Offering Memorandum FOR SALE...6151 Lakeside Drive Suite 1000 | Reno, NV 89511. 775.332.2800. The...

avisonyoung.com6151 Lakeside Drive Suite 1000 | Reno, NV 89511775.332.2800

The information contained herein was obtained from sources deemed reliable and isbelieved to be true; it has not been verified and as such, cannot be warranted nor formany part of any future contract. DBA Avison Young Western Alliance Commercial Inc.

PREPARED BY:

Offering Memorandum FOR SALEMultifamily

John Pinjuv, SIORManaging [email protected]

Jessie Rich- Greer, MSRE, CCIM, CPMAssociate775.332.7309jessie.greer@avisonyoung,com

410-418 East Lee Street, Carson City, NevadaAvison Young | Western Alliance Commercial, Inc. (“Broker”) has been engaged as the exclusive advisor for the sale of 410-418 East Lee Street .

This Offering Memorandum was prepared by Avison Young | Western Alliance Commercial, Inc. (“Broker”) solely for the use of prospective purchasers of the property located at 410-418 East Lee Street in Carson City, Nevada. Neither the Broker nor the seller make any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum.

Prospective purchasers of the Property are advised that changes may have occurred in the physical or financial condition of the Property since the time this Offering Memorandum or the financial statements therein were made by Broker and Seller and are based upon assumptions or events beyond the control of Broker and Seller, and therefore may be subject to variation. Seller has not, and will not, provide Broker or any prospective purchaser with any income or expense figures, budgets, or projections regarding the Property other than as provided in due diligence material. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by Seller and the signature of a duly authorized officer of Seller is affixed to a Purchase Sale Agreement prepared by Seller.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you will hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Seller, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Seller or Broker.

If you have no interest in the Property at this time, please return this Offering Memorandum immediately to:

John Pinjuv, SIOR Jessie Rich-Greer, MSRE, CCIM, CPM6151 Lakeside Drive Suite 1000 6151 Lakeside Drive Suite 1000Reno, NV 89511 Reno, NV 89511775.332.7300 775.332.7309

7 Unit Multifamily For Sale 410-418 East Lee Street | 1

410-418 East Lee Street, Carson City, Nevada

SECTIONInvestment Overview 01

Executive SummaryInvestment Overview Property Summary

FINANCIAL ANALYSIS 02Rent Roll SummaryRent Roll DetailOperating Statement

PROPERTY HIGHLIGHTS 03Property DescriptionDemographics AerialParcel Map

MARKET COMPARABLES 04Competing Listing Rent ComparablesSold Comparables

MARKET OVERVIEW 05Carson City Overview Carson City Demographics



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Walton’s Chapel of the Valley

Carson City Recreation Division

Carson Aquatic Facility

Bank of America

South Carson

Pioneer High School

Carson Tahoe Specialty Medical

Center

4

5

6

12

4

56

7

7



VITAL DATA

Price $998,500

Current

Price/Unit $142,643 Cap rate 5.3%

Price/SF $207 Net operating Income $53,010

UNIT MIXNumber of Units Unit Type Approx. sq ft Approx. total Sq Ft

4 1 bed 1 bath 500 Sq Ft 2000 Sq Ft



7 3900 Sq Ft



VALUE ADD OPPORTUNITY

All seven units are substantially below market lease rates. A RUBS (ratio utility billing system) can be implemented to charge back the pro-rata share of common area water, sewer and gas.

OVERVIEW

Lee street apartments is a seven unit multi-family property that comprises of two buildings on one assessed parcel number. It is located in a mature submarket of Carson City. This location is advantageous due to its proximity to downtown and many amenities within walking distance. The front building adjacent to East Lee Street was built in 1958 and has four one bedroom one bath units that are approximately 500 square feet. The rear building was built in 1995 and comprises of three units. The units are townhome style with two one bedroom one bath and a two bedroom one bath unit of approximately 600 and 700 square foot respectively.


Kitchen & Living Room Kitchen Living Room

Stairs Bedroom Bathroom


THE OFFERINGProperty Lee Street Apartments

Price $998,500

Property Address410-418 Lee Street

Carson City, Nevada

Zoning MFA

SITE DESCRIPTION Number of Units 7

Number of Buildings 2

Number of Stories 2

Year Built/ Renovated 1958/ 1995

Improve Building Sq Ft* 4,808 Sq Ft

Lot Size .230 Acres

Type of Ownership Fee Simple

Parking Spaces 8

Parking Ratio 1.14:1

Landscaping Mature

Topography Flat

UTILITIES Water Carson City Utilities Department

Phone AT&T

Electric NV Energy

Gas Southwest Gas Corporation

7 Unit Multifamily For Sale 410-418 East Lee Street | 7Source: Carson City Assessor Square Footage


Donuts To Go

FISH Thrift Store

O’ Reilly Auto Parts

Grocery Outlet Bargain Store

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4

2 3

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2

3

4

410-418 East Lee Street, Carson City, NevadaCurrent Potential

Unit Type # of Units Average sq ft Rental Range Average Rent Average Rent sq ft Monthly Income Average Rent Average Rent sq ft Monthly Income

1 bed/1 bath 4 500 $675-740 $702 $1.40 $2,808 $780 $1.56 $3,120

1 bed/1 bath 2 600 $775-970 $873 $1.45 $1,746 $1,000 $1.67 $2,000

2 bed/1 bath 1 700 $1000 $1000 $1.43 $1,000 $1,100 $1.57 $1,100

Total 7 600 $858 $960

Gross Annualized Rents $66,648 $74,640


$702 $873

$1,000 $780

$1,000 $1,100

$0$200$400$600$800

$1,000$1,200

1 bed/1 bath 1 bed/1 bath 2 bed/1 bath

Average Rents

Current Potential

Unit Mix

1 bed/1 bath 1 bed/1 bath 2 bed/1 bath

Building Apartment Current Rent Lease End Sq Ft Comment Front 412 E Lee $740 May 2019 ~500

414 E Lee $690 April 2019 ~500

416 E Lee $675 Month- to- Month ~500

418 E Lee $690 April 2019 ~500

$2,795

Rear 410 E Lee #1 $970 October 2019 ~600 Townhome with backyard. Newly Refurbished.

410 E Lee #2 $1,000 January 2020 ~700 Townhome with backyard. Newly Refurbished.

410 E Lee #3 $775 Month-to-Month ~600

Townhome with backyard. Vacant as of4/1/2019

* Owner plans to refurbish the unit and rent at $975

$2,745

Grand Total $5,540



Financials CurrentGross Potential Rent $66,480

Loss/Gain to Lease- Vacancy $3,324 5%

Gross Scheduled Rent $63,156

Effective Rental Income $63,156

Other Income $-

Total Gross Income $63,156

Expenses

Cleaning/Maintenance $220

Insurance $1,029.50

Legal/Professional $203.50

Repairs/Maintenance $1,607.50

Supplies $53.50

Taxes $2,617.25

Utilities $4,414

Total Expenses $10,145.25

NOI $53,010.75

Expense ratio 16%

Expense/unit $1,449.32

Expense/sq ft $2.11




Beverly Dr

3

C-A-L Ranch Store

Sun King Window Tinting

San Marcos Grill

Sierra Madre Apartments

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34


Location Features: 414 Lee street is centrally located in the heart of Carson City. It is situated at the terminus of Lee streetmaking it a great family friendly location.


Total Units:Unit Mix:

Parking Spaces:Building Size:Property Type:

Seven Six- 1 bed 1 bath One- 2 bed 2 bath 16 Stalls4,808 ± sf Multi-Family



Burton St

Lee St

Beverly Dr


Lee St

N S

tew

art S

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Address: 3912 Village DriveBuilding Size: 5,244± sfNo. Units: 2Cap Rate: 6.00%Asking Price: $369,000.00Price/unit: $184,500.00



Property Name Address Bed/Bath

SF Rent Year Built

Parkway Terraces Apts. 603 E College Parkway 1/12/2

866 sf968 sf

$1399$1499-$1599

2000

Park Portofino Mid-Town

101-107 S. Harbin Avenue 2/1.5 950-1000 sf $1125 1998

Park Portofino 3272 N. Roop Street 2/1.5 950 sf $1125 1999

Sunset Carson City Apts. 970 N. Saliman Road 1/12/1

713 sf 923 sf

$775$875

1973

Parkway Plaza 20 College Parkway 1/12/2

700 sf894 sf

$703$844

1979

Royal Vista 3230 Imperial Way 1/1 595 sf $725-$799 1978

Bella Lago Village 1600 Airport Road 1/12/2

544 sf925 sf

$875$1295

1979

Shenandoah Villas 101 Conestoga Drive 1/12/1

2/1.52/1.5

655 sf844 sf936 sf978 sf

$909$989

$1009$1079

1974

Villas at Dolphin Bay 730 Silver Oak Drive 1/12/22/2

831 sf1026 sf1167 sf

$1300$1500$1600

2006



Address: 300 S Carson Meadow DriveBuilding Size: 27,624± sfNo. Units: 30Cap Rate: 6.34%Sold Price: $1,371,500.00Date Sold: 4/1/2016

Address: 2060 College ParkwayBuilding Size: 70,400± sfNo. Units: 207Cap Rate: 7.46%Sold Price: $5,700,000.00Date Sold: 1/1/2015

Address: 1301 Como StreetBuilding Size: 26,448± sfNo. Units: 34Cap Rate: 7.24%Sold Price: $1,600,000.00Date Sold: 3/1/2015

Address: 603-697 College ParkwayBuilding Size: 149,323± sfNo. Units: 176Cap Rate: 6.94%Sold Price: $18,650,000.00Date Sold: 4/1/2013

Address: 966 Round House LaneBuilding Size: 2,200 ± sfNo. Units: 2Cap Rate: 6.0%Sold Price: $340,000.00Date Sold: 8/31/2017

Address: 3945 Pheasant DriveBuilding Size: 5,580± sfNo. Units: 6Cap Rate: 5.0%Sold Price: $631,000.00Date Sold: 8/4/2017


Beverly

Dr

N Stewart St

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2

Carson City Senior Center

Carson City Environmental Health

410-418 East Lee Street, Carson City, NevadaOVERVIEW

Carson City is a centrally located community situated in western Nevada and bordered by Washoe and Storey counties to the north and Douglas County to the south. Nestled along the majestic Sierra Nevada Mountains, Carson City offers an ideal climate and breathtaking beauty. Nevada's capital city offers great advantages including affordable housing, and abundant labor force. With a strong support of industry, Carson City has quietly become Nevada's leading manufacturing city with 14 percent of its workers in manufacturing, compared to the state average of four percent. "The Rating Guide to Life in America's Small Cities" rated Carson City as the 19th best "micropolitan area" in the nation. The recent book "Boomtown USA" from the National Association of Industrial & Office Properties ranked Carson City in its top 50 communities in the West for the greatest opportunities for business, jobs and lifestyle and a favorite relocation spot for companies interested in low taxes, affordable housing and real estate costs and an abundant labor force.

Carson City is the state capital of Nevada, which has time and again been recognized as the #1 business-friendly state in the country. This ranking is based on taxes, electricity costs, workers' compensation costs, total crime rate, right to work, number of bureaucrats, and state minimum wage. Carson City is a favorite relocation spot for companies interested in low taxes, affordable housing and real estate costs and an abundant labor force.

BUSINESS ADVANTAGE

The incentives of doing business in Nevada are expansive. Nevada boasts one of the most liberal tax structures in the nation and from a tax-planning perspective, the return on investment in the form of tax saving dollars can be enormous.


TAXESSales Tax RateIn Carson City, the sales tax rate is 7.475.

Property Tax RateIn Carson City, the 2009-10 average county wide tax rate is 3.2928.

Calculating Real Property TaxesThe formula for calculating real property tax is as follows:•Taxable Value x .35 = Assessed Value•Assessed Value x Tax Rate = Total Real Property Tax

Source: Carson City Economic Development

http://nv.diversifynevada.com/resources/carson_city




Year Population2008 57,600

2007 57,723

2006 57,701

2005 57,104

2004 56,146Male Female

Year Est. Population # % # %2008 56,274 29,006 51.5 27,268 48.5

2007 57,594 29,694 51.6 27,900 48.4

2006 58,029 29,912 51.5 28,117 48.5

2005 57,139 29,211 51.1 27,928 48.9

Source: Carson City Economic Development



Offering Memorandum FOR SALE...6151 Lakeside Drive Suite 1000 | Reno, NV 89511. 775.332.2800. The...

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