BROKER OPINION OF VALUE 60 Units | 2013 Placed in Service 613 S. Guthrie Ave. Coweta, OK 74429
3 PROPERTY INFORMATION Property .............................................. Coweta Apartments Address ................................................ 613 S. Guthrie Ave. City, State, Zip ......................................... Coweta, OK 74429 Units ................................................................................ 60 Year Built ..................................................................... 1972 Year Rehabbed ............................................................ 2013 Style ........................................................... 2-Story Garden Net Rentable SF ................................... 46,012 Square Feet Acreage .............................................................. 4.66 Acres Density ..................................................... 12.88 Units/Acre County .................................................................. Wagoner %REGULATORYUnitsAffordable ..................................................... 100% Year Placed in Service ................................................. 2013 Defer Tax Credit Start Year? .......................................... Yes End of Initial Compliance ............................................ 2028 End of LIHTC Restrictions ........................................... 2053 HAP Renewal Effective Date ................................. 1/1/2013 HAP Contract Term ............................................... 20 Years Qualified Contract Eligible ............................................. No Located in QCT................................................................ No Located in Opportunity Zone .......................................... No UNITS 60 RENTABLE SF 46,012 YEAR BUILT 1972 LOT SIZE (ACRES) PropertyWell-Maintained4.66LIHTCwithaHAPContractCovering58UnitsStrong AMI Growth in Wagoner County with a 19.87% Increase Since 2016 Coweta is a Suburb of Tulsa and is Located Less Than 30 Minutes Southeast of DowntownTulsa Conveniently Located Near Shopping, Dining, Schools, and Major Transportation Arteries PROPERTY DETAILS
Coweta Apartments offers one, two, and three bedroom apartment homes. Residents enjoy a variety of community amenities that include a basketball court, BBQ and picnic area, business center, and on-site laundry facility.
AMENITIES • Basketball Court • BBQ/Picnic Area • Business Center • Handicap Accessible • Landscaped Grounds • Laundry Facility PROPERTY OVERVIEW
4
Coweta Apartments is a 60-unit affordable housing community located in Coweta, OK. The property is conveniently located minutes from shopping, dining, schools, and major transportation arteries.
The property was built in 1972 and rehabbed and placed in service in 2013 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place which require all units to be rented to income qualifying residents earning no more than 50% of the Area Median Income (AMI) limits, which are provided by the Oklahoma Housing Finance Agency (OHFA). Additionally, the property is also a recipient of HUD Section 8 project based rental income assistance pursuant to a Housing Assistance Payment (HAP) contract. The current contract has an effective beginning date of January 1, 2013 and provides assistance for all units. Within the contract, Section 2(b) states that the contract runs for an effective term of 20 years, expiring on January 1, 2033. Per the Preservation Exhibit, the Renewal Contract shall automatically renew for a term of 29 months beginning on January 1, 2033.
5 E 151st StGAveSS NORTH BOUNDARY AERIAL
7 COWETA NEIGHBORHOODAPARTMENTSQUICKFACTSCOWETA,OK FROM PROPERTYTHE4.6mi SUPPORTEDJOBS250 OCCUPIEDSF138k DEMAND DRIVER Walmart Supercenter NEIGHBORHOOD SHOPPING Target | Marshalls | rue21 | Maurices | FamousPROPERTYFROMFootwearTHE12.2mi STORES RESTAURANTSAND 300k SF DESTINATIONSHOPPING 40 The Shops of Broken Arrow FACILITYSFSUPPORTEDJOBS400 100k FROM PROPERTYTHE8.8mi NEIGHBORHOOD CONVENIENCES Within a five-mile drive of the property DEMAND DRIVER Zeeco, Inc - World Headquarters FROM PROPERTYTHE11.9mi SUPPORTEDJOBS680 FACILITYSF375k PRIMARY EDUCATION Southside ES (PK-3) | Heritage IGC (4-6) | Sloat Jr HS (7-8) Intermediate HS (9) | Coweta HS (10 - 12) SERVEDSTUDENTS3.3k ANDSCHOOLSCENTERS8 SUPPORTEDJOBS550 DEMAND DRIVER Flight Safety International - Manufacturing 11.1k Population (Within Three Miles) 23% Renter Occupied Housing Units (Within Three Miles) $145.7k Median Housing Unit Value (Within Three Miles) $60.3k Median Household Income (Within Three Miles) 43% of Workers are in Blue-Collar Positions (Within Three Miles) LOCATION QUICK FACTS
8 $3,400,000BOV PROFORMACAPRATE6.70%PRICE PER $56,667UNIT PROFORMA NO I $227,879 ANALYSISFINANCIAL
9 UNIT MIX UNIT TYPE SET-ASIDE OFNUMBERUNITS SIZEUNIT(RSF) ASKINGRENT RENTASKINGPSF PROFORMARENT PROFORMARENTPSF TCMAXRENT CURRENTUA MAX NET TC RENT FMR 1 BR 1 BTH HAP 8 624 $702 $1.13 $730 $1.17 $755 $0 $755 $724 1 BD UNIT TOTAL 8 4,992 $5,616 $5,841 $6,040 $6,040 $5,792 1 BD UNIT AVG 624 $702 $1.13 $730 $1.17 $755 $755 $724 2 BR 1 BTH HAP 24 679 $785 $1.16 $816 $1.20 $906 $0 $906 $925 2 BD UNIT TOTAL 24 16,296 $18,840 $19,594 $21,744 $21,744 $22,200 2 BD UNIT AVG 679 $785 $1.16 $816 $1.20 $906 $906 $925 3 BR 1 BTH HAP 26 883 $1,003 $1.14 $1,043 $1.18 $1,046 $0 $1,046 $1,219 3 BR 1 BTH 50% 2 883 $806 $0.91 $806 $0.91 $1,046 $0 $1,046 $1,219 3 BD UNIT TOTAL 28 24,724 $27,690 $28,733 $29,288 $29,288 $34,132 3 BD UNIT AVG 883 $989 $1.12 $1,026 $1.16 $1,046 $1,046 $1,219 TOTAL 60 46,012 $52,146 $54,167 $57,072 $57,072 $62,124 AVERAGE 767 $869 $1.13 $903 $1.18 $951 $951 $1,035 *The unit mix above was based on the 7/15/2022 rent roll and the January 1, 2022 HUD Rent Schedule. Analysis assumes a 5th year rent adjustment of 4% in the proforma year.
10 Coweta Apartments is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 50% of the local Area Median Income (AMI) for the county. TAX CREDIT PROPERTY INCOME LIMITS INCOME 50% 1 Person $28,200 2 Person $32,200 3 Person $36,250 4 Person $40,250 5 Person $43,500 6 Person $46,700 7 Person $49,950 TAX CREDIT MAXIMUM ALLOWABLE RENTS Set Aside TypeUnit # Unitsof TCMaxRent 50% 1 BD 8 $755 50% 2 BD 24 $906 50% 3 BD 28 $1,046 Area Income:Median$82,200Wagoner County Effective Year: 2022 Unit Breakdown by Unit Type 13% 4 40% 47% 1 BD 2 BD 3 BD Asking Rents to Fair Market Rents $702 $785 $989 $755 $906 $1,046 $0 $200 $400 $600 $800 $1,000 $1,200 1 BD 2 BD 3 BD Asking Rent Net Max Rent RENT & INCOME LIMITS
13 PROPOSED NEW FINANCING Low High Program Agency Agency Loan to Value % 80.00% 78.00% Interest Rate 4.30% 4.30% Interest Only Period (Months) 24 24 Amortization Period (Years) 30 30 Total Acquisition Cost $3,281,000 $3,584,000 Loan Amount $2,480,000 $2,652,000 Loan Fee @ 1.00% $24,800 $26,520 Down Payment $825,800 $958,520 Annual Debt Service - I/O $106,640 $114,036 Annual Debt Service - P&I $147,274 $157,488 FINANCING FINANCIAL SUMMARY YE 2021 Low High CAP Rate 5.86% 5.34% NOI $181,507 $181,507 Year 1 Debt Service $106,640 $114,036 Net Cash Flow After Debt Service $74,867 $67,471 Cash on Cash % 9.07% 7.04% Jun. 2022 T12 Low High CAP Rate 6.28% 5.73% NOI $194,746 $194,746 Year 1 Debt Service $106,640 $114,036 Net Cash Flow After Debt Service $88,106 $80,710 Cash on Cash % 10.67% 8.42% Jan.2022 HUD Rent Schedule / Underwritten Exp Low High CAP Rate 6.62% 6.03% NOI $205,175 $205,175 Year 1 Debt Service $106,640 $114,036 Net Cash Flow After Debt Service $98,535 $91,139 Cash on Cash % 11.93% 9.51% PROFORMA Low High CAP Rate 7.35% 6.70% NOI $227,879 $227,879 Year 1 Debt Service $106,640 $114,036 Net Cash Flow After Debt Service $121,239 $113,843 Cash on Cash % 14.68% 11.88% VITAL DATA
14 LOW HIGH BROKER'S OPINION OF VALUE $3,100,000 $3,400,000 OUTSTANDING DEBT AND MISCELLANEOUS PAYABLES As of Dec' 1st Mortgage Balance (Estimate) 2021 $2,025,023 $2,025,023 Prepayment Penalty 2021 $60,751 $60,751 Total Debt & Other Payables $2,085,774 $2,085,774 Net Proceeds After Debt and Other Payables $1,014,226 $1,314,226 AFFORDABILITY RESTRICTIONS NET PROCEEDS LIHTC Regulatory Agreement: 100% of units at 50% AMI with restrictions running through December 2053. HAP Contract: HAP Contract covering 58 units effective 1/1/2013 and has a 20 year term, expiring on 1/1/2033. Per the Preservation Exhibit, Renewal Contract shall automatically renew for a term of 29 months beginning on 1/1/2033. Annual contract rent increases are based on OCAF, with comparability adjustments occurring every 5 years. The last 5-year market comparability adjustment occurred on 1/1/2018. Analysis assumes a new 5th year rent adjustment in the proforma year. NET PROCEEDS
15 OPERATIONAL ANALYSIS YE 2021 PER UNIT Jun. 2022 T12 PER UNIT Jan.2022 HUD Rent Schedule Underwritten/Exp PER UNIT PROFORMA PER UNIT INCOME Gross Potential Rent $614,633 $10,244 $619,401 $10,323 $625,752 $10,429 $650,008 $10,833 Gain (Loss) to Lease (0.03%) ($205) ($3) 0.03% $160 $3 0.00% $0 $0 0.00% $0 $0 POTENTIAL RENTAL INCOME $614,428 $10,240 $619,561 $10,326 $625,752 $10,429 $650,008 $10,833 (1) % Increase over Prior Year 0.84% 1.00% 3.88% EconomicVacancyLossLoss 1.53% ($9,374) ($156) 1.09% ($6,753) ($113) 2.50% ($15,644) ($261) 2.50% ($16,250) ($271) (2) Bad Debt 0.21% ($1,296) ($22) 0.09% ($551) ($9) 0.00% $0 $0 0.00% $0 $0 Concessions (0.17%) $1,045 $17 (0.29%) $1,810 $30 0.00% $0 $0 0.00% $0 $0 Total Economic Loss 1.57% ($9,625) ($160) 0.89% ($5,494) ($92) 2.50% ($15,644) ($261) 2.50% ($16,250) ($271) NET RENTAL INCOME $604,803 $10,080 $614,067 $10,234 $610,108 $10,168 $633,758 $10,563 OtherLateIncomeFees $967 $16 $1,105 $18 $1,105 $18 $1,105 $18 Laundry and Vending Revenue $1,364 $23 $1,236 $21 $1,236 $21 $1,236 $21 Misc. Other Income $1,781 $30 $2,295 $38 $2,295 $38 $2,295 $38 Total Other Income $4,112 $69 $4,636 $77 $4,636 $77 $4,636 $77 EFFECTIVE GROSS INCOME $608,915 $10,149 $618,703 $10,312 $614,744 $10,246 $638,394 $10,640 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 4.04% $24,575 $410 4.12% $25,507 $425 5.63% $34,628 $577 5.42% $34,628 $577 (3) Total Property Insurance Expense 5.68% $34,562 $576 5.60% $34,623 $577 5.63% $34,623 $577 5.42% $34,623 $577 Total Property Utility Expense 15.72% $95,715 $1,595 17.55% $108,579 $1,810 17.66% $108,579 $1,810 17.01% $108,579 $1,810 TOTAL FIXED OPERATIONAL EXP 25.43% $154,852 $2,581 27.27% $168,709 $2,812 28.93% $177,830 $2,964 27.86% $177,830 $2,964 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 5.18% $31,536 $526 3.96% $24,506 $408 3.99% $24,506 $408 3.84% $24,506 $408 Total Repairs & Maintenance 9.95% $60,615 $1,010 8.17% $50,553 $843 4.88% $30,000 $500 4.70% $30,000 $500 (4) Total Administrative Expenses 4.40% $26,786 $446 4.40% $27,253 $454 4.43% $27,253 $454 4.27% $27,253 $454 Total Leasing & Marketing 0.43% $2,641 $44 0.42% $2,599 $43 0.00% $0 $0 0.00% $0 $0 (5) Total Payroll and Salary Expenses 17.44% $106,215 $1,770 17.06% $105,561 $1,759 17.17% $105,561 $1,759 16.54% $105,561 $1,759 Property Management Fee 4.09% $24,918 $415 4.03% $24,946 $416 4.00% $24,590 $410 4.00% $25,536 $426 (6) Compliance Fees 0.30% $1,846 $31 0.30% $1,830 $31 0.30% $1,830 $31 0.29% $1,830 $31 TOTAL VARIABLE OPERATIONAL EXP 41.80% $254,557 $4,243 38.35% $237,248 $3,954 34.77% $213,739 $3,562 33.63% $214,685 $3,578 TOTAL FIXED & VARIABLE EXPENSES 67.24% $409,408 $6,823 65.61% $405,957 $6,766 63.70% $391,569 $6,526 61.48% $392,515 $6,542 Reserves & Replacements $18,000 $300 $18,000 $300 $18,000 $300 $18,000 $300 TOTAL OPERATING EXPENSES 70.19% $427,408 $7,123 68.52% $423,957 $7,066 66.62% $409,569 $6,826 64.30% $410,515 $6,842 NET OPERATING INCOME $181,507 $3,025 $194,746 $3,246 $205,175 $3,420 $227,879 $3,798 INCOME & EXPENSES
16 (6)(5)(4)(3)(2)(1) REAL ESTATE TAX ANALYSIS Parcel #: 211184-00016-000000 2021 Proforma Sale Price Reassess To Land $426,690 $426,690 $3,400,000 95.00% Improvement $1,842,293 $2,803,310 Total Market Value $2,268,983 $3,230,000 Exemptions $0 $0 Value after Exemptions $2,268,983 $3,230,000 Assessment Ratio 11.20% 11.20% Assessed Value $254,126 $361,760 Tax Rate 9.572% 9.572% Ad Valorem Taxes $24,325 $34,628 Special Assessments $0 $0 Total Taxes Due $24,325 $34,628 Notes NOTES TO PROFORMA Potential Rental Income: Analysis assumes Proforma Rents as displayed on the Unit Mix Page. Vacancy: Based on the rent roll from 7/22/2022, occupancy is 100%. Analysis uses a 2.5% vacancy factor going forward. Repairs and Maintenance: Analysis reduces "Contract Repairs - REAC" line item expenses in line with market comparables. Real Estate Taxes: See notes below. Marketing and Leasing: Analysis removes this expense moving forward due to the HAP contract and the historical occupancy averaging 98%+ over the previous 24 months. Property Management Fee: Adjustment based on market comparables. Per the County Assessor's, taxes are calculated by utilizing an 11.2% assessment ratio and a 9.572% tax rate. Analysis assumes that the property will be based on a reassessment at time of sale. Proforma real estate taxes are calculated using the current tax rate and an assessed value of 95% of the High BOV Price. NOTES TO INCOME & EXPENSES
17 PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Potential Rent Growth NA 2.00% 2.00% 2.00% 4.00% 2.00% 2.00% 2.00% 2.00% 4.00% Other Income Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Loss to Lease 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vacancy 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Bad Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Concessions 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Property Taxes NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Insurance NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Utilities NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Property Management Fee 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Other Expenses NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Replacement Reserves NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CASH FLOW
18 CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 INCOME Gross Potential Rent $650,008 $663,008 $676,269 $689,794 $717,386 $731,734 $746,368 $761,296 $776,521 $807,582 Gain (Loss) to Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 POTENTIAL RENTAL INCOME $650,008 $663,008 $676,269 $689,794 $717,386 $731,734 $746,368 $761,296 $776,521 $807,582 Economic Operational Loss Vacancy Loss ($16,250) ($16,575) ($16,907) ($17,245) ($17,935) ($18,293) ($18,659) ($19,032) ($19,413) ($20,190) Bad Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operational Loss ($16,250) ($16,575) ($16,907) ($17,245) ($17,935) ($18,293) ($18,659) ($19,032) ($19,413) ($20,190) NET RENTAL INCOME $633,758 $646,433 $659,362 $672,549 $699,451 $713,440 $727,709 $742,263 $757,108 $787,393 Total Other Income $4,636 $4,752 $4,870 $4,992 $5,117 $5,245 $5,376 $5,510 $5,648 $5,789 EFFECTIVE GROSS INCOME $638,394 $651,185 $664,232 $677,541 $704,568 $718,685 $733,085 $747,774 $762,757 $793,182 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $34,628 $35,667 $36,737 $37,839 $38,974 $40,143 $41,347 $42,588 $43,865 $45,181 Total Property Insurance Expense $34,623 $35,489 $36,376 $37,286 $38,218 $39,173 $40,153 $41,156 $42,185 $43,240 Total Property Utility Expense $108,579 $111,293 $114,075 $116,927 $119,850 $122,847 $125,918 $129,066 $132,292 $135,600 TOTAL FIXED OPERATIONAL EXP $177,830 $182,449 $187,188 $192,052 $197,042 $202,163 $207,418 $212,810 $218,343 $224,021 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $24,506 $25,119 $25,747 $26,391 $27,051 $27,727 $28,420 $29,130 $29,859 $30,605 Total Repairs & Maintenance $30,000 $30,750 $31,519 $32,307 $33,114 $33,942 $34,791 $35,661 $36,552 $37,466 Total Administrative Expenses $27,253 $27,934 $28,632 $29,348 $30,082 $30,834 $31,605 $32,395 $33,205 $34,035 Total Leasing & Marketing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Payroll and Salary Expenses $105,561 $108,200 $110,905 $113,677 $116,519 $119,432 $122,418 $125,478 $128,615 $131,831 Property Management Fee $25,536 $26,047 $26,569 $27,102 $28,183 $28,747 $29,323 $29,911 $30,510 $31,727 Compliance Fees $1,830 $1,830 $1,830 $1,830 $1,830 $1,830 $1,830 $1,830 $1,830 $1,830 TOTAL VARIABLE OPERATIONAL EXP $214,685 $219,880 $225,202 $230,654 $236,779 $242,512 $248,387 $254,405 $260,571 $267,494 TOTAL FIXED & VARIABLE EXPENSE $392,515 $402,329 $412,390 $422,706 $433,821 $444,675 $455,805 $467,215 $478,914 $491,515 Replacement Reserves $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 TOTAL OPERATING EXPENSES $410,515 $420,329 $430,390 $440,706 $451,821 $462,675 $473,805 $485,215 $496,914 $509,515 PROPERTY NET OPERATING INCOME $227,879 $230,856 $233,842 $236,835 $252,747 $256,010 $259,280 $262,558 $265,842 $283,667 1ST MTG DEBT SERVICE EXPENSES First Mortgage Interest $114,036 $114,036 $113,169 $111,226 $109,197 $107,079 $104,868 $102,560 $100,151 $97,636 First Mortgage Principal $0 $0 $44,319 $46,262 $48,291 $50,409 $52,620 $54,928 $57,337 $59,851 TOTAL 1ST MTG DEBT SERVICE $114,036 $114,036 $157,488 $157,488 $157,488 $157,488 $157,488 $157,488 $157,488 $157,488 CASH FLOW AFTER DEBT SERVICE $113,843 $116,820 $76,354 $79,347 $95,260 $98,522 $101,793 $105,071 $108,355 $126,179 DEBT SERVICE COVERAGE RATIO 2.00 2.02 1.48 1.50 1.60 1.63 1.65 1.67 1.69 1.80 INDICATED CAPITALIZATION RATE 6.70% 6.79% 6.88% 6.97% 7.43% 7.53% 7.63% 7.72% 7.82% 8.34% CASH ON CASH RETURN 11.88% 12.19% 7.97% 8.28% 9.94% 10.28% 10.62% 10.96% 11.30% 13.16% Concessions CASH FLOW
19 100%OCCUPANCYAPARTMENTSCOWETA $0.96RENT/SFAVERAGECOMPARABLES96%OCCUPANCYAVERAGECOMPARABLES $1.13CURRENTAPARTMENTSCOWETARENT/SF COMPARABLESRENT
20 RENT COMPARABLES MAP
22 RENT COMPARABLESCOWETAAPARTMENTS 613 S. Guthrie Ave. Coweta, OK 74429 RENT ANALYSIS OCCUPANCY 100% UNITS 60 YEAR BUILT/RENO 1972/2013 RENT SF RENT/SF 1 BEDROOM $702 624 $1.13 2 BEDROOM $785 679 $1.16 3 BEDROOM $989 883 $1.12 STEEPLECHASE 27185 E. 121st St. S. Coweta, OK 74429 RENT ANALYSIS OCCUPANCY 96% UNITS 96 YEAR BUILT 2000 RENT SF RENT/SF 1 BEDROOM $725 655 $1.11 2 BEDROOM $869 925 $0.94 3 BEDROOM $989 1,130 $0.88 INVERNESS APARTMENTS 5150 S. Elm Pl. Broken Arrow, OK 74011 RENT ANALYSIS OCCUPANCY 95% UNITS 91 YEAR BUILT 1985 RENT SF RENT/SF 1 BEDROOM $730 655 $1.11 2 BEDROOM $952 1,031 $0.92 Tenants pay electric. Tenants pay all utilities.
23 95% 96% 96% 100%100%99%98%97%96%95%94%93%92% Inverness Apartments Steeplechase Average Coweta Apartments OCCUPANCY
24 $702 $725 $728 $730 $1.13 $1.11 $1.11 $1.11 $1.20$1.00$0.80$0.60$0.40$0.20$0.00$735$730$725$720$715$710$705$700$695$690$685 Coweta Apartments Steeplechase Average Inverness Apartments $/UNIT $/SF ONE BEDROOM ANALYSIS
25 $785 $869 $911 $952 $1.16 $0.94 $0.93 $0.92 $1.20$1.00$0.80$0.60$0.40$0.20$0.00$1,000$900$800$700$600$500$400$300$200$100$0 Coweta Apartments Steeplechase Average Inverness Apartments $/UNIT $/SF TWO BEDROOM ANALYSIS
27 POPULATIONCOWETA (2022) 9,596 WAGONER 5.41%INCREASEPOPULATIONESTIMATEDCOUNTYBY2026 ••••••EMPLOYERSMAJORSt.FrancisHospitalSt.JohnMedicalCenterBankofOklahomaTotalMedicalPersonnelServiceWestCorpFordMotorCompany LOCATIONTHE
28 ECONOMIC AND DEMOGRAPHIC OVERVIEWBERKADIATULSA, OKLAHOMA | MSA DEMOGRAPHICS38.1MEDIANAGEINTHETULSAMSA 38% OF WORKERS ARE BLUE-COLLARINPOSITIONSMETROWIDE 233.3 K KEY RENTER AGE GROUP RESIDENTS BETWEEN 18 AND 35 YEARS OLD 1.0 M $67.2 K 131.9 K 269.4 K 83.2 Metro Tulsa's population is forecast to grow 3.4% over the next five years, surpassing 1.0 million residents The Tulsa MSA's median household income is projected to reach $67,232 by 2027, up 14.2% from 2022 Approximately 30% of the Tulsa MSA's households are renter-occupied 40% of residents age 25 years and older have obtained a high school diploma or less The Tulsa MSA boasts an affordable cost of living with an index score of 83.2, compared to 100.0 nationally
$783 $818 $842 $865 $898 $896 $925$800$600$650$700$750$850$900$950 2016 2017 2018 2019 2020 2021 2022 HUD Fair Market Rent Fair Market Rent TULSA MSA HUD FAIR MARKET RENT
29 ECONOMIC AND DEMOGRAPHIC OVERVIEWBERKADIATULSA, OKLAHOMA | MSA HUD FAIR MARKET RENT FAIR MARKETRENT $925 for a two-bedroom unit, up 3.2% from one year prior The Tulsa MSA is the second largest metro in Oklahoma and is located along the Arkansas River in the northeast part of the state. The city of Tulsa is well known for its vibrant art scene and is a hub for sectors like finance, aviation, telecommunications, and technology.
According to the U.S. Department of Housing and Urban Development (HUD), monthly fair market rent in the Tulsa MSA ranged from $646 for an efficiency unit to $1,428 for a four-bedroom unit in FY 2022. The fair market rent for a two-bedroom apartment unit was $925 per month in the metro, up 3.2% from FY 2021. Since 2016, fair market rent for a twobedroom apartment unit in the Tulsa MSA has increased by 13.1%. Fair market rent in the Tulsa MSA, increased across efficiency, one-, three-, and four-bedroom unit types in FY 2022. FMR for efficiency units in the Tulsa MSA rose the most, with a 6.4% year-over-year increase, reaching $646 per month. Meanwhile, FMR for one-bedroom units appreciated 3.9% annually to $724 per month. Over the same time period, three-bedroom FMR grew 2.7% year-over-year to $1,219 per month. FMR for four-bedroom units also increased 3.4% annually to $1,428 per month in FY 2022. Existing inventory for fully affordable communities in the Tulsa MSA consisted of 11,288 units across 135 apartment communities as of July 2022. There are currently 249 affordable apartment units under construction in the Tulsa MSA.
The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.
Berkadia® is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: http://www.berkadia.com/legal/licensing.
JEFF IRISH Senior Managing Director jeff.irish@berkadia.com208.286.5013 Senior Managing Director
brandon.grisham@berkadia.com253.653.3313
TREVOR MADDEN trevor.madden@berkadia.com406.459.9221Director BOISE OFFICE 6225 North Meeker www.Berkadia.comBoise,SuitePlace210ID83713
INVESTMENT ADVISORS
© 2022 Berkadia Proprietary Holding LLC
DISCLAIMER & CONFIDENTIALITY
JOHNATHAN SMITH Senior johnathan.smith@berkadia.com206.856.1707Director
The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/ or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential. This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry.
Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.
BRANDON GRISHAM
For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com
© 2022 Berkadia Proprietary Holding LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.
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