The Manors Apartments Oportunidad Inmobiliaria “Distressed Properties�
Thank you for your continued interest in the opportunity to acquire The Manors Apartments, a 93-unit, value-add multi-housing opportunity located in Palm Springs, Florida. Capital Brokers International Real Estate has completed underwriting on The Manors Apartments. We believe the following agency lender terms will be available to seasoned borrowers.
Loan to Value 70% LTV Term 5-10 Year Rate 4.15% Amortization 30-Year Security Non-Recourse
Loan to Value 65% LTV Term 3-5 Year Rate 3.75%-4.0% Amortization 30-Year Security Non-Recourse
The Manors Apartments 965 Manor Drive Palm Springs, Florida 33461
INVESTMENT HIGHLIGHTS PROVEN PERFORMANCE WITH STRONG MARKET FUNDAMENTALS. The Manors Apartments rents are below market in comparison to other rentals in the area. However, the property demonstrates consistent financial performance and offers tremendous upside potential. Capital Brokers Econometric Advisors anticipates an average rent growth of 3.1% during the next three years. These trends coupled with the tremendous value-add upside make acquiring The Manors Apartments at this time in the market cycle a compelling investment opportunity. INCREASED RETURN POTENTIAL WITH EXCELLENT VALUE-ADD POTENTIAL. The Manors’ thoughtful unit layouts and central location allow an investor to increase future cash flows by capitalizing on a value-add strategy. Recently, units were upgraded at Esperanza (located less than onemile from The Manors Apartments). These units upgrades are estimated to cost between $1,000 and $2,000 per unit (depending on the condition of the unit) and included new cabinets, laminate counter tops, and vinyl flooring. These units are now receiving more than $50 per unit per month rent premiums, and are now charging residents for water and sewer expenses. Current rents at the Manors Apartments are notably below market. The implementation of a value-add program at the property can bolster rents and still position the property favorably to its competitive subset. CENTRALLY LOCATED TO MAJOR EMPLOYMENT DISTRICTS. With immediate access to Interstate 95 (1.4 miles via 10th Avenue North), the Manors Apartments is within 20 minutes of Palm Beach’s two major employment centers — downtown West Palm Beach and Boca Raton. Ten minutes north of the property lies the West Palm Beach CBD featuring 5.6 million sq. ft. of office with access to over 30,000 jobs; twenty minutes south lies Arvida Park of Commerce, an 850-acre office park with over 11,000 employees; and two and a half miles south lies Quantum Corporate Office Park, a 500-plus acre commercial park supporting over 5,100 jobs. In addition, the community is less one-mile from Palm Beach State College which is the sixth largest of the 28 colleges comprising the Florida College System, serving over 49,000 students and home to over 1,000 employees.
SUBSTANTIAL DISCOUNT TO REPLACEMENT COSTS. Within Palm Beach County, there has been a continued reversion from the shadow inventory to professionally managed communities. This trend, along with the lack of quality product in the market, positions the Manors Apartments to benefit from the strong fundamentals anticipated for the market. Current replacement costs for a similar style asset would cost over $112,000 per unit. This does not account for the additional 25% that would be factored in for development and lease-up risk, which would push the cost to over $140,000 per unit. In order to substantiate these costs, rents would need to be more than double today’s effective rents in order to achieve a desired return on costs. POTENTIAL VALUE-ADD UPSIDE Capital Brokers estimates there to be a potential $ 50 pupm premium for upgraded units based on the unit upgrades at Esperanza (located less than one-mile from The Manors Apartments). These units upgrades are estimated to cost between $ 1,000 and $ 2,000 (depending on the condition of the unit) and included new cabinets, laminate counter tops, and vinyl flooring.These units are now receiving more than $ 50 per unit per month rent premiums, and are now charging residents for water and sewer expenses. Current rents at the Manors Apartments are notably below market.
INVESTMENT SUMMARY Units Total SF Average SF | Unit Year Completed Current Occupancy as of 02/01/2013 Market Rent Market Rent | SF Price Price | Unit Price | SF Offers Due
93 67,200 723 1968 and 1970 88.2% $ 718 $ 0.99 $ 5,900,000 $63,441 $ 88 TBD
The Manors Apartments
INVESTMENT CONTACT:
CAPITAL BROKERS 19495 Biscayne Blvd. Suite 708 Aventura, Fl 33180 Phone: 305 933 1242 Fax 305 933 12 47 www.capitalbrokersusa.com