OFFERING MEMORANDUM 5 Apartment Units Graduate Hospital

Transcription

OFFERING MEMORANDUM
5 Apartment Units
Graduate Hospital Area
2047 Fitzwater Street
Philadelphia, Pennsylvania
The following disclaimer applies to the attached Offering Memorandum (“Memorandum”) and you
are, therefore, advised to read this Disclaimer carefully before reading, accessing or making any other use
of the Offering Memorandum or other information supplied in connection with the Property.
The Memorandum shall not constitute an offer to sell the Property. A sale of the Property shall only
take place upon the execution of an Agreement of Sale that has been signed by Buyer and Seller and all
conditions and contingencies contained in the Agreement of Sale have been satisfied prior to settlement.
Neither Rittenhouse Realty Advisors (“RRA”) nor any other third parties have been authorized to
give any information other than what has been provided in the Memorandum. Notwithstanding the foregoing, RRA does not make any representation as to the completeness or accuracy of the information contained
in the Memorandum or the value or performance of the Property either past, present or future. The information contained in the Memorandum shall not be relied upon as a promise or representation as to any condition, value or performance of the Property. RRA and its owners, members, shareholders, managers, employees, agents and affiliates expressly disclaim any and all liability for any and all representations, either
express or implied, arising from any statements, warranties, representations or information provided in the
Memorandum or from the omission of any such representations, statements, warranties or information from
the Memorandum. It is the sole responsibility of any recipient of the Memorandum to verify the information
contained therein and to conduct the proper due diligence concerning the Property.
Qualified prospective purchasers of the Property shall be afforded an opportunity to conduct inspections of the Property. It is expected that such qualified purchasers shall conduct any and all inspections and
evaluations of the Property deemed necessary by them.
RRA and Seller reserve the right, at their sole discretion, to reject any and all expressions of interest
concerning the Property from third parties, including the termination of any ongoing discussions and/or negotiations. The Memorandum is subject to withdraw, cancellation or modification by RRA or Seller at any
time. Seller shall have no legal obligation to any party that has received or reviewed the Memorandum unless and until a written Agreement of Sale has been fully executed, delivered and approved by Seller and
Seller’s counsel; and all contingencies and/or conditions to Seller’s obligation to settle have been satisfied.
1628 John F. Kennedy Boulevard, Second Floor | Philadelphia, PA
215.454.2852 | info@rittenhouserealty.com
2
Table of Contents
Executive Summary
4
Financial Analysis
5
Rent Roll Summary
6
Competitive Rental Market Survey
7
Financial Overview
9
Property Details
10
Site Plan/Aerial
11
Property Photographs
12
Location Overview & Maps
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1628 John F. Kennedy Boulevard, Second Floor | Philadelphia, PA 19103
3
Executive Summary
Investment Highlights

Excellent Location: Gr aduate Hospital Section of Philadelphia

Turn-Key Operation: No Defer r ed Maintenance

Below Market Rents: Oppor tunity to Incr ease Rents 10% to 15%

Tenants Pay Utilities: Electr ic, Heat and Hot Water Paid by Tenants

Recent Capital Improvements: All Kitchens Renovated within Last 3 Year s
Pricing
Offering Price
$600,000
Number of Units
5
Price per Unit
$120,000
Pro Forma Cap Rate (Less Reserves)
6.2%
Terms of Sale
Offered free and clear of debt. All cash at closing.
Investment Overview
Rittenhouse Realty Advisors (“RRA”) extends qualified investors the opportunity to acquire the fee simple interest
for five apartment units located at 2047 Fitzwater Street in the desirable Graduate Hospital Area of Center City
Philadelphia. All units are one-bedroom with individual gas-fired, forced air furnaces that includes air conditioning.
Rents significantly below market (10% to 15%). Tenants pay electric, heat and hot water. In addition, current ownership has renovated all kitchens within the last three years.
This outstanding opportunity allows a new owner to increase rents 10% to 15% with no capital improvements in
one of the City’s most vibrant young professional neighborhoods.
4
Financial Analysis
(5 Apartment Units)
2015
Pro Forma
INCOME
RENTAL INCOME
Rent
Vacancy
TOTAL RENTAL INCOME
OTHER INCOME
Laundry (Coin-Operated)
Other Income
TOTAL OTHER INCOME
TOTAL INCOME
$55,200
(2,760)
$52,440
$600
$250
$850
Pro Forma Assumptions
Proposed Rent per Rent Schedule ($4,600 x 12 Months)
5% Estimate
$10 per Month per Unit Estimate
$50 per Unit Estimate
$53,290
OPERATING EXPENSES
Fixed Expenses
Real Estate Taxes
Water/Sewer
Electric
Alarm
Insurance
Business Privilege Tax
License & Permits
TOTAL FIXED EXPENSES
$4,770
$1,200
480
400
2,175
80
250
$9,355
Total Assessed Value x Millage ($356,000 x 1.34%)
2013 per Owner
2013 per Owner
2013 per Owner
2013 per Owner
0.15% x Total Income
$50 per Unit per City of Philadelphia
$1,871 per Unit
Variable Expenses
Management Fee
Repairs/Maintenance/Turnover
Admin/Legal/Acct/Misc.
TOTAL VARIABLE EXPENSES
$2,665
2,500
250
$5,415
5% Management Fee
$1,083 per Unit
TOTAL OPERATING EXPENSES
$14,770
NET OPERATING INCOME
$38,520
CAPITAL RESERVES
($1,250)
NET OPERATING INCOME LESS RESERVES
$37,270
$2,954 per Unit
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As of October 28, 2014
Rent Roll Summary
Count
Unit No.
Unit Type
Lease Begin
Lease End
1
1F
1 Bedroom
04/01/14
03/31/15
2
1R
1 Bedroom (Private Yard)
3
2F
1 Bedroom
05/01/14
4
2R
1 Bedroom
10/01/14
5
3
1 Bedroom
Totals
Leased Rent Proposed Rent
$725
$900
$715
$1,000
04/30/15
$750
$900
09/30/15
$750
$900
$685
$900
Monthly
$3,625
$4,600
Annual
$43,500
$55,200
Month to Month
Month to Month
6
Property Address
Total
Units
5
Unit Mix
1 Bedroom/1 Bath
Current
Rent
$685-$725
Utilities
Tenants Pay All
Comments
Central Air
COMPARABLE PROPERTIES
Property Address
Total
Units
Unit Mix
Current
Rent
Utilities
Comments
731 South 22nd Street
2
1 Bedroom/1 Bath
$1,000
Tenants Pay All
Central Air
3
1 Bedroom/1 Bath
1 Bedroom/1 Bath
$850
$850
Tenants Pay All
No Central Air
713 South 23rd Street
3
1 Bedroom/1 Bath
$995
$1,095
$1,100
Tenants Pay All
Central Air
2227 Catharine Street
3
1 Bedroom/1 Bath
1 Bedroom/1 Bath
1 Bedroom/1 Bath
$895
$916
$950
Tenants Pay All
No Central Air
2340 Christian Street
2
1 Bedroom/1 Bath
$900
Tenants Pay All
Central Air
1818 Catharine Street
3
1 Bedroom/1 Bath (Yard)
1 Bedroom/1 Bath (Deck)
$1,200
$1,075
Tenants Pay All
Central Air
2
1 Bedroom/1 Bath
$1,050
Tenants Pay All
Central Air
7
Map Ref.
Property Address
2047 Fitzwater Street; Philadelphia, Pennsylvania
1
731 South 22nd Street; Philadelphia, Pennsylvania
2
3
713 South 23rd Street; Philadelphia, Pennsylvania
4
2227 Catharine Street; Philadelphia, Pennsylvania
5
2340 Christian Street; Philadelphia, Pennsylvania
6
1818 Catharine Street; Philadelphia, Pennsylvania
7
8
Financial Overview
Financial Summary
Offering Price
$600,000
Price per Unit
$120,000
CAP Rate
6.2%
Financing
Down Payment (25%)
$150,000
Loan Amount
$450,000
Interest Rate
4%
Amortization
30 Years
Term
5 Years
Return
Net Cash Before Debt Service
$37,270
Annual Payment
$25,780
Net Cash After Debt Service
$11,490
Debt Coverage Ratio
1.45
Cash-on-Cash Return
7.66%
Above financing terms are offered through Rittenhouse Capital Advisors debt
advisory platform. To discuss bank terms furnished above or to discuss other
programs, contact:
Rittenhouse Capital Advisors
George D. Johnson, Jr.
george@rittenhousecapital.com
(O) 215.989.4443
(M) 267.218.4411
9
Property Details
Property Address
2047 Fitzwater Street; Philadelphia, Pennsylvania 19146
County
Philadelphia
Municipality/Township
City of Philadelphia
School District
School District of Philadelphia
Zoning
RM-1
APN
881575700
Lot Size
0.03 Acres / 1,328 Square Feet
Lot Width/Depth
16 x 83
Year Built / Renovated
1900
No. of Buildings
1
No. of Stories
3
No. of Apartment Units
5
Rentable Square Feet
2,124±
Parking
On Street
Property Construction
Foundation
Poured Concrete
Exterior
Brick; Block
Framing
Wood Joist
Roof
Flat; Asphalt
Utilities
Cold Water
Paid by Owner
Hot Water
Paid by Tenant
Gas
Paid by Tenant
Electric
Paid by Tenant
Mechanical
HVAC
Gas, Forced Air; Central Air Conditioning
Wiring
100 AMP
Fire Protection
Fire Suppression
10
Site Plan/Aerial
11
12
13
14
Location Overview
Southwest Center City is a neighbor hood in South
Philadelphia bordering Center City, Philadelphia. The
neighborhood is bordered on the north by South Street,
on the south by Washington Avenue, on the west by the
Schuylkill River, and by Broad Street on the east. It is an
area adjacent to the Filter Square and Rittenhouse
Square neighborhoods to the North and Point Breeze to
the South. The neighborhood has many nicknames.
Since the 1980s, it has been often referred to as Graduate Hospital, after the medical facility on the nor thern edge of the neighborhood. This name has become
merely historical in nature since the hospital closed in
2007. Despite this, it is still used and is sometimes shortened to G-Ho. The area is also var iously r efer r ed to
as South of South, So-so, Naval Square, or SchuylkillSouthwest.
The neighborhood consists primarily of nineteenth and twentieth-century row homes interspersed with corner stores and a
few larger architectural landmarks. On the eastern half of the neighborhood is the Scottish Rite affordable housing complex
which consists of two multi story apartment buildings that cater mostly to elderly individuals. The area is home to several
community service organizations, many churches, a few retail establishments, and some light industry.
In recent years, G-Ho has experienced growth and gentrification. Hundreds of single family
homes and condominium units have been built or refurbished. As a result of the neighborhood's
proximity to Center City and increasing desirability, a variety of new businesses catering to the
increasingly gentrified population have opened. Restaurants, shops and cafes seem to sprout up
every other week. A recent addition to the area is the popular, top-rated Sidecar Bar & Grill,
which is known for its craft beers and delicious brunch. There are also the lesser known gems,
such as La VA Café, a coffeehouse and BYOB, featuring art-ridden walls and a local flavor,
which is great place to meet new people.
The area is very popular amongst hipsters, young professionals, and young families. This is largely because the local Penn
Graduate Hospital is within the area’s boundaries. Overall, G-Ho is an “everybody knows your name” type environment without losing the charm of Center City. It is a quick walk to public transit, parks and green space, and popular Philadelphia attractions. Bus routes drop off and pick up on South Street, as well as slightly further into the residential district of Graduate
Hospital. The Lombard-South stop on the Broad Street Line provides the most readily accessible subway access. Residents
are big on traveling by foot or on bicycles. The heaviest traffic flow heads west to east along South Street (and east to west
along Lombard), since the nearby South Street Bridge provides easy access to Interstate-76 and Interstate-95.
15
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Kenneth Wellar
Tel: 215.454.2879
ken@rittenhouserealty.com
Corey Lonberger
Tel: 215.454.2878
corey@rittenhouserealty.com
Mark Duszak
Tel: 215.454.2884
mark@rittenhouserealty.com
Luke DeLuca
Tel: 716.510.3715
luke@rittenhouserealty.com
Chris Egan
Tel: 215.454.2913
chris@rittenhouserealty.com
Doug Emrich
Tel: 215.454.2889
doug@rittenhouserealty.com
David Greenhalgh
Tel: 215.454.2887
david@rittenhouserealty.com
Robert Marzullo
Tel: 215.454.2921
robert@rittenhouserealty.com
Steve Miceli
Tel: 215.454.2916
steve@rittenhouserealty.com
Vincent Tagliente
Tel: 215.454.2920
vincent@rittenhouserealty.com
Philadelphia Office
1628 John F. Kennedy Blvd.
Eight Penn Center, Second Floor
Philadelphia, PA 19103
Tel: 215.454.2852
New York Office
200 West 57th Street
Suite 702
New York, NY 10019
Tel: 212.765.7900
Delaware Office
102 Larch Circle
Suite 102
Newport, DE 19804
Tel: 302.994.3907
www.RittenhouseRealty.com | info@rittenhouserealty.com

OFFERING MEMORANDUM 5 Apartment Units Graduate Hospital

Transcription

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