Offering Memorandum · 2018. 9. 27. · Marcus & Millichap has not made any investigation, and...
Transcript of Offering Memorandum · 2018. 9. 27. · Marcus & Millichap has not made any investigation, and...
THE WINDSOR214 West St • Reno, NV 89501
Offering Memorandum
1
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
THE WINDSORReno, NVACT ID Z0420058
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TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Regional Map
Aerial Photo
FINANCIAL ANALYSIS 02Rent Roll Summary
Rent Roll Detail
Operating Statement
Pricing Detail
Acquisition Financing
MARKET COMPARABLES 03Sales Comparables
Rent Comparables
MARKET OVERVIEW 04Market Analysis
Demographic Analysis
THE WINDSOR
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THE WINDSOR
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INVESTMENT
OVERVIEW
THE WINDSOR
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
U-Haul 3,562
VA Sirra Nev Hlth Care Systems 3,000
Peppermill Hotel Casino 2,250
MONARCH 2,100
Circus Circus Reno Ht & Casino 2,000
St Marys Health Network 1,800
County of Washoe 1,615
Grand Sierra Resort and Casino 1,525
US Post Office 1,439
Scolaris Distribution Center 1,400
Saint Marys Regional Med Ctr 1,370
Club Cal-Neva 1,300
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 21,727 130,026 234,895
2010 Census Pop 20,557 121,820 220,937
2017 Estimate HH 11,049 54,463 93,620
2010 Census HH 10,407 51,480 88,815
Median HH Income $26,375 $36,622 $42,347
Per Capita Income $24,824 $23,992 $25,715
Average HH Income $43,750 $55,966 $63,467
UNIT MIX
NUMBEROF UNITS UNIT TYPE APPROX.
SQUARE FEET
23 Efficiency A 300
12 Efficiency B 300
18 Efficiency C 300
53 Total 15,900
VITAL DATA
Price $3,200,000 CURRENT YEAR 1
Down Payment 25% / $800,000 CAP Rate 6.55% 7.45%
Loan Amount $2,400,000 GRM 7.50 6.95
Loan Type Proposed New Net Operating Income $209,455 $238,466
Interest Rate / Amortization 4.75% / 30 Years Net Cash Flow After Debt Service 7.40% / $59,221 11.03% / $88,231
Price/Unit $60,377 Total Return 12.03% / $96,255 15.88% / $127,063
Price/SF $201.26
Number of Units 53
Rentable Square Feet 15,900
Year Built / Renovated 1922 / 2018
Lot Size 0.16 acre(s)
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THE WINDSOR
#
OFFERING SUMMARY
PROPERTY OVERVIEW
Located in the heart of Downtown Reno, The Windsor is a resplendent example of old world charm and gracious
hospitality. Built in 1922, this single-building brick structure offers 52 rental units. This quaint building sits on a
0.161 acre site and provides its residents who prefer an urban lifestyle with the many amenities of the city life.
The Windsor is currently one of the few properties to offer "Downtown Living" in Reno, Nevada. The property is
the former and historic Windsor Motel which was recently renovated and brought to its current condition. The
transition came about as a need for downtown housing was realized and the opportunity captured by the current
owner. This same opportunity to claim an asset with such a prime location and living demand is now being
offered to the public. The three-story asset is one of the last remaining historical structures in downtown Reno.
This Windsor is currently performing beyond the owner's expectations, with rents exceeding those speculated
upon purchase, and a rapid stabilization period bringing the property to its current position. The asset is located
in the “Opportunity Zone,” allowing for a long-term tax advantage. Opportunity Zones are designed to spur
economic development by providing tax benefits to investors.
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Two Laundry Rooms On-Site
Common Area Amenities
Secured Access
Units Offer Cable TV & Internet
Recently Renovated Interior
Unit Amenities
Excellent Downtown Location
Lobby & Lounge Area
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THE WINDSOR
OFFERING SUMMARY
Downtown Living
Located in the Opportunity Zone
Recently Renovated
Highly Desirable Yield
INVESTMENT HIGHLIGHTS
The Windsor is situated near the most desired attractions in the downtown Reno vicinity. The property is minutes away from the downtown casinos, such as Harrah’s,
Club Cal Neva and Silver Legacy, as well as the Truckee River, the Midtown district and the soon-to-be "Fountain District."
The proximity of The Windsor to these locations provides an owner with stable tenancy as the demand for housing has exponentially grown in these neighborhoods. The
"Fountain District" is the coined term for the development happening along the West Fourth Street corridor. This development is held at the hands of Jeffrey Jacobs of
Jacob's Development. Jacobs is the CEO & Owner of the Gold Dust West casinos and has announced plans of spending between $500 million to $1 billion renovating
Fourth Street into an arts and entertainment district. The developer has already purchased a majority of the land, old motels and buildings along Fourth Street, as well as
the Sand's Regency Hotel & Casino for $26.5 million alone. The Fountain District is expected to bring dining, retail and entertainment experiences to the area, a highly
needed and desired revitalization.
The appeal of this investment is driven by the going in yield, free-and-clear delivery, stable operations with continual rent increases and the capture of the Loss-to-Lease.
The overall downtown market is starved for apartments living and sets the stage for this asset to maintain high demand and continuously hit market rents.
INVESTMENT OVERVIEW
7
THE WINDSOR
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $2,400,000
Loan Type Proposed New
Interest Rate 4.75%
Amortization 30 Years
Loan Term 7 Years
Loan to Value 75%
Debt Coverage Ratio 1.39
THE OFFERING
Property The Windsor
Price $3,200,000
Property Address 214 West St, Reno, NV
Assessor’s Parcel Number 011-032-11
SITE DESCRIPTION
Number of Units 53
Year Built/Renovated 1922/2018
Rentable Square Feet 15,900
Lot Size 0.16 acre(s)
Type of Ownership Fee Simple
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REGIONAL MAP
THE WINDSOR
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AERIAL PHOTO
THE WINDSOR
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Marcus & Millichap closes
more transactions than any
other brokerage firm.
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THE WINDSOR
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PROPERTY PHOTO
THE WINDSOR
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
THE WINDSOR
RENT ROLL SUMMARY
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FINANCIAL ANALYSIS
THE WINDSOR
OPERATING STATEMENT
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FINANCIAL ANALYSIS
THE WINDSOR
PRICING DETAIL
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MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform operating
within the firm’s brokerage
offices
$5.63 billion total national
volume in 2017
Access to more capital sources than any other firm in the industry
Optimum financing solutions to enhance value
Our ability to enhance buyer pool by expanding finance options
Our ability to enhance seller control
• Through buyer qualification support
• Our ability to manage buyers finance expectations
• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings
• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file
WHY MMCC?
Closed 1,707 debt and equity
financings in 2017
ACQUISITION FINANCING
THE WINDSOR
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THE WINDSOR
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MARKET
COMPARABLES
THE WINDSOR
SALES COMPARABLES MAP
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THE WINDSOR(SUBJECT)
820 North Virginia
Mill Street Manor
Santa Maria Apartments
511 Roberts St
The Ross Manor Apartments
500 N Center Street
SALES COMPARABLES
IN ESCROW COMPARABLES
1
2
3
4
5
6
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PROPERTY NAMETHE WINDSOR
SALES COMPARABLES
0.0
0.8
1.6
2.4
3.2
4.0
4.8
5.6
6.4
7.2
8.0
The Windsor 820 NorthVirginia
Mill StreetManor
Santa MariaApartments
The RossManor
Apartments
Average Cap Rate
SALES COMPARABLES
IN ESCROW COMPARABLES
SALES COMPS AVG
IN ESCROW COMPS AVG
Avg: 6.61%
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PROPERTY NAMETHE WINDSOR
SALES COMPARABLES
Avg. $139.43
Avg. $244.85
$0.00
$30.00
$60.00
$90.00
$120.00
$150.00
$180.00
$210.00
$240.00
$270.00
$300.00
The Windsor 820 NorthVirginia
Mill StreetManor
Santa MariaApartments
511Roberts St
The RossManor
Apartments
500 NCenterStreet
Average Price Per Square Foot
Avg. $69,977
Avg. $79,286
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
The Windsor 820 NorthVirginia
Mill StreetManor
Santa MariaApartments
511Roberts St
The RossManor
Apartments
500 NCenterStreet
Average Price Per Unit
SALES COMPARABLES
IN ESCROW COMPARABLES
SALES COMPS AVG
IN ESCROW COMPS AVG
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
SALES COMPARABLES
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SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
Offering Price: $3,200,000 23 Efficiency A
Price/Unit: $60,377 12 Efficiency B
Price/SF: $201.26 18 Efficiency C
CAP Rate: 6.55%
GRM: 7.50
Total No. of Units: 53
Year Built: 1922
Underwriting Criteria
Income $392,188 Expenses $182,732
NOI $209,455 Vacancy ($38,562)
THE WINDSOR214 West St, Reno, NV, 89501
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Units Unit Type
Close Of Escrow: 8/28/2018 5 Studio 1 Bath
Days On Market: 100 5 1 Bdr 1 Bath
Sales Price: $730,000
Price/Unit: $73,000
Price/SF: $153.68
CAP Rate: 5.50%
Total No. of Units: 10
Year Built: 1938
NOTESMarcus & Millichap represented the buyer in this transaction. Rents ranged from $425 - $695 for a mix of Studios & 1 Beds. Cap Rate based on M&M underwriting.
820 NORTH VIRGINIA820 N Virginia St, Reno, NV, 89501
Units Unit Type
Close Of Escrow: 7/16/2018 1 Studio 1 Bath
Sales Price: $860,000 12 1 Bdr 1 Bath
Price/Unit: $61,429 1 2 Bdr 1 Bath
Price/SF: $108.92
CAP Rate: 6.15%
Total No. of Units: 14
Year Built: 1964
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NOTES810 Mill St sold for $860,000 or for $61,429 per unit. There was a 1031 Exchange on the buyer's side. The property was 86% occupied at the close of escrow. The property consisted of 12 - 1/bd - 1/ba units renting at $500-$550/mo; 1 - studio renting at $550/mo; 1 - 2/bd - 1/ba renting at $875/mo.CAP Rate based on M&M Underwriting.
MILL STREET MANOR810 Mill St, Reno, NV, 89502
NOTES
Offered free and clear.
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
SALES COMPARABLES
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SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
Close Of Escrow: 11/27/2017 26 Studio 1 Bath
Days On Market: 32 1 1 Bdr 1 Bath
Sales Price: $1,625,000
Price/Unit: $60,185
Price/SF: $120.37
CAP Rate: 7.00%
Total No. of Units: 27
Year Built: 1978
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NOTESThe unit mix was confirmed as 1 - 1 bed - 1 bath and 26 studio units. This transaction is the result of the seller's original strategy when acquiring the property; to improve the site and resell.
SANTA MARIA APARTMENTS543 W 6th St, Reno, NV, 89503
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Units Unit Type
Close Of Escrow: 11/2/2017 12 1 Bdr 1 Bath
Sales Price: $1,300,000
Price/Unit: $108,333
Price/SF: $205.57
Total No. of Units: 12
Year Built: 1939
NOTESThe buyer confirmed the price, and that this apartment was fully leased and occupied at the time of sale. The buyer plans to renovate and purchased this for value-add purposes, no Cap Rate was considered.No brokers were involved.
511 ROBERTS ST511 Roberts St, Reno, NV, 89502
Units Unit Type
Close Of Escrow: 12/22/2016 38 Studio 1 Bath
Sales Price: $7,369,622 114 Studio 1 Bath
Price/Unit: $46,940 9 1 Bdr 1 Bath
Price/SF: $108.60
CAP Rate: 7.78%
Total No. of Units: 157
Year Built: 1907
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NOTES118 West St traded on December 22nd, 2017 for $7,369,622 or for $46,940 per unit. The 161 unit Ross Manor Apartment community was 98% occupied at the close of escrow. There was a 1031 Exchange on the buyer's side. There was a seller carry/back and deferred maintenance for the interior. The property closed escrow at a 7.78% CAP Rate.
THE ROSS MANOR APARTMENTS118 West St, Reno, NV, 89501
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
In Escrow 20 Studio 1 Bath
List Price: $1,665,000 1 1 Bdr 1 Bath
Price/Unit: $79,286
Price/SF: $244.85
Total No. of Units: 21
Year Built: 1956
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NOTES
Property not taken to market, off-market offer.
500 N CENTER STREET500 N Center St, Reno, NV, 89501
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THE WINDSOR
RENT COMPARABLES MAP
THE WINDSOR(SUBJECT)
Santa Maria Apartments
Stone Creek Apartments
Gibson Apartments
Truckee River Terrace
130 Chism St
550 S Wells Ave
Park Willow Apartments
Mill Street Manor
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7
8
9
11
20
12
14
15
16
17
13
18
10
4
7
8
1
2
3
5
6
26
PROPERTY NAMETHE WINDSOR
RENT COMPARABLES
27
AVERAGE OCCUPANCY
Avg. 99.38%
0
10
20
30
40
50
60
70
80
90
100
The Windsor Santa MariaApartments
Stone CreekApartments
GibsonApartments
TruckeeRiver
Terrace
130Chism St
550 S WellsAve
Park WillowApartments
Mill StreetManor
PROPERTY NAMETHE WINDSOR
RENT COMPARABLES
28
AVERAGE RENT - MULTIFAMILY
Avg. $687
$0
$120
$240
$360
$480
$600
$720
$840
$960
$1,080
$1,200
The Windsor Santa MariaApartments
Stone CreekApartments
GibsonApartments
TruckeeRiver
Terrace
130Chism St
550 S WellsAve
Park WillowApartments
Mill StreetManor
Efficiencies
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
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OCCUPANCY: 93% | YEAR BUILT: 1922
rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
Efficiency A 23 300 $600 $2.00
Efficiency B 12 300 $725 $2.42
Efficiency C 18 300 $725 $2.42
Total/Avg. 53 300 $671 $2.24
THE WINDSOR214 West St, Reno, NV, 89501
OCCUPANCY: 100% | YEAR BUILT: 1978
1
NOTESSpecials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: no pets. Tenants pay E/G. MGT pays W/S/T. Upgrades include new carpet, new appliances, new countertops, bathroom vanities, interior paint, and vinyl wood flooring in downstairs units. Rent range reflects upstairs vs downstairs units.
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 28 280 $675-$775 $2.59
Total/Avg. 28 280 $725 $2.59
SANTA MARIA APARTMENTS543 W 6th St, Reno, NV, 89503
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OCCUPANCY: 100% | YEAR BUILT: 1940
NOTESSpecial: none offered. RUBS: no. Garage/Storage: no. Pet Policy: no pets. Tenants pay E/G. MGT pays W/S/T. Property just sold with plans to renovate and raise rents.
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 29 270-338 $600-$695 $2.13
1 Bdr 1 Bath 4 500 $650-$725 $1.38
Total/Avg. 33 328 $652 $1.99
STONE CREEK APARTMENTS1250 W 2nd St, Reno, NV, 89503
NOTESSpecials: none offered. RUBS: No. Garage/Storage: no. Pet Policy: no pets. Internet and cable included. Property has been fully upgraded.
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
RENT COMPARABLES
rentpropertyname1
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OCCUPANCY: 100% | YEAR BUILT: 1917
3
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 19 343 $400-$700 $1.60
1 Bdr 1 Bath 5 510 $595-$800 $1.37
Total/Avg. 24 378 $581 $1.54
NOTESSpecials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: no pets. MGT pays E/G/W/S/T. Improvements include paint and carpet.
GIBSON APARTMENTS441 W 2nd St, Reno, NV, 89503
OCCUPANCY: 95% | YEAR BUILT: 1986
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NOTESSpecials: none offered. RUBS: no. Garage/Storage: 18-74SF storage units $1.50/SF rent. Pet Policy: no pets. MGT pays all utilities. Range in rent based on the view (interior facing terrace or exterior facing city/mountains). Plans to repaint terrace for spring 2018. All utilities plus DirecTV and internet included in rent.
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 149 313-465 $875-$1,155 $2.61
1 Bdr 1 Bath 19 472-600 $1,155-$1,200 $2.20
1 Bdr 2 Bath 12 624 $1,155 $1.85
Total/Avg. 180 420 $1,041 $2.48
TRUCKEE RIVER TERRACE501 W 1st St, Reno, NV, 89503
5
OCCUPANCY: 100% | YEAR BUILT: 1960
NOTESSpecials: none offered. RUBS: Yes, based on usage. Garage/Storage: no. Pet Policy: no pets. Tenants pay E/G. MGT pays W/S/T. The property has seen significant interior and exterior upgrades.
Unit Type Units SF Rent Rent/SF
Studio 8 380 $600 $1.58
1 Bdr 2 570 $675 $1.18
Total/Avg. 10 418 $615 $1.47
130 CHISM ST130 Chism St, Reno, NV, 89503
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
RENT COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 100% | YEAR BUILT: 1940
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Unit Type Units SF Rent Rent/SF
Studio 1 Bath 5 300-600 $625-$720 $1.49
1 Bdr 1 Bath 2 600 $725 $1.21
2 Bdr 1 Bath 5 700 $895 $1.28
Total/Avg. 12 579 $774 $1.34
NOTESSpecials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: $200 Deposit. Tenants pay E. MGT Pays W/S/T. Improvements: Marble countertops, hardwood flooring. New roof, plumbing, & electrical. On-site laundry.
550 S WELLS AVE550 S Wells Ave, Reno, NV, 89502
OCCUPANCY: 100% | YEAR BUILT: 1987
7
NOTESSpecials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: no pets. Tenants pay E. MGT pays W/S/T. Improvements include W/Ds, carpet, paint, and refrigerators; on turns. Rent range for furnished units.
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 48 600-650 $725-$750 $1.18
Total/Avg. 48 625 $738 $1.18
PARK WILLOW APARTMENTS160 S Park St, Reno, NV, 89502
8
OCCUPANCY: 100% | YEAR BUILT: 1964
NOTESSpecials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: no pets Tenants pay E/G. MGT Pays W/S/T. Improvements: None at this time.
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 1 400 $550 $1.38
1 Bdr 1 Bath 12 500 $500-$550 $1.05
2 Bdr 1 Bath 1 600 $875 $1.46
Total/Avg. 14 500 $552 $1.10
MILL STREET MANOR810 Mill St, Reno, NV, 89502
THE WINDSOR
32
MARKET
OVERVIEW
MARKET OVERVIEW
RENO-SPARKS-CARSON CITYOVERVIEW
1
Once dominated by government and gambling, the Reno-Sparks-Carson City metro has diversified into a growing high-techmanufacturing and logistics hub in western Nevada, boostingemployment opportunities. A lower cost of living and doing businessthan nearby California lures companies as well as residents. Over thenext five years, more than 40,000 people are expected to join themarket, which encompasses Washoe and Storey counties as well asCarson City. The eastern shore of Lake Tahoe is included in the metro,contributing to an active outdoor recreation segment. A diverse arrayof activities that include gambling and a variety of cultural amenitieskeep the tourism industry growing.
MARKET OVERVIEW
METRO HIGHLIGHTS
LOWER BUSINESS COSTSMore affordable costs and a business-friendly climate attract firms including Switch Data, Apple, Google and Tesla to the region.
STRONG EMPLOYMENT GAINSEmployment growth is expected to rise at a rate nearly double that of the nation over the next five years as companies move to and expand locally.
GAMING, CONVENTIONS AND TOURISMNumerous casinos, hotels, convention sites, lakes, rivers and ski resorts draw visitors and residents to the area.
THE WINDSOR
MARKET OVERVIEW
ECONOMY Revenue from gambling in Washoe County has increased annually since 2015. The economy is rapidly diversifying from a government, tourism and gaming base. A pro-
business environment and its proximity to the California border attract firms. The region is becoming an important center for distribution and industrial expansion as all
West Coast markets can be reached in one day. As an extremely low-cost alternative to industrial expansion in California, the metro draws
companies including Apple, Amazon and Jet.com to open facilities in the metro. Tesla’s battery Gigafactory is also based locally.
SHARE OF 2017 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
University of Nevada, Reno
Renown Regional Medical Center
Peppermill Reno
International Game Technology
Atlantis Casino Resort
Eldorado Resort Casino
Saint Mary's Regional Medical Center
Carson Tahoe Health
State of Nevada
Western Nevada College* Forecast
2
MANUFACTURING7%
OTHER SERVICES 3%21%
AND UTILITIESTRADE, TRANSPORTATION
1%INFORMATION
PROFESSIONAL ANDBUSINESS SERVICES
12%
CONSTRUCTION7%
GOVERNMENT15%
LEISURE AND HOSPITALITY17%
FINANCIAL ACTIVITIES5%
HEALTH SERVICESEDUCATION AND
+ 12%
THE WINDSOR
MARKET OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
The local population is projected to exceed 555,400 people in 2022 after adding roughly 40,000 residents, a growth rate that is nearly double the national level.
Household growth of 9.7 percent is expected by the end of 2022 as nearly 20,000 households are created, generating the need for additional housing options. Home prices remain well below large California markets.
A skilled workforce includes nearly 63 percent of residents age 25 and older have completed some college.
Outdoor activities abound in the metro with golf courses, parks and trails for biking,
running and hiking. The region’s rivers, lakes and reservoir offer the opportunity for
numerous water sports, while the mountains provide a scenic backdrop and snow in the
winter. Cultural venues include the Carson City Symphony, the state capitol, the Nevada
Museum of Art, the Brewery Arts Center and a host of other museums, galleries and
festivals. More than 50,000 students attend local institutions of higher education including
the University of Nevada, Reno Truckee Meadows Community College, Western Nevada
College and Sierra Nevada College. These institutions also provide cultural and sports
venues. The area also supports minor league teams in baseball, basketball and soccer.
* ForecastSources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Moody’s Analytics; U.S. Census Bureau
QUALITY OF LIFE
3
2017 Population by Age
0-4 YEARS
6%5-19 YEARS
18%20-24 YEARS
7%25-44 YEARS
26%45-64 YEARS
27%65+ YEARS
16%
THE WINDSOR
38.82017
MEDIAN AGE:
U.S. Median:
37.8
$53,800 2017 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$56,300
516K2017
POPULATION:
Growth2017-2022*:
7.7%
199K2017
HOUSEHOLDS:
9.7%
Growth2017-2022*:
36
Reno’s economy matures, sparking development across all property sectors. Themarket’s proximity to the Bay Area is supporting an economy beyond the gamingindustry. The area’s lower cost of living is also attractive for Bay Area transplantsattempting to stretch their income further. Tesla is the most notable utilizer of themetro’s favorable location and business-friendly environment. The company pulled112 permits last year to build out internal areas of the factory. The introduction ofTesla’s electric semitruck necessitates a further expansion of production in thecoming years. On the supply side, development is ramping up quickly as buildersfinally move away from primary markets to relieve housing pressure in tertiary metros.Inventory will expand by nearly 3 percent this year, representing the largest increasethis cycle. The South Reno submarket contains most of the completions this year.Approximately 1,400 units are underway in the submarket, including more than 1,000scheduled for delivery in 2019. Builders are also active in the Sparks submarket,where 900 units are underway and scheduled for completion through 2019. Theintroduction of new units has pushed up the number of properties offering leasingincentives to 16 percent. Still-tight conditions are limiting the average incentive to justnine days of free rent.
Out-of-state investors keen on Reno-Sparks area. Investors attempting to balancetheir low-return portfolios in coastal California counties are increasingly turning to themetro. While the prevalence of new projects could entice some larger buyers to thearea, most deals will be in the Class C sector as higher yields remain the primarymotivator. Average cap rates for lower-tier properties were in the mid-6 percent rangelast year, and they should remain relatively consistent during 2018. Properties nearthe University of Nevada, Reno will remain popular for investors due to consistentrenter demand. Since 2010, enrollment at the university has soared by 23 percent to22,700 students. Elsewhere, the gaming industry supports strong apartment demandas many leisure and hospitality positions pay wages that preclude homeownership.Gaming revenue in the county increased by more than 2.3 percent in 2017, anindication that tourism is rising.
Rent Growth Among Nation’s Highest as Vacancy Remains Low
RENO-SPARKS METRO AREA
THE WINDSOR
2018 Multifamily Forecast
4.2% increase
in total employment
50 basis point
increase in vacancy
1,100 units
will be completed
Employment:
Vacancy:
Const ruct ion:
Another healthy year of employment growthis on the deck for Reno as 10,000 jobs arecreated. Last year, 11,100 positions weregenerated.
As inventory rapidly expands, vacancyclimbs 90 basis points by year-end 2018.The rate will climb above the 4 percentthreshold for the first time since early 2015.
The pace of development will increase thisyear when inventory expands by 2.7 percent.Completions in 2018 are nearly as high asthe previous four years combined.
7.3% increase
in effective rents
Rents:A combination of expensive new inventoryand relatively low vacancy will facilitateanother year of healthy rent growth aseffective rents climb to $1,167 per month.During the previous five years, average rentgrowth was 7.8 percent.
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RENO-SPARKS METRO AREA
Outlook: The pace of expansion will slow modestly to 10,000 positions in 2018, representing an increase of 4.2 percent.The professional and business services and education and health services sectors are projected to lead growth.
Employment• Employers added 11,100 jobs during 2017, lifting the number of employed residents by 5.0 percent. Construction
jobs soared 8.6 percent during the period and should continue to climb as several housing projects are plannedaround the metro.
• Manufacturers hired 4,300 workers last year, amounting to a 29.1 percent increase in payrolls. Reno’s proximity to theBay Area is attractive to local firms, including Tesla, which is expanding its Gigafactory.
THE WINDSOR
Outlook: Builders have slated 1,140 units for completion this year, which will raise inventory by 2.7 percent.
Construction• Apartment inventory expanded by 1.4 percent during 2017 as approximately 600 units came online. One of the
largest projects completed last year is the 236-unit Fountainhouse at Victorian Square.
• Nearly 3,100 units were underway as 2018 commenced, with due dates stretching to the end of 2019. The largestdevelopment under construction is Summit, which will include more than 500 units in a mix of affordable and market-rate apartments when completed next year.
Outlook: An influx of new apartments will put upward pressure on vacancy this year, lifting the rate 50 basis points to 4.0percent. Despite the increase, conditions will remain sufficiently tight to enable sizable rent growth. Effective rents climb7.3 percent this year to a monthly average of $1,167 per month.
Vacancy and Rents• Last year, apartment vacancy climbed 60 basis points to 3.5 percent. Vacancy has remained below the 4 percent
threshold since mid-2015.
• Although vacancy inched up last year, the rate remained sufficiently low to support a 11.2 percent rise in the averageeffective rent to $1,088 per month. The South Reno submarket, the metro’s most expensive, recorded a 13.7 percentrise in rents last year.
Outlook: Out-of-state investors will continue targeting apartments in the Reno market in search of yields higher than thoseavailable in the Bay Area. Overall the average cap rate was close to 6 percent entering the year.
Sales Trends• Attractive yields encouraged a 9 percent climb in sales velocity last year. Investor interest was strong near the
University of Nevada, Reno and core locations throughout the metro.
• Apartments in high demand areas such as North Valley and the University submarkets, command over $100,000 perunit as properties in the South Reno area trade hands between $150,000 to $200,000 per unit. Here cap rates rangein the 5 percent range. Higher Yields in the 8-percent area are found in Carson City and Lyon County.
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
DEMOGRAPHICS
Source: © 2017 Experian
Created on September 2018
POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection
Total Population 22,699 131,901 241,207
2017 Estimate
Total Population 21,727 130,026 234,895
2010 Census
Total Population 20,557 121,820 220,937
2000 Census
Total Population 18,888 119,290 210,815
Daytime Population
2017 Estimate 53,265 187,597 317,033
HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection
Total Households 11,912 56,668 98,345
2017 Estimate
Total Households 11,049 54,463 93,620
Average (Mean) Household Size 1.73 2.30 2.43
2010 Census
Total Households 10,407 51,480 88,815
2000 Census
Total Households 9,301 50,227 85,199
Growth 2015-2020 7.81% 4.05% 5.05%
HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units
2022 Projection 11,912 56,668 98,345
2017 Estimate 13,005 60,391 102,336
Owner Occupied 1,523 18,328 39,889
Renter Occupied 9,527 36,135 53,731
Vacant 1,956 5,928 8,716
Persons In Units
2017 Estimate Total Occupied Units 11,049 54,463 93,620
1 Person Units 56.60% 37.91% 32.84%
2 Person Units 27.94% 30.03% 31.71%
3 Person Units 8.06% 13.27% 14.31%
4 Person Units 4.07% 9.74% 10.94%
5 Person Units 1.82% 4.74% 5.55%
6+ Person Units 1.50% 4.30% 4.66%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate
$200,000 or More 2.05% 2.67% 3.24%
$150,000 - $199,000 1.03% 2.19% 2.87%
$100,000 - $149,000 3.75% 7.63% 9.30%
$75,000 - $99,999 5.31% 8.31% 10.09%
$50,000 - $74,999 11.35% 15.59% 17.34%
$35,000 - $49,999 15.37% 15.53% 15.64%
$25,000 - $34,999 13.37% 12.40% 11.90%
$15,000 - $24,999 22.15% 16.80% 14.46%
Under $15,000 25.61% 18.89% 15.16%
Average Household Income $43,750 $55,966 $63,467
Median Household Income $26,375 $36,622 $42,347
Per Capita Income $24,824 $23,992 $25,715
POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age
2017 Estimate Total Population 21,727 130,026 234,895
Under 20 16.92% 23.42% 24.22%
20 to 34 Years 31.03% 27.11% 24.93%
35 to 39 Years 5.24% 5.74% 5.83%
40 to 49 Years 11.17% 11.07% 11.53%
50 to 64 Years 21.04% 18.13% 18.64%
Age 65+ 14.61% 14.54% 14.84%
Median Age 36.80 34.60 35.66
Population 25+ by Education Level
2017 Estimate Population Age 25+ 15,262 87,196 158,415
Elementary (0-8) 4.45% 7.04% 6.16%
Some High School (9-11) 10.45% 11.13% 9.87%
High School Graduate (12) 25.54% 25.14% 25.48%
Some College (13-15) 25.92% 24.50% 25.28%
Associate Degree Only 7.38% 6.01% 6.49%
Bachelors Degree Only 16.60% 15.70% 16.24%
Graduate Degree 8.63% 9.13% 9.28%
Population by Gender
2017 Estimate Total Population 21,727 130,026 234,895
Male Population 56.43% 51.62% 50.76%
Female Population 43.57% 48.38% 49.24%
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IncomeIn 2017, the median household income for your selected geography is$26,375, compare this to the US average which is currently $56,286.The median household income for your area has changed by 2.68%since 2000. It is estimated that the median household income in yourarea will be $29,470 five years from now, which represents a changeof 11.73% from the current year.
The current year per capita income in your area is $24,824, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $43,750, compare this to the USaverage which is $81,217.
PopulationIn 2017, the population in your selected geography is 21,727. Thepopulation has changed by 15.03% since 2000. It is estimated thatthe population in your area will be 22,699.00 five years from now,which represents a change of 4.47% from the current year. Thecurrent population is 56.43% male and 43.57% female. The medianage of the population in your area is 36.80, compare this to the USaverage which is 37.83. The population density in your area is6,906.33 people per square mile.
HouseholdsThere are currently 11,049 households in your selected geography.The number of households has changed by 18.79% since 2000. It isestimated that the number of households in your area will be 11,912five years from now, which represents a change of 7.81% from thecurrent year. The average household size in your area is 1.73 persons.
EmploymentIn 2017, there are 24,909 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that49.13% of employees are employed in white-collar occupations inthis geography, and 50.69% are employed in blue-collar occupations.In 2017, unemployment in this area is 9.27%. In 2000, the averagetime traveled to work was 19.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows:74.88% White, 4.46% Black, 0.77% Native American and 6.46%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.
People of Hispanic origin make up 16.78% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.
PROPERTY NAME
MARKETING TEAM
THE WINDSOR
HousingThe median housing value in your area was $213,218 in 2017,compare this to the US average of $193,953. In 2000, there were1,710 owner occupied housing units in your area and there were7,591 renter occupied housing units in your area. The median rent atthe time was $491.
Source: © 2017 Experian
DEMOGRAPHICS
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THE WINDSOR
DEMOGRAPHICS
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