Offering Memorandum - LoopNet · Marcus & Millichap is pleased to present for sale the Westminster...

WESTMINSTER APARTMENTSMacon, GA

Offering Memorandum

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 and should 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, unverified information 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 due diligence

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, the future 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 or asbestos, 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 any tenant'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 be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

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 or name 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.

WESTMINSTER APARTMENTS

Macon, GA

ACT ID Y0230385

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Pricing Detail

Acquisition Financing

Growth Rate Projections

Cash Flow

MARKET COMPARABLES 03Sales and On-Market Comparables

Rent Comparables

MARKET OVERVIEW 04Market Analysis

Demographic Analysis



4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Bibb County Board Education 4,200

Personnel Department 3,800

Central GA Hlth Systems Inc 3,601

Hospice of Central Georgia 3,300

Professional Systems LLC 3,200

Corporation of Mercer Univ 1,632

Mercer Univ Schl Medicine 1,200

County of Bibb 863

Norfolk Southern Corporation 535

BellSouth 500

McDonalds 489

Armstrong World 453

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 5,503 49,322 96,530

2016 Census Pop 5,563 49,335 96,520

2016 Estimate HH 2,195 18,603 37,080

2016 Census HH 2,222 18,543 37,076

Median HH Income $26,281 $25,819 $31,171

Per Capita Income $14,424 $16,022 $20,062

Average HH Income $35,994 $41,811 $50,811

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

4 1 Bedroom 600

24 2 Bedroom 1,100

12 3 Bedroom 1,300

40 Total 44,400

VITAL DATA

Price $1,400,000 CURRENT PROFORMA - YEAR 1

Down Payment 30% / $420,000 CAP Rate 9.50% 10.82%

Loan Amount $980,000 GRM 5.87 5.66

Loan Type Proposed NewNet Operating Income

$132,980 $151,425

Interest Rate / Amortization 4.50% / 30 YearsNet Cash Flow After Debt Service

17.47% / $73,394 20.44% / $85,839

Price/Unit $35,000 Total Return 21.24% / $89,203 24.37% / $102,375

Price/SF $31.53

Number of Units 40

Rentable Square Feet 44,400

Year Built / Renovated 1972 / 2014

5


#

OFFERING SUMMARY

PROPERTY OVERVIEW:

Marcus & Millichap is pleased to present for sale the Westminster Apartments located at 1655 North Atwood Drive, Macon, Georgia 31204. Built in 1972, the property is a

40-unit, townhome-style apartment complex that comprises four 1 bedroom/1 bath units, 24 2 bedroom/1.5 bath units, and 12 3 bedroom/1.5 bath units. Total rentable

square footage for the property is 44,400 SF. Each unit features a washer/dryer hookup, central heating and air conditioning, ceiling fans, and complete kitchen appliances

including a trash disposal and dishwasher.

MARKET OVERVIEW:

Macon (officially MaconBibb County) is a city located in the state of Georgia, United States. Macon lies near the geographic center of the state, approximately 85 miles

(137 km) south of Atlanta, hence the city's nickname "the Heart of Georgia."

Settled near the fall line of the Ocmulgee River, Macon is the county seat of Bibb County and had a 2014 estimated population of 153,691. Macon is the principal city of

the Macon metropolitan area, which had an estimated population of 231,259 in 2014. Macon is also the largest city in the MaconWarner Robins Combined Statistical Area

(CSA), a larger trading area with an estimated 417,473 residents in 2014; the CSA abuts the Atlanta metropolitan area just to the north.

The subject property is located off of Columbus Road (2014 Average Daily Traffic Counts: 32,900 Vehicles per Day) which feeds from Mercer University Drive; the property

is also located a half mile from Eisenhower Parkway (2015 Average Daily Traffic Counts: 21,200 Vehicles per Day). Both thoroughfares flank Macon Mall and other various

retail shopping centers that feature prominent retailers and eateries such as Olive Garden, Macy's, Burlington Coat Factory, Chick-fil-A, BB&T, Applebee's, The Home

Depot, PetSmart, Guitar Center, Marshalls, Target, Walmart Supercenter, Best Buy, Kroger, and much more. The property is also surrounded by many residential

neighborhoods and housing developments . Located approximately two miles from the property are entry and exit points to Interstate 475. Also located approximately 2.5

miles from the property is Middle Georgia State University - Macon Campus.

INVESTMENT OVERVIEW:

The Westminster Apartments is being offered for $1.4 Million or a 9.50% cap rate on current income. This property is ideal for an investor who is looking to acquire an

asset that not only is generating generous cash flows but also does not need a lot of hands-on management from the potential owner. The current owner has maintained a

below market expense-to-income ratio at 36.7%. Current physical occupancy is at 88% versus below 50% when the current owner took over the property. Two units are

currently being used as an office and additional storage space. A potential investor has the opportunity to transition those two units into profit-generating units.

INVESTMENT OVERVIEW

6


#

OFFERING SUMMARY

▪ Price per Unit: $45,000; 88% Physical Occupancy

▪ Excellent 5-Mile Demos: Population - 96,530 People; Avg.

HHI - $50,811

▪ Current CAP: 9.50% | Proforma CAP: 10.82%

▪ Potential 17.47% Cash-on-Cash Return

▪ Centrally Located to Lots of Retail Shopping Options and

Other Services

INVESTMENT HIGHLIGHTS

INVESTMENT OVERVIEW

7


#

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,260,000

Loan Type Proposed New

Interest Rate 4.50%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 70%

Debt Coverage Ratio 2.23

THE OFFERING

Property Westminster Apartments

Price $1,400,000

Property Address 1655 North Atwood Drive,Macon,GA

Assessors Parcel Number M084-0193

Zoning R-3

SITE DESCRIPTION

Number of Units 40

Number of Buildings 7

Number of Stories 2

Year Built/Renovated 1972

Rentable Square Feet 44,400

Lot Size 2.75 Acres

Type of Ownership Fee Simple

Parking 80 Spaces

Parking Ratio 2 Spaces per Unit

Landscaping Minimal

Topography Mostly Flat

CONSTRUCTION

Foundation Poured Concrete

Framing Wood and Drywall

Exterior Masonry Brick and Vinyl Siding

Parking Surface Asphalt

Roof Gable Design with Asphalt Shingles

MECHANICAL

HVAC Central Air and Heating

Wiring Copper

Fire Protection Yes

8

REGIONAL MAP


9

LOCAL MAP


10

AERIAL PHOTO


11

PHOTOS – 1 Bedroom


12

Kitchen

Dining RoomLiving Room

Hallway



13

Hallway Living RoomStairway to Apartment

Utility Closet Half BathFull Bath

Small BedroomKitchen Large Bedroom



14

Stairway to Apartment

Large Bedroom

Kitchen


15

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

16

FINANCIAL ANALYSIS


17

RENT ROLL DETAIL

FINANCIAL ANALYSIS


18

RENT ROLL DETAIL

FINANCIAL ANALYSIS


OPERATING STATEMENT

19

FINANCIAL ANALYSIS


PRICING DETAIL

20

FINANCIAL ANALYSIS


GROWTH RATE PROJECTIONS

21

FINANCIAL ANALYSIS


CASH FLOW

22

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—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 financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.1 billion

total national

volume in 2016

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 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING


23


24

MARKET

COMPARABLES

8


SALES COMPARABLES MAP

25


(SUBJECT)

Linkwood Manor

Apartments

Creekside Vistas

Grove at River Place

North Avenue Apartments

650 Pebble Street

Twin Oaks Apartments

3561-3569 Thorpe Street

275 Straight Street

1

2

3

4

5

7

8

6

26

Avg. 9.32%

Avg. 9.39%

0

1

3

4

6

7

8

10

11

13

14

Westminster

Apartments

Linkwood

Manor

Apartments

Creekside

Vistas

Grove at

River Place

North

Avenue

Apartments

650 Pebble

Street

Twin Oaks

Apartments

3561-3569

Thorpe

Street

275

Straight

Street

PROPERTY NAMEWESTMINSTER APARTMENTS

COMPARABLES

Average Cap Rate

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

27

Avg. $37.60

Avg. $38.16

$0.00

$6.30

$12.60

$18.90

$25.20

$31.50

$37.80

$44.10

$50.40

$56.70

$63.00

Westminster

Apartments

Linkwood

Manor

Apartments

Creekside

Vistas

Grove at

River Place

North

Avenue

Apartments

650 Pebble

Street

Twin Oaks

Apartments

3561-3569

Thorpe

Street

275

Straight

Street


COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

28

Avg. $34,273

Avg. $32,859

$0

$7,000

$14,000

$21,000

$28,000

$35,000

$42,000

$49,000

$56,000

$63,000

$70,000

Westminster

Apartments

Linkwood

Manor

Apartments

Creekside

Vistas

Grove at

River Place

North

Avenue

Apartments

650 Pebble

Street

Twin Oaks

Apartments

3561-3569

Thorpe

Street

275

Straight

Street


COMPARABLES

Average Price Per Unit

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


29

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $1,400,000 4 1 Bdr

Price/Unit: $35,000 24 2 Bdr

Price/SF: $31.53 12 3 Bdr

CAP Rate: 9.50%

Total No. of Units: 40

Year Built: 1972

Underwriting Criteria

Income $209,966 Expenses $76,986

NOI $132,980 Vacancy ($29,442)

WESTMINSTER APARTMENTS1655 North Atwood Drive, Macon, GA, 31204

1

Units Unit Type

Close Of Escrow: 11/4/2016 40 1 Bdr Bath

Sales Price: $1,400,000 15 2 Bdr Bath

Price/Unit: $25,000 1 3 Bdr Bath

Price/SF: $31.25

CAP Rate: 7.00%


Year Built: 1968

NOTES

On November 4th, 2016 the 56 unit apartment building at 3389 Sherry

Drive in Macon, GA 31206 was sold for $1,400,000, or $25,000 per unit.

The property was sold as an investment at a cap rate of 7% with 100%

occupancy, according to the listing broker. The buyer indicated that the

cap rate was closer to 11%. Information was verified with the buyer and

the listing broker.

LINKWOOD MANOR APARTMENTS3389 Sherry Dr, Macon, GA, 31206

Units Unit Type

Close Of Escrow: 12/20/2016 68 1 Bdr 1 Bath

Days On Market: 201 32 2 Bdr 1.5 Bath

Sales Price: $2,550,000

Price/Unit: $25,500

Price/SF: $32.25

CAP Rate: 12.02%


Year Built: 1973

Underwriting Criteria

Income $655,920 Expenses $350,255

NOI $306,451

2

NOTES

Formerly WoodCreek Apartments On December 20th, 2016 the 100 unit

apartment community known as the Creekside Vistas at 4690 Log Cabin

Drive in Macon, GA was sold for $2,550,000, or $25,500 per unit. The

property was sold as an investment at a reported cap rate of 11.95%.

Infomration was verified with the listing broker.

CREEKSIDE VISTAS4690 Log Cabin Dr, Macon, GA, 31204

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


30


Units Unit Type

Close Of Escrow: 2/1/2016 100 1 Bdr Bath

Days On Market: 139 60 2 Bdr Bath

Sales Price: $14,525,000 80 2 Bdr Bath

Price/Unit: $60,521

Price/SF: $61.82

CAP Rate: 6.15%


Year Built: 1988

3

NOTES

On February 1st, 2016, Madison River Place, a 240-unit multi-family

community located at 4501 Sheraton Rd, Macon, GA traded from Equus

Capital Partners to a JV Partnership consisting of Mulberry Properties and

BRT Realty Trust for a confirmed sales price of $14.525MM. Mulberry

Properties has a 20% interest in the property and BRT has an 80%

interest in the property. An in-place Cap Rate was reported at 6.15% or

an NOI of $893,288. The property was at 96% occupancy at the time of

closing. $11.2MM of mortgage debt was obtained in connection with the

acquisition. The mortgage matures in 2026 with a 4.39% interest rate.

Additional lender information was not available at the time of this report.

The property delivered in 1988 and sits on 19.73 acres. The community

has a mixture of 1BR (120) and 2BR (138) and 3BR (10) units. Community

ammenties include a business center, fitness center, laundry facilities,

GROVE AT RIVER PLACE4501 Sheraton Dr, Macon, GA, 31210

4

Units Unit Type

Close Of Escrow: 5/16/2016 20 2 Bdr 1.5 Bath

Sales Price: $620,000

Price/Unit: $31,000

Price/SF: $28.97

CAP Rate: 11.71%


Year Built: 1968

NORTH AVENUE APARTMENTS853 North Ave, Macon, GA, 31211

Units Unit Type

On Market 16 2 Bdr Bath

Days On Market: 27

List Price: $325,000

Price/Unit: $20,312

Price/SF: $31.25

CAP Rate: 10.30%


Year Built: 1967

5

650 PEBBLE STREET650 Pebble St, Macon, GA, 31201

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31


On Market

Days On Market: 9


Price/Unit: $68,750

Price/SF: $60.25

CAP Rate: 7.85%


Year Built: 1920

6

TWIN OAKS APARTMENTS185 Clisby Pl, Macon, GA, 31204

7

Units Unit Type

On Market 8 1 Bdr 1 Bath

Days On Market: 63


Price/Unit: $17,375

Price/SF: $33.90

CAP Rate: 8.00%


Year Built: 1961

3561-3569 THORPE STREET3561 Thorpe St, Macon, GA, 31204

Units Unit Type

On Market 4 1 Bdr Bath

Days On Market: 641


Price/Unit: $25,000

Price/SF: $27.23

CAP Rate: 11.40%


Year Built: 1969

8

275 STRAIGHT STREET275 Straight St, Macon, GA, 31204

8


RENT COMPARABLES MAP


(SUBJECT)

Prospect Heights/Carroll

Gardens

English Village Apartments

Log Cabin Courts

Oak Hill Apartments

Vista Oaks

Carroll Gardens

Ridge Pointe

Pursley Court Apartments

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

8

1

2

3

5

6

32


RENT COMPARABLES

33

AVERAGE OCCUPANCY

Avg. 90.62%

0

10

20

30

40

50

59

69

79

89

99

Westminster

Apartments

Prospect

Heights/Carroll

Gardens

English

Village

Apartments

Log Cabin

Courts

Oak Hill

Apartments

Vista Oaks Carroll

Gardens

Ridge

Pointe

Pursley

Court

Apartments


RENT COMPARABLES

34

AVERAGE RENT - MULTIFAMILY

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

Westminster

Apartments

Prospect

Heights/Carroll

Gardens

Carroll

Gardens

Ridge

Pointe

Pursley

Court

Apartments

1 Bedroom

$0

$70

$140

$210

$280

$350

$420

$490

$560

$630

$700

Westminster

Apartments

Prospect

Heights/Carroll

Gardens

English

Village

Apartments

Log Cabin

Courts

Oak Hill

Apartments

Vista Oaks Carroll

Gardens

Ridge

Pointe

2 Bedroom

Avg. $709

Avg. $588Avg. $485

$0

$80

$160

$240

$320

$400

$480

$560

$640

$720

$800

Westminster

Apartments

English

Village

Apartments

Carroll

Gardens

Ridge

Pointe

3 Bedroom

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


35

YEAR BUILT: 1972

rentpropertyname1


Unit Type Units SF Rent Rent/SF

1 Bdr 4 600 $450 $0.75

2 Bdr 24 1,100 $481 $0.44

3 Bdr 12 1,300 $542 $0.42

Total/Avg. 40 1,110 $496 $0.45

WESTMINSTER APARTMENTS1655 North Atwood Drive, Macon, GA, 31204

OCCUPANCY: 73% | YEAR BUILT: 1973

1

NOTES

Air Conditioning, Alarm, Courtyard, Heating, Tub/Shower, Washer/Dryer,

Washer/Dryer Hookup Concessions: 1 Amenities: Air Conditioning,

Alarm, Courtyard, Heating, Tub/Shower, Washer/Dryer, Washer/Dryer

Hookup


1 Bdr 4 700 $497 $0.71

2 Bdr 32 950 $650 $0.68

Total/Avg. 36 922 $633 $0.69

PROSPECT HEIGHTS/CARROLL GARDENS365 Rogers Ave, Macon, GA, 31204

2


NOTES

Air Conditioning, Ceiling Fans, Dishwasher, Disposal, Heating, Kitchen,

Oven, Range, Refrigerator, Washer/Dryer Hookup Concessions: 0.8

Amenities: Air Conditioning, Ceiling Fans, Dishwasher, Disposal, Heating,

Kitchen, Oven, Range, Refrigerator, Washer/Dryer Hookup


2 Bdr 23 1,048 $515 $0.49

3 Bdr 26 1,310 $578 $0.44

Total/Avg. 49 1,187 $548 $0.46

ENGLISH VILLAGE APARTMENTS2350 English Ave, Macon, GA, 31204

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

LOG CABIN COURTS

4053 LOG CABIN DR, MACON, GA, 31204

LOG CABIN COURTS


LOG CABIN COURTS


36

LOG CABIN COURTS4053 LOG CABIN DR, MACON, GA, 31204


3


2 Bdr 20 900 $450 $0.50

Total/Avg. 20 900 $450 $0.50

NOTES

Dining Room, Kitchen, Oven, Range, Washer/Dryer Hookup

Concessions: 0.8 Amenities: Dining Room, Kitchen, Oven, Range,

Washer/Dryer Hookup

OAK HILL APARTMENTS3330 RIDGE AVE, MACON, GA, 31204


4


2 Bdr 36 1,150 $651 $0.57

Total/Avg. 36 1,150 $651 $0.57

NOTES

Air Conditioning, Ceiling Fans, Dishwasher, Heating, Ice Maker, Kitchen,

Range, Refrigerator, Walk-In Closets, Washer/Dryer Hookup, Yard

Concessions: 0.7 Amenities: Air Conditioning, Ceiling Fans, Dishwasher,

Heating, Ice Maker, Kitchen, Range, Refrigerator, Walk-In Closets,

Washer/Dryer Hookup, Yard

VISTA OAKS1335 HARTLEY ST, MACON, GA, 31206

5


2 Bdr 28 1,080 $500 $0.47

Total/Avg. 28 1,080 $500 $0.46


NOTES

Heating, Kitchen, Oven, Range Concessions: 0.8 Amenities: Heating,

Kitchen, Oven, Range

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

CARROLL GARDENS

520 BAXTER AVE, MACON, GA, 31201

CARROLL GARDENS


CARROLL GARDENS


37

CARROLL GARDENS520 BAXTER AVE, MACON, GA, 31201


6


1 Bdr 8 700 $459 $0.66

2 Bdr 32 950 $656 $0.70

3 Bdr 4 1,200 $755 $0.63

Total/Avg. 44 927 $629 $0.68

NOTES

Accent Walls, Air Conditioning, Cable Ready, Carpet, Ceiling Fans,

Heating, Kitchen, Laundry Facilities, Oven, Range, Refrigerator, Tile Floors,

Vinyl Flooring, Washer/Dryer Hookup Concessions: 0.8 Amenities:

Accent Walls, Air Conditioning, Cable Ready, Carpet, Ceiling Fans,

Heating, Kitchen, Laundry Facilities, Oven, Range, Refrigerator, Tile Floors,

Vinyl Flooring, Washer/Dryer Hookup

RIDGE POINTE2981 RIDGE AVE, MACON, GA, 31204


7


1 Bdr 16 881 $595 $0.68

2 Bdr 16 1,240 $696 $0.57

3 Bdr 8 1,344 $795 $0.60

Total/Avg. 40 1,117 $675 $0.61

NOTES

Air Conditioning, Alarm, Cable Ready, Ceiling Fans, Dishwasher, Disposal,

Fireplace, Heating, Ice Maker, Kitchen, Oven, Range, Refrigerator,

Sunroom, Trash Pickup - Curbside, Tub/Shower, Washer/Dryer Hookup

Concessions: 0.4 Amenities: Air Conditioning, Alarm, Cable Ready,

Ceiling Fans, Dishwasher, Disposal, Fireplace, Heating, Ice Maker,

Kitchen, Oven, Range, Refrigerator, Sunroom, Trash Pickup - Curbside,

Tub/Shower, Washer/Dryer Hookup

PURSLEY COURT APARTMENTS455 PURSLEY ST, MACON, GA, 31201

8


1 Bdr 26 450 $390 $0.87

Total/Avg. 26 450 $390 $0.87


NOTES

Range, Refrigerator, Tub/Shower Concessions: 0.9 Amenities: Range,

Refrigerator, Tub/Shower


38

MARKET

OVERVIEW

MARKET OVERVIEW


39

ATLANTA METRO AREA

Diverse Growth Igniting Apartment Demand,

Declining Vacancy and Elevating Rents

Vacancy remains tight despite substantial construction. Growth in degreed fields will expand recruiting

to outside of Atlanta and support additional relocations to the metro during 2017, fortifying rental housing

demand. New industries will also play a vital role. Notably, the metro has become a hotbed for television

and film production, which are bringing hundreds of new jobs to the area. A shortage of production facilities

represents the motivation for Georgia Motion Picture Studios to build a $280 million mixed-use development

that will become the state’s largest TV and film production lot. Construction begins this year along Atlanta’s

northeast perimeter and will include more than 600 apartments. Construction crews remain active around

the metro, with several complexes coming online in Midtown and Buckhead. Despite another year of sizable

supply growth, healthy tenant demand will tighten the vacancy rate for an eighth consecutive year and raise

the average rent to an all-time high in 2017.

Value-add opportunities dominating deal flow. Investor optimism regarding the metro’s economic outlook

will encourage transaction activity this year and create new opportunities for owners to bring their properties

to market. Investors favor Class B/C garden-style properties within the perimeter near access to major

transportation routes. In these areas, improvements and updated amenities can increase market rents and

raise property revenue. First-year returns for these assets typically start in the high-5 percent band. The

Cumberland/Galleria area also will draw investor interest this year as a new stadium for the Atlanta Braves

opens. Several multifamily complexes will be completed near the stadium, providing potential opportunities

for investors in institutional-grade assets. Complexes in this area typically trade with cap rates in the low-6

percent range, but the new demand drivers could intensify bidding and place downward pressure on first-

year returns.

*Estimate ** Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

MARKET OVERVIEW


40

ATLANTA METRO AREA

2017 Market Forecast

Corporate expansions drive household growth, moving Atlanta up

six positions.

Atlanta employers will create 68,000 positions in 2017, extending gains

recorded over the past six years. Last year, approximately 79,000 jobs

were added.

More than 12,000 apartments remain on track for delivery this year, up from

10,800 units in 2016.

Strong tenant demand pushes vacancy down to 4.3 percent. Net

absorption of 12,600 units cut the vacancy rate 50 basis points one

year ago.

Positive demand drivers and a reduction in vacancy support a 5.0 percent

rise in the average rent to $1,128 per month in 2017. An increase of 6.7

percent was posted last year.

Cap rates in the low-6 percent area remain up to 150 basis points higher

than the typical first-year returns in gateway cities and will attract out-of-

state investors, primarily from New York, California and South Florida, to the

Atlanta apartment market.

* Estimate ** Forecast

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

NMI Rank

14, up 6 places

Employment

up 2.5%

Construction

12,000 units

Vacancy

down 20 bps

Rent

up 5.0%

Investment

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on May 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Population 5,547 48,405 95,286

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2016 Estimate 7,186 56,062 131,834

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Households 2,231 18,317 36,877

▪ 2016 Estimate


Average (Mean) Household Size 2.53 2.59 2.47

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 1.64% -1.54% -0.55%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2021 Projection 2,231 18,317 36,877

2016 Estimate 2,475 22,316 44,279

Owner Occupied 945 7,967 17,506

Renter Occupied 1,250 10,637 19,574

Vacant 280 3,713 7,199

▪ Persons In Units

2016 Estimate Total Occupied Units 2,195 18,603 37,080

1 Person Units 27.61% 29.66% 32.10%

2 Person Units 31.57% 28.60% 30.17%

3 Person Units 18.41% 17.38% 16.02%

4 Person Units 12.39% 12.11% 11.33%

5 Person Units 6.20% 6.62% 5.70%

6+ Person Units 3.83% 5.63% 4.68%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2016 Estimate

$200,000 or More 0.25% 1.49% 2.29%

$150,000 - $199,000 0.81% 0.98% 1.65%

$100,000 - $149,000 3.18% 4.12% 6.46%

$75,000 - $99,999 5.51% 5.62% 7.84%

$50,000 - $74,999 14.90% 13.12% 14.84%

$35,000 - $49,999 12.98% 12.95% 12.86%

$25,000 - $34,999 14.53% 12.96% 11.70%

$15,000 - $24,999 20.03% 19.39% 16.16%

Under $15,000 27.79% 29.35% 26.21%

Average Household Income $35,994 $41,811 $50,811

Median Household Income $26,281 $25,819 $31,171

Per Capita Income $14,424 $16,022 $20,062

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2016 Estimate Total Population 5,503 49,322 96,530

Under 20 31.02% 32.03% 29.15%

20 to 34 Years 21.92% 21.21% 21.94%

35 to 39 Years 5.77% 5.60% 5.82%

40 to 49 Years 11.03% 11.35% 11.58%

50 to 64 Years 18.31% 17.67% 18.39%

Age 65+ 11.94% 12.13% 13.13%

Median Age 32.62 32.34 34.10

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 3,348 29,450 60,143

Elementary (0-8) 3.88% 4.39% 3.72%

Some High School (9-11) 15.13% 16.17% 14.28%

High School Graduate (12) 40.70% 37.56% 33.11%

Some College (13-15) 20.19% 19.29% 19.92%

Associate Degree Only 8.62% 6.78% 6.29%

Bachelors Degree Only 8.19% 9.02% 13.12%

Graduate Degree 2.32% 5.08% 7.90%

▪ Population by Gender

2016 Estimate Total Population 5,503 49,322 96,530

Male Population 44.04% 45.52% 46.89%

Female Population 55.96% 54.48% 53.11%

41

Income

In 2016, the median household income for your selected geography is

$25,819, compare this to the US average which is currently $54,505.

The median household income for your area has changed by -1.96%

since 2000. It is estimated that the median household income in your

area will be $30,121 five years from now, which represents a change

of 16.66% from the current year.

The current year per capita income in your area is $16,022, compare

this to the US average, which is $29,962. The current year average

household income in your area is $41,811, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 49,322. The

population has changed by -3.43% since 2000. It is estimated that

the population in your area will be 48,405.00 five years from now,

which represents a change of -1.86% from the current year. The

current population is 45.52% male and 54.48% female. The median

age of the population in your area is 32.34, compare this to the US

average which is 37.68. The population density in your area is

1,744.61 people per square mile.

Households

There are currently 18,603 households in your selected geography.

The number of households has changed by -6.80% since 2000. It is

estimated that the number of households in your area will be 18,317

five years from now, which represents a change of -1.54% from the

current year. The average household size in your area is 2.59 persons.

Employment

In 2016, there are 20,562 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

52.75% of employees are employed in white-collar occupations in

this geography, and 47.21% are employed in blue-collar occupations.

In 2016, unemployment in this area is 9.37%. In 2000, the average

time traveled to work was 22.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

20.78% White, 75.38% Black, 0.03% Native American and 0.86%

Asian/Pacific Islander. Compare these to US averages which are:

70.77% White, 12.80% Black, 0.19% Native American and 5.36%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 2.74% of the current year

population in your selected area. Compare this to the US average of

17.65%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $80,406 in 2016, compare

this to the US average of $187,181. In 2000, there were 10,093 owner

occupied housing units in your area and there were 9,868 renter

occupied housing units in your area. The median rent at the time was

$349.

Source: © 2016 Experian

DEMOGRAPHICS

42

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