48 unit apartment rehabilitation at 1200 north monroe, amarillo … · 2019. 9. 11. ·...

WaiWai Properties LLC Multi-Family Residential Real Estate Investors

48 Unit Apartment Rehabilitation at 1200 North Monroe, Amarillo TX

A North Heights Neighborhood Revitalization Project

Current

2015


Property Details

Purchase Price: $ 450,000

Estimated Repairs: $1,400,000

Total Cost: $1,850,000

ARV of property $2,500,000 - $2,743,000

48 Units: 46 2-bed/1 bath, existing 2 1-bed/1 bath, possible

Average Unit Size: 568 square feet

Year Built: 1962

Parking: 46 spaces, Parking Variance Approved

Current Status: All units vacant

Targeted tenant: Low income / Section 8

(Image from 2015. See supplied photos for current state.)

Annual Income: Annual Expenses: Annual NOI:

Post Rehabilitation $372,750 $73,450 $299,300 Assuming $675 for 2-bedroom rents and $550 for 1-bedroom rents.

Current Features Rehabilitation Needs

• Strucurally “Good Bones” - exterior CMU walls

• Roof was new in 2013 – excellent condition

• Parking Variance approved – zero required

• Site plan approved in current condition

• Asbestos survey completed

• Stamped architectural drawings completed

• Building Permit application in process

• City Grant Obtained – waiver of permit fees and rebate of City portion of property taxes for 10 years. Currently applies to entity, may be transferrable to another entity.

• Seller financing available

• Electrical

• Plumbing

• Windows and doors

• Fire suppression & alarm system

• Substantial interior rehab work

• Appliances

• HVAC

• Repairs to fire damaged units

• Onsite laundry

Additional Information

Amarillo 2019 Fair Market Rents, used to establish Section 8 payments: Studio $ 553 One bed room $ 654 Two bed room $ 849 Three bed room $1,148 Four bed room $1,293

Source: https://affordablehousingonline.com/housing-search/Texas/Amarillo


Market Analysis

Subject Property: 1200 N. Monroe Street, Amarillo TX

Class: C Square Footage: 28908

Units: 48 (46 2-bdrm, 2 1-bdrm) Low Range High Range

New Construction Valuation (per square foot):

$110.00 $120.00

Market Sales Per Unit (range): $31,250.00 $53,333.33

Market Cap Rates: 12% 10%

Low Range High Range Average

Value Using market cap rates (NOI/CAP): $2,494,161 $2,992,993 $2,743,577

Value Using New Construction Valuation: $3,179,880 $3,468,960 $3,324,420

Value Using Amarillo Market Comps: $1,500,000 $2,560,000 $2,030,000

Market Cap Rates

1200 N Monroe Cap Rate Valuation

Cap rate: Property Value

10.00% $ 2,992,992.80

11.00% $ 2,720,902.55

12.00% $ 2,494,160.67

Recent Amarillo sales

Address Units Built Sales Price Price/Unit Sale Date

7101 Wolflin Avenue 360 1984 $19,200,000 $53,333.33 6/19/2017

4215 South Western St. 100 1970 $3,125,000 $31,250.00 7/2/2018

6209 Interstate 40 West 225 1972 $11,750,000 $52,222.22 3/27/2019

203 NW 15th Street 68 1953 $2,200,000 $32,352.94 5/3/2018

5307 Gem Lake Rd. 41 1962 $1,750,000 $42,682.93 9/22/2019

5924 NE 9th Ave 43 1960 $ 1,500,000 $34,883.72 12/15/2018


Why Amarillo, Texas

• Population: From 2010 to 2018, steady annual increase from 191,255 to 199,924 Source: https://www.census.gov/quickfacts/fact/table/amarillocitytexas/PST045217

• Texas has only 29 affordable and available rental homes per 100 extremely low income renters Source: http://nlihc.org/gap

o There has not been a low income complex built since 2012 Source: HUD database @ https://lihtc.huduser.gov/

o There is a diversified industry base Source: Data USA (Census Bureau) @ https://datausa.io/profile/geo/amarillo-tx/

https://www.census.gov/quickfacts/fact/table/amarillocitytexas/PST045217

http://nlihc.org/gap

https://lihtc.huduser.gov/

https://datausa.io/profile/geo/amarillo-tx/


Other Information The City of Amarillo adopted a plan in January 2017 for North Heights neighborhood revitalization.

Future property values are expected to increase significantly as the neighborhood gentrifies.

Source: The North Heights Neighborhood Plan, An Amendment to the Amarillo Comprehensive Plan

The property may also be eligible for grants or loans. The property is located in Census tract 148 which is listed as a CDBG target area. This project meets 2 of 3 federal objectives for CDBG funds:

1. Benefits low and moderate income residents

2. Eliminates slum or blight

3. Urgent needs


Detailed Description of Scope of Work

The existing structure has “good bones” (CMU walls) and a 6-year old roof in excellent condition. The

remaining structure will be completely remodeled including:

• All new electrical including meters

• All new plumbing

• All new windows and doors

• New fire suppression/sprinkler & alarm system

• Substantial interior rehab work

• All new appliances

• All new HVAC

• Special repairs to fire damaged units

• Onsite laundry

Preliminary Work (Already Completed)

Installed no trespassing signs and repaired fence around building

Board up gap Separating two buildings on South side to deter trespassing

Trim back all landscape, mow, trim trees, etc

Obtained Parking Variance

Asbestos Survey/Testing Complete

Architecture Drawings Complete

Site Plan Approved

Phase 1: Demolition

Permit for demolition and construction

Clean existing debris, trash, furniture from every unit

Demo of plumbing, HVAC and electrical

Remove all windows

Remove any doors that cannot be reused

Asbestos Abatement where flooring is damaged and loose (approx. 30% of units)

Rental of temporary toilets

Storage for materials and/or equipment (specify if onsite or offsite)

Dumpsters & waste removal during construction

Temporary power

Security during construction (please specify type and name of sub if applicable)

Rental Equipment/Small Tools

Trim back all landscape, mow, trim trees, etc (ongoing)

Termite treatment around perimeter of buildings

Continued on next page


Phase 2: Secure Buildings (doors, windows, HVAC)

Install all exterior Doors & Framing as needed - hollow metal doors

Install locks, deadbolts and peepholes for each unit's exterior doors

Install all exterior Windows - Vinyl Double Hung-Low E double paned

Repair and prep openings for HVAC; install new PTAC units

Frame/Trim as needed

Repair any holes/damage to brick/CMR/pointing; make weather tight

Phase 3: Plumbing & Electrical - All Units and Common

Plumbing scope & hydrostatic test

Install Plumbing to all units and laundry - PEX throughout

Plumbing to include new 4" cast-iron cleanouts at each water closet

Plumbing to include excavate, locate and replace water supply, backfill trench and patch asphalt when complete.

New sanitary sewer and vent piping in laundry and 1 bedroom units; connect to existing

Install Meter panels/sockets/meters/CT boxes

Rough Electrical to all units including panels, wiring, switches, etc.

Install electrical in laundry/common area/exterior

New Outlets, Switches, and Lights to be installed throughout

Final electrical

Phase 4: Additional Fire Code & Energy Code Changes:

Fire Suppression System-W/tap fees

Fire Alarm (Devices & Wiring) - automatic system throughout

Insulation to roof deck (insulate between 2nd floor ceilings and roof)

Possible required insulation - at existing exterior cmu walls inside each unit throughout.

Phase 5: Rebuilds of Certain Areas (Fire, Common, New Riser Room)

Repair burned-out units; seal salvageable wood with odor blocking primer

Create 1-bedroom in former laundry; new laundry location and new riser room

Phase 6: Interior Rebuild

Rebuild interior walls as needed; remove "wall furnace remains" and patch

Repair/Replace sheetrock in each unit as needed

Install 1 Hr fire walls between each unit (standard drywall for non-shared walls)

Install new LVP Flooring in all units and common area

Install Interior Doors (15% may require new jamb/frame as well)

Install closet doors

Trim units and common areas - base molding, doors, windows

Texture & Paint all units and common areas including walls, ceilings, frames, trim

Install new electric baseboard heater in all bedrooms

Continued on next page


Phase 7: Interior Rebuild Pt 2

Pre-manufactured Cabinets & laminate Countertops in non HCAP units

Pre-manufactured Accessible cabinets & laminate countertops in HCAP units

Kitchen Sinks/Faucets in non-HCAP units

Accessible Kitchen Sinks/Faucets in HCAP units

Pre-manufactured standard tub/shower set in non-HCAP units

Roll in shower in 3 HCAP units

Shower faucet/ Valve /hardware

Wall hung lavatory; including 2 handle faucets & mirrors

Accessible wall hung lavatory in HCAP units; including 2 handle faucets & mirrors

Install 2-piece toilets in all units

Install water heaters in all units

Install closet rod and shelf in all bedrooms

Install knobs and hinges on all doors

Optional: Install mini-blinds (1"pvc) in all unit windows (not common area)

Final Finishing all 48 units and common

Phase 8: Exterior Building Work

Paint all exterior cmu walls

Repair stairs as needed and add risers to all stairs throughout complex

Some landings and sidewalks to be repaired, as needed

Install/repair gutters at all entries and porches as needed

Patch & Seal Coat parking; pavement markings

Phase 9: Site Work -- see Site plans for Parking, Concrete and Landscape

Install long-term security cameras

Install exterior lighting throughout complex - city specified lighting

Install mail-box system on site by street

Install Playground - specify proposed materials for grounds and equipment

Fence and gate repairs; add gate/fence between buildings on South Side

Phase 10: Finalize

Install Refrigerators

Install Free standing electric ranges

Final Walk Thru - final finishing touches


Project Schedule (based on formal bidding beginning in October)

Pre* 2019 2019 2019 2020 2020 2020 2020 2020 2020

Activity OCT NOV DEC JAN FEB MAR APR MAY JUN

Obtain initial bids

Obtain Asbestos Survey

Attend PAC Meeting

Finalize Architectural SOW

Submit plans to City, apply for variances

Secure Perimeter

Obtain variances for site

Obtain permits

Conduct formal bidding

Finalize Construction Team

Phase 1: Demo/Clean-Up

Phase 2: Windows/Doors

Phase 3: Interior Structure

Phase 4: Plumbing & Electric

Phase 5: Paint, Floors, Trim ext

Phase 6: Kitchens & Baths

Phase 7: Appliances

Phase 8: Final Walk Thru

Marketing

Obtain Cert. of Occupancy

Begin to Lease Units

*Activities already completed are grouped in the first column

48 unit apartment rehabilitation at 1200 north monroe, amarillo … · 2019. 9. 11. ·...

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