Sir thomas circle
- 1. Sir Thomas Circle Apartments Sea Shore, NJ www.northeastdevelopment
- 2. Real Estate at the Jersey Shore!
- 3. Investment Overview Real Estate at the Jersey Shore! • Sir Thomas Circle Apartments is a 96 unit multifamily community located in Sea Shore, New Jersey which is in Cape May County. • The property consists entirely of two- bedroom/two-bathroom units with approximately 925 rentable square feet • Property amenities include an on-site laundry facility, patio/balcony, covered parking and a pool • The property received new roofs in 2007 and 75 of the air-conditioning units have recently been replaced • There are three unit types which include basic, partial upgrade and a full upgrade
- 4. Investment Highlights Real Estate at the Jersey Shore! • Fully Stabilized • Recently Upgraded • Recession-Resistant County • Surrounded by Large Employment Centers • Close Proximity to New Jersey’s Best Beaches • Proven Developer Sponsor
- 5. Transaction Summary Real Estate at the Jersey Shore! Summary Terms Price 4,100,000 Down Payment (25%) 1,025,000 Price / Unit 42,708 Price / SF 46 Number of Units 96 Rentable Square Feet 88,800 Number of Buildings 7 Year Built 1983 Lot Size 4.7 acres Financial Data CAP Rate - Current 8.01% GRM - Current 6.40 Net Operating Income - Current 419,244 New Cash Flow After Debt Service - Current 132,894 Total Return - Current 227,894 CAP Rate - Pro Forma 10.14% GRM - Pro Forma 4.47 Net Operating Income - Pro Forma 436,291 Net Cash Flow After Debt Service - Pro Forma 100,324 Total Return - Pro Forma 245,003
- 6. Property Summary Real Estate at the Jersey Shore!
- 7. Occupancy Real Estate at the Jersey Shore!
- 8. Rents Real Estate at the Jersey Shore!
- 9. Property Location Real Estate at the Jersey Shore! Sir Thomas Circle Apartments
- 10. Property Location (cont’d) Real Estate at the Jersey Shore! Sir Thomas Circle Apartments
- 11. Financial Model Real Estate at the Jersey Shore! Revenue Gross Rent $835,800 $835,800 $860,874 $886,700 $913,301 $940,700 Gross Rent per unit $8,706 $8,706 $8,967 $9,236 $9,514 $9,799 Monthly rent per unit $726 $726 $747 $770 $793 $817 Monthly rent per sf $0.78 $0.78 $0.81 $0.83 $0.86 $0.88 Loss to Lease ($16,716) ($25,074) ($25,826) ($17,734) ($18,266) ($18,814) Vacancy Loss ($58,506) ($56,751) ($58,453) ($60,828) ($62,652) ($64,532) Concession Loss ($25,074) ($22,619) ($23,298) ($24,244) ($24,971) ($25,721) Other Losses ($8,358) ($8,358) ($8,609) ($8,867.00) ($9,133) ($9,407) Other Income $70,000 $70,000 $72,100 $74,263 $76,491 $78,786 Total Revenue $0 $797,146 $792,998 $816,788 $849,290 $874,769 $901,012 Expenses Administrative ($43,132) ($43,132) ($44,426) ($45,759) ($47,132) ($48,545) Advertising ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510) Mgmt Fee (4%) ($31,886) ($31,720) ($32,672) ($33,972) ($34,991) ($36,040) Contract Services ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510) Repairs/Maintenance ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510) Make Ready/Turnover ($15,000) ($15,000) ($15,450) ($15,914) ($16,391) ($16,883) Payroll ($90,000) ($90,000) ($92,700) ($95,481) ($98,345) ($101,296) Utilities ($50,000) ($50,000) ($51,500) ($53,045) ($54,636) ($56,275) Property Taxes ($25,000) ($25,000) ($25,750) ($26,523) ($27,318) ($28,138) Insurance ($47,252) ($47,252) ($48,670) ($50,130) ($51,634) ($53,183) Reserves ($300 / Unit) ($24,000) ($24,000) ($24,000) ($24,720) ($25,462) ($26,225) ($27,012) Total Expenses ($24,000) ($386,270) ($386,104) ($397,687) ($409,938) ($422,236) ($434,903) Expense Ratio #DIV/0! 48.5% 48.7% 48.7% 48.3% 48.3% 48.3% NOI ($24,000) $410,876 $406,894 $419,101 $439,353 $452,533 $466,109 Unleveraged Yield (0.4%) 7.4% 7.4% 7.6% 8.0% 8.2% 8.4% Debt Service ($219,060) ($282,231) ($282,231) ($282,231) ($282,231) Property Cash Flow $187,834 $136,870 $157,122 $170,303 $183,879 Cash-on-Cash Yield 16.5% 12.0% 13.8% 15.0% 16.1% LP IRR 13% LP Equity Multiple 1.6x
- 12. Offer Real Estate at the Jersey Shore! • Participating Series A Preferred – Cash/PIK Preferred Return: 8.0% – Equity Participation: 65% • Developer Co-Investment: 25% • Management Fee: 0.5%
- 13. Management Real Estate at the Jersey Shore! Michael Phillips, CEO • Born in Florida, 3-time entrepreneur, 10 years of real estate experience • Partner at Boos Development Group. Also worked in investment banking with JP Morgan (Associate), and real estate private equity with Lubert Adler (VP) • Mike graduated from Georgetown and completed his MBA at Wharton Northeast Development Corp.