leemilltownhomes investmentdetails - loopnet · 2016. 3. 31. · leemilltownhomes investmentdetails...

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: [email protected]

GregShosaOwner/[email protected]

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.

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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

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


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)[email protected]

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


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


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

[email protected]

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

leemilltownhomes investmentdetails - loopnet · 2016. 3. 31. · leemilltownhomes investmentdetails...

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