EXCLUSIVE OFFERING - LoopNet€¦ · Omaha, NE 68107 SECTION 42 LIHTC RESTRICTIONS Placed in...

The Village at Omaha36 Units | 3007 W Street | Omaha, NE 68107

EXCLUSIVE OFFERING

2VILLAGE AT OMAHA | 36 UNITS

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IN COOPERATION WITH

Mike ElliottEnergy Real Estate Solutions, LLCManaging Principal701-713-6606 (direct)[email protected]

6225 North Meeker PlaceSuite 210Boise, ID 83713

John Nicolas800.840.3021 (phone)208.891.8901 (direct)888.506.2771 (fax)[email protected]

Jordan Skyles800.840.3021 (phone)208.631.4981 (direct)888.506.2771 (fax)[email protected]

Jeff Irish800.840.3021 (phone)208.286.5013 (direct)888.506.2771 (fax)[email protected]

Brandon Grisham800.840.3021 (phone)253.653.3313 (direct)888.506.2771 (fax)[email protected]

ww.lihtcadvisors.com


The Village at Omaha36 Units

3007 W StreetOmaha, NE 68107

Table of Contents

PROPERTY OVERVIEW

DescriptionArea Highlights

SummaryArea Maps

FINANCIAL ANALYSIS

Income & ExpensesCash Flow Summary

Unit MixIncome & Rent Limits

Historical AMI, MAX Rent, & FMR

COMPARABLE PROPERTIES

Rent Comparables MapRental & Occupancy Statistics

Rent Comparable Details

LOCATION OVERVIEW

Market Highlights


Property Overview

HIGHLIGHTS

• Existing LIHTC Property Consisting of Single-Family Homes and Duplexes on Individual Tax Parcels

• Excellent AMI Growth in Douglas County with a 19.27% Increase Since 2016

• Home to Four Fortune 500 Companies and Five Fortune 1,000 Companies with the Largest Industries in Military and Healthcare

• Existing HOME Loan can be Assumed


The Village at Omaha is a 36-unit affordable housing community located in South Omaha, NE. The property is comprised of 20 single family homes, and 8 duplexes. Residents enjoy access to major shopping areas, dining, and interstates, as well as peaceful surroundings and an array of amenities.

The property was built in 2006 under the Section 42 Low Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place which requires 35 units to be rented to income qualifying residents earning no more than 40%, 45%, 45% HOME, 50%, and 50% HOME of Area Medium Income (AMI) limits, which are provided by the Nebraska Housing Authority. The remaining unit is unrestricted and reserved for the on-site manager. The property is still within its initial tax credit compliance period. Please see the Property Summary page or Unit Mix page for further details.

Omaha is the largest city in the state of Nebraska and the county seat of Douglas County. The nation’s 40th-largest city, Omaha’s 2018 estimated population was 466,061. The Omaha Metropolitan Area is the 59th largest in the United States, with an estimated population of 944,316 (2018).

Today, Omaha is the home to the headquarters of four Fortune 500 companies: mega-conglomerate Berkshire Hathaway; one of the world’s largest construction companies, Kiewit Corporation; insurance and financial firm Mutual of Omaha; and the United States’ largest railroad operator, Union Pacific Corporation. Omaha is also the home to five Fortune 1000 headquarters: Green Plains Renewable Energy, TD Ameritrade, Valmont Industries, Werner Enterprises, and West Corporation. Also

headquartered in Omaha are the following: First National Bank of Omaha, the largest privately held bank in the United States; three of the nation’s largest 10 architecture/engineering firms (DLR Group, HDR, Inc., and Leo A Daly; and the Gallup Organization, of Gallup Poll fame, and its riverfront Gallup University.

Tourist attractions in Omaha include history, sports, outdoors, and cultural experiences. Its principal tourist attractions are the Henry Doorly Zoo and the College World Series. The Old Market in Downtown Omaha is another major attraction and is important to the city’s retail economy. Omaha has a number of famous historical accolades. In 1883 Omaha hosted the first official performance of the Buffalo Bill’s Wild West Show for 8,000 attendees. In 1898 the city hosted more than 1 million visitors from across the United States at the Trans-Mississippi and International Exposition, a world’s fair that lasted for more than half the year.

NEIGHBORHOOD AMENITIES

• The Salvation Army Omaha KROC Center (0.2 miles)

• Upland Park (0.4 miles)• Highland School (0.6 miles)• Metropolitan Community College-

South Omaha (1.0 mile)• ALDI (1.5 miles)• Gateway Elementary School

(1.7 miles)• Walgreen’s (2.2 miles)• Dollar General (2.5 miles)• Omaha’s Henry Doorly Zoo (3.8 miles)

LOCATION HIGHLIGHTS

• Population: 466,061• Headquarter to four Fortune

500 companies and five Fortune 1000 companies

• Located along the border of Nebraska and Iowa on the Platte River

TOP EMPLOYERS (Estimated No. Employees)

• Offutt Air Force Base (7,000+)• CHI Health (7,500+)• Omaha Public Schools (5,000-7,499)• Methodist Health System (5,000-7,499)• Nebraska Medical Center (5,000-7,499)• University of Nebraska Medical Center

(2,500-4,999)• First Data (2,500-4,999)• Union Pacific (2,500-4,999)

Property & Area Highlights


NAME & LOCATIONProperty Name The Village at OmahaProperty Address 3007 W Street

Omaha, NE 68107

SECTION 42 LIHTC RESTRICTIONSPlaced in Service 2006End of Initial Compliance Period 12/31/2021End of NIFA Compliance Period 12/31/2031End of Extended Use Period 12/31/2046

SITE INFORMATIONAssessor’s Parcel Number 0197-0200-24, 0321-0010-24, 0197-0202-24, 0321-0014-24,

0197-0208-24, 0197-0210-24, 0197-0212-24, 0197-0204-24, 0321-0018-24, 0197-0206-24, 0321-0022-24, 0321-0026-24, 0321-0030-24, 0321-0034-24, 0321-0038-24, 0321-0066-24, 0321-0042-24, 0321-0050-24, 0321-0054-24, 0321-0058-24, 0321-0062-24, 0321-0070-24, 0321-0046-24, 0321-0074-24, 0321-0078-24, 0321-0082-24, 0321-0086-24, 0321-0090-24

Number of Units 36Number of Buildings 28Number of Stories 1Rentable Square Feet 40,600Year Built 2006Lot Size 4.2539 AcresDensity 8.46 Units/AcresType of Ownership Fee SimpleLandscaping Mature Trees, Shrubs, & Grass (no in ground irrigation)Topography Relatively Flat

UTILITIESWater Metropolitan Utilities District of OmahaElectric Omaha Public Power DistrictGas Metropolitan Utilities District

CONSTRUCTIONExterior Brick & SidingRoof Composite Shingles

Property Summary


Aerial Map


Local Map

VILLAGE AT OMAHA

Highland School

Metropolitan Community College South

Gateway Elementary School

80

75

Omaha’s Henry Doorly Zoo and Acquarium

480

The Salvation Army Omaha KROC Center


Financial Analysis


Income & Expenses

OPERATIONAL ANALYSIS PROFORMA PER UNIT

INCOME

Gross Potential Rent $253,442 $7,040Subsidy Income $47,158 $1,310POTENTIAL RENTAL INCOME $300,600 $8,350 (1)

Economic LossVacancy Loss 3.00% ($9,018) ($251) (2)

Total Economic Loss 3.00% ($9,018) ($251)

NET RENTAL INCOME $291,582 $8,100

Other IncomeForfeited Security Deposits $1,975 $55Late Fees $1,968 $55Misc. Other Income $2,195 $61

Total Other Income $6,138 $171

EFFECTIVE GROSS INCOME $297,720 $8,270

EXPENSES

FIXED OPERATIONAL EXPENSETotal Real Estate Property Taxes 9.32% $27,733 $770 (3)Total Property Insurance Expense 3.63% $10,800 $300 (4)Total Property Utility Expense 2.64% $7,851 $218 (5)

TOTAL FIXED OPERATIONAL EXP 15.58% $46,384 $1,288

VARIABLE OPERATIONAL EXPENSETotal Maint. Contract Services 4.08% $12,155 $338Total Repairs & Maintenance 3.68% $10,952 $304Total Administrative Expenses 7.36% $21,925 $609 (6)Total Leasing & Marketing 0.52% $1,538 $43Total Payroll and Salary Expenses 12.33% $36,704 $1,020 (7)Property Management Fee 4.00% $11,909 $331 (8)Non-Profit Fee 2.18% $6,480 $180 (9)

TOTAL VARIABLE OPERATIONAL EXP 34.15% $101,662 $2,824

TOTAL FIXED & VARIABLE EXPENSES 49.73% $148,046 $4,112

Reserves & Replacements $10,800 $300

TOTAL OPERATING EXPENSES 53.35% $158,846 $4,412

NET OPERATING INCOME $138,874 $3,858


Comments to Income & Expenses

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

REAL ESTATE TAX ANALYSIS

2018 ProformaLand $213,400 $219,802Improvement $1,335,600 $1,375,668Total Market Value $1,549,000 $1,595,470Exemptions $0 $0Value after Exemptions $1,549,000 $1,595,470Assessment Ratio 100.00% 100.00%Assessed Value $1,549,000 $1,595,470

Tax Rate 1.738% 1.738%Ad Valorem Taxes $26,925 $27,733Special Assessments $0 $0Total Taxes Due $26,925 $27,733

Notes

Payroll & Salary Expenses: The manager unit is excluded from the Gross Potential Rent as indicated on the unit mix page. Therefore,the $6,264 non-revenue unit expense shown on the T-12 as of June 30, 2019 is excluded from the analysis.

Per the County Assessor's, taxes are calculated based on fair market values derived using professional mass appraisal methods.

Analysis assumes that real estate taxes will be based on the current tax expense for the year, but increased by 3%.

NOTES TO PROFORMA

Potential Rental Income: Analysis assumes an increase in rents as depicted on the unit mix page annualized and divided betweenGross Potential Rent and Subsidy Income at the same percentage seen in the rent roll dated 06/30/2019.

Vacancy: Based on the rent roll from 7/31/2019, occupancy is 97%. Analysis uses a 3.0% vacancy factor going forward.

Utilities: The property has seen a significant reduction in water & sewer expenses over the trailing 12 months. The analysis assumesthe utility costs over the trailing 12 months plus a 2.5% annual growth factor going forward.

Real Estate Taxes: See notes below.

Administrative Expenses: The analysis excludes the $5,000 audit expense seen on the T-12 as of June, 2019, assuming it will not berequired in the event of a sale.

Property Management Fee: Reduced as an estimate of market underwriting.

Non-Profit Fee: The analysis assumes $15 per unit per month as a fee that will be required for the continued participation of aqualified non-profit in the ownership structure of the property as required by the LURA.

Property Insurance: Reduced to match comparable rates observed at similar LIHTC properties.


PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS

YEAR 1 OPERATIONS BASED ON Proforma

Gross Potential Rent Growth NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Other Income Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Loss to Lease 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Vacancy 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Bad Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Concessions 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Property Taxes NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Insurance NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Utilities NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Property Management Fee 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%Other Expenses NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Replacement Reserves NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

INCOMEGross Potential Rent $300,600 $309,618 $318,907 $328,474 $338,328 $348,478 $358,932 $369,700 $380,791 $392,215

Gain (Loss) to Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0POTENTIAL RENTAL INCOME $300,600 $309,618 $318,907 $328,474 $338,328 $348,478 $358,932 $369,700 $380,791 $392,215

Economic Operational LossVacancy Loss ($9,018) ($9,289) ($9,567) ($9,854) ($10,150) ($10,454) ($10,768) ($11,091) ($11,424) ($11,766)Bad Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Operational Loss ($9,018) ($9,289) ($9,567) ($9,854) ($10,150) ($10,454) ($10,768) ($11,091) ($11,424) ($11,766)

NET RENTAL INCOME $291,582 $300,329 $309,339 $318,620 $328,178 $338,023 $348,164 $358,609 $369,367 $380,448

Total Other Income $6,138 $6,292 $6,449 $6,610 $6,775 $6,945 $7,118 $7,296 $7,479 $7,666

EFFECTIVE GROSS INCOME $297,720 $306,621 $315,788 $325,230 $334,953 $344,968 $355,282 $365,905 $376,846 $388,114

OPERATIONAL EXPENSESFIXED OPERATIONAL EXPENSE

Total Real Estate Property Taxes $27,733 $28,565 $29,422 $30,304 $31,214 $32,150 $33,115 $34,108 $35,131 $36,185Total Property Insurance Expense $10,800 $11,070 $11,347 $11,630 $11,921 $12,219 $12,525 $12,838 $13,159 $13,488Total Property Utility Expense $7,851 $8,047 $8,248 $8,455 $8,666 $8,883 $9,105 $9,332 $9,566 $9,805

TOTAL FIXED OPERATIONAL EXP $46,384 $47,682 $49,017 $50,390 $51,801 $53,252 $54,744 $56,278 $57,856 $59,478

VARIABLE OPERATIONAL EXPENSETotal Maint. Contract Services $12,155 $12,459 $12,770 $13,090 $13,417 $13,752 $14,096 $14,448 $14,810 $15,180Total Repairs & Maintenance $10,952 $11,226 $11,506 $11,794 $12,089 $12,391 $12,701 $13,018 $13,344 $13,677Total Administrative Expenses $21,925 $22,473 $23,034 $23,610 $24,201 $24,806 $25,426 $26,061 $26,713 $27,381Total Leasing & Marketing $1,538 $1,576 $1,616 $1,656 $1,697 $1,740 $1,783 $1,828 $1,874 $1,920Total Payroll and Salary Expenses $36,704 $37,621 $38,562 $39,526 $40,514 $41,527 $42,565 $43,629 $44,720 $45,838Property Management Fee $11,909 $12,265 $12,632 $13,009 $13,398 $13,799 $14,211 $14,636 $15,074 $15,525

TOTAL VARIABLE OPERATIONAL EXP $101,662 $104,100 $106,600 $109,165 $111,796 $114,494 $117,262 $120,102 $123,014 $126,001

TOTAL FIXED & VARIABLE EXPENSE $148,046 $151,782 $155,617 $159,555 $163,597 $167,746 $172,006 $176,380 $180,869 $185,479

Replacement Reserves $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800 $10,800

TOTAL OPERATING EXPENSES $158,846 $162,582 $166,417 $170,355 $174,397 $178,546 $182,806 $187,180 $191,669 $196,279

PROPERTY NET OPERATING INCOME $138,874 $144,039 $149,371 $154,875 $160,557 $166,422 $172,476 $178,726 $185,177 $191,835

Concessions

Cash Flow


UNIT TYPE SET-ASIDE NUMBER OF UNITS

UNIT SIZE (RSF)

ASKING RENT

ASKING RENT PSF

PROFORMA RENT

PROFORMA RENT PSF

MAX TC RENT

CURRENT UA

MAX NET TC RENT

2 BD 2 BTH 40% 3 1,100 $550 $0.50 $600 $0.55 $774 $158 $616 2 BD 2 BTH 45% 8 1,100 $630 $0.57 $665 $0.60 $870 $158 $712 2 BD 2 BTH 50% 4 1,100 $720 $0.65 $745 $0.68 $967 $158 $809 2 BD 2 BTH MANAGER 1 1,100 N/A $0.00 N/A $0.00 N/A N/A N/A2 BD UNIT TOTAL 16 17,600 $9,570 $10,100 $13,150 $10,7802 BD UNIT AVG 1,100 $598 $0.54 $631 $0.57 $822 $674

3 BD 2 BTH 40% 4 1,150 $600 $0.52 $675 $0.59 $894 $191 $703 3 BD 2 BTH 45% 9 1,150 $705 $0.61 $745 $0.65 $1,006 $191 $815 3 BD 2 BTH 45% HOME 1 1,150 $700 $0.61 $745 $0.65 $1,006 $191 $815 3 BD 2 BTH 50% 4 1,150 $771 $0.67 $800 $0.70 $1,118 $191 $927 3 BD 2 BTH 50% HOME 2 1,150 $775 $0.67 $800 $0.70 $1,118 $191 $927 3 BD UNIT TOTAL 20 23,000 $14,079 $14,950 $20,344 $16,5243 BD UNIT AVG 1,150 $704 $0.61 $748 $0.65 $1,017 $826

TOTAL 36 40,600 $23,649 $25,050 $33,494 $27,304AVERAGE 1,128 $657 $0.58 $696 $0.62 $930 $758 * The unit mix above was based on the 7/31/2019 rent roll.

Unit Mix


The Village at Omaha is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 40, 45%, 45% HOME, 50%, & 50% HOME of the local Area Median Income (AMI) for the county.

Douglas CountyEffective Year: 2019

Area Median Income: $86,000

Tax Credit Property Income LimitsINCOME 40% 45% 50% 60%1 Person $24,080 $27,090 $30,100 $36,1202 Person $27,520 $30,960 $34,400 $41,2803 Person $30,960 $34,830 $38,700 $46,4404 Person $34,400 $38,700 $43,000 $51,6005 Person $37,160 $41,805 $46,450 $55,7406 Person $39,920 $44,910 $49,900 $59,8807 Person $42,680 $48,015 $53,350 $64,020

Tax Credit Maximum Allowable RentsSet Aside Unit

Type # of

UnitsMax Rent UA Max Net

Rent40% 2 BD 3 $774 $158 $616 45% 2 BD 8 $870 $158 $712 50% 2 BD 4 $967 $158 $809 40% 3 BD 4 $894 $191 $703 45% 3 BD 10 $1,006 $191 $815 50% 3 BD 6 $1,118 $191 $927

67%16%

17%

Unit Breakdown By Unit Type

2 BD 3 BD 4 BD

$943$1,034

$1,120$1,003

$1,299

$1,454

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2 BD 3 BD 4 BD

Asking Rents to Fair Market Rents

Asking Rent Net Max Rent

*The graph does not include the Manager Unit


Max Allowable LIHTC Rent Growth- 2BD/ 60%

Year Rent % Change

2009 $943 -2010 $949 0.64%2011 $954 0.53%2012 $966 1.26%2013 $982 1.66%2014 $985 0.31%2015 $985 0.00%2016 $985 0.00%2017 $1,012 2.74%2018 $1,102 8.89%2019 $1,161 5.35%

5 Yr Avg 3.40%10 Yr Avg 2.14%

$69,900

$71,900

$73,900

$75,900

$77,900

$79,900

$81,900

$83,900

$85,900

$87,900

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

AMI Growth RateYear AMI % Change

2009 $69,900 -2010 $70,300 0.57%2011 $70,600 0.43%2012 $71,500 1.27%2013 $72,700 1.68%2014 $73,000 0.41%2015 $72,800 (0.27%)2016 $72,100 (0.96%)2017 $75,000 4.02%2018 $81,600 8.80%2019 $86,000 5.39%

5 Yr Avg 3.40%10 Yr Avg 2.13%

$940

$960

$980

$1,000

$1,020

$1,040

$1,060

$1,080

$1,100

$1,120

$1,140

$1,160

$1,180

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOURCE: novoco.com

*The high-water mark year is 2019 at $86,000.


Fair Market RentsYear 2 BD 3 BD

2009 $757 $1,0112010 $766 $1,0232011 $747 $9972012 $751 $1,0032013 $828 $1,1102014 $790 $1,0592015 $807 $1,0822016 $836 $1,1272017 $894 $1,2032018 $927 $1,2482019 $927 $1,250

$870

$890

$910

$930

$950

$970

$990

$1,010

$1,030

$1,050

$1,070

$1,090

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

FMR AveragesYear FMR Avg. % Change

2009 $884 -2010 $895 1.19%2011 $872 (2.52%)2012 $877 0.57%2013 $969 10.49%2014 $925 (4.59%)2015 $945 2.16%2016 $982 3.92%2017 $1,049 6.83%2018 $1,088 3.72%2019 $1,089 0.09%

5 Yr Avg 3.34%10 Yr Avg 2.19%

SOURCE: novoco.com


Rent Comparables

THE VILLAGE AT OMAHAOCCUPANCY

COMPARABLES AVERAGE OCCUPANCY

THE VILLAGE AT OMAHARENT/SF

COMPARABLES AVERAGE RENT/SF

97% 96% $0.58 $0.92


E

D

C

Rent Comparables Map

B

G

The Village at Omaha

Livestock Exchange Building Apts.*

Highland Meadows Apts.

Landings Apts.

South Hills Apts.

Oaks at Lakeview Apts.

Southfield I & II Apts.*

Pavillion at Twin Creek I & II Apts. A

C

D

F

G

B E

A

F

*Affordable Properties


Occupancy- 96% Average

Rent Per SF- $0.92 Average

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

* A B C D E F G

Occupancy & Rent per SF

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

* A B C D E F G

The Village at Omaha

Livestock Exchange Building Apts.*

Highland Meadows Apts.

Landings Apts.

South Hills Apts.

Oaks at Lakeview Apts.

Southfield I & II Apts.*

Pavillion at Twin Creek I & II Apts. A

C

D

F

G

B E

*Affordable Properties


Unit Type # of Units Rent SF RentPer SF

2BD 2BTH- 40% 3 $550 1,100 $0.50 2BD 2BTH- 45% 8 $630 1,100 $0.57 2BD 2BTH- 50% 4 $720 1,100 $0.65 2BD 2BTH- MANAGER 1 $0 1,100 $0.00 3BD 2BTH- 40% 4 $600 1,150 $0.52 3BD 2BTH- 45% 9 $705 1,150 $0.61 3BD 2BTH- 45% HOME 1 $700 1,150 $0.61 3BD 2BTH- 50% 4 $771 1,150 $0.67 3BD 2BTH- 50% HOME 2 $775 1,150 $0.67 TOTALS/AVG. 36 $657 1,128 $0.58

3007 W StreetOmaha, NE 68107

Rent Comparables

VILLAGE AT OMAHA 36 UNITS OCCUPANCY: 97% YEAR BUILT: 2006

A

4920 South 30th StreetOmaha, NE 68107

Distance to Subject: 1.1 miles

LIVESTOCK EXCHANGE BUILDING 102 UNITS OCCUPANCY: 100% YEAR BUILT: 1926REHABBED: 2004


1BD 1BTH 48 $462 644 $0.72 2BD 2BTH 54 $670 1,089 $0.62 TOTALS/AVG. 102 $572 880 $0.65

*LIHTC property with 30%, 40%, & 50% units

*Tenants pay electric & gas


Rent Comparables

10215 Cape Cod LandingBellevue, NE 68123


LANDINGS 360 UNITS OCCUPANCY: 95% YEAR BUILT: 2006C


1BD 1BTH 72 $984 750 $1.31 1BD 1BTH 28 $985 603 $1.63 1BD 1BTH 48 $1,058 736 $1.44 2BD 1BTH 48 $1,099 926 $1.19 2BD 2BTH 72 $1,189 1,168 $1.02 2BD 2BTH 28 $1,401 1,027 $1.36 2BD 2BTH 16 $1,464 1,122 $1.30 3BD 2BTH 48 $1,610 1,367 $1.18 TOTALS/AVG. 360 $1,188 964 $1.23

*Tenants pay all utilities

B

2202 Gregg RoadBellevue, NE 68123


HIGHLAND MEADOWS 198 UNITS OCCUPANCY: 94% YEAR BUILT: I. 1999, II. 2002, III. 2004, IV. 2007, V. 2012


1BD 1BTH 21 $780 900 $0.87 1BD 1BTH 12 $820 1,045 $0.78 1BD 1BTH 30 $820 1,057 $0.78 2BD 1BTH 36 $830 1,045 $0.79 2BD 1BTH 54 $880 1,142 $0.77 2BD 2BTH 36 $880 1,142 $0.77 2BD 2BTH 9 $870 1,185 $0.73 TOTALS/AVG. 198 $847 1,082 $0.78

*Tenants pay electric


Rent Comparables

D

E

904 Kasper StreetOmaha, NE 68147



2BD 1BTH 36 $775 862 $0.90 2BD 1BTH 36 $800 870 $0.92 TOTALS/AVG. 72 $788 866 $0.91


SOUTH HILLS 72 UNITS OCCUPANCY: 97% YEAR BUILT: I. 1995, II. 1996

7471 Lakeview StreetRalston, NE 68127


OAKS AT LAKEVIEW 276 UNITS OCCUPANCY: 94% YEAR BUILT: 2012


1BD 1BTH 120 $934 969 $0.96 1BD 1.5BTH 13 $1,139 993 $1.15 2BD 1.5BTH 44 $1,091 1,135 $0.96 2BD 1.75BTH 99 $1,063 1,168 $0.91 TOTALS/AVG. 276 $1,015 1,068 $0.95



Rent Comparables

G

F

7009 South 83rd StreetLa Vista, NE 68128


SOUTHFIELD I & II 84 UNITS OCCUPANCY: 99% YEAR BUILT: I. 1992, II. 1993


1BD 1BTH 11 $699 800 $0.87 2BD 1.75BTH 48 $816 1,100 $0.74 3BD 3.75BTH 25 $943 1,450 $0.65 TOTALS/AVG. 84 $838 1,165 $0.72

*LIHTC Property with 50% units


4007 Raynor ParkwayBellevue, NE 68123



1BD 1BTH 100 $992 788 $1.26 1BD 1BTH 36 $1,102 719 $1.53 2BD 1BTH 32 $1,128 922 $1.22 2BD 1BTH 60 $1,003 845 $1.19 2BD 1.75BTH 100 $1,126 1,058 $1.06 2BD 1.75BTH 96 $1,013 988 $1.03 2BD 1.75BTH 24 $1,168 988 $1.18 3BD 1.75BTH 8 $1,779 1,206 $1.48 3BD 1.75BTH 24 $1,540 1,180 $1.31 TOTALS/AVG. 480 $1,092 932 $1.17


PAVILLION AT TWIN CREEK I & II 480 UNITS OCCUPANCY: 92% YEAR BUILT: I. 2008, II. 2017


Market Highlights

Omaha is experiencing a cultural shift similar to that in nearby Des Moines and Lincoln, where people are moving to revitalized downtown areas that offer live/work/play environments not typically seen in smaller Midwest metros. Renter households dominate Downtown, making up more than half of the households in the submarket. The Downtown Submarket experienced the biggest shift in demographics, with an increase of about 4,000 households with a bachelor’s degree or higher. The urban core is also seeing the most construction in the metro, with more than 3,500 units delivering Downtown so far this cycle and more projects underway. However, as land becomes scarcer, building conversions have become a norm in the Downtown Submarket, and developers have been forced to get creative.

Omaha’s apartment fundamentals benefit from a diversified local economy that boasts a low unemployment rate compared to the national average. Downward pressure on vacancies has returned as demand has returned and brought vacancies to a new all-time low in 2019. Median household income growth has also handily outperformed the national benchmark.

Omaha benefits from a diverse base of major employers and a prevalence of Fortune 500 and 1000 companies. Furthermore, the tech sector has steadily emerged as a bright spot for the metro. The metro is considered part of the “Silicon Prairie” due to its growing tech workforce. Eckoh, a UK-based payments technology company, recently selected Omaha as the location for its U.S. operations, due to the low cost of doing business in the area. Facebook also decided to expand its data center operations, with the project employing more than 1,000 construction workers as of March 2018. The new facility will occupy nearly 3 million SF and push the social media platform’s annual energy usage at the site from 200 to 320 megawatts, according to the Omaha-World Herald. As part of an initiative to convert to clean energy completely, the center will ultimately draw electricity from the Rattlesnake Creek Wind Project via the Omaha Public Power District.

VACANCY

SOURCE: CoStar- October 2019

12 month Deliveries in Units 12 month Net Absorption Vacancy Rate 12 month Rent Growth925 1,666 5.0% 2.2%

Omaha’s healthy and growing economy has translated into sound apartment fundamentals. Several Fortune 500 and 1000 companies have their headquarters here—including Berkshire Hathaway, Mutual of Omaha, and TD Ameritrade—and support a strong employment base. The Facebook data center expansion in Papillion is expected to buoy jobs further. Unemployment was near 3% heading in the middle of 2019, well below the national average and indicating that the labor market is tight. The area continues to benefit from diversification across several industries, with most sectors surpassingprerecession peaks in terms of job creation. Economic gains coupled with increased population growth have allowed companies to expand, amplifying demand focused on Downtown.

Demand is starting to catch up with the influx of new supply, and vacancies were compressed near a new all time low in 19Q2. Year-over-year gains were accruing at a moderate pace across the same period. Investors have been bullish on Omaha’s apartment market, and sales volume has topped $150 million annually since 2015.

OVERVIEW

Vacancy Rate

Abso

rptio

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d De

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Deliveries Net Absorption Vacancy National Vacancy


Market Highlights


Demographics are favorable for multifamily landlords—more than 20% of the population in Omaha is 20–34 years old. This cohort is considered one of the prime renting cohorts, and with more and more baby boomers retiring, demand could increase significantly over the next several years. As a result, rent growth in Omaha has been relatively healthy, with moderate, positive growth from 2013-17. Gains have slowed into the first part of 2019, as the market contends with increased supply and saturated pipeline. Strong incomegrowth in the metro has supported rent increases, which totaled more than 15% since 2010. Indeed, the 4% increase in median household income here was among the strongest in the country in 2015. Additionally, census data for 2015 shows increases in the number of households making over $100,000, as well as in 20–34-year-olds with a bachelor’s degree or higher. While income growth slowed comparatively near 3% in 19Q2, Omaha’s median income outpaced the nation’s by nearly 10%.

Demand has been constant in both the Elkhorn/Gretna and Downtown Omaha Submarkets, which post the highest rents in the metro at $960/unit and $877/unit, respectively. As more and more apartment conversions come to fruition, landlords could benefit as demand persists.

Investors, specifically developers, were eager to enter the Downtown Submarket this cycle because of its growing demand and promising returns. While sales volume averaged more than $150 annually since 2015, roughly a third of that amount changed hands across the first half of 2019. By contrast, nearly $165 million traded last year.

SALES

RENT

Annual Rent Growth

Rent

per

Uni

tSales Volum

e in Millions

Med

ian

per U

nit

Volume Price/Unit National Price/Unit

Market Rent Growth Market Rent Per Unit Effective Rent Per Unit U.S Market Rent


Market Highlights


Omaha’s unemployment rate was near 3% through mid- 2019—more than a percentage point above some of its larger Midwest neighbors. Though the structurally low rate has translated into a tight labor market, job growth has remained positive. This growth is a testament to the metro’s ability to attract and retain an educated workforce. Population growth has continued to exceed the national average and translated into job creation across all industries. Finance, insurance, and professional and business services have historically setthis metro apart from the rest of the region. Over the past year, there has been continued growth in most office using sectors, aside from information.

Insurance jobs make up the largest segment of the financial services sector in Omaha, which is more than 8% above its prerecession employment level. White collar-related

industries continue to target the metro for expansion because of its well-educated workforce and low business costs. The cost of doing business in Omaha is 11% less than the U.S. average, due primarily to lower office rents and taxes. Approximately a third of Omaha’s residents hold a bachelor’s degree or higher, compared with the U.S. average of less than 30%. Much of this phenomenon can be attributed to the nearly dozen universities in the city, which consistently feed it with high-quality workers.

The education and health services sector has traditionally been a significant driver of employment growth, especially this cycle. Employment in the sector was 15% above its prerecession peak in 2018, but growth has been negative through the first half of 2019.

JOB GROWTH

Metro US

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