV values for stabilized Class A and AA properties in the Old 4th Ward and Inman Park.
REAL ESTATE TAX COMPARABLES
Property # Units 2013 FMV FMV/Unit FMV/SF Under Appeal
AMLI Old 4th Ward 337 $51,726,200 $153,490 $147 Y
AMLI Parkside 301 39,133,400 130,011 143 N
Block Lofts 244 32,194,000 131,943 134 N
Mariposa Lofts 253 36,467,500 144,140 148 N
Highland Walk 350 36,500,000 104,286 108 N
North Highland Steel 240 30,000,000 125,000 132 N
Total / Avg 1,725 $226,021,100 $131,027 $135
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Demographic of the Future
Location of the Future
Property of the Future
03. INVESTMENT STORY
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2103. INVESTMENT STORY /
Demographic of the Future
The FutureStarts with YGeneration Y, the generation also known as Millennials, (now age 10 to 32) will be taking over the workforce and taking hold of the future of multifamily.
Source: U.S. Census and Forbes, Why You Cant Ignore Millenials
Today, Gen Y Represents 34% of the Workforce
In 11 Years, Gen Y will be 75% of the Workforce
While I take inspiration from the past,like most Americans, I live for the future.
~ Ronald Reagan
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Gen Y Lives, Works and Playsin Different Ways than Previous Generations
22 / BOHO4W
Gen Y values unique, authentic experiences.They appreciate products and places that have evolved organically; and they are put off by mass marketing. The Old Fourth Ward (O4W) neighborhood and BOHO4Ws one-of-a-kind characteristics appeal to this cohorts strong desire for unique, authentic experiences.
American,mass-marketed brands
imported brandsfrom around the world
unique,local craft beers
Grandparents Parents Gen Y
The growth of Generation Y and its impact on all sectors of commercial real estate could be the singular most dominant trend for many years. This group lives, works, and plays in different ways than previous generations... (Generation Y) will be very good for real estate. ~ Urban Land Institute Emerging Trends in Real Estate 2014
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2303. INVESTMENT STORY /
Demographic of the Future
three networks on new color TVsand vinyl records
cable TV, VCRs, DVDsand CD players
live, uninterrupted, FAST streams of HULU, Netflix, HBO GO, Twitch,
Spotify and Pandora
Grandparents Parents Gen Y
Gen Ys choices for home entertainment are limitlessand they are addicted to speed.
BOHO4W is the only apartment community that canmeet their standards for Internet speed. With gigabitspeeds 100x faster than cable, BOHO4W can delivereverything on the Internet instantly.
1GB
-
Gen Y LocationWish List Besides living in an exciting, young city like Atlanta, most new professionalshave a list of urban lifestyle experiences they want to embrace.
Wish List Item BOHO4W Delivers
Location in the center of the city P 1.4 miles from the heart of Midtown 1.5 miles from Downtown
Near creative and high-tech workspaces P Midtown is now a creative mecca for innovative companies in high-tech and creative professions
P Ponce City Market, a short walk, adding 484,000 SF of office space with cutting-edge tech firms like MailChimp, Cardlytics, and Athena Health
Authentic, organic restaurants, bars and nightlife at your doorstep
P 28+ unique, local restaurants within 1 mileP The Masquerade, a live music venue,
adjacent to H4WPP 1.4 miles from the historic Fox Theatre
Parks and green spaces nearby P Backyard is Historic Fourth Ward ParkP Adjacent to the BeltLines Eastside Trail,
a 2.2-mile pathway for pedestrians and bikes
P Piedmont Park, the citys largest park, is 1.3 miles north
P Freedom Park, 1.3 miles east
Access to mass transit P 1.5 miles from North Avenue MARTA station
P Less than 1 mile from Atlanta Streetcar line
24 / BOHO4W
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2503. INVESTMENT STORY /
Demographic of the Future
-
26 / BOHO4W
(A Curbed Atlanta reader) points to a trend...That the BeltLines allure will become so strong, so attractive to older buyers looking for a hip alternative to their suburban or suddenly too-large ITP (Inside the Perimeter) homes, that single homebuyers and younger families will be totally priced out. ~ Excerpt from Curbed Atlanta Editorial Is The BeltLines Success Stiff-Arming Young Atlantans? - April 2014
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2703. INVESTMENT STORY /
Demographic of the Future
Gen Y Leads the Wayfor Everyone Else Young adults are the early adopters of urban living, but other groups, especially empty nesters, are following quickly behind. In the same way that young people led the way with smartphones and tablets, young adults are leading the way on new, walkable urban lifestyles.
STAGES IN ADOPTION OF URBAN LIFESTYLES
Young adults move to affordable intown neighborhoods, helping to gentrify new areas of the city
The business community responds by creating more living and amenity options in hot re-discovered areas.
Established groups like empty nesters begin to see the light. They follow young people into the now thriving area,
driving up demand and prices.
Demand for a location on the BeltLine may start with Y,
but it doesnt stop there!
As the Old Fourth Ward neighborhood quickly gentrifies, the area has begun to see a migration of not only young adults, but also of their baby boomer parents. Both groups want to be a part of the in-town BeltLine action.
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28 / BOHO4W
Sunbelt GrowthEverything about BOHO4Ws location is changing and trending up from the popularity of the Sunbelt and growth of Atlanta rents to the emergence of the BeltLine and development of creative new workplaces nearby.
Change is the law of life. And those who look only to the past or the present are certain to miss the future.
~ John F. Kennedy
A look at the numbers on domestic
migration undermines the claim that most
Americans prefer to live in and near the
dense Northeastern urban cores. People
simply continue to vote with their feet.
Since 2000, more than 300,000 people
have moved to Atlanta, Dallas, Houston,
and Charlotte; in contrast a net over two
million left New York and 1.4 million have
deserted the LA area while over 600,000
net departed Chicago and almost as many
left the San Francisco Bay region.
~ U.S. News, March 2014, Forget What the Pundits Tell You: Coastal Cities are Old News - its the Sunbelt thats Booming
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2903. INVESTMENT STORY /
Location of the Future
-
30 / BOHO4W
CNBC named Atlanta #6 on its list of 10 Best Cities for Todays College Graduates April 30, 2014
-
3103. INVESTMENT STORY /
Location of the Future
Atlanta Momentum In Multifamily, Atlanta is Leading Rent Growth vs. Top U.S. Markets
Atlanta is a Top 10 Destination for 20-34 Year-Old Migration, Ahead of other Sunbelt and Technology Hubs such as Houston, Denver, Seattle, San Jose and San Francisco
Source: CBRE-EA
Source: ULI, Emerging Trends 2014
8.7% 8.7%
7.3%7.0%
6.5%
5.5%5.2%
4.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Atlanta Dallas Denver Houston D.C. SanFrancisco
Seattle San Jose
Five
Yea
r His
toric
al M
illen
nial
Gro
wth
Forbes named Atlanta to its list of The Best Cities For New College Grads In 2013
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
2014
Ren
t Gro
wth
vs.
Pre
viou
s Ye
ar
-
32 / BOHO4W
Glen Iris DriveNo
rth Av
enue
Ralph McGill Boulevard
Freedom ParkwayPonce City Market
MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger,
Honeysuckle Gelato, Simply Seoul Kitchen
Highland Dog Training Center
The Masquerade Concert Venue
Future Beltline Entrance
GA Power Equipment Yard
Carter Center Museum and Library
Ponce D
e Leon
Avenu
e
Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF)
WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)
CDC (6,000 JOBS)
Inman Quarter MF Sushi, Bartaco,
Ford Fry's New Restaurant
Inman Park Single Family Homes and Townhomes
$450,000-$700,000
Inman Park Condos $250,000+
East Avenue Townhomes $450,000-$700,000
Single Family Homes $250,000-$400,000
4th and Swift
Dancing Goats CoffeeGekko Sushi and Lounge
Bantam Pub
Freedom Park
Two Urban Licks
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria
Parish
SerpasRathbun's
Historic Old 4th Ward Park
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria
Glen Iris DriveNo
rth Av
enue
Ralph McGill Boulevard
Freedom ParkwayPonce City Market
MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger,
Honeysuckle Gelato, Simply Seoul Kitchen
Highland Dog Training Center
The Masquerade Concert Venue
Future Beltline Entrance
GA Power Equipment Yard
Carter Center Museum and Library
Ponce D
e Leon
Avenu
e
Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF)
WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)
CDC (6,000 JOBS)
Inman Quarter MF Sushi, Bartaco,
Ford Fry's New Restaurant
Inman Park Single Family Homes and Townhomes
$450,000-$700,000
Inman Park Condos $250,000+
East Avenue Townhomes $450,000-$700,000
Single Family Homes $250,000-$400,000
4th and Swift
Dancing Goats CoffeeGekko Sushi and Lounge
Bantam Pub
Freedom Park
Two Urban Licks
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria Parish
SerpasRathbun's
Historic Old 4th Ward Park
BOHO4WBOHO4W
Micro Location In addition to BOHO4Ws sunbelt and Atlanta location, its thriving
micro-location is what makes the property so unique.
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3303. INVESTMENT STORY /
Location of the Future
Glen Iris Drive
North
Aven
ue
Ralph McGill Boulevard
Freedom ParkwayPonce City Market
MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger,
Honeysuckle Gelato, Simply Seoul Kitchen
Highland Dog Training Center
The Masquerade Concert Venue
Future Beltline Entrance
GA Power Equipment Yard
Carter Center Museum and Library
Ponce D
e Leon
Avenu
e
Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF)
WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)
CDC (6,000 JOBS)
Inman Quarter MF Sushi, Bartaco,
Ford Fry's New Restaurant
Inman Park Single Family Homes and Townhomes
$450,000-$700,000
Inman Park Condos $250,000+
East Avenue Townhomes $450,000-$700,000
Single Family Homes $250,000-$400,000
4th and Swift
Dancing Goats CoffeeGekko Sushi and Lounge
Bantam Pub
Freedom Park
Two Urban Licks
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria
Parish
SerpasRathbun's
Historic Old 4th Ward Park
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria
Glen Iris Drive
North
Aven
ue
Ralph McGill Boulevard
Freedom ParkwayPonce City Market
MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger,
Honeysuckle Gelato, Simply Seoul Kitchen
Highland Dog Training Center
The Masquerade Concert Venue
Future Beltline Entrance
GA Power Equipment Yard
Carter Center Museum and Library
Ponce D
e Leon
Avenu
e
Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF)
WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)
CDC (6,000 JOBS)
Inman Quarter MF Sushi, Bartaco,
Ford Fry's New Restaurant
Inman Park Single Family Homes and Townhomes
$450,000-$700,000
Inman Park Condos $250,000+
East Avenue Townhomes $450,000-$700,000
Single Family Homes $250,000-$400,000
4th and Swift
Dancing Goats CoffeeGekko Sushi and Lounge
Bantam Pub
Freedom Park
Two Urban Licks
N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,
Highland Bakery, Pure Taqueria Parish
SerpasRathbun's
Historic Old 4th Ward Park
BOHO4WBOHO4W
AERIAL IN PRODUCTION - FPO
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34 / BOHO4W
Micro LocationThe Atlanta BeltLine
BOHO4W is adjacent to one of the countrys boldest urban projects, the Atlanta BeltLine. This $2.8 billion sustainable redevelopment project will provide a network of public parks, multi-use trails and transit tied together by a 22-mile trail around the city.
The Eastside Trail, a 2.2 mile path from Piedmont Park to Old Fourth Ward, was completed in October 2012, and this year will attract a million visitors, the same number who comes to the Georgia Aquarium.
For BOHO4W now, the BeltLine is a key amenity that drives demand, increases exposure, and adds value. In the future, the Beltline calls for light rail lines with 45 neighborhood stops and connections to the citys MARTA rail system and the Atlanta Streetcar.
The best way to predict the futureis to create it.
~ Peter Drucker
Interesting FactThe Atlanta BeltLine all startedwith a masters thesis written in 1999by then-Georgia Tech architectureand city planning student Ryan Gravel.
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3503. INVESTMENT STORY /
Location of the Future
The Atlanta BeltLine is the most comprehensive transportation and economic development effort ever undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in the United States. The Atlanta BeltLine is a sustainable redevelopment project that will provide a network of public parks, multi-use trails and transit along a historic 22-mile railroad corridor circling downtown and connecting many neighborhoods directly to each other.
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36 / BOHO4W
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3703. INVESTMENT STORY /
Location of the Future
Micro LocationHistoric Forth Ward Park
BOHO4W is on the front row of Historic Fourth Ward Park (H4WP) and is the only apartment community with direct access to the park from the pool, which overlooks the lake and lawn. The 17-acre urban park, a $25 million investment along Atlantas BeltLine, earned the Urban Land Institutes Project of the Year award in 2013.
Park Amenities
Two playgrounds Open lawn space 2-acre lake Splash pad water feature Open-air amphitheater Wide walkways for walkers and runners Skatepark
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38 / BOHO4W
Micro LocationPonce City Market
BOHO4W is a short walk across the park to the largest adaptive reuse project in Atlantas history: Ponce City Market. The 16-acre, nearly $300 million mixed-use development restored the 1.1 million square foot former Sears Roebuck distribution center. Nearing completion, the project serves as an urban centerpiece that combines 356,000 square feet of retail and restaurants with 484,000 square feet of office space and 259 residential flats.
Project Highlights
Central Food Hall with food stalls and sit-down restaurants
Rooftop deck offering miniature golf,
games, city views, food and drink services
Bridge connection from the BeltLine
offering bike valet with shower room and tire repair
Beer garden along the BeltLine
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3903. INVESTMENT STORY /
Location of the Future
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40 / BOHO4W
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4103. INVESTMENT STORY /
Location of the Future
Micro Location28+ Authentic, Local Restaurantsand Bars within One Mile
BOHO4W residents are within walking distance of a wide range of authentic, local restaurants.
barcelona wine bar
-
42 / BOHO4W
Micro LocationWith five grocery stores within one mile, there is no difficulty for residents who prefer to grab one meal at a time.
Kroger Whole Foods Savi Provisions Publix Trader Joes
Entertainment and Cultural Amenities
The Masquerade (0.3 miles)
7 Stages Theatre (0.7 miles)
Landmark Midtown Art Cinema (0.8 miles)
Plaza Theater (0.8 miles)
Horizon Theater (0.8 miles)
Landmark Midtown Art Cinema (1.1 miles)
Fox Theatre (1.2 miles)
Dads Garage (1.7 miles)
Woodruff Arts Center (2.7 miles)
High Museum (2.7 miles)
The Carter Center (1.2 miles)
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4303. INVESTMENT STORY /
Location of the Future
-
BOHO4W offers residents Fision,
Fiber Optics by Hotwire
Basic Package
$60.00/mo. (currently included in rent)
for 50 Mbps Internet + 20 TV Channels
Internet Upgrades:
Ultimate: +$29.99/mo (100 Mbps)
Gigabit: +$99.99/mo (1 Gbps)
44 / BOHO4W
Gigabit Internet Speed: 100x Faster than Cable BOHO4W is the only apartment community in Atlanta to offer gigabit speed, and the only property on the BeltLine.
The developers of BOHO4W recognized how valuable Internet speed is to Gen Y and the propertys renter pool, and installed fiber optic cable to all units (Fiber to the Unit, or FTTU). By future-proofing the propertys infrastructure, BOHO4W is uniquely capable of handling tomorrows demands.
Top 3 Most Important Apartment Amenities:#1 In-unit washing machine#2 Bathroom not shared#3 Fast Internet
Benefits to the Resident Internet speeds over 100x faster than typical cable Access to high-speed Internet anywhere on the property,
and at H4WP Faster downloads on Hulu, Twitch, Spotify - everything
residents like More efficient uploads of large files like photos and renderings
(ideal for working from home) The clearest, sharpest picture available 3-D images that jump off the screen Instant Replay on anything residents have watched in the
last 7 hours without a replay box Wired at move-in: theres no waiting for the cable guy ever
Source: Multifamily Executive, What Residents Want
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4503. INVESTMENT STORY /
Property of the Future
3 secondsto download 100 songs
(vs. 2.75 minutes to download 100 songs w/20Mbs)
< 3 secondsto download a TV show
(vs. 2.5 minutes w/20Mbs)
7 secondsto download an HD movie(vs. 5.5 minutes w/20Mbs)
Internet Speed Comparison8MB/secondaverage internet speed offered by cable companies
25MB/secondInternet speed offered in maximum premium packages by cable companies
50MB/secondMinimum speed offered at BOHO4W
1,000 MB= 1 gigabit/secondfastest residential Internet speed and offered at BOHO4W
The Gigabit Difference
1GB
-
46 / BOHO4W
As BOHO4W is the only property in Atlanta to offer gigabit
Internet speed, the first mover on fiber broadband will
capture a number of significant quantifiable benefits.
Attract a Better Resident Profile from the Start
Avoid Costly Retrofitting
in the Future
Earn aSubmarket
Competitive Advantage
Enjoy Higher Renewal Rates 28% less likely
to move
GenerateIncreased
Income+15%
FirstMover
Advantage
-
Importance of Above-Average Broadband Increaseswith Rent up to $2,500
4703. INVESTMENT STORY /
Property of the Future
Gigabit Internet Speed: Benefits to the Investor
01. Better Resident Profile from the Start Residents who pay more rent care more about faster speeds. By being the first mover, BOHO4W will capture a healthy share of this most desirable profile.
BOHO4Ws initial 71 occupants earn on average over $78,000 per year. At a 30% rent-to-income ratio, the average resident could afford $1,950/month, which is more than $400 higher than BOHO4Ws current average rent.
02. Submarket Competitive Advantage 70% of property owners and managers said faster fiber networks
increased word-of-mouth marketing. 59% said fiber increased closing and occupancy rates.
03. Increased Income Renters will pay 15% more in rent for fiber-connected homes.
04. Higher Renewal Rates Residents in buildings with fiber are less likely to move away
than are users of other broadband technologies. 13% with fiber said they were likely to move vs. 18% with other technology.
68% of property owners and managers said they had higher
satisfaction and fewer complaints with fiber.
05. Avoid Costly Retrofitting At BOHO4W, fiber to the unit architecture is already in place,
negating the need for costly future retrofitting.
Source: BroadbandCommunities
Source: BroadbandCommunities, What Fiber Broadband Can Do for Your Community and MDU Residents Crave Fiber If They Know About It
47%
62%
63%
74%
100%
75%
44%
0% 20% 40% 60% 80% 100% 120%
$200 - $500
$501 -$1,000
$1,001 - $1,500
$1,501 - $2,000
$2,001 - $2,500
$2,501 - $3,000
Above $3,000
Residents Citing Importance of Bandwidth
Mon
thly
Ren
t
-
48 / BOHO4W
The Demand for Ultra-High-Speed Internet will Grow Dramatically
Like the demand for smart phones and
other disruptive new technologies, the
demand for ultra-high-speed Internet
services will soon dominate. BOHO4Ws
immediate position as the only apartment
in Atlanta that is offering gigabit speed
will allow the property to scoop up
surging demand.
Adoption Curve
for New Technology Products
SECTION IN PRODUCTION
include resident case studies
RESIDENT PROFILE 1cusamus estem fugitis
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RESIDENT PROFILE 1cusamus estem fugitis
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RESIDENT PROFILE 1cusamus estem fugitis
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SPREAD IN PRODUCTION - FPO
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4903. INVESTMENT STORY /
Property of the Future
-
50 / BOHO4W
With its forward-looking design of unit interiors, desirable amenities
that build community, and fiber to the unit (FTTU) broadband
infrastructure, BOHO4W is ideally positioned for the future.
-
5103. INVESTMENT STORY /
Property of the Future
Forward-LookingDesign of Unit InteriorsLeveraging recent trends of smaler unit sizes, individual units at BOHO4W allow residents to live large with well-designed, open floorplans. Residents value the amount of quality storage space incorporated in each unit. The developer paid particular attention to include:
Abundant 42 upper cabinets
Built-in desk area with upper cabinets and drawers
Island storage cabinets and built-in shelving
Counter-height seating at kitchen island
Food pantry
Built-in shelving in living area
Bathroom cabinets and linen closet
Oversized walk-in closets w/double doors
The units at BOHO4W also feature enduring desirable characteristics such as:
H4WP and skyline views
Balconies that allow residents to step outside and see the activity around them
Attractive kitchens with granite or quartz countertops
Faux wood flooring
Stainless steel or black appliances
(See page x for more details on unit interiors)
The future belongs to those who prepare for it today. ~ Malcolm X
-
Spectacular Amenities that Build CommunityBOHO4W is the only property with a pool deck overlooking Historic Fourth Ward Park. Residents appreciate the seamless access from the pool, to the park and BeltLine.
Other thoughtful features include:
Outdoor grilling, dining and lounge area
Pool cabana room
Fitness center and spin/yoga room with group exercise classes
Art studio to spur creativity
Wall of Social to keep residents connected
Cyber caf and conference room
(See page x for more details on amenities)
52 / BOHO4W
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5303. INVESTMENT STORY /
Property of the Future
-
54 / BOHO4W
The future is something that everyone reaches at the rate of 60 minutes an hour, whatever he does, whoever he is.
~ C.S. Lewis
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5503. INVESTMENT STORY /
Property of the Future
The future is coming fast, and investors who adapt ahead of the curve will reap the biggest rewards. In its visionary development, BOHO4W leverages some of the most important emerging trends in real estate today. The propertys alignment with real estates future will help BOHO4W outperform the market year after year.
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56 / BOHO4W
04. PROPERTY INFORMATION
-
5704. PROPERTY INFORMATION /
Property DescriptionADDRESS477 Wilmer Street NEAtlanta, GA 30308
LOCATIONBOHO4W is located on the Historic Fourth Ward Park, overlooking the parks amphitheater, lake and walking trails. The property is walkable to Ponce City Market, the Eastside Trail of the Atlanta BeltLine, and many restaurants, barsand nightlife.
SITE LAYOUTBOHO4W is composed of four 5-story residential buildings. A midrise podium-style building on the west side of Wilmer Street fronts the Historic Fourth Ward Park. An above-grade parking structure serves the midrise wrap-style buildings on the west side of Wilmer.
LAND AREAApproximately 3.7 acres according to Fulton County Tax Assessor records, for a density of 75 units per acre.
ZONINGMRC-3-C Mixed Residential Commercial District
ACCESS/VISIBILITY/SIGNAGEProperty access, signage and visibility are excellent. BOHO4W occupies a highly visible site from the Historic Fourth Ward Park. The property fronts Glen Iris Drive, Rankin Street and Dallas Street. Glen Iris provides quick access to North Avenue two blocks to the north and to Inman Park to the south.
PARKINGAbundant parking is provided by the parking deck (307 spaces) and podium (78 spaces), providing a total of 385 spaces, or 1.39 per unit and 1.10 per bedroom.
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58 / BOHO4W
Property DescriptionUTILITIESResidents pay their electric bill directly to the utility provider and reimburse the property for water/sewer consumption through a submetering system. Residents also reimburse the property for trash collection.
Utility/Service Provider Separately MeteredResidents
Pay DirectlyResidents Reimburse Property
Electricity Georgia Power Yes Yes No
Water/Sewer City of Atlanta Yes No Yes
Natural Gas N/A N/A N/A N/A
Cable TV Hotwire N/A Yes No
Internet Hotwire N/A Yes No
Telephone Hotwire N/A Yes No
Trash Collection N/A No Yes
JURISDICTION & TAXES
Jurisdiction Fulton County / City of Atlanta
Tax ID Number 14 -0018-0005-092-314 -0018-0005-035-2
Assessment Ratio 40% of Fair Market Value
Tax Year Calendar
Taxes Due By October 15
FLOOD ZONE
Panel Number 13121C0263G
Date Sept. 18, 2013
Flood Zone Flood Zone X
Flood Insurance Required No
-
5904. PROPERTY INFORMATION /
BUILDING DESCRIPTION
Year Completed 2014
Total Residential Units 276
Residential Rentable SF 246,464 (232,234 heated)
Average Unit Size (SF) 893 (841 heated)
Building Style Midrise wrap and podium
No. of Floors 5 story structures
Structural Framing Wood frame
First Floor Concrete slab
Exterior Materials Brick, stone, stucco, HardiePlank lap siding, steel balcony railings
Windows Single-hung, tilt sash, vinyl frame windows
Roof Structure Pitched roof with wood truss support system,plywood decking
Roof Covering Asphalt shingles and TPO membrane
Foundation Cast-in-place concrete perimeter footingsand slab on grade
MECHANICAL/ELECTRICAL/PLUMBING
Elevators 3 elevators (hydraulic)
HVAC
Each apartment is cooled and heated by a package system electric heat pump HVAC unit. Heat exchanger and air
handler units are located in interior closets, with exterior pad mounted condenser units.
Water Heater Electric-powered water heater units locatedin mechanical closets within each unit
Electrical Separately metered circuit breaker panel in each unit, copper wiring
Plumbing Supply CPVC
Plumbing Outlet PVC
Water Meter Each unit is individually metered
Fire Protection All units are sprinklered and have hard-wired smoke detectors with battery backup
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60 / BOHO4W
-
6104. PROPERTY INFORMATION /
Community AmenitiesBOHO4W offers unsurpassed amenities, including:
50 Mbps internet package included with rent,
speeds up to 1Gbps available
High-speed WiFi access at all amenities and the park
Resort-style salt water swimming pool overlooking
Historic Fourth Ward Park (only community with pool
deck overlooking park)
Pool deck offers abundant seating areas, gas grilling
stations and staircase providing park access
State-of-the-art fitness center with strength training
and cardio equipment
Separate fully-equipped spin room
Pool cabana with flat screen TVs and full kitchen
Resident art studio
Cyber cafe with Mac workstations, conference room,
flat screen TVs
Pet spa with washing stations
-
62 / BOHO4W
Grandparents
-
6304. PROPERTY INFORMATION /
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64 / BOHO4W
Resident art studio
-
6504. PROPERTY INFORMATION /
-
66 / BOHO4W
FLOORPLANS AVAILABLE IN THE DOCUMENT CENTERwww.cbremarketplace.com/boho4w
-
6704. PROPERTY INFORMATION /
Unit InteriorsBOHO4W offers a wide variety of thoughtfully-designed floorplans, maximizing usable living space and offering generous storage. All include high-end finishes with 9 and 10 ceiling heights.
KITCHENS
Choice of 3 finish packages with either quartz or granite countertops
Large undermount single-bowl stainless steel sink with goose neck faucet
Stainless steel or black ENERGY STAR appliances with built-in microwave and radiant top stove
Designer cabinetry with 42 upper cabinets, contemporary brushed nickel hardware and choice of light or dark finish
Tile backsplash
Brushed nickel track lighting
Pendant lighting over island
Vinyl wood plank flooring
Abundant storage all floorplans have pantry closet
Large islands with seating and storage shelves in many floorplans
Built-in desk with under-cabinet lighting in select floorplans
-
68 / BOHO4W
Resident art studio
Unit InteriorsBATHROOMS
Vinyl plank flooring
Linen closets
Floorplans feature garden tub or stand-up shower
Custom tiled shower and tub surround
Contemporary brushed nickel plumbing and lighting fixtures
LIVING AREAS
10 ceiling heights for first floor units, 9 on other floors
Vinyl plank flooring in kitchens, living rooms and entries
Washer/dryer connections in all units; stackable washer/dryer units provided; full-size washer/dryer units provided in about 50% of units
2 faux wood blinds
Large walk-in closets
Built in desks and bookselves (select units)
Private patios and decks ground floor units with brownstone-style steps providing street access
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6904. PROPERTY INFORMATION /
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70 / BOHO4W
Resident art studio
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7104. PROPERTY INFORMATION /
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72 / BOHO4W
Site Plan
REQUEST NATIVE FILE OF THE ABOVE FILE PULLED FROM WEB. VECTOR PREFERRED (.AI, EPS, PDF).
PRECEDING AERIAL WILL BE HI-REZ AND LABELED.
REQUEST FOR NATIVE FILE
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7304. PROPERTY INFORMATION /
AERIAL IN PRODUCTION - FPO
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74 / BOHO4W
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7504. PROPERTY INFORMATION /
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76 / BOHO4W
05. MULTIFAMILY MARKET
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7705. MULTIFAMILY MARKET /
Intown AtlantaOutperforming Overall MetroAtlanta #4 in Projected Rent Growth Over Next 5 Years
(Top 20 Markets by Inventory)
Downtown/Midtown to Outperform Metro Atlantain 5-Year Projected Rent Growth
Source: CBRE-EA 4Q-2013
3.6%
3.4%
3.3%
3.2%
3.1%
3.0%
2.8%
2.8%
2.6%
2.6%
2.6%
2.5%
2.5%
2.5%
2.4%
2.4%
2.4%
2.4%
2.3%
1.7%
1.6%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Boston
Orange County
San Diego
Atlanta
Los Angeles
Detroit
Dallas
New York
Nation
Philadelphia
Denver
Tampa
Washington, DC
Miami
Minneapolis
Oakland
Chicago
Houston
Phoenix
Seattle
San Francisco
3.1%
3.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Atlanta Downtown/Midtown
5-Ye
ar A
nnua
lized
Effe
ctiv
e Re
nt
Grow
th
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Rent ComparablesNew properties along the Beltline in Old 4th Ward and Inman Park have been met with overwhelming demand. BOHO4Ws orientation towards 1BR floorplans and FTTU broadband access ideally positions the property to appeal to the affluent Millennial renter-by-choice.
COMPETITIVE RENT SET
Property Year Built # Units Occupancy Average Unit Size Average Asking Rent Average Rent/SF
Ivy Hall 2011 110 98.0% 1,181 $1,800 $1.52
Flats at Ponce City Market 2014 259 Initial Lease-Up 921 $1,794 $1.95
SkyHouse South 2013 320 Initial Lease-Up 786 $1,762 $2.24
AMLI Ponce Park 2014 305 Pre-leasing 870 $1,574 $1.81
Post Parkside 2000 188 97.0% 885 $1,516 $1.71
AMLI Old 4th Ward 2008 337 99.0% 1,046 $1,457 $1.39
131 Ponce Midtown 2014 280 Pre-leasing 769 $1,453 $1.89
AMLI Parkside 2010 301 97.0% 896 $1,426 $1.59
Biltmore at Midtown 2002 276 97.0% 766 $1,343 $1.75
Total/Avg 2,376 97.6% 902 $1,553 $1.72
BOHO4W 2014 276 Initial Lease-Up 841 $1,534 $1.82
78 / BOHO4W
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4
5
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7
8
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7905. MULTIFAMILY MARKET /
RENT COMP MAP IN PRODUCTION - FPO
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Rent Comparables1 Bedroom Floorplans1 BR floorplans compose 73% of the units at BOHO4W. Average nominal monthly rent at BOHO4W is below the competitive set average. BOHO4W is a comparative value, considering that 50 Mbps internet is included in BOHO4W rent, a faster speed than is available at competitor properties.
BOHO4W RENTS VS. COMPETITIVE SET
Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF
SkyHouse South 158 709 $1,660 $2.34Flats at Ponce City Market 138 833 $1,600 $1.92Ivy Hall 48 961 $1,567 $1.63AMLI Ponce Park 231 852 $1,543 $1.81Post Parkside 98 834 $1,374 $1.65Biltmore at Midtown 121 776 $1,343 $1.73131 Ponce Midtown 220 667 $1,320 $1.98AMLI Parkside 114 745 $1,246 $1.67AMLI Old 4th Ward 187 868 $1,228 $1.42Total/Avg 1,315 790 $1,425 $1.80BOHO4W 201 734 $1,401 $1.91
BOHO4W
SkyHouse South
Flats at Ponce City MarketIvy HallAMLI Ponce Park
131 Ponce Midtown
AMLI Parkside AMLI Old 4th Ward
Post ParksideBiltmore at Midtown
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
600 700 800 900 1,000 1,100
Effe
ctiv
e Re
nt
Unit Size (SF)
80 / BOHO4W
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Rent Comparables2 Bedroom FloorplansAt $1,890, average 2BR rents at BOHO4W are below the competitive set average, and trail 6 of the 9 properties in the competitive
set. Average 2BR rents at Ponce City Market are $575 higher than at BOHO4W, and do not include the $40 monthly internet fee
(for 20 Mbps) or $75/space parking fee charged at that property.
BOHO4W RENTS VS. COMPETITIVE SET
Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF
Flats at Ponce City Market 73 1,316 $2,465 $1.87Post Parkside 32 1,315 $2,268 $1.73SkyHouse South 68 1,002 $2,195 $2.19Ivy Hall 57 1,386 $2,008 $1.45131 Ponce Midtown 52 1,172 $1,997 $1.70Biltmore at Midtown 48 1,199 $1,901 $1.59AMLI Old 4th Ward 150 1,269 $1,742 $1.37AMLI Ponce Park 74 924 $1,671 $1.81AMLI Parkside 154 1,072 $1,629 $1.52Total/Avg 708 1,169 $1,903 $1.63BOHO4W 75 1,131 $1,890 $1.67
BOHO4W
Flats at Ponce City Market
SkyHouse South
AMLI Ponce Park
131 Ponce Midtown Ivy Hall
AMLI Parkside
AMLI Old 4th Ward
Biltmore at Midtown
Post Parkside
$1,500
$1,700
$1,900
$2,100
$2,300
$2,500
$2,700
800 900 1,000 1,100 1,200 1,300 1,400 1,500
Effe
ctiv
e Re
nt
Unit Size (SF)
8105. MULTIFAMILY MARKET /
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Relevant Sales TransactionsStrong apartment performance, healthy employment growth, and dynamic infill submarkets have pushed recent Class AA Atlanta apartment pricing well above the $200,000/unit threshold.
192 West Paces92 West Paces Ferry RdAtlanta, GA 30305
2Elle of Buckhead235 Pharr RoadAtlanta, GA 30305
3Heights at Stillhouse3151 Stillhouse Creek DriveAtlanta, GA 30339
41160 Hammond1160 Hammond DriveAtlanta, GA 30328
MULTIFAMILY SALES COMPARABLES
82 / BOHO4W
SALES COMP MAP IN PRODUCTION - FPO
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Relevant Sales TransactionsMULTIFAMILY SALES COMPARABLES
Property Sale Date Sale Price Price/Unit Price/SF Year Built Units Seller Buyer
92 West Paces92 West Paces Ferry RdAtlanta, GA 30305
April 2014 $73,150,000 $348,333 $355 2014 210 Preserve Properties Prudential
Elle of Buckhead235 Pharr RdAtlanta, GA 30305
Jan. 2014 $106,600,000 $285,760 $309 2013 373 JLB Partners MetLife
Heights at Stillhouse3151 Stillhouse Creek DriveAtlanta, GA 30339
Feb. 2014 $71,500,000 $236,755 $219 2013 302 Worthing Southeast Bell Partners
1160 Hammond1160 Hammond DriveAtlanta, GA 30328
Under Contract
$80,300,000 $232,754 $246 2014 345 Northwood Ravin Associated Estates
8305. MULTIFAMILY MARKET /
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84 / BOHO4W
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CONFIDENTIALITY, NOTICES & DISCLAIMER
CBRE Group, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE Group, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Group, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.
This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE Group, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owners obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE Group, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE Group, Inc.
Purchaser acknowledges that CBRE is acting on behalf of Owner as exclusive broker in connection with the sale, and also acknowledges that CBRE is not the agent of the Purchaser. Purchaser agrees to pay all brokerage commissions, finders fees, and other compensation to which any broker (except CBRE) finder or other person may be entitled in connection with the sale of the Property if such claim or claims for commissions, fees or other compensation are based in whole or in part on dealings with Purchaser or any of its representatives; and Purchaser agrees to indemnify and hold harmless CBRE and Owner, their respective affiliates, successors, and assigns, employees, officers, and directors against and from any loss, liability or expense, including reasonable attorneys fees arising out of any claim or claims by any broker, finder or similar agent for commissions, fees, or other compensation for bringing about any sale of the property to Purchaser if such claim or claims are based in whole or in part on dealings with Purchaser or any of its representatives.
DISCLAIMER
2014 CBRE Group, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE Group, Inc. does not doubt its accuracy, CBRE Group, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
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THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW
www.cbremarketplace.com/boho4w
A NORTH AMERICAN PROPERTIES DEVELOPMENT