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Ashwood Downs Overview - AEDIS REAL ESTATE GROUP, INC.

Ashwood Downs

Ashwood Downs

1900 Ashwood Downs Lane
Olympia, WA 98502

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Investment Overview

The Tax Credit Group of Marcus & Millichap is pleased to offer for sale Ashwood Downs, a 96-unit affordable multifamily community in Olympia, Washington. Ashwood Downs is a well-maintained asset strategically located just off of Interstate 5, offering convenient access to all nearby employment and retail centers. A buyer may place new financing on the asset.

Ashwood Downs was constructed in 1995 under the Section 42 Low Income Housing Tax Credit (LIHTC) Program. The property must abide by the rent and income restrictions per the extended use agreement. These restrictions are in place until December 31, 2032. The initial Tax Credit Compliance Period (TCCP) expired on December 31, 2010. This allows a new investor an immediate opportunity to resyndicate the property.

Ashwood Downs boasts both 2 and 3 bedroom apartment homes; there are 72 two-bed, one-bath, and 24 three-bed, two-bath apartment homes at the property. The 96-unit property offers a desirable amenity and unit feature package, including private balconies & patios, washer / dryer hookups, large closets, dishwashers and garbage disposals in every unit. Residents enjoy the benefits of a comfortable recreation room, laundry facilities, covered parking, and a children’s play area.

Olympia is the capital of Washington State, and is a part of Thurston County. Located at the southern end of Puget Sound, the city lies within some of the most beautiful landscapes Washington State has to offer. Olympia offers its citizens unlimited opportunities for outdoor recreation plus access to major metropolitan areas – the city’s strategic location at the mid-point between the major metropolitan areas of Seattle to the north, and Portland, Oregon to the south is a major advantage. The region’s primary north-south transportation artery, Interstate 5, traverses the entire county offering access points to vibrant communities, emerging industrial and commercial business parks, and access to the state’s major recreational opportunities.

Olympia has a wide array of public parks and nature conservation areas. The Woodard Bay Natural Resources Conservation Area is a 600 acre parcel that preserves more than 5 miles of Puget Sound waterfront. The Percival Landing Park includes 0.9 miles of boardwalk, as well as a playground, picnic area, and a large open space. The city is also a major cultural center of the Puget Sound region and is a regional center for fine arts.

Olympia and its Urban Growth Area have significantly expanded consistently over the past two decades. While many areas of the country experience economic downturns, Thurston County's economy remains stable and has avoided recession since 1982. According to the U.S. Bureau of Labor Statistics, Thurston County's rate of job creation was more than two times the national average for 2007. Forbes Magazine has ranked the Thurston County region as one of the top ten places in the U.S. to do business in 2007 and 2008. The 8th-place ranking in 2008 reflects high performance and growth, driven by low housing costs, low cost of living, increased job growth, recreational and cultural opportunities, award winning education, and competitive cost of doing business.

Olympia continues to be an attractive place to live for military households stationed at nearby Joint Base Lewis-McChord (JBLM) and Madigan Army Hospital which are about 20 minutes north. JBLM has a rich and expansive history. Since its inception in 1917 as Camp Lewis, the base has grown and undergone several organizational changes. Most recently Fort Lewis and adjacent McChord Air Force Base were consolidated in January 2010. Joint Base Lewis McChord is now the premier military installation in the Northwest and is the most requested duty station in the Army.

JBLM has grown steadily over the past decade. It now has more than 31,000 soldiers, up from about 18,000 in 2003. Active duty and retired military bring an economic impact to the area, and the amount is projected to increase dramatically over the next five years. Approximately 4,000 additional military personnel and family members are anticipated in the coming 5 years. JBLM’s payroll topped $2.4 billion in the 2009 federal budget year, and it is Pierce County’s largest employer. JBLM’s construction spending on base alone has helped to shield the South Sound region from larger recessionary impacts felt in other areas of the state and nation. JBLM has grown to be one of the foremost economic and cultural engines of the South Sound region and wields significant influence on the city of Olympia.

Being the state of Washington’s capital, government employment is also big influence on Olympia’s economy. One of the strongest clusters of business activity centers around the government’s legislative process. State government accounts for nearly 45 percent of the county workforce, more than 44,000 people.
Amtrak, the national passenger rail system, provides service to Olympia-Lacey at the Centennial Station. Amtrak provides train service from Olympia to Seattle, Tacoma, Vancouver B.C., Portland, Eugene, Sacramento, and Los Angeles. Olympia is primarily served by Intercity Transit Bus system. Intercity Transit maintains a free shuttle route called Dash. Dash runs from the Capitol Campus to the Farmers Market at the far edge of downtown. In 2009, Intercity Transit won an award for Americas Best Public Transportation System in the mid size category by the American Public Transportation Association.

Affordable Restrictions

Ashwood Downs currently operates under the Section 42 Low Income Housing Tax Credit (LIHTC) program, and has an extended use agreement in place requiring that 51% of the units be rented to tenants earning no more than 50% of the local Area Median Income (AMI), and 49% of the units be rented to tenants earning no more than 60% AMI. Although the initial Tax Credit Compliance Period (TCCP) expired on December 31, 2010, there are extended use restrictions in place until December 31, 2032. The buyer must agree to maintain the affordability restrictions under the Section 42 program through the extended use period. This will include but not be limited to operating the property in compliance with all state and federal regulatory agreements.

Low Income Housing Tax Credit Rent/Income Limits and Utility Allowances 2011 Thurston County, WA (Olympia, WA MSA)


4-Person Area Median Income: $74,000
Income Limits 50% of AMI 60% of AMI
1 Person $25,900 $31,080 2 People $29,600 $35,520 3 People $33,300 $39,960 4 People $37,000 $44,400 5 People $40,000 $48,000 6 People $42,950 $51,540


Rent Limits & Utility Allowances for 50% AMI
Unit Type Maximum Rent Utility Allowance Maximum Net Rent
2 Bedrooms $832 $103 $729 3 Bedrooms $962 $128 $834


Rent Limits & Utility Allowances for 60% AMI
Unit Type Maximum Rent Utility Allowance Maximum Net Rent
2 Bedrooms $999 $103 $896 3 Bedrooms $1,155 $128 $1,027

Property Summary

THE OFFERING

PropertyAshwood Downs
Propery Address1900 Ashwood Downs Lane Olympia, WA 98502
Assessor's Parcel Number1181-94-10200 RM Multi Family
ZoningResidential Olympia

 SITE DESCRIPTION

Number of Units96
Number of Buildings9 Plus Clubhouse 2 & 3
Number of Stories94,464 5.25 Acres
Year Built1995
Rentable Square Feet Lot18.3 Units / Acre 144
Size Density ParkingSpaces (96 Covered)
Parking Ratio1.5 / 1 (Spaces/Unit)
LandscapingLawns, Shrub Beds, Trees
TopographyMostly Level and at Grade

UTILITIES

WaterCity of Olympia
PhoneComcast Qwest
ElectricPuget Sound Energy

CONSTRUCTION

Foundation FramingConcrete Wood Vinyl Asphalt
Exterior ParkingAsphalt
Surface RoofShingle

MECHANICAL

Wiring Fire ProtectionCopper Central Fire Alarm System

Amenities

COMMON AREA AMENITIES

Comfortable Recreation Room Laundry Facilities

Covered Parking Children's Play Area

UNIT AMENITIES

Private Balconies & Patios Washer / Dryer Hookups

Large Closets Garbage Disposals Dishwasher

PROPERTY PHOTOS

Floor Plans

Aerial Photo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Seattle, Inc. © 2011 Marcus & Millichap

Financial Summary

PROPERTY DESCRIPTION

PropertyAshwood Downs
Property Address1900 Ashwood Downs Lane, Olympia, WA
Number of Units96 Units
Net Rentable Area94,464 SF
Year Built1995
End of Initial Tax Credit Compliance Period - TCCPDecember 31, 2010

PRICING

Total Purchase Price$6,550,000
List Price Per Unit$68,229
List Price Per SF$69.34

FINANCIAL RETURNS

YE 2010 NOI$384,778
YE 2010 GRM7.76
YE 2010 CAP Rate5.87%
Current NOI$422,388
Current GRM7.60
Current CAP Rate6.45%
Year 0 (COE) NOI$432,055
Year 0 (COE) GRM7.51
Year 0 (COE) CAP Rate6.60%
Year 0 (COE) Cash-on-Cash11.27%
Year 1 NOI$459,654
Year 1 GRM7.18
Year 1 CAP Rate7.02%
Year 1 Cash-on-Cash13.24%

PROJECTED RETURNS

10 Year Leveraged IRR18.24%

DEBT FINANCING*

Loan Amount$5,229,123
Loan-to-Value Ratio79.83%
Current Debt Service Coverage Ratio1.54
Year 1 Debt Service Coverage Ratio1.67
Equity Required (Including Renovations and Closing Costs)$1,398,168

* See Assumptions page for further detail

Name of PropertyAshwood Downs
Street address1900 Ashwood Downs Lane
City, StateOlympia, WA
Zip Code98502
CountryThurston
Total Number Of Units at the Property96 Units
Total Net Rentable Residential Area94,464 SF
LIHTC - Family 
Kinsel Ameri Properties 
JP Morgan 
Kinsel Ameri Properties 
1995 
October 24, 1995 
December 31, 2010 
22 
2032 
Yes 
January 01 2012 
December 31 2021 
First MortrageOne Year Interest Only
Proposed or ExistingProposed
Loan TypeAmortizing
Loan Origination DateJanuary 2012
Interest Only End DateDecember 2012
$52,291 
1.54 
1.67 
Real Estate Value$6,550,000
Value per Unit$68,229 Per Unit
Value per square foot$69.34 per Sq. Ft.
$25,000 
$52,291 
$77, 291 
Total Leveraged Acquisition Cost$6,627,291
Equity Required$1,398,168
Equity-to-total Leveraged Acquisition Cost Ratio21.10%
Total Loan Amount$5,229,123
Loan-to-Total Leveraged Acquisition Cost Ratio78.90%

ASHWOOD DOWNS

OLYMPIA, WA

PROPERTY DESCRIPTION 
PropertyAshwood Downs
Property Address1900 Ashwood Downs Lane Olympia, WA
Number of Units96 Units
Net Rentable Area 
Year Built 
End of Initial Tax Credit Compliance Period - TCCP 

ASSUMPTIONS

Property Information

Property Type General Partner Limited Partner/Syndicator Management Company Year Project Was Originally Built Placed in Date (PIS) End of Initial Tax Credit Compliance Period (TCCP) Years of Additional Restrictions Final Year of Restrictions Qualified Contract Eligible.

ANALYSIS TIMING

Effective Start Date of this Analysis: End of Analysis (Hold Period):

Property Valuation Analysis Period (Hold Period)

Detailed Unit Mix

TWO BEDROOM/ONE BATH UNIT SUMMARY

Asking Year 1 2011 Max Utility Net Max HUD Type No. RSF Rents AMI% Rent Allowance Allow Rents FMR's BD/ 1 BA (LIHTC 50% AMI)

PROPERTY DESCRIPTION

PropertyAshwood Downs
Property Address1900 Ashwood Downs Lane Olympia, WA
Number of Units96 Units
Net Rentable Area94,464 SF
Year Built1995
End of Initial Tax Credit Compliance Period - TCCPDecember 31, 2010
PRICING 
Total Purchase Price$6,550,000

Detailed Income & Expenses

Pricing & Financial Analysis

Notes to Income & Expenses

Notes to Current Income & Expenses

(1) Gross Potential Rent (GPR): Figure shown reflects May, 2011.

(2) Professional Management Fee: Assumes a reductions based on normal market expenses. Notes to year

0 (COE) Income & Expenses.

(1) Gross Potential Rent (GPR): Analysis assumes the property can recoup 50% Loss to lease prior to

(2)Real Estate Taxes: See Real Estate Tax Analysis on following page.

(3) Audit/Bookkeeping/Accounting Fees: Excludes the Audit expense, which will not be requied after sale.

RE Tax Analysis

REAL ESTATE TAXES

Year Ending 2010 2011

Land Value Improvement Value

Taxable Value Millage Rate Total Real Estate Tax

PROPERTY DESCRIPTION
Property
Property Address
 
Number of Units
Net Rentable
Year Built
End of Initial Tax Credit Compliance Period

NOTES/COMMENTS:

Account #: 11819410200

Other assessments include conservation district and weed control. Decrease in real estate tax is due to a decrease in assessed values. Assessed values for taxes payable in 2012 will be published on the Thurston Country Assessor website in October, 2011

Growth Rates

Stabilized Year#: 1 2 3 4 5 6 7 8 9 10 Year Ending: Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021

Residential Rental Income Growth 4.41% 3.00%

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Area Median

Income Growth (10-Yr AVG)

Notes: *Calculated as a percentage of bad dept Loss. **Calculated as a percentage of Gross Potential rent. ***Calculated as a percentage of total payroll ****Calculate as a percentage of effective of gross income.

Pricing & Financial Analysis

This information has been secured from sources we believe to be reliable, but we make no representatives or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Seattle, Inc. 2011 marcus & Millichap.

AMI. CPI. FMR. OCAF

Ashwood Downs

SUBJECT PROPERTY

Property Decription

PropertyAshwood Downs
Property Address1900 Ashwood Downs Lane Olympia, WA

Rent Comparables

ASHWOOD DOWNS

1900 Ashwood Downs Lane Olympia, WA 98502

Unit Type No. of Units SF Rent Rent/SF

2 Bdr 1 Bath 36 922 $696 $0.75 2 Bdr 1 Bath 36 922 $780 $0.85 3 Bdr 2 Bath 14 1,170 $794 $0.68 3 Bdr 2 Bath 10 1,170 $930 $0.79

No. of Units 96

1

3800 14th Avenue Southeast Olympia, WA 98503

No. of Units203
Occupancy:86%
Year built/Renovated:1974/2010

SUBJECT PROPERTY

Concessions: None; Utilities: WSG Included, Tenant Pays Electric; Parking: Open; LIHTC Property: 50 Units at 50% & 46 Units at 60% AMI

CAPITAL CLUB

Total/ Avg.$815$1.32

Unit type No. of Units SF Rent Rent/SF

1 Bdr 1 Bath N/A 500 $645-$735 $1.38 2 Bdr 1 bath N/A 725 - 785 $915 - $965 $1.25

COMMENTS

Concessions: 1 month free rent for1 BD Units; Utilities: Tenant Pays WSG & Electric;  Parking: Open; Market Rate Property

2

No. of Units164
Occupancy:95%
Year Built:1996

PROPERTY DESCRIPTION

PropertyAshwood Downs
Property Address1900 Ashwood Downs Lane Olympia, WA
  
Number of Units 
Net Rentable Area 
Year Built 
Total/Avg.164$782$0.81

COMMENTS

Concessions: None; Utilities: WSG Included, Tentant pays Electric; Parking: Open - 229 Spaces, Covered - 42 Spaces, Garage - 36 Spaces; LIHTC Property: 42 Units @ 40% AMI; Remaining @ 60% AMI

3

No. of Units116
Occupancy:98%
Year Built:1985

Rent Comparables

SUMMER RIDGE

5701 30th Avenue SE Lacey, WA 98503

Unit Type No. of Units SF Rent Rent/SF

2 Bdr 1 Bath 24 847 - 1,000 $729 - $868 $0.86 2 Bdr 2 Bath 80 946 - 996 $729

Total/Avg.116$836$0.82

-$868 $0.82 3 Bdr 1.5 Bath Twnhs 12 1,157 $832-$994 $0.79

COMMENTS

Concessions: 2BD: $750 upon 12 Month Lease; Utilities: WSG Included, Tenant Pays Electric; Parking: Open - 149 Spaces, Covered 80 Spaces; LIHTC Property: 100% @ 50%, 60% AMI

4

No. of Units100
Occupancy:98%
Year Built:1994

FERN RIDGE/CARRIAGE PLACE

1309 Fern Street SW Olympia, WA 98502

Total/Wtd. Avg.100$768$0.96

Unit Type No. of Units SF Rent Rent/SF

1 Bdr 1 Bath 46 605 $660 $1.09 2 Bdr 1 Bath 28 848 $755 $0.89 3 Bdr 2 Bath 26 1,009 $890 $0.88

COMMENTS

Concessions: None; Utilities: WSG Included, Tenant Pays Electric; Parking: Open; LIHTC Property: 100% at 60% AMI

5

No. of Units211
Occupancy:96%
Year Built:1997

COURTSIDE APARTMENT

515 Courtside Street SW Olympia, WA 98502

Total/Wtd.Avg.211$731$0.96

Unit Type No. of Units SF Rent Rent/SF

Studio 41 502 $600 $1.20 1 Bdr 1 Bath 65 582 $665 $1.14 2 Bdr 1 Bath 60 844 $775 $0.92 3 Brd 2 Bath 45 1,157 $885 $0.76

COMMENTS

Concessions: $200 Security Deposit for July; Utilities: Garbage Included, Tenant Pays Water, Gas, and Electric; Parking: Carport; LIHTC Property.

6

No. of Units160
Occupancy:96%
Year Built:1987

Rent Comparables

CROWN POINTE

2800 Limited Lane Olympia, WA 98502

Unit Type No. of Units SF Rent Rent/SF

1 Bdr 1 Bath 61 612 - 658 $733 $1.15 2 Bdr 1 Bath 48 847 $868 $1.02 2 Bdr 2 Bath 26 939 $868 $0.92 3 Bdr 2 Bath 25 1,270 $993 $0.78

Total/Avg.160$865$1.38

COMMENTS

Concessions: None; Utilities: WSG Included, Tenant Pays Electric; Parking: Covered and Garage; LIHTC Property: 50% and 60% AMI

7

No. of Units100
Occupancy:95%
Year Built:1990

EMERALD POINTE

1405 Clearbrooke Drive SE Lacey, WA 98503

Unit Type No. of Units SF Rent Rent/SF

1 Bdr 1 Bath 36 737 $780 -$800 $1.07 2 Bdr 1 Bath 32 895 $870 -$890 $0.98 2 Bdr 2 Bath 20 1,010 $920 -$940 $0.92 3 Bdr 2 Bath 12 1,275 $1,080 -$1,100 $0.

COMMENTS

Concessions: None; Utilities: Tenant Pays WSG & Electric; Parking: Covered - 60

Total/AVG.100$922$0.96

Spaces, Garage - 60 Spaces; Market Rate Property

8

No. of Units64
Occupancy:97%
Year Built:2007

COUNTRY CLUB VILLAS

3612 57th Lane SE Olympia, WA 98501

Unit Type No. of Units SF Rent Rent/SF

1 Bdr 1 Bath 12 956 $915 -$925 $0.96 2 Bdr 1 Bath 2 1,050 $1,005 -$1,015 $0.96 2 Bdr 2 Bath 50 1,156 $1,025 -$1,035 $0.89

COMMENTS

Concessions: Half Month Free Rent; Utilities: Tenant Pays WSG & Electric; Parking: Open -27 Spaces, Covered -64 Spaces, Garage ¬30 Spaces; Market Rate Property

ASHWOOD DOWNS

OLYMPIA, WA

Rent Comparables Map

ASHWOOD DOWNS

Geography: 5 Miles 

OLYMPIA, WA

Summary Report

Population In 2010, the population in your selected geography is 145,415. The population has changed by 20.37% since 2000. It is estimated that the population in your area will be 164,404 five years from now, which represents a change of 13.06% from the current year. The current population is 48.42% male and 51.58% female. The median age of the population in your area is 36.8, compare this to the US average which is 37.1. The population density in your area is 1,851.48 people per square mile.

Households There are currently 60,193 households in your selected geography. The number of households has changed by 21.14% since 2000. It is estimated that the number of households in your area will be 68,320 five years from now, which represents a change of 13.50% from the current year. The average household size in your area is 2.38 persons.

Income

In 2010, the median household income for your selected geography is $55,648, compare this to the US average which is currently $51,517. The median household income for your area has changed by 23.61% since 2000. It is estimated that the median household income in your area will be $59,660 five years from now, which represents a change of 7.21% from the current year.

The current year per capita income in your area is $28,939, compare this to the US average, which is $27,867. The current year average household income in your area is $67,940, compare this to the US average which is $72,148.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 81.22% White, 3.71% Black, 1.45% Native American and 7.51% Asian/Pacific Islander. Compare these to US% averages which are: 73.52% White, 12.42% Black, 0.76% Native American and 4.60% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.16% of the current year population in your selected area. Compare this to the US% average of 15.45%.

Housing

The median housing value in your area was $136,804 in 2000, compare this to the $US average of $115,194 for the same year. In 2000, there were 28,787 owner occupied housing units in your area and there were 20,903 renter occupied housing units in your area. The median rent at the time was $580.

Employment In 2010, there are 93,686 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 66.3% of employees are employed in white-collar occupations in this geography, and 33.7% are employed in blue-collar occupations. In 2010, unemployment in this area is 8.96%. In 2000, the median time traveled to work was 18.0 minutes.

ASHWOOD DOWNS

OLYMPIA, WA


Population Density

Number of people living in a given area per square mile.

ASHWOOD DOWNS

OLYMPIA, WA

Employment Density

The number of people employed in a given area per square mile.

ASHWOOD DOWNS

OLYMPIA, WA

Average Household Income

Average income of all the people 15 years and older occupying a single housing unit.

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