mobile home underwriting silver sage · management fee 4.00% 6,256 total expenses $1,267 $35,464...

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2398 E. Camelback Road Suite 950 Phoenix, AZ 85016 T 602-252-4232 RYAN ASH Senior Managing Director T 602-852-3784 C 602-525-4877 [email protected] MIKE WOODRICK Director T 602-852-3789 C 480-540-1504 [email protected] Licensed as Newmark Knight Frank Multifamily in Arizona 2601 E. CLARENDON AVENUE | PHOENIX, AZ | 85016 SILVER SAGE MOBILE HOME COMMUNITY

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Page 1: MOBILE HOME UNDERWRITING SILVER SAGE · Management Fee 4.00% 6,256 Total Expenses $1,267 $35,464 NET OPERATING INCOME $124,584 Proforma MOBILE HOME UNDERWRITING ANALYSIS Downtown

2398 E. Camelback RoadSuite 950Phoenix, AZ 85016T 602-252-4232

RYAN ASHSenior Managing DirectorT 602-852-3784

C 602-525-4877

[email protected]

MIKE WOODRICKDirectorT 602-852-3789

C 480-540-1504

[email protected]

Licensed as Newmark Knight Frank Multifamily in Arizona

2601 E. CLARENDON AVENUE | PHOENIX, AZ | 85016

SILVER SAGEMOBILE HOME UNDERWRITING ANALYSIS

MOBILE HOME COMMUNITY

Page 2: MOBILE HOME UNDERWRITING SILVER SAGE · Management Fee 4.00% 6,256 Total Expenses $1,267 $35,464 NET OPERATING INCOME $124,584 Proforma MOBILE HOME UNDERWRITING ANALYSIS Downtown

DYNAMIC CAMELBACK CORRIDOR LOCATIONThe community is located in one of the hottest rental neighborhoods in Metro Phoenix situated just south of the Indian School redevelopment corridor and the Biltmore and Camelback Corridor. Residents in this bustling location enjoy being in close proximity to some of the most popular and trendy restaurants and coffee shops, world class shopping and class A office space in the entire valley. One block north of the community is the Biltmore Fashion Park, located along the northeast corner of 24th Street and Camelback Road, containing 535,430 square feet of open-air shop space and many of renowned Fox Restaurants including True Food Kitchen, Zinburger, and Blanco Tacos + Tequila. Retailers within the Fashion Park include Saks Fifth Avenue, Macy’s, Ralph Lauren, Apple, J.Crew, Brooks Brothers, and Pottery Barn. Other neighborhood hotspots include the Town & Country with Whole Foods, Snooze, Hopdoddy, The Macintosh, and Pizzeria Bianco. Other surrounding attractions in the immediate area include the Arizona Biltmore Resort and Golf Club, The Wrigley Mansion, Royal Palms, and the Phoenician Resort and Spa.

ARIZONA BILTMOREARIZONA BILTMORERESORT & GOLF CLUBRESORT & GOLF CLUB

BILTMORE FASHION PARK

TOWN & COUNTRY

Page 3: MOBILE HOME UNDERWRITING SILVER SAGE · Management Fee 4.00% 6,256 Total Expenses $1,267 $35,464 NET OPERATING INCOME $124,584 Proforma MOBILE HOME UNDERWRITING ANALYSIS Downtown

REDEVELOPMENT OPPORTUNITYGiven Silver Sage’s R-3 zoning designation, current ownership has a site plan for a 19-unit townhome redevelopment spanning the 44,894 sqft lot. In addition, the Seller owns the adjacent 2 parcels to the East which are 9,000 sqft lot’s each and are available for sale with the potential to add an additional 9 townhomes. Combined, the 3 parcels total 62,894 sqft equating to 1.44 acres which would allow for a sizable 28-unit townhome redevelopment. As single-family home prices in neighborhood climb towards $1M, urban infill townhome developments in the Biltmore and Camelback Corridors represent a more affordable alternative, commanding sale prices for new townhomes in the $400,000 to $500,000 range.

Page 4: MOBILE HOME UNDERWRITING SILVER SAGE · Management Fee 4.00% 6,256 Total Expenses $1,267 $35,464 NET OPERATING INCOME $124,584 Proforma MOBILE HOME UNDERWRITING ANALYSIS Downtown

2601 E. CLARENDON AVENUE | PHOENIX, AZ | 85016

SILVER SAGEPROPERTY DETAILS

ADDRESS: 2601 E. Clarendon AvenuePhoenix, AZ 85016

MOBILE HOME UNITS: 28

PRICE: $1,650,000

PRICE PER UNIT: $58,929

TERMS: New Financing

PROFORMA CAP RATE: 7.55%

AVG. PROFORMA RENT: $475

SILVER SAGE

Market Underwriting Analysis

INCOME AssumptionsGross Scheduled Rent $159,600Gross Potential Income $159,600

Less: Vacancy (2.0%) (3,192)Total Rental Income 98.00% $156,408

Plus: Other Income 130 3,640

Effective Gross Income $160,048

EXPENSES per unit

Repairs & Maintenance $200 $5,600Payroll 50 1,400Administrative/Advertising 25 700Utilities 597 16,714Total Variable Expenses $872 $24,414Taxes 136 3,796Insurance 36 998Management Fee 4.00% 6,256Total Expenses $1,267 $35,464

NET OPERATING INCOME $124,584

Proforma

MOBILE HOME UNDERWRITING ANALYSIS

Downtown Phoenix Central Business District

70,000+ employees10 minute drive

North Central Avenue Business District

53,000+ employees5-10 minute drive

Banner UniversityMedical Center

MOBILE HOME COMMUNITY