offering memorandumfiles.constantcontact.com/611cb4c9501/f465b27c-59f0-4d98-b1b1-1… · investment...

OAKDALE APARTMENTS

400 Scotland Drive, Fayetteville, NC

OFFERING MEMORANDUM

OAKDALE APARTMENTS

Fayetteville, NC

ACT ID Y0520007

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation

with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any

agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of

providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE

CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we

make no representations or warranties, express or implied, as to the accuracy of the information. References to

square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus &

Millichap. All rights reserved.

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Operating Statement

Notes

Pricing Detail

Capital Corporation

MARKET COMPARABLES 03Comparables

Rent Comparables

MARKET OVERVIEW 04Demographic Analysis

OAKDALE APARTMENTS

OAKDALE APARTMENTS

4

INVESTMENT

OVERVIEW

OAKDALE APARTMENTS

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Cape Fear Valley Health System 2,711

Cape Fear Valley Medical Ctr 2,711

County of Cumberland 1,321

Cracker Barrel 1,291

Saic 1,165

US Post Office 1,133

United Services Auto Assn 1,082

Fayetteville State University 1,007

Facet Purolator 800

Walmart 775

Easter Seals Ucp NC & VA 727

Cumberlnd Cnty Dept Social Svc 640

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 8,633 71,008 160,004

2010 Census Pop 8,886 71,645 159,112

2015 Estimate HH 3,588 30,181 65,295

2010 Census HH 3,691 30,441 64,759

Median HH Income $37,182 $43,386 $42,799

Per Capita Income $21,682 $25,915 $23,741

Average HH Income $52,080 $60,807 $57,728

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

32 1 Bedroom 650

86 2 Bedroom 1,050

118 Total 111,100

5

VITAL DATA

Price $4,012,000 CURRENT YEAR 1

Down Payment 30% / $1,203,600 CAP Rate 8.63% 10.16%

Loan Amount $2,808,400 GRM 5.44 5.18

Loan Type Proposed NewNet Operating Income

$346,367 $407,659

Interest Rate / Amortization 5.00% / 25 YearsNet Cash Flow After Debt Service

12.41% / $149,355 17.50% / $210,647

Price/Unit $34,000 Total Return 17.24% / $207,503 22.58% / $271,770

Price/SF $36.11

Number of Units 118

Rentable Square Feet 111,100

Year Built 1974

Lot Size 8.21 acre(s)

OAKDALE APARTMENTS

#

OFFERING SUMMARY

Utilities paid by tenants

Strong tenant pool

Desirable unit mix

INVESTMENT HIGHLIGHTS

The Oakdale Apartments complex (118 units) and the contiguous Watauga Manor Apartments complex (80 units) offer a promising opportunity for an investor. The Oakdale

Apartments were built in 1974, have a mix of 32 1 BR and 86 2 BR units that have a current occupancy of 90%. New management has significantly improved revenues and

occupancies. Both electricity and water are individually metered per unity and are paid for by the tenants. The current expenses for the property are at 49% of EGI, but by

decreasing vacancies, an investor can expect to bring expenses down to 45% of EGI. The property is expected to generate approximately a 13% cash on cash return for an

investor.

Fayetteville, NC is best-known as being the home of Fort Bragg, the major United States Army base just northwest of the city. The population of over 210,000 people in the

Fayetteville MSA is the fifth largest in the state of North Carolina, and it should be noted that this figure includes the population of Fort Bragg. The Department of Defense (Fort

Bragg) is the by far the largest employer in the city, followed by the school and health systems. Also located in the city are eight of the top ten defense contractors, such as

Lockheed Martin, Boeing, Northrup Grumman, General Dynamics, and L-3 Communications.

INVESTMENT OVERVIEW

6

REGIONAL MAP

OAKDALE APARTMENTS

7

LOCAL MAP

OAKDALE APARTMENTS

8

AERIAL PHOTO

OAKDALE APARTMENTS

9

OAKDALE APARTMENTS

10

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

OAKDALE APARTMENTS

RENT ROLL SUMMARY

11

FINANCIAL ANALYSIS

OAKDALE APARTMENTS

OPERATING STATEMENT

12

FINANCIAL ANALYSIS

OAKDALE APARTMENTS

PRICING DETAIL

13

OAKDALE APARTMENTS

14

MARKET

COMPARABLES

8

OAKDALE APARTMENTS

SALES COMPARABLES MAP

15

1

2

3

OAKDALE APARTMENTS

(SUBJECT)

Angel's Court

Woodstream

Kensington Court

Apartments

SALES COMPARABLES

16

PROPERTY NAMEOAKDALE APARTMENTS

COMPARABLESSALES COMPARABLES SALES COMPS AVG

Avg. 8.67%

0

1

2

3

4

6

7

8

9

10

11

Oakdale

Apartments

Angel's

Court

Woodstream Kensington

Court

Apartments

Average Cap Rate

17


COMPARABLESSALES COMPARABLES SALES COMPS AVG

Avg. $32

$0

$4

$8

$11

$15

$19

$23

$27

$30

$34

$38

Oakdale

Apartments

Angel's

Court


Court

Apartments

Average Price Per Square Foot

Avg. $31,550

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

$32,000

$36,000

$40,000

Oakdale

Apartments

Angel's

Court


Court

Apartments

Average Price Per Unit

PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES


673 VISTA ISLE DRIVE

673 VISTA ISLE DRIVE, SUNRISE, FL, 33325

OAKDALE APARTMENTS

400 SCOTLAND DR, FAYETTEVILLE, NC, 28304

Units Unit Type

Offering Price: $4,012,000 32 1 Bdr

Price/Unit: $34,000 86 2 Bdr

Price/SF: $36.11

CAP Rate: 8.63%

GRM: 5.44

Total No. of Units: 118

Year Built: 1974

Underwriting Criteria

Income $705,255 Expenses $358,889

NOI $346,367 Vacancy ($67,822)

817 RIDGE RD, FAYETTEVILLE, NC, 28311

ANGEL'S COURT

1

Units Unit Type

Close Of Escrow: 3/1/2016 32 2 Bdr 2 Bath

Sales Price: $1,150,000

Price/Unit: $35,938

Price/SF: $31.00

CAP Rate: 10.0%


Year Built: 1974


NOI $115,000

425 WOODSTREAM TRAIL, FAYETTEVILLE, NC, 28314

WOODSTREAM

Units Unit Type


Sales Price: $5,800,000 138 2 Bdr 2 Bath

Price/Unit: $28,713

Price/SF: $33.00

CAP Rate: 8.00%


Year Built: 1974


NOI $464,000 Expenses $1,020,000

2

PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Units Unit Type


Sales Price: $900,000

Price/Unit: $30,000

Price/SF: $32.00

CAP Rate: 8.00%


Year Built: 1968


NOI $70,800

KENSINGTON COURT APARTMENTS

3

6467 YADKIN RD, FAYETTEVILLE, NC, 28303

8

OAKDALE APARTMENTS

RENT COMPARABLES MAP

OAKDALE APARTMENTS

(SUBJECT)

Falcon Village Lodge

Cross Creek Cove

Treetop Apartments

Miller Avenue Apartments4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

20


COMPARABLES

21

AVERAGE OCCUPANCY

Avg. 95.20%

0

10

20

30

40

50

60

70

80

90

100

Oakdale

Apartments

Falcon

Village

Lodge

Cross

Creek Cove

Treetop

Apartments

Miller

Avenue

Apartments


COMPARABLES

22

AVERAGE RENT - MULTIFAMILY

Avg. $507

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

Oakdale

Apartments

Falcon

Village

Lodge

Cross

Creek Cove

Treetop

Apartments

Miller

Avenue

Apartments

1 Bedroom

Avg. $643

$0

$70

$140

$210

$280

$350

$420

$490

$560

$630

$700

Oakdale

Apartments

Falcon

Village

Lodge

Cross

Creek Cove

Treetop

Apartments

Miller

Avenue

Apartments

2 Bedroom

PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

RENT COMPARABLES

OAKDALE APARTMENTS

4800 ALAMANCE RD, FAYETTEVILLE, NC, 28304

OAKDALE APARTMENTS


OAKDALE APARTMENTS


23

YEAR BUILT: 1974

OAKDALE APARTMENTS


Unit Type Units SF Rent Rent/SF

1 Bdr 32 650 $446.64 $0.69

2 Bdr 86 1,050 $533.29 $0.51

Total/Avg. 118 942

FALCON VILLAGE LODGE6319 RAEFORD RD, FAYETTEVILLE, NC, 28304

OCCUPANCY: 98% | YEAR BUILT: 1990

1


1 Bdr 1 Bath 108 700-700 $499-$499 $0.72

Total/Avg. 108 700 $499 $0.71

CROSS CREEK COVE855 KING ARTHUR DR, FAYETTEVILLE, NC, 28314

2


1 Bdr 1 Bath 15 660-660 $499-$499 $0.76

2 Bdr 1 Bath 12 880-880 $645-$645 $0.74

2 Bdr 1.5 Bath 96 980-980 $660-$660 $0.68

2 Bdr 2 Bath 142 1,000-1,000 $725-$725 $0.73

Total/Avg. 265 968 $685 $0.71


PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

RENT COMPARABLES

TREETOP APARTMENTS

910 GREENLEAF DR, FAYETTEVILLE, NC, 28314

TREETOP APARTMENTS


TREETOP APARTMENTS


24

TREETOP APARTMENTS910 GREENLEAF DR, FAYETTEVILLE, NC, 28314


3


1 Bdr 1 Bath 145 650-650 $574-$583 $0.89

Total/Avg. 145 650 $579 $0.89

MILLER AVENUE APARTMENTS712 MILLER AVE, FAYETTEVILLE, NC, 28304


4


1 Bdr 1 Bath 23 650-650 $453-$453 $0.70

2 Bdr 1 Bath 1 1,000-1,000 $590-$590 $0.59

Total/Avg. 24 665 $459 $0.69

OAKDALE APARTMENTS

25

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

DEMOGRAPHICS

Source: © 2016 Experian

Created on March 2017

POPULATION 1 Miles 3 Miles 5 Miles

2020 Projection

Total Population 8,313 72,534 164,729

2015 Estimate


2010 Census


2000 Census


Daytime Population

2015 Estimate 16,768 83,572 181,374

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2020 Projection

Total Households 3,517 31,240 68,008

2015 Estimate


Average (Mean) Household Size 2.37 2.34 2.40

2010 Census


2000 Census


Growth 2015-2020 0.03% 4.16% 4.25%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2020 Projection 3,517 31,240 68,008

2015 Estimate 4,030 33,818 74,235

Owner Occupied 1,821 15,177 33,584

Renter Occupied 1,694 14,816 31,653

Vacant 514 3,824 8,998

Persons In Units

2015 Estimate Total Occupied Units 3,516 29,993 65,237

1 Person Units 32.37% 31.74% 29.97%

2 Person Units 32.76% 33.55% 32.84%

3 Person Units 15.61% 16.38% 17.54%

4 Person Units 10.61% 10.60% 11.42%

5 Person Units 4.89% 4.78% 5.11%

6+ Person Units 3.75% 2.95% 3.13%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2015 Estimate

$200,000 or More 1.91% 2.69% 1.95%

$150,000 - $199,000 2.15% 2.58% 2.34%

$100,000 - $149,000 4.70% 7.76% 8.23%

$75,000 - $99,999 6.86% 9.58% 10.36%

$50,000 - $74,999 20.28% 20.10% 19.71%

$35,000 - $49,999 16.65% 17.12% 16.02%

$25,000 - $34,999 17.25% 14.07% 13.21%

$15,000 - $24,999 15.57% 12.57% 12.91%

Under $15,000 14.62% 13.52% 15.28%

Average Household Income $52,294 $60,784 $57,571

Median Household Income $37,359 $43,249 $42,641

Per Capita Income $21,799 $25,853 $23,689

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2015 Estimate Total Population 8,448 70,719 159,789

Under 20 25.71% 26.54% 27.79%

20 to 34 Years 24.96% 27.79% 26.67%

35 to 39 Years 5.33% 5.63% 5.84%

40 to 49 Years 11.55% 11.02% 11.65%

50 to 64 Years 18.30% 16.39% 16.41%

Age 65+ 14.16% 12.64% 11.63%

Median Age 34.49 32.08 31.94

Population 25+ by Education Level

2015 Estimate Population Age 25+ 5,561 45,327 100,613

Elementary (0-8) 3.29% 2.76% 3.03%

Some High School (9-11) 8.11% 6.53% 7.59%

High School Graduate (12) 32.64% 25.61% 25.99%

Some College (13-15) 25.91% 26.60% 26.65%

Associate Degree Only 9.82% 10.44% 10.61%

Bachelors Degree Only 11.80% 17.06% 16.12%

Graduate Degree 7.63% 10.20% 9.03%

Population by Gender

2015 Estimate Total Population 8,448 70,719 159,789

Male Population 47.74% 48.03% 47.81%

Female Population 52.26% 51.97% 52.19%

26

Income

In 2016, the median household income for your selected geography is

$37,359, compare this to the US average which is currently $54,148.

The median household income for your area has changed by 1.35%

since 2000. It is estimated that the median household income in your

area will be $42,749 five years from now, which represents a change

of 14.43% from the current year.

The current year per capita income in your area is $21,799, compare

this to the US average, which is $29,638. The current year average

household income in your area is $52,294, compare this to the US

average which is $77,468.

Population

In 2016, the population in your selected geography is 8,448. The

population has changed by -1.26% since 2000. It is estimated that

the population in your area will be 8,313.00 five years from now,

which represents a change of -1.60% from the current year. The

current population is 47.74% male and 52.26% female. The median

age of the population in your area is 34.49, compare this to the US

average which is 37.55. The population density in your area is

2,688.09 people per square mile.

Households

There are currently 3,516 households in your selected geography. The

number of households has changed by 5.05% since 2000. It is

estimated that the number of households in your area will be 3,517

five years from now, which represents a change of 0.03% from the

current year. The average household size in your area is 2.37 persons.

Employment

In 2016, there are 7,017 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

52.91% of employees are employed in white-collar occupations in

this geography, and 46.29% are employed in blue-collar occupations.

In 2016, unemployment in this area is 5.47%. In 2000, the average

time traveled to work was 20.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

51.73% White, 31.39% Black, 0.36% Native American and 3.65%

Asian/Pacific Islander. Compare these to US averages which are:

70.98% White, 12.77% Black, 0.19% Native American and 5.25%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 13.34% of the current year

population in your selected area. Compare this to the US average of

17.53%.

PROPERTY NAME

MARKETING TEAM

OAKDALE APARTMENTS

Housing

The median housing value in your area was $99,026 in 2016, compare

this to the US average of $185,104. In 2000, there were 2,046 owner

occupied housing units in your area and there were 1,300 renter

occupied housing units in your area. The median rent at the time was

$475.

Source: © 2016 Experian

DEMOGRAPHICS

27

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