For SaleNET ASH FLOW (before debt service & taxes) $5,891 $212,078 AP Rate (based on NOI before APX) 6.6% Price $3,400,000 Per Unit $94,444 Per Square Foot $103 Wendover Ridge Proforma

Downtown

Confidential & Exclusive Investment Offering Wendover Ridge Apartments

514 Coapman Street, Greensboro, NC 27407

For Sale $3,400,000

Contact: Tim Knowles, Broker

[email protected] 336-541-5508

336-215-5716

Property Description Brown Investment Properties, Inc. is pleased to offer Wendover Ridge Apartments in Greensboro, NC. This 36-unit property was built in 2000, and it consists of one 3-story garden style brick building with interior hallways and stairways. There are 24 one-bedroom units and 12 two-bedroom units, and it is currently at 100% occupancy. The building is on a 2.08-acre parcel at the end of a quiet street in the Hewitt neighborhood area of Greensboro. It is adjacent to Wendover Avenue; however, access is from Spring Garden Street and Holden Road. The property is 5 miles southwest of downtown Greensboro, and 12 miles southeast of the Piedmont Triad International Airport. The University of North Carolina at Greensboro (UNCG) is 2.9 miles away and there are several small shops within a 10-minute walk. Also nearby are restaurants, cafés, and pubs, including the original Hops Burger Bar. TripAdvisor ranked Hops #1 in their 2015 list of "America's Best Burger Restaurants".

Currently, the one-bedroom units rent for $725 per month and the two-bedroom units rent for $825 per month. Additional income is generated with pet fees, cable package fees, appliance rentals and late fees. Average rents for the area for a one-bedroom unit are $747 per month and

Amenities

• Water/Sewer Provided • Washer/Dryer Hookup • Security System • Ceiling Fans • Cable Package • Handicap Accessible Rooms on 1st Floor • Dishwasher, Disposal, Microwave, Pantry • Sunrooms

Proforma Proforma Proforma

Number Size Total SF Rent Per Foot Rent Annual Rent

1 BR/1BA 24 850 20,400 $0.90 $765 $220,320

2 BR/2 BA 12 1,050 12,600 $0.85 $895 $128,880

36 33,000 $0.88 $808 $349,200

GROSS POTENTIAL RENT 100% $349,200

Other Income

Pet Fees $1,800

Appliance Rental $2,000

Cable & Internet ($50/unit) $21,600

Late Fees 1.72% $6,000

Total Other Income $25,400

GROSS POTENTIAL INCOME $374,600

Vacancy & Credit Loss 18,730

GROSS EFFECTIVE RENT $341,972

GROSS EFFECTIVE INCOME % Per SF Per Unit $355,870

Utilities 6.07% 0.65 $600 $21,600

Maintenance & Repair 2.53% 0.27 $250 $9,000

Labor 5.06% 0.55 $500 $18,000

Grounds 1.42% 0.15 $140 $5,040

Decorating/Turn Costs 2.02% 0.22 $200 $7,200

Marketing 1.82% 0.20 $180 $6,480

Management 6.00% 0.65 $593 $21,352

Insurance 3.73% 0.40 $369 $13,289

Misc. 1.21% 0.13 $120 $4,320

Taxes 7.51% 0.81 $742 $26,711

TOTAL EXPENSES 39.37% 4.25 $3,892 $132,992

NET OPERATING INCOME (NOI) 60.63% $222,878

Allowance for Capital Reserves (CAPX) $0.33 $300 $10,800

NET CASH FLOW (before debt service & taxes) $5,891 $212,078

CAP Rate (based on NOI before CAPX) 6.6%

Price $3,400,000

Per Unit $94,444

Per Square Foot $103

Wendover Ridge Proforma Assumptions:

Wendover Ridge Apartments is a hidden gem in

Greensboro. It is close enough to UNCG &

Greensboro College for students, but it is a

market rate property that has a proven track

record of having very low vacancy rates. The

asking rent is lower than the average for one

and two-bedroom units in the market. The units

are large with sunrooms in addition to the living

rooms. The current owner provides a cable

package at a very low rate of $25 per month.

Property management is done with a

combination of a part time staff member who

lives in the Triad and with staff that is out of

state.

The proforma assumes a slightly lower vacancy

rate than the market average due to the

historical numbers for this property. The

monthly rent has been increased to a number

between the market average price per unit and

the market average price per square foot. A

cable charge to tenants of $50 per month is a

reasonable amount for cable allowing the new

owner to some income, versus passing on the

cost to the tenants. And, by utilizing a local

property manager for the management, the new

owner could potentially have savings in that

category as well. The proforma makes these

assumptions and uses some actual numbers

from the current owner’s expenses along with

some averages that come from published

statistics for the Southeast.

One additional value add opportunity not previously mentioned is charging for water/sewer. If a new owner added sub-meters and billed the tenants for water/sewer, that would lower the expenses and increase the NOI.

The statements and figures herein while not guaranteed are secured from sources believed to

be authoritative. This offering is subject to change of price, prior lease or sale and or

withdrawal without notice. Prospects should verify all information.

440 West Market Street, Greensboro, NC 27401

Wendover Ridge

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