SAINT CLOUD, MN 56301 - LoopNet · 2020. 1. 20. · Lawn Service & Snow Removal (2018) $2,340 -...

Presented By:

PHIL REESNESVice [email protected]

Michel Commercial Real Estate International, Inc. | michelcommercialre.com

SAINT CLOUD, MN 56301FOR SALE | MULTIFAMILY INVESTMENT

1331 & 1341 Maine Prairie Rd

CONFIDENTIALITY & DISCLAIMER

PROPERTY INFORMATION3

LOCATION INFORMATION9

FINANCIAL ANALYSIS13

RENT COMPARABLES16

ADVISOR BIOS21

A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .

N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .

E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .

A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.

Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .


PROPERTY INFORMATION


Presented By:


SECTION 1


OFFERING SUMMARYSale Price (Based On Market Rents): $710,000

Sale Price - 1331 (Apts.) $550,000

Sale Price - 1341 (House) $160,000

Number Of Units: 8 Apts. + House

Price Per Unit: Apts. - $68,750

House - $160,000

Cap Rate (Based On Market Rents): Apts. - 6.77%

House - 6.67%

NOI (Based On Market Rents): Apts. - $37,230

House - $10,678

Lot Size: Apts. - 0.45 Acres

House - 0.44 Acres

Year Built: Apts. - 1989

House - 1955

Building Size: Apts. - 6,720 SF

House - 1,368 SF

PROPERTY OVERVIEWThe apartments at 1331 Maine Prairie Road is comprised of 8 apartment units. There are alltwo bed, one bath units. There is one unit with a walk-out patio There are 10 off-streetparking spaces for the tenants use, as well as 7 garage stalls. The owner is not currently rentingthe garages. Each garage could easily rent for $35 per month or more. There is also laundryon-site.

The current owner has done a fantastic job not only maintaining the property, but providingupgrades whenever possible. That being said, all but one of the units have not had a turn in 2or more years. There are 3 tenant that have been at the property for over 8 years. The currentowner never intended to sell his properties, and it shows! Only a recent opportunity for theowner has prompted him to make this property available for purchase. The rents are very lowand there is a significant opportunity to raise the rents beyond the current listed market rentson the rent roll. This is a property you will be proud to own for years to come.

The single-family house at 1341 Maine Prairie Rd has been completely remodeled! Everythingis new! There are 3 bedrooms and 1 bath. Two of the three bedrooms have walk-in closets.There is also a 2 car garage with a garage door opener.

These two properties are being offered as a package. Schedule your showing today!

1331 / 1341 Maine Prairie Rd

SAINT CLOUD, MN 56301

PROPERTY INFORMATION | Executive Summary


LOCATION OVERVIEW

The apartments at 1331 Maine Prairie Road are located in Stearns County inthe City of Saint Cloud. The City of Saint Cloud is located in thegeographical center of Minnesota approximately 60 miles northwest ofMinneapolis. Saint Cloud is the political, cultural, commercial andmanufacturing center for all of Central Minnesota. A very sophisticatedtransportation network makes the Saint Cloud area readily accessible to allparts of the region.A stabilizing force in the community is the fact that the Saint Cloud area ishome to four major institutions of higher learning including Saint CloudTechnical College, The College of Saint Benedict, Saint John's Universityand Saint Cloud State University. Saint Cloud State University is the largestof these with over 16,000 students enrolled.The greater Saint Cloud Tri-County area includes Stearns, Sherburne andBenton County. The population of the Saint Cloud MSA is approximately189,000 and is expected to grow to about 231,000 by 2030. The populationof Sherburne County grew 37% in the last 10 years and is one of the fastestgrowing counties in the state. The population of Stearns County grew 13%in the last 10 years and Benton County grew 12.3% in the last 10 years.The Saint Cloud Area is somewhat recession proof because of its diverseeconomy. The area boasts a mix of manufacturers, agricultural relatedentities, a growing health care industry, emerging professional services, athriving printing industry, several large public sector employers and a veryactive retail component. The Saint Cloud Area is the retail hub of CentralMinnesota with several expansive malls and retail centers. The Saint Cloudarea ranks third in the state, behind only Minneapolis and Saint Paul in retailsales.The business community is continuing to grow at a rapid pace. TheTri-County labor force is expected to expand by nearly 40% between 1990and 2020 as compared to only 21% statewide. As the population and laborforce continue to grow so will the demand for rental housing.



PROPERTY INFORMATION | Property Description


SALE HIGHLIGHTS

• Sold as a package (1331 and 1341 Maine Prairie Rd)

• APARTMENT BUILDING:

• New sidewalk cement in 2016

• New roof in 2014

• New hot water heater in 2014

• All 2 bedroom units

• 7 garage stalls

• Off-street parking

• Laundry facility on-site

• Long-term tenants

• SINGLE FAMILY HOUSE:

• Completely remodeled!

• 2 stall garage

• Washer and Dryer

• 3 bed / 1 bath

• Stainless steel appliances

• Walk-in closets



PROPERTY INFORMATION | Complete Highlights




PROPERTY INFORMATION | Additional Photos

LOCATION INFORMATION


Presented By:


SECTION 2




LOCATION INFORMATION | Regional Map




LOCATION INFORMATION | Location Maps




LOCATION INFORMATION | Aerial MapRetailer Map

FINANCIAL ANALYSIS


Presented By:


SECTION 3


INCOME SUMMARY 1331 PROFORMA 1341 PROFORMA

Market Rents $64,140 -LESS: Vacancy (5% est.) -$3,207 -$870Garage Rent (est.) $2,520 -Laundry Income (2018) $440 -Market Rent - $17,400Gross Income $63,893 $16,530

EXPENSE SUMMARY 1331 PROFORMA 1341 PROFORMA

Caretaker (est.) $2,700 -Rubbish (2018) $996 -Lawn Service & Snow Removal (2018) $2,340 -General Repairs (8% est.) $5,111 $1,322Electric / Gas / Hot Water (2018) $3,293 $603Water / Sewer (2018) $1,911 $76Real Estate Taxes (payable 2019) $6,650 $1,808Insurance (2018) $3,347 $1,060Rental License (2018) $315 $983Gross Expenses $26,663 $5,852

Net Operating Income $37,230 $10,678



FINANCIAL ANALYSIS | Income & Expenses


UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT/SF

101 2 1 725 $600 $0.83 $650 $0.90

102 2 1 725 $585 $0.81 $650 $0.90

103 2 1 725 $565 $0.78 $650 $0.90

104 2 1 725 $585 $0.81 $675 $0.93

201 2 1 725 $585 $0.81 $680 $0.94

202 2 1 725 $585 $0.81 $680 $0.94

203 2 1 725 $600 $0.83 $680 $0.94

204 2 1 725 $595 $0.82 $680 $0.94

1341 3 1 1,368 $1,300 $0.95 $1,450 $1.06

Totals/Averages 7,168 $6,000 $0.84 $6,795 $0.94



FINANCIAL ANALYSIS | Rent Roll

RENT COMPARABLES


Presented By:


SECTION 4


Subject Property

1331 / 1341 Maine Prairie Rd | Saint Cloud, MN 56301

1989Year Built: 0.89 AcresLot Size:

9No. Units: $0.84Avg. Rent/SF:

$667Avg. Rent: 796 SFAvg. Size:

The apartments at 1331 Maine Prairie Road is comprised of 8 apartment units. There are all two bed, one bath units. There is one unit with a walk-out patio There are 10 off-street parking spaces for the tenants use, as well as 7 garagestalls. The owner is not currently renting the garages. Each garage could easily rent for $35 per month or more. There is also laundry on-site.

The current owner has done a fantastic job not only maintaining the property, but providing upgrades whenever possible. That being said, all but one of the units have not had a turn in 2 or more years. There are 3 tenant that have beenat the property for over 8 years. The current owner never intended to sell his properties, and it shows! Only a recent opportunity for the owner has prompted him to make this property available for purchase. The rents are very low andthere is a significant opportunity to raise the rents beyond the current listed market rents on the rent roll. This is a property you will be proud to own for years to come.

The single-family house at 1341 Maine Prairie Rd has been completely remodeled! Everything is new! There are 3 bedrooms and 1 bath. Two of the three bedrooms have walk-in closets. There is also a 2 car garage with a garage dooropener.

These two properties are being offered as a package. Schedule your showing today!

1

The Afton525 2nd Ave S | Waite Park, MN 56387

15,600 SFBldg Size: 24No. Units:

650 SFAvg. Size: $1.01Avg. Rent/SF:

$657Avg. Rent:

1

2

Edjwood Estates2911 Maine Prairie Rd | St. Cloud, MN 56301

1976Year Built: 89,000 SFBldg Size:

114No. Units: 758 SFAvg. Size:

$0.86Avg. Rent/SF: $655Avg. Rent:

2

3

Carrington Apartments701 7th St S | Waite Park, MN 56387



$713Avg. Rent:

3



RENT COMPARABLES | Rent Comps


4

Silver Creek Apartments511 7th St S | Waite Park, MN 56387

1988Year Built: 59,265 SFBldg Size:

25No. Units: 734 SFAvg. Size:

$0.86Avg. Rent/SF: $628Avg. Rent:

4

5

2844 W St. Germain St2844 W St. Germain St | St. Cloud, MN 56301



$598Avg. Rent:

5

6

Point German3346 W St. Germain St | St. Cloud, MN 56301



$733Avg. Rent:

6



RENT COMPARABLES | Rent Comps


1

2

3

4

5

6

SUBJECT PROPERTY RENT/SF BLDG SF # OF UNITS

1331 / 1341 Maine Prairie RdSaint Cloud, MN 56301

$0.84 6,720 SF 9

RENT COMPS RENT/SF BLDG SF # OF UNITS

The Afton525 2nd Ave SWaite Park, MN 56387

$1.01 15,600 SF 24

Edjwood Estates2911 Maine Prairie RdSt. Cloud, MN 56301

$0.86 89,000 SF 114

Carrington Apartments701 7th St SWaite Park, MN 56387

$0.96 13,260 SF 18

Silver Creek Apartments511 7th St SWaite Park, MN 56387

$0.86 59,265 SF 25

2844 W St. Germain St2844 W St. Germain StSt. Cloud, MN 56301

$0.79 15,190 SF 20

Point German3346 W St. Germain StSt. Cloud, MN 56301

$0.90 17,441 SF 22

RENT/SF BLDG SF # OF UNITSTotals/Averages $0.90 34,959 SF 37.17



RENT COMPARABLES | Rent Comps Summary


1331 / 1341 Maine Prairie Rd | Saint Cloud, MN 56301SUBJECT PROPERTY

1525 2nd Ave SWaite Park, MN 56387

THE AFTON 22911 Maine Prairie RdSt. Cloud, MN 56301

EDJWOOD ESTATES

3701 7th St SWaite Park, MN 56387

CARRINGTON APARTMENTS 4511 7th St SWaite Park, MN 56387

SILVER CREEK APARTMENTS

52844 W St. Germain StSt. Cloud, MN 56301

2844 W ST. GERMAIN ST 63346 W St. Germain StSt. Cloud, MN 56301

POINT GERMAN



RENT COMPARABLES | Rent Comps Map

ADVISOR BIOS


Presented By:


SECTION 5


12930 32nd Avenue NorthMinneapolis, MN 55441T [email protected]

PROFESSIONAL BACKGROUND

Phil joined Michel Commercial Real Estate Intl. Inc. in 2002. Specializing in multifamilyhousing, Phil is a valued partner to both buyers and sellers in the acquisition anddisposition of their investment properties, citing his knowledge of the market, accurateproperty valuations, quality contacts, and trusted leadership from initial contact tosuccessful closing. Phil and his wife Lisa have three children and live in the northwesternsuburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playinggolf.

Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on sellingmultifamily housing. The brokerage company represents both private and institutionalgroups, including local owners and national investors. Michel Commercial Real Estatesuccessfully trades 1,500+ units of multifamily housing a year in the Midwest andspecializes in all types of apartments, including market rate, affordable, and studenthousing. The list of apartment projects sold ranges from 10 to 500 units.

PHIL REESNES

Vice President



ADVISOR BIOS | Advisor Bio & Contact 1

SAINT CLOUD, MN 56301 - LoopNet · 2020. 1. 20. · Lawn Service & Snow Removal (2018) $2,340 -...

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