231-233 WHITESELL STREET | MONMOUTH, OREGON 97361
231-233 WHITESELL STREET | MONMOUTH, OREGON 97361
DIRECTLY ADJACENT TO WESTERN OREGON UNIVERSITY WITH AN ANNUAL ENROLLMENT OF 6,100 AND GROWING.
REPRESENTATIVE PHOTOGRAPH
www.MarcusMillichap.com
|disclaimer
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS AS FOLLOWS:
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
REAL ESTATE INVESTMENT SALES | FINANCING | RESEARCH | ADVISORY SERVICES
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 2
|investment overview INVESTMENT OVERVIEW Marcus & Millichap has been selected to exclusively market for sale University Townhomes located in Monmouth, Oregon. This is a 22 unit student housing (11 Full Unit Rentals and 55 Rentals by the bed), energy efficient complex built in part in 2012 and in part in 2014 on a 1.110 acre lot in a quiet, densely residential, neighborhood. The complex includes 13 five-bedroom three-bath units rented both by the unit and by the bed with about 1,700 square feet of living space per unit and each with a double car, 360 square foot garage; 2 fourbedroom two and one half-bath units rented by the unit with about 1,632 square feet of living space and 7 five-bedroom five-bath units rented both by the unit and by the bed with about 1,782 square feet of living space and each with a double car, 370 square foot garage. The units rented by the bed include a monthly cleaning service covered by Landlord. This fee amounts to $25 per month per bed and has cut down drastically on annual pest control and turnover costs that are often high in student housing facilities. The units rented by the bed, even with the additional landlord provided perks, gross higher rent on average than the units rented by the unit. Units rented by the unit are generally signed up on 12 month leases unless tenants wish to pay an additional monthly premium of $150 - $200 per month for a 9 month lease. Each unit includes a washer and dryer and are individually metered for electric and water to include sewer. Full units rentals establish this on their own behalf. All five bedroom units come equipped with two five gallon hot water tanks. The grounds consist of grass, small shrubs and multiple small trees providing privacy, easy maintenance and low cost upkeep while keeping the overall complex aesthetically pleasing. Landlord covers water and electric for the units rented by the bed but have increased rental rates slightly to cover this additional cost. Located directly adjacent to Western Oregon University established in 1856 with an
INVESTMENT HIGHLIGHTS •
Newly Built Complex on 1.11 Acres
•
High Quality Construction with Energy Efficient Units
•
Each Unit Includes Washer and Dryer
•
Excellent Location Adjacent to Western Oregon University
annual enrollment of 6,188 students and sitting on a campus of approximately 157 acres, this property sits within a dense residential area of Monmouth. Monmouth is about 16 miles southwest of Salem (Oregon’s capital) and 63 miles south of Portland. Western Oregon University is completing a new teaching facility this fall and expects enrollment to grow. With a current enrollment of 6,188, there are only 1,450 oncampus beds for students currently.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 3
|investment overview
PROPERTY DETAILS VITAL DATA
Click Me!
5.95%
CAP Rate - Current
10.45
GRM - Current
address: 231-233 Whitesell Street, Monmouth, OR 97361
$395,782
Net Operating Income - Current
7.13%/$118,607
Net Cash Flow After Debt Service - Current Price Cap Rate Down Payment Price/Unit Price/SF Number of Units Rentable Living Space Square Feet Garage Square Feet Total Square Feet Average Square Feet Per Unit Average Monthly Rent Per Unit Year Built Lot Size Number of Buildings Number of Stories
$6,650,000 5.95%
$91,709
Principle Reduction
12.65%/$210,316
Total Return with Principle Reduction- Current
$1,662,500 $302,272 $175.75 22 *11 Full Unit Rentals and 55 Rentals by the bed
37,838 SF 7,270 SF 45,108 SF 1,720 SF $1,800-$2,770
FINANCING Interest Rate Amortization Period Annual Loan Constant Maturity Date Loan to Value Loan Amount
$4,987,500
Down Payment
$1,662,500
3.75% 30 Years 5.56% 10 Years 75%
Annual Debt Service
$277,155
2012/2014 1.11 Acres 6 3 (with garages)
Occupancy Note: Occupancy varies due to the nature of student housing (typically 9-12 month leases). Occupancy during summer is generally lighter than during fall, winter and spring; however this property see a stabilization of occupancy in summer months from international students and student athletes who stay on campus for spring and summer training camps.
UNIT MIX NUMBER OF UNITS
UNIT TYPE
RENTED AS
APPROX. SQUARE FEET
4
5-bed, 3-bath
Full Unit
1,700
9
5-bed, 3-bath
By the Bed
1,700
2
4-bed, 2.5-bath
Full Unit
1,632
5
5-bed, 5-bath
Full Unit
1,782
2
5-bed, 5-bath
By the Bed
1,782
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 4
|investment overview
PROPERTY DETAILS THE OFFERING
INCOME AND EXPENSES
Property Name:
University Townhomes
Address:
231-233 Whitesell Street, Monmouth, OR
Assessor’s Parcel #
303998, 449609, 193434 and 568319
Apartment Rent
Zoning:
RH (High Density Residential)
Application/Deposit Forfiture
SITE DESCRIPTION
Current
Per Unit
$628,740
$16.62
$1,800-$2,770
$7,500
$.20
$341
Gross Income
$636,240
$16.81
$28,920
Density:
Residential, College
Parking:
5 spaces, 20 double car garages, streetside
Vacancy @ 8%
$50,299
$1.33
$2,286
20 (double car)
Effective Gross Income
$585,941
$15.56
$26,770
$64,540
$1.71
$2,934
Garages:
*All units have asphalt entry drive access
Bike Racks:
2 with 5-6 stalls each
Landscaping:
Grass, bush, short privacy trees
Property Tax
Topography:
Flat
Property Insurance
$6,638
$.18
$302
Water/Sewer/Electric
$31,006
$.82
$1,409
Reimbursed by Unit Rentals, not Reimbursed by Bedroom Rentals
General Repairs/Contracted Maintenance
$12,500
$.33
$568
Trash Removal
$7,302
$.19
$332
Reimbursed by Unit Rentals, not Reimbursed by Bedroom Rentals
Internet/Cable
$5,280
$.14
$240
Landscaping
$4,905
$.13
$223
Turnover
$7,500
$.20
$341
Cleaning Single Rooms
$17,850
$.47
$811
Hardi Plank (over 2x6 Wood Studs)
Management Fee (5%)
$28,900
$.76
$1,314
Parking Surface:
Asphalt
Reserves ($0.10 psf)
$3,738
$.10
$170
Roof:
30 Year Composition Shingle
Total Operating Expenses
$190,159
$5.03
$8,644
Gutters/Downspouts:
Galvanized Metal
Total Expenses as a % EGI
32%
Window (Type):
Double Pane Vinyl
Foundation Walls:
Poured in Place Concrete
Net Operating Income
$395,782
$10.46
$17,990
Crawl Space:
Yes
Patios/Balconies:
Yes
Heat Source:
Forced Air Wall Units
UTILITIES
Water*: Electric*: CONSTRUCTION
Foundation:
Concrete
Framing:
Wood
Exterior:
SPECIAL FEATURES:
Ceiling fans in all living areas and bedrooms. Garage door openers. Appliances include range, dishwasher, microwave and vent hood. Underground sprinkler system. All units have concrete entry porches and decks with railing. Vaulted upper level ceilings. All units come with washer and dryer. All units individually metered for electric and water to include sewer. *11 full unit rentals and 11 units rented by the bedroom (70 total bedroom rentals)
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 5
|photos PROPERTY PHOTOS
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 6
| local map | address 231-233 Whitesell Street Monmouth, OR 97361
The property is located directly adjacent to the 157-acre Western Oregon University which has a total enrollment of approximately 6,100 students.
University Townhomes
99W
ST. MARY’S PLAZA
Pacific Highway W
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 7
UNIVERSITY TOWNHOMES 231- 233 WHITESELL STREET
| property location
▲
Monmouth is located just 15 miles
southwest of Salem, the state’s capital, and approximately 60 miles south from
Portland. North-south Pacific Highway
W (99W) serves as the main arterial through town.
VANCOUVER PORTLAND
SALEM
MONMOUTH
EUGENE
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 8
| demographics
464 411 323 141 125
Partnerships in Community Living Inc. Western Oregon University Mountain Forestry Inc.
INDEPENDENCE AMPHITHEATER
Elkay Manufacturing Company
- Independence, Oregon -
Robert Lloyd Sheet Metal Inc.
10 MILES 3 Miles
5 miles
10 miles
average
$53,452
$56,476
$71,104
median
$40,707
$43,701
$56,022
5 MILES
3 MILES 3 Miles
5 miles
10 miles
2010
18,838
21,826
82,966
2015
19,549
22,606
85,391
2020
21,014
24,220
90,355
9 | UNIVERSITY TOWNHOMES - MONMOUTH, OR
MONMOUTH UNIVERSITY TOWNHOMES 231- 233 WHITESELL STREET
9
| location overview
MONMOUTH, OREGON Monmouth is a town in Polk County Oregon with a population of approximately 22,000 residents (2015). It was named for Monmouth, Illinois, the origin of its earliest settlers. Monmouth is also part of the Salem Metropolitan Statistical Area which has an approximate population of 396,338 (2015). Monmouth is located directly on Pacific Highway W/99-W, a major arterial through town. Nearby Independence, a small neighboring town of approximately 9,000 residents, also shares the same major thoroughfare. They are both located approximately 20 minutes southwest of Salem, the state’s capital, and approximately 75 minutes south of Portland, the state’s cultural hub. COUNTY PROFILE
The Polk County area is fairly diverse and greatly influenced by an economy dominated by governmental services, agriculture, retail trade, manufacturing, forest products, health services, education and tourism. The local region has exceeded the national average since 1986 and its downturn in 1991 was far below the national average. The subject area has a history of relatively low unemployment and healthy new construction activity in the recent past. Overall, in the long term, the area’s economy is expected to continue growing and the area is seen as a highly desirable place to live. STRONG UNIVERSITY PRESENCE
Monmouth is home to both Western Oregon University and Chemeketa Community College - Eola campus. Western Oregon University is a leading public liberal arts institution with an approximate total enrollment of more than 6,100 students with popular majors such as Business, Criminal Justice, Education, Exercise Science and Psychology. The university is also the recipient of the Christa McAuliffe award ACKERMAN HALL - WESTERN OREGON UNIVERSITY - MONMOUTH
as one of the top teacher education programs in the nation and currently produces the second largest number of new teachers in the state with approximately 80 percent of school districts employing its alumni as teachers and administrators. The College of Education recently received a $1.4 million gift which will help create the $18.6 million Richard Woodcock Education Center; a 58,000 square foot facility scheduled to open in the fall of 2016. The university is also known for its large-scale, new construction residence hall, first in the country to achieve the highest LEED certification available. The residence hall, Ackerman Hall, features solar panels, heat ducts that heat air and water, occupancy sensors, low flow water devices in all restrooms and re-purposed wood throughout the building that was taken from trees that were removed from the building site during construction. Chemeketa’s 55-acre Eola campus offers comprehensive programs that compliment the agricultural abundance of the valley including horticulture and agri-business management. Wine studies include viticulture, enology, and wine business and include an eight-acre vineyard and wine making studio. POPULAR WINE DESTINATION
The Monmouth countryside boasts of notable vineyards including Airlie Winery, Emerson Vineyards, Eola Hills Wine Cellars, Left Coast Cellars, Namaste Vineyards and many others. Known as the historic hop capital of the world, nearby Independence attracts thousands to its annual Hop & Heritage Festival. Award winning microbrews and craft beers are grown in Polk County such as Rogue Ales which has a 42-acre hopyard in Independence. DESIRABLE LOCATION
Monmouth’s location plays a role in its livability with close proximity to Salem (16 miles northwest), Portland (63 miles north) and the coast (53 miles west) and the mountains (106 miles east) with a projected population increase of 1.5 percent annually through 2020. The area offers residents an 18-hole, Oak Knoll Golf Course, the Riverview Market and the Smith Fine Arts Series, which provides quality performing arts presentations for the community. The area is also characterized by a longer term history of stable, moderate economic growth, with the public’s general attitude toward controlled and planned expansion offering a desirable environment for continued growth and real estate investment. The current significant growth in Western Oregon University also bodes well for the subject’s proposed project.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 10
| developer’s resume
ABOUT THE DEVELOPER
The developer has fully completed and leased up four student housing projects similar to the subject in 2009 and 2010. Two of these projects are in Eugene near the University of Oregon campus, and the remaining two are located in Corvallis near the Oregon State University campus. The first student housing complex in Eugene is located at 1875 Alder Street. This is a 20 unit complex with a total of 96-bedrooms completed in July of 2009. Sixteen of the units are 5-bedroom and 3-bath, while four are 4-bedroom and 2-bath units. The second is the Patterson Court development located at 945 Patterson Court. This is an eight unit development with a total of 40-bedrooms completed in August of 2010. All units are 5-bedroom and 3-bath. The third project is an 11 unit, 55-bedroom, three story student housing complex called Rachal Manor Townhomes that was completed in August of 2009. This development is located at 2245 NW Harrison Boulevard in Corvallis. All units are 5-bedroom and 3-bath with 2-car garages. The fourth project is a three story, 15 unit, 75-bedroom complex called the Chintimini Townhomes located at 2535 NW Taylor Avenue in Corvallis. This development was also completed in August of 2009. All units are 5-bedroom and 3-bath each with double garages.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 11
| sales comparables
COMPARABLE SALES- STUDENT HOUSING/MULTI-FAMILY RENTALS
NUMBER OF UNITS
ADDRESS
CLOSE DATE
SALE PRICE
LIVING AREA (Above Grade)
PRICE/PER/SQ. FT/BLDGING
PRICE PER UNIT
AGE
11
2245 NW Harrison Street Corvallis, Oregon
2010
$3,350,000
17,435 SF (Per Listing)
$192.14
$304,545
1 Year
15
2535 NW Taylor Avenue Corvallis, Oregon
2010
$4,550,000
23,775 SF (Per Listing)
$191.38
$303,333
1 Year
25
479-517 Monmouth Ave. S. Monmouth, Oregon
3/2010
$1,400,000
24,500 SF
$57.14
$56,000
40 Years
6
962-970 Monmouth Ave. Monmouth, Oregon
4/2009
$565,000
5,850 SF
$96.58
$94,167
8 Years
18
541-599 N. Catron Street Monmouth, Oregon
2010
$2,850,000
29,759 SF
$95.77
$158,333
13 Years
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 12
| rent comparables COMPARABLE RENTS - STUDENT HOUSING/MULTI-FAMILY RENTALS
BED/BATH/COUNTS
MONTHLY RENT PER UNIT
MONTHLY RENT PER BEDROOM
AGE OF BUILDING/NO OF UNITS
345 N. Monmouth Ave. Monmouth, Oregon
2 Bed/1.5 Bath
$1,000
$500
9 Years 16 Units
541-599 N Catron Street Monmouth, Oregon
4 Bed/2 Bath
$275
$1,100
13 Years 18 Units
324 S. Monmouth Monmouth, Oregon
4 Bed/3 Bath
$275
$1,100
7 Years 4 Units
960-970 S. Monmouth Ave. Monmouth, Oregon
(5) 3 Bed/2 Bath (1) 2 Bed/2 Bath
$367 $450
$1,100 $900
7 Years 6 Units
2245 NW Harrison Street Corvallis, Oregon
5 Bed/3 Bath
$469
$2,345
1 Year 11 Units
2535 NW Taylor Ave. Corvallis, Oregon
5 Bed/3 Bath
$469
$2,345
1 Year 15 Units
1867-1893 Alder Street Eugene, Oregon
(16) 5 Bed/3 Bath (4) 4 Bed/2 Bath
$475 $487
$2,375 $1,950
1 Year 20 Units
945 Patterson Court Eugene, Oregon
(16) 5 Bed/3 Bath
$470
$2,350
New 8 Units
LOCATION
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 13
| confidentiality disclaimer VINEYARDS NEAR MONMOUTH, OREGON
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide s u m m a r y, u n v e r i f i e d i n f o r m a t i o n t o p r o s p e c t i v e p u r c h a s e r s , a n d t o e s t a b l i s h o n l y a p r e l i m i n a r y l e v e l o f i n t e r e s t i n t h e s u b j e c t p r o p e r t y. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the i n c o m e o r e x p e n s e s f o r t h e s u b j e c t p r o p e r t y, t h e f u t u r e p r o j e c t e d f i n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y, t h e s i z e a n d s q u a r e f o o t a g e o f t h e p r o p e r t y a n d i m p r o v e m e n t s , t h e presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, o r t h e f i n a n c i a l c o n d i t i o n o r b u s i n e s s p r o s p e c t s o f a n y t e n a n t , o r a n y t e n a n t ’s p l a n s o r i n t e n t i o n s t o c o n t i n u e i t s o c c u p a n c y o f t h e s u b j e c t p r o p e r t y. T h e i n f o r m a t i o n c o n t a i n e d i n t h i s M a r k e t i n g B r o c h u r e h a s b e e n o b t a i n e d f r o m s o u r c e s w e b e l i e v e t o b e r e l i a b l e ; h o w e v e r, M a r c u s & M i l l i c h a p h a s n o t v e r i f i e d , a n d w i l l n o t v e r i f y, a n y o f t h e i n f o r m a t i o n contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 14
www.MarcusMillichap.com
WESTERN OREGON UNIVERSITY - MONMOUTH, OREGON
JOSEPH P. BLATNER
First Vice President
of
Investments
j o s e p h . b l at n e r @ m a r c u s m i l l i c h a p . c o m
PH : (503) 200-2029
DIRECTLY ADJACENT TO WESTERN OREGON UNIVERSITY WITH AN ANNUAL ENROLLMENT OF 6,100 AND GROWING.
REPRESENTATIVE PHOTOGRAPH
www.MarcusMillichap.com
|disclaimer
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS AS FOLLOWS:
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
REAL ESTATE INVESTMENT SALES | FINANCING | RESEARCH | ADVISORY SERVICES
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 2
|investment overview INVESTMENT OVERVIEW Marcus & Millichap has been selected to exclusively market for sale University Townhomes located in Monmouth, Oregon. This is a 22 unit student housing (11 Full Unit Rentals and 55 Rentals by the bed), energy efficient complex built in part in 2012 and in part in 2014 on a 1.110 acre lot in a quiet, densely residential, neighborhood. The complex includes 13 five-bedroom three-bath units rented both by the unit and by the bed with about 1,700 square feet of living space per unit and each with a double car, 360 square foot garage; 2 fourbedroom two and one half-bath units rented by the unit with about 1,632 square feet of living space and 7 five-bedroom five-bath units rented both by the unit and by the bed with about 1,782 square feet of living space and each with a double car, 370 square foot garage. The units rented by the bed include a monthly cleaning service covered by Landlord. This fee amounts to $25 per month per bed and has cut down drastically on annual pest control and turnover costs that are often high in student housing facilities. The units rented by the bed, even with the additional landlord provided perks, gross higher rent on average than the units rented by the unit. Units rented by the unit are generally signed up on 12 month leases unless tenants wish to pay an additional monthly premium of $150 - $200 per month for a 9 month lease. Each unit includes a washer and dryer and are individually metered for electric and water to include sewer. Full units rentals establish this on their own behalf. All five bedroom units come equipped with two five gallon hot water tanks. The grounds consist of grass, small shrubs and multiple small trees providing privacy, easy maintenance and low cost upkeep while keeping the overall complex aesthetically pleasing. Landlord covers water and electric for the units rented by the bed but have increased rental rates slightly to cover this additional cost. Located directly adjacent to Western Oregon University established in 1856 with an
INVESTMENT HIGHLIGHTS •
Newly Built Complex on 1.11 Acres
•
High Quality Construction with Energy Efficient Units
•
Each Unit Includes Washer and Dryer
•
Excellent Location Adjacent to Western Oregon University
annual enrollment of 6,188 students and sitting on a campus of approximately 157 acres, this property sits within a dense residential area of Monmouth. Monmouth is about 16 miles southwest of Salem (Oregon’s capital) and 63 miles south of Portland. Western Oregon University is completing a new teaching facility this fall and expects enrollment to grow. With a current enrollment of 6,188, there are only 1,450 oncampus beds for students currently.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 3
|investment overview
PROPERTY DETAILS VITAL DATA
Click Me!
5.95%
CAP Rate - Current
10.45
GRM - Current
address: 231-233 Whitesell Street, Monmouth, OR 97361
$395,782
Net Operating Income - Current
7.13%/$118,607
Net Cash Flow After Debt Service - Current Price Cap Rate Down Payment Price/Unit Price/SF Number of Units Rentable Living Space Square Feet Garage Square Feet Total Square Feet Average Square Feet Per Unit Average Monthly Rent Per Unit Year Built Lot Size Number of Buildings Number of Stories
$6,650,000 5.95%
$91,709
Principle Reduction
12.65%/$210,316
Total Return with Principle Reduction- Current
$1,662,500 $302,272 $175.75 22 *11 Full Unit Rentals and 55 Rentals by the bed
37,838 SF 7,270 SF 45,108 SF 1,720 SF $1,800-$2,770
FINANCING Interest Rate Amortization Period Annual Loan Constant Maturity Date Loan to Value Loan Amount
$4,987,500
Down Payment
$1,662,500
3.75% 30 Years 5.56% 10 Years 75%
Annual Debt Service
$277,155
2012/2014 1.11 Acres 6 3 (with garages)
Occupancy Note: Occupancy varies due to the nature of student housing (typically 9-12 month leases). Occupancy during summer is generally lighter than during fall, winter and spring; however this property see a stabilization of occupancy in summer months from international students and student athletes who stay on campus for spring and summer training camps.
UNIT MIX NUMBER OF UNITS
UNIT TYPE
RENTED AS
APPROX. SQUARE FEET
4
5-bed, 3-bath
Full Unit
1,700
9
5-bed, 3-bath
By the Bed
1,700
2
4-bed, 2.5-bath
Full Unit
1,632
5
5-bed, 5-bath
Full Unit
1,782
2
5-bed, 5-bath
By the Bed
1,782
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 4
|investment overview
PROPERTY DETAILS THE OFFERING
INCOME AND EXPENSES
Property Name:
University Townhomes
Address:
231-233 Whitesell Street, Monmouth, OR
Assessor’s Parcel #
303998, 449609, 193434 and 568319
Apartment Rent
Zoning:
RH (High Density Residential)
Application/Deposit Forfiture
SITE DESCRIPTION
Current
Per Unit
$628,740
$16.62
$1,800-$2,770
$7,500
$.20
$341
Gross Income
$636,240
$16.81
$28,920
Density:
Residential, College
Parking:
5 spaces, 20 double car garages, streetside
Vacancy @ 8%
$50,299
$1.33
$2,286
20 (double car)
Effective Gross Income
$585,941
$15.56
$26,770
$64,540
$1.71
$2,934
Garages:
*All units have asphalt entry drive access
Bike Racks:
2 with 5-6 stalls each
Landscaping:
Grass, bush, short privacy trees
Property Tax
Topography:
Flat
Property Insurance
$6,638
$.18
$302
Water/Sewer/Electric
$31,006
$.82
$1,409
Reimbursed by Unit Rentals, not Reimbursed by Bedroom Rentals
General Repairs/Contracted Maintenance
$12,500
$.33
$568
Trash Removal
$7,302
$.19
$332
Reimbursed by Unit Rentals, not Reimbursed by Bedroom Rentals
Internet/Cable
$5,280
$.14
$240
Landscaping
$4,905
$.13
$223
Turnover
$7,500
$.20
$341
Cleaning Single Rooms
$17,850
$.47
$811
Hardi Plank (over 2x6 Wood Studs)
Management Fee (5%)
$28,900
$.76
$1,314
Parking Surface:
Asphalt
Reserves ($0.10 psf)
$3,738
$.10
$170
Roof:
30 Year Composition Shingle
Total Operating Expenses
$190,159
$5.03
$8,644
Gutters/Downspouts:
Galvanized Metal
Total Expenses as a % EGI
32%
Window (Type):
Double Pane Vinyl
Foundation Walls:
Poured in Place Concrete
Net Operating Income
$395,782
$10.46
$17,990
Crawl Space:
Yes
Patios/Balconies:
Yes
Heat Source:
Forced Air Wall Units
UTILITIES
Water*: Electric*: CONSTRUCTION
Foundation:
Concrete
Framing:
Wood
Exterior:
SPECIAL FEATURES:
Ceiling fans in all living areas and bedrooms. Garage door openers. Appliances include range, dishwasher, microwave and vent hood. Underground sprinkler system. All units have concrete entry porches and decks with railing. Vaulted upper level ceilings. All units come with washer and dryer. All units individually metered for electric and water to include sewer. *11 full unit rentals and 11 units rented by the bedroom (70 total bedroom rentals)
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 5
|photos PROPERTY PHOTOS
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 6
| local map | address 231-233 Whitesell Street Monmouth, OR 97361
The property is located directly adjacent to the 157-acre Western Oregon University which has a total enrollment of approximately 6,100 students.
University Townhomes
99W
ST. MARY’S PLAZA
Pacific Highway W
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 7
UNIVERSITY TOWNHOMES 231- 233 WHITESELL STREET
| property location
▲
Monmouth is located just 15 miles
southwest of Salem, the state’s capital, and approximately 60 miles south from
Portland. North-south Pacific Highway
W (99W) serves as the main arterial through town.
VANCOUVER PORTLAND
SALEM
MONMOUTH
EUGENE
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 8
| demographics
464 411 323 141 125
Partnerships in Community Living Inc. Western Oregon University Mountain Forestry Inc.
INDEPENDENCE AMPHITHEATER
Elkay Manufacturing Company
- Independence, Oregon -
Robert Lloyd Sheet Metal Inc.
10 MILES 3 Miles
5 miles
10 miles
average
$53,452
$56,476
$71,104
median
$40,707
$43,701
$56,022
5 MILES
3 MILES 3 Miles
5 miles
10 miles
2010
18,838
21,826
82,966
2015
19,549
22,606
85,391
2020
21,014
24,220
90,355
9 | UNIVERSITY TOWNHOMES - MONMOUTH, OR
MONMOUTH UNIVERSITY TOWNHOMES 231- 233 WHITESELL STREET
9
| location overview
MONMOUTH, OREGON Monmouth is a town in Polk County Oregon with a population of approximately 22,000 residents (2015). It was named for Monmouth, Illinois, the origin of its earliest settlers. Monmouth is also part of the Salem Metropolitan Statistical Area which has an approximate population of 396,338 (2015). Monmouth is located directly on Pacific Highway W/99-W, a major arterial through town. Nearby Independence, a small neighboring town of approximately 9,000 residents, also shares the same major thoroughfare. They are both located approximately 20 minutes southwest of Salem, the state’s capital, and approximately 75 minutes south of Portland, the state’s cultural hub. COUNTY PROFILE
The Polk County area is fairly diverse and greatly influenced by an economy dominated by governmental services, agriculture, retail trade, manufacturing, forest products, health services, education and tourism. The local region has exceeded the national average since 1986 and its downturn in 1991 was far below the national average. The subject area has a history of relatively low unemployment and healthy new construction activity in the recent past. Overall, in the long term, the area’s economy is expected to continue growing and the area is seen as a highly desirable place to live. STRONG UNIVERSITY PRESENCE
Monmouth is home to both Western Oregon University and Chemeketa Community College - Eola campus. Western Oregon University is a leading public liberal arts institution with an approximate total enrollment of more than 6,100 students with popular majors such as Business, Criminal Justice, Education, Exercise Science and Psychology. The university is also the recipient of the Christa McAuliffe award ACKERMAN HALL - WESTERN OREGON UNIVERSITY - MONMOUTH
as one of the top teacher education programs in the nation and currently produces the second largest number of new teachers in the state with approximately 80 percent of school districts employing its alumni as teachers and administrators. The College of Education recently received a $1.4 million gift which will help create the $18.6 million Richard Woodcock Education Center; a 58,000 square foot facility scheduled to open in the fall of 2016. The university is also known for its large-scale, new construction residence hall, first in the country to achieve the highest LEED certification available. The residence hall, Ackerman Hall, features solar panels, heat ducts that heat air and water, occupancy sensors, low flow water devices in all restrooms and re-purposed wood throughout the building that was taken from trees that were removed from the building site during construction. Chemeketa’s 55-acre Eola campus offers comprehensive programs that compliment the agricultural abundance of the valley including horticulture and agri-business management. Wine studies include viticulture, enology, and wine business and include an eight-acre vineyard and wine making studio. POPULAR WINE DESTINATION
The Monmouth countryside boasts of notable vineyards including Airlie Winery, Emerson Vineyards, Eola Hills Wine Cellars, Left Coast Cellars, Namaste Vineyards and many others. Known as the historic hop capital of the world, nearby Independence attracts thousands to its annual Hop & Heritage Festival. Award winning microbrews and craft beers are grown in Polk County such as Rogue Ales which has a 42-acre hopyard in Independence. DESIRABLE LOCATION
Monmouth’s location plays a role in its livability with close proximity to Salem (16 miles northwest), Portland (63 miles north) and the coast (53 miles west) and the mountains (106 miles east) with a projected population increase of 1.5 percent annually through 2020. The area offers residents an 18-hole, Oak Knoll Golf Course, the Riverview Market and the Smith Fine Arts Series, which provides quality performing arts presentations for the community. The area is also characterized by a longer term history of stable, moderate economic growth, with the public’s general attitude toward controlled and planned expansion offering a desirable environment for continued growth and real estate investment. The current significant growth in Western Oregon University also bodes well for the subject’s proposed project.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 10
| developer’s resume
ABOUT THE DEVELOPER
The developer has fully completed and leased up four student housing projects similar to the subject in 2009 and 2010. Two of these projects are in Eugene near the University of Oregon campus, and the remaining two are located in Corvallis near the Oregon State University campus. The first student housing complex in Eugene is located at 1875 Alder Street. This is a 20 unit complex with a total of 96-bedrooms completed in July of 2009. Sixteen of the units are 5-bedroom and 3-bath, while four are 4-bedroom and 2-bath units. The second is the Patterson Court development located at 945 Patterson Court. This is an eight unit development with a total of 40-bedrooms completed in August of 2010. All units are 5-bedroom and 3-bath. The third project is an 11 unit, 55-bedroom, three story student housing complex called Rachal Manor Townhomes that was completed in August of 2009. This development is located at 2245 NW Harrison Boulevard in Corvallis. All units are 5-bedroom and 3-bath with 2-car garages. The fourth project is a three story, 15 unit, 75-bedroom complex called the Chintimini Townhomes located at 2535 NW Taylor Avenue in Corvallis. This development was also completed in August of 2009. All units are 5-bedroom and 3-bath each with double garages.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 11
| sales comparables
COMPARABLE SALES- STUDENT HOUSING/MULTI-FAMILY RENTALS
NUMBER OF UNITS
ADDRESS
CLOSE DATE
SALE PRICE
LIVING AREA (Above Grade)
PRICE/PER/SQ. FT/BLDGING
PRICE PER UNIT
AGE
11
2245 NW Harrison Street Corvallis, Oregon
2010
$3,350,000
17,435 SF (Per Listing)
$192.14
$304,545
1 Year
15
2535 NW Taylor Avenue Corvallis, Oregon
2010
$4,550,000
23,775 SF (Per Listing)
$191.38
$303,333
1 Year
25
479-517 Monmouth Ave. S. Monmouth, Oregon
3/2010
$1,400,000
24,500 SF
$57.14
$56,000
40 Years
6
962-970 Monmouth Ave. Monmouth, Oregon
4/2009
$565,000
5,850 SF
$96.58
$94,167
8 Years
18
541-599 N. Catron Street Monmouth, Oregon
2010
$2,850,000
29,759 SF
$95.77
$158,333
13 Years
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 12
| rent comparables COMPARABLE RENTS - STUDENT HOUSING/MULTI-FAMILY RENTALS
BED/BATH/COUNTS
MONTHLY RENT PER UNIT
MONTHLY RENT PER BEDROOM
AGE OF BUILDING/NO OF UNITS
345 N. Monmouth Ave. Monmouth, Oregon
2 Bed/1.5 Bath
$1,000
$500
9 Years 16 Units
541-599 N Catron Street Monmouth, Oregon
4 Bed/2 Bath
$275
$1,100
13 Years 18 Units
324 S. Monmouth Monmouth, Oregon
4 Bed/3 Bath
$275
$1,100
7 Years 4 Units
960-970 S. Monmouth Ave. Monmouth, Oregon
(5) 3 Bed/2 Bath (1) 2 Bed/2 Bath
$367 $450
$1,100 $900
7 Years 6 Units
2245 NW Harrison Street Corvallis, Oregon
5 Bed/3 Bath
$469
$2,345
1 Year 11 Units
2535 NW Taylor Ave. Corvallis, Oregon
5 Bed/3 Bath
$469
$2,345
1 Year 15 Units
1867-1893 Alder Street Eugene, Oregon
(16) 5 Bed/3 Bath (4) 4 Bed/2 Bath
$475 $487
$2,375 $1,950
1 Year 20 Units
945 Patterson Court Eugene, Oregon
(16) 5 Bed/3 Bath
$470
$2,350
New 8 Units
LOCATION
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 13
| confidentiality disclaimer VINEYARDS NEAR MONMOUTH, OREGON
The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide s u m m a r y, u n v e r i f i e d i n f o r m a t i o n t o p r o s p e c t i v e p u r c h a s e r s , a n d t o e s t a b l i s h o n l y a p r e l i m i n a r y l e v e l o f i n t e r e s t i n t h e s u b j e c t p r o p e r t y. T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the i n c o m e o r e x p e n s e s f o r t h e s u b j e c t p r o p e r t y, t h e f u t u r e p r o j e c t e d f i n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y, t h e s i z e a n d s q u a r e f o o t a g e o f t h e p r o p e r t y a n d i m p r o v e m e n t s , t h e presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, o r t h e f i n a n c i a l c o n d i t i o n o r b u s i n e s s p r o s p e c t s o f a n y t e n a n t , o r a n y t e n a n t ’s p l a n s o r i n t e n t i o n s t o c o n t i n u e i t s o c c u p a n c y o f t h e s u b j e c t p r o p e r t y. T h e i n f o r m a t i o n c o n t a i n e d i n t h i s M a r k e t i n g B r o c h u r e h a s b e e n o b t a i n e d f r o m s o u r c e s w e b e l i e v e t o b e r e l i a b l e ; h o w e v e r, M a r c u s & M i l l i c h a p h a s n o t v e r i f i e d , a n d w i l l n o t v e r i f y, a n y o f t h e i n f o r m a t i o n contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
UNIVERSITY TOWNHOMES - MONMOUTH, OR | 14
www.MarcusMillichap.com
WESTERN OREGON UNIVERSITY - MONMOUTH, OREGON
JOSEPH P. BLATNER
First Vice President
of
Investments
j o s e p h . b l at n e r @ m a r c u s m i l l i c h a p . c o m
PH : (503) 200-2029
