FOR SALE - images1.loopnet.com€¦ · World Report). The University is vital to Tucson and...
Transcript of FOR SALE - images1.loopnet.com€¦ · World Report). The University is vital to Tucson and...
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Prepared by the Multi-Family & Investment Sales team:
Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance
Allan Mendelsberg Principal Direct +1 520 546 2721 Mobile +1 520 490 2113 [email protected]
Conrad Martinez Multi-Family Team Direct +1 520 546 2730 Mobile +1 520 668 3858 [email protected]
PICOR Commercial Real Estate 5151 E Broadway Blvd Suite 151 Tucson, AZ 85711 | USA Main +1 520 748 7100 Fax +1 520 546 2799 multifamilytucson.com picor.com
Property Highlights• Turn-Key Opportunity• Student Housing Opportunity• Six Fully Renovated Units• Ideally Located Near Banner Medical & UofA Campus• Curb-Side Parking• Ideal Unit Mix of Studio & One Bedrooms
Property OfferingSale Price $915,000
Number of Units 7Price Per Unit $130,714Rentable SF 2,490Price Per SF $367.47
Year Built/Renov 1961 & 1964 / 2017 & 2018Land .27 Acres
Cap Rate 6.19%
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
FOR SALE
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PROPERTY HIGHLIGHTS
Rentable Square Feet 2,490 SF
Unit Mix 7 Units - 3 Studios & 4 1BD/1BA
Land .27 acres
Year Built/Year Rennovated 1961 & 1964 / 2017 & 2018
Zoning R-2
Parcel Number 123-15-2740
Main Cross Roads N Euclid Ave & E Speedway Blvd
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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PROPERTY OVERVIEW
Property Highlights:
University Bungalows is a 7-unit student housing community comprising of (3) Studios, and (4) 1-Bed/1-Bath. 6 of the 7 units have been completely renovated. The units are all individually metered for electricity, heating, and cooling. Owner is responsible for water, sewer, and waste removal.
University Bungalows has undergone major recent Capital Improvements including interiors, exteriors, and property upgrades. Pictures of the complete renovations for 6 of the 7 units will be found below.
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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LOCATION OVERVIEW
Location Highlights:
University Bungalows could not be more perfectly situated for UofA Student Housing. Less than a couple blocks away from the UofA Main Campus and Banner Medical, it makes transit to campus simple and convenient for the students to get to their classes and activities. With its close proximity to downtown Tucson and Mercado District it also has entertainment and retail hubs nearby. The area sur-rounding University Bungalows features many local college and franchised res-taurants. With its close location to Campus and Downtown, University Bungalows is ideal for students looking for luxurious student housing available in Tucson.
NEARBY DESTINATIONS
RETAIL
• Ace Hardware• Walgreens• Tucson's 4th Ave• Mercado District
EDUCATION
• University of Arizona• Pima Community College• Tucson High School
HEALTHCARE
• Banner University Medical• Pima Heart Associates • Tucson Medical Center
ENTERTAINMENT
• El Charro Steak House• Culinary Dropout• Downtown Tucson• Hifi Bar & Restaurant
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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Exterior Photos
PROPERTY PHOTOS
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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Interior Photos
PROPERTY PHOTOS
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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Renovation Photos
PROPERTY PHOTOS
Old Units New Units
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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Studio Floor Plan
PROPERTY FLOOR PLANS
1Bed/1Bath Floor Plan
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
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PRICING ANALYSIS
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
Type # of Units Sq. Ft. Total S.F. Rent per S.F. Total Monthly Rent Stabilized Rent
Studio - Renovated 1 310 310 $2.89 $895 $895
Studio - Non Renovated 1 310 310 $1.21 $375 $375
Studio 1 230 230 $3.46 $795 $795
1BD/1BA 4 410 1,640 $3.16 $5,180 $1,295
Total/Avg. 7 356 2,490 $2.91 $7,245 $1,035
Income Statement"Marketing Pro Forma"
"Proforma Per Unit"
Proforma PSF
2019 Actuals
RENTAL INCOMEGross Market Rent $86,940 $12,420 $34.92
Vacancy Loss -$4,347 -5.0% ($1.75)
Gross Rent $82,593 $11,799 $33.17
Concessions & Bad Debt -$1,239 -1.50% ($0.50)
Net Rental Income $81,354 $11,622 $32.67 $83,104Other Income $500 $71 $0.20 $265
TOTAL INCOME $81,854 $11,693 $32.87 $83,369
OPERATING EXPENSES Repairs/Maintenance/Supplies $3,500 $500 $1.41 $2,400
General/Admin/Advertising $1,000 $1,000 $0.40 $1,364
Payroll $1,000 $250 $0.40 $860
Contract Services $1,200 $171 $0.48 $0
Utilities $3,000 $429 $1.20 $2,736
TOTAL VARIABLE $9,700 $1,386 $3.90 $7,360Property Taxes $4,180 $597 $1.68 $4,180
Property Insurance $3,000 $429 $1.20 $0
Management Fee $6,548 8% $2.63 $6,669
Reserves $1,750 $250 $0.70 $0
TOTAL EXPENSES $25,178 $3,597 $10.11 $18,209
NET OPERATING INCOME $56,676 $8,097 $22.76 $65,160
Stabilized Market Valuation
Value $915,000Per Unit $130,714
Per Square Foot $367.47
Cap Rate2019 Actuals 7.12%
Marketing Pro Forma 6.19%
APPROXIMATE MULTIFAMILY
VACANCY
PROPORTION OF HOUSEHOLDS
THAT RENT
LARGEST EMPLOYERS
RECENT ARRIVALS & EXPANSIONS
TUCSON MSA POPULATION*
POPULATION GROWTH RATE*
1.023M1.01%
*As of 2017
UNEMPLOYMENT RATE
PER-CAPITA INCOME
4.8%Year-end 2018
As of 2017
$41,637
1. UNIVERSITY OF ARIZONA - 11,251
2. RAYTHEON MISSILE SYSTEMS - 9,600
3. STATE OF ARIZONA - 8,580
4. DAVIS-MONTHAN AFB - 8,406
38% 6.13%
TOTAL HOUSEHOLDS
398,530As of 2017
As of 2017 As of 2018
• AMAZON• CATERPILLAR SURFACE
MINING & TECHNOLOGY• HEXAGON MINING• RAYTHEON MISSILE
SYSTEMS• TUSIMPLE
UNIVERSITY OF ARIZONA TOP PROGRAMS*
UNIVERSITY OF ARIZONA TOTAL ENROLLMENT, 2019
45,217• #46 TOP PUBLIC SCHOOL• #22 RESEARCH ACTIVITY
AMONG PUBLIC INSTITUTIONS• #21 BUSINESS PROGRAMS• #55 UNDERGRAD ENGINEERING
*U.S. News & World Report
TUCSON AT A GLANCE
Statistics from City of Tucson and U.S. Census Bureau
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University Bungalows1647 N Santa Rita AveTucson, AZ 85719
TUCSON AT A GLANCE
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University Bungalows1647 N Santa Rita AveTucson, AZ 85719
Economic Overview
Population and DemographicsTucson is the second-largest city in Arizona, with a metro area population of 1,023,000. Located 60 miles from the U.S.-Mexico border, the Tucson metropolitan area (which includes nearby suburbs like Marana and Oro Valley, as well as the significant portion of unincorporated Pima County that makes up what is de facto “north Tucson”) has been growing far more quickly than much of the U.S. The population has grown 51% since 1990 and 20% since 2000, compared to the United States averages of just 28% and 13% respectively. The Tucson median age is 37.9 years while Tucson MSA median household income is $41,637. Average home prices are just $197,300 providing plenty of affordable options for the growing population.
The natural beauty of the Sonoran Desert makes Tucson a desirable location for residents and businesses alike. Downtown Tucson is a diverse submarket with a rich cultural heritage that contains a blend of Native American, Spanish, Mexican and Anglo-American influences. Tucson ranks high nationally in various categories including: #2 best American small city in 2017 (Resonance Consultancy), 2016 top 100 best places to live (U.S. News and World Report), #9 “city everyone wants to live in” in 2017 (Business Insider), #8 2018 best city for recreation (WalletHub), and one of America’s 2017 best cities for global trade (Global Trade). The University of Arizona is ranked #106 of all nationwide colleges, public or private (U.S. News and World Report).
The University is vital to Tucson and Southern Arizona, having garnered national and international attention. It has the largest optics program among U.S. institutions, and is second in overall research expenditures (University of Arizona). UA brings in more than $580 million in research investment each year. The university’s enrollment is 45,217, with numerous branch campuses and learning centers throughout Southern Arizona. Pima Community College is a two-year school serving Metro Tucson at six locations throughout the county. Tucson Unified School District is one of the largest in the state, encompassing 229.5 square miles. It serves approximately 47,000 students in grades pre-K through 12 at more than 80 schools.
EmploymentEmployers will find a diverse, educated and enthusiastic workforce in Tucson stemming from the U of A. As of 2019, the University of Arizona is the top employer with a work force of 11,251 followed by Raytheon Missile Systems, 9,600; Davis-Monthan Air Force Base, 8,406 (both civilian and military personnel); Pima County, 7,100; U.S. Customs and Border Patrol, 6,800; Tucson Unified School District, 6,467; Banner University Healthcare, 6,462, Freeport-McMoRan Copper & Gold, 5,819; CONTINUED ON NEXT PAGE
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Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance Cushman & Wakefield Copyright 2019. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
University Bungalows1647 N Santa Rita AveTucson, AZ 85719
Economic Overview
and Wal-Mart, 4,360, while the city’s unemployment rate is 4.8%. (Bureau of Labor Statistics). Tucson’s 2018 job growth rate was 3.1% (MAP for Southern Arizona).
Davis-Monthan is home to the 355th Fighter Wing, part of the Air Combat Command. The base is best known as the location of the Air Force Materiel Command’s 309th Aerospace Maintenance and Regeneration Group, the aircraft boneyard for all excess military and government aircraft. In the world of healthcare, Banner Health and the University of Arizona Health Network merged to create a platform of academic medicine, research, instruction and patient care at three academic medical centers.
Economic DevelopmentInnovation is at the forefront of the Tucson economic development agenda. Forbes has called it one of America’s Most Innovative Cities, and the city has the highest concentration of startups of any U.S. city its size. Furthermore, it was ranked as a Top Five City for Entrepreneurs by Entrepreneur Magazine in 2013. Metro Tucson is a hub for optics and science, while biotech and other science clusters flourish in the UA Tech Park, BioPark and Innovation Park. Tourism is a key economic driver as well. Tucson is known for its world-class health spas such as Canyon Ranch, more than 20 golf courses, and numerous natural attractions, museums, missions and cultural history.
Interstate 10, the major East-West highway in the Sun Belt, runs east from California, enters Arizona near Ehrenberg and continues through Phoenix and Tucson. It exits at the border with New Mexico. Interstate 19 travels from Nogales to Tucson, and ends at I-10. While the highway is short (63 miles), it is a key corridor, serving as a fast route from Tucson and Phoenix (via I-10) to the Mexican border. The highway is a portion of the U.S. section of the CANAMEX Corridor, a trade route that stretches north from Mexico across the U.S. to the Canadian province of Alberta.The Port of Tucson is a full service inland port, railyard and intermodal facility southeast of the city and 70 miles north of the Mexico border at Nogales. The facility is located adjacent to the Union Pacific Railroad Mainline and I-10, linking California and Texas. In 2014, Tucson launched Sun Link, a fixed electric rail “Modern Streetcar” system that operates eight vehicles between Downtown Tucson and the UA campus. Each streetcar vehicle holds 150 passengers. There are 24 stops along the 3.9-mile route.