Oakland.pdf

Oakland Apartments

6244 Oakland Ave, St. Louis , MO 63139

Mike Zangara

Principal Broker

314.517.0903

[email protected]

7751 Carondelet Ave, Ste. 800St. Louis, MO 63105314.716.2213 (p)

Value Add Opportunity●

Very Desirable RentalNeighborhood

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Quality Tenant Base withAbility to Increase RentsSubstantially

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Proximity to Forest Park, St.Louis Zoo, Dining &Entertainment

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Solid Brick Building withGarage Parking

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Real Estate Investment Details

ANALYSIS

Analysis Date September 2015

PROPERTY

Property Oakland Apartments

Property Address 6244 Oakland AveSt. Louis , MO 63139

Year Built 1948

FINANCIAL INFORMATION

Down Payment $470,000

PURCHASE INFORMATION

Property Type MultiFamily

Purchase Price $2,350,000

Units 39

Total Rentable Sq. Ft. 28,846

LOANS

Debt Term Amortization Rate Payment LO Costs

Balloon $1,880,000 5 years 25 years 4.0% $9,923

INCOME & EXPENSES

Gross Operating Income $250,551

Monthly GOI $20,879

Total Annual Expenses ($98,633)

Monthly Expenses ($8,219)

CONTACT INFORMATION

Mike Zangara

314.517.0903

[email protected]

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.

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Executive SummaryOakland Apartments

6244 Oakland AveSt. Louis , MO 63139

Mike Zangara314.517.0903

ACQUISITION COSTS

Purchase Price, Points and Closing Costs $2,350,000

Investment - Cash $470,000

First Loan $1,880,000

INVESTMENT INFORMATION

Purchase Price $2,350,000

Price per Unit $60,256

Price per Sq. Ft. $81.47

Income per Unit $6,750

Expenses per Unit ($2,529)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $263,232

Total Vacancy and Credits ($12,681)

Operating Expenses ($98,633)

Net Operating Income $151,918

Debt Service ($119,080)

Cash Flow Before Taxes $32,838

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 6.99%

Debt Coverage Ratio 1.28

Capitalization Rate 6.46%

Gross Rent Multiplier 8.93

Gross Income / Square Feet $9.13

Gross Expenses / Square Feet ($3.42)

Operating Expense Ratio 39.37%

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Property DescriptionOakland Apartments



Oakland Apartments is being offered at$2,350,000. The Property is solid brickconstruction with concrete floors and garageparking. Oakland Apartments is located directlyacross highway 40/64 directly across from theSt. Louis Zoo and just west of the St. Louis Zoo'snew development at the corner of Hampton andOakland.

The Property consist of 39 units that are 100%occupied with a very strong tenant base, whichis a good indication rents can and should beincreased. Additionally, the new Owner canincrease their bottom line, by implementing ratio utility billing (RUBS), which is common for similarheat furnished buildings in the area.

Please contact Michael with questions or to schedule a showing today.

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Unit Mix ReportOakland Apartments



UNIT MIXES

Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly27 Studios 485 $495 $13,365 $550 $14,8506 1 Bedroom / 1 Bath 650 $590 $3,540 $690 $4,1406 2 Bedroom / 1 Bath 875 $705 $4,230 $790 $4,74039 22,245 $21,135 $23,730

UNIT MIX UNIT MIX SQUARE FEET

● Studios

● 1 Bedroom / 1 Bath


● Studios



UNIT MIX INCOME UNIT MIX MARKET INCOME

● Studios



● Studios



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Pro Forma SummaryOakland Apartments



UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total Pro Forma Total

Studios 27 $5,940 $160,380 $6,600 $178,200

1 Bedroom / 1 Bath 6 $7,080 $42,480 $8,280 $49,680

2 Bedroom / 1 Bath 6 $8,460 $50,760 $9,480 $56,880

TOTALS 39 $253,620 $284,760

ANNUALIZED INCOMEActual Pro Forma

Gross Potential Rent $253,620 $284,760

Less: Vacancy ($12,681) ($14,238)

Misc. Income $9,612 $9,612

Effective Gross Income $250,551 $280,134

Less: Expenses ($98,633) ($86,343)

Net Operating Income $151,918 $193,791

Debt Service ($119,080) ($119,080)

Net Cash Flow after Debt Service $32,838 $74,711

Principal Reduction $44,693 $44,693

Total Return $77,532 $119,404

ANNUALIZED EXPENSES

Actual Pro FormaProperty Management Fee $12,528 $14,238

Administration $5,206 $5,206

Grounds $1,912 $1,912

Building Insurance $13,730 $13,730

Maintenance Supplies $4,767 $4,767

Repairs & Maintenance $6,706 $6,706

Contract Services $7,883 $7,883

Taxes $18,081 $18,081

Utilites $27,820 $13,820

Total Expenses $98,633 $86,343

Expenses Per RSF $3.42 $2.99

Expenses Per Unit $2,529 $2,214

INVESTMENT SUMMARY

Price: $2,350,000

Year Built: 1948

Units: 39

Price/Unit: $60,256

RSF: 28,846

Price/RSF: $81.47

Lot Size: 0.49 acres

Floors: 3

Parking Spaces: Ample

APN: 45930000300

Cap Rate: 6.46%

Pro Forma Cap Rate: 8.25%

GRM: 8.93

Pro Forma GRM: 7.98

FINANCING SUMMARY

Loan Amount: $1,880,000

Down Payment: $470,000

Loan Type: Balloon

Interest Rate: 4%

Term: 5 years

Monthly Payment: $9,923

DCR: 1.28

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Financial IndicatorsOakland Apartments



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Gross Rent Multiplier 8.93 8.68 8.43 8.20 7.96 7.74 7.52 7.31 7.10 6.90

Capitalization Rate 6.46% 6.76% 7.06% 7.37% 7.69% 8.02% 8.35% 8.70% 9.06% 9.43%

Cash On Cash Return b/t 6.99% 8.45% 9.95% 11.50% 13.10% 8.94% 9.32% 9.70% 10.11% 10.52%

Cash On Cash Return a/t 6.99% 8.45% 9.95% 11.50% 13.10% 8.94% 9.32% 9.70% 10.11% 10.52%

Debt Coverage Ratio 1.28 1.33 1.39 1.45 1.52 N/A N/A N/A N/A N/A

Gross Income per Sq. Ft. $9.13 $9.39 $9.66 $9.94 $10.23 $10.53 $10.83 $11.15 $11.47 $11.81

Expenses per Sq. Ft. ($3.42) ($3.43) ($3.44) ($3.46) ($3.47) ($3.49) ($3.50) ($3.52) ($3.53) ($3.55)

Net Income Multiplier 15.47 14.80 14.17 13.57 13.01 12.48 11.97 11.49 11.03 10.60

Operating Expense Ratio 39.37% 38.40% 37.46% 36.55% 35.67% 34.80% 33.96% 33.14% 32.35% 31.58%

Loan To Value Ratio 78.10% 76.12% 74.06% 71.91% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Footnotes: b/t = before taxes; a/t = after taxes

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Property PhotosOakland Apartments



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Maps and AerialsOakland Apartments



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Oakland.pdf

Documents

operating expenses

monthly expenses

investment cash

income expensesgross

net operating income

expenses cash flowgross

louis zoosnew development

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