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Vice [email protected]
Zack Mishkin ORION Investment Real Estate
theLido2617-2707 N 27th Street | Phoenix, AZ 85008
7150 E Camelback Road, Suite 425Scottsdale, AZ 85251www.orionprop.com
theLidoli·do noun/‘lēdō/ | plural lidosswimming pool or beach where people gather to swim, lie in the sun, or participate in water sports.
a fashionable beach resort.
31018
2220
The PropertyExecutive Summary | Exterior & Interior Renovations
RenovationsDrone Video | Unit Mix Summary | Extensive
Renovation 2019 | Aerial Views
The LocationImagine Community | Grand Canalscape | Academics
Market ComparablesSale Comps
DisclaimerDisclaimer | Agent Contact
the deck of a cruise ship that is home to the outdoor swimming pool and adjacent bars and dining options.
Financial AnalysisCurrent Income | Proforma 19
page 3Executive Summary
Highlights
• Biltmore Foothills Location
• Top to Bottom Contemporary Remodel
• 11 Units with a Generous 2 Bed / 1.8 Bath Per Unit Average
• Solid Income with Significant Upside Opportunity
• Strong Income Demographics
• Surrounded by Great Schools
• In-Suite Laundry
• Huge Lot with Abundant Community Space
• Additional Income Opportunity by Adding Storage Units
Sale Price $2,189,000Price/Unit $199,000Price/SF $204Units 11Building Size ±10,750 Square FeetLand Size ±0.79 AcresYear Built 1999
Parking Spaces 12 Unassigned Uncovered Spaces, Multi-Park Carport for the SFR & Ample Open Street Parking
Zoning R-2, PhoenixMajor Cross Streets Thomas Road & 27th Street
theLidotheLido
Exterior Renovations page 4
Camelback MountainCamelback Mountain
Interior Renovations page 5
Two Bed/Two Bath
One Bed/One Bath
Two Bed/One Bath
Three Bed/Two BathSFR
Unit Mix Summary page 7
Count Size Total Rent/Unit Rent/SF Monthly Rent
One Bedroom/One Bath 1 650 SF 650 $888 $1.37 $888
Two Bedroom/One Bath 1 850 SF 850 $888 $1.04 $888
Two Bedroom/Two Bath 8 925 SF 7,400 $1,275 $1.38 $9,900
Three Bedroom/Two Bath SFR 1 1,850 SF 1,850 $1,850 $1.00 $1,850
Total/Average 11 977 SF 10,750 SF $1,257 $1.29 $13,826
Extensive Renovation - Q4 2019 page 8
Interior RenovationsGut and remodel interiors including; • Contemporary wood plank-style vinyl flooring and baseboards • New stainless steel appliances• New in-suite washer/dryer machines• New cabinetry and hardware• New straight-edged quartz countertops• New lighting fixtures• New fans• New bathroom vanities• Fresh paint
Exterior Renovations• New foam roof and new metal wrap-around roofing trim on
main building• New metal roof on the SFR• New entry doors• New dual pain windows• Privacy fencing throughout community• Created private front patios for tenants• Fresh paint on the building and metalwork• New courtyard gathering amenity added with shade structure• Professional landscaping with irrigation• Added exterior lighting throughout community• Designed and installed the Lido moniker sign for the building• Added decorative metal work to main building
North-facing Aerial View page 9
Oblique Aerial Views page 10
theLido
Parcels: 120-34-030F, 120-34-030H, 120-34-030JSize: 34,241 SFTaxes: $6,748.34 (2019)
27th Street27th Street
27th Street27th Street
Virginia Avenue
Virginia Avenue
I M A G I N EI M A G I N EC O M M U N I T YC O M M U N I T Y
Abutting Luxury Home Development page 11
A highly desirable neighborhood... I M A G I N EI M A G I N EC O M M U N I T YC O M M U N I T Y
I M A G I N EI M A G I N EC O M M U N I T YC O M M U N I T Y
27th Street27th Street
Cambridge Avenue
Cambridge Avenue
Midtown PhoenixMidtown PhoenixNorthNorth
The Lido is located in the Biltmore Foothills neighborhood of East Phoenix. Equidistant to The Biltmore, Midtown and Arcadia areas and with close proximity to shopping, dining and entertainment, this neighborhood has drawn numerous homebuilders who wish to capitalize on delivering the ever popular affordable-luxury product to this area.
An esteemed local builder, RIsi Homes, is currently breaking ground on Imagine Community; a collection of 33 mid-luxury homes which abut The Lido. These beautifully designed two-story homes will range in size from 1,688 to 2,167 square feet and sales prices are expected to range from the high $400’s to the mid $500’s. Each home will boast it’s own private front and back yard and this privately gated community will have a pool and playground.
Numerous other communities in close proximity are also in various stages of development including 28th St Townhomes, Uptown on Harvard, and many one-off single family home sites. In addition to scrape and build projects, gut and remodel single family homes projects abound in this highly desirable neighborhood.
I M A G I N EI M A G I N EC O M M U N I T YC O M M U N I T Y
theLido
The Grand Canalscape is a 12-mile continuous multi-use trail system connecting neighborhoods, schools and businesses. The canal runs from Interstate 17 to the Phoenix/Tempe border, and is part of a larger regional trail and crossing project. It will ultimately result in a continuous trail along the Grand Canal between Glendale and Tempe. The vision for the Canalscape project originated with Arizona Forward, a local organization. The Canalscape Vision was further supported by the ReinventPHX community outreach effort, in which residents voiced strong support for canal bank improvements along the Grand Canal.
10 Milesof New Trail
The Grand Canalscape Provides a Safe, Convenient Route for Bicycle and Pedestrian Traffic...
The Grand Canalscape page 12
18 NewStreet Crossings
17 NeighborhoodConnections
theLido
Academic Excellence page 13
A
Phoenix Christian PreK-8th School
Villa Montessori - Phoenix Campus
Phoenix Christian PreK-8th Grade School is walking distance to the Lido. It is ranked A for it’s academic excellence. The school was founded in 1958 as a small building, and over the years, various adjacent lots and residences have been acquired for school use. The school is currently on 5+ acres of land, has three educational buildings that include PreK–8th grade classrooms, a media center, a music room, and a kitchen. In May 2011, a gymnasium was built on the school grounds to enrich their physical education program as well as after-school sports programs. The school’s curriculum, teachers, and culture have received rave reviews from parents.
Villa Montessori is an A-Ranked school which focuses on the Montessori method; a comprehensive educational approach from birth to adulthood which is focused on hands-on, experiential learning. This philosophy encourages exposure to diverse cultures and an acquisition of respect for that diversity. Montessori emphasizes learning through all five senses. Children in Montessori classes learn at their own individual pace, and according to their own choice of activities from many possibilities. Learning is an exciting process of discovery leading to concentration, motivation, self-discipline, and a love of learning. Montessori classes place children in three-year age groups (3-6, 6-9, 9-12, and 12-14) forming communities in which the older children spontaneously share their knowledge with the younger ones.
The Lido is Surrounded by A & B Rated Schools...
Phoenix Christian PreK-8th School
theLido
Villa Montessori - Phoenix Campus
AVilla Montessori - Phoenix Campus
APhoenix Christian PreK-8th School
B+
Madison CamelviewElementary School
B+Midtown Primary SchoolMidtown Primary School
AHopi
Elementary SchoolHopi
Elementary SchoolB+
Tavan Elementary SchoolTavan Elementary School
B+ Augustus H. Shaw Jr. Montessori Elementary SchoolAugustus H. Shaw Jr. Montessori Elementary School
A Khalsa MontessoriElementary School - Phoenix
theLidoKhalsa MontessoriElementary School - Phoenix
Madison CamelviewElementary School
Area Hotspots page 14
Eat. Drink. G
ather. Enjoy.Eat. D
rink. Gather. Enjoy.
BiltmoreBiltmoreFoothillsFoothillsNeighborhoodNeighborhood
The PlacePlace to Be.
Biltmore Foothills Neighborhood page 15
The Jewel of the DesertThe Jewel of the Desert
The Lido is situated in the Biltmore Foothills neighborhood of the Camelback East Village submarket. Lido sits just over two miles away from The Arizona Biltmore Hotel- A Waldorf Astoria Hotel, which is fondly know to locals as The Jewel of the Desert. Since 1929, The Jewel of the Desert has served as a historical landmark, attracting visitors from around the globe to shop, stay and play. Spanning thirteen Presidential election cycles, The Arizona Biltmore Hotel had hosted a stay from every President from Hoover to George W. Bush. Surrounding this iconic hotel is the Arizona Biltmore Golf Club, The Biltmore Shopping Center, The Camelback Esplanade, Town & Country Shopping Center and more.
The Biltmore is considered one of the city’s most coveted residential areas, where pristine homes shoulder up against the bustling Biltmore shopping center, the storied and prestigious Biltmore Hotel and Spa, and two perfectly manicured, 18-hole championship golf courses. It offers a resort-style experience for daily living. The upscale neighborhood is plush with green grass and generously speckled with mature shade trees. It’s also ornamented beautifully with bubbling fountains, fragrant citrus and rose gardens, gently swaying palms, and features some of the most breathtaking homes in the valley.
All of this is within a five to ten minute drive of the neighborhood - and in many cases, are walkable or bike-able destinations. The Biltmore Foothills Neighborhood is also heralded for its 20-minute proximity to everything else in the city that matters. The airport? An easy 20-minute drive. Phoenix’s thriving downtown scene? Twenty minutes away. Old Town, Mill Avenue, Midtown, Arcadia, Camelback Mountain, Dreamy Draw? All twenty minutes away.
Source: Homesmart Historic Phoenix Group
Phoenix Metropolitan Area page 16
Phoenix is the capital and largest city of Arizona. It is home to 1,660,272 people according to the 2018 U.S. Census estimates. Phoenix is the 11th largest Metropolitan area by population in the United States with 4,857,962 residents. In addition, Phoenix is the county seat of Maricopa County, and is the sixth largest city in the United States by land area. The largest capital city in the United States, Phoenix is the only state capital with over 1,000,000 people. The evolution of Downtown Phoenix over the last 5 years has been significant with more than $4 Billion invested in office space, retail, restaurants, educational facilities, convention space, and hotels.
Phoenix is the vibrant center of one of the fastest growing job markets and economies in the United States. Phoenix is home to a large number of high-tech, IT, renewable energy and bioscience industries. The city’s economic base also includes a viable financial and advanced business services enterprises as well as a robust health sciences sector. The Phoenix area has a talented labor pool with the median age of its population at 36.9 years old, younger than the national average, and 28.9 percent of the total population hold a bachelor’s degree. Engaged, high-quality colleges and universities are fundamental to a strong and sustainable economy and Phoenix has over 179,102 current college students. All three Arizona public universities have a presence in Phoenix, nine private academic institutions offering undergraduate and graduate degrees are located in Phoenix, and there are 17 other academic institutions.
In a landscape famous for red rocks, blue skies and golden sunshine, Greater Phoenix takes great pride in being green. The Phoenix Convention Center is LEED certified, METRO Light Rail is virtually pollution free, and the City of Phoenix has created more than 80 sustainability programs in water, energy and natural-resource conservation.
Phoenix’s beautiful desert landscape and vast-sky sunsets aren’t the only reasons people love to live and visit Phoenix. Within the beautiful desert lies urban sophistication: Resorts and spas, stadiums and arenas worthy of the world’s biggest sports spectacles, restaurants with inspired cuisine and views, golf courses that beckon players year round, and shopping centers with some of best globally recognized brands. Inc. Magazine ranked Phoenix as the best city to start and grow a company and the city ranks as the fastest growing city among cities in the United States with populations greater than one million. According to USA Forbes Phoenix is one of the largest metro areas in the United States ranking 11th in the fastest job growth rate among the 100 metro areas. Also 11th in Americas Fastest growing cities.
PHOENIX, ARIZONA
Phoenix Sky Harbor International Airport, America’s Friendliest Airport®, has an annual economic impact of nearly $38 billion. Every day, approximately 1,200 aircraft and more than 120,000 passengers arrive and depart at Sky Harbor, making it the 9th busiest airports in the United States. Sky Harbor’s size is 3,400 acre, and more than 1,050 tons of air cargo is handled. It has three runways: North, Center, and South.
Serving Phoenix and points in throughout the Southwest, Phoenix Sky Harbor has 120 gates in three terminals. It’s also dubbed “America’s Friendliest Airport” for its stellar customer service.
Total Economic Impact
• $38 Billion Economic Impact• 269,000 Employment• $13 Billion Annual Payroll
Direct Impact of Sky Harbor
• $12.3 billion in economic activity• 57,432 jobs at the Airport
Midtown Phoenix & Sky Harbor Airport page 17
Sitting just north of downtown Phoenix, Midtown is an exciting, up-and-coming mix of historic homes, chic restaurants, beautiful green spaces, and culturally vibrant institutions. Expanding west and east of Central Avenue, this neighborhood offers it all, including easy access to museums, arts venues, sports arenas, and some of the best coffee shops and restaurants the Valley of the Sun has to offer. A decade ago, Midtown was just starting out as a submarket. Today, Midtown is very much part of the conversation, gaining more attention from companies, developers and residents. It was considered one of the emerging submarkets in Metro Phoenix last June at CoreNet Global Arizona’s Midyear Market Update: Brokers’ Perspective.
Phoenix Sky Harbor International Airport, America’s Friendliest Airport®, has an annual economic impact of nearly $38 billion. Every day, approximately 1,200 aircraft and more than 120,000 passengers arrive and depart at Sky Harbor, making it the 9th busiest airports in the United States. Sky Harbor’s size is 3,400 acre, and more than 1,050 tons of air cargo is handled. It has three runways: North, Center, and South.
Serving Phoenix and points in throughout the Southwest, Phoenix Sky Harbor has 120 gates in three terminals. It’s also dubbed “America’s Friendliest Airport” for its stellar customer service.
Sitting just north of downtown Phoenix, Midtown is an exciting, up-and-coming mix of historic homes, chic restaurants, beautiful green spaces, and culturally vibrant institutions. Expanding west and east of Central Avenue, this neighborhood offers it all, including easy access to museums, arts venues, sports arenas, and some of the best coffee shops and restaurants the Valley of the Sun has to offer. A decade ago, Midtown was just starting out as a submarket. Today, Midtown is very much part of the conversation, gaining more attention from companies, developers and residents. It was considered one of the emerging submarkets in Metro Phoenix last June at CoreNet Global Arizona’s Midyear Market Update: Brokers’ Perspective.
MIDTOWN PHOENIXMIDTOWN PHOENIX
Employment page 18
PHOENIX — Maricopa County added more jobs than any county in the nation from December 2018 to December 2019, according to new data from the Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) program — which tracks county labor force data. Maricopa County, the fourth-largest county in the nation, gained 89,328 jobs in that time period.
“Businesses and jobs continue to flock to Arizona for our light regulation, low tax environment and unbeatable quality of life,” said Governor Ducey. “This growth benefits communities across our state, and we will continue to focus on expanding opportunities for all of Arizona. My thanks to all the small business owners, entrepreneurs and innovators helping to make our state the best state for jobs in the nation.”
2019 Job GrowthMaricopa, AZLos Angeles, CAKing, WAHarris, TXMiami-Dade, FLDallas, TXClark, NVOrange, FL
89.3K56.7K50.2K48.6K47.1K44.8K41.8K25.2K
Since 2015, Arizona has added more than 350,000 private-sector jobs. Additionally, Arizona exports increased 9.7 percent and reached $24.7 billion last year, a record-high for Arizona. The state’s exports to Mexico—Arizona’s number one international trade partner—grew by 7 percent. Manufacturing exports increased 7.5 percent, totaling $20.9 billion — the highest export amount in terms of dollars since the data have been tracked.
Published February, 2020 on azgovenor.gov
Financial Analysis page 19
3:32 PM 08/04/20 Accrual Basis
RC Lido, LLC Profit & Loss - Operating Costs
August 2019 through July 2020
Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 TOTAL
Ordinary Income/Expense
Income
40010 · Rent Income
40015 · Rental Income 0.00 1,600.00 4,785.00 5,800.00 7,675.71 11,314.77 9,900.00 11,597.74 11,715.00 14,220.40 13,489.77 13,243.00 105,341.39
Total 40010 · Rent Income 0.00 1,600.00 4,785.00 5,800.00 7,675.71 11,314.77 9,900.00 11,597.74 11,715.00 14,220.40 13,489.77 13,243.00 105,341.39
Total Income 0.00 1,600.00 4,785.00 5,800.00 7,675.71 11,314.77 9,900.00 11,597.74 11,715.00 14,220.40 13,489.77 13,243.00 105,341.39
Gross Profit 0.00 1,600.00 4,785.00 5,800.00 7,675.71 11,314.77 9,900.00 11,597.74 11,715.00 14,220.40 13,489.77 13,243.00 105,341.39
Expense
80130 · Insurance Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,309.25 0.00 0.00 0.00 2,309.25 4,618.50
80155 · Landscape Maintenance0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 200.00 200.00 400.00 800.00
80190 · Office Supplies 0.00 0.00 0.00 0.00 0.00 0.00 70.92 0.00 0.00 0.00 0.00 0.00 70.92
80215 · Professional Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 0.00 0.00 500.00
80230 · Repairs and Maintenance0.00 0.00 0.00 0.00 142.95 0.00 0.00 149.00 240.95 0.00 0.00 0.00 532.90
80290 · Utilities 0.00 158.48 82.36 88.47 3,868.12 1,663.11 304.15 925.44 1,494.63 899.18 2,142.02 440.05 12,066.01
Total Expense 0.00 158.48 82.36 88.47 4,011.07 1,663.11 375.07 3,383.69 1,735.58 1,599.18 2,342.02 3,149.30 18,588.33
Net Ordinary Income 0.00 1,441.52 4,702.64 5,711.53 3,664.64 9,651.66 9,524.93 8,214.05 9,979.42 12,621.22 11,147.75 10,093.70 86,753.06
Net Income 0.00 1,441.52 4,702.64 5,711.53 3,664.64 9,651.66 9,524.93 8,214.05 9,979.42 12,621.22 11,147.75 10,093.70 86,753.06
Page 1 of 1
Profit & Loss Statement During Renovation and Stabilization
Gross Potential Rent $178,000Vacancy less 5% (-8,940)Net Rental Income $169,860Storage Income $3,960Effective Gross Income $173,820
Expenses:Real Estate Taxes $6,748Insurance $1,650Utilities $13,489Repairs & Maintenance $5,500Landscaping $2,400Property Management Fee (5%) $8,493Total Expenses $38,280
NOI $135,540CAP Rate 6.20%
Pro Forma Profit & Loss Statement
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Property Units Year Built Avg Unit Size Sale Price Price/Unit Price/SF Sale Date
the Lido; 2617-2707 N 27th Street 11 1999 977 SF $2,189,000 $199,000 $204/SF
1 | 4221 N 20th Street 7 1965 600 SF $1,330,000 $190,000 $317/SF 03/09/2020
2 | Mode at 21st Street; 4401 N 21st Street 15 1950 822 SF $3,000,000 $200,000 $240/SF 05/01/2019
3 | Citrus Heights; 4219-4223 N 26th Street 8 1961 775 SF $1,475,000 $184,375 $238/SF 02/27/2020
4 | The Collins on 27th; 4135 N 27th Street 8 1973 961 SF $1,300,000 $216,667 $220/SF 01/31/2019
5 | The Alden; 3109 N 36th Street 16 1989 853 SF $2,900,000 $181,250 $233/SF 03/11/2020
6 | Village 36; 3131 N 36th Street 9 1954 978 SF $1,760,000 $195,556 $200/SF 02/14/2019
7 | Via 37; 3034 N 37th Street 13 1971 750 SF $2,400,000 $184,615 $223/SF 01/04/2019
8 | The Wells; 3136 N 37th Street 11 1961 802 SF $2,150,000 $195,455 $241/SF 08/31/2018
9 | Tower Villa Apartments; 3024 N 39th Street 14 1957 771 SF $2,630,000 $187,857 $244/SF 04/24/2019
10 | Modern Retro Living; 2104-2122 E Fairmount Avenue 23 1964 759 SF $4,470,000 $194,348 $256/SF 05/29/2020
11 | 400 Pasadena; 3105 E Fairmount Avenue 24 1963 799 SF $4,550,000 $189,583 $237/SF 12/14/2018
12 | Palmaire Apartments; 1630 E Georgia Avenue 18 1964 1,170 SF $1,625,000 $180,556 $149/SF 08/27/2018
13 | Sunshine Apartments; 2726 E Glenrosa Avenue 8 1960 863 SF $1,625,000 $203,125 $236/SF 06/03/2019
14 | 1011-1015 E Palm Lane 7 1935 686 SF $1,260,000 $180,000 $263/SF 09/29/2019
15 | 2625 E Turney Avenue 8 1960 850 SF $1,540,000 $192,500 $226/SF 09/11/2019
Averages: 13 1962 829 SF $2,267,667 $191,726 $235/SF
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Sale Comps page 20
1315
theLidotheLidotheLido
Demographics page 21
2020 SUMMARY (SOURCE: ESRI) ONE MILE THREE MILE FIVE MILE
DAYTIME POPULATION 33,419 305,073 636,639
POPULATION 25,258 170,548 307,253
AVG HOUSEHOLD SIZE 3.05 2.44 2.32
AVG HOUSEHOLD INCOME $55,558 $71,028 $82,407
MEDIAN AGE 31.4 33.2 35.3
*Based on5 Mile Radius
1 Mile
3 Mile
5 Mile
DemographicHighlights
Daytime Population
Average HH Income
Median Age
636,639
$82,407
35.3
Vice [email protected]
Zack Mishkin ORION Investment Real Estate
theLido
All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may 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 of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
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 and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does 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 or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws.
2617-2707 N 27th Street | Phoenix, AZ 85008
7150 E Camelback Road, Suite 425Scottsdale, AZ 85251www.orionprop.com
