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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
PROPERTY INFORMATION
1 | PROPERTY INFORMATION
EXECUTIVE SUMMARY
PROPERTY DESCRIPTION
PROPERTY DETAILS
ADDITIONAL PHOTOS
ADDITIONAL PHOTOS
1PROPERTY INFORMATIONMONTGOMERY ROAD APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 4
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
Each Office Independently Owned and Operated kwcommercial.com 5
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
MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 6
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
MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 7
Additional Photos
MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 8
Additional Photos
MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION
LOCATION INFORMATION
2 | LOCATION INFORMATION
REGIONAL MAP
LOCATION MAPS
AERIAL MAP
2LOCATION INFORMATIONMONTGOMERY ROAD APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 10
Montgomery RoadApartments
Regional Map
MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 11
Location Maps
MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION
Each Office Independently Owned and Operated kwcommercial.com 12
Montgomery RoadApartments
Aerial Map
MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION
FINANCIAL ANALYSIS
3 | FINANCIAL ANALYSIS
FINANCIAL SUMMARY
INCOME & EXPENSES
RENT ROLL
UNIT MIX SUMMARY
3FINANCIAL ANALYSISMONTGOMERY ROAD APARTMENTS
OFFERING MEMORANDUM
Each Office Independently Owned and Operated kwcommercial.com 14
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
Each Office Independently Owned and Operated kwcommercial.com 15
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
MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS
Each Office Independently Owned and Operated kwcommercial.com 16
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
MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS
Each Office Independently Owned and Operated kwcommercial.com 17
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
MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS