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THE ATLANTIS APARTMENTS
OFFER
ING
MEM
OR
AND
UM
KELLER WILLIAMS REALTY DALLAS MIDTOWN424 7TH AVE N, TEXAS CITY TX 77590
The Atlantis ApartmentsCONTENTS
Marketed By
Stratton Group Laura Green Reid HolcombMulti_Family Specialist Sales Associate
855.596.7976 (405) 514-6950 (214) 538-4889License # OK: 139714 License # TX: 684167
[email protected] [email protected] [email protected]
We obtained the following 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. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.
01 Executive Summary Investment Summary 5 Unit Mix Summary 6 Location Summary 7
02 Property Description Property Features 9 Aerial Map 10 Property Images 11
03 Rent Roll Rent Roll Details 13
04 Financial Analysis Income & Expense Analysis 15 Cash Flow Analysis 16 Multi-Year Cash Flow Analysis 18
05 Demographics Demographics 20 Demographic Charts 22
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Stratton Group and it shouldnot be made available to any other person or entity without the written consent of Stratton Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Stratton Group.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Stratton Group has not made any investigation, and makes no warranty or representation withrespect 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 presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Stratton Group has not verified, and will not verify, any of the informationcontained herein, nor has Stratton Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.
The Atlantis Apartments Confidentiality and Disclaimer | 03
CONFIDENTIALITY AND DISCLAIMER
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT STRATTON GROUP FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.
The Atlantis A
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Executive Summary
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Investment Summary
Unit Mix Summary
Location Summary
The Atlantis Apartments Investment Summary | 05
OFFERING SUMMARYADDRESS 424 7th Ave N
Texas City TX 77590COUNTY Galveston CountyBUILDING SF 4,300LAND SF 12,500NUMBER OF UNITS 12YEAR BUILT 1963 / 1965NUMBER OF VACANCIES 1APN 7030-0133-0003-000
FINANCIAL SUMMARYOFFERING PRICE $625,000PRICE PSF $145.35PRICE PER UNIT $52,083OCCUPANCY 90.00 %NOI (Jul-2018 YTD Annualized) $42,003NOI (Pro Forma) $43,210CAP RATE (Jul-2018 YTDAnnualized)
6.72 %
CAP RATE (Pro Forma) 6.91 %GRM (Jul-2018 YTD Annualized) 7.51GRM (Pro Forma) 7.39
DEMOGRAPHICS 3 MILE 5 MILE 15 MILE2019 Population 31,162 43,544 300,5862019 Median HH Income $52,168 $50,627 $64,9352019 Average HH Income $66,344 $63,910 $88,367
$625,000 / 6.72% Cap Rate
12 Units - $52,083/Unit
Opportunity Zone Tax Benefits
City Utilities, Master-Metered
OFFERED AT $625,000 - At $625,000 / $145 PSF, the property offers a6.72% cap rate on 2019 income and a 6.91% of proforma income for2020.
FULLY-LEASED 12-UNIT PROJECT - 12 Units built in 1963/1965comprised of 9 efficiency studios ($542/mo.), 2 1-bed units ($668/mo.) & 12-bed unit ($725/mo.). Property is set over 0.29 acres and the building is4,300 square feet.
OPPORTUNITY ZONE - Property is situated within a designatedOpportunity Zone which offers a prospective buyer a variety of taxbenefits.
CITY UTILITIES - All City Services; Water/Sewer, Electric & Gas are allmaster-metered; All utilities included in rent.
The Atlantis Apartments Unit Mix Summary | 06
Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income
Studio + 1 ba 9 0 $542 $4,878 $550 $0 $4,9501 bd + 1 ba 2 0 $668 $1,336 $675 $0 $1,3502 bd + 1 ba 1 0 $725 $725 $750 $0 $750
Totals/Averages 12 0 $578 $6,939 $588 $7,050
The Atlantis Apartments Location Summary | 07
12-UNIT PROJECT ON GALVESTON BAY - 12 unitslocated in northern Texas City on the southwest shoreline ofGalveston Bay in southeast Texas, 50 minutes outsideHouston. The property is within close proximity of TX-146and I-45, being under 15 minutes away from each.
OPPORTUNITY ZONE TAX BENEFITS - Property issituated within a designated Opportunity Zone which offers aprospective buyer a variety of tax benefits.
BUSY DEEPWATER PORT - Texas City is a busydeepwater port on Texas' Gulf Coast and a major petroleum-refining and petrochemical-manufacturing center. Thepopulation was 45,099 at the 2010 census, making it thethird-largest city in Galveston County. It is a part ofHouston–The Woodlands–Sugar Land metropolitan area.
Regional Map
Locator Map
The Atlantis A
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escription
Property Description
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Property Features
Aerial Map
Parcel Map
Additional Maps
Property Images
The Atlantis Apartments Property Features | 09
PROPERTY FEATURESNUMBER OF UNITS 12BUILDING SF 4,300LAND SF 12,500LAND ACRES 0.29YEAR BUILT 1963 / 1965NUMBER OF VACANCIES 1# OF PARCELS 1PROPERTY ID 224771GEOGRAPHIC ID 7030-0133-0003-000BUILDING 1 SF 3480BUILDING 2 SF 820NUMBER OF STORIES 1NUMBER OF BUILDINGS 3
UTILITIESCITY WATER | MASTER-METERED Included in RentCITY SEWER | MASTER-METERED Included in RentCITY ELECTRIC | MASTER-METERED Included in RentCITY GAS | MASTER-METERED Included in RentCITY TRASH Included in Rent
Unit BreakdownNUMBER OF STUDIOS 9 | $542/mo,NUMBER OF 1-BEDS 2 | $668/mo.NUMBER OF 2-BEDS 1 | $725/mo.TOTAL NO. UNITS 12TOTAL NO. VACANCIES 0
The Atlantis Apartments Aerial Map | 10
The Atlantis Apartments Property Images | 11
Kitchen Bathroom
The Atlantis A
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ent Roll
Rent Roll
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Rent Roll Details
The Atlantis Apartments Rent Roll Details | 13
Unit Unit Mix Monthly Market Rent Notes1 Studio $550 $550 Occupied2 Studio $550 $550 Occupied3 Studio $525 $550 Occupied4 Studio $550 $550 Occupied5 1-Bed $675 $675 Occupied6 Studio $500 $550 Occupied7 Studio $0 $550 Moved Out8 Studio $550 $550 Occupied9 Studio $550 $550 Occupied
10 Studio $0 $550 Eviction11 1-Bed $660 $675 Occupied12 2-Bed $725 $750 Manager Occupied
Totals/Averages $5,835 $7,050
The Atlantis A
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nalysis
Financial Analysis
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Income & Expense
Multiyear Cash Flow Projections
Multi-Year Cash Flow Analysis
The Atlantis Apartments Income & Expense Analysis | 15
INCOME JUL-2018 YTDANNUALIZED
PRO FORMA
Gross Potential Income $83,220 $84,600
Less: General Vacancy $8,322 $8,460
Effective Gross Income $74,898 $76,140
Less: Expenses $32,895 $32,930
Net Operating Income $42,003 $43,210
EXPENSES JUL-2018 YTDANNUALIZED
PRO FORMA
Taxes $165 $1,985 $183 $2,200
Insurance $167 $2,000 $170 $2,040
Management Fee $563 $6,750 $580 $6,960
Water $308 $3,696 $306 $3,670
Waste $104 $1,244 $96 $1,150
Electric $880 $10,555 $817 $9,800
Gas $139 $1,665 $167 $2,000
Repairs $417 $5,000 $426 $5,110
Total Operating Expense $2,741 $32,895 $2,744 $32,930
Expense / SF $7.65 $7.65
% of EGI 43.92 % 43.25 %
Per Unit Per Unit
Expense Notes: 2018 annual figures based upon owner actuals through July-2018.Pro Forma assumes annual 3% growth over 2018 figures.
REVENUE ALLOCATION
DISTRIBUTION OF EXPENSES
The Atlantis Apartments Cash Flow Analysis | 16
CASH FLOWCalendar Year Jul-2018 YTD Annualized Pro Forma Year 3Gross Potential RevenueRental Income $83,220 $84,600 $86,292Gross Potential Income $83,220 $84,600 $86,292General Vacancy $8,322 $8,460 $0Effective Gross Income $74,898 $76,140 $86,292Operating ExpensesTaxes $1,985 $2,200 $2,244Insurance $2,000 $2,040 $2,081Management Fee $6,750 $6,960 $6,960Water $3,696 $3,670 $3,743Waste $1,244 $1,150 $1,173Electric $10,555 $9,800 $9,996Gas $1,665 $2,000 $2,040Repairs $5,000 $5,110 $5,212Total Operating Expense $32,895 $32,930 $33,449Net Operating Income $42,003 $43,210 $52,843
Effective Gross Income vs Operating Expenses Cash Flow
The Atlantis Apartments Cash Flow Analysis | 17
Calendar Year Jul-2018 YTD Annualized Pro Forma Year 3Financial MetricsCash on Cash Return b/t 6.72 % 6.91 % 8.45 %CAP Rate 6.72 % 6.91 % 8.45 %Operating Expense Ratio 43.91 % 43.24 % 38.76 %Gross Multiplier (GRM) 7.51 7.39 7.24Breakeven Ratio 43.92 % 43.25 % 38.76 %Price / SF $145.35 $145.35 $145.35Price / Unit $52,083 $52,083 $52,083Income / SF $17.41 $17.70 $20.06Expense / SF $7.65 $7.65 $7.77
Profit & Loss Actuals Actuals 2018 YTD 2019(%) 2017 (%) Jan-Jul 18 (%) Annualized (%) Annualized (%) Pro Forma
IncomeRental Income
Gross Potential Rent 138% 83,220.00$ 114% 48,545.00$ 114% 83,220.00$ 111% 83,220.00$ 111% 84,600.00$ Vacancy Factor -38% (22,998.00)$ -14% (5,954.00)$ -14% (10,206.86)$ -11% (8,322.00)$ -11% (8,460.00)$
Total Rental Income 100% 60,222.00$ 100% 42,591.00$ 100% 73,013.14$ 100% 74,898.00$ 100% 76,140.00$
Gross Income 100% 60,222$ 100% 42,591$ 100% 73,013$ 100% 74,898$ 100% 76,140$
ExpensesProperty Insurance 3% 1,922.00$ 5% 1,980.00$ 3% 1,980.00$ 3% 2,000.00$ 3% 2,040.00$ Management Fees 5% 3,221.10$ 2% 700.00$ 9% 6,750.00$ 9% 6,750.00$ 9% 6,960.00$ Repairs 0% -$ 7% 2,891.14$ 7% 4,960.00$ 7% 5,000.00$ 7% 5,110.00$ Taxes 3% 2,065.16$ 0% -$ 3% 2,130.00$ 3% 1,984.65$ 3% 2,200.00$ Utilities
Electric 11% 6,690.64$ 13% 5,548.28$ 13% 9,510.00$ 14% 10,554.53$ 13% 9,800.00$ Gas 2% 1,358.51$ 3% 1,133.67$ 3% 1,940.00$ 2% 1,665.44$ 3% 2,000.00$ Water 8% 4,634.33$ 5% 2,078.76$ 5% 3,560.00$ 5% 3,696.48$ 5% 3,670.00$ Waste 2% 953.64$ 2% 646.64$ 2% 1,110.00$ 2% 1,243.68$ 2% 1,150.00$
Total Utilities 23% 13,637.12$ 22% 9,407.35$ 22% 16,120.00$ 23% 17,160.13$ 22% 16,620.00$
Total Expenses 35% 20,845$ 35% 14,978$ 44% 31,940$ 44% 32,895$ 43% 32,930$
Net Income 65% 39,377$ 65% 27,613$ 56% 41,073$ 56% 42,003$ 57% 43,210$
Pro Forma NotesAssumes 90% occupancy and no vacancy deduct associated w/ Manager rent creditMangement expense reflects approximate Manager salary + rent credit paid in arrearsAll other expenses represent 2018 annualized figures grown by 3%
The Atlantis Apartments Multi-Year Cash Flow Analysis | 18
The Atlantis A
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emographics
Demographics
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Demographic Details
Demographic Charts
The Atlantis Apartments Demographics | 20
POPULATION 3 MILE 5 MILE 15 MILE
2000 Population 29,392 40,791 222,435
2010 Population 28,936 40,653 250,024
2019 Population 31,162 43,544 300,586
2024 Population 32,530 45,359 326,850
2019 African American 5,510 10,648 43,583
2019 American Indian 212 314 1,818
2019 Asian 264 384 9,291
2019 Hispanic 11,488 14,653 81,308
2019 Other Race 4,251 5,305 27,818
2019 White 19,771 25,357 207,815
2019 Multiracial 1,134 1,508 10,063
2019-2024: Population: Growth Rate 4.30 % 4.10 % 8.45 %
2019 HOUSEHOLD INCOME 3 MILE 5 MILE 15 MILE
less than $15,000 1,384 2,092 10,505
$15,000-$24,999 1,293 2,034 10,464
$25,000-$34,999 1,319 1,919 9,243
$35,000-$49,999 1,242 1,892 11,209
$50,000-$74,999 2,422 3,576 22,441
$75,000-$99,999 1,391 1,848 14,241
$100,000-$149,999 1,287 1,757 18,807
$150,000-$199,999 473 650 8,932
$200,000 or greater 301 392 7,804
Median HH Income $52,168 $50,627 $64,935
Average HH Income $66,344 $63,910 $88,367
HOUSEHOLDS 3 MILE 5 MILE 15 MILE
2000 Total Housing 11,581 16,668 99,085
2010 Total Households 10,380 15,152 95,422
2019 Total Households 11,112 16,160 113,646
2024 Total Households 11,584 16,818 123,334
2019 Average Household Size 2.78 2.67 2.60
2000 Owner Occupied Housing 6,869 9,954 53,694
2000 Renter Occupied Housing 3,869 5,336 32,208
2019 Owner Occupied Housing 6,669 9,407 71,508
2019 Renter Occupied Housing 4,444 6,752 42,138
2019 Vacant Housing 1,090 1,840 18,958
2019 Total Housing 12,202 18,000 132,604
2024 Owner Occupied Housing 6,964 9,839 78,144
2024 Renter Occupied Housing 4,619 6,978 45,189
2024 Vacant Housing 1,057 1,799 19,461
2024 Total Housing 12,641 18,617 142,795
2019-2024: Households: Growth Rate 4.20 % 4.00 % 8.25 %
Source: esri
The Atlantis Apartments Demographics | 21
2019 POPULATION BY AGE 3 MILE 5 MILE 15 MILE
2019 Population Age 30-34 2,113 2,893 20,845
2019 Population Age 35-39 2,012 2,794 20,507
2019 Population Age 40-44 1,813 2,498 18,511
2019 Population Age 45-49 1,811 2,525 18,870
2019 Population Age 50-54 1,804 2,520 19,027
2019 Population Age 55-59 1,984 2,843 21,293
2019 Population Age 60-64 1,965 2,884 19,915
2019 Population Age 65-69 1,710 2,486 16,687
2019 Population Age 70-74 1,273 1,864 12,152
2019 Population Age 75-79 799 1,183 7,524
2019 Population Age 80-84 551 784 4,711
2019 Population Age 85+ 633 888 4,554
2019 Population Age 18+ 23,453 32,958 231,693
2019 Median Age 37 38 38
2019 INCOME BY AGE 3 MILE 5 MILE 15 MILE
Median Household Income 25-34 $55,727 $54,752 $64,145
Average Household Income 25-34 $68,031 $66,662 $83,532
Median Household Income 35-44 $57,686 $56,291 $81,155
Average Household Income 35-44 $71,810 $70,587 $100,618
Median Household Income 45-54 $59,853 $57,683 $82,829
Average Household Income 45-54 $76,187 $73,961 $106,579
Median Household Income 55-64 $57,407 $55,022 $70,706
Average Household Income 55-64 $72,395 $68,833 $93,651
Median Household Income 65-74 $46,076 $42,856 $56,178
Average Household Income 65-74 $61,633 $58,420 $79,146
Average Household Income 75+ $42,851 $40,856 $54,834
2024 POPULATION BY AGE 3 MILE 5 MILE 15 MILE
2024 Population Age 30-34 2,353 3,179 23,905
2024 Population Age 35-39 2,143 2,934 22,746
2024 Population Age 40-44 2,034 2,825 21,705
2024 Population Age 45-49 1,842 2,559 19,424
2024 Population Age 50-54 1,861 2,598 19,604
2024 Population Age 55-59 1,796 2,534 19,263
2024 Population Age 60-64 1,946 2,812 21,083
2024 Population Age 65-69 1,874 2,758 19,688
2024 Population Age 70-74 1,546 2,258 15,507
2024 Population Age 75-79 1,112 1,611 10,641
2024 Population Age 80-84 663 965 6,303
2024 Population Age 85+ 604 855 5,136
2024 Population Age 18+ 24,547 34,356 251,761
2024 Median Age 38 39 39
2024 INCOME BY AGE 3 MILE 5 MILE 15 MILE
Median Household Income 25-34 $61,249 $60,550 $75,107
Average Household Income 25-34 $77,367 $76,601 $97,168
Median Household Income 35-44 $67,822 $65,742 $93,584
Average Household Income 35-44 $84,091 $83,200 $115,272
Median Household Income 45-54 $69,685 $66,687 $96,105
Average Household Income 45-54 $88,862 $86,937 $121,526
Median Household Income 55-64 $63,791 $61,021 $80,299
Average Household Income 55-64 $82,485 $79,497 $108,501
Median Household Income 65-74 $53,549 $51,805 $63,321
Average Household Income 65-74 $72,493 $69,560 $93,148
Average Household Income 75+ $51,743 $50,020 $66,483
The Atlantis Apartments Demographic Charts | 22
3 Mile Radius 5 Mile Radius 15 Mile Radius
2019 Household Income
3 Mile Radius 5 Mile Radius 15 Mile Radius
2019 Population by Race
The Atlantis Apartments Demographic Charts | 23
2019 Household Occupancy - 3 Mile Radius
Average Income Median Income
2019 Household Income Average and Median
The Atlantis Apartments
Marketed By
Stratton Group Laura Green Reid HolcombMulti_Family Specialist Sales Associate
855.596.7976 (405) 514-6950 (214) 538-4889License # OK: 139714 License # TX: 684167
[email protected] [email protected] [email protected]
powered by CREOP
