603 14th st s, saint cloud, mn 56301€¦ · and saint cloud state university. saint cloud state...
TRANSCRIPT
Presented By:
PHIL REESNESVice [email protected]
Michel Commercial Real Estate International, Inc. | michelcommercialre.com
603 14TH ST S, SAINT CLOUD, MN 56301FOR SALE | MULTIFAMILY INVESTMENT
For Sale
CONFIDENTIALITY & DISCLAIMER
PROPERTY INFORMATION3
LOCATION INFORMATION8
FINANCIAL ANALYSIS12
ADVISOR BIOS16
A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .
N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .
E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .
A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.
Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 2
PROPERTY INFORMATION
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 3
Presented By:
PHIL REESNESVice [email protected]
SECTION 1
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OFFERING SUMMARYSale Price: $570,000
Number Of Units: 4
Price Per Unit: $142,500
Cap Rate: 6.4%
NOI: $36,314
Lot Size: 0.33 Acres
Year Built: 1971
Building Size: 4,092 SF
Zoning: R3 Lodging House: And
Fraternity/Sorority House
Residential District
PROPERTY OVERVIEWThe apartment building at 603 14th St S in St. Cloud is comprised of 4 units. Each unit has 3bedrooms and 1 bathroom. There is off-street parking for the tenants. There is also in-unitwashers and dryers for the convenience of the tenants. Tenants pay their own heat andelectric. Two of the units are completely new due to a fire in one of the units. The roof andexterior of the building are 2 years old. The current owner never intended to sell hisproperties. Only a recent opportunity for the owner has prompted him to make this propertyavailable for purchase. The rents are low and there is a significant opportunity to raise therents beyond the current listed market rents on the rent roll.
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
PROPERTY INFORMATION | Executive Summary
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LOCATION OVERVIEW
The apartments at 603 14th St S are located in Stearns County in the City ofSaint Cloud. The City of Saint Cloud is located in the geographical center ofMinnesota approximately 60 miles northwest of Minneapolis. Saint Cloud isthe political, cultural, commercial and manufacturing center for all ofCentral Minnesota. A very sophisticated transportation network makes theSaint Cloud area readily accessible to all parts of the region.A stabilizing force in the community is the fact that the Saint Cloud area ishome to four major institutions of higher learning including Saint CloudTechnical College, The College of Saint Benedict, Saint John's Universityand Saint Cloud State University. Saint Cloud State University is the largestof these with over 16,000 students enrolled.The greater Saint Cloud Tri-County area includes Stearns, Sherburne andBenton County. The population of the Saint Cloud MSA is approximately189,000 and is expected to grow to about 231,000 by 2030. The populationof Sherburne County grew 37% in the last 10 years and is one of the fastestgrowing counties in the state. The population of Stearns County grew 13%in the last 10 years and Benton County grew 12.3% in the last 10 years.The Saint Cloud Area is somewhat recession proof because of its diverseeconomy. The area boasts a mix of manufacturers, agricultural relatedentities, a growing health care industry, emerging professional services, athriving printing industry, several large public sector employers and a veryactive retail component. The Saint Cloud Area is the retail hub of CentralMinnesota with several expansive malls and retail centers. The Saint Cloudarea ranks third in the state, behind only Minneapolis and Saint Paul in retailsales.The business community is continuing to grow at a rapid pace. TheTri-County labor force is expected to expand by nearly 40% between 1990and 2020 as compared to only 21% statewide. As the population and laborforce continue to grow so will the demand for rental housing.
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
PROPERTY INFORMATION | Property Description
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 6
SALE HIGHLIGHTS
• Value-add opportunity
• Built in 1971
• Two units completely renovated due to fire
• Roof new 2 years ago
• Exterior new 2 years ago
• In-unit washers and dryers
• Off-street parking
• Spacious apartments
• All 3 bedroom 1 bathroom units
• Near St. Cloud State University
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
PROPERTY INFORMATION | Complete Highlights
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 7
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
PROPERTY INFORMATION | Additional Photos
LOCATION INFORMATION
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 8
Presented By:
PHIL REESNESVice [email protected]
SECTION 2
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603 14th St S
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
LOCATION INFORMATION | Regional Map
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For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
LOCATION INFORMATION | Location Maps
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603 14th St S
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
LOCATION INFORMATION | Aerial Map
FINANCIAL ANALYSIS
Michel Commercial Real Estate International, Inc. | michelcommercialre.com Page 12
Presented By:
PHIL REESNESVice [email protected]
SECTION 3
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INVESTMENT OVERVIEW PROFORMA
Price $570,000
Price per Unit $142,500
GRM 11.0
CAP Rate 6.4%
Cash-on-Cash Return (yr 1) 6.48 %
Interest Rate 4.0 %
Total Return (yr 1) $19,398
Debt Coverage Ratio 1.34
OPERATING DATA PROFORMA
Gross Scheduled Income $51,732
Total Scheduled Income $51,732
Vacancy Cost $2,587
Gross Income $49,145
Operating Expenses $12,831
Net Operating Income $36,314
Pre-Tax Cash Flow $9,236
FINANCING DATA PROFORMA
Down Payment $142,500
Loan Amount $427,500
Debt Service $27,078
Debt Service Monthly $2,256
Principal Reduction (yr 1) $10,162
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
FINANCIAL ANALYSIS | Financial Summary
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INCOME SUMMARY PROFORMA
Projected Income $51,732LESS: Estimated Apartment Vacancy (5%) -$2,587Gross Income $49,145
EXPENSE SUMMARY PROFORMA
Caretaker ($100 / month est.) $1,200Rubbish (2019) $880Snow Removal (est.) $500General Repairs (8% est.) $3,932Electricity / Gas / Hot Water (2019) $505Water / Sewer (2019) $766Real Estate Taxes (2020) $3,038Insurance (2019) $1,783Rental License (2019) $227Gross Expenses $12,831
Net Operating Income $36,314
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
FINANCIAL ANALYSIS | Income & Expenses
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UNITNUMBER
UNITBED
UNITBATH
CURRENTRENT
MARKETRENT
1 3 1 $1,036 $1,100
2 3 1 $1,100 $1,200
3 3 1 $1,075 $1,200
4 3 1 $1,100 $1,100
Totals/Averages $4,311 $4,600
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
FINANCIAL ANALYSIS | Rent Roll
ADVISOR BIOS
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Presented By:
PHIL REESNESVice [email protected]
SECTION 4
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12930 32nd Avenue NorthMinneapolis, MN 55441T [email protected]
PROFESSIONAL BACKGROUND
Phil joined Michel Commercial Real Estate Intl. Inc. in 2002. Specializing in multifamilyhousing, Phil is a valued partner to both buyers and sellers in the acquisition anddisposition of their investment properties, citing his knowledge of the market, accurateproperty valuations, quality contacts, and trusted leadership from initial contact tosuccessful closing. Phil and his wife Lisa have three children and live in the northwesternsuburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playinggolf.
Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on sellingmultifamily housing. The brokerage company represents both private and institutionalgroups, including local owners and national investors. Michel Commercial Real Estatesuccessfully trades 1,500+ units of multifamily housing a year in the Midwest andspecializes in all types of apartments, including market rate, affordable, and studenthousing. The list of apartment projects sold ranges from 10 to 500 units.
PHIL REESNES
Vice President
For Sale
603 14TH ST S, SAINT CLOUD, MN 56301
ADVISOR BIOS | Advisor Bio & Contact 1