Lois Landing Apartments

LOIS LANDING APARTMENTS 115 S Lois Ave, Tamp FL 33609

Offering Memorandum Manny J Herrera Real estate Agent Dalton Wade Station House 260 1st. Ave South St. Petersburg FL 33701 manny.herrera@mreexchange.com 1(813) 9515880

Manny J Herrera

Real estate Agent Dalton Wade Station House 260 1st. Ave South St. Petersburg FL 33701 manny.herrera@ mreexchange.com 1(813) 9515880

Confidential Statement

TABLE OF CONTENTS I PROPERTY HIGHTLIGHTS • Confidential Statement • Property description • Exterior and Amenities • Interiors

III PROPERTY FINANCIALS • Rent Roll and T12 • Variability • P&L

II SOUTH TAMPA SUBMARKET

IV 5-YEAR FORCAST • Property Assumptions • Acquisition and Exit Assumptions • Source and use of funds • Operating Assumptions.

• 5-year Proforma • Internal rate of return.

• Indicators • Sales Volume and Prices • Occupancy • Cap Rate • Developments

PROPERTY EXTERIORS & AMENITIES

Community Fitness Center

Community laundry room

PROPERTY INTERIOR

In-unit washer and Dryer.

SOUTH TAMPA SUBMARKET

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South Tampa is a liquid submarket, with about 74 trades over the past three years. The market price per unit , increased drastically over the pandemic period, and currently stands at $274,611.

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The submarket is largely residential with excellent walkability and proximity to downtown Tampa, popular beaches, and a variety of entertainment and dining options.

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South Tampa traditionally has low vacancy rates, steady upward moving property prices, and is a desirable location for renters and investors.

Tampa International Airport

International Mall

SUBMARKET INDICATORS

The South Tampa Submarket is a regular target among multifamily investors in Tampa. Annual sales volume has averaged $274 million over the past five years, and the 12month high in investment volume hit $858 million over the same period. During the last 12 months specifically, $273 million worth of assets sold. Average apartment properties reached $274,611/ unit, during the second quarter of 2023 .

SALES VOLUME AND PRICE PER UNIT

South Tampa has consistently been a highly liquid submarket with strong demand for multifamily real estate properties. Annual sales volume has averaged $274 million over the past five years, and the 12-month high in investment volume hit $858 million over the same period, and $273 million worth of assets sold during the last 12 months. Average apartment properties reached $274,611/ unit, during the second quarter of 2023 .

SOUTH TAMPA OCCUPANCY RATE  Occupancy Rate within South Tampa

submarket has been traditionally high, reaching a healthy 96% at the

height of the Coronavirus Pandemic.  Stabilized occupancy is expected to

remain below 95% during the next

5 years

SOUTH TAMPA CAP RATE The market CAP rate has kept its historical downward trend for the last 10 years been one of the lowest in the market and expected

to remain under 5% a clear indication of strong demand for multifamily properties,, rising property values and increasing rents.

DEVELOPMENT South Tampa Submarket has seen more new development than the market overall during

the past decade.

Development is set to continue, and roughly 630 units are currently on the way, which

will substantially expand the existing inventory.* *Costar.com

PROPERTY FINANCIALS

Trailing 12 Months 2022

Upside Potentials

.

The property exhibits low variability in its gross income and expenses, as well as a predictable net operating income, which a clear sign of effective management and a stable and secure environment for tenants while ensuring a healthy return on investment for owners

P&L Statement

P & L Statement is based on Trail-12 2023 provided by the client. Gross income Rent is net after 9% vacancy, which is consistent with submarket current vacancy rate. 

FIVE-YEAR FORCAST

Property Assumptions

The acquisition target is a 56-unit multifamily located at 115 Lois Ave in Tampa, Florida. The average rentable square feet per unit is estimated to be 829 sqf/unit. Property Taxes are 1.18 % of the acquisition price. Management fee is assumed at 6% of effective gross income.

Acquisition and Exit Assumptions

Asking Price is estimated in $15,000,000 ($267,857/unit). South Tampa Submarket registers $273,183/unit during the second quarter of 2023), for A Going-in capitalization rate 5.79% (current submarket cap rate is 4.5%). The Acquisition loan-to-value is assumed at 85%. 30years senior financing at 7% annual interest rate, with maturity of 5 years. Exit Capitalization rate is kept relatively univariable.

Source and Use Of Funds

SOURCE AND USES OF FUNDS

FIVE-YEAR FORECAST The following 5-year forecast is a projection of the property's future income, expenses, and cash flows, are based on less favorable assumptions about market conditions, tenant behavior, occupancy and other factors that may

impact the property's financial performance in order to assess the financial viability of the property as a business.

It's important to keep in mind that the forecast is not a guarantee of future performance, and that actual results may differ from what was projected. Therefore, investors should use the forecast as a tool for decision-making and not rely solely on it.

OPERATING ASSUMPTIONS In order to prove the acquisition viability which in turn helps to determine the potential return on investment the following operating assumptions have been made. on market conditions and other factors.

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In-place discount historically has been estimated to be 9% through the five-year outlook historically has been 25%

•

General vacancy is estimated at 7%. Historically 5%.

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Utility reimbursement estimated at 7%. Historically 100%.

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Capital expenditure has been estimated in $700 per unit for the 5-year projection, keeping Replacement reserve at $250 per unit.

It's important to notice that these assumptions are just estimates and may be subject to change based on market conditions

and other factors.

Operating Assumptions

5-year Property Proforma

Debt Yield

Debt Service Cover Ratio

Unleveraged Expected Rate of Returned

Leveraged Internal Rate of Return

Manny J Herrera Real estate Agent Dalton Wade Station House 260 1st. Ave South St. Petersburg FL 33701 manny.herrera@mreexchange.com 1(813) 9515880