Vernon on washington Portfolio - images4.loopnet.com€¦ · AREA REAL ESTATE ADVISORS A 4800 MAIN...

The informat ion used to create th is brochure was gathered f rom sources deemed re l iab le . Though we do not doubt i ts accuracy , we do not guarantee e or warranty i t . You and your adv isors should conduct a carefu l independent invest igat ion of the informat ion to determine your sat is fact ion and su i tab i l i ty .

AREA REAL ESTATE ADVISORS A 4800 MAIN ST, SUITE 400, KANSAS CITY, MO 64112 P 816.895.4800 W OPENAREA.COM

THE VERNON ON WASHINGTONMULTI-FAMILYMULTIFAMILY INVESTMENT OPPORTUNITYOffering Unpriced - Free & Clear of Existing Debt

18 total unitsBuilt in 2017

KANSAS CITY, MO



OPPORTUNITY:NEW CONSTRUCTION

OPPORTUNITYAREA Real Estate Advisors is pleased to present the Exclusive offering of The Vernon on Washington Apartments, a 18-unit apartment community built in 2017, and located at 4445 Washington Street in Kansas City, MO. The property consists of 9 one bedroom one bath units, and 9 two bedrooms two bath units with a combined average square footage of 763. The Vernon on Washington offers investors the opportunity to purchase a well-constructed, new, and stabilized apartment community in one of Kansas City Premier rental markets that uniquely appeals to young professionals, by choice renters and medical professionals alike.

OPPORTUNITY HIGHLIGHTS: • Stabilized New Construction • Attractive Unit Layouts • Luxury Finishes • Walkability to both the Country Club Plaza and Old Westport • Off-Street Secure Parking with Car Charging Station • Continued Rental Upside • SMART Apartment Technology

AREA ATTRACTIONSStrategically located at 44th and Washington, The Vernon on Washington offers tenants the unique lifestyle of extreme walkability to two of Kansas City’s most desirable areas. Named in the Project for Public Spaces’ list 60 of the World’s Great Places, The Country Club Plaza comprises high-end retail establishments, restaurants, and entertainment venues, as well as offices. To the north, Westport is one of the oldest neighborhoods in Kansas City. Known for its blend of tasty eateries, trendy boutiques and popular nighttime hotspots. The constant buzz of residents and tourists gives Westport a distinct Kansas City experience. The property is also located adjacent to Saint Luke’s Hospital of Kansas City a Tertiary care hospital with more than 450 skilled physicians. The Hospital is known for its Mid America Heart Institute which is currently undergoing a $330 million expansion.



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WHY INVEST IN THE MIDWEST

WHY THE MIDWESTThe Midwest is a cultural crossroads in the heart of the U.S. With low costs of living and an innate passion for community, residents of the region are proud and rooted in strong family values. Low home prices and access to fruitful jobs mean high discretionary incomes are prevalent.

THE KANSAS CITY METROThe Kansas City region covers roughly 9,193 square miles – about the size of New Jersey. KC’s 2.5 million residents reside in 18 counties in Kansas and Missouri. Kansas City is an energetic city forged by a rich history, KC is brimming with culture and activities for locals and visitors alike. KC has invested over 6 billion dollars to create new attractions from performing arts districts to world-renowned athletic facilities. Not to mention more than 55 million Americans can get to Kansas City in less than a day’s drive and KC’s International Airport is just a three-hour flight from each coast. It was voted as one of the ‘Best Cities to Live In’ by Money Magazine, Forbes Magazine and Livability.com.



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Affordable land, housing and low cost of living Storied work ethic

Midwest common sense Culturally rich in food, arts & entertainment

Metro population of 2.1 million Accessible to 55 million Americans in less than a day’s driveKCI airport is a 3 hour flight from each coast Travel + Leisure’s #1 affordable getawayHome to American Century, Hallmark, Garmin& Sprint The birth place of Jazz

Saveur magazine called KC ‘America’s next Known as the City of Fountainsgreat culinary destination’ Home to more than 100 BBQ establishmentsFirst Google Fiber equipped city

KC Royals - 2015 World Series Champs!



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TOP AREA PRIVATEEMPLOYERS

30 MINUTE DRIVETIME DEMOGRAPHICS

POPULATIONGROWTH

POPULATION.........................1,242,539HOUSEHOLDS...........................515,022AVG HH INCOME......................$71,959SOME COLLEGE ORHIGHER.......................................515,876TOTAL EMPLOYEES.................751,100

1. Cerner Corporation - 12,890 employees

2. HCA Midwest Health System - 9,924 employees

3. Saint Luke’s Health System - 8,123 employees

4. Ford Motor Co., KC Assembly Plant - 7,720 employees

5. Children’s Mercy Hospital - 6,969 employees

6. Sprint Corporation - 6,000 employees

7. DST Systems, Inc. - 4,990 employees

8. Garmin, Ltd. - 3,384 employees

9. Truman Medical Center - 3,225 employees

10. Prime Healthcare Services - 3,058 employees

1950 1960 1970 1980 1990 2000 2010 2018

456,622475,539

507,087448,157

435,121442,369

459,787481,420



THE VERNON ON WASHINGTON

PROPERTYHIGHLIGHTS



Name:

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The Vernon on Washington

4445 Washington St

Kansas City, MO

18

2017

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763 SF Pitched Composition Shingle 0.51 Acres

Unit Mix: 9- One Bedroom/One Bath 9- Two Bedroom/Two BathAvg SF: 650 Avg SF: 875 Avg Rent: $1,262 Avg Rent: $1,675 Rent PSF: $1.94 Rent PSF: $1.91

Property Characteristics:

Utilities Metering:

• Private Balconies/Patios • Washer/Dryer• Off-Street Secure Parking• Car Charging Station• Granite Countertops• Stainless Steel Appliances• Amazon’s Echo Dot• Nest• Smart Thermostats• Phillips Smart LED Lighting• Outdoor Lounge with Fire Pit

All units are individually metered

Area Real Estate Advisors is please to present The Vernon on Washington, a 18-unit apartment community built in 2017. Located at 4445 Washington Street in Kansas City, MO. The Vernon on Washington offers investors a stablized turn-key investment opportunity to purchase a property that has recently been developed right in the heart of one of the city's most attractive entertainment locations, Plaza Westport.



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THE VERNON ON WASHINGTON

FINANCIAL ANALYSIS


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The Vernon on Washington4445 Washington St.

Kansas City, MO 64111

Property InformationNumber of Units 18 Units

Rentable Square Feet 13,725 SF

Average Square Feet per Unit 763 SF

Year Built 2017

Forecasted OperationsScheduled Market Rent per Month $26,433 per Month

Effective Gross Income (EGI) per Month $29,609 per Month

Net Operating Income (NOI) per Month $23,197 per Month

Real Estate Taxes per Unit $525 per Unit

Insurance per Unit $300 per Unit

Utilities per Unit $1,410 per Unit

Total Controllable Expenses per Unit $1,878 per Unit

Total Expenses per Unit $4,113 per Unit

Management Fee 3.50% of EGI

Replacements & Reserves per Unit $300 per Unit

AssumptionsAnnual Increase in Income 3%

Loss to Lease 0.5%

Vancancy Rate 10%

Annual Increase in Expenses 2%


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Units Type Unit SF Total SFMarket Rent

Monthly Mkt. Rent

Annual Mkt. Rent Rent/SF Unit Mix %

9 2bd/2ba 875 7,875 $1,675 $15,075 $180,900 $1.91 50.00%9 1bd/ 1ba 650 5,850 $1,262 $11,358 $136,296 $1.94 50.00%18 763 13,725 $1,469 $26,433 $317,196 $1.93 100.00%

T-12 Acutals

T-6 Annualized Pro Foma

$200,560 $298,200 $317,196($11,171) ($10,980) 0.5% ($1,586)

($71,460) ($93,321) 10.00% ($31,720)$117,929 $193,899 $283,890

$1,008 $976 $6,000$28,560 $32,940 $32,949

$29,568 $33,916 $38,949

$147,497 $227,815 $322,839

UNIT MIX

Less: Loss to LeaseLess: Vacancy

Income

Total Other Income

Scheduled Market Rent

Net Rental Income

Plus: AirBnBPlus: Fees

Effective Gross Income


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Effective Gross Income $227,815 $322,839

Expenses Per Unit Actuals Per Unit Pro FormaReal Estate Taxes $1,022 $18,396 $525 $9,450

Insurance $395 $7,110 $300 $5,400

Utilities $1,446 $26,028 $1,410 $25,380

Contract Services $150 $2,700 $200 $3,600

R&M $621 $11,178 $550 $9,900

Marketing $219 $3,942 $50 $900

General Admin $383 $6,894 $150 $2,700

Management Fee 3.5% $617 $11,106 $628 $11,299

Replacement Reserves $300 $5,400 $300 $5,400Total Expenses $5,153 $92,754 $4,113 $74,029

Real Estate Taxes, Insurance, & Utilities Per Unit: $2,863 $51,534 $2,235 $40,230

Total Controllable Expenses Per Unit: $2,290 $41,220 $1,878 $33,799

Total Expenses Per Unit: $5,153 $92,754 $4,113 $74,029

Net Operating Income $135,061 $248,810

AREA REAL ESTATE ADVISORS A 4800 MAIN ST, SUITE 400, KANSAS CITY, MO 64112 P 816.895.4800 W OPENAREA.COMThe informat ion used to create th is brochure was gathered f rom sources deemed re l iab le . Though we do not doubt i ts accuracy , we do not guarantee e or warranty i t . You and your adv isors should conduct a carefu l independent invest igat ion of the informat ion to determine your sat is fact ion and su i tab i l i ty .

Income Monthly EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10Scheduled Market Rent $26,433 $317,196 $326,712 $336,513 $346,609 $357,007 $367,717 $378,749 $390,111 $401,814 $413,869Loss to Lease ($132) ($1,586) ($1,634) ($1,683) ($1,733) ($1,785) ($1,839) ($1,894) ($1,951) ($2,009) ($2,069)Vancacy ($2,643) ($31,720) ($32,671) ($33,651) ($34,661) ($35,701) ($36,772) ($37,875) ($39,011) ($40,181) ($41,387)Other Income $3,246 $38,949 $40,117 $41,321 $42,561 $43,837 $45,153 $46,507 $47,902 $49,339 $50,820Effective Gross Income $26,903 $322,839 $332,525 $342,500 $425,563 $438,330 $451,480 $465,024 $478,975 $493,344 $508,145

Real Estate Taxes $788 $9,450 $9,639 $9,832 $10,028 $10,229 $10,434 $10,642 $10,855 $11,072 $11,294Insurance $450 $5,400 $5,508 $5,618 $5,731 $5,845 $5,962 $6,081 $6,203 $6,327 $6,453Utilities $2,115 $25,380 $25,888 $26,405 $26,933 $27,472 $28,022 $28,582 $29,154 $29,737 $30,331Contracted Services $300 $3,600 $3,672 $3,745 $3,820 $3,897 $3,975 $4,054 $4,135 $4,218 $4,302Repairs & Maintenance $825 $9,900 $10,098 $10,300 $10,506 $10,716 $10,930 $11,149 $11,372 $11,599 $11,831Marketing $75 $900 $918 $936 $955 $974 $994 $1,014 $1,034 $1,054 $1,076General & Administrative $225 $2,700 $2,754 $2,809 $2,865 $2,923 $2,981 $3,041 $3,101 $3,163 $3,227Management Fee 3.5% $11,299 $11,638 $11,988 $14,895 $15,342 $15,802 $16,276 $16,764 $17,267 $17,785Replacement Reserve $450 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400Total Expenses $5,228 $74,029 $75,515 $77,034 $81,134 $82,797 $84,499 $86,239 $88,018 $89,838 $91,700Op Ex % of Gross Income 23% 23% 22% 19% 19% 19% 19% 18% 18% 18%

Net Operating Income $21,676 $248,810 $257,010 $265,467 $344,429 $355,533 $366,981 $378,786 $390,957 $403,506 $416,445

CASH FLOW PROJECTION

Expenses



GRANT KOLLMAND 816.777.2861E [email protected]

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