OFFERING MEMORANDUM Meadow Village Apartments...UNIT MIX SUMMARY FINANCIAL ANALYSIS 3 MEADOW VILLAGE...

KW COMMERCIAL

4001 Westown Parkway

West Des Moines, IA 50266

Meadow Village Apartments

OFFERING MEMORANDUM

JARED HUSMANNDirector0: [email protected]

PRESENTED BY:

801 S. R ST. INDIANOLA, IA

OFFERING MEMORANDUM

Each Office Independently Owned and Operated kwcommercial.com 2

OFFERING MEMORANDUM

Confidentiality & Disclaimer801 S. R ST. INDIANOLA, IA

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness ,veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financialperformance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived,or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and othermatters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independentprofessionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KWCommercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any partyregarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that maybe provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with acertified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies withapplicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed byGreater Des Moines in compliance with all applicable fair housing and equal opportunity laws.

KW COMMERCIAL

4001 Westown Parkway

West Des Moines, IA 50266

PRESENTED BY:

JARED HUSMANNDirector0: [email protected]

Licensed in IOWA to sell Real Estate.

http://www.kwcommercial.com

www.kwcommercial.com 3

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

ADDITIONAL PHOTOS

1PROPERTY INFORMATIONMEADOW VILLAGE APARTMENTS

OFFERING MEMORANDUM


OFFERING SUMMARY

SALE PRICE: $3,072,000

NUMBER OF UNITS: 72

CAP RATE: 8.25%

NOI: $253,504

LOT SIZE: 7.32 Acres

YEAR BUILT: 1970

BUILDING SIZE: 63,180

ZONING: Multi-Residental

MARKET: Indianola

SUBMARKET: McCord Park

PRICE / SF: $48.62

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

TOTAL HOUSEHOLDS 1,254 6,342 8,019

TOTAL POPULATION 3,154 16,904 21,457

AVERAGE HH INCOME $54,429 $65,729 $67,739

PROPERTY OVERVIEWKW Commercial is proud to offer exclusively for sale, Meadow Village. Meadow Village is located in the Indianola, IA sub-marketof Central Iowa and consists of 72 units among 6 brick-buildings. This Low-Income HAP project provides strong cashflow upona purchase and strong barriers of entry due to nature of the HUD subsidy.

PROPERTY HIGHLIGHTS• Strong Cash Return Exceeding 9% in Year One

• Government Subsidized Rental Rates

• Steady Market Occupancy of 98%

• Located in the County Seat

Executive Summary

801 S. R ST. INDIANOLA, IA 1 | PROPERTY INFORMATION



PROPERTY OVERVIEWMeadow Village consists of 72 units divided evenly among 6 buildings. The unit mix is; 12-1Br Units48-2Br Units, and 12-3Br Units. The property is a low-income government subsidized property withan an average rental rate of $725 per month. All utilities are included in the residents rental amountand each unit has individual furnaces and AC units with a centralized water heater for each building.

LOCATION OVERVIEWIndianola is a city in Warren County, Iowa. Located 18 miles south of Des Moines, IA, the population is 15,489and is the county seat. The largest industries in Indianola, IA are Educational Services, Retail Trade, and Finance& Insurance with an average household income of: $55,634.

SITE DESCRIPTIONMeadow Village sits on 7.32 acres which consists of 6 buildings and a large grassy common area as well as acommunity basketball court for residents.

Property Description




SALE PRICE $3,072,000

LOCATION INFORMATIONBuilding Name Meadow Village Apartments

Street Address 801 S R St.

City, State, Zip Indianola, IA 50125

County/Township Warren

Market Indianola

Submarket McCord Park

Side Of Street East

Road Type Paved

Market Type Small

Nearest Highway Hwy 92

Nearest Airport DSM

BUILDING INFORMATIONBuilding Size 63,180 SF

Occupancy % 94.0

Number Of Floors 3

Average Floor Size 702 SF

Year Built 1970

Gross Leasable Area 50,544 SF

Load Factor Yes

Construction Status Existing

Framing Wood

Condition Average

Roof Shingle

Free Standing Yes

Number Of Buildings 6

PROPERTY DETAILSProperty Type Multifamily

Property Subtype Government Subsidized

Zoning Multi-Residental

Lot Size 7.32 Acres

Submarket McCord Park

PARKING & TRANSPORTATIONParking Price Per Month $0/month

Parking Type Surface

UTILITIES & AMENITIESNumber Of Elevators 0

Number Of Escalators 0

Central HVAC Individual Furnace/AC

Laundry Description OnSite

Exterior Description Brick Exterior

Interior Description

Property Details




Additional Photos




LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

2LOCATION INFORMATIONMEADOW VILLAGE APARTMENTS

OFFERING MEMORANDUM


Meadow Village Apartments

Regional Map

801 S. R ST. INDIANOLA, IA 2 | LOCATION INFORMATION



Location Maps

801 S. R ST. INDIANOLA, IA 2 | LOCATION INFORMATION



FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

UNIT MIX SUMMARY

3FINANCIAL ANALYSISMEADOW VILLAGE APARTMENTS

OFFERING MEMORANDUM


INVESTMENT OVERVIEW 2019 FORECAST

Price $3,072,000

Price per Unit $42,666

CAP Rate 8.3%

Cash-on-Cash Return (yr 1) 9.11 %

Total Return (yr 1) $144,380

Debt Coverage Ratio 1.45

OPERATING DATA 2019 FORECAST

Gross Scheduled Income $627,288

Other Income $24,418

Total Scheduled Income $651,706

Vacancy Cost $31,364

Gross Income $620,342

Operating Expenses $366,838

Net Operating Income $253,504

Pre-Tax Cash Flow $78,286

FINANCING DATA 2019 FORECAST

Down Payment $859,500

Loan Amount $2,212,500

Debt Service $175,218

Debt Service Monthly $14,601

Principal Reduction (yr 1) $66,094

Financial Summary

801 S. R ST. INDIANOLA, IA 3 | FINANCIAL ANALYSIS



INCOME SUMMARY 2019 FORECAST PER UNIT

Gross Annual Rent $627,288 $8,712

Other Income $24,418 $339

Gross Income $651,706 $9,051

EXPENSE SUMMARY 2019 FORECAST PER UNIT

Taxes $60,438 $839

Insurance $17,339 $240

Gas/Heat $75,038 $1,042

Water/Sewer $43,748 $607

Garbage/Trash $6,193 $86

Lawn/Snow $4,826 $67

Repairs/Maintenance $96,572 $1,341

Superintendent Salary $25,047 $347

Management (6%) $37,637 $522

Gross Expenses $366,838 $5,094

Net Operating Income $253,504 $3,520

Income & Expenses




UNIT TYPE COUNT % TOTAL RENT

1Br/1Ba 12 16.7 $573

2Br/1Ba 2 2.8 $691

2Br/1Ba 46 63.9 $708

3Br/1Ba 12 16.7 $954

Totals/Averages 72 100% $52,274

Unit Mix Summary




SALE COMPARABLES

4 | SALE COMPARABLES

SALE COMPS

SALE COMPS SUMMARY

SALE COMPS MAP

4SALE COMPARABLESMEADOW VILLAGE APARTMENTS

OFFERING MEMORANDUM


Subject Property801 S R St. | Indianola, IA 50125

$3,072,000Sale Price: 7.32 AcresLot Size: 1970Year Built:

63,180 SFBuilding SF: $48.62Price PSF: 8.25%CAP:

$253,504NOI:

KW Commercial is proud to offer exclusively for sale, Meadow Village. Meadow Village is located in the Indianola, IA sub-market of Central Iowa and consists of 72 unitsamong 6 brick-buildings. This Low-Income HAP project provides strong cashflow upon a purchase and strong barriers of entry due to nature of the HUD subsidy.

1$1,500,000Sale Price: 60,548 SFLot Size: 1980Year Built:

22,680 SFBuilding SF: $66.14Price PSF: 24No. Units:

$62,500Price / Unit: 8.25%CAP: 100%Occupancy:

Uplift Manor2916 30th St. | Des Moines, IA 50310

1

Sale Comps

801 S. R ST. INDIANOLA, IA 4 | SALE COMPARABLES





$34,895Price / Unit: 8.51%CAP: 81%Occupancy:

Southlawn Apartments2516 Perry Park Ave. | Perry, IA 50220

2



$25,833Price / Unit: 11.58%CAP:

1211 Gebhardt StKnoxville, IA 50138

3

Sale Comps




1

2

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SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS

Meadow Village Apartments801 S R St.Indianola, IA 50125

$3,072,000 63,180 SF $48.62 $42,667 8.25% 72

SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS CLOSE

Uplift Manor2916 30th St.Des Moines, IA 50310

$1,500,000 22,680 SF $66.14 $62,500 8.25% 24 On Market

Southlawn Apartments2516 Perry Park Ave.Perry, IA 50220

$1,675,000 33,048 SF $50.68 $34,895 8.51% 48 On Market

1211 Gebhardt StKnoxville, IA50138

$1,550,000 71,315 SF $21.73 $25,833 11.58% 60 On Market

PRICE BLDG SF PRICE/SF PRICE/UNIT CAP # OF UNITS CLOSE

Totals/Averages $1,575,000 42,348 SF $37.19 $35,795 9.45% 44

Sale Comps Summary




801 S R St. | Indianola, IA 50125SUBJECT PROPERTY

12916 30th St.Des Moines, IA 50310

UPLIFT MANOR 22516 Perry Park Ave.Perry, IA 50220

SOUTHLAWN APARTMENTS 3Knoxville, IA50138

1211 GEBHARDT ST

Sale Comps Map




DEMOGRAPHICS

5 | DEMOGRAPHICS

DEMOGRAPHICS MAP

5DEMOGRAPHICSMEADOW VILLAGE APARTMENTS

OFFERING MEMORANDUM


POPULATION 1 MILE 3 MILES 5 MILES

Total Population 3,154 16,904 21,457

Median Age 39.1 33.8 34.0

Median Age (Male) 32.5 31.9 32.9

Median Age (Female) 41.0 35.0 34.9

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total Households 1,254 6,342 8,019

# Of Persons Per HH 2.5 2.7 2.7

Average HH Income $54,429 $65,729 $67,739

Average House Value $171,647 $163,705 $168,636

* Demographic data derived from 2010 US Census

Demographics Map

801 S. R ST. INDIANOLA, IA 5 | DEMOGRAPHICS


OFFERING MEMORANDUM Meadow Village Apartments...UNIT MIX SUMMARY FINANCIAL ANALYSIS 3 MEADOW VILLAGE...

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