leemilltownhomes investmentdetails - loopnet · 2016. 3. 31. · leemilltownhomes investmentdetails...
Post on 04-Oct-2020
0 Views
Preview:
TRANSCRIPT
LeeMillTownhomesInvestmentDetails
DevelopmentOpportunityFortytwo4-PlexLotsAvalibleonManhattan'sWestsidefor$350,000SellerwillingtoSplitintothreeParcels(14Lots)for$150,000/eaPUDExistingandLotsarealreadyhaveutilityimprovments
LocationTownhomeCommunitylocatedinLeeMillHeightsneighborhoodandsurroundedby$275k-$450kSinglefamilyresidences.*GreatNeighborhoodforAppreciation
EstablishedRentalstatsExisting4-Plex'sCurrentlyrentsforapprox:$5,000/mo($1200/mo2bed
- $1300/mo3bed)EstablishedSalesComparables
*4-Plex'shavesoldbetween$420k-$460K/ea*IndividulaUnitsaresellingfor$130K-$140K/ea
CostsTaxes: Each4-PlexisCurrentlytaxedat$10146annual(including
Specials)HOADues: HOADuesareassesedat$8400peryrper4-Plex.(Thiscostwould
likelygodownoncemoreunitsaredeveloped)HOAIncludesLandscaping,Trash,SwimmingPoolMaintnence,SnowRemoval&ALLExteriorMaintnenceoftheStructureincludinganoveriddingInsurancePolicyforeachstructure)
Insurance:VeryLowHazardInsurancePolicyrequiredduetoHOAOveriddingPolicy(Est.$265perunitperyear)
BrettAxtellSalesandLeasingAssociateAxtell&Co.Office:(816)331-3800Mobile:(816)529-2337Email: baxtell@axtellco.com
GregShosaOwner/AgentAlliance785.844.0493greg@alliancemhk.com
Page1
PropertyAddress:DescriptionofProperty:Financing:PurchasePrice: = $16,100,000DownPayment(CashInvested): = $3,220,000AmountFinanced = $12,880,000
Rate Term(yrs)
5.50% $88,600
Depriciation(firstyear): Est.ValueLandCost: 0years $74,000 x 0% = $0PersonalPropertyCost: 5years $504,000 x 20% = $100,800BuildingCost: 27.5years $12,880,000 x 3.48% = $448,224LandImprovementCost: 15years $336,000 x 5% = $16,800TotalDepriciation: $565,824Income:AnnualRent: = $2,520,000LessVacancy: - $126,000
$2,394,000Expenses:RealEstateTax: Year2010 = $426,132Maintenance: est. = $84,000AssociationDues/HOA's: $165/monthperunit = $352,800Management: = $239,400Utilities: =Advertising: =Insurance: est. = $14,000Supplies: =Miscellaneous: =
$1,116,332
PropertyInformation:
MonthlyP&I:
GrossOperatingIncome:
10.00%
TotalDepreciation:
est.5%ofannualrent
20%ofPurchasePrice
LeeMillVillageInvestmentProperties
Forty-Two4-Plex's(Developmentcostof&375kperbuilding)
20
YearlyRate
TotalExpenses:
Inmanycaseseducatedassumptionshavebeenmadeinordertocompletethisanalysis.Thisflyerisintendedforinformationalpurposesonlyandisnottobeconstruedaslegalortaxadvice.BeforemakinganydecisionsdealingwiththesubjectmatterfoundinthisflyertheCompanyrecommendsthatyouseekoutspecificadvicefromlegalortaxprofessionals.
Page2
CashFlowBeforeTax:GrossOperatingIncome: $2,394,000OperatingExpenses: - $1,116,332NetOperatingIncome: $1,277,668
- $1,063,199$214,469
PrincipalReduction:AnnualDebtService: $1,063,199Interest(firstyear): $669,318
$393,881TaxesPaid/Saved:NetOperatingIncome: $1,277,668Interestpaidinfirstyear: - $234,554TotalDepreciation: - $565,824TaxableIncome: = $477,290TaxBracket: 33%x $157,506
($157,506)Appriciation:
$0
$450,844CashInvested: ÷ $3,220,000
14%CapitalizationRateNetOperatingIncome: $1,277,668PurchaseCost: ÷$16,100,000
8%CashonCashCashFlowbeforeTax: $214,469CashInvested: ÷ $3,220,000
7%
TheFourBenefits:
CashFlowbeforeTax+PrincipalReduction+TaxSaved:
ROIw/oAppriciation:
CapitalizationRate:
CashOnCash:
EstimateofAppriciation:
RatesOfReturn:Ican'tpredictthefuture!!!
ReturnonInvestmentwithoutAppriciation:
CashFlowBeforeTax:
PrincipalReduction:
TaxesSAVED:
AnnualDebtService:(MonthlyP&Ix12)
Inmanycaseseducatedassumptionshavebeenmadeinordertocompletethisanalysis.Thisflyerisintendedforinformationalpurposesonlyandisnottobeconstruedaslegalortaxadvice.BeforemakinganydecisionsdealingwiththesubjectmatterfoundinthisflyertheCompanyrecommendsthatyouseek
Page3
Page4
PropertyAddress:DescriptionofProperty:Financing:PurchasePrice: = $5,400,000DownPayment(CashInvested): = $1,080,000AmountFinanced = $4,320,000
Rate Term(yrs)
5.50% $29,717
Depriciation(firstyear): Est.ValueLandCost: 0years $74,000 x 0% = $0PersonalPropertyCost: 5years $168,000 x 20% = $33,600BuildingCost: 27.5years $4,320,000 x 3.48% = $150,336LandImprovementCost: 15years $110,000 x 5% = $5,500TotalDepriciation: $189,436Income:AnnualRent: = $840,000LessVacancy: - $42,000
$798,000Expenses:RealEstateTax: Year2010 = $142,042Maintenance: est. = $28,000AssociationDues/HOA's: $165/monthperunit = $117,600Management: = $79,800Utilities: =Advertising: =Insurance: est. = $14,000Supplies: =Miscellaneous: =
$381,442
PropertyInformation:
MonthlyP&I:
GrossOperatingIncome:
10.00%
TotalDepreciation:
est.5%ofannualrent
20%ofPurchasePrice
LeeMillVillageInvestmentProperties
Fourteen4-Plex's(Developmentcostof&375kperbuilding)
20
YearlyRate
TotalExpenses:
Inmanycaseseducatedassumptionshavebeenmadeinordertocompletethisanalysis.Thisflyerisintendedforinformationalpurposesonlyandisnottobeconstruedaslegalortaxadvice.BeforemakinganydecisionsdealingwiththesubjectmatterfoundinthisflyertheCompanyrecommendsthatyouseekoutspecificadvicefromlegalortaxprofessionals.
Page2
CashFlowBeforeTax:GrossOperatingIncome: $798,000OperatingExpenses: - $381,442NetOperatingIncome: $416,558
- $356,601$59,957
PrincipalReduction:AnnualDebtService: $356,601Interest(firstyear): $34,525
$322,076TaxesPaid/Saved:NetOperatingIncome: $416,558Interestpaidinfirstyear: - $234,554TotalDepreciation: - $189,436TaxableIncome: = ($7,432)TaxBracket: 33%x ($2,452)
$2,452Appriciation:
$0
$384,486CashInvested: ÷$1,080,000
36%CapitalizationRateNetOperatingIncome: $416,558PurchaseCost: ÷$5,400,000
8%CashonCashCashFlowbeforeTax: $59,957CashInvested: ÷$1,080,000
6%
TheFourBenefits:
CashFlowbeforeTax+PrincipalReduction+TaxSaved:
ROIw/oAppriciation:
CapitalizationRate:
CashOnCash:
EstimateofAppriciation:
RatesOfReturn:Ican'tpredictthefuture!!!
ReturnonInvestmentwithoutAppriciation:
CashFlowBeforeTax:
PrincipalReduction:
TaxesSAVED:
AnnualDebtService:(MonthlyP&Ix12)
Inmanycaseseducatedassumptionshavebeenmadeinordertocompletethisanalysis.Thisflyerisintendedforinformationalpurposesonlyandisnottobeconstruedaslegalortaxadvice.BeforemakinganydecisionsdealingwiththesubjectmatterfoundinthisflyertheCompanyrecommendsthatyouseek
Page3
COMMUNITYPROFILE—Manhattan,Kansas
785-776-8829www.manhattaned.org
HIGHLIGHTS
RECENTLY,THECITYOFMANHATTANHASRECEIVEDRECOGNITION:§ Selectedin2008byDept.ofHomelandSecurityasthesiteforNBAF–theNationalBioandAgro-DefenseFacility($720Mprojecttoopenin2018)
§ #1BestSmallCommunityinU.S.forBusinessandCareers(Forbes,2011)
§ “TopTenBestCitiesforJobGrowth–2011”(Newgeography.com,2011)
§ K-State–“OneofAmerica’sBestColleges”(PrincetonReview,2011)
§ #2MetroforEconomicGrowthPotential(BusinessFacilities,2010)
§ “OneoftheBestPlacestoLive/Top5BestCommutingTimes”(CNNMoney.com,2010)
§ Oneofthe“100BestPlacestoLive”(RelocateAmerica.com,2009)
§ RileyCounty–“LeastEconomicallyStressedCountyintheU.S.,Over25,000Population”(AssociatedPress,2009)
§ “Top10BestPlacestoRetireYoung”(CNNMoney.com,2007)
§ ManhattanHighSchoolratedintop5%ofU.S.highschoolsthreeyearsrunning.(Newsweek)
§ #23QualityofLiferankingoutof577micropolitanareas(Bizjournals.com2006)
§ Oneof“The50BestPlacestoLive”(Men’sJournal,March2002)
§ ManhattanHighSchool--TopAthleticPrograminKansas(www.sportsillustrated.com,2007)
§ PublicSchoolSystem–USD383–awarded93StateStandardsofExcellenceforstudentscoresonthe2010-2011KansasStateAssessments
DEMOGRAPHICINFORMATIONFORTHEMANHATTANAREA:§ 2010CityofManhattanpopulation--52,898§ Retailsalesexceed$940millionannually§ Economicimpactofmajormanufacturersand
employersisover$200million§ 21parkstotaling1,000acres§ AdjacenttoFortRileyArmybase;95percentof
theadultpopulationarehighschoolgraduatelevelorabove.Tri-countypopulation>123,000
POPULATIONCHARACTERISTICS
Year Population Households* K-StateEnrollment**1980 32,644 12,321 19,5471990 37,712 14,253 21,1372000 44,831 16,949 21,9292005 49,642 18,507 23,1822006 50,737 19,140 23,3322011 52,836 20,008 23,8632012 53,401 20,225 24,378
*Source:CensusBureau **K-StateRegistrar
POPULATIONPROFILE
MedianAge: RileyCounty 23.8
AgeGroup: 0-19 25.0%20-34 45.9%35-54 15.0%55-64 6.7%65+ 7.4%
Source:U.SCensusBureau,2010
KANSASSTATEUNIVERSITY
§ K-Stateemployees,studentsandvisitorsspendover$280millionannuallyinthelocaleconomy
§ Annualresearchactivityfundingisover$220million
FT.RILEY
§ Over18,000troops.55,000peopleareaffiliatedwiththepost(activeduty,familymembers,supportstaff,retirees,etc)
§ Ft.Rileymakesa$2.2billionannualeconomicimpacttotheCentralFlintHillsRegion
INCOME
NumberofHouseholds: 20,008MedianHouseholdIncome: $42,833
SALESTAXACTIVITYBYSECTOR
RetailTrade 64%Food/Accommodations 12%WholesaleTrade 5%Utilities 5%Information 4%Services 2%Manufacturing 2%Construction/Other 6%
Page1
Source:KansasLaborMarketInformation,2011;CityofManhattan,2011
COMMUNITYPROFILE—Manhattan,Kansas
WORKFORCECHARACTERISTICSRileyCo.CivilianLaborForce(CLF)..........................38,537TotalEmployed..........................................36,751TotalUnemployed........................................1786UnemploymentRate.....................................4.6%Manufacturing..............................................1,855Construction.................................................1,285Transportation&Warehousing........................125Trade:Wholesale.................................................540Retail.....................................................3,316
Information......................................................413Finance&Insurance....................................1,073RealEstate,Rental&Leasing.........................510Services.......................................................9,852Government.................................................7,472AvailableLaborPool*..................................33,802
Source:KansasLaborMarketInformation,August2010*DockingInstituteofPublicAffairs,LaborSurvey,2008
WAGES
MEDIANHOURLYWAGERATESINSELECTEDOCCUPATIONS
Occupation MedianWageRates
Architect.......................................................$27.10Assembler,ElectronicEquip.........................$10.13ComputerSupportSpecialist........................$19.12CustomerServiceRepresentative................$12.32HumanResourcesAssistant........................$16.57LicensedPracticalNurse..............................$16.74Maintenance,Machinery..............................$17.43ProductionWorker.......................................$11.73Tellers............................................................$9.62
PercentageofLaborForceUnionized…………..0%WorkStoppagesinpasttwoyears.....................0
Source:KansasWageSurvey,Area2-NEKS2008
SITES&BUILDINGS
TheManhattanCorporateTechnologyPark(TecPark),astateoftheart190acrebusinessparkadjacenttotheManhattanRegionalAirport,islocatedonafour-lanehighwaythatconvenientlyprovidesaccesstoI-70.Thenewbusinessparkisdevelopment-readywithallmajorinfrastructureavailable.TheTecParkisa“fiberpark”withAT&TSONET/EthernetFiberOpticservices.
Formoreinformationcontact:(785)776-8829orjohnp@manhattan.org
BUSINESS&INDUSTRYMAJOREMPLOYERSKansasStateUniversity..................................6,028FortRileyCivilianPersonnel............................3,543Manhattan/OgdenUSD#383...........................1,350GTMSportswear................................................845MercyRegionalHealthCenter............................795Wal-Mart............................................................480CityofManhattan...............................................374MeadowlarkHillsRetirementCommunity............349Hy-Vee………………………………………..……....300MankoWindowSystems,Inc..............................240FarmBureau&AffiliatedServices......................225BigLakesDevelopmentalCenter,Inc.................225CentralMechanicalConstructionCo.Inc…….......192RileyCounty.......................................................190FlorenceManufacturing......................................175DillonsFoodMarket………………………………...173TheMcCallPatternCompany.............................160CenterforGrainandAnimalHealthResearch….155Parker-HannifinCorporation................................150Target................................................................140PawneeMentalHealthServices…………………...107
TRANSPORTATION
TIMEINTRANSITFROMMANHATTAN
City DaysbyTruck DaysbyTrain
Atlanta 1 5Chicago 1 2Dallas 1 3Denver 1 2KansasCity 1 1LosAngeles 2 5Minneapolis 1 4NewYork 2 5St.Louis 1 2Seattle 2 5
AIRTRANSPORTATION
TheManhattanRegionalAirporthasanew$3.2millionterminal,offeringafullservicecontroltowerandaconcreterunwayspanning7,500feet,andcansupportcommercialaircraftaslargeasaB-757.Dailyjetserviceto/fromDallas/FortWorthandChicagoO’HareviaAmericanAirlines/AmericanEagleisoffered.Airfreightserviceisalsoavailable.TheairportisadjacenttotheTecPark.VanshuttleservicetoandfromKansasCityInternationalAirportisprovidedatvaryingtimes.Pick-upanddrop-offserviceisavailableatyourplaceofbusinessorresidence.
Page2
COMMUNITYPROFILE—Manhattan,Kansas
TRANSPORTATION(continued)
TRUCKTRANSPORTATION· 15commoncarriersserveManhattandaily· Twocommoncarriersoperatelocalterminals· Severalsingleproducthaulers· Majortruckleasecompany
PACKAGESERVICE· Allnationwidecompaniesprovidingnextdayandovernightpackageservice
· UPSterminal· FederalExpressterminal
RAILSERVICE· ManhattanisaUnionPacificfreightline· LinesandspursintoEastManhattanIndustrialPark
HIGHWAYSEightmilesfromInterstate70,U.S.Highway24,KansasHighway177,KansasHighway18,KansasHighway113.
CLIMATE
ManhattanAverageDailyTemperature:January............24F July.......................81FApril.................59F October.................49F
Averageannualprecipitation..........33.71inchesAverageannualsnowfall..................17.4inches
Source:WeatherDataLibrary,KansasStateUniversity,2010
TAXES
KANSASINCOMETAX· 3.5%onfirst$30,000income· $1,050plus6.25%ofincomeover$30,000upto$60,000· $2,925plus6.45%ofincomeover$60,000
KANSASCORPORATEINCOMETAXForcorporationswhosefacilitiesaresolelywithinstatelines,thetaxis4%ofthenetincome.Ifthenetincomeexceeds$50,000,itissubjecttoa3.35%surtax.Corporationshavingfacilitiesbothinsideanoutsidethestatehavetheoptionofthe“3-factor-formula”orthe“2-factor-formula.”
3-factor-formula:SalesinKansas+PropertyinKansas+PayrollinKansasTotalSales TotalProperty TotalPayroll
2-factor-formula:SalesinKansas+PropertyinKansasTotalSales TotalProperty
*FormoreinformationcontacttheKansasDepartmentofCommerceandHousing.
MANHATTANSALESTAXCity 1.25%County 1.00%State 6.30%Total 8.55%
ASSESSEDVALUATION30%Agriculture25%Commercial11.5%Residential
MANHATTANPERSONALPROPERTYTAX$1per$1,000assessedvaluation
Taxisleviedon:MobileHomesMineralleaseholdsinterestsMotorvehiclesCommercialandindustrialproperty
PROPERTYTAXBREAKDOWN–2011USD#383 .39CityofManhattan .34RileyCounty .26StateofKansas .01
1.00
Source:CityofManhattan
Page3
COMMUNITYPROFILE—Manhattan,Kansas
TAXES(continued)
TAXSTRUCTURE
Totalpropertytaxrateforcity,countyandstate(milllevy)
PropertyTaxRate2011 2006 2004 2002
City 41.917 36.235 42.46042.813County 32.281 34.341 34.62834.488School 49.283 43.832 48.04745.691Other 1.500 1.500 1.500 1.500Total 124.981115.908 126.635124.492
UNIVERSITIESANDCOLLEGES
Enrollment:K-State 23,588ManhattanAreaTechnicalCollege 850ManhattanChristianCollege 383
K-StateranksfirstnationallyamongpublicuniversitiesinitsnumberofRhodes,Marshall,Truman,Goldwater,andUdallscholarshipssince1986.
K-StaterankssixthamongALLuniversitiesinRhodes,Marshall,Truman,GoldwaterandUdallscholarssince1986(source:K-StateRegistrar):
1.Harvard 5.Duke 9.M.I.T.2.Yale 6.K-State 10.Cornell3.Stanford 7.Brown4.Princeton 8.Univ.ofChicago
PUBLICSCHOOLS(USD383)
ELEMENTARYSchools:8Enrollment:2,808Teacher/PupilRatio:1/23
JR.HIGH/MIDDLESCHOOLSchools:2Enrollment:710Teacher/PupilRatio:1/18
SENIORHIGHSchools:1 ACTAvg. 23.1Enrollment:1,772 StateAvg. 21.9Teacher/PupilRatio:1/18NationalAvg.21.1
PRIVATESCHOOLS
ELEMENTARYSchools:4Enrollment:413Teacher/PupilRatio:1/20
JR.HIGH/MIDDLESCHOOLSchools:3Enrollmentnumbersareincludedinelementary
HIGHSCHOOLSchools:1Enrollment:41Teacher/PupilRatio:1/20
HEALTHCARE
Hospitals #ofBedsMercyRegionalHealthCenter 120ManhattanSurgeryCenter 13
MedicalDoctors120 Optometrists.......19Dentists..............47 Osteopaths...........3Chiropractors.....26 Podiatrists.............2
UTILITIES
ElectricserviceisprovidedbyWestarEnergyandnaturalgasserviceisprovidedbyKansasGasService.WaterandsewerserviceissuppliedbytheCityofManhattan.AT&TandCoxCommunicationsarelocaltelephoneserviceproviders.
501PoyntzAvenueManhattan,KS66502
785-776-8829785-776-0679fax
EconDev@manhattan.orgwww.manhattaned.org
Page4
Manhattan/ManhattanMSAAppearanceson“Top”ListsofNationalPublicationsSince2007
· TopFive“BestSmallPlaceforBusinessandCareers”threeyearsrunning(Forbes,2010-2012)
· Manhattan,KSMetropolitanStatisticalArea(MSA)intop5%nationally(outof365MSA’s)foreconomic&jobgrowth(AreaDevelopment,2012)
· “RileyCounty--HealthiestCountyintheStateofKansas"(CountyHealthRankings,UniversityofWisconsin/R.W.JohnsonFoundation,2012)
· ManhattanAreaChamber–“20MostMilitaryFriendlyChamberList”(VetrepreneurMagazine(formilitaryveteranswhoownabusiness),2012)
· KansasStateUniversity--“TopTenHappiestColleges/QualityofStudentLife"(PrincetonReview,2012)
· #5“HighTechHub”Metro(BusinessFacilities,2011)
· TopTenBestCitiesforJobGrowthin2011(Newgeography.com)
· Oneof“SevenUnderratedRetirementHavens”(SmartMoney.com,2011)
· ManhattanHighSchool–namedtoNewsweek’s“America’sBestHighSchools”listthreeyearsrunning(2011)
· #2MetroForEconomicGrowthPotential(BusinessFacilities,2010)
· Manhattan,KSMSAintop1%nationallyforfastestpersonalincomegrowth(BureauofEconomicAnalysis,2010)
· Oneof10GreatPlacestoLaunchaSecondCareerinRetirement(U.S.News&WorldReport,2010)
· “Manhattan--TopTenMSAforPerCapitaIncomeGrowth--2004-2008"(BureauofEconomicAnalysis,2009)
· “RileyCounty--LeastEconomicallyStressedCountyintheUnitedStates--over25,000population"(AssociatedPress,2009)
· Oneofthe“100BestPlacestoLive”(RelocateAmerica,2009)
· “OneoftheBestPlacestoLive/Top25BestCommutingTimes”(MoneyMagazine,2008)
· “Top10BestPlacestoRetireYoung”(CNNMoney.com,2007)
· ManhattanHighSchool--TopAthleticPrograminKansas(www.sportsillustrated.com,2007)
ManhattanRetailSales
$100$200$300$400$500$600$700$800$900
$1,000
199819992000200120022003200420052006200720082009201020112012
ValueinMillions
YearEnd
ThruSeptember'12
top related