STONEGATE APARTMENTS - LoopNet · STONEGATE APARTMENTS. STONEGATE APARTMENTS | 2. EXCLUSIVE...

S TO N E G AT E A PA R T M E N T S

STONEGATE APARTMENTS | 2

EXCLUSIVE OFFERING

Vanguard Real Estate Advisors (“Vanguard”) is pleased to present the exclusive opportunity to purchase Stonegate Apartments (“Stonegate” or “Property”), a premier Class A community consisting of 80 units in the Longview MSA. The Property is conveniently located just ten miles east of downtown Longview and fourteen miles west of downtown Marshall in the highly desirable community of Hallsville which has an estimated population of 4,321. Stonegate was built in phases by the current Owner from 2013 – 2017 and consists of an ideal mix of one- and two-bedroom units with well-appointed interiors and appliances. Overall, the units average a spacious 935 square feet and include full size washer/dryer connections and large walk-in closets in each unit. The Property is currently 91.25 percent occupied and is well located, just one block south of heavily trafficked West Main Street (US Highway 80) in close proximity to many of the area’s major retailers and employers.

Stonegate has been extremely well-maintained and offers strong in-place cash flow from day one while also providing a new investor considerable upside potential through increasing rents, adding community amenities, implementing more aggressive marketing strategies, and streamlining expenses.

Financing: Stonegate is being offered on a Cash-to-Note basis. The assumable non-recourse CMBS loan was originated in April 2019 for $6,000,000 with three years of interest only and carries an interest rate of 5.08 percent, with a thirty-year amortization period, and maturing in March 2029.

INVESTMENT SUMMARY

Property Stonegate Apartments

Address 402 Willow Street, Hallsville, TX 75650

Price Priced by Market

Number of Units 80 Units

Years Built 2013-2017

Net Rentable Area 74,800 SF

Average Unit Size 935 SF

Average Market Rent per Unit $932

Average Market Rent per SF $1.00

Average Effective Rent per Unit $896

Average Effective Rent per SF $0.95

Occupancy 91.25%

* Market Rents and Occupancy as of March 3, 2020

** Effective Rent reflects the Trailing One Month Market Rent net of Concessions and Loss-to-Lease

UNIT MIX Type Description No. of

UnitsUnit Size

Market Rent

Rent per SF

A1 1 Bed / 1 Bath 24 725 $862 $1.19

B1 2 Bed / 2 Bath 56 1,025 $962 $0.94

Totals/Averages 80 935 $932 $1.00

* As of March 3, 2020



INVESTMENT HIGHLIGHTS

Distinctive Class A Apartment Community

• Developed in phases from 2013-2017

• Attractive mix of one- and two-bedroom units with high-end finishes

• Community amenities include a sparkling pool and on-site leasing office

Strategic Location

• Ideally located in quaint bedroom community of Hallsville

• One block from major thoroughfare West Main Street (US Highway 80)

• Close proximity to the area’s major retailers and employers

• Only ten miles east of downtown Longview, fourteen miles west of downtown Marshall, and less than one mile south of Hallsville North Elementary School

Attractive In-Place Returns

• Strong in-place yield

• 91.25 percent occupied

• Rental collections continue to exhibit positive trends

Upside Potential

• Ability to implement more aggressive marketing and leasing strategies to increase occupancy which is currently 91.25 percent

• Potential to add community amenities such as a grill/picnic area near the pool or covered parking

• Ability to streamline certain expense line items, as Ownership is self-managing the Property

• Potential to raise rents to market level, as current rents are well below the competitive set

Cash-to-Note Opportunity

• Stonegate is being offered on a Cash-to-Note basis allowing a new investor to assume the attractive existing non-recourse debt



EXTERIOR PHOTOS

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INTERIOR PHOTOS


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INTERIOR PHOTOS



VANGUARD REAL ESTATE ADVISORS

15400 Knoll Trail Drive, Suite 380 Dallas, TX 75248

www.VanguardREA.com

JORDAN CORTEZ Managing Principal 214-556-1951 [email protected]

CHRIS LUSSIER Director 214-556-1954 [email protected]

JUSTIN TIDWELL Senior Director 214-556-1955 [email protected]

MICHAEL REED Associate 214-556-1952 [email protected]

MASON JOHN Director 214-556-1953 [email protected]

CONTACT INFORMATION

OFFERING PROCEDURES

Stonegate Apartments is being offered to principals only, subject to the limiting conditions described in the Offering

Memorandum and the Confidentiality Agreement. Prospective investors should recognize the following:

Property Inquiries – All property information inquires should be addressed to Vanguard. Please contact Jordan Cortez at

214-556-1951 ([email protected]) or Justin Tidwell at 214-556-1955 ([email protected]).

Property Tours – Property tours are highly recommended and will be offered upon request. To arrange a personal tour

of the Property, please contact Jordan Cortez at 214-556-1951 ([email protected]) or Justin Tidwell at

214-556-1955 ([email protected]).

Purchase Offer Instructions – Purchase offers should be submitted on a Letter of Intent basis and should clearly reflect, at

a minimum, the purchase price for the Property, earnest money deposit amounts, allocation of closing costs, due diligence

period, and closing period.

Financing – The Property is offered on a Cash-to-Note basis.

Disclaimer – Owner reserves the right, at its sole discretion, to reject any and all offers to purchase the Property and/or to

terminate discussions with any prospective investors, at any time, with or without notice. Owner shall not be bound until

a mutually agreed contract is executed by and delivered to all parties.

S TO N E G AT E A PA RT M E N TS402 Willow Street | Hallsville, TX 75650

INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS:• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (a client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH – INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and

advice to, and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:

• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name or Primary Assumed Business Name: Vanguard Real Estate Advisors | License No. 9003054 | [email protected] | 214-556-1951Designated Broker of Firm: Jordan Cortez | License No. 494942 | [email protected] | 214-556-1951 Licensed Supervisor of Sales Agent/Associate: Justin Tidwell | License No. 647170 | [email protected] | 214-556-1955Sales Agent/Associate: Mason John | License No. 682887 | [email protected] | 214-556-1953 Sales Agent/Associate: Chris Lussier | License No. 669896 | [email protected] | 214-556-1954

JORDAN CORTEZ | Managing Principal 214-556-1951 | [email protected]

MASON JOHN | Director 214-556-1953 | [email protected]

MICHAEL REED | Associate 214-556-1953 | [email protected]

JUSTIN TIDWELL | Senior Director 214-556-1955 | [email protected]

CHRIS LUSSIER | Director 214-556-1954 | [email protected]

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