Contact:    Andrew Shook e: andrew@brightlightcre.com  p: 919.659.5CRE (5273)

Subject Property

3 Property Portfolio

2201 Morehead Ave
Durham, NC 

2120 - 2129 Chapel Hill Rd
Durham, NC

1911-1913-1915-2003 House Ave
Durham, NC


Property Type: Multifamily

Transaction:  Stabilized

Occupancy:  95%

Property Class:  Class B / Class C

Metro Area: Raleigh/Durham/Chapel Hill/Research Triangle Park

MSA Rank:
Raleigh NC - #44
Durham-Chapel Hill NC - #98

Population:  ~1.9 million
Raleigh - 1,273,000
Durham-Chapel Hill - 553,000

 
 
 

Business plan

Long Term hold

Subject properties owned for more than 10 years.

 

Sponsor

Edgewood Properties

  • Sophisticated family office operator
  • Owned and operated multifamily properties in the local market for more than 50 years
  • Owns and operates ~50 properties
  • 425+ units under management
  • Total value of all holding $25+ million
  • Global LTV less than 10%

Sponsor will use loan proceeds to retire existing debt and re-leverage the 3 subject properties to ~50% LTV.  The existing loan is on an onerous 15 year amortization schedule. Cash-out proceeds will be used for general corporate purposes and to distribute a dividend.

 

Supporting Documentation AVAILABLE:

  • Rent Roll
  • Operating Statements
  • Schedule of Real Estate Owned

 

Deal Summary-Durham MF Portfolio-Summary_html_m65d18ac8.jpg

Operating Summary





No. of Units NRSF




155 119,575


Amount
$ / Door $ PSF
Gross Potential Rent
$1,047,683
$563 $0.73
Vacancy Expense
$50,000 5% $27
Loss to Lease
$0 0% $0
Effective Gross Income - Rent
$997,683
$536 $0.70
Other Income





Parking $0



Storage $0



Signage $0



Misc $0


Total Other Income
$0 0%







Effective Gross Income - Total
$997,683
$536 $0.70






Expenses




Total Expenses
$491,114 49% $3,168 $0.34






Net Operating Income
$506,569 51% $3,268 $4.24






Capital Reserves
$38,750 4% $250
Net Cash Flow
$467,819 47% $3,018 $3.91







Sources and Uses

Sources


Loan Proceeds

$3,500,000
Equity - Cash

$0
Equity - Collateral Value

$7,236,700




Total Sources

$10,736,700




Uses


Purchase Price

$0
Loan Pay-off

$3,176,000
Cash Out

$281,000
Equity - Cash

$0
Equity - Collateral Value

$7,236,700




3rd Party Reports



Appraisal
$4,000

PCR
$1,500

Environmental
$1,500
3rd Party Report Total

$7,000




Lender Fees



Origination Fee 0.00% $0

U/W Fee 0.21% $7,500

Agency Fee 0.10% $3,500

Lender Legal 0.21% $7,500

Other 0.00% $0
Lender Fee Total
0.53% $18,500




Borrower Fees



RE Commission 0.00% $0

Mtg Banking 0.50% $17,500

Acquisition Fee 0.00% $0

Development Fee 0.00% $0

Other 0.00% $0


0.50% $17,500




Miscellaneous

$0




Total Uses

$10,736,700





Loan Structure

Requested Loan Amount $3,500,000
Property Value $7,236,700
LTV 48%
Cap Rate 7.00%


In-Place NOI $506,569
Debt Yield 14.47%


Non-Recourse Preferred
Full/Partial Recourse Considered


IO Period Yes
Term 5-, 7-, 10-Yr Options
Rate Structure Fixed Rate
Amortization 20, 25 or 30 Year
Release Pricing Yes @ 100% of Allocated Loan Amount