SUNRISE PORTFOLIO - LoopNet

SUNRISE PORTFOLIO76 UNITS | 5941/5960/5971/5980/5990 NW 16TH PLACE, SUNRISE, FLORIDA 33313

Offering Memorandum

NON-ENDORSEMENT & DISCLAIMER NOTICECONFIDENTIALITY & DISCLAIMERThe 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 Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be

made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap has not made any

investigation, and makes 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, Marcus & Millichap has

not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes 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.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package.

The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said

corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of 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 MARCUS & MILL ICHAP AGENT FOR MORE DETAILS.

SUNRISE PORTFOLIO7 6 U N I T S | S U N R I S E , F L O R I D A

FELIPE J. ECHARTEFirst Vice President Investments

Tel: (954) [email protected]

License: FL SL696115

BRANDON J. REX First Vice President Investments



EXCLUSIVELY L ISTED BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

EVAN P. KRISTOL Executive Managing Director Investments



PORTFOLIO OF 76 UNITS IN

FIVE BUILDINGS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACT ID Z0240286

$9,600,000LIST PRICE

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EXECUTIVESUMMARY

SUNRISE PORTFOLIO

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OFFERING HIGHLIGHTS

5941/5960/5971/5980/5990 NW 16th Place, Sunrise, FL 33313

OFFERING PRICE

$9,600,000CURRENT CAP RATE

5.64%

VITAL DATA

Price $9,600,000

Current Cap Price 5.64%

Pro Forma Cap Price 6.36%

Price/SF $158.55

Gross Square Feet 60,549 SF

Year Built 1965-1973

SUNRISE PORTFOLIO7 6 U N I T S | B R O W A R D C O U N T Y

STRONG RENTAL MARKET WITH VERY

L ITTLE VACANCY

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INVESTMENT OVERVIEW

The Sunrise Portfolio is a 76-unit apartment portfolio comprised of five buildings located on Northwest 16th Place in the City of Sunrise, east of Sunset Strip. Most of the portfolio has been extensively renovated and is currently operating at an above market occupancy with additional upside in rental income. Three of the five buildings were condominium

buildings that were purchased by the current owners over the last several years. The current owners have renovated the apartments as they received title to the units. Four of the five buildings have hurricane impact windows and doors, including impact sliding glass doors. The fifth building has hurricane shutters.

The buildings were developed between 1963 and 1973. Water, sewer and trash removal are paid by the owner in four of the five buildings while the residents of 5990 NW 16th Place pay all utilities. The portfolio has an attractive unit mix of which 64 percent of the units are two-bedrooms. The portfolio has 27 one-bedroom and one-bathroom units, 16 of which have one and one-half bathrooms. There are also 49 two-bedroom units, 16 with one-bathroom, 22 with one and one-half bathrooms and 11 with two-bathrooms. The average unit size is 797 square feet. The exteriors of all the buildings have recently been painted, new railings installed, landscaping updated, and parking lots resurfaced, or seal coated and lined with new curbing and parking stoppers. There is also a new playground that was installed at the 5960 building.

An investor has the opportunity to acquire this mostly renovated portfolio of 76 units in a very strong rental market in Central Broward County with approximately 10-15 percent upside in rental income. There is very favorable financing available which will result in a positive cash on cash return.

60th AVENUE

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INVESTMENT HIGHLIGHTS

► 18 Units : 2 - 1 Bdr 1Bath

8 - 1 Bdr 1.5 Bath

3 - 2 Bdr 1 Bath

5 - 2 Bdr 2 Bath

► Impact resistent windows

► Most units have renovated kitchens and bathrooms

► All units have washer/dryer hook-ups

► Balconies and patios

5980 NW 16th Place

UpdatedAppliances

Close to Retail

► 24 Units : 2 - 1 Bdr 1 Bath

22 - 2 Bdr 1.5 Bath

► Lakefront views

► Porches and patios in select units

► All units have renovated kitchens and bathrooms

► Impact resistent windows and sliding glass doors

5941 NW 16th Place


7 - 1 Bdr 1.5 Bath

5 - 2 Bdr 1 Bath

4 - 2 Bdr 2 Bath

► Impact resistent windows

► Most units have renovated kitchens and bathrooms

► Select units have washer/dryer hook-ups


5960 NW 16th Place

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2

3


7 - 2 Bdr 1 Bath

► Impact resistent windows and doors


► All units have been extensively renovated

► Lakefront views

5971 NW 16th Place

► 8 Units : 2 - 1 Bdr 1Bath

2 - 1 Bdr 1.5 Bath

2 - 2 Bdr 1 Bath

2 - 2 Bdr 2 Bath

► Windows have shutters

► Resident pays for water, sewer and trash removal


► All units have washer/dryer hook-ups

5990 NW 16th Place

Balconies & Patios

Laundry Rooms

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SUMMARY OF TERMSINTEREST OFFEREDMarcus & Millichap has been selected to exclusively market for sale Sunrise Portfolio, Sunrise, Florida.

TERMS OF SALESunrise Portfolio is offered on an Open Bid basis free and clear of existing debt.

PROPERTY TOURSProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must

be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without

prior approval.property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site

management or staff be contacted without prior approval.

MOST OF THE UNITS HAVE

BEEN RENOVATED

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Sunrise is the 26th Largest of Florida’s 400+ Incorporated Municipalities, as Well as One of its Most Progressive

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PROPERTYDESCRIPTION

SUNRISE PORTFOLIO

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PROPERTY DETAILS

SUNRISE PORTFOLIO

Property Address 5941/5960/5971/5980/5990 NW 16th Place

City, State Zip Sunrise, FL 33313

Number of Units 76

Number of Buildings 6

Number of Stories 2


Lot Size 2.56 Acres

Type of Ownership Fee Simple

Utilities: Water City of Sunrise - Paid by Owner

Utilities: Electric FPL - Paid by Resident

Assessor’s Parcel Number 494135-36-0010

494135-23-0020

494135-BH-0010 to 0080

494135-23-0010

Zoning RM-25

2017 Ad-Valorem Taxes $96,742.44

2017 Non-Ad Valorem Taxes $15,922

2017 Millage Rate 20.6707

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SUNRISE PORTFOLIO]

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SUNRISE PORTFOLIO

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CLOSE PROXIMITY TO MAJOR THOROUGHFARES

AND EXPRESSWAYS

60th A

VENUE

NW 5

8TH T

ERRACENW 16TH PLACE

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CLOSE PROXIMITY TO MAJOR THOROUGHFARES

AND EXPRESSWAYS

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$1,083AVERAGE RENT



5.64% 6.36%CAP RATE PRO FORMA CAP RATE

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FINANCIALANALYSIS

SUNRISE PORTFOLIO

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PRICING DETAILS

*Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.

PRICE $9,600,000

Down Payment 33% $3,168,000

Number of Units 76

Price Per Unit $126,316

Rentable SqFt 60,549

Price Per SqFt $158.55


RETURNS

Cap Rate - Current 5.64%

Cap Rate - Pro Forma 6.36%

GRM Rate - Current 9.72

GRM Rate - Pro Forma 8.49

FINANCING

Loan Amount $6,432,000

Loan Type Proposed New

Interest Type 4.50%

Amortizaion 30 Years

Year Due 2028

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RENT ROLL SUMMARYSCHEDULED PRO FORMA

UNIT TYPE # OF UNITS

AVG SQFEET

SCHEDULED RENTAL RANGE

AVG RENT

MONTHLYINCOME

AVG RENT

MONTHLY INCOME

1 Bdr 1 Bath 10 696 $890 - $1,050 $956 $9,557 $1,050 $10,500

1 Bdr 1.5 Bath 16 705 $850 - $1,100 $993 $15,895 $1,100 $17,600

2 Bdr 1 Bath 17 827 $895 - $1,250 $1,111 $18,885 $1,300 $22,100

2 Bdr 1.5 Bath 22 845 $950 - $1,375 $1,129 $24,848 $1,325 $29,150

2 Bdr 2 Bath 11 878 $900 - $1,500 $1,190 $13,095 $1,350 $14,850

Totals/Weighted Averages 76 797 $1,083 $82,280 $1,239 $94,200

Scheduled rent is based on current in-place income, with vacant units at current asking rents.

Rent Roll Summary

$1.28 SF

$1.30 SF

$1.32 SF

$1.34 SF

$1.36 SF

$1.38 SF

$1.40 SF

$1.42 SF

0

200

400

600

800

1000

1200

1400

1 Bdr 1 Bath 1 Bdr 1.5 Bath 2 Bdr 1 Bath 2 Bdr 1.5 Bath 2 Bdr 2 Bath

Rent p

er SF/M

onthRen

t p

er M

onth

Unit Type

Unit Rent

1 Bdr 1 Bath13%1 Bdr 1.5 Bath

21%

2 Bdr 1 Bath22%

2 Bdr 1.5 Bath29%

2 Bdr 2 Bath15%

Unit Distribution

NOTICE:This is a draft and not intended for client distribution.

Unit Distribution

Rent Roll Summary

$1.28 SF

$1.30 SF

$1.32 SF

$1.34 SF

$1.36 SF

$1.38 SF

$1.40 SF

$1.42 SF

0

200

400

600

800

1000

1200

1400

1 Bdr 1 Bath 1 Bdr 1.5 Bath 2 Bdr 1 Bath 2 Bdr 1.5 Bath 2 Bdr 2 Bath

Rent p

er SF/M

onthRen

t p

er M

onth

Unit Type

Unit Rent

1 Bdr 1 Bath13%1 Bdr 1.5 Bath

21%

2 Bdr 1 Bath22%

2 Bdr 1.5 Bath29%

2 Bdr 2 Bath15%

Unit Distribution

NOTICE:This is a draft and not intended for client distribution.

Unit Rent

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RENT ROLL SUMMARY

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OPERATING DATAINCOME CURRENT PRO FORMA NOTES

Gross Scheduled Rent $987,354 $1,130,400 [1]

Less: Vacancy/Deductions 5.00% $49,368 5.00% $56,520 [2]

Total Effective Rental Income $937,986 $1,073,880

Other Income $9,120 $9,120 [3]

Effective Gross Income $947,106 $1,083,000

Less: Expenses 42.86% $405,933 43.61% $472,256

Net Operating Income $541,173 $610,744

Cash Flow $541,173 $610,744

Debt Service $391,080 $391,080

Net Cash Flow After Debt Service 4.74% $150,093 6.93% $219,664

Principal Reduction $103,763 $108,530

Total Return 8.01% $253,856 10.36% $328,194

1. Gross Scheduled Rent – Based on current in-place rents with vacant units at current asking rents, annualized.

2. Less: Physical Vacancy – Based on the current market average occupancy.

3. Other Income – Based on assumption of $120 per unit per year.

NOTES

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OPERATING DATAEXPENSES CURRENT PER UNIT PRO FORMA PER UNIT NOTES

Real Estate Taxes $108,158 $1,423 $167,686 $2,206 [4]

Insurance $45,600 $600 $45,600 $600 [5]

Utilities - Electric $9,120 $120 $9,120 $120

Utilities - Water & Sewer $91,200 $1,200 $91,200 $1,200

Payroll $40,000 $526 $40,000 $526

Repairs & Maintenance $38,000 $500 $38,000 $500 [6]

Landscaping & Clean-Up $5,700 $75 $5,700 $75

Pest Control $1,800 $24 $1,800 $24

Operating Reserves $19,000 $250 $19,000 $250 [7]

Management Fee $47,355 $623 $54,150 $713

Total Expenses $405,933 $5,341 $472,256 $6,214

Expenses as % of EGI 43% 44%

Net Operating Income $541,173 $610,744

NOTES4. Real Estate Taxes – Real Estate Taxes are reassessed based on 80 percent of list price, times the 2017 millage rate (20.6707),

plus 2017 non-ad valorem taxes ($15,922), minus 4 percent for early tax payment. 2017 real estate taxes were $112,644.

5. Insurance – Based on assumption of $600 per unit per year.

6. Repairs & Maintenance – Based on assumption of $500 per unit per year.

7. Operating Reserves – Based on assumption of $250 per unit per year.

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E X C L U S I V E LY L I S T E D B Y

SUNRISE PORTFOLIO

EVAN P. KRISTOL Executive Managing Director Investments



FELIPE J. ECHARTEFirst Vice President Investments



BRANDON J. REX First Vice President Investments



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SUNRISE PORTFOLIO - LoopNet