Package - Commercial Realty Resources Co.

Arkansas
Oklahoma
Kansas
Willowbend Apartments 3 0 3 8 S . 1 0 1 s t E . Av e n u e
Tu l s a , O k l a h o m a 7 4 1 2 9
Offering Highlights
Mike Buhl
CRRC-OKC
405.360.5966
buhl@crrc.us
Darla Knight
CRRC-Tulsa
918.557.5966
darla@crrc.us








Premiere location just off Highway 169

Some Floor Plans with unit upgrades
Upside potential through loss-to-lease
132 Units
1973 Construction
Pitched Roofs
Competitively Priced at only $32,197 per unit
Individual HVAC
Great unit mix with One Bedroom, Two Bedroom
Townhome and Two Bedroom/Two Bath Floor
Plans
www.crrc.us
Providing professional apartment brokerage and marketing services for over
31 years
Willowbend Apartments
Table of Contents
Section 1









Disclaimer
Photographs
Neighborhood Map
Submarket Map
Aerial Maps
Property Description
Unit Mix
Interior Photographs
Floor Plans and Site Map
Pages
4
5-8
9
10
11-13
11-12
14-16
13-15
17
16
18-19
17-18
20-21
19-21
Section 2
 Purchase Price and Terms
 Financing
23
24
Section 3
 Operating Data Highlights
 Income & Expense Spreadsheet
 Reconstructed Spreadsheet
26
26-A
26-B
Section 4
 Rent Comps
 Sale Comps
28-34
28-37
38-41
35-38
Section 5
 Tulsa at a Glance
40-42
43
44-45
Section 6
 CRRC Contacts
 Oklahoma Broker Relationship Act
44
47
48
45
2
1
3
Willowbend Apartments
Disclaimer
This package has been prepared to provide summary information to prospective buyers and to establish
an initial and preliminary level of interest in the property described herein. It is not intended to present all
material information regarding the subject property, and is not a substitute for a complete and thorough
due diligence investigation. Commercial Realty Resources has not made any investigation of the actual
property, the tenants, the operating history, financial reports, leases, square footage, age or any other
aspect of the property, including but not limited to the actual number of appliances being conveyed or
any potential environmental problems that may exist and makes no warranty or representation whatsoever concerning these issues.
The information contained in this package has been obtained from sources we believe to be reliable;
however, Commercial Realty Resources and Seller have not conducted any investigation regarding these
matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of
the information provided. Any proformas, projections, opinions, assumptions or estimates used are for
example only and do not necessarily represent the current or future performance of the property.
Commercial Realty Resources and Seller recommend that prospective buyers conduct an in-depth investigation of the physical and financial aspects of the property to determine if the property meets their needs
and expectations. We also recommend that prospective buyers consult with their tax, financial and legal
advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.
Commercial Realty Resources and Seller recommend that prospective buyers consult with qualified professionals regarding the presence of any molds, funguses, or other organisms that may adversely affect
the property and the health of individuals.
The material contained in this document is not to be copied and/or used for any purpose or made available without the express written consent of Commercial Realty Resources.
4
Neighborhood Map
Willowbend Apartments
9
Submarket Map
Willowbend Apartments
10
Aerial Map
11
Aerial Map Neighborhood
12
Offering Description
Willowbend is a 132-unit community that was developed in 1973
and enjoys a premiere location in Tulsa with great access to I-44, the
Broken Arrow Expressway and the Mingo Valley Expressway (Highway
169). This provides easy access to all parts of Tulsa within minutes.
Willowbend consists of 10 two-story apartment buildings with an office/
leasing center.
The property is located in a very desirable area of Tulsa with frontage
along East 31st Street. The neighborhood is bordered by North Tulsa,
Midtown and Broken Arrow. East Tulsa is older established neighborhoods that is primarily a residential and industrial community. With a
manufacturing industry that continues to thrive, East Tulsa also supports
many retail and service sector jobs, including jobs in Tulsa’s primary
hospitality district. Because of its ease of access to all parts of Tulsa, the
neighborhood has a very high renter demand.
Tulsa is home to a highly educated and motivated workforce and probusiness atmosphere, keeping the cost of doing business among the
lowest in the region, making Tulsa one of the most business and people
friendly communities in the country. It’s central location and quality of
life make Tulsa a desirable place to live and work.
The City of Tulsa has consistently been ranked among best cities by
Brookings Institute, Nerdwallet.com, Site Selection Group,
SmartAsset.com, Wallethub.com and has one of the shortest commute
times and lowest cost of doing business in the nation.
Offering Highlights:








Premiere location just off Highway 169

Some Floor Plans with unit upgrades
Upside potential through loss-to-lease
132 Units
1973 Construction
Pitched Roofs
Competitively Priced at only $32,197 per unit
Individual HVAC
Great unit mix with One Bedroom, Two Bedroom Townhome and
Two Bedroom/Two Bath Floor Plans
13
Property Description:
Willowbend is a 132-unit community that was developed in 1973
and enjoys a premiere location in Tulsa with great access to I-44, the
Broken Arrow Expressway and the Mingo Valley Expressway (Highway
169). The property has 10 two-story apartment buildings with an office/
leasing center. It has a great unit mix with one bedroom, two bedroom townhome and 2-bedroom/2-bath floor plans.
The property is located in a very desirable area of Tulsa with frontage
along East 31st Street. This is a popular area of Tulsa that is close to
businesses, shopping and entertainment, which provides the neighborhood with high renter demand.
Number of Units:
132 apartment units
Number of Buildings:
10 two-story apartment buildings with an office/leasing center.
Year Built:
Constructed in 19 73
Apartment Features:
Apartments include Stove, Refrigerator, Dishwasher, Garbage Disposal,
Dining area with floor tile, Large walk-in closets, Ceiling fans, Nice cabinet storage, and Private patio/balcony on each apartment.
Property Amenities:
Sparkling swimming pool, Playground, 2 laundry facilities. Part of local
homeowners association that provides access to 3 parks with
swimming, tennis court and recreation.
Construction:
Style:
Exterior:
Roof:
Parking Areas:
Two -Story Garden Style
Stucco exterior with Siding / Vinyl Siding and Wood Trim
Gable Roofs with Composition Shingles—Roofs are 10+ years old
Asphalt with concrete curbs and walkways
Mechanical System:
Electrical Metering:
HVAC:
Hot Water:
Water:
Individually Metered
Individual central, forced HVAC units
Hot Water is provided by 5 centrally located gas hot water tanks
Provided by Property
Site/Land Area:
5.01 acres (according to courthouse records)
Density:
26.35 units per acre
Current Occupancy:
Averages 90 to 95%
14
Real Estate Taxes:
ID 47340-94-18-31280
Assessed Value (2016): 317,900
Tax Rate per 1,000 : $134.51
Tax Amount : $42,761
Assessment Ratio: 11% of Market Value
Laundry:
Coinmach Laundry Lease ending November 2018
Equipment is on a Smart-card Payment System
Completed Capital Improvements:
Notes:
Cost to Date
Landscape- Hardscape, soft-scape, flagpole
Completed 02/2008
$39,250
Replaced Playground Equipment
Completed 03/2011
$7,154
Replaced toilets with low-flush units (1.28 gal)
Completed 06/2012
$21,700
Electrical Upgrades- Pigtail aluminum wire, GFI
outlets in baths and kitchens
Completed 01/2013
$64,165
Asphalt replacement, seal, restripe of driveway
and parking areas
Completed 06/2015
$32,186
Ongoing Capital Improvement Projects
Replaced 26 stairways with metal/concrete
Started 02/2008- 8
wooden stairways
remain
76% complete
$61,100
Rebuild/Refinish kitchen and bathroom cabinets
Started 04/2010
64% complete
$108,000
Replaced original Central Air Conditioning
Condensers / compressors
Started 01/2006
75% complete
$83,254
Paint exterior of buildings (color change)
Started 05/2015
90% complete
$38,390
Totals
$455,199
15
Unit Mix / Rents
No.
Type
Bdrm / Bth
12
A1
1 Bed / 1 Bath
Sq.Ft.
549
Total Sq.Ft.
6,588
Rent Roll
470.00
Rent/Sq.Ft.
0.86
5,640
67,680
64
A2
1 Bed / 1 Bath
629
40,256
483.00
0.77
30,912
370,944
32
B1
2 Bed / 1.5 Bath
833
26,656
605.00
0.73
19,360
232,320
24
B2
2 Bed / 2 Bath
906
21,744
637.00
0.70
15,288
183,456
132
722
95,244
Gross/Mo.
Gross/Yr.
539.39
0.75
71,200
854,400
Distribution Ratio
Distribution Ratio
1 Bed/1 Bath
30%
2 Bed/1.5 Bath
18%
2 Bed/2 Bath
24%
30%
40%
58%
16
Apartment Interiors
www.crrc.us
17
Apartment Interiors
www.crrc.us
18
Floor Plans
19
Floor Plans
20
Site Map
21
2
22
Purchase Price & Terms
Purchase Price:
Terms of Sale:
Price Per Apartment Unit:
Price Per Net Rentable Sq. Ft.
$4,250,000
Cash
Buyer to Obtain New Financing
$32,197
$44.62
Cap Rate:
(Based on Stabilized with no LTL)
8.31
23
Existing Financing
Lender:
NA
NA
Original Amount/Date:
Current Balance/Date:
NA
Interest Rate:
NA
Interest Only Period:
NA
Payment:
NA
Amortization:
NA
Maturity Date:
NA
Buyer’s Cost of Assumption:
NA
24
3
25
Operating Data Highlights
Income
Income has trended upward 6.47% since 2014. Pro forma
Income is based on the July 2016 Rent Roll and the actual Trailing
12 for July 2016, trending forward at 7.93%.
Other Income is based on actual for 2015.
Expenses
Real Estate taxes are increased to Purchase Price
Utilities are based on Actual 2015
Management fee is based upon 4%
Payroll is based on $1,000 per unit per year
Replacement Reserves are included at $250 per unit per year
Total Expenses are calculated at $4,073 per unit per year
Mortgage and Debt Service
Buyer to obtain new financing.
Market Rent versus Rent Roll
The current average rental rate is $539.39 per month and $0.75
per square foot. See Spreadsheet
Market comps indicate that rental rents at Willowbend are in the
middle range with some of the competition being higher and
some being lower. The advantage of Willowbend to its
competitors is it’s high visibility location.
26
Annual Property Operating Data
Project:
Willowbend
Price:
$
4,250,000
Offering Cap Rate:
Location:
Number of Units:
Net Rentable S.F.
3038 S. 101st E. Avenue
132
95,244
Price Per Unit:
Price Per Square Foot:
Mortgage Balance:
$
$
$
32,197
44.62
3,400,000
Cash-On-Cash:
Offering Cap Rate with No LTL:
Cash-On-Cash with No LTL:
Equity Requirement:
$
850,000
Avg. Unit Size:
No.
722
Sq.Ft.
Total Sq.Ft.
Rent Roll
80%
7.44%
12.17%
8.31%
16.52%
20%
Type
Bdrm / Bth
Rent/Sq.Ft.
12
A1
1 Bed / 1 Bath
549
6,588
470.00
0.86
Gross/Mo.
5,640
67,680
64
A2
1 Bed / 1 Bath
629
40,256
483.00
0.77
30,912
370,944
32
B1
2 Bed / 1.5 Bath
833
26,656
605.00
0.73
19,360
232,320
24
B2
2 Bed / 2 Bath
906
21,744
637.00
0.70
15,288
183,456
132
722
2014
-
95,244
2015
539.39
July 2016
Trailing 12
-
0.75
-
682,046
18,592
33,083
54,638
788,359
705,694
15,097
15,378
55,033
791,202
R E Taxes
Insurance
Gas
Electricity
-
40,576
53,954
19,766
20,421
43,200
50,237
18,138
20,070
44,194
45,968
15,393
18,627
62,883
49,500
18,138
20,070
476
375
137
152
Water / Sewer / Trash
Association Dues
Management Fee
Payroll
Repairs / Maintenance
Security
Pest Control
Landscaping
Advertising
Administration
Replacement Reserves
Total Operating Expenses
Per Unit
-
74,690
8,112
32,851
132,794
72,357
3,250
5,480
14,597
11,777
15,015
505,640
3,831
74,443
8,094
34,639
134,991
69,224
4,160
5,787
14,601
9,484
18,752
505,820
3,832
81,515
8,103
35,477
111,319
67,072
6,610
6,487
17,591
8,017
21,734
488,107
3,698
74,443
8,100
34,156
132,000
52,800
4,000
6,000
14,500
10,000
18,000
33,000
537,590
564
61
259
1,000
400
30
45
110
76
136
250
Net Operating Income
Capital
-
237,485
-
282,539
-
303,095
Debt Service
Cash Flow
-
237,485
282,539
1.0%
854,400
New Financing
Per Unit
6,473
317
6,156
431
62
5,664
141
251
414
6,469
642,762
15,221
33,010
52,132
743,125
7.0%
854,400
41,796
812,604
56,882
8,126
747,596
18,592
33,083
54,638
853,909
-
71,200
Proforma
INCOME
Market Rents
(Loss-to-Lease)
Gross Potential
Less Vacancy
Less Model Units
Less Employee Units
Less Concessions
Less Other Losses
Effective Rental Income
Laundry
Other Income
Utility Reimbursements
Gross Operating Income
Gross/Yr.
Original Bal.
Current Bal.
Maturity
Amortization
Interest Rate
Constant
Debt Service
Debt Coverage Ratio
Sep-16 $
Sep-16 $
$
3,400,000
3,400,000
10
30
4.75%
6.260%
212,832
1.49
EXPENSES
Real Estate Tax Information:
Account: 47340-94-18-31280
-
2016
Assessed Value:
Tax Amount:
4.0%
4,073
316,318
212,832
103,486
303,095
$
Rent Roll as of 7/31/2016 annualized is $769,740
317,900 Rate/$1000:
42,761 Tax Dist:
2,396
1,612
784
134.51
T 1A
Value:
Per Unit:
$
2,890,000.00
$ 21,893.94
4
27
R ENT C OMPS
In order to estimate market rents for Willowbend, five apartment communities were selected as most
competitive. Each property has been chosen due to its similarity with regard to quality, location, age,
or amenities. While each property may not be directly comparable in all aspects, collectively they
represent the rental market for Willowbend. Rental Rates are based on market rates only and do not
include any concessions or specials.
Windsong Apartments
3131 S. Mingo Road, Tulsa 74146
202-units / 1965 Construction
Heatherstone Apartments
9733 East 33rd Street, Tulsa 74146
252-units / 1973 Construction / Operates as All Bills Paid
Beaumont Cove Apartments
3147 South 108th East Ave, Tulsa 74146
136-units / 1974 Construction
Boca Vista Apartments
10851 East 33rd Street, Tulsa 74146
121-units / 1974 Construction
Sugar Plum Apartments
10149 East 32nd Street, Tulsa 74146
112-units / 1972 Construction
28
Rent Comps at a Glance
Windsong Apartments
3131 S. Mingo Road, Tulsa 74146
Floor Plans & Pricing
Beds
Bath
Sq. Ft.
Rent
Rent Per Sq. Ft.
1
1
700
$520
$0.74
2
2
900
$599
$0.67
29
Heatherstone Apartments
9733 East 33rd Street, Tulsa 74146
Operates as All Bills Paid
Floor Plans & Pricing
Beds
Bath
Sq. Ft.
Rent
Rent Per Sq. Ft.
1
1
577
$575
$1.00
1
1
639
$585
$0.92
2
1
792
$720
$0.91
2
2
879
$755
$0.86
30
Beaumont Cove Apartments
3147 South 108th East Ave, Tulsa 74146
Floor Plans & Pricing
Beds
Bath
Sq. Ft.
Rent
Rent Per Sq. Ft.
1
1
700
$520
$0.74
2
2
900
$599
$0.67
31
Boca Vista Apartments
10851 East 33rd Street, Tulsa 74146
Floor Plans & Pricing
Beds
Bath
Sq. Ft.
Rent
Rent Per Sq. Ft.
1
1
669
$625
$0.93
2
2
1093
$875
$0.80
32
Sugar Plum Apartments
10149 East 32nd Street, Tulsa 74146
Floor Plans & Pricing
Beds
Bath
Sq. Ft.
Rent
Rent Per Sq. Ft.
2
1.5
960
$560
$0.58
2
1.5
1000
$610
$0.61
3
2
1150
$760
$0.66
33
Rent Comp Map
34
Sold Comparison
Property Address: 6609 S. Lewis, Tulsa
Size and Age: 107-units, Built in 1965
Price: $4,000,000 Price Per Unit: $37,383
Closing Date: 05 / 2016
Total Square Footage: 68,977
Southern Hills Villa
Property Address: 3200 S. Hudson, Tulsa
Size and Age: 134-units, Built in 1970
Price: $5,092,000 Price Per Unit: $38,000
Closing Date: 05 / 2016
Total Square Footage: 112,331
City Gardens
Property Address: 139 N. Garnett, Tulsa
Size and Age: 259-units, Built in 1973
Price: $6,731,000 Price Per Unit: $25,988
Closing Date: 02 / 2016
Total Square Footage: 208,713
Pickwick Arms
Property Address: 5115 E. 47th Place, Tulsa
Size and Age: 57-units, Built in 1967
Price: $1,650,000 Price Per Unit: $28,947
Closing Date: 09 / 2015
Total Square Footage: 48,758
Old South
35
Sold Comparison
Property Address: 10149 E. 32nd Street, Tulsa
Size and Age: 112-units, Built in 1971
Price: $3,800,000 Price Per Unit: $33,928
Closing Date: 07 / 2015
Total Square Footage: 120,443
Sugar Plum
Property Address: 1054 E. 57th Place, Tulsa
Size and Age: 243-units, Built in 1965
Price: $6,500,000 Price Per Unit: $26,748
Closing Date: 04 / 2015
Total Square Footage: 173,425
Waterstone
Property Address: 10710 E. 41st Street South, Tulsa
Size and Age: 320-units, Built in 1980
Price: $10,100,000 Price Per Unit: $31,562
Closing Date: 04 / 2015
Total Square Footage: 237,033
Silvercreek
36
Sale Comp Summary
Price/Unit
Overall Price
No. Unit
Year
Built
Southern Hills Villa
$37,383
$4,000,000
107
1965
City Gardens
$38,000
$5,092,000
134
1970
Pickwick Arms
$25,988
$6,731,000
259
1973
Old South
$28,947
$1,650,000
57
1967
Sugar Plum
$33,928
$3,800,000
112
1971
Waterstone
$26,748
$6,500,000
243
1965
Silvercreek
$31,562
$10,100,000
320
1980
$30,741
$37,873,000
1,232
$32,197
$4,250,000
132
Property
Average
Willowbend
1973
Average
Price per Unit
$40,000
$35,000
$30,000
$25,000
$32,197 $31,562 $26,748 $33,928 $28,947 $5,000
$25,988 $10,000
$38,000 $15,000
$37,383 $20,000
$‐
37
Sale Comp Map
38
5
39
Click below to view Tulsa at a Glance
https://www.tulsachamber.com/
40
Tulsa at a Glance
41
Tulsa at a Glance
42
6
43
Mike Buhl
CRRC Oklahoma City
611 24th Avenue SW, Suite 100
Norman, OK 73069
405-360-5966
buhl@crrc.us
Darla Knight
CRRC Tulsa
4137 S. Harvard, Suite E
Tulsa, OK 74135
918-557-5966
darla@crrc.us
44
OKLAHOMA REAL ESTATE COMMISSION
What You Need to Know About Broker Services
A real estate broker may work with one or both parties to a real estate transaction. The Oklahoma Broker
Relationships Law (Title 59, Oklahoma Statutes, §858-351 – 858-363) allows a real estate firm to provide brokerage
services to both parties to the transaction. This could occur when a firm has contracted with a seller to sell their property
and a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer on
the property, the firm must now provide a written notice to both the buyer and seller that the firm is now providing
brokerage services to both parties to the transaction.
Oklahoma real estate brokers have mandatory duties and responsibilities to all parties in a real estate
transaction. These duties and responsibilities shall be described and disclosed in writing prior to signing a contract to
sell, purchase, lease, option or exchange real estate. These duties and responsibilities are to:

Treat all parties with honesty and exercise reasonable skill and care.

Receive all written offers and counteroffers, reduce offers or counteroffers to a written form upon request of
any party to a transaction and present timely all written offers and counteroffers (unless specifically waived in
writing by a party).

Timely account for all money and property received by the broker.

Disclose information pertaining to the property as required by the Residential Property Condition Disclosure
Act.

Comply with all requirements of The Oklahoma Real Estate License Code and all applicable statutes and
rules.

Keep confidential information received from a party or prospective party confidential unless written consent is
granted by the party, the disclosure is required by law, or the information is public or becomes public as the
results of actions from a source other than the broker. Confidential information includes:
o That a party is willing to pay more or accept less than what is being offered
o That a party or prospective party is willing to agree to financing terms different from those offered
o The motivating factors of the party or prospective party purchasing, selling, leasing, optioning or
exchanging the property
o Any information specifically designated as confidential by the party unless such information is public.
A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerage
services. These duties and responsibilities shall also be described and disclosed in writing prior to signing a contract to
sell, purchase, lease, option and exchange real estate. These duties are to:

Inform the party in writing when an offers is made that the party will be expected to pay certain costs,
brokerage services costs and approximate amount of the costs.

Keep the party informed regarding the transaction.
If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker
shall provide written disclosure to the party for whom the broker is providing services. The disclosure shall include
a description of those steps in the transaction that the broker will not provide and state that the broker assisting the other
party in the transaction is not required to provide assistance with these steps in any manner.
Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by the
broker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract to
purchase, option or exchange real estate.
Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerage
services to a landlord under a property management agreement, the services provided to the tenant by the broker shall
not be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to in
writing; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care.
For more information, visit www.orec.ok.gov
This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission.
OREC BROKER SERVICES INFORMATION (11-2013)