DEL REY TERRACE - LoopNet

OFFERING MEMORANDUMPRESENTED BY FRANKLIN STREET

DEL REY TERRACE1616-1618 East Moore Street, Valdosta, GA 31601

DEL REY TERRACE APARTMENTS I VALDOSTA, GEORGIA

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CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest into the acquisition of the Subject Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner or the Property, 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 or Franklin Street Real Estate Services, LLC. 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 all interested and qualified prospective purchasers. Neither the Owner or Franklin Street Real Estate Services, LLC. , nor any of their respective directors, officers, affiliates or representatives are making 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 own investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase 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 obligations therein have been satisfied or waived.

By receipt of the 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 the Franklin Street Real Estate Services, LLC. Furthermore, you agree not to use this Memorandum or any of its contents in a manner detrimental to the interest of the Owner or Franklin Street Real Estate Services, LLC.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 so advised and expected to review all such summaries and other documents of whatever nature independently and not to rely on the contents of this Memorandum in any manner.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR FRANKLIN STREET REAL ESTATE SERVICES, LLC AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTED BY:

Jim ReedDirector, Multifamily Investment [email protected]

mailto:Jim.Reed%40FranklinSt.com?subject=

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CONTENTSInvestment Overview

Asking Price & Salient FactsExecutive Summary & Investment HighlightsProperty PhotosProperty Survey

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Area OverviewDemographicsLocal Retailer Map

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Financial AnalysisSite Plan & Rent Roll Income & Expenses

16

Rent & Sales ComparblesRent Comparables MapRent ComparablesRent Comp Graphs Sales Comparables MapSales ComparablesSales Comp Graphs

20

About Franklin Street Fast FactsOur ServicesMarketing TimelineMarketing CapabilitiesTestimonialsOur Locations Investment Sales Team

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INVESTMENT OVERVIEW


6 INVESTMENT OVERVIEW | AREA OVERVIEW | FINANCIAL ANALYSIS | COMPARABLES | ABOUT FRANKLIN STREET

Asking Price: $750,000

Price per Unit: $28,846

Price per Sq Ft: $34.67

Current Occupancy: 69.23%

AREA

1616-1618 East Moore StreetValdosta, GA 31601

Lowndes County

PARCEL/FOLIO:

0155A-147 & 0155A-148

PRICING SUMMARY

ASKING PRICE & SALIENT FACTS

Year Built: 1993

Rentable SF: 21,630 SF

Lot Size: 1.38 Acres

Type of Ownership: Fee Simple

Parking: 44 Spaces

Wall Score R : Car Dependent (22)

SITE DESCIRPTION

Framing: Wood Frame

Exterior Wall: Composite Siding

Roof Structure: Wood Truss

Roof Cover: Asphalt Shingles

HVAC: Central Heat & Air Conditioning

CONSTRUCTION DETIAL

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INVESTMENT OVERVIEW | AREA OVERVIEW | FINANCIAL ANALYSIS | COMPARABLES | ABOUT FRANKLIN STREET

PROPERTY SUMMARY

Franklin Street is pleased to present Del Rey Terrace Apartments, a 26-unit multi-family

property located in Valdosta, Georgia. The property consists of two two-story apartment

buildings, one with twenty units and the other with six units.

Del Rey Terrace is located just off North Forest Street on the north side of Valdosta. Nestled

in a quiet and safe residential neighborhood, the property has all two-bedroom, one

bathroom units. The twenty Units in the 1616 E. Moore Street building are all 822 square

feet and the six units in the 1618 E. Moore Street building are 865 square feet each.

The spacious units feature ceramic tile throughout, central heat and air and modern

appliances. Appliances and interiors have been upgraded over the last several years.

The property has undergone continuous maintenance and renovation by the current owner,

including new composite siding, new gutters and downspouts, new trim, windows and

doors, as well as the in-suite amenities. Both buildings had roof replacements in 2013. All

maintenance on the units, building and grounds are kept current, so there is no deferred

maintenance.

This is a value add offering, with the opportunity to reduce vacancy to the market level

of ten percent. Units are currently $30 to $60 per month below market rates, affording

the investor immediate upside. A local presence and effective advertising will boost the

occupancy to market levels and with rent at market equivalent, the investor can double

the current NOI.

INVESTMENT HIGHTLIGHTS

• Value Add Opportunity

• All Two Bedroom / One Bath Units

• Tenants Pay All Utilities

• Roof Replacement in 2013

• New Siding, Gutters, Downspouts, Windows, Doors and Trim

• Below Market Rents

• Washer / Dryer Hookups in All Units

• French Doors Open to Balcony or Patio in Each Unit

• Modern Kitchens

• Ceramic Tile Throughout

EXECUTIVE SUMMARY & INVESTMENT HIGHLIGHTS



PROPERTY PHOTOS

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PROPERTY SURVEY

AREAOVERVIEW



1 MILE 3 MILE 5 MILE

Population

Census Population (2000) 9,848 42,105 55,956

Census Population (2010) 10,811 48,512 65,546

Estimated Population (2016) 11,032 50,086 68,033

Projected Population (2021) 10,700 48,488 65,789

Households

Census Households (2000) 3,568 16,178 21,205

Census Households (2010) 3,956 18,329 24,758

Estimated Households (2016) 4,154 19,550 26,634

Projected Households (2021) 4,453 20,872 28,420

Income

Estimated Per Capita Income $13,664 $16,618 $19,463

Estimated Median Household Income $28,791 $30,713 $36,166

Estimate Average Household Income $36,087 $41,848 $49,040

DEMOGRAPHICS

1 MILE

3 MILE

5 MILE

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LOCAL RETAILER MAP

FINANCIAL ANALYSIS

2 BR 1 BATH (1616)

2 BR 1 BATH (1618) CURRENT MONTHLY GROSS POTENTIAL RENT

$12,450

CURRENT ANNUALGROSS POTENTIAL RENT

$149.400

PRO FORMA MONTHLY GROSS POTENTIAL INCOME

$13,630

PRO FORMA ANNUAL GROSS POTENTIAL RENT

$163,560



# OF UNITS UNIT TYPE SQUARE FEET

CURRENT RENT

MONTHLY INCOME $/SF PRO FORMA

RENT PF RENT/SF PF RENT INCREASE

20 2BDR 1BATH (1616 BLDG) 822 $465 $9,300 $0.57 $518 $0.63 11.40%

6 2BDR 1BATH (1618 BLDG) 865 $525 $3,150 $0.61 $545 $0.63 3.81%

TOTALS/AVERAGES: 21,630 $12,450 $363,570 $524.23 $0.63 9.48%

UNIT MIX

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INCOME

Gross Potential Rent

Application Fees

Cleaning/Damage Income

Late Fees

Total Other Income

Gross Potential Income

Economic Loss

Market Vacancy (-)

Loss to Lease (-)

Concessions (-)

Bad Debt (-)

Total Economic Loss

Effective Gross Income (EGI)

EXPENSES

Taxes

Insurance

House Utilities

Maintenance & Repairs

Landscape Maintenance

Management Fees

General & Administrative

Marketing & Leasing

Professional Fees

Total Expenses

NET OPERATING INCOME (NOI)

CURRENT% PER UNIT TOTAL

$6,290.77 $163,560

0.15% $10 $250

0.31% $19 $500

0.06% $4 $100

0.52% $33 $850

$6,323 $164,410

10.00% $629 $16,356

2.00% $126 $3,271

2.00% $126 $3,271

1.00% $63 $1,636

-15.00% $(944) $(24,534)

$5,380 $139,876

7.12% $383 $9,956

5.47% $294 $7,650

1.07% $58 $1,500

9.29% $500 $13,000

1.43% $77 $2,000

8.00% $430 $11,190

0.36% $19 $500

0.71% $38 $1,000

0.36% $19 $500

35.53% $1,911 $49,696

$3,468 $90,180

INCOME & EXPENSES PROFORMA

RENT & SALESCOMPARABLES

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1

2

3

54

6

Total Units 20

Occupancy 69%

Year Built 1972

Amenities Dishwasher; Washer/Dryer hookups

Utililties Tenants pay all utilities

Unit Mix:

1616 - 1618 MOORE STVALDOSTA, GA 31601

DEL REY TERRACE APTS

RENT COMPARABLES MAP

2 BR 1BATH 20 822 $465 $0.57

2 BR 1BATH 8 865 $525 $0.61

TOTAL/AVG 26 832 $479 $0.58

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2 31

RENT COMPARABLES

TREELOFT APARTMENTS SETH PLACE CUMBERLAND COURT

Address 1615 WILLIAMS ST 2415 SETH PLACE 8 MEADOW RUN CIR

VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602

Total Units 20 56 58

Occupancy 82% 95% 70%

Year Built 1972 2007 1985

AmenitiesDishwasher; Washer/Dryer

hookups (3 BR only)Washer/Dryer Hookups; Town-

house Washer/Dryer Hookups

UtililtiesWater & Sewer included;

Tenants pay electric Tenants pay all utilities Tenants pay all utilities

Unit Mix 1 BR 1BATH 12 600 $437 $0.73

3 BR 2BATH 8 1,250 $709 $0.57

TOTAL/AVG 20 860 $546 $0.63

2 BR 2.5BATH 56 1,205 $595 $0.49

TOTAL/AVG 56 1,205 $595 $0.49

1 BR 1BATH 2 850 $458 $0.54

2 BR 1BATH 56 928 $575 $0.62

TOTAL/AVG 58 925 $571 $0.62

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64 5

RENT COMPARABLES CONT.

NORTHSIDE APARTMENTS LEMAN’S APARTMENTS RAMBLEWOOD

Address 411 NORTHSIDE DR 415 NORTHSIDE DR 3131 N OAK ST

VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602

Total Units 64 56 80

Occupancy 95% 90% 90%

Year Built 1970 1972 1984

Amenities None Dishwasher Washer/Dryer hookups

Utililties Water & Sewer included in rentWater & Sewer, trash & pest

control included in rent

Unit Mix 1 BR 1BATH 12 600 $437 $0.73

3 BR 2BATH 8 1,250 $709 $0.57

TOTAL/AVG 20 860 $546 $0.63

1 BR 1BATH 12 600 $437 $0.73

3 BR 2BATH 8 1,250 $709 $0.57

TOTAL/AVG 20 860 $546 $0.63

1 BR 1BATH 12 600 $437 $0.73

3 BR 2BATH 8 1,250 $709 $0.57

TOTAL/AVG 20 860 $546 $0.63

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RENT COMP GRAPHS

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00% 84.46%

Occupancy Rates

0200400600800

100012001400

904

Average Unit Size

$0$100$200$300$400$500$600 $555

Average Asking Rent

$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90

$0.63

Rent per Square Foot

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SALES COMPARABLES MAP

1

23

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2 3

DEL REY TERR APTS CUMBERLAND COURT COURTYARD ON PARK WOODLANDS

Address 1616 - 1618 E MOORE ST 8 MEADOW CT 1425 PARK AVE 200 W CRANFORD AVE

VALDOSTA, GA 31601 VALDOSTA, GA 31602 VALDOSTA, GA 31602 VALDOSTA, GA 31602

Sale Date: On Market May-17 April-16 February-16

Total Units: 26 58 56 29

Sale Price: $750,000 $2,550,000 $1,500,000 $775,000

Price/Unit: $28,846 $43,966 $26,786 $26,724

Price/Sq Ft: $34.67 $49.07 $26.79 $40.79

Year Built: 1993 1985 1968 1977

Occupancy: 90% 93% 88%

CAP Rate: 11.5% on Current Income 2.62% Reported

Unit Mix: 20 2Bdr 1Bath (1616 Bldg)6 2Bdr 1Bath (1618 Bldg)

2 1Bdr 1Bath56 3Bdr 1Bath

16 1Bdr 1Bath32 2Bdr 2Bath8 3Bdr 2Bath

29 1Bdr 1Bath

1

SALES COMPARABLES

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SALES COMP GRAPHS

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

Price Per Square Foot

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Price Per Unit

ABOUTFRANKLIN STREET

ABOUTFRANKLIN STREET

TRANSACTION VOLUME

Closed Transactions: Investment Sales, Insurance

Franklin Street Offices

Clients Represented: Tenant, Landlord, Management, and Valuation

MultifamilyRetailIndustrialOffice

MARKET EXPERTISE

$507,084,512FAST FACTS

30 MILLION SFOF COMMERCIAL PROPERTY

REPRESENTATION OF70 RETAILERS IN 9 STATES

LOCAL, REGIONAL, AND NATIONAL CLIENTS

MORE THAN $500 MILLIONIN LOAN ORIGINATIONS

2016 TENANT TRANSACTIONS TOTALING $42+ MILLION OFFICE AND INDUSTRIAL


PROPERTY MANAGEMENT 7.8 MILLION SQUARE FEET

ALL ASSET TYPES THROUGHOUT THE U.S.

$10+ BILLION IN VALUATIONS6,500 ASSIGNMENTS COMPLETED

LANDLORD REPRESENTATION13 MILLION SQUARE FEET


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ACHIEVING RESULTS THROUGH

COLLABORATION

OUR SERVICES



LANDLORD REPRESENTATION

We increase value for investor clients by first creating a strategic leasing plan that matches the investment strategy for the asset, then proactively implementing it by engaging the market and actively sourcing tenants.

INSURANCE SERVICES

Our insurance division supports clients with an in-depth knowledge of the property and casualty challenges and opportunities faced by property owners today.

MANAGEMENT SERVICES

We maximize asset value through comprehensive management and accounting operations for office, industrial, retail and multifamily product types. By integrating this platform at the local market level, we also deliver seamless one-stop services for mixed-use projects.

INVESTMENT SALES

Through expert knowledge of specific real estate and capital markets, our investment sales division is able to generate effective results impacting income-producing assets, all designed to increase value and deliver maximum results for the owner.

VALUATION ADVISORY

We provide valuation, consultation, litigation and expert witness services for all property types, specializing in commercial real estate. Our clients value our extensive market knowledge, long-term relationships with key market participants and superior analytics.

TENANT REPRESENTATION

Our group partners closely with clients to create, implement, and deliver a strategic plan for space development and optimal market positioning.

CAPITAL ADVISORY

Our capital division specializes in debt and equity placement through established partnerships with Banks, CMBS, Life Companies, Agency, Bridge, Mezzanine, and JV Equity Investors.

TAMPA600 N Westshore Blvd. Suite 600Tampa, FL 33609Phone: 813.839.7300Fax: 813.839.7330

FT. LAUDERDALE900 S Pine Island RoadSuite 310Plantation, FL 33324 Phone: 954.640.1100Fax: 954.640.1101

MIAMI6205 Blue Lagoon DriveSuite 280Miami, FL 33126

Phone: 786.292.3188Fax: 786.269.2318

ORLANDO390 N Orange AvenueSuite 2300Orlando FL, 32801

Phone: 407.458.5400Fax: 407.264.8160

[email protected]

Phone: 904.271.4120Fax: 904.899.5890

JACKSONVILLE7751 Belfort Parkway Suite 110

Jacksonville, FL 32256

ATLANTA3384 Peachtree Road NESuite 650Atlanta, GA 30326

Phone: 404.832.1250Fax: 404.842.1755

OUR LOCATIONS

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FranklinSt.com

EXCLUSIVELY LISTED BY

FRANKLIN STREET RETAILINVESTMENT SALES TEAM

Jim [email protected]

Greg MatusSr. Vice President, Investment Sales954.671.1821

[email protected]

https://franklinst.com/our-services/business-lines/investment-sales/our-team

Kurt KeatonPresident, Real Estate [email protected]

Hernando PerezDirector, Investment Sales786.245.0499 [email protected]

Dan DratchAssociate, Investment [email protected]

Darron Kattan *FS Broker of Record in GAManaging Director813.658.3355 [email protected]

Zachary AmesDirector813.288.6676 [email protected]

Robert GoldfingerManaging Director813.658.3353 [email protected]

Ricky JonesDirector404.991.3446 [email protected]

Kevin KelleherSenior Director813.658.3358 [email protected]

Matthew KestersonSenior Director904.271.4120 Ext: [email protected]

Jake ReidSenior Director404.832.1255 [email protected]

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