fedora apartments · 2020. 2. 13. · fedora apartments contents pem properties, inc. percy...

Fedora Apartments1940 E. Fedora Ave., Fresno, CA, 93726-5425

Fedora ApartmentsCONTENTS

PEM Properties, Inc.

Percy WilliamsBrokerLic: 01031260(559) [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

5067 N Mariposa Ave Ste 102Fresno, CA 93710

01 Executive Summary Investment Summary 3 Unit Mix Summary 4 Location Summary 5

02 Property Description Property Features 6 Aerial Map 7

03 Rent Comps Rent Comparables 8 Rent Comparables Summary 11 Rent Comparables Map 12

04 On Market Comps On Market Comparables 13 On Market Comparables Summary 15 On Market Comparables Charts 16 On Market Comparables Map 17

05 Sale Comps Sale Comparables 18 Sale Comparables Summary 20 Sale Comparables Charts 21 Sale Comparables Map 22

06 Rent Roll Rent Roll Details 23

07 Financial Analysis Income & Expense Analysis 24 Multiyear Cash Flow Assumptions 25 Cash Flow Analysis 26 Disposition Sensitivity Analysis 28

08 Demographics Demographics 29 Demographic Charts 30

Fedora Apartments Investment Summary | 03

OFFERING SUMMARYADDRESS 1940 E. Fedora Ave.

Fresno CA 93726-5425COUNTY FresnoMARKET FresnoSUBMARKET Southeast FresnoBUILDING SF 2,448LAND SF 8,000NUMBER OF UNITS 5YEAR BUILT 1957APN 437-101-02OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $415,000PRICE PSF $169.53PRICE PER UNIT $83,000OCCUPANCY 97.00 %NOI (CURRENT) $27,628NOI (Pro Forma) $27,522CAP RATE (CURRENT) 6.66 %CAP RATE (Pro Forma) 6.63 %GRM (CURRENT) 10.26GRM (Pro Forma) 9.61

PROPOSED FINANCINGLOAN TYPE Fully AmortizedDOWN PAYMENT $103,750LOAN AMOUNT $311,250INTEREST RATE 4.50 %ANNUAL DEBT SERVICE $18,925LOAN TO VALUE 75 %AMORTIZATION PERIOD 30 YearsNOTES Conventional bank Loan

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 19,484 181,542 412,5832019 Median HH Income $37,145 $37,109 $40,4862019 Average HH Income $51,031 $54,449 $58,744

Fedora Apartments Unit Mix Summary | 04

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income

1 bd + 1 ba 5 490 $654 $1.33 $3,270 $720 $1.47 $3,600

Totals/Averages 5 490 $654 $1.33 $3,270 $720 $1.47 $3,600

Fedora Apartments Location Summary | 05

Fedora Apartments Property Features | 06

PROPERTY FEATURESNUMBER OF UNITS 5BUILDING SF 2,448LAND SF 8,000LAND ACRES .1836YEAR BUILT 1957# OF PARCELS 1ZONING TYPE RS5BUILDING CLASS CTOPOGRAPHY FlatLOCATION CLASS CNUMBER OF STORIES 1NUMBER OF BUILDINGS 1NUMBER OF PARKING SPACES 5PARKING RATIO 1.0POOL / JACUZZI NoneFIRE PLACE IN UNIT 0WASHER/DRYER None

FEES & DEPOSITSAPPLICATION FEE $35.00SECURITY DEPOSIT $700PET FEE $500.00

MECHANICALHVAC HVACFIRE SPRINKLERS None

UTILITIESWATER LandlordTRASH LandlordGAS TenantELECTRIC TenantRUBS None

CONSTRUCTIONFOUNDATION FoundationFRAMING WoodEXTERIOR WoodPARKING SURFACE AsphaltROOF AsphaltLANDSCAPING Grass/Trees

Fedora Apartments Aerial Map | 07

Fedora Apartments Rent Comparables | 08

1

2639 Harvard2639 E. Harvard Ave., Fresno, CA 93703

Property SummaryUNITS 6YEAR BUILT 1950OCCUPANCY 100.00 %DISTANCE 1.5 miles

Unit Mix and Rent ScheduleUnit Mix # of Units Square Feet Rent Rent per SF

1 bd + 1 ba 2 525 $610 $1.161 bd + 1 ba 2 525 $675 $1.281 bd + 1 ba 1 525 $637 $1.211 bd + 1 ba 1 525 $502 $0.95Total/Avg 6 525 $606 $1.15

Unit Mix Breakdown

Comparables Rent Analysis

1 bd + 1 ba $502 - $810

LOW HIGH

1 bd + 1 ba $502 - $810

LOW HIGH

1 bd + 1 ba $502 - $810

LOW HIGH

1 bd + 1 ba $502 - $810

LOW HIGH


2 511 Yosemite511 Yosemite Ave. #A-E, Fresno, CA 93728

Property SummaryUNITS 5YEAR BUILT 1953OCCUPANCY 100.00 %DISTANCE 3.6 miles

Unit Mix and Rent ScheduleUnit Mix # of Units Square Feet Rent Rent per SF

1 bd + 1 ba 2 500 $600 $1.201 bd + 1 ba 1 500 $700 $1.401 bd + 1 ba 1 500 $675 $1.35

Studio + 1 ba 1 400 $500 $1.25Total/Avg 5 475 $619 $1.30

Unit Mix Breakdown


1 bd + 1 ba $502 - $810

LOW HIGH

1 bd + 1 ba $502 - $810

LOW HIGH

1 bd + 1 ba $502 - $810

LOW HIGH


S

Fedora Apartments1940 E. Fedora Ave., Fresno, CA 93726-5425

Property SummaryUNITS 5YEAR BUILT 1957OCCUPANCY 97.00 %

Unit Mix and Rent ScheduleUnit Mix # of Units Square Feet Rent Summary Rent per SF

1 bd + 1 ba 5 490 $654 $1.33Totals/Averages 5 490 $654 $1.33

Unit Mix Breakdown


1 bd + 1 ba $502 - $810

LOW HIGH

Fedora Apartments Rent Comparables Summary | 11

Rents shown in ascending order.

Fedora Apartments Rent Comparables Map | 12

# Property Name Address CityS Fedora Apartments 1940 E. Fedora Ave. Fresno1 2639 Harvard 2639 E. Harvard Ave. Fresno2 511 Yosemite 511 Yosemite Ave. #A-E Fresno

Fedora Apartments On Market Comparables | 13

1

McKinley Text Book960 E. McKinley Ave.Fresno, CA 93728

TOTAL UNITS 5YEAR BUILT 1951ASKING PRICE $550,000PRICE/UNIT $110,000PRICE/SF $141.39CAP RATE 6.02 %GRM 12.39OCCUPANCY 80.00 %BUILDING SF 3,890YEAR BUILT 1951DAYS ON MARKET 108DISTANCE 2.6 miles

Cap Rate Range 6.02 % - 7.40 %

LOW HIGH

Price/Unit Range $83,000 - $110,000

LOW HIGH

DOM Range 108 - 108

LOW HIGH

Notes 4 Apartment Units and a Commercial Space, (BookStore, previously). Commercial Space is vacant!!

2

Terrace Apartments2311-2321 E. Terrace Ave.Fresno, CA 93703

TOTAL UNITS 6YEAR BUILT 1953ASKING PRICE $530,000PRICE/UNIT $88,333PRICE/SF $135.14CAP RATE 7.40 %GRM 9.48OCCUPANCY 100.00 %BUILDING SF 3,922YEAR BUILT 1953DISTANCE 1.6 miles


LOW HIGH


LOW HIGH

Fedora Apartments On Market Comparables | 14

S

Fedora Apartments1940 E. Fedora Ave.Fresno, CA 93726-5425

TOTAL UNITS 5

YEAR BUILT 1957

ASKING PRICE $415,000

PRICE/UNIT $83,000

PRICE/SF $169.53

CAP RATE 6.66 %

GRM 10.26

OCCUPANCY 97.00 %

BUILDING SF 2,448

YEAR BUILT 1957


LOW HIGH


LOW HIGH

Fedora Apartments On Market Comparables Summary | 15

PROPERTY Units Built Ask Price Price/Unit PSF Cap Rate DISTANCE (mi)

1 960 E. McKinley Ave.Fresno, CA 93728 5 1951 $550,000 $110,000 $141.39 6.02% 2.60

2 2311-2321 E. Terrace Ave.Fresno, CA 93703 6 1953 $530,000 $88,333 $135.14 7.40% 1.60

AVERAGES 6 1952 $540,000 $99,167 $138.26 6.71%

SUBJECT 5 1957 $415,000 $83,000 $169.53 6.66%

Fedora Apartments On Market Comparables Charts | 16

Fedora Apartments On Market Comparables Map | 17

# Property Name Address CityS Fedora Apartments 1940 E. Fedora Ave. Fresno1 McKinley Text Book 960 E. McKinley Ave. Fresno2 Terrace Apartments 2311-2321 E. Terrace Ave. Fresno

Fedora Apartments Sale Comparables | 18

1

Harvard Apartments2639 E. Harvard Ave.Fresno, CA 93703

TOTAL UNITS 6YEAR BUILT 1950SALE PRICE $424,000PRICE/UNIT $70,667PRICE/SF $134.43CAP RATE 5.96 %GRM 9.7OCCUPANCY 100.00 %BUILDING SF 3,154YEAR BUILT 1950CLOSING DATE 10/18/2019DAYS ON MARKET 18DISTANCE 1.5 miles


LOW HIGH


LOW HIGH

DOM Range 10 - 194

LOW HIGH

2

3671 Effie3671 N. Effie St.Fresno, CA 93726

TOTAL UNITS 5YEAR BUILT 1960SALE PRICE $421,000PRICE/UNIT $84,200PRICE/SF $98.55CAP RATE 8.25 %GRM 9.53OCCUPANCY 100.00 %BUILDING SF 4,272YEAR BUILT 1960CLOSING DATE 9/11/2019DAYS ON MARKET 10DISTANCE 23 ft


LOW HIGH


LOW HIGH

DOM Range 10 - 194

LOW HIGH

Fedora Apartments Sale Comparables | 19

3

511 Yosemite511 N. Yosemite Ave. A-EFresno, CA 93728

TOTAL UNITS 5YEAR BUILT 1953SALE PRICE $325,000PRICE/UNIT $65,000PRICE/SF $123.57CAP RATE 6.65 %GRM 8.88OCCUPANCY 100.00 %BUILDING SF 2,630YEAR BUILT 1953CLOSING DATE 7/12/2019DAYS ON MARKET 194DISTANCE 5.1 miles


LOW HIGH


LOW HIGH

DOM Range 10 - 194

LOW HIGH

S

Fedora Apartments1940 E. Fedora Ave.Fresno, CA 93726-5425

TOTAL UNITS 5

YEAR BUILT 1957

ASKING PRICE $415,000

PRICE/UNIT $83,000

PRICE/SF $169.53

CAP RATE 6.66 %

GRM 10.26

OCCUPANCY 97.00 %

BUILDING SF 2,448

YEAR BUILT 1957


LOW HIGH


LOW HIGH

Fedora Apartments Sale Comparables Summary | 20

PROPERTY Units Built Sale Price Price/Unit PSF Cap Rate Close Date DISTANCE (mi)

1 2639 E. Harvard Ave.Fresno, CA 93703 6 1950 $424,000 $70,667 $134.43 5.96% 10/18/2019 1.50

2 3671 N. Effie St.Fresno, CA 93726 5 1960 $421,000 $84,200 $98.55 8.25% 9/11/2019 0.00

3 511 N. Yosemite Ave. A-EFresno, CA 93728 5 1953 $325,000 $65,000 $123.57 6.65% 7/12/2019 5.10

AVERAGES 5 1954 $390,000 $73,289 $118.85 6.95%

SUBJECT 5 1957 $415,000 $83,000 $169.53 6.66%

Fedora Apartments Sale Comparables Charts | 21

Fedora Apartments Sale Comparables Map | 22

# Property Name Address CityS Fedora Apartments 1940 E. Fedora Ave. Fresno1 Harvard Apartments 2639 E. Harvard Ave. Fresno2 3671 Effie 3671 N. Effie St. Fresno3 511 Yosemite 511 N. Yosemite Ave. A-E Fresno

Fedora Apartments Rent Roll Details | 23

Unit Square Feet Unit Mix Monthly Rent PSF Market Rent Move-in Date Notes1940 490 1 bd + 1 ba $650 $1.33 $720 11/1/2017 HAP Tenant1942 490 1 bd + 1 ba $700 $1.43 $720 7/1/20181944 490 1 bd + 1 ba $650 $1.33 $720 3/1/20171946 490 1 bd + 1 ba $720 $1.47 $720 6/1/20171948 490 1 bd + 1 ba $650 $1.33 $720 10/1/2017

Totals/Averages $3,370 $1.38 $3,600

Fedora Apartments Income & Expense Analysis | 24

INCOME CURRENT PRO FORMAGross Potential Income $40,440 $43,200

Less: General Vacancy $1,213 $1,296

Effective Gross Income $39,227 $41,904

Less: Expenses $11,599 $14,382

Net Operating Income $27,628 $27,522

Principal Reduction $4,919 $4,919

Total Return 13.1 % $13,622 13.0 % $13,515

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $726 $3,631 $726 $3,631

Insurance $277 $1,383 $277 $1,383

Management Fee $587 $2,933

Repairs & Maintenance $360 $1,800 $360 $1,800

Water / Sewer $757 $3,785 $757 $3,785

Landscaping $170 $850 $170 $850

Pest Control $30 $150 $0

Total Operating Expense $2,320 $11,599 $2,876 $14,382

Annual Debt Service $3,785 $18,925 $3,785 $18,925

Expense / SF $4.73 $5.87

% of EGI 29.57 % 34.32 %

Per Unit Per Unit

Expense Notes: Owner currently manages the property.

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Fedora Apartments Multiyear Cash Flow Assumptions | 25

GLOBALSale Price $415,000Analysis Period 5 year(s)Consumer Price Index 3.00 %Exit Cap Rate 9.00 %

INCOMEGross Potential Rent 8.00 %

EXPENSESReal Estate Taxes 1.00 %Insurance 2.00 %Repairs & Maintenance 3.00 %Water / Sewer 1.00 %

PROPOSED FINANCINGLoan Type Fully AmortizedDown Payment $103,750Loan Amount $311,250Interest Rate 4.50 %Annual Debt Service $18,925Loan to Value 75 %Amortization Period 30 YearsNotes Conventional bank Loan

Fedora Apartments Cash Flow Analysis | 26

CASH FLOWCalendar Year CURRENT Pro Forma Year 3 Year 4 Year 5Gross Potential RevenueGross Rental Income $40,440 $43,200 $46,656 $50,388 $54,420Gross Potential Income $40,440 $43,200 $46,656 $50,388 $54,420General Vacancy $1,213 $1,296 $1,400 $1,512 $1,633Effective Gross Income $39,227 $41,904 $45,256 $48,877 $52,787Operating ExpensesReal Estate Taxes $3,631 $3,631 $3,667 $3,704 $3,741Insurance $1,383 $1,383 $1,411 $1,439 $1,468Management Fee $2,933 $3,168 $3,421 $3,695Repairs & Maintenance $1,800 $1,800 $1,854 $1,910 $1,967Water / Sewer $3,785 $3,785 $3,823 $3,861 $3,900Landscaping $850 $850 $850 $850 $850Pest Control $150 $0 $0 $0 $0Total Operating Expense $11,599 $14,382 $14,773 $15,185 $15,620Net Operating Income $27,628 $27,522 $30,484 $33,692 $37,167Annual Debt Service $18,925 $18,925 $18,925 $18,925 $18,925Cash Flow $8,703 $8,597 $11,559 $14,767 $18,242

Effective Gross Income vs Operating Expenses Cash Flow

Fedora Apartments Cash Flow Analysis | 27

Calendar Year CURRENT Pro Forma Year 3 Year 4 Year 5Financial MetricsCash on Cash Return b/t 8.39 % 8.29 % 11.14 % 14.23 % 17.58 %CAP Rate 6.66 % 6.63 % 7.35 % 8.12 % 8.96 %Debt Coverage Ratio 1.46 1.45 1.61 1.78 1.96Operating Expense Ratio 29.56 % 34.32 % 32.64 % 31.06 % 29.59 %Gross Multiplier (GRM) 10.26 9.61 8.89 8.24 7.63Loan to Value 75.03 % 73.78 % 72.60 % 71.25 % 69.90 %Breakeven Ratio 77.81 % 79.48 % 74.46 % 69.79 % 65.44 %Price / SF $169.53 $169.53 $169.53 $169.53 $169.53Price / Unit $83,000 $83,000 $83,000 $83,000 $83,000Income / SF $16.02 $17.11 $18.48 $19.96 $21.56Expense / SF $4.73 $5.87 $6.03 $6.20 $6.38

Fedora Apartments Disposition Sensitivity Analysis | 28

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

8.00% $464,583 $92,917 $190 $176,993 20.46%8.25% $450,504 $90,101 $184 $162,915 18.94%8.50% $437,254 $87,451 $179 $149,665 17.43%8.75% $424,761 $84,952 $174 $137,172 15.92%9.00% $412,962 $82,592 $169 $125,373 14.42%9.25% $401,801 $80,360 $164 $114,212 12.91%9.50% $391,227 $78,245 $160 $103,638 11.39%9.75% $381,196 $76,239 $156 $93,607 9.87%

10.00% $371,666 $74,333 $152 $84,077 8.33%

Fedora Apartments Demographics | 29

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 18,066 173,603 388,207

2010 Population 19,015 177,252 401,542

2019 Population 19,484 181,542 412,583

2024 Population 19,835 184,716 421,372

2019 African American 1,472 12,852 31,666

2019 American Indian 381 3,656 7,687

2019 Asian 1,595 18,053 43,119

2019 Hispanic 11,158 103,407 223,928

2019 White 8,981 83,497 196,857

2019 Other Race 5,921 53,133 110,481

2019 Multiracial 1,097 9,994 21,909

2019-2024: Population: Growth Rate 1.80 % 1.75 % 2.10 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 1,243 11,883 23,427

$15,000-$24,999 1,014 8,822 18,993

$25,000-$34,999 820 7,399 16,312

$35,000-$49,999 1,136 8,803 20,119

$50,000-$74,999 1,065 9,110 22,512

$75,000-$99,999 595 5,802 14,220

$100,000-$149,999 478 4,724 11,838

$150,000-$199,999 156 1,666 4,497

$200,000 or greater 90 1,298 3,463

Median HH Income $37,145 $37,109 $40,486

Average HH Income $51,031 $54,449 $58,744

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 7,016 63,142 138,699

2010 Total Households 6,508 58,455 132,178



2019 Average Household Size 2.91 3.01 2.99

2000 Owner Occupied Housing 3,179 26,912 62,033

2000 Renter Occupied Housing 3,383 31,967 68,182



2019 Vacant Housing 615 5,358 11,930

2019 Total Housing 7,212 64,865 147,313



2024 Vacant Housing 648 5,573 12,565

2024 Total Housing 7,340 65,965 150,677

2019-2024: Households: Growth Rate 1.45 % 1.50 % 2.00 %

Source: esri

Fedora Apartments Demographic Charts | 30

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

Fedora Apartments Demographic Charts | 31

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

Fedora Apartments

CONFIDENTIALITY and DISCLAIMERThe information contained in the following offering memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from PEM Properties, Inc. and it should not be madeavailable to any other person or entity without the written consent of PEM Properties, Inc..

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat allsuch information in the strictest confidence. The recipient further agrees that recipient will not photocopy orduplicate any part of the offering memorandum. If you have no interest in the subject property, please promptlyreturn this offering memorandum to PEM Properties, Inc.. This offering memorandum has been prepared toprovide summary, unverified financial and physical information to prospective purchasers, and to establish onlya preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation. PEM Properties,Inc. has not made any investigation, and makes no warranty or representation with respect to the income orexpenses for the subject property, the future projected financial performance of the property, the size andsquare footage of the property and improvements, the presence or absence of contaminating substances, PCBsor asbestos, the compliance with local, state and federal regulations, the physical condition of the improvementsthereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property.

The information contained in this offering memorandum has been obtained from sources we believe reliable;however, PEM Properties, Inc. has not verified, and will not verify, any of the information contained herein, norhas PEM Properties, Inc. conducted any investigation regarding these matters and makes no warranty orrepresentation whatsoever regarding the accuracy or completeness of the information provided. All potentialbuyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shallbe responsible for their costs and expenses of investigating the subject property.

PEM Properties, Inc.

Percy WilliamsBrokerLic: 01031260(559) [email protected]

5067 N Mariposa Ave Ste 102, Fresno, CA 93710 powered by CREOP

fedora apartments · 2020. 2. 13. · fedora apartments contents pem properties, inc. percy...

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