156-unit high cash flowing opportunity located throughout ...€¦ · Income Current Pro-Forma Gross Scheduled Rent $1,190,780 $1,207,836 Less: Vacancy/Deductions 13.9% $165,182 5.0%

West Tennessee Portfolio Exclusive Offering Memorandum

156-unit high cash flowing opportunity located throughout West Tennessee

COSGROVE ADVISORY GROUP

6 Cadillac Dr. Suite 100 | Brentwood TN 37027 615.997.2900 | www.marcusmillichap.com

3837 US-45 N1544 Hwy 70 E 33 Holiday Dr

156Total Units

1940-1980Year Built

7 Property Portfolio

23 Wayson LN

22650 E Main St

15220 Highland Dr

200 Stockade St

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from the Cosgrove Advisory Group of Marcus & Millichap Real Estate Investment Services of Tennessee, Inc. and should not be made available to any other person or entity without the written consent of the Cosgrove Advisory Group. This Marketing Brochure has been prepared to provide summary, unverified information to

prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Cosgrove Advisory Group and Marcus & Millichap have not made any investigation, and make no warranty or

representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal

regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, the Cosgrove Advisory Group and Marcus & Millichap have not verified, and will not verify, any of the information contained herein, nor has the Cosgrove Advisory Group or Marcus & Millichap conducted any investigation regarding these matters and they make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Seller

retains all rights and discretion to determine the offer and acceptance process including but not limited to the right to accept or reject any offer in its sole and absolute discretion. Seller shall only be bound by duly executed and enforceable agreements entered into, if any. ALL MATTERS PRIVILEGED AND CONFIDENTIAL.

NON-ENDORSEMENT NOTICEThe Cosgrove Advisory Group and Marcus & Millichap are not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this

marketing package. The presence of any corporation logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of the Advisory Group or Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of the Cosgrove Advisory

Group or Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR COSGROVE ADVISORY GROUP ADVISOR FOR MORE DETAILS.

COSGROVE ADVISORY GROUPINVESTMENT ADVISOR

PATRICK RAINEY

D +1 615-997-2867C +1 337-740-9608 [email protected]

SENIOR INVESTMENT ADVISOR

PAT COSGROVE


TABLE OF CONTENTS

01 - Investment Summary

02 - Property Overview

03 - Location Overview

04 - Financial Overview

List Price: $4,200,000

Marcus & Millichap has been selected to exclusively market for sale a 7-property, 156-unit portfolio of efficiency apartments located across Western Tennessee. This offering will allow a potential investor to purchase an abundant number of cash flowing units located in the Jackson, McKenzie, Huntingdon, Clifton, and Counce markets.

Offers should be presented in the form of a non-binding Letter of Intent, spelling out the significant terms and conditions of the Purchaser’s offer including, but not limited to: 1) asset pricing, 2) due diligence and closing time frame, 3) earnest money deposit, 4) a description of the debt/equity structure, and 5) qualification to close. The purchase terms shall require all cash to be paid at closing. Offers should be delivered to the attention of Patrick Rainey or Pat Cosgrove.

AT NO POINT SHOULD TENANTS OR STAFF BE CONTACTED REGARDING THE SALE OF WEST TENNESSEE PORTFOLIO APARTMENTS

INVESTMENT ADVISOR

PATRICK RAINEY


SENIOR INVESTMENT ADVISOR

PAT COSGROVE


List Price: $4,200,000

Number of Units: 156Approx. Year Built: 1940-1980Combined Lot Size: 15.23 AcresTotal Occupancy: 96%

Income Current Pro-Forma

Gross Scheduled Rent $1,190,780 $1,207,836

Less: Vacancy/Deductions 13.9% $165,182 5.0% $60,392

Total Effective Rental Income $1,025,578 $1,147,444

Other Income $0 $0

Effective Gross Income $1,025,578 $1,147,444

Less: Expenses 57.0% $584,713 52.6% $603,732

Net Operating Income $440,865 $543,713

Operating Data

Expenses Current Pro-Forma

Real Estate Tax 26,668 26,668

Insurance 39,959 41,158

Utilities – Total 218,681 225,241

Repairs & Maintenance 94,034 96,855

Marketing & Maintenance 2,000 2,060

Payroll 97,987 100,927

General & Administrative 35,082 36,134

Legal & Professional 5,663 5,833

Operating Reserves 39,000 40,170

Management Fee 25,639 28,686

Total Expenses $584,713 $603,732

Expenses/Unit $3,748 $3,870

Scheduled Potential

Unit Type # of Units Rental Range Average Rent Average Rent /SF Monthly Income Average Rent Average Rent / SF Monthly Income

2 Bed 1 Bath 156 $450-$758 $636 N/A $99,230 $639 N/A $99,656

Totals/Weighted Averages 156 $450-$758 $636 $0.00 $9,9230 $639 $0.00 $99,656

Gross Annualized Rents $1,190,760 $1,195,877

As of August, 2020

Returns Current Pro-Forma

CAP Rate 10.50% 12.95%

GRM 3.53 3.48

PROPERTY OVERVIEW

02

Property #1

Address: 15220 Highland Dr. McKenzie, TN 38201Parcel No. (APN) 009016D-B-00100Number of Units: 38

Property Highlights:

● Unit Mix: 1 Bed 1 Bath● New roofing installed in 2019● Heavy renovations done on the property● All units have stoves & refrigerators

Buildings on a Slab

Located on the busiest road in McKenzie (9,040 traffic count)

Total Gross Income: $177,090


Property #2

Address: 22650 E Main St Huntingdon, TN 38344Parcel No. (APN) 009072-04100Number of Units: 18


● Unit Mix: 1 Bed 1 Bath● All units have stoves & refrigerators● Renovated in 2017

Buildings on a Slab and Crawl Space

Located on the busiest road in Huntingdon (6,880 traffic count)



Property #3

Address: 3837 Highway 45 N Jackson, TN 38305Parcel No. (APN) 033-02800-000033Number of Units: 23


● Unit Mix: 1 Bed 1 Bath● New Roofing installed in 2019● All units have stoves & refrigerators

Buildings on a Slab

Located on one of the busiest road in Jackson (17,250 traffic count)



Property #4

Address: 1544 Highway 70 E Jackson, TN 38305Parcel No. (APN) 057064-06901/ 057064-06900Number of Units: 28


● Unit Mix: 1 Bed 1 Bath● New Roof in 2019● Unit Mix 1 Bed 1 Bath● All units have stoves & refrigerators

Buildings have a Crawl Space



Property #5

Address: 33 Holiday Dr Jackson, TN 38305Parcel No. (APN) 057055D-A-02309/ 057055D-A-02308/ 057055D-A-02310/ 057055D-A-02310Number of Units: 17


● Unit Mix: 1 Bed 1 Bath● All units have stoves & refrigerators

Buildings on Slab

Located on one of the busiest road in Jackson (28,700 Traffic Count)



Property #6

Address: 200 Stockade St Clifton, TN 38425Parcel No. (APN) 091050C-E-01500Number of Units: 8


● Unit Mix: 1 Bed 1 Bath● All units have stoves & refrigerators

Units 1-5 on Slab 6-8 have a Crawl Space



Property #7

Address: 23 Wayson Rd Counce, TN 38326Parcel No. (APN) 036162B-E-00200/ 036162B-E-00100Number of Units: 24


● Unit Mix: 1 Bed 1 Bath● All units have stoves & refrigerators● Property includes a pool

Buildings on a Slab



Interior Photos

03

LOCATION OVERVIEW

FINANCIAL OVERVIEW

04

As of August, 2020

West Tennessee Portfolio Rent Roll Summary

Scheduled Potential

Unit Type # of Units Avg Sq Feet Rental Range Average Rent Average Rent /SF Monthly Income Average Rent Average Rent / SF Monthly Income

1 Bed 1 Bath 156 N/A $450 - $758 $636 N/A $99,230 N/A N/A $99,656

Totals/Weighted Averages 156 $0 $636 $0.00 $99,230 $0.00 $0.00 $99,656

Gross Annualized Rents $1,190,760 $1,195,877

Notes:

Unit Distribution Unit Rent

1 Bedroom

%100

Income Current Pro-Forma Notes Per Unit Per SF

Gross Potential Rent 1,195,877 1,207,836 7,743 0.00

Loss / Gain to Lease (5,177) 0.4% 0 0 0.00

Gross Scheduled Rent 1,190,760 1,207,836 7,743 0.00

Physical Vacancy (165,182) 13.9% (60,392) 5.0% (387) 0.00

Total Vacancy ($165,182) 13.9% ($60,392) 5.0% ($387) ($0)

Effective Gross Income $1,025,578 $1,147,444 $7,355 $0.00

West Tennessee Portfolio Operating StatementOperating Statement

Expenses Current Pro-Forma Notes Per Unit Per SF

Real Estate Taxes 26,668 26,668 [1] 171 0.00

Insurance 39,959 41,158 [1] 264 0.00

Utilities – Total 218,681 225,241 [1] 1,444 0.00

Repairs & Maintenance 94,034 96,855 [1] 621 0.00

Marketing & Advertising 2,000 2,060 [1] [2] 13 0.00

Payroll 97,987 100,927 [1] 647 0.00

General & Administrative 35,082 36,134 [1] 232 0.00

Legal & Professional 5,663 5,833 [1] 37 0.00

Operating Reserves 39,000 40,170 [1] [3] 258 0.00

Management Fee 25,639 2.5% 28,686 2.5% [1][4] 184 0.00

Total Expenses $584,713 $603,732 $3,870 $0.00

Expenses as % of EGI 57.0% 52.6%

Net Operating Income $440,865 $543,713 $3,485 $0.00

Notes and assumptions to the above analysis are on the following page

West Tennessee Portfolio Operating Statement Notes

Notes

[1]

[2]

[3]

[4]

3% Increase to reflect inflation

Based on assumption

$250/unit Operating Reserve – Market Standard

2.5% Management Fee

Notes to Operating Statement

West Tennessee Portfolio Exclusive Offering Memorandum

156-unit high cash flowing opportunity located throughout West Tennessee


6 Cadillac Dr. Suite 100 | Brentwood TN 37027 615.997.2900 | www.marcusmillichap.com

Documents

156-unit high cash flowing opportunity located throughout ...€¦ · Income Current Pro-Forma Gross Scheduled Rent $1,190,780 $1,207,836 Less: Vacancy/Deductions 13.9% $165,182 5.0%