BROKER'S OPINION OF VALUE · Residents enjoy ample amenities which include: mini-blinds, kitchen...
Transcript of BROKER'S OPINION OF VALUE · Residents enjoy ample amenities which include: mini-blinds, kitchen...
BROKER'S OPINION OF VALUE
www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027
A 80 Unit ● Class C ● Multi-Family Asset3611 MURWORTH, DR HOUSTON, TX 77025
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
APARTMENTS FOR SALE
PRICE/UNIT:
PRICE/SF:
Units: 20 TERMS: ASSUMPTION
Avg Size: 525 PRO-FORMA CAP RATE:
Date Built: 1955Rentable Sq. Ft.: 10,500Acreage: 0.34Occupancy: 95%Class: B+
SALIENT FACTS:
♦ Available on an Assumption Basis ♦ The Houston Medical Center is the largest in the world!
♦ Located in the Medical Center market of Houston ♦ Huge job expansion in the area
♦ Per HCAD, the asset was remodeled in 2016 ♦ Ideal for long term hold
♦ Seller spent in excess of $30k/door on updates!
♦ Strongly updated interiors, cabinets, wiring, appliances, etc
MARKET
For More Information Please Contact:
Mark Kalil & Associates, Inc.
2001 Holcombe Blvd, # 105 | Houston, TX 77030 T 713.799.8700 | F 713.799.8703 | C 713.829.3765
[email protected] | www.markkalil.com
KET Enterprises Incorporated 4295 San Felipe, Suite 355 | Houston, TX 77027
T 713.355.4646 | F 713.355.4331 | C 713.628.9408 [email protected] | www.ketent.com
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
Asking Price Est Mkt Rent (Aug-19)
Price Per Unit Amortization (months) 3 Mo Avg
Price Per Sq. Ft. Debt Service
Stabilized NOI Interest Only Payment
Interest Rate
Date Due
Water Meter / Master RUBS Est Res for Repl/Unit/Yr
Yield Maintenance
Pitched
* 2019 Tax Valuation under protest
PRO-FORMA INCOMECurrent Street Rent with a 5% Increase $23,625 / Mo
Estimated Gross Scheduled Income $23,625 / Mo
Estimated Loss to Lease (2% of Total Street Rent) 2%
Estimated Vacancy (2% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%
Estimated Utilities IncomeEstimated Other Income $225 / Unit / Yr
Estimated Total Rental Income
ESTIMATED TOTAL PRO-FORMA INCOME $22,600 / Mo
3 Mo Avg Income Annualized
Fixed Expenses2018 Tax Rate & Future Assessment
Estimated
$1,431 per Unit $1,585 per Unit
GasTelephone
Total Utilities $694 per Unit $694 per Unit
Other Expenses
5.95% $619 per Unit includes salary for management 5.95% $807 per Unit
Total Other Expense $1,068 per Unit $1,552 per Unit
Total Operating Expense $3,193 per Unit $3,831 per Unit
Reserve for Replacement $200 per Unit $200 per Unit
Total Expense $3,393 per Unit $4,031 per Unit
Net Operating Income (Actual Underwriting)
Asking Price "As-Is" Price "All In" Price
Cap RateExisting DebtEquityEstimated Debt ServiceCash Flow
Cash on Cash47,441
139,924
4,000
63,864
$82 per Unit
21,357
283,500
271,199
$320 per Unit
$25,304
$6,396
$1,265 per Unit
Estimated Fixed Expenses
Estimated Expenses
$85 per Unit$1,700
$ per Unit
$4,828
Estimated Other Expenses
$0
92,482
1,947,000
General & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees
INCOME
Wiring:
Taxes
EXPENSE
$207,788
Fixed Expenses
80,627
31,036$16,136
4,000
Other Expenses
$260 per Unit
$256 per Unit
$241 per Unit
$ per Unit
31,700
(5,670)
13,890
$256 per Unit
$4,828Trash
Water & Sewer
$241 per Unit
Date Built
Sep '18 thru Aug '19 Expense
$320 per Unit$6,396
$22,221 2019 Tax Bill
MODIFIED ACTUALS
Copper
1955
Indiv
Existing Freddie Mac must be assumed
$0 $ per Unit $0 $ per Unit
$1,111 per Unit
$1,155 $58 per Unit $1,155 $58 per Unit
Electricity $139 per Unit$2,785
$5,121
$2,785 $139 per Unit
13,890
$5,121
95%
2%
$350
$92,482
360
$7,706.87
$300
4.75%
2019 Tax Assessment
$22,221
283,500
Est Ins per Unit per Yr
$22,500
$17,316
5/1/2027
Yes
Property Tax Information
2.53044Tax Rate (2018)
Est Future Taxes
271,199
DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to
independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD
CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the
right to withdraw this listing or change the price at anytime without notice during the marketing period.
$5,200
$0
$12,372
$1,630
$7,355
$0
1,947,000
92,482
$368 per Unit
MARKETMARKET
76,627
190,572
$400 per Unit$8,000
NOTES: ACTUALS: Income and Expenses are from owner's 2019 Tax Bill. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2018 Tax Rate & Future
Assessment. Insurance is estimated. Management Fees calculated as 6% of Gross Income, Other expenses are Estimated for the Pro Forma.
67,864
$ per Unit
98,089
Existing Loan Parameters
$1,947,000
Operating Information
Net Rentable Area
Est Future Tax Assessment $1,000,000
$878,140
2019 Taxes
Physical Information
Number of Units Mortgage Balance
59.173Units per Acre
Elec Meter
Roof Style
Avg Unit Size
Financial Information
20
525
MARKET
Insurance
Interest only until 5/2020
Estimated UtilitiesUtilities
Total Fixed Expense
Utilities
28,617
4,500
(5,670)
209 $10 / Unit / Yr
Physical Occ (Sep-19)10,500
0.34Land Area (Acres) $190,572
(5,670)
$25,304
PRO-FORMA
9/17/2019 Murworth
PROPERTY OVERVIEW
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025 Keymap: 532P
Construction Quality: B
Age: 1955 Access Gates Park & Ride Nearby Mortgage Balance
Remodeled 2016 Cable Ready Walk-In Closets Amortization Houston ISD $1.206700
Elec Meter: Indiv Club House School Bus Pick-up Interest Only Harris County $0.418580
A/C Type: HVAC-Indiv Laundry Rooms Shuttle Route Type Harris County Flood Control $0.028770
Water: RUBS Mini Blinds Patios/Balconies Assumable Port of Houston Authority $0.011550
Wiring: Copper Pool Monthly Escrow Harris County Hospital District $0.171080
Roof: Pitched Bookshelves Origination Date Harris County Education Dept $0.005190
Paving: Concrete Outside Storage Due Date City of Houston $0.588310
Materials: Brick/Wood Ceiling Fans Interest Rate Houston Community College $0.100263
# of Stories: 2
Parking: Covered Yield Maintenance 2018 Tax Rate/$100 $2.530443
Buildings: 27 Transfer Fee 2019 Tax Assessment $878,140
Units/Acre: 59.17 *In Select Units
Total $206,201
Sept 2018 $17,245 12 Mo Avg $17,183
Oct 2018 $17,245Nov 2018 $17,295Dec 2018 $17,265 9 Mo Avg $17,157
Jan 2019 $17,265Feb 2019 $17,279Mar 2019 $17,505 6 Mo Avg $17,101
Apr 2019 $16,630May 2019 $16,524June 2019 $17,504 3 Mo Avg $17,316
July 2019 $17,443Aug 2019 $17,000
Non Recourse
Yes
1%+app+legal
Yes
Yes
May-17
May-27
4.75%
ACCT NO: 0830590000005AMENITIES
$1,947,000
360
$7,707
PROPERTY INFORMATION TAXING AUTHORITY - HARRIS COUNTYEXISTING MORTGAGE
* 2019 Tax Valuation under protest
COLLECTIONS
PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.
PROPERTY HIGHLIGHTS
$16,000
$16,200
$16,400
$16,600
$16,800
$17,000
$17,200
$17,400
$17,600
The Murworth Apartments, is a two story, garden-style, apartment community located in the Medical Center submarket of Houston,Texas. The asset was built in 1955.
Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. Per seller, the asset
was extremely remodeled in 2016 including new roofs, windows, appliances, granite, cabinets, doors, electrical etc.
The Texas Medical Center is one of the largest employment generators in Houston, currently undergoing a $3 billion expansion. The area incomes are maybe 50% higher than Houston averages. In the long term, the real value here is in the land. A buyer could control this asset and in the long term, look to redevelop with a denser development. The Wall Street Journal predicts that the Houston apartment market will be the strongest in the United States for the next five years. Please ask the broker for a copy of this article and the recent Houston Chronicle article about Houston job growth! Seller recommends that the ownership entity be purchased in order to avoid a major tax bump. Per owner, as of 9/17 there is only 1 vacant unit.
Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025 Unit Mix
Unit Floor Type No. Units Sq Ft Total SqFtMarket
RentTotal Rent Rent/SF
1 Bed/1 Bath 20 525 10,500 $1,125 $22,500 $2.14
20 525 10,500 $1,125 $22,500 $2.14
UNIT MIX SEPTEMBER 2019
TOTALS AND AVERAGESTotal
Units
Average
Sq. Ft.
Total Sq.
Feet
Average
Rent/UnitTotal Rent Average Rent/ SF
Community Amenities
Apartment AmenitiesAir Conditioning Cable Ready Ceiling Fans Designer Cabinetry Dishwasher Electric Thermostat Energy-efficient Stainless Steel Appliances Full-size Washer and Dryer in Home Granite Countertops Microwave Refrigerator Some Paid Utilities Window Coverings Wood-style Flooring * In Select Apartment Homes
Controlled Access Gates Covered Parking Courtyard
PROPERTY LOCATION
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
PROPERTY LOCATION
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
RENT COMPARABLESMURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
1 Oaks of Charleston
16 Charleston Park Dr
2 Broadmead
2801 Broadmead
3 Brompton Court
7510 Brompton Rd
4 2111 Holly Hall
2111 Holly Hall
5 Terraces on Brompton
7315 Brompton
*Resident Pays E(Electric), W(Water), G(Gas)
Totals/Averages Comps 1973 85% 481 823 $1,014 $1.232
Murworth
3611 Murworth
Sub-Market Averages(Medical Center) 90% 23,972 883 $1,329 $1.505
Houston Market Avgs 89% 638,603 882 $984 $1.116
RENT COMPARABLES (2019 ADS) Sorted by Avg Rent/Unit
1.215
1970 92% 362 733 $1,086 EWG 1.481
1971
$2.1431955 95% 20 525 $1,125 EWG
90% 569 906 $1,101 EW
1.298
1973 61% 792 923 $951 EWG 1.030
1979 91% 235 763 $990 EWG
P/SF
1970 90% 448 790 $899 EW 1.138
Property Name Yr Blt Occ #Units Avg SF Avg Rent EWG
3
2
1
4
5
SALES COMPARABLESMURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
1 4115 Drake
4115 Drake
2 Aspire at 610
8900 Lake of 610
3 Equinox
2950 Old Spanish Trail
4 Advenir at the Med Center
9955 Buffalo Speedway
5 The Connection at Buffalo Pointe
10201 Buffalo Speedway
Totals/Averages Comps $38,332,800 217,933 $152,511 $186.31 2000 251
Murworth
3611 Murworth
12/16 $52,300,000 300,058 $148,580 $174.30 2012 352
4/17 $45,904,000 281,188 $151,000 $163.25 2008 304
9/16 $43,200,000 255,248 $135,000 $169.25 2001 320
7/19 $2,320,000 10,201 $145,000 $227.43 1962 16
3/19 $47,940,000 242,968 $182,977 $197.31 2018 262
SALES COMPARABLES
Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Units
MARKET 10,500 1955 20
Built
1
4
3
2
5
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
DEMOGRAPHICS
1 Mile Radius
3 Mile Radius 5 Mile Radius
2019 Estimated Population 19,226 65,727 133,3152024 Projected Population 19,784 67,557 136,6892010 Census Population 18,135 59,355 119,7512000 Census Population 17,317 53,235 109,236
Projected Annual Growth 2019 to 2024 0.6% 0.6% 0.5%Historical Annual Growth 2000 to 2019 0.6% 1.2% 1.2%
2019 Median Age 35.5 35.0 35.7
2019 Estimated Households 9,004 30,969 62,4202024 Projected Households 9,610 32,985 66,3592010 Census Households 8,106 26,648 53,4112000 Census Households 7,810 24,297 49,771
Projected Annual Growth 2019 to 2024 1.3% 1.3% 1.3%Historical Annual Growth 2000 to 2019 0.8% 1.4% 1.3%
2019 Estimated White 49.2% 55.8% 58.1%2019 Estimated Black or African American 23.8% 18.5% 15.7%2019 Estimated Asian or Pacific Islander 15.9% 16.1% 17.5%2019 Estimated American Indian or Native Alaskan 0.4% 0.4% 0.3%2019 Estimated Other Races 10.7% 9.2% 8.4%
2019 Estimated Hispanic 23.2% 23.2% 21.7%
2019 Estimated Average Household Income $140,883 $150,226 $157,5372019 Estimated Median Household Income $83,058 $89,593 $93,3432019 Estimated Per Capita Income $66,005 $70,816 $73,862
2019 Estimated Elementary (Grade Level 0 to 8) 4.3% 2.8% 2.4%2019 Estimated Some High School (Grade Level 9 to 11) 3.9% 2.9% 2.3%2019 Estimated High School Graduate 13.2% 9.7% 8.6%2019 Estimated Some College 13.5% 12.5% 13.1%2019 Estimated Associates Degree Only 4.8% 4.3% 4.8%2019 Estimated Bachelors Degree Only 26.3% 29.6% 30.0%2019 Estimated Graduate Degree 34.1% 38.3% 38.8%
2019 Estimated Total Businesses 900 3,630 13,3182019 Estimated Total Employees 7,553 39,978 272,9922019 Estimated Employee Population per Business 8.4 11.0 20.52019 Estimated Residential Population per Business 21.4 18.1 10.0
INC
OM
EE
DU
CA
TIO
N
(AG
E 2
5+
)B
US
INE
SS
HO
US
EH
OL
DS
RA
CE
AN
D E
TH
NIC
ITY
P
OP
UL
AT
ION 38%
19%
12%
8%
23%
White Black Asian Other Hispanic
$140,883
$72,073
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Subject Houston
76.8%
23.2%
Non-Hispanic
Hispanic
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
MURWORTH APARTMENTS 3611 MURWORTH DR HOUSTON, TX 77025
A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY
N/A