64 Unit
●
Class C
Asset
●
Located
in
Beaumont
Texas
ALABAMA GARDEN
●
1135 Alabama St.
●
Beaumont, TX 77705
Price Per Unit
$29,500
Units:
64
Price Per Sq. Ft.
$39.66
Avg Size:
744
Stabilized NOI
$179,145
Date Built:
1972
Value Capped @ 8.5%
$2,107,589
Rentable Sq. Ft.:
47,600
Acreage:
2.53
Occupancy:
86%
Class:
C
♦ Great Area Job Base ♦ Upgrades to the Property in the Last 3 Years Include:
♦ Good Drive-by and Curb Appeal A/C's, Roofs, Ceramic Tile, HardiPlank Siding, A/C Cages ♦ Property has been Rehabbed ♦ Please note that Alabama Gardens consist of 3 addresses:
♦ Beaumont is a Strong Petrochemical Based Market ♦ 1095 Alabama St. 16 Units
♦ Well Maintained Smaller Asset in a Strong Area ♦ 1135 Alabama St. 25 Units
♦ Located in Beaumont, Texas Approx 90 Miles East of Houston ♦ 4905 Wyatt St. 23 Units ♦ Ideal for long term hold ♦ Lamar University is Slowly buying all the Real Estate Adjacent ♦ Area Benefits From the Texas Gulf Coast Economic Boom to the Campus
♦ Student Housing Component - on Lamar University Campus
$1,888,000
For More Information Please Contact: HIGHLIGHTS
PLEASE DO NOT VISIT THE PROPERTY OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER!
Apartments For Sale
Hashir Saleem, Senior Associate
hashir@ketent.com l 713-355-4646 l ext 106 KET ENTERPRISES INCORPORATED 4295 San Felipe l Suite 355 l Houston, TX 77027
www.ketent.com Broker License #0406902
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
Asking Price Est Mkt Rent (Sep-14)
Price Per Unit Amortization 5 Mo Avg
Price Per Sq. Ft. P & I
Stabilized NOI Debt Service/year
Value Capped @ 8.5% Origination Date
Due Date
Water Meter / Master Master Interest Rate
Type Pitched
PRO-FORMA INCOME
Current Street Rent with a % Increase
$33,450 / MoEstimated Gross Scheduled Income
$33,450 / MoEstimated Loss to Lease (2% of Total Street Rent)
2%Estimated Vacancy (8% of Total Street Rent)
Estimated Concessions and Other Rental Losses (8% of Total Street Rent)
8%Estimated Utilities Income
Estimated Other Income
$250 / Unit / YrEstimated Total Rental Income
ESTIMATED TOTAL PRO-FORMA INCOME
$38,324 / MoApr thru Aug 2014 Income Annualized
1Fixed Expenses
2013 Tax Rate & Est Future Assessment Estimated
$939 per Unit $1,112 per Unit
Total Utilities
$159 per Unit $640 per UnitOther Expenses
General & Admin & Marketing
Repairs & Maintenance
Labor Costs
Contract Services
Management Fees
4.00% $215 per Unit 4.00% $287 per UnitTotal Other Expense
$1,623 per Unit $2,335 per UnitTotal Operating Expense
$2,722 per Unit $4,087 per UnitReserve for Replacement
$300 per Unit $300 per UnitTotal Expense
$3,022 per Unit lower than normal $4,387 per UnitNet Operating Income (Actual Underwriting)
Asking Price
Cap Rate
Proposed Debt
Equity
Proposed Debt Service
Cash Flow
Cash on Cash
NOTES: ACTUALS: Actuals are from Owner's Jan thru July 2014 operating statement. Reserve for Replacement estimated on actual and pro forma at $300/unit/year. 1. Per Owner, total income includes late fees, application fees, vending, etc.; however, there is no line item for miscellaneous income.
2. Parkway Apartment pays the bulk of property labor and maintenance charges, therefore an adjustment to these accounts has been made by the broker. 3. Management fees were added by the broker.
PRO FORMA: Insurance is estimated. Taxes are 2013 rate and estimated future assessment. All other expenses are estimated.
Physical Information
Financial Information
Projected Loan Parameters
Operating Information
Avg Unit Size 744 $29,500 300 $28,649
Number of Units 64 $1,888,000 $1,321,600 $33,450
(months) Proposed Loan at 70%
86%
Land Area (Acres) 2.53 $179,145 $90,416 Est Ins per Unit per Yr
Net Rentable Area 47,600 $39.66 $7,535 Physical Occ (Aug-14)
$370
Units per Acre 25.275 $2,107,589 Closing Property Tax Information
Date Built 1972 10 years 2013 Tax Rate/$100 2.68965
Elec Meter Indiv Conduit Est 2014 Taxes $36,491
4.75% 2014 Tax Assessment $1,356,730
INCOME
401,400 401,400
HVAC System Indiv Est Future Taxes $47,472
Roof Style Yes Est Future Tax Assessment $1,765,000
* per unit ; per ft
-Yield Maintenance
(8,028) (32,112) 8%
MODIFIED ACTUALS
PRO-FORMA459,893
(32,112)
114,745 $1,793 / Unit / Yr 16,000
$343,784
EXPENSE
Jan thru Jul 2014 Expenses Annualized Estimated Future ExpensesFixed Expenses Estimated Fixed Expenses
459,893
Total Fixed Expense
60,125
71,152
Utilities
Utilities Estimated UtilitiesInsurance
$23,633 $369 per Unit $23,680 $370 per UnitTaxes
$36,491 $570 per Unit 2013 Tax Rate & 2014 Assessment $47,472 $742 per UnitElectricity
$1,071 $17 per Unit $4,480 $70 per Unit$9,110 $142 per Unit $36,480 $570 per Unit
Water & Sewer
Gas
$ per Unit $ per Unit10,181
40,960
Other Expenses Estimated Other Expenses
$12,800 $200 per Unit 2. Adjusted by Broker $16,640 $260 per Unit
$3,722 $58 per Unit $12,000 $188 per Unit
$13,751 $18,396
$32,000 $500 per Unit $32,000 $500 per Unit
$41,600 $650 per Unit $70,400 $1,100 per Unit
3. Added by Broker 2. Adjusted by Broker 2. Adjusted by Broker
193,379
280,748
150,405
179,145
1,888,000
1,888,000
103,873
149,436
174,179
261,548
19,200
19,200
DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period.THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.
90,416
90,416
59,989
88,729
10.59%
15.67%
7.97%
9.49%
1,321,600
1,321,600
566,400
566,400
10/1/2014 AlabamaGarden.xlsxALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
PROPERTY OVERVIEWAge: 1972
Year Renovated: 2010
Elec Meter: Indiv
A/C Type: HVAC
Water: Master Beaumont ISD $1.315000
Wiring: Copper City of Beaumont $0.690000
Roof: Pitched Port of Beaumont $0.069692
Paving: Concrete SabineNeches NAV Drainage $0.029374
Materials: Brick/HardiPlank Drainage District #6 $0.220587
# of Stories: 2 Jefferson County $0.365000
Parking: 383 Spaces
Buildings: 17 2013 Tax Rate/$100 $2.689653
Units/Acre: 0.00 2014 Tax Assessment $1,356,730
COLLECTIONS 5 Mo Avg $ 28,649 Sep 2013 $ 24,616 Oct 2013 $ 24,616 Nov 2013 $ 24,616 Dec 2013 $ 24,616 Jan 2014 $ 23,699 Feb 2014 $ 27,075 Mar 2014 $ 28,530 Apr 2014 $ 32,684 May 2014 $ 29,131 Jun 2014 $ 26,749 Jul 2014 $ 27,797 Aug 2014 $ 27,001 PROPERTY HIGHLIGHTS
PLEASE DO NOT VISIT THE SITE OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.
PROPERTY INFORMATION
JEFFERSON COUNTYTAXING AUTHORITY ACCT ID 55611 55623 85191 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Sep
2013 2013 Oct 2013 Nov 2013 Dec 2014 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug
A lease up opportunity, Alabama Gardens is a 64 unit garden style apartment complex, located on Alabama Avenue in Beaumont, TX. The property provides a playground, covered parking and patios/balconies. The project is across from Lamar University and maintains a strong occupancy while school is in session.
The owner has recently painted the exterior and replaced wood siding with Hardi Plank. The asset historically maintains high occupancy due to its close proximity to the nearby University.
The project appears to be in very good condition. Currently there is no utility RUBS. A water/sewer RUBS could be implemented for additional income.
Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.
Please note that Alabama Gardens consists of 3 addresses:
1. 1135 Alabama St. 25 units
2. 1095 Alabama St. 16 units
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
Type
No. Units
Sq Ft
Rent
Total Rent
Rent/SF
Source: Owner
1BR / 1BA 50 700 35,000 $500 $25,000 $0.71
2BR / 1BA 13 900 11,700 $600 $7,800 $0.67
2BR / 1BA 1 900 900 $650 $650 $0.72
Total / Avg
64
744
47,600
$523
$33,450
$0.70
Apartment Features
Community Features
Spacious Floorplans Conveniently Located to Nearby University
Ceramic Tile Flooring Excellent Frontage
Convenient Laundry Room Convenient Access to Freeway
Large bedrooms with Natural Sunlight Across From Lamar College Ample Closet and Storage Space
Central Air Conditioning Full Size Refrigerator Garbage Disposal Dishwasher Ceiling Fans
Unit Mix September 2014
Total SqFt
UNITS BY TYPE UNITS BY SIZE50
14
700 90050
14
50 ea 1BR / 1BA 14 ea 2BR / 1BAALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
1 2 3 4 5 Totals/Averages Comps 1978 99% 53 986 $615 0.623 Alabama Garden 1135 Alabama Ave Ashley Square TH 2323 Evalon Ave. Laurel Square TH 3720 Laurel $550 0.679 $490 1978 99% 52 952 $600 0.630 0.727 Parkdale Place 4165 Crow Rd. University Place 755 E Florida Ave Parkdale Plaza 4215 Crow Rd. 86% 64 744 $523 $0.70Avg SF Avg Rent P/SF
1978
1968 1988
99% 72 722
1978 99% 72 757
RENT COMPARABLES - September 2014
99% 47 1,300 0.510
0.571 $663
$685
99% 21 1,200
Property Name Year Built Occ #Units
1972
2 5
4 1 3
ALABAMA GARDEN • 1135 Alabama Ave • Beaumont, TX 77705 1 2 3 4 5 Totals/Averages Comps 06/20/12 $2,286,500 65,180 77 $45.81 $31,002 1977 Alabama Garden 1135 Alabama Ave
SALES COMPARABLES (Sorted by Price/Sq. Ft.)
Property Name Date Sold Price Sq. Ft. Units Price/SF Price/Unit Built
$26,923 1975
Dove Landing
2719 Avenue H, Nederland 03/28/12 $700,000 19,710 28 $35.51 $25,000 1984
Normandy Apartments
3800 Normandy Dr., Port Arthur 02/02/11 $3,850,000 138,235 143 $27.85
1924 Avenue H
1924 Avenue H, Nederland, TX 10/29/13 $630,000 7,142 16 $88.21
$31,548 1978
3910 Treadway Apts
3910 Treadway Road, Beaumont 09/20/12 $3,602,500 90,450 112 $39.83 $32,165 1975
Carriage House
1803 Nederland Ave, Nederland 89/21/12 $2,650,000 70,361 84 $37.66
$1,888,000 47,600 64 $39.66 $29,500 $39,375 1972 1972 4 5 2 3 1
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
DIRECTIONS TO PROPERTY:
From Downtown Houston
Take
I-10
East
towards
Beaumont. Merge onto US 287
by way of the Port Arthur exit.
Exit
MLK
Parkway/Lamar
University. Make a left onto MLK
Pkwy. Take the ramp towards
East Lavaca. Make a right onto
Alabama AVe. The property is
on the left.
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
Beaumont, Texas
Beaumont, Texas is located on Interstate 10, just 90 miles east of Houston and 25 miles from the Louisiana border. Beaumont is a city in and county seat of Jefferson County, within the Beaumont–Port Arthur Metropolitan Area. The city's population was 118,548 at the 2011 census. With Port Arthur and Orange, it forms the Golden Triangle, a major industrial area on the Gulf Coast. Beaumont is on Texas' coastal plain, about 30 miles inland from the Gulf of Mexico, and just south of the dense pine forests of East Texas. The city is bordered on the east by the Neches River and to the north by Pine Island Bayou. Home to Lamar University, Beaumont has a long history as one of the first major oil-producing cities in America. Oil was discovered at Spindletop on January 10, 1901, which became the first major oil field and one of the largest in American history. That heritage has shaped Beaumont as it grew from a small rice and lumber town to a major player in the oil industry. The city has a an incredible variety of historical buildings including the 1903 built First Baptist Church, now known as the Tyrrell Historical Library. Other architecture includes Jefferson Theater, Julie Rogers Theater and Edison Plaza soaring at 254 feet. The city boasts about its historic Crockett Street Entertainment District located downtown. The District offers everything from the Spindletop Restaurant to the Dixie Dance Hall, with a number of other dining places, clubs and bars to visit. Beaumont is the city known as Texas with A Little Something Extra. The Cajuns call it Lagniappe, meaning a little something extra, which pretty much describes Beaumont. The city's Bayou roots make it a combination of two colorful cultures; Texas with Bayou influences.
.
The entire Beaumont area was changed on January 10, 1901, when the Lucas well at Spindletop blew in from a depth of 1,020 feet with oil gushing 200 feet into the air. This discovery began an era of prosperity for southeast Texas that influences the economy to this day. The oil boom days of the early 20th century have returned to southeast Texas with more than $12 billion in industrial projects planned, proposed or currently underway. These projects will add more than 15,000 new jobs to the Beaumont Economy.
Beaumont
Beaumont is not only a city with a rich heritage it is also a city which has seen dramatic change in recent years. Much of the economic growth has come from petrochemical, refinery and call center expansions, but commercial retail development and single-family construction have also increased. The city is ideally located on major highways and can be accessed via road, rail, air or water.
The petrochemical industry continues to drive economic growth in southeast Texas. Projects include the $2 billion Golden Pass LNG terminal and the $7 billion expansion of Motiva's Port Arthur refinery. The Motiva Port Arthur Refinery has recently completed an expansion that will allow the facility to process 325,000 extra barrels of crude oil per day. The $7 billion-plus expansion includes the installment of 600 miles of pipe, doubling the facility's processing capacity to the largest in the nation.
Another prominent employer for the area is the federal Bureau of Prisons, which operates the Beaumont Federal Correctional complex in an unincorporated area in Jefferson County, near Beaumont. The correctional facilities employ approximately 5,000 individuals.
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
Demographics
Lat/Lon: 30.0403/-94.0702
ALABAMA GARDEN ● 1135 Alabama St. ● Beaumont, TX 77705
2012 Estimated Population 6,542 16,291 28,430 2017 Projected Population 6,709 16,809 29,355 2010 Census Population 6,467 16,057 28,012 2000 Census Population 5,070 15,887 29,478 Projected Annual Growth 2012 to 2017 0.5% 0.6% 0.7% Historical Annual Growth 2000 to 2012 2.4% 0.2% -0.3% 2012 Median Age 23.5 28.8 31.4 2012 Estimated Households 1,800 5,409 9,612 2017 Projected Households 1,942 5,837 10,365 2010 Census Households 1,734 5,210 9,262 2000 Census Households 1,828 5,593 10,189 Projected Annual Growth 2012 to 2017 1.6% 1.6% 1.6% Historical Annual Growth 2000 to 2012 -0.1% -0.3% -0.5% 2012 Estimated White 25.6% 20.6% 20.0% 2012 Estimated Black or African American 53.2% 61.4% 61.0% 2012 Estimated Asian or Pacific Islander 8.0% 4.1% 3.5% 2012 Estimated American Indian or Native Alaskan 2.5% 1.5% 1.1% 2012 Estimated Other Races 10.8% 12.4% 14.4% 2012 Estimated Hispanic 14.0% 17.4% 20.7% 2012 Estimated Average Household Income $27,326 $33,065 $38,703 2012 Estimated Median Household Income $25,833 $28,019 $30,240 2012 Estimated Per Capita Income $14,220 $14,653 $16,377 2012 Estimated Elementary (Grade Level 0 to 8) 8.5% 9.6% 10.0% 2012 Estimated Some High School (Grade Level 9 to 11) 15.0% 16.0% 17.1% 2012 Estimated High School Graduate 39.5% 37.9% 35.9% 2012 Estimated Some College 28.6% 25.1% 23.7% 2012 Estimated Associates Degree Only 2.7% 3.2% 4.0% 2012 Estimated Bachelors Degree Only 3.5% 5.5% 5.9% 2012 Estimated Graduate Degree 2.1% 2.7% 3.4% 2012 Estimated Total Businesses 107 348 727 2012 Estimated Total Employees 3,272 6,042 11,011 2012 Estimated Employee Population per Business 30.7 17.4 15.2 2012 Estimated Residential Population per Business 61.3 46.9 39.1
SUMMARY PROFILE
2000-2010 Census, 2012 Estimates with 2017 Projections Calculated using Proportional Block Groups
1 Mile
Radius Radius3 Mile Radius5 Mile
Ethnicity - 1 Mile Radius
POPU LA TI ON R A C E A N D ET H N IC IT Y IN C OM E
Average Income Subject - 1 Mile Radius
ED U C A TI ON (A GE 25+) B U SI N ESS H OU SEH OL D S
26%
53%
8%
13%
14%
White Black Asian Other Hispanic86%
14%
Non-Hispanic Hispanic $27,236 $40,283 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Subject BeaumontAssumption
EXCLUSIVELY PRESENTED BY
KET ENTERPRISES INCORPORATED
4295 San Felipe, Suite 355 Houston, TX 77027 Tel: (713)355-4646 Fax: (713)355-4331
www.ketent.com
FOR MORE INFORMATION PLEASE CALL:
PRIMARY CONTACT: HASHIR SALEEM Senior Associate (713) 355-4646 xt 106 hashir@ketent.com
