MADISON APARTMENTS 4050 MADISON AVENUE SOUTH OGDEN, UTAH OFFERED BY: MARK JENSEN mjensen@ngacres.com 801.578.5505 GREG RATLIFF gratliff@ngacres.com 801.578.5531 CHRIS TURNER cturner@ngacres.com 801.578.5533 1
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PROPERTY Built in 1968, Madison is a 26-unit apartment community on almost an acre of ground. While it is relatively older product, Madison masonry construction is built to last structurally and aesthetically, featuring newly remodeled interiors with quality finishes, including hardwood floors. In addition to the upgrades, the property is situated adjacent to the 1.5-acre Madison Avenue Park and just half a block from 40th Street, a primary artery with access to Newgate Mall, Ogden County Club, and Weber State University all within less than a 1.5-mile radius or 5-minute drive of Madison. MARKET On a broad level, the Utah economy has been very robust over the last half decade, maintaining extremely low unemployment rate of less than 4% and has become a magnet for technology jobs, healthcare, and transportation of which Ogden is famous for due to the strategic location in relation to other regional markets. The Ogden-Clearfield MSA, with a 2010 census population of 547,184, is smaller than the more well-known Salt Lake and Provo markets, but has been a massive benefactor of Utah s economic success Ogden was the 6th-fastest growing city in the nation (Salt Lake City was #5 with year-over-year GDP growth of 7.21% according to Forbes Magazine. Madison central location bodes well for any investor looking to capitalize on the trends we are seeing in the Ogden market. OPPORTUNITY Priced at just $75,000 a door, Madison offers significant value even in this very tight market. Location cannot be overlooked, as Madison is strategically placed in the middle of major desirable economic drivers, from the Division-I Weber State University to the McKay-Dee Hospital complex, both located only a few blocks up the hill. Additionally, major expansions have occurred or are underway in manufacturing, as Ogden is the burgeoning outdoor-gear cluster hot spot in the US, attracting the likes of French cycling company Mavic (which recently moved its American HQ to Ogden, ENVE Composite, and Quality Bicycle, generating nearly 1,000 new jobs in the area in the next four years; these diversifying demographics will serve Madison well moving forward. Rent growth is likely to remain strong as the property has already seen GRR raise 5% on T-6 numbers, again demonstrating the upside that exists in the current market, and why we are excited about this offering. 3
PROPERTY OVERVIEW UNITS CONSTRUCTED TOTAL RENTABLE SF LOT SIZE 26 1968 21,360 0.92 Acres UNIT MIX 24 Two Bedroom/1 Bathroom ( SF 2 One Bedroom/1 Bathroom (720 SF APARTMENT AMENITIES Covered Parking Central HVAC On-site Laundry Facility Renovated Units 4
AERIAL MAP N Li b er ty A v e nu e 165' 060510003 0.94 Acres JULYN & ASSOCIATES LLC 249' Ma d is o n A v e nu e 255' 161' 41 S t S t re e t Imagery 2016, State of Utah 5
Har r ison Boule va rd Qu inc y Ave nu e Adam s Aven ue R oa 15 d Linc oln Av enu e Gr a nt Ave nue D riv e S er d al e 36t h St re et Ch i s on St r e e t li n m Edval ky ri v e e D Newgate Mall iv es ie w D ri v e 40t h St re et 26,681 Students al e R o ad V R iv Ogden Country Club 3 00 W es t 44 0 o 0 S ut h Co Adam s Aven ue er d 4 1 00 Wa shin gt on Bo ule var d Hi nc k le y R Wa ll Aven ue N Jef f e rs on Av en ue AERIAL MAP M on r oe B lv d un t ry H ills Dr iv So u th e 4600 So ut h 480 0 Sout h Imagery 2016, DigitalGlobe, State of Utah, U.S. Geological Survey, USDA Farm Service Agency 6
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FINANCIAL ANALYSIS PROPERTY ABSTRACT FINANCIAL INDICATORS 26 Year Built Rentable SF 1968 21,360 Price $1,950,000 Down Payment Down Payment % Lot Size Acres 0.92 Current CAP Occupancy (Feb RR 88% Cost Per Sq. Ft. Ground APN: 06-051-0003 MARKET RENT (T-3 NUMBERS Price / Unit Gain on Lease $465.00 25% Loss on Lease ($1,567.92 Gross Rent Revenue $15,642.08 $48.66 Vacancy/Collection Loss 3.83% $75,000.00 PSF $16,745.00 $487,500 5.89% Cash on Cash Return: Market Rent: $91.29 OR INCOME (T-3 NUMBERS Utility Reimbursment Other Income $16,226.82 Administrative $2,979.24 Repairs & Maintenance $7,172.36 Landscaping/Service Cont. Utilities $5,520.00 $16,653.60 ESTIMATED ANNUALIZED OPERATING DATA CURRENT Scheduled Gross Income Market Vacancy: 5% Gross Operating Income Expenses Property Taxes $9,312.00 Net Operating Income Property Insurance $4,020.00 Less Loan Payments Management/Turnover/ Payroll $31,789.24 Pre-Tax Cash Flow Reserves $2,500.00 Total Expenses: Percentage Return $(79,946.44 8 PROFORMA $430.39 $1,118.67 Total Income EST. ANNUALIZED EXPENSES ($964.32 FIRST LOAN $1,462,500 $194,722 $207,000 $0 ($10,350 $194,722 $196,650 ($79,946 ($79,946 TERM $114,775 $116,704 25 ($96,107 ($96,107 ANNUAL PMT $18,668 $20,596 ($96,107 3.8% 4.22% RATE 4.25%
RENT ROLL v SIZE (SF UNIT STATUS STATUS MARKET RENT SCHEDULED CHARGES LEASE START LEASE END 11 12 13 -- Vacant - $665 $582 7/31/2014 7/31/2016 $757 12/1/2015 5/31/2017 14 -- Vacant -- $665 15 16 17 18 $532 $582 $607 $482 9/1/2015 8/17/2015 11/4/2015 11/1/2015 10/31/2016 3/1/2016 10/31/2016 20 720 -- Vacant -- $550 21 22 23 Notice Unrented Vacant Unrented Ready Notice Unrented Vacant Unrented Ready $507 $557 $657 10/1/2015 2/1/2016 8/2/2015 24 25 26 27 28 30 31 32 720 $550 $582 $532 $682 $582 $582 $607 $757 $577 12/28/2015 10/15/2015 8/1/2015 1/1/2016 1/20/2016 8/1/2015 12/1/2015 10/1/2015 33 34 35 36 37 38 $665 $657 $632 $682 $682 $682 $557 12/16/2015 10/6/2015 2/13/2016 8/1/2015 9/30/2015 10/1/2015 Total: 21,120 SF $16,745 $14,056 UNIT 9 5/31/2016 10/15/2016 8/31/2016 8/31/2016 5/30/2016 5/31/2016 1/1/2017 4/30/2016 4/29/2016
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RENT PROPERTY CONSTRUCTED TOTAL UNITS UNIT TYPE UNIT SF RENT RENT/SF OCC. RATES NOTES 4050 Madison Avenue South Ogden, UT 84403 26 1 Bed/1 Bath 2 Bed/1 Bath 720 $550 $0.76 $0.79 92% Pet Rent: Cats allowed Pet Fee/Deposit: WST: No Utilities: No Parking: 1 Covered Stall Media Package: Available BROOK HOLLOW APARTMENTS 4515 Harrison Blvd Ogden, UT 84403 40 2 Bed/1.5 Bath 1020 $620 - $670 $0.61 - $0.66 100% Pet Rent: $15.00 Pet Fee/Deposit: $200.00 WST: Included Gas & Electric: No Parking: 1 Sta;; Media Package: Available BONNE VILLA APTS & CONDOS 3257 South Harrison Blvd Ogden, UT 84403 47 3 Bed/2 Bath 2 Bed/2 Bath 2 Bed/1 Bath 1 Bed/1 Bath 1000 850 800 700 $750 $565 $505 $0.75 $0.76 $0.71 $0.72 100% Pet Rent: $20.00 Pet Fee/Deposit: $400($100 nonrefundable WST: Included Gas & Electric: No Parking: 1 Sta;; Media Package: N/A CHRISTOPHER VILLAGE APTS 4935 Old Post Road Ogden, UT 8443 113 2 Bed/1.5 bath 1,050 $745 - $785 $0.71 - $0.75 100% Pet Rent: $25.00 Pet Fee/Deposit: $300 WST: No Gas & Electric: No Parking: 1 Sta;; Media Package: $35 11
RENT 20t h St re et r ee t 21 s t St Mo nr oe Boule va rd N ( 24t h St re et 255 0 S out h ri D nd la 15 400 0 S out h ( Har r ison Boule va r d c Wa shin gt on Boule va rd Hi n y kl e ve D ri Wa ll Av e nue M 190 0 W es t BONNE VILLA APTS & CONDOS 3257 South Harrison Blvd Ogden, UT 84403 30t h St re et id Ma r rio t t / Slate r v ille Riv erdal e Roy ad Sou th Og de n Wa s h i n g t o n T e r r a ce 89 We 560 0 S out h Ro 105 R i ve le rd a 0 W est 480 0 S out h 27 0 0 W es t Og de n ve 84 b er 600 0 S out h D ri ve Hill Air Force Base 230 0 No r th 12 4050 Madison Avenue South Ogden, UT 84403 BROOK HOLLOW APARTMENTS 4515 Harrison BLVD Ogden, UT 84403 CHRISTOPHER VILLAGE APTS 4935 Old Post Road Ogden, UT 8443
MARKET RENT BY FLOORPLAN Comparable Rents - 2 Bedroom Units $900 $800 $700 $600 $500 $400 $300 $200 $100 $- $656.25 $645 Madison Brook Hollow Asking Rent (average $765 $565 Bonne Villa & Condos Christopher Village Market Average Comparable Rent PSF - 2 Bed Units $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- $0.73 $0.79 Madison $0.70 $0.71 $0.73 Brook Hollow Bonne Villa & Condos Christopher Village Asking Rent PSF (average Market Average 13
12 5 0 S ou th 47 0 0 W e s t 12 0 0 W e s t Wa ll A v e nu e SALE 20 th St re e t V a tr e e t 21 s t S Og de n e 30 th St re e t 19 0 0 W e s t 5 6 0 0 So ut h 23 0 0 N o r th D Clinton 30 0 0 W e s t h W e b e r Dr i ve Hill Air Force Base 193 84 O ld H ig hw a ( an re Lay ton 14 ive St Dr 10 0 0 N o r th y n lle A nt el o p e Dr i v e ai Va 32 0 0 W e s t rg et 27 0 0 S ou th Sou th We b e r 17 0 0 S ou th Clearf ield M 30 0 0 W e s t ut Mo 45 0 0 W e s t So ad Sy ra c u se ve Ro 70 0 Sou th 167 S u n se t 13 0 0 N o r th OAKRIDGE APTS. 40 Units Built in 1973 SOLD: $2,935,000 y GARDEN We APTS. s t 80 0 No r th 27Po Units int Built in 194530 0 No r th SOLD: $1,510,000 ri 15 M a in Str e e t 18 0 0 N o r th 10 0 0 W e s t 20 0 0 W e s t 23 0 0 N o r th MADISON APTS. 26 Units Built in 1968 $1,950,000 89 r 60 0 0 S ou th D r i ve Sou th Wa s h i n g toognd e n T e r r a ce Ri v e r d a l e be 59 0 0 W e s t 55 0 0 S ou th Dr i v e Roy ey la 48 0 0 S ou th H o o p er ckl nd H in We iv ( M Dr id 35 0 0 W e s t OAKWOOD APTS. 27 Units Built in 2010 40 0 0 S ou th SOLD: $3,200,000 Ma r rio t t / Slate r v ille l ley 158 WASHINGTON PARK APTS. 112 Units Built in 2000 SOLD: $7,875,000 Ha r r is o n Bo ul e v ar d (2 4 t h St r e e t 39 12 th St re e t 39 50 0 No r th
COMPARABLE ANALYSIS Price Per Foot by CAP Rate PRICE/ UNIT Madison 1968 $75,000 $91.29 821 5.89% 8.00% Garden 1946 $55,926 $83.50 670 8.10% 7.00% 6.52% 6.00% 5.00% Oakwood 2010 PRICE PSF AVG SF OF UNITS YEAR BUILT PROPERTY $118,519 $91.17 1,300 CAP RATE 9.00% Oakridge 1973 $73,375 $73.38 1,000 6.75% Washington Park Apts 2000 $70,313 $71.42 984 6.18% COMP INDEX AVERAGE Madison premium/discount on avg 1982 $79,533 $79.87 988.44 6.89% (14 Years -6% 13% -20% 100 BPS $95 $90 $85 $80 $75 $70 $65 $60 4.00% $71 $91 $73 $84 Madison Washington Park Oakwood Oakridge Garden Price PSF $91.29 $71.42 $91.17 $73.38 $83.50 CAP Rate 5.89% 6.18% 6.52% 6.75% 8.10% Price PSF Price/Unit By Year Built CAP Rate 1,400 $118,519 $120,000 1,300 1,200 $75,000 $80,000 $73,375 Average Unit SF $100,000 $70,313 $55,926 $40,000 $20,000 $50 Average Unit Size $140,000 $60,000 $55 $91 3.00% 1,100 1,000 900 800 700 1946 1968 1973 2000 2010 Garden Madison Oakridge Washington Park Oakwood 1,300 600 1,000 984 821 670 500 $0 Madison Garden Oakwood Oakridge Washington Park 15