Download - Montgomery Road Apartments - LoopNet€¦ · Building Name Montgomery Road Apartments Street Address 5144 Montgomery Road City, State, Zip Norwood, OH 45212 County/Township Hamilton

KW COMMERCIAL

3505 Columbia Parkway

Cincinnati, OH 45226JENNIFER DONATHANSenior Investment Advisor0: [email protected] #2004004706

Montgomery Road Apartments

OFFERING MEMORANDUM

PRESENTED BY:

NORWOOD, OH

OFFERING MEMORANDUM

Each Office Independently Owned and Operated kwcommercial.com 2

KW COMMERCIAL

3505 Columbia Parkway

Cincinnati, OH 45226

Confidentiality & Disclaimer

JENNIFER DONATHANSenior Investment Advisor0: [email protected] #2004004706

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sourcesare provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of theproperty 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 orcompleteness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, thatmay be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters ofsignificance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.

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 andinvestigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by theparty including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercialmakes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercialdoes not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished 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 withan attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by theparty with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmentalrequirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. Allproperties and services are marketed by Keller Williams Advisor's Realty in compliance with all applicable fair housing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. Itis submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We includeprojections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisorsshould conduct your own investigation of the property and transaction.

OFFERING MEMORANDUM

PRESENTED BY:

NORWOOD, OH

http://www.kwcommercial.com

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

ADDITIONAL PHOTOS

ADDITIONAL PHOTOS

1PROPERTY INFORMATIONMONTGOMERY ROAD APARTMENTS

OFFERING MEMORANDUM


OFFERING SUMMARY

SALE PRICE: $825,000

NUMBER OF UNITS: 13

CAP RATE: 7.51%

NOI: $61,977

LOT SIZE: 0.13 Acres

YEAR BUILT: 1936

BUILDING SIZE: 8,757 SF

MARKET: Southwest Ohio

SUBMARKET: Norwood

PRICE / SF: $94.21

PROPERTY HIGHLIGHTS• Complete Renovation - Turnkey

• Rents Below Market - Value Add Opportunity

• Attractive & Desirable Rental Market

• Some Tenants Are Xavier Students

Executive Summary

MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION



PROPERTY OVERVIEW

Jennifer M. Donathan, Senior Investment Advisor for KWCommercial is pleased to present for sale 5144 Montgomery Roadin Norwood Ohio. The property is in the final stages of extensivehigh end renovations. The 8,757 sf building has been improvedwith new roof, gutters, fascia board, windows, kitchen cabinets,appliances, granite counter tops, refinished hardwood floors, newbathroom vanity, tub/shower combo with ceramic tile, new lightfixtures, new balconies, new gas boiler, new hot water tank, new a/c units etc. Most tenants are upper classmen/graduate studentsattending the nearby Xavier University. The property consists of 13large one bedroom, one bath units with onsite laundry and somebalconies. The owner pays for heat, water and trash and tenantspay for electric. Heat is provided by a new gas boiler.The property is turnkey and is ready for a new owner. There is stillsome value add opportunity by raising the rents to $800/month foradditional annual income of approximately $10,000+/-.

LOCATION OVERVIEW

The complex is located in Norwood Ohio. Norwood is one ofCincinnati’s up and coming hot spots with signs of the urbanrenaissance and revitalization happening on every corner.Norwood features homes and buildings of gorgeous architecturebuilt in the early 1900’s. Many investors have taken notice andbuildings that were once is disrepair are now being restored totheir original glory. Developers have taken notice of the desirablelocation and new luxury apartments and condos are beingdeveloped, sold and leased all over Norwood. Norwood is home toXavier University and Rookwood Commons & Pavilion along withmany notable eateries & retailers including J. Alexander, Bravo,Taste of Belgium, Buca di Beppo, PF Changs, Jos A. Banks,Whole Foods, Victoria’s Secret and dozens more. The complex isless than 1 mile from the Norwood Lateral which leads to I-71 orI-75 Cincinnati’s 2 major interstates.

Property Description




SALE PRICE $825,000

LOCATION INFORMATION

Building Name Montgomery Road Apartments

Street Address 5144 Montgomery Road

City, State, Zip Norwood, OH 45212

County/Township Hamilton

Market Southwest Ohio

Submarket Norwood

Cross Streets Montgomery Road & Sherman

BUILDING INFORMATION

Building Size 8,757 SF

NOI $61,977

Cap Rate 7.51%

Price / SF $94.21

Year Built 1936

Occupancy % 100%

Tenancy Multiple

Number Of Floors 3

Average Floor Size 2,919 SF

Load Factor Yes

PROPERTY DETAILS

Property Type Multifamily

Property Subtype Low-Rise/Garden

Lot Size 0.13 Acres

APN# 651-0010-0001-00

Submarket Norwood

Property Details




Additional Photos



LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATIONMONTGOMERY ROAD APARTMENTS

OFFERING MEMORANDUM


Montgomery RoadApartments

Regional Map

MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION



Location Maps




Montgomery RoadApartments

Aerial Map



FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

RENT ROLL

UNIT MIX SUMMARY

3FINANCIAL ANALYSISMONTGOMERY ROAD APARTMENTS

OFFERING MEMORANDUM


INVESTMENT OVERVIEW 2019

Price $825,000

Price per Unit $63,461

GRM 7.3

CAP Rate 7.5%

Cash-on-Cash Return (yr 1) 6.29 %

Total Return (yr 1) $31,459

Debt Coverage Ratio 1.26

OPERATING DATA 2019

Gross Scheduled Income $113,400

Other Income -

Total Scheduled Income $113,400

Vacancy Cost $5,670

Gross Income $107,730

Operating Expenses $45,753

Net Operating Income $61,977

Pre-Tax Cash Flow $12,975

FINANCING DATA 2019

Down Payment $206,250

Loan Amount $618,750

Debt Service $49,002

Debt Service Monthly $4,083

Principal Reduction (yr 1) $18,484

Financial Summary

MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS



INCOME SUMMARY 2019

Gross Scheduled Rents $113,400

Gross Income $113,400

EXPENSE SUMMARY 2019

Real Estate Taxes $6,949Insurance $3,679Water/Sewer $6,240Mowing/Landscaping $1,800Advertising $420Electric/Gas $7,320Maintenance/Repairs $10,885Management Fees 7% $7,620Legal $840

Gross Expenses $45,753

Net Operating Income $61,977

Income & Expenses




UNIT

NUMBER

UNIT

BED

UNIT

BATH

UNIT

SIZE (SF)

CURRENT

RENT

CURRENT

RENT (PER SF)

MARKET

RENT

MARKET

RENT/SF

1 1 1 700 $750 $1.07 $800 $1.14

2 1 1 700 $700 $1.00 $800 $1.14

3 1 1 700 $750 $1.07 $800 $1.14

4 1 1 700 $750 $1.07 $800 $1.14

5 1 1 700 $650 $0.93 $800 $1.14

6 1 1 700 $800 $1.14 $800 $1.14

7 1 1 700 $700 $1.00 $800 $1.14

8 1 1 700 $750 $1.07 $800 $1.14

9 1 1 700 $700 $1.00 $800 $1.14

10 1 1 700 $700 $1.00 $800 $1.14

11 1 1 700 $750 $1.07 $800 $1.14

12 1 1 700 $750 $1.07 $800 $1.14

13 1 1 700 $700 $1.00 $700 $1.00

Totals/Averages 9,100 $9,450 $1.04 $10,300 $1.13

Rent Roll




UNIT TYPE COUNT % TOTAL SIZE (SF) MARKET RENT MARKET RENT/SF

one bed / one bath 13 100.0 700 $800 $1.14

Totals/Averages 13 100% 9,100 $10,400 $1.14

Unit Mix Summary

