Cloudhaven & Sunhaven Apartments5th and 6th Avenue South | St. Cloud, MN 56304

FOR SALE | $3,920,000

Cloudhaven - 28 Units - Located at 605 15th Street South, 1416 and 1420 6th Avenue South, St. Cloud, MN 56301.Sunhaven - 12 Units - Located at 1450 5th Avenue South, St. Cloud, MN 56301.

A 40 Unit Family Housing Package

Mike Bobick, CCIM 320.333.2692mikeb@gcremn.com

*Assume Fannie Mae Loan 16.5% Down Payment!*+Significant Value Add Opportunity

*Assume Fannie Mae Loan 16.5% Down Payment!*+Significant Value Add Opportunity

The Offering

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Granite City Real Estate is proud to present Cloudhaven and Sunhaven apartments, a 40 unit investment package consisting of all 4 bedroom, 1-1/2 or 2 bath family housing units centrally located in St. Cloud, MN. The investment includes four buildings all constructed between 1987 and 1988. Rents range from $900-$1250 per unit monthly.

Until recently these buildings were occupied by students, generally only 10 months per year. As demand has changed at St. Cloud State University, these properties have been converted to family housing and the result is higher lease rates, full-time occupancy, which has resulted more stable performance.

The unit mix includes 4-two level townhome style units and the remaining 36 units are four-bedroom flats with a unique separate water closet, shower, both with doors, and double sink bathroom.

These buildings qualify for the HUD Section 8 voucher program which provides guaranteed contributions to tenant’s monthly rent. Approximately 75% of the tenancy participates in this program.

The investment is being offered at $3,920,000, which is a 7.78% “going in” capitalization rate, assuming an overall vacancy of 6.6%. There is existing Fannie Mae financing on 28 of the units which the seller will require to be assumed with the purchase (makes the down payment 16.5%).

Cloudhaven28 Units

Cloudhaven28 Units

Sunhaven12 UnitsSunhaven12 Units

This information has been obtained from the property owner or other sources that we deem reliable. However, neither the owner, nor Granite City Real Estate LLC guarantees the accuracy of such information.

St. Cloud Area Demographic & Economic Profile

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St Cloud Hospital/CentraCare Health 7,748 Healthcare Sherburne County 678 County AdminState of Minnesota* 2,293 State Admin Sauk Rapids-Rice School District #47 649 EducationSt. Cloud VA Health Care System 1,780 Healthcare City of St. Cloud 608 City AdminSt. Cloud Area School District #742 1,157 Education Coldspring 606 Granite QuarryCoborn's, Inc. 721 Grocery Anderson Trucking 603 LogisticsPilgrim's-formerly GNP Company 1,250 Poultry Alltran 597 Call CenterStearns County 955 County Adm Essilor of America 550 Optical lens manufCollege St. Benedict/St. John's University 935 Education Sartell-St.Stephen School District #748 500 EducationNew Flyer of America 763 Manufacturing Wolters Kluwer Financial Services 490 FinancialKnife River Corporation - North Central 700 Mining\trucking Bluestem Fulfillment, Inc. 471 Mail orderCapital One 360 695 Financial Woodcraft Industries 409 Millwork Bernick's 680 Bottling American Axle & Manufacturing 387 Manufacturing

Major Employers

*Includes St. Cloud State University

The greater St. Cloud region is among the fastest growing in the State of Minnesota and is the largest population center in the central region of the state. One unique aspect of the St. Cloud region is that it spans three countries, all of which are among the largest and fastest growing in the state of Minnesota.

The St. Cloud area has earned recognition as a great place to do business. Entrepreneur magazine listed St. Cloud among the “Top 10 Mid-sized Cities in the Nation for Small Businesses” and Forbes included the area in its 2010 Top 200 list of “Best Small Cities for Business and Careers.” Minnesota Business magazine referred to the I-94 region from St. Cloud to the Twin Cities as “The Golden Corridor” due to the area’s stable economy and continuous business and residential development.

• A large regional hub with an excess of 30,000 daily commuters into the city for work.• Located one hour northwest of Minneapolis/St. Paul.• St. Cloud Regional Airport is served by Allegiant and Sun Country Airlines.• Northstar Commuter Rail link with daily service to downtown Minneapolis from St. Cloud.

Our Regional Economy:Annual Job Growth (2010-2018) - 15.6%GDP Growth (2014-2018) - 12.2%Cost of Living (2018) - 4% lower than state average

Our Workforce

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Employment by Sector (2018):• Healthcare and Social Services - 29.473• Manufacturing - 25.634• Education - 15.843

Labor Force Participation Rate (2017) = 73.3%Projected Population Growth (2010-2017) = 32.6%Projected Workforce Growth (2015-2030) = 3.9%Number of College Students (2018-2019) = 24.790

Global Companies:• Arctic Cat• Capitol One• Coldspring• DeZURIK

• Geringhoff• New Flyer• Pilgrim’s Pride• Quanex/Woodcraft

Logistics:• Roadways: MN Highways 10, 15 and 23; Interstate 94.• Rail: BSNF, CP Rail, Northstar Commuter Train, Amtrak Train.• Air: St. Cloud Regional Airport, MSP International Airport.

Property Details

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Address: 605 15th St S, 1450 5th Ave S1416-1420 6th Ave S,

Year Built: 1987-1988

Land Area: 89,720 square feet2.059 acres

Floors:

Parking:

3 Floors4 Buildings

83 stalls

Average Unit Size:

Projected NOI:

1380 SF

$304,834

County: Stearns

Construction: Three-story wood built construction

Property IDs: 82.44703.0000, 82.44703.000182.44706.0000, 82.44694.0000

Units:

Elevators:

40 Total4-bedroom Units

None

Property Type:

Pricing:

High Density Multifamily

$3,920,000$98,000/unit

Property Details

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Building Addresses: Number of Units Square Footage/Unit Bldg Gross SFCloudhaven 605 15th St. S. 8 1380 10,314Cloudhaven 1416 6th Ave. S. 8 1380 10,396Cloudhaven 1420 6th Ave. S. 12 1380 15,112Sunhaven 1450 5th Ave S. 12 1370 15,000

Building 605 15th St. S. 1416 6th Ave. S. 1420 6th Ave. S. 1450 5th Ave. S Parking 12 12 28 31Exterior steel/brick steel/brick steel/brick vinyl/brickWater heaters (all natural gas) 2013 2013 2013 2019

Features

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Construction: • Foundation: Poured concrete footings/ concrete block• Structural framing: Wood frame• Roof: Pitched roof, asphalt shingles• Entry doors: Hollow core metal storefront type with glass• Windows: Metal or vinyl clad sliders • HVAC: Gas-fired hot water boilers provide radiant heat and wall sleeve

air conditioning units. Boilers are plumbed with backup circulation pumps. Units are also equipped with wall hung dehumidifiers

• Electrical: Copper, 100 amp per apartment. Circuit breakers• Plumbing: Copper supply lines, PVC drain lines

Kitchens:• Appliances: Electric range/oven, dishwasher and refrigerator• Countertops: Laminate• Cabinets: Pre-manufactured mill cabinetry• Sink: Double stainless steel sink• Lighting: Ceiling Mounted Fluorescent

Bathrooms:• Bathtub/Shower: Integrated acrylic shower/tub• Sink/Vanity: Inset porcelain in laminate counter• Lighting: Wall mounted• Wall mounted dehumidifiers

Additional Interior:• Carpet and Vinyl flooring.• Eight foot ceilings.

Laundry:Common area laundry rooms, coin operated. Some machines are leased.

Fire Safety:Hallway mounted strobes and exit lighting throughout.

Utilities:Heat,water and trash are included in base rent.• Gas: Xcel Energy• Electricity: Xcel Energy• Water/Sewer: City of Saint Cloud• Cable/TV: Several options

Financial SummaryCloudhaven

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CLOUD HAVEN 8 Month Trailing & 12 Month Extrapolation28 Units

Aug-19 Sept Oct Nov Dec 20-Jan Feb Mar 8 month T12 ForecastRENTAL INCOME ActualRental income unit 33,880 33880 33880 33720 33680 33680 33680 33680 270,080 405,120 Rental vacancy unit -4600 -4600 -4600 -4440 -4400 -3300 -3300 -3300 -32540 (34,435) 8.50%Loss/gain to market -506 -506 -506 -506 -406 -506 -506 -486 -3928 (5,892) Rental allowance -25 0 0 0 0 -47 0 0 -72 (108) Total rental income 28,749 28774 28774 28774 28874 29827 29874 29894 233,540 364,685 Total OTHER INCOME 806 2 923 412 164 863 381 -76 3,475 5,213 Total operating income 29,555 28,776 29,697 29,186 29,038 30,690 30,255 29,818 237,015 369,898 EXPENSE Total WAGES AND PAYROLL TAXES 0 730 2560 732 1003 155 729 729 6638 9,574 Total ADMINISTRATIVE EXPENSES 2097 1721 1559 2913 1901 4319 1675 2186 18371 25,993 Total REPAIRS AND MAINTENANCE 853 1829 2623 5393 2977 2627 5371 4094 25767 36,011 Total UTILITIES 5844 739 6279 1644 7900 2637 7363 2167 34573 51,860 Property insurance 958 958 958 958 958 958 958 958 7664 11,496 Total OTHER OPERATING EXPENSE 3776 3090 3090 3090 3090 3090 3090 3890 26206 37,080 TOTAL OPERATING EXPENSE 160,517 $5,732/u/yNOI – net operating income 209,381

PURCHASE SCENARIO

Cloudhaven Purchase Price 2,744,000 Fannie Mae Assumption 2,332,249 Down payment 15.00% 411,751 Net Operating Income 209,381 Annual Debt Service 156,929 Cash Flow 52,452 Cash on Cash Return 12.74%Capitalization Rate 7.6%

Fannie Mae Assumption: 5.3% interest, 30 yr amortization, 10 yrs fixed, 8 yrs left in term, non-recourse

Financial SummarySunhaven

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SUNHAVEN 8 Month Trailing & 12 Month Extrapolation12 Units

Aug-19 Sept Oct Nov Dec Jan-20 Feb Mar 8 mo 12 ForecastRENTAL INCOMERental income unit 14,400 14400 14460 14400 14400 14400 14400 14400 115,260 172,890 Rental vacancy unit 0 0 0 0 0 -1200 -1200 -1200 -3600 (3,600) 2.10%Loss/gain to market -300 -300 -200 -210 -150 -100 -100 -100 -1460 (1,460) Total rental income 14,100 14100 14260 14190 14250 13100 13100 13100 110,200 167,830 Total/OTHER INCOME 159 36 886 1122 12 902 195 11 3,323 4,985 TOTAL OPERATING INCOME 14,259 14,136 15,146 15,312 14,262 14,002 13,295 13,111 113,523 172,815 EXPENSETotal WAGES AND PAYROLL TAXES 330 338 0 338 387 419 656 508 2976 4,464 Total ADMINISTRATIVE EXPENSES 789 710 706 1291 1182 952 2236 3410 11276 10,483 Total REPAIRS AND MAINTENANCE 2328 2177 3784 3228 1207 1512 2567 962 17765 24,399 Total UTILITIES 1747 675 3073 1512 2454 1398 3194 1218 15271 21,639 Total OTHER OPERATING EXPENSE 1364 1364 1364 1364 1364 1364 1364 1364 10912 16,368 TOTAL OPERATING EXPENSE 77,353 $6,446/u/yNOI – net operating income 95,462

PURCHASE SCENARIOSunhaven Purchase Price 1,176,000 Annual Debt-80%, 4.15%, 25 yr 60,529

940,800 Down Payment 20% 235,200 Net Operating Income 95,462 Annual Debt Payment 60,529 Cash Flow 34,933 Cash on Cash Return 14.9%Capitalization Rate 8.1%

Combined Summary

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CLOUDHAVEN / SUNHAVEN INVESTMENT PACKAGE SUMMARY

PRICE 3,920,000 Down Payment --16.5% 646,951 Projected Net Operating Income 304,843

Sunhaven Annual Debt Payments -80%, 4.15%, 25 yr 60,529 (Assuming an 80% LTV @ 4.15% interest 25 yr amortization)Cloudhaven Fannie Mae Annual Payments 156,929 (Existing loan assumption P&I)

Total Annual Debt Service 217,458 Cash Flow 87,385 Cash on Cash Return 13.51%Capitalization Rate 7.78%

Investment Highlights

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Outstanding Upside by Bringing All Units To Market RentsMaximize the income potential present by bringing rents that are below market rate to market. The $1,220 market rents have already been proven out in most units

More than $312,000 in Potential Value Creation

Amenity Units Cost Per Unit

Total Cost

Monthly Average Premium / Unit

Total Monthly

Total Yearly

Added Value at 7% Cap Rate

Bring below market rent units to market rate

9 $0 $0 $41 $1,146 $13,752 $196,457

Implement Water Conservation at Cloudhaven

28 $314 $8,800 $9.12 monthly savings / unit

$255 $3,063 annual savings

$43,757

Rent Out Storage Units 4 $0 $0 $30 $120 $1,440 $20,541

Vending Machines 6 $800 $4,800 N/A $300 $3,600 $51,458

TOTAL $13,600 $1,971 $17,877 $312,243

Opportunity to Add Value by implementing Water Conservation Efforts

Decrease water utility bills by implementing low flow toilets, aerators and low flow shower heads. Over $3,063 per year would be saved by doing so.

Revenue Growth Available Through Implementation of rentable storage units4 Storage units are present on the property and are not currently being utilized. By renting these storage units out $1,440 in additional revenue can be realized.

Additional Revenue Generated Through Vending Machines

Three of the buildings are set up for vending machines. By simply purchasing the machines an additional revenue generator can be realized

3900 Roosevelt Road #125 | St. Cloud, MN 56301Office: 320.253.003 Fax: 320.253.006www.gcremn.com

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Mike Bobick, CCIM 320.333.2692mikeb@gcremn.com