You are on page 1of 9

Oakland Apartments

6244 Oakland Ave, St. Louis , MO 63139

Mike Zangara
Principal Broker
314.517.0903
mzangara@mo-apartmentadvisors.com

Value Add Opportunity

Very Desirable Rental


Neighborhood

Quality Tenant Base with


Ability to Increase Rents
Substantially

Proximity to Forest Park, St.


Louis Zoo, Dining &
Entertainment

Solid Brick Building with


Garage Parking

7751 Carondelet Ave, Ste. 800


St. Louis, MO 63105
314.716.2213 (p)

Real Estate Investment Details

ANALYSIS
Analysis Date

September 2015

PROPERTY
Property
Property Address
Year Built

Oakland Apartments
6244 Oakland Ave
St. Louis , MO 63139
1948

PURCHASE INFORMATION
Property Type
Purchase Price
Units
Total Rentable Sq. Ft.

FINANCIAL INFORMATION
MultiFamily
$2,350,000
39
28,846

Down Payment

$470,000

LOANS
Balloon

Debt
$1,880,000

Term
5 years

Amortization
25 years

INCOME & EXPENSES


Gross Operating Income
Monthly GOI
Total Annual Expenses
Monthly Expenses

Rate
4.0%

Payment
$9,923

LO Costs

CONTACT INFORMATION
$250,551
$20,879
($98,633)
($8,219)

Mike Zangara
314.517.0903
mzangara@mo-apartmentadvisors.com

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections
and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or
other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,
tax or other professional area before making any decisions.
page 2 of 9

Oakland Apartments

Executive Summary

6244 Oakland Ave


St. Louis , MO 63139

Mike Zangara
314.517.0903

ACQUISITION COSTS
Purchase Price, Points and Closing Costs
Investment - Cash
First Loan

$2,350,000
$470,000
$1,880,000

INVESTMENT INFORMATION
Purchase Price
Price per Unit
Price per Sq. Ft.
Income per Unit
Expenses per Unit

$2,350,000
$60,256
$81.47
$6,750
($2,529)

INCOME, EXPENSES & CASH FLOW


Gross Scheduled Income
Total Vacancy and Credits
Operating Expenses
Net Operating Income
Debt Service
Cash Flow Before Taxes

$263,232
($12,681)
($98,633)
$151,918
($119,080)
$32,838

FINANCIAL INDICATORS
Cash on Cash Return Before Taxes

6.99%

Debt Coverage Ratio


Capitalization Rate
Gross Rent Multiplier
Gross Income / Square Feet
Gross Expenses / Square Feet
Operating Expense Ratio

1.28
6.46%
8.93
$9.13
($3.42)
39.37%

page 3 of 9

Oakland Apartments

Property Description

6244 Oakland Ave


St. Louis , MO 63139

Mike Zangara
314.517.0903

Oakland Apartments is being offered at


$2,350,000. The Property is solid brick
construction with concrete floors and garage
parking. Oakland Apartments is located directly
across highway 40/64 directly across from the
St. Louis Zoo and just west of the St. Louis Zoo's
new development at the corner of Hampton and
Oakland.
The Property consist of 39 units that are 100%
occupied with a very strong tenant base, which
is a good indication rents can and should be
increased. Additionally, the new Owner can
increase their bottom line, by implementing ratio utility billing (RUBS), which is common for similar
heat furnished buildings in the area.
Please contact Michael with questions or to schedule a showing today.

page 4 of 9

Unit Mix Report

Oakland Apartments
6244 Oakland Ave
St. Louis , MO 63139

Mike Zangara
314.517.0903

UNIT MIXES
Units
27
6
6
39

Type
Studios
1 Bedroom / 1 Bath
2 Bedroom / 1 Bath

Approx. SqFt Avg. Rents


485
650
875
22,245

$495
$590
$705

UNIT MIX

Monthly
$13,365
$3,540
$4,230
$21,135

Mkt Rents
$550
$690
$790

Monthly
$14,850
$4,140
$4,740
$23,730

UNIT MIX SQUARE FEET


Studios
1 Bedroom / 1 Bath
2 Bedroom / 1 Bath

Studios
1 Bedroom / 1 Bath
2 Bedroom / 1 Bath

UNIT MIX INCOME

UNIT MIX MARKET INCOME


Studios
1 Bedroom / 1 Bath
2 Bedroom / 1 Bath

Studios
1 Bedroom / 1 Bath
2 Bedroom / 1 Bath

page 5 of 9

Pro Forma Summary

Oakland Apartments
6244 Oakland Ave
St. Louis , MO 63139

Mike Zangara
314.517.0903

UNIT MIX & ANNUAL SCHEDULED INCOME


Type

Units

Studios

Actual

Total Pro Forma

Total

27

$5,940

$160,380

$6,600

$178,200

1 Bedroom / 1 Bath

$7,080

$42,480

$8,280

$49,680

2 Bedroom / 1 Bath

$8,460

$50,760

$9,480

$56,880

TOTALS

39

$253,620

$284,760

ANNUALIZED INCOME
Actual

INVESTMENT SUMMARY
Price:

$2,350,000

Year Built:

1948

Units:

39

Price/Unit:

$60,256

RSF:

28,846

Price/RSF:

$81.47

Lot Size:

0.49 acres

Floors:

45930000300

Pro Forma Cap Rate:

8.25%
8.93

Pro Forma GRM:

7.98

FINANCING SUMMARY

Loan Type:
Interest Rate:

$1,880,000
$470,000

Actual

Pro Forma

Property Management Fee


Administration
Grounds
Building Insurance
Maintenance Supplies
Repairs & Maintenance
Contract Services
Taxes
Utilites

$12,528
$5,206
$1,912
$13,730
$4,767
$6,706
$7,883
$18,081
$27,820

$14,238
$5,206
$1,912
$13,730
$4,767
$6,706
$7,883
$18,081
$13,820

Total Expenses
Expenses Per RSF
Expenses Per Unit

$98,633
$3.42
$2,529

$86,343
$2.99
$2,214

Balloon
4%

Term:

5 years

Monthly Payment:

$9,923

DCR:

ANNUALIZED EXPENSES

6.46%

GRM:

Down Payment:

$284,760
($14,238)
$9,612
$280,134
($86,343)
$193,791
($119,080)
$74,711
$44,693
$119,404

Ample

Cap Rate:

Loan Amount:

$253,620
($12,681)
$9,612
$250,551
($98,633)
$151,918
($119,080)
$32,838
$44,693
$77,532

Parking Spaces:
APN:

Gross Potential Rent


Less: Vacancy
Misc. Income
Effective Gross Income
Less: Expenses
Net Operating Income
Debt Service
Net Cash Flow after Debt Service
Principal Reduction
Total Return

Pro Forma

1.28

page 6 of 9

Financial Indicators

Oakland Apartments
6244 Oakland Ave
St. Louis , MO 63139

Description

Mike Zangara
314.517.0903

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

8.93

8.68

8.43

8.20

7.96

7.74

7.52

7.31

7.10

6.90

Capitalization Rate

6.46%

6.76%

7.06%

7.37%

7.69%

8.02%

8.35%

8.70%

9.06%

9.43%

Cash On Cash Return b/t

6.99%

8.45%

9.95%

11.50%

13.10%

8.94%

9.32%

9.70%

10.11%

10.52%

Cash On Cash Return a/t

6.99%

8.45%

9.95%

11.50%

13.10%

8.94%

9.32%

9.70%

10.11%

10.52%

1.28

1.33

1.39

1.45

1.52

N/A

N/A

N/A

N/A

N/A

$9.13

$9.39

$9.66

$9.94

$10.23

$10.53

$10.83

$11.15

$11.47

$11.81

($3.42)

($3.43)

($3.44)

($3.46)

($3.47)

($3.49)

($3.50)

($3.52)

($3.53)

($3.55)

15.47

14.80

14.17

13.57

13.01

12.48

11.97

11.49

11.03

10.60

Operating Expense Ratio

39.37%

38.40%

37.46%

36.55%

35.67%

34.80%

33.96%

33.14%

32.35%

31.58%

Loan To Value Ratio

78.10%

76.12%

74.06%

71.91%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Gross Rent Multiplier

Debt Coverage Ratio


Gross Income per Sq. Ft.
Expenses per Sq. Ft.
Net Income Multiplier

Footnotes: b/t = before taxes; a/t = after taxes

page 7 of 9

Oakland Apartments

Property Photos

6244 Oakland Ave


St. Louis , MO 63139

Mike Zangara
314.517.0903

page 8 of 9

Oakland Apartments

Maps and Aerials

6244 Oakland Ave


St. Louis , MO 63139

Mike Zangara
314.517.0903

page 9 of 9