courtyards at madison ranch build for …...ranch qnd great appeal within the securely gated...

SVN | RealStar Advisors | 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260 OFFERING MEMORANDUM

COURTYARDS ATMADISON RANCHBUILD FOR RENTPORTFOLIO82 HOME BFR SINGEL FAMILY

INVESTMENT PORTFOLIO

Michael FinchSenior Vice President

480.626.0219

[email protected]

Je7 ClineSenior Vice President

480.626.0210

[email protected]

OFFERING MEMORANDUMSVN | RealStar Advisors | 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260

PROPERTY INFORMATION 3Property Summary

Property Description

Complete Highlights

Additional Photos

LOCATION INFORMATION 8Regional Map

Location Maps

Aerial Map

Site Plan

FINANCIAL ANALYSIS 13Investment Overview

DEMOGRAPHICS 15Demographics Report

Demographics Map

ADVISOR BIOS 18Advisor Bio & Contact 1

Advisor Bio & Contact 2

Disclaimer

82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO

82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO

FOR SALE | 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO

All SVN® OEces Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

1 PROPERTY INFORMATION

11 PROPERTY

INFORMATION82 HOME BFR SINGEL FAMILY


COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO | 1826 W POLLACK ST PHOENIX, AZ 85041 SVN | RealStar Advisors |

COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO | 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN | RealStar Advisors |

OFFERING SUMMAROFFERING SUMMARYY

Sale Price: $20,768,000

Number Of Units: 82

Cap Rate: 5.69%

NOI: $1,182,193

Lot Size: 0.05 Acres

Year Built: 2017

Building Size: 174,229

Zoning: Residential

Market: Phoenix

Submarket: Southwest Phoenix

Price / SF: $119.20

This 82 Home Build For Rent Single Family Residential Investment Portfolio is located in the beautifully designed & gated

community in the Courtyards at Madison Ranch. This subdivision is well positioned in the growing Southwest Phoenix

submarket, only 5 miles from downtown Phoenix and minutes away from the largest municipal park in the country, South

Mountain Park. This Build For Rent (BFR) investment opportunity consisting of 82 Build For Rent (BFR) Detached Single

Family Residential Rental investment properties have already begun construction. Residents in the Courtyards at Madison

Ranch Qnd great appeal within the securely gated community. Perfect for families looking for well-designed homes with

expansive greenbelt areas, pedestrian friendly walkways, picnic areas, playgrounds, gated community pool, and soccer

Qeld in the heart of the community for the kids to practice & play!

The community, via in place HOA, meticulously maintains front yard landscaping. These 82 quality new build homes for

rental investment features an opportunity for Buyer to purchase homes at CertiQcate of Occupancy and place tenants

prior to completion so the investment is immediately cash Rowing. Currently, 6 homes are ready for immediate purchase

and another 7 will be available at CertiQcate of Occupancy in October of 2017. This provides an investor an opportunity to

have immediate cash Row with the purchase of the Qrst six homes while pre-leasing the next seven to be delivered

shortly thereaTer.

The Courtyard at Madison 82 Home Build For Rent (BFR) portfolio oPers almost no capital expenditures for several years

aTer occupancy. The Developer/Builder here is a seasoned Builder, with vast experience in the regional market place and

is well known for quality & integrity. Our 82 BFRs oPer spacious Roor plans throughout, all two story 3 & 4 bed and 2.5

bath homes with two car garages. Rental rates today are between rents between $1450-$1700 per month for these

beautiful homes. Pre-Leasing can begin once homes are under contract, as some homes are available for immediate

purchase and Builder can quickly Qnish out the remaining by Q2 of 2018, oPering buyer very near term cash Row with a

conservatively anticipated year 1 stabilized Cap Rate of 5.69%. Courtyards at Madison Ranch can provide immediate cash

Row and return on your investment from day one!

PROPERPROPERTTY OY OVERVERVIEWVIEW

PROPERPROPERTTY HIGHLIGHTSY HIGHLIGHTS

• Increase Your IRR and Yield with a New Build SFR Investment Portfolio

• Investment Opportunity with Little to No Capital Expenditures

• Strong Year 1 Stabilized Cap Rate of 5.69% with Zero Cap Ex

• Five Miles from Downtown Phoenix & Sky Harbor International Airport

• Major Employers within 10 miles in Almost All Directions

• Job Increases of 2.7% Annually are Projected for Next 5 Years

• Excellent Access & Visibility from Major Arterial Streets at 19th Ave & Baseline Rd

• TraSc Count on Baseline Rd is Over 33,000 Vehicles Per Day

• 82 Build For Rent (BFR) Detached Single Family Residential Rental Investment Portfolio

• Experienced Regional Builder Provides Homes at CertiQcate of Occupancy (C.O.)

• Builders Warranty on Brand New Homes with Greatly Reduced Capital Expenditures & Reserves Additional Home

Warranty Package on Big Ticket Items Giving Nearly 5 Years of Limited Cap EX

Property Summary


The Courtyard at Madison 82 Home Build For Rent (BFR) portfolio oPers almost no capital expenditures for

several years aTer occupancy. The Developer/Builder here is a seasoned Builder, with vast experience in

the regional market place and is well known for quality & integrity. Our 82 BFRs oPer spacious Roor plans

throughout, all two story 3 & 4 bed and 2.5 bath homes with two car garages. Rental rates today are

between rents between $1450-$1700 per month for these beautiful homes. Pre-Leasing can begin once

homes are under contract, as some homes are available for immediate purchase and Builder can quickly

Qnish out the remaining by Q2 of 2018, oPering buyer very near term cash Row with a conservatively

anticipated year 1 stabilized Cap Rate of 5.69%. Courtyards at Madison Ranch can provide immediate cash

Row and return on your investment from day one!

PROPERPROPERTTY OY OVERVERVIEWVIEW

Courtyard at Madison Ranch is located in Phoenix, Arizona. More speciQcally, the property is part of the

Southwest Phoenix submarket directly across from the South Mountain Pavilion Shopping Center, a major

power center, oPering residents over 230,000/sf of national & regional retailers on the signalized corner of

West Baseline Road and South 19th Avenue. Only 2 miles east on Baseline Rd is a Fry’s Food & Grocery

Store as well. The community oPers excellent drive by visibility with major frontage on 19th Ave and West

Baseline Rd is one of the most traveled thoroughfares south of the I-10 Freeway. South 19th Avenue has

direct on and oP-ramp access to I-10 and is a major north/south thoroughfare in Phoenix. It is very hard to

Qnd such quality living for at aPordable prices with all the necessary amenities residents desire, but the

Courtyards at Madison Ranch have exceeded expectations.

LLOCOCAATION OTION OVERVERVIEWVIEW

Property Description

SSALE HIGHLIGHTSALE HIGHLIGHTS

• Increase Your IRR and Yield with a New Build SFR Investment Portfolio

• Investment Opportunity with Little to No Capital Expenditures

• Strong Year 1 Stabilized Cap Rate of 5.69% with Zero Cap Ex

• Five Miles from Downtown Phoenix & Sky Harbor International Airport

• Major Employers within 10 miles in Almost All Directions

• Job Increases of 2.7% Annually are Projected for Next 5 Years

• Excellent Access & Visibility from Major Arterial Streets at 19th Ave &

Baseline Rd

• TraSc Count on Baseline Rd is Over 33,000 Vehicles Per Day

• 82 Build For Rent (BFR) Detached Single Family Residential Rental

Investment Portfolio

• Experienced Regional Builder Provides Homes at CertiQcate of Occupancy

(C.O.)

• Builders Warranty on Brand New Homes with Greatly Reduced Capital

Expenditures & Reserves Additional Home Warranty Package on Big

Ticket Items Giving Nearly 5 Years of Limited Cap EX


Complete Highlights


Additional Photos





2 LOCATION INFORMATION

22 LOCATION

INFORMATION82 HOME BFR SINGEL FAMILY



Courtyards at Madison RanchBuild For Rent Portfolio


Regional Map

Location Maps


Courtyards at Madison RanchBuild For Rent Portfolio


Aerial Map


Site Plan





3 FINANCIAL ANALYSIS

33 FINANCIAL

ANALYSIS82 HOME BFR SINGEL FAMILY



SFRhubBFRBROCHUREINVESTMENTOVERVIEW82BFRCourtyardatMadisonRanch OperatingYear: Year2 Year5 Year7

INVESTMENTOVERVIEW: StabilizedYear: Year1;T-12 Year3;T-36 Year5;T-60a)BuyPrice $20,768,000

b)BuyPricePerUnit $253,268

c)CapRate–StabilizedYear1/3/5 5.69% 6.29% 6.73%d)CapRateAdjustedwithCostSegregation–Year1/3/5 7.27% 7.87% 6.73%

e)GrossYield–Year1/3/5 8.03% 8.78% 9.31%f)NetOperatingIncome,Year1/3/5(N.O.I.) $1,182,193 $1,307,139 $1,397,321

g)UnleveragedInternalRateofReturn(I.R.R.)Year1/3/5YearHold 8.22% 10.55% 11.38%

h)LeveragedInternalRateofReturn(I.R.R.)Year1/3/5YearHold 27.41% 35.15% 37.93%

i)LeveragedCashonCashReturn(ROI)Year1/3/5YearHold 10.05% 12.06% 8.24%

OPERATINGPROFORMAj)GrossScheduledIncome,Year1/3/5 $1,668,417 $1,823,124 $1,934,152

k)OtherIncome(App.Fees,PetFees,LateFees) $0 $0 $0

l)AverageLeaseRate,(P.S.F.)Year1/3/5 $0.80 $0.87 $0.93

m)Vacancy 0.0% 0.0% 0.0%

n)OperatingExpenses,Year1/3/5 $486,224 $515,985 $536,831

o)NetOperatingIncome,(N.O.I.)Year1/3/5 $1,182,193 $1,307,139 $1,397,321

p)AdvancedCostSegregationBenefit,AdditionalAnnualCashFlow $328,000 $328,000 $0

q)AdjustedNetOperatingIncomewithCostSegregationBenefit $1,510,193 $1,635,139 $1,397,321

DEBTOVERVIEWr)DebtAmountat70%LTC $14,537,600

s)AnnualDebtServicePayment(P&I) $883,908

t)EstimatedAnnualMarketValuationAppreciation(National)-Year1/3/5 5.40% 5.40% 5.40%


Investment Overview





4 DEMOGRAPHICS

44DEMOGRAPHICS

82 HOME BFR SINGEL FAMILYINVESTMENT PORTFOLIO


3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES

Total population 79,543 165,327 773,086

Median age 28.1 29.1 29.6

Median age (male) 27.4 28.5 29.3

Median age (female) 28.8 29.5 29.8

Total households 22,793 46,817 254,430

Total persons per HH 3.5 3.5 3.0

Average HH income $54,829 $55,972 $57,535

Average house value $169,136 $246,087 $281,364

* Demographic data derived from 2010 US Census


Demographics Report

POPULAPOPULATIONTION 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES

Total population 79,543 165,327 773,086

Median age 28.1 29.1 29.6

Median age (male) 27.4 28.5 29.3

Median age (Female) 28.8 29.5 29.8

HOUSEHOLDS & INCHOUSEHOLDS & INCOMEOME 3 MILES3 MILES 5 MILES5 MILES 10 MILES10 MILES

Total households 22,793 46,817 254,430

# of persons per HH 3.5 3.5 3.0

Average HH income $54,829 $55,972 $57,535

Average house value $169,136 $246,087 $281,364

* Demographic data derived from 2010 US Census

Demographics Map






5 ADVISOR BIOS 55 ADVISOR BIOS82 HOME BFR SINGEL FAMILY



10789 N. 90th St., Suite 203

Scottsdale, AZ 85260

T 480.626.0219

C 480.797.9825

[email protected]

AZ #SA576104000

PROFESSIONAL BPROFESSIONAL BAACKCKGROUNDGROUND

Michael Finch began his successful career over 10 years ago in Phoenix, Arizona. Mr. Finch was able to expand hisexpertise from commercial and sales and development. He has developed broad local and national relationships withthe top ranked high density mid to large scale developers for Commercial Mixed Use & Multifamily Development.

As markets shiFed, Mr. Finch leveraged lender relationships formed in previous years, to plan and begin distressed realestate disposition. Michael was able to develop and grow these relationships to become an integral part of theacquisition and disposition team. Michael has developed and managed an extensive pipe line of lender owned assets,short sales, and portfolio note sales. Michael has continued to deliver value add deals for existing multifamily assets aswell as several income producing segments to his growing client base.

With an extensive national network, Mr. Finch has been successful and enjoys being an integral partner for client teamsfocused on large scale income producing portfolios which include existing multifamily, retail, oEce, medical & hospitalityassets.

MICHAEL FINCHMICHAEL FINCH

Senior Vice President


Advisor Bio

10789 N. 90th St., Suite 203

Scottsdale, AZ 85260

T 480.626.0210

C 480.442.8395

[email protected]

AZ #SA650889000

PROFESSIONAL BPROFESSIONAL BAACKCKGROUNDGROUND

Mr. Cline has worked with top industry professionals and has personal advanced knowledge and experience in small tovery large-scale commercial real estate brokerage, asset management, acquisition, Dnancing, development andconstruction segments. As a principal, Mr. Cline has completed approximately $2+ billion of commercial real estateproperty development and construction in most segments including approximately 22,000 multifamily units.

Mr. Cline’s speciDc experience includes commercial real estate leadership in general management, team building andmanaging, corporate and construction Dnancing, business development, asset management, property management,development management, marketing, disposition of new construction projects including multi-family, hotel, oEce,industrial and senior assisted living properties.

JeC’s top executive and mid-management level combined with front-line experience across most segments ofcommercial real estate in retail / management operations, design and general contracting, development, Dnancing,property management and real estate brokerage.

Over 38+ years, JeC has established an expanding local and national network of industry leaders as partners, clients andassociates.

JEFF CLINEJEFF CLINE

Senior Vice President


Advisor Bio


The material contained in this OPering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used

for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of

the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is

authorized by the Owner to provide any information or to make any representations other than contained in this OPering Brochure. If the person receiving

these materials does not choose to pursue a purchase of the Property, this OPering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information

contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This

OPering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct,

and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations

or warranties, expressed or implied, contained in or omitted from this OPering Brochure, or any other written or oral communication transmitted or made

available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any Qnal, fully

executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any

of their oScers, employees, representatives, independent contractors or aSliates, for the accuracy or completeness thereof. Recipients of this OPering

Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This OPering Brochure is a solicitation of interest only and is not an oPer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to

reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any

entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OPering

Brochure or making an oPer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms

acceptable to Owner, in Owner’s sole discretion. By submitting an oPer, a prospective purchaser will be deemed to have acknowledged the foregoing and

agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such

correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective

purchaser proceeds at its own risk.

Disclaimer

courtyards at madison ranch build for …...ranch qnd great appeal within the securely gated...

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