Red Apple Apartments

Transcription

JACKSON, MS
BROKER OPINION OF VALUE
Prepared For:
Minda Johnstone
Chief Underwriter / Vice-President
Partners Capital Solutions, Inc.
Submitted 3/19/2014
JACKSON, MS
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of M&M, 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.
TABLE OF CONTENTS
Section 1
PRICING AND FINANCIAL ANALYSIS
Section 2
PROPERTY DESCRIPTION
Section 3
RECENT SALES
Section 4
RENT COMPARABLES
Section 5
DEMOGRAPHIC ANALYSIS
Section 6
MARKETING PLAN
Section 7
THE MARCUS & MILLICHAP ADVANTAGE
JACKSON, MS
JACKSON, MS
EXECUTIVE SUMMARY
Below is an itemized list of projected renovation costs projected by the broker based on broker's experience with similiar projects.
Current Deferred Capital Items
Item
Unit Cost Quantity
Parking Lot Patch and Repair
Roof Replacement
Landscaping
Rotton Eve Replacement
Gutter Replacement
Rotton Stairway Stringer Repair (life/saftety)
Handicapp Accessible
Structural Evaluation & Repairs
Electrical Repairs
Exterior Seal Penetrations
Exterior Siding Repairs
Drainage / Erosion
Retaining Wall Repairs
Exterior Painting
Vacant Unit Turns
Total Exterior Renovations
$100,000
$15,000
$50,000
$2,500
$1,500
$1,280
$600
$240,000
$10,000
$2,160
$31,000
$10,000
$3,000
$27,000
$6,600
1
9
1
12
12
10
1
1
1
1
1
1
1
1
30
Total
$100,000
$135,000
$50,000
$30,000
$18,000
$12,800
$600
$240,000
$10,000
$2,160
$31,000
$10,000
$3,000
$27,000
$198,000
$867,560
Broker estimates are higher than the capital items which were furnished to broker. The major difference is on the cost to repair the
parking lot and roofs. Below is a valuation which details both the future and current "as-is" value.
Proforma NOI
Capitalization Rate
Future Value
Future Value Per Unit
Less Renovation Costs
Less Developer Profit @ 20%
Equals "As-Is" Value
"As-Is" Value Per Unit
THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS 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, expressed 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 Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment
Services of Texas, Inc. © 2014 Marcus & Millichap
$279,803
8.25%
$3,391,552
$23,552
$867,560
$678,310
$1,845,681
$12,817
1
JACKSON, MS
UNIT MIX
No. of
Units
Unit
Type
Approx.
Square Feet
Current
Rents
Rent/
SF
Monthly
Income
Pro Forma
Rents
Rent/
SF
Monthly
Income
32
48
1 Bdr 1 Bath
500
$475
$0.95
$15,200
$475
$0.95
$15,200
1 Bdr 1 Bath
550
$475
$0.86
$22,800
$475
$0.86
$22,800
24
2 Bdr 1 Bath
750
$550
$0.73
$13,200
$550
$0.73
$13,200
16
2 Bdr 1 Bath
880
$550
$0.63
$8,800
$550
$0.63
$8,800
24
2 Bdr 1 Bath
900
$575
$0.64
$13,800
$575
$0.64
$13,800
144
TOTAL
96,080
$73,800
Unit Mix
$73,800
Unit Rent & Rent/SF
$600
$1.00
$0.90
$500
$0.80
$0.70
$400
2B1B: 44%
$0.60
1B1B: 56%
$300
$0.50
$0.40
$200
$0.30
$0.20
$100
$0.10
$0
$0.00
1B1B
2B1B
1B1B
2B1B
2B1B
2
JACKSON, MS
INCOME & EXPENSES
Total Number of Units:
Total Rentable Area:
144
96,080
SF
Income
Current
Per Unit
Pro Forma
Per Unit
GROSS POTENTIAL RENT
$885,600
$6,150
$885,600
$6,150
$124,526
$865
Total Other Income
GROSS POTENTIAL INCOME
$885,600
$6,150
$1,010,126
$7,015
26.6% / $235,714
$1,637
10.0% / $88,560
$615
2.6% / $23,252
$161
3.0% / $26,568
$185
$626,634
$4,352
$894,998
$6,215
Real Estate Taxes
$34,446
$239
$34,446
$239
Insurance
$73,640
$511
$73,640
$511
$169,669
$1,178
$169,669
$1,178
$30,240
$210
$450
Vacancy/Collection Allowance (GPR)
Concessions (GPR)
EFFECTIVE GROSS INCOME
Expenses
Utilities
Contract Services
Repairs & Maintenance
$91,553
$636
$64,800
$5,000
$35
$22,211
$154
$129,600
$900
6.8% / $42,528
$295
4.0% / $35,800
$249
$46,180
$321
$36,000
$250
$36,000
$250
$615,195
$4,272
Marketing & Promotion
On-Site Payroll
Management Fee
General & Administrative
Reserves & Replacements
TOTAL EXPENSES
Expenses per SF
% of EGI
NET OPERATING INCOME
$480,227
$3,335
$5.00
$6.40
76.6%
68.7%
$146,407
$1,017
$279,803
$1,943
3
JACKSON, MS
PRICING (A) - CURRENT
List Price
Price
Down Payment
$1,845,681
20% / $369,136
First Trust Deed/Mortgage
$1,476,545
Interest Rate/Amortization
4.9% / 30 Yrs.
$146,407
Cash Flow Analysis
Debt Service
Debt Coverage Ratio
($94,037)
1.56
Net Cash Flow After Debt Service
$52,370
Return %
14.19%
Principal Reduction
$22,180
Total Return
$74,550
Total Return %
20.20%
Value Indicators
CAP Rate
GRM
7.93%
2.08
Price/Unit
$12,817
Price/SF
$19.21
4
JACKSON, MS
PRICING (B) - PRO FORMA
List Price
Price
Down Payment
$3,391,352
20% / $678,270
First Trust Deed/Mortgage
$2,713,082
Interest Rate/Amortization
4.91% / 30 Yrs.
$279,803
Cash Flow Analysis
Debt Service
Debt Coverage Ratio
($172,987)
1.62
$106,817
Return %
15.75%
Principal Reduction
$40,682
Total Return
Total Return %
$147,498
21.75%
Value Indicators
CAP Rate
GRM
8.25%
3.83
Price/Unit
$23,551
Price/SF
$35.30
5
JACKSON, MS
FINANCIAL OVERVIEW
Location
Annualized Operating Data
2315 McFadden Road
Income
Jackson, MS 39204
Price
$1,845,681
Down Payment
Number of Units
Price/Unit
20% / $369,136
144
$12,817
Current
Pro Forma
All Units at Current Market Rent
$885,600
$885,600
Gross Potential Rent
$885,600
$885,600
$885,600
$1,010,126
29.2% / $258,966
13.0% / $115,128
$626,634
$894,998
Other Income
$124,526
Gross Potential Income
Less: Vacancy/Deductions (GPR)
Rentable Square Feet
96,080
Effective Gross Income
Price/SF
$19.21
Less: Expenses
$480,227
$615,195
CAP Rate- Current
7.93%
CAP Rate- Pro Forma
8.25%
Net Operating Income
Net Cash Flow Before Debt Service
$146,407
$146,407
$279,803
$279,803
$94,037
$172,987
GRM- Current
2.08
GRM- Pro Forma
3.83
Year Built
1988
Lot Size
5.07 acres
Debt Service
Debt Coverage Ratio
1.56
1.62
14.19% / $52,370
15.75% / $106,817
Principal Reduction
Total Return
$22,180
$40,682
20.20% / $74,550
21.75% / $147,498
$34,446
$34,446
$73,640
$169,669
$73,640
$169,669
$30,240
$64,800
$5,000
$129,600
$35,800
$36,000
$36,000
$615,195
$4,272
$6.40
68.74%
Financing
FIRST TRUST DEED
Loan Amount
$1,476,545
Interest Rate
4.9%
Amortization
30 Years
Loan information is time sensitive and subject to
change. Contact your local Marcus & Millichap
Capital Corporation representative.
Expenses
Real Estate Taxes
Insurance
Utilities
Contract Services
Repairs & Maintenance
Marketing & Promotion
On-Site Payroll
Management Fee
General & Administrative
Reserves & Replacements
Total Expenses
Expenses/unit
Expenses/SF
% of EGI
$91,553
$22,211
$42,528
$46,180
$480,227
$3,335
$5.00
76.64%
Scheduled Income
No. of
Units
Unit
Type
Approx.
Square Feet
Current
Rents
Rent/
SF
Monthly
Income
Pro Forma
Rents
Rent/
SF
Monthly
Income
32
48
1 Bdr 1 Bath
500
$475
$0.95
$15,200
$475
$0.95
$15,200
1 Bdr 1 Bath
550
$475
$0.86
$22,800
$475
$0.86
$22,800
24
2 Bdr 1 Bath
750
$550
$0.73
$13,200
$550
$0.73
$13,200
16
2 Bdr 1 Bath
880
$550
$0.63
$8,800
$550
$0.63
$8,800
24
144
2 Bdr 1 Bath
Total/Wtd. Avg.
900
96,080
$575
$0.64
$13,800
$73,800
$575
$0.64
$13,800
$73,800
6
JACKSON, MS
JACKSON, MS
PROPERTY SUMMARY
The Offering
Property
Property Address
2315 McFadden Road
Jackson, MS 39204
Assessor's Parcel Number
0633-0001-004
Zoning
N/A
Site Description
Number of Units
144
Number of Buildings
12
Number of Stories
2
Year Built
1988
Rentable Square Feet
96,080
Lot Size
5.07 acres
Density
28 units per acre
Parking
250 spaces
Parking Ratio
1.74 spaces per unit
Landscaping
Small shrubs and trees
Topography
Flat with some sloping
Utilities
Water
Paid by Owner
Phone
N/A
Electric
Paid by Tenant
Gas
N/A
Construction
Foundation
Slab
Framing
Wood
Exterior
Brick with siding
Parking Surface
Asphalt
Roof
Pitched with asphalt shingles
Mechanical
HVAC
Central
Wiring
Copper
Fire Protection
Smoke detectors and fire extinguishers
8
JACKSON, MS
PROPERTY PHOTOS
9
JACKSON, MS
PROPERTY PHOTOS
10
JACKSON, MS
PROPERTY PHOTOS
11
JACKSON, MS
PROPERTY PHOTOS
12
JACKSON, MS
PROPERTY PHOTOS
13
JACKSON, MS
PROPERTY PHOTOS
14
JACKSON, MS
PROPERTY PHOTOS
15
JACKSON, MS
PROPERTY PHOTOS
16
JACKSON, MS
AREA MAPS
Local Map
Regional Map
17
JACKSON, MS
AERIAL PHOTO
18
RECENT SALES
JACKSON, MS
RECENT SALES
JACKSON, MS
RECENT SALES MAP
1)
2)
3)
Park at Autumn Ridge
Westwood
Timber Ridge
20
RECENT SALES
JACKSON, MS
CAP RATE AND GRM
Average Cap Rate
12.00
11.50
11.00
10.50
10.00
9.50
9.00
8.50
8.00
7.50
7.00
6.50
6.00
5.50
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Subject
Park
at
Autumn
Ridge
Westwood
Timber
Ridge
21
RECENT SALES
JACKSON, MS
PRICE PER SF AND PRICE PER UNIT
Average Price per Square Foot
48.00
44.00
40.00
36.00
32.00
28.00
24.00
20.00
16.00
12.00
8.00
4.00
0.00
Subject
Park
at
Autumn
Ridge
Westwood
Timber
Ridge
Westwood
Timber
Ridge
Average Price per Unit
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Subject
Park
at
Autumn
Ridge
22
RECENT SALES
JACKSON, MS
RECENT SALES
2315 McFadden Road
Jackson, MS 39204
Subject Property
No. of Units:
144
Units
Unit Type
Year Built:
1988
32
1 Bdr 1 Bath
Sale Price:
$1,845,681
48
1 Bdr 1 Bath
Price/Unit:
$12,817
24
2 Bdr 1 Bath
Price/SF:
$19.21
16
2 Bdr 1 Bath
CAP Rate:
7.93%
24
2 Bdr 1 Bath
GRM:
2.08
Park at Autumn Ridge
1
850 Lindbergh Dr
Jackson, MS 39209
Close of Escrow:
6/28/2012
No. of Units:
160
Units
Year Built:
1975
48
1 Bdr 1 Bath
Unit Type
Sale Price:
$2,900,000
72
2 Bdr 2 Bath
Price/Unit:
$18,125
40
3 Bdr 2 Bath
Price/SF:
$15.51
CAP Rate:
8.60%
GRM:
N/A
Westwood
2
3150 Robinson Road
Jackson, MS 39209
Close of Escrow:
9/29/2009
No. of Units:
96
Units
Year Built:
1970
32
1 Bdr 1 Bath
Sale Price:
$1,300,000
8
2 Bdr 1.5 Bath
Price/Unit:
$13,542
23
2 Bdr 2 Bath
Price/SF:
$15.03
23
3 Bdr 1.5 Bath
CAP Rate:
11.61%
8
3 Bdr 2 Bath
GRM:
N/A
Unit Type
23
RECENT SALES
JACKSON, MS
RECENT SALES
Timber Ridge
3
3875 S I 55
Jackson, MS 39212
Close of Escrow:
9/8/2010
No. of Units:
140
Units
Year Built:
1974
65
1 Bdr 1 Bath
Sale Price:
$3,750,000
75
2 Bdr 1.5 Bath
Price/Unit:
$26,786
Price/SF:
$46.39
CAP Rate:
9.00%
GRM:
N/A
Unit Type
24
RENT COMPARABLES
JACKSON, MS
RENT COMPARABLES
JACKSON, MS
RENT COMPARABLES MAP
1)
2)
3)
4)
5)
Belvedere Cove Apartments
Summer Park
Woodridge
Briarcliff South
Timber Ridge Townhomes
26
RENT COMPARABLES
JACKSON, MS
OCCUPANCY AND AVERAGE RENTS
Average Occupancy
100
90
80
70
60
50
40
30
20
10
0
Subject
Belvedere
Cove
Apartments
Summer
Park
Woodridge
Briarcliff
South
Timber
Ridge
Townhomes
Belvedere
Cove
Apartments
Summer
Park
Woodridge
Briarcliff
South
Timber
Ridge
Townhomes
Average Rents - 1 Bedroom
600
560
520
480
440
400
360
320
280
240
200
160
120
80
40
0
Subject
27
RENT COMPARABLES
JACKSON, MS
AVERAGE RENTS
Average Rents - 2 and 3 Bedrooms
800
750
700
650
600
550
500
450
400
350
300
250
200
150
100
50
0
Subject
Belvedere
Cove
Apartments
Summer
Park
2 Bdr
Woodridge
Briarcliff
South
Timber
Ridge
Townhomes
3 Bdr
28
RENT COMPARABLES
JACKSON, MS
RENT COMPARABLES
2315 McFadden Road
Jackson, MS 39204
Unit Type
Subject Property
No. of Units
Occupancy:
Year Built:
Units
SF
Rent
Rent/SF
1 Bdr 1 Bath
32
500
$475
$0.95
1 Bdr 1 Bath
48
550
$475
$0.86
2 Bdr 1 Bath
24
750
$550
$0.73
2 Bdr 1 Bath
16
880
$550
$0.63
2 Bdr 1 Bath
24
900
$575
$0.64
Total/Wtd. Avg.
144
96,080
$525
$0.77
144
1988
Belvedere Cove Apartments
1
2625 Belvedere Drive
Jackson, MS 39212
No. of Units
Occupancy:
Year Built:
136
92%
1960
Unit Type
1 Bdr 1 Bath
Units
72
SF
Rent
650
$480 - $520
Rent/SF
$0.77
2 Bdr 1 Bath
2 Bdr 1.5 Bath
40
849
$585 - $600
$0.70
12
1,021
$600 - $640
$0.61
3 Bdr 1.5 Bath
4
1,122
$725
$0.65
3 Bdr 2 Bath
8
1,395
$725 - $780
$0.54
Total/ Avg.
136
90,087
$637
$0.65
896
Rent
$495
Rent/SF
$0.55
Summer Park
2
2010 Chadwick Drive
Jackson, MS 39204
No. of Units
Occupancy:
Year Built:
216
100%
2000
Unit Type
1 Bdr 1 Bath
Units
32
SF
2 Bdr 2 Bath
112
1,098
$590
$0.54
3 Bdr 2 Bath
72
1,275
$650
$0.51
Total/Wtd. Avg.
216
243,448
$578
$0.53
Comments
Affordable
29
RENT COMPARABLES
JACKSON, MS
RENT COMPARABLES
Woodridge
3
1533 Raymond Road
Jackson, MS 39204
No. of Units
Occupancy:
Year Built/Renovated:
192
93%
1986
Unit Type
1 Bdr 1 Bath
Units
88
800
2 Bdr 1 Bath
SF
Rent
$577
Rent/SF
$0.72
72
1,135
$692
$0.61
2 Bdr 2 Bath
32
1,135
$735
$0.65
Total/Wtd. Avg.
192
175,104
$668
$0.66
SF
Briarcliff South
4
3630 Rainey Road
Jackson, MS 39212
No. of Units
Occupancy:
104
98%
1970
Unit Type
1 Bdr 1 Bath
Units
24
554
Rent
$446
Rent/SF
$0.81
2 Bdr 1 Bath
72
664
$469
$0.71
3 Bdr 1 Bath
8
816
$550
$0.67
67,632
$488
$0.72
SF
Total/Wtd. Avg.
104
Timber Ridge Townhomes
5
3875 S I-55
Jackson, MS 39212
Unit Type
1 Bdr 1 Bath
No. of Units
Occupancy:
140
96%
1974
Units
65
700
Rent
$456
Rent/SF
$0.65
2 Bdr 1.5 Bath
75
900
$523
$0.58
Total/Wtd. Avg.
140
80,821
$489
$0.61
Comments
Market rate.
30
JACKSON, MS
JACKSON, MS
DEMOGRAPHIC REPORT
2000 Population
2010 Population
2013 Population
2018 Population
1 Mile
11,934
12,118
12,419
12,130
3 Miles
56,188
55,725
57,334
56,844
5 Miles
107,586
99,999
102,825
101,403
2000 Households
2010 Households
2013 Households
2018 Households
4,405
3,940
4,049
3,982
20,119
18,642
19,263
19,188
38,361
35,341
36,507
36,369
3.08
2.84
2.70
1,203
23,769
73,563
$0
$54,057
$53,741
2000 Owner Occupied Housing Units
2000 Renter Occupied Housing Units
2000 Vacant
55.34%
40.40%
7.53%
47.82%
39.94%
11.82%
48.52%
39.15%
12.17%
2013 Vacant
52.46%
47.54%
14.78%
43.18%
56.82%
14.67%
48.42%
51.58%
13.98%
2018 Vacant
51.49%
48.51%
15.80%
42.02%
57.98%
14.90%
47.97%
52.03%
13.96%
25.5%
15.6%
16.4%
16.6%
12.6%
7.4%
2.9%
0.6%
1.2%
0.4%
0.8%
28.6%
18.6%
15.4%
14.6%
12.6%
5.4%
2.3%
1.0%
0.6%
0.3%
0.7%
28.0%
17.1%
14.2%
14.4%
13.6%
6.5%
3.1%
1.4%
0.8%
0.4%
0.7%
2013 Median Household Income
2013 Per Capita Income
$29,960
$13,953
$26,629
$13,195
$28,056
$14,887
2013 Average Household Income
$42,588
$38,057
$40,854
2013 Average Household Size
2013 Daytime Population
2000 Median Housing Value
$ 0 - $14,999
$ 15,000 - $24,999
$ 25,000 - $34,999
$ 35,000 - $49,999
$ 50,000 - $74,999
$ 75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 +
Demographic data © 2012 by Experian.
32
JACKSON, MS
SUMMARY REPORT
Geography: 5 Miles
Population
In 2013, the population in your selected geography was 102,825. The population has changed by -4.42% since 2000. It is estimated
that the population in your area will be 101,403 five years from now, which represents a change of -1.38% from the current year. The
current population is 46.8% male and 53.1% female. The median age of the population in your area is 29.8, compare this to the U.S.
average which is 37. The population density in your area is 1,400.92 people per square mile.
Households
There are currently 36,507 households in your selected geography. The number of households has changed by -4.83% since 2000.
It is estimated that the number of households in your area will be 36,369 five years from now, which represents a change of 0.37%
from the current year. The average household size in your area is 2.70 persons.
Income
In 2013, the median household income for your selected geography is $28,056, compare this to the U.S. average which is currently
$53,535. The median household income for your area has changed by 5.84% since 2000. It is estimated that the median household
income in your area will be $30,021 five years from now, which represents a change of 7.00% from the current year.
The current year per capita income in your area is $14,887, compare this to the U.S. average, which is $28,888. The current year
average household income in your area is $40,854, compare this to the U.S. average which is $75,373.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 12.67% White, 85.04% African American, 0.23% Native American
and 0.31% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96%
Native American and 5.01% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 1.64% of the current year
population in your selected area. Compare this to the U.S. average of 16.55%.
Housing
The median housing value in your area was $53,741 in 2000, compare this to the U.S. average of $110,781 for the same year. In
2000, there were 21,199 owner occupied housing units in your area and there were 17,103 renter occupied housing units in your
area. The median rent at the time was $366.
Employment
In 2013, there are 73,563 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 52.9% of employees are employed in white-collar occupations in this geography, and 47.0% are employed in blue-collar
occupations. In 2013, unemployment in this area is 6.36%. In 2000, the median time traveled to work was 19.3 minutes.
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JACKSON, MS
POPULATION DENSITY
Number of people living in a given area per square mile.
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JACKSON, MS
EMPLOYMENT DENSITY
The number of people employed in a given area per square mile.
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JACKSON, MS
AVERAGE HOUSEHOLD INCOME
Average income of all the people 15 years and older occupying a
single housing unit.
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TOTAL CRIME RISK
Crime data © 2012 by Applied Geographic Solutions.
Index of the relative risk of crime in a given area.
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JACKSON, MS
TRAFFIC COUNTS
Traffic Count data © 2012 by TrafficMetrix. All rights reserved.
Two-way, average daily traffic volumes.
* Traffic Count Estimate
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MARKETING PLAN
JACKSON, MS
JACKSON, MS
MARKETING PLAN
Leaving No Stone Unturned in Marketing Your Property
■ Expert Underwriting
■ Access To More Investors Than Any Other Source
■ A Tightly Managed Marketing Campaign
At Marcus & Millichap, our mission is to
help each client achieve their investment
goals. Through our investment expertise
and extensive research capabilities, our
agents develop optimal positioning, pricing
and marketing strategies for each property.
While experience and knowledge of a market create value in the representation of a client, the quality of exposure
to the marketplace determines the final outcome. Marcus & Millichap’s time-tested marketing system ensures that
each listing will be presented to an expanded marketplace, creating the broadest buyer interest and maximizing
value for our clients.
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JACKSON, MS
MARKETING PLAN
Investor Profiles
There are three primary investor tiers in the marketplace and Marcus & Millichap has the track record and
relationships to effectively access each of these buyer pools.
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JACKSON, MS
MARKETING PLAN
Achieving Optimal Results
One Transaction at a Time
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JACKSON, MS
MARKETING PLAN
The Marketing Package
A complete marketing package is prepared immediately after execution of the “Exclusive Right to Sell”
agreement. Within 72 hours of signing the listing agreement, we distribute a detailed information package
to sales professionals in our offices throughout the United States.
Marketing Package Contents:
■ Property Description-Overview, Highlights, Summary, Photos, Maps, Site Plan, Floor Plans, Aerial
Photos, etc.
■ Market Profile-MSA and Local Market Overviews
■ Rent Comparables-Summary, Graphs and Map
■ Recent Sales-Summary, Graphs and Map
■ Financial Analysis-Tenant Summary, Income & Expense Summary
■ Demographic Information-Summary of Local Market Population’s Statistical Characteristics, Reports,
Maps
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MARKETING PLAN
JACKSON, MS
Maximum Exposure,
Optimal Results
1. Internal Information Sharing
2. Direct Marketing
3. Advertising
4. Investor Symposiums
5. Broker Cooperation
6. Internet Marketing
7. Industry Events and Trade Shows
1. Internal Information Sharing
MNet
Each listing is entered into Marcus & Millichap’s proprietary
property database (MNet) and the information is instantaneously
transmitted to the firm’s more than 1,000 agents nationwide.
Employing the “Buyer Needs” function of MNet, an agent
specifies a client’s property investment criteria; when a matching
property is listed, the agent is immediately notified.
Sales Meetings
At our weekly local office sales meetings, a PowerPoint
presentation will promote the property to the entire sales force.
Agents will be instructed on how to reinforce the property’s strong
points and overcome any shortcomings. Properties are further
promoted internally through our monthly property specialty group
conference calls, where, for example, members of our National
Multi Housing Group or National Retail Group confer on market
trends and investment opportunities.
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JACKSON, MS
MARKETING PLAN
2. Direct Marketing
Offering memorandums and promotional materials are utilized to
present the opportunity to a broad base of investors. Using “My
Marketplace,” an automated Web application, Marcus &
Millichap agents can easily produce high-quality marketing
materials and get properties to market quicker. Through MNet’s
“Buyer Needs” function and their personal databases of investor
relationships, our investment professionals identify qualified
potential buyers. After specific investors are identified, a direct
marketing campaign is initiated, which includes mailings followed
by personal contact with each potential buyer.
3. Advertising
Marcus & Millichap actively advertises its exclusive property
listings in national, regional and local publications to expand the
exposure to potential investors. We regularly feature our listings in
full-page advertisements in The Property Report section of
The Wall Street Journal, the nation’s premier business publication.
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MARKETING PLAN
JACKSON, MS
4. Investor Symposiums
Marcus & Millichap’s local offices host regular investor symposiums throughout the United States. These
invitation-only events feature property presentations where the merits of each investment opportunity are
discussed with the large group of qualified investors in attendance.
5. Broker Cooperation
We contact all brokers who possess the expertise and qualifications to contribute to a property’s marketing.
These contacts include brokers who have been involved in the sale of similar types of properties within the
past 24 months and brokers who represent clients qualified to acquire such properties. As part of our initial
marketing campaign, a mailer serves to notify qualified brokers of the offering. In addition, these brokers
receive the property’s Executive Summary via e-mail.
6. Internet
Marcus & Millichap utilizes the vast reach of the Internet to ensure maximum exposure of a listing. With the
seller’s permission, exclusive listings are promoted through the Marcus & Millichap website.
www.MarcusMillichap.com
7. Industry Events and Trade Shows
Marcus & Millichap is a leading participant and
sponsor of key real estate industry events, the
majority of which are organized by property type.
Our commitment to industry events and our
presence at key gatherings of investors result in
additional exposure of investment properties to
potential investors. Our agents and management
interact with the nation’s most prominent investors,
as well as numerous local investors, at events such as
ICSC, NAIOP, NMHC, ULI, Self Storage
Association,
ALFAA,
AAHOA
and
Western
Manufactured Housing.
46
MARKETING PLAN
JACKSON, MS
Marketing Budget - Planning for
Success
Marcus & Millichap designs its marketing budget
to effectively target the right pool of investors.
Employing cutting-edge marketing tools and stateof-the-art communications, we ensure the broadest
possible exposure for each listing.
Emphasis on Client Communication Liaison
Marcus
&
transaction
Millichap
emphasizes
management
proactive
and
client
communication. We will give you regular updates
on the pending sale of your asset. These reports will
include progress status of interested parties,
objections from uninterested parties, marketing
activity updates and copies of all advertisements
and dates when placed.
Clients also have the option of utilizing Marcus &
Millichap’s Marketing Liaison. This Web-based
collaboration
platform
provides
clients
the
convenience of online access to transaction progress
reports and documents on a 24/7 basis. Agents and
clients can also use the secured Internet meeting
place as another means of communication.
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JACKSON, MS
MARKETING PLAN
The Industry's Most Powerful Marketing Platform
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JACKSON, MS
MARKETING PLAN
The Industry's Most Comprehensive Support Systems
49
MARKETING PLAN
JACKSON, MS
ONGOING
50
MARKETING PLAN
JACKSON, MS
Timeline
Month 1
week
1 2
3 4
Month 2
Month 3
week
week
1 2
3 4 1 2
3
Month 4
week
4 1 2
3
Month 5
week
4 1 2
3 4
Month 6
week
1 2 3 4
Internal Marketing
Property in MNet = 1,200+ Agents
Sales Meetings
Regional Office Presentations
Buyer Needs (Automated Matching)
1031-Exchange List
National Specialty Group Marketing Calls
Direct Marketing to Potential Investors
E-Brochure
Executive Summary
Offering Memorandum
Investor Symposiums
Postcards
E-Presentation
Property Tours
Marketing to Cooperating Brokers
Email
E-Brochure
Executive Summary
Offering Memorandum
Advertising
www.MarcusMillichap.com (optional)
National Edition The Wall Street Journal
Local/Regional Newspapers
Business Journals
Trade Publications
Accountability
Status Meetings with Seller
Marketing Updates (written)
Copies of Marketing Materials
Follow Through
Buyer Qualification
Multiple Offers
Offering
ONGOING
Transaction Management
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JACKSON, MS
JACKSON, MS
The Marcus & Millichap Advantage
Since 1971, Marcus & Millichap Real Estate Investment Services has been the premier provider of investment real
estate brokerage services. With more than 1,000 investment professionals throughout the United States, Marcus &
Millichap is the largest brokerage firm focused exclusively on investments. By specializing 100 percent on
investments and organizing our sales force into property specialty groups, we provide clients with superior market
knowledge and transaction expertise targeted specifically to the unique requirements of each property type. Having
pioneered the industry’s most powerful marketing system, the essence of Marcus & Millichap’s value proposition
is our ability to "make a market" for each property through expanded market exposure, which generates the
broadest buyer interest and results in maximum value.
We combine comprehensive market research, state-of-the-art technology and communications systems with access
to the industry’s largest pool of private and institutional investors. The result is the most efficient process for
matching buyers and sellers locally, regionally and nationally. We offer investment expertise in all major property
types, including apartments, retail, office, industrial, single-tenant net-lease, seniors housing, hospitality and
lodging, manufactured home communities, self-storage and land.
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JACKSON, MS
Exposure
The Industry’s Most Powerful Marketing System
Marcus & Millichap utilizes a powerful and proprietary marketing system to
facilitate the sale, purchase or exchange of investment properties nationwide.
This platform is supported by our national inventory of investment
properties, state-of-the-art communication technology and our culture of
information sharing.
Access to more qualified investors than any other source.
Through investment specialization, we have accumulated the largest database of qualified investors in the industry.
Through the personal local relationships maintained by our investment professionals, we provide unparalleled
access to potential buyers for each property we represent.
The largest investment brokerage sales force, a culture of information sharing.
Each property is exposed to the broadest pool of qualified investors. Our unique culture brings a superior level of
expertise to each transaction. The large number of owners and investors who repeatedly conduct business with
Marcus & Millichap serves as a testimony to our success in matching buyers and sellers, and maximizing value.
A pioneer in real estate technology, Marcus & Millichap leverages the power of its sales force and the entire
brokerage community to assure maximum exposure for each listing and meet investors’ needs.
Our real-time property marketing system, supported by reliable property and market information, facilitates the
matching of buyers and sellers from coast to coast.
Our investment property inventory is recognized for its size, diversity, quality, deliverability and
underwriting standards.
Investors have come to rely on Marcus & Millichap for access to investment opportunities that meet their specific
parameters, including sensitive timing demands driven by 1031-exchange requirements.
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JACKSON, MS
Expertise: A Foundation for Client Success
Specialization
Marcus
& Millichap was founded
Our three
commitment
and focus on investment brokerage services is rooted in our founders’ philosophy that the most
defining principles,
on
effective market knowledge and expertise can only be generated through specialization. Our sales force and services
continue
which to distinguish our services and capabilities in the real estate brokerage industry:
are further specialized by property type and geography, leading to the deepest and most up-to-date market
knowledge, as well as personal relationships with owners and investors. To support our commitment to
specialization within each property type, the firm has instituted National Specialty Groups, which organize the
training, communication and marketing activities of our sales force by property type. Our specialty groups include
National Multi Housing Group, National Retail Group, National Office and Industrial Properties Group,
National Hospitality Group, National Manufactured Home Communities Group, National Self-Storage Group,
National Seniors Housing Group, Net Leased Properties Group, Special Assets Services and Healthcare Real
Estate Group.
Making a Market Through Information Sharing
Information sharing among our sales force and throughout the brokerage community best serves our clients’
interests when all of our agents present investment opportunities to their clients. This results in the broadest
possible exposure for each property and the most visible investment opportunities for investors. We "make a
market" for each property we represent while expanding investors’ choices and investment options.
Value-Added Brokerage
Marcus & Millichap believes in maintaining long-term relationships with its clients by providing the industry’s
highest quality services. We offer a number of services and capabilities designed to help clients maximize their
investment returns. Through our Research Services Division, Marcus & Millichap Capital Corporation, National
Specialty Groups and Major Account Services, we offer an array of services that help investors meet their objectives
before, during and after each and every transaction. In addition, our investment-experienced management team
operates with a hands-on philosophy focused on quality assurance and support for agents and clients in every
market.
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JACKSON, MS
Results: Maximizing Results Through Value-Added Services
Expert Underwriting/Positioning
■ We review comparable property rents, recent sales, current for-sale
properties and local market conditions.
■ Our investment team creates financial performance scenarios with
input from clients in order to help assess pricing and formulate the
right strategy.
■ Our investment professionals conduct detailed market surveys that
provide an accurate and competitive estimate of a property's
current and future value.
■ A comparison of property trends and values in various submarkets
enables investors to assess the desirability of moving equity from
one market to another in order to take advantage of local cycles
and opportunities.
Investment Decision Support Through Market Research
Marcus & Millichap’s Research Services Division is comprised of experienced real estate analysts. Our market
research is specialized by property type and integrates local market trends, as well as regional and national
developments, to support property evaluation, pricing and positioning. Clients who are pursuing a transaction will
benefit from the combination of our investment research capabilities and the market knowledge of our agents.
During the hold period of an investment, owners can utilize numerous research publications and analysis
capabilities to help maximize property performance.
Access to Competitive Financing – Marcus & Millichap Capital Corporation
As a part of our effort to create value for property owners and investors, Marcus & Millichap Capital Corporation
offers access to the most competitive capital sources, tailored by property type. Property owners can take advantage
of refinancing opportunities to increase their returns during ownership. Investors can rely on our expert capital
market knowledge and benefit from our ability to secure well-managed, competitively priced financing through
our network of prominent national and regional lenders. Our national team of finance specialists possesses
experience in providing financing for a full range of investment property types.
56
JACKSON, MS
Major Account Services
We have tailored our services and delivery system to meet the needs of larger private and institutional investors.
We provide major clients access to a special group of highly experienced financial analysts, research professionals
and graphic designers. Our Major Account Services (MAS) team delivers state-of-the-art underwriting, property
and market analysis, marketing and presentation capabilities. Services include financial modeling, analysis and
valuation, portfolio analysis, preparation of offering memorandums, specialized marketing material and generation
of full-scale marketing packages. Key assignments for major accounts are planned and executed with the
involvement of the firm’s management team to deliver the proper level of expertise to every client.
National Specialty Groups
Marcus & Millichap’s national product specialty groups provide clients with product knowledge and transaction
expertise geared specifically to the unique requirements of each property type. Our specialists work closely with
major clients to understand their long-term objectives and to formulate the most effective marketing plan and
team for specific projects. Our capabilities produce superior results for major clients, whether the assignment
involves a single asset or a large multi-market portfolio.
Management Team of Investment Experts
Our national sales force is managed by a team of market experts who were investment sales professionals at some
point in their careers. Marcus & Millichap has a long-standing philosophy of supporting its sales professionals
with noncompetitive managers whose purpose is to provide clients with premier investment brokerage services.
Managers foster these services by providing ongoing training and coaching of the sales force, supporting client and
agents’ needs, and overseeing the transaction process to ensure the best possible results for every client.
Offices Nationwide
57
JACKSON, MS
Maximizing Value By Accessing More Out-of-Market Buyers
Than Any Other Source
In 2012, Marcus & Millichap’s National Marketing System and Investor Relationships Secured Out-of-Market
Buyers 65 Percent of the Time for Mid-Market Sellers.
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JACKSON, MS
Pricing Evaluation
The diagram below shows the segment of prospective purchasers who are likely to see your property
based upon the relationship of its asking price to its fair market value.
These percentages are based upon a multi-state study conducted by a national marketing organization.
If you want to have a cushion for negotiation, you must still have people to negotiate with. If you
over-price your property, it is not likely to be shown. If your property is being shown, but not
sold, maybe it is being used to make other listings more attractive.
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JACKSON, MS
More Than 1,000 Investment Professionals in Offices Nationwide
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JACKSON, MS
Marcus & Millichap Closes More Transactions Than Any Other Firm
U.S. Investment Sales Brokerage Company Ranking
* Includes sales of apartment, office and retail properties of $1 million and above nationally, 12 months
ending 9/30/2012; list side. Source: CoStar Group, Inc.
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JACKSON, MS
BROKER OPINION OF VALUE
Presented By:
Bradley Barham
Senior Associate
Associate Director, National Multi Housing Group
St. Louis Office
Cell: (601) 624-2118
License: MO: 2013016939
Brad.Barham@marcusmillichap.com
www.marcusmillichap.com/BradleyBarham
Offices Nationwide
www.MarcusMillichap.com

Red Apple Apartments

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