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Ellen Muskin - 512.343.2700 [email protected]
Daniel Elam -512.343.2700 [email protected]
2121 W. William Cannon Dr. | Austin, TX 78745Shown By Appointment Only
� Seller Currently Renovating Laundry Room with New Washers and Dryers (which would be owned by Property) and Flooring
� Tremendous Visibility along W. William Cannon Drive (27,525 +/- cars per day according to TxDOT)
� Strong Value-Add Opportunity with Continued Unit Interior Upgrades
� Excellent Location | Close to CBD, Texas State Capitol, Convention Center, University of Texas (Dell Medical School), Austin Community College, and Lady Bird Lake
� One of Austin’s Fastest Growing and Vibrant Submarkets
� Convenient Access to Public Transportation
� 1980’s Construction with Pitched Composition Shingle Roofs
� Available on an All Cash or Third-Party Financed Basis
INVESTMENT HIGHLIGHTS
Well located in the rapidly gentrifying South submarket — Cheshire Gardens is situated at 2121 W. William Cannon Drive, just west of
Manchaca Road, and conveniently located between Interstate Highway-35 (with traffic flow from Canada to Mexico) and MoPac Expressway
(aka Loop One). William Cannon Drive is an East/West thoroughfare and well known as one of the more popular submarkets in the Austin MSA.
This area benefits greatly from the growing developments to the north (Downtown, Warehouse District, Sixth Street, SoCo, Rainey Street, Austin
Convention Center, State Capitol complexes, and SoLa). Further south are popular attractions, including South Park Meadows, the Lady Bird
Johnson Wildflower Center, other major retail developments and flourishing single-family neighborhoods. Downtown is approximately 5 miles to
the north. The University of Texas, including the newly opened Dell Medical Center/teaching Hospital, is one of the largest campuses in the nation
— with 50,000+ students, and is located about 6.5 miles north.
Value-Add Opportunity — The property’s average rental rate is currently $833/unit, which is more affordable as compared to the Austin MSA
average of $1,224/unit, according to Austin Investor Interests’ (AII) 2Q 2017 Trend Report. Increased rents are achievable with some unit interior
enhancements, which might include new cabinetry, granite or hard surface countertops, dynamic paint colors, lighting and hardware upgrades,
and black or stainless appliances. There is also one on-site laundry facility with washer/dryers owned by the Property. Improvements to that
facility would be favorably received by the tenants. Rehabbed properties of comparable vintage in this submarket have rents starting at $1,025
for a 1BR and $1,245 for a 2BR. Potential ideas to improve the property exteriors include re-branding with new signage. Exterior paint was
completed in Summer 2016. Interior renovations could include installation of granite countertops, tile back-splash, upgraded hardware package,
bowls, sinks, etc.
Investment OPPORTUNITY
According to Austin Investors Interest (2Q Trend Report), the South Austin submarket is averaging a healthy occupancy of 93.2% in all product classes. Transactions in 2Q included 23 assets that sold at an average price of $152,830/unit and $174/PSF.
Property Enhancements — The 58-unit community has an average unit size of 623+/- square feet, with a variety of studios, 1BR and 2BR
units. Roofs are pitched composition shingle and exteriors are a combination of brick, stucco-like composite and hardi-board exteriors. Located
on 1.457+/- acres (according to TCAD records), Cheshire Gardens consists of two and three-story buildings with individual electric HVAC
systems and individual hot water in all residents’ units. Other property features are faux wood vinyl flooring throughout living rooms, bathrooms
with ceramic tile tub surrounds, built-in bookshelves and spacious kitchens with darker wood cabinetry. Eight of the units were rebuilt due to
a tenant-related fire that occurred in January 2015. Leasing efforts are enhanced by a convenient on-site management office, and community
features include the central owner-operated laundry facility, private balconies and patios, stone walkways and brick pavers, swimming pool, lush
landscaping, BBQ areas, and surface parking (82+/- spaces). The smaller size of Cheshire Gardens offers a true “community feel” amongst its
residents. High-speed internet access is available to residents, and Google fiber is present in this vicinity. Located in the AISD School District,
children would attend: Cunningham Elementary, Covington Middle School and Crockett High School, all very conveniently located close-by
Cheshire Gardens Apartments.
Investment OPPORTUNITY
� Owner-Operated Laundry Facility (New Washer/Dryers and
Flooring Currently Being Installed)
� Spacious and Roomy Floorplans
� Convenient On-Site Leasing Office
� Sparkling Swimming Pool with New Outdoor Furniture
� Brick Pavers Amidst Lush Landscaping
� Picnic and BBQ Area | Pet Friendly Community
� Ample On-Site Surface Parking
� Close to Public Transportation Hubs
� Private Balconies and Patios for Residents
� Wood-look Faux Flooring
� Walking Distance to Major Retail Centers
� Easy Access to Downtown via IH-35, MoPac, and Smaller Arterials (S.
First, S. Congress, Manchaca & Lamar)
Community FEATURES
Price: $6,100,000
Terms: All Cash
Pro Forma Cap: 5.5%
# of Units: 58
Total NRSF: 36,158 ±
Land Area: 1.457 ± ACR (TCAD)
Exterior: Siding, Hardi and Brick
Roofs: Pitched, Comp.
HVAC: Indiv. Electric
Hot Water: Indiv. in Units
Parking: 82 ± Spaces
Cheshire Gardens DETAILS
UnitsUnit SF±
Total SF±
Market Rent
Monthly Mkt. Rent
Annual Mkt. Rent
Rent SF±
8 Studio 400 3,200 $700 $5,600 $67,200 $1.75
44 1 Bed/1 Bath 633 27,852 $895 $39,380 $472,560 $1.41
6 2 Bed/1 Bath 851 5,106 $1,065 $6,390 $76,680 $1.25
58 623 36,158 $886 $51,370 $616,440 $1.42
UNIT MIX
INCOME Pro FormaTrailing-12 from
Sept. 2017 2016 YE Actuals
Scheduled Market Rent $616,440 — —
Net Rental Income (before Insurance Rent) — $530,629 $462,989
Less: Loss to Lease 1.00% ($6,164) — *
Less: Vacancy 4.00% ($24,658) — *
Less: Concessions 0.50% ($3,082) — *
Less: Non-Revenue Units & Bad Debt 0.25% ($1,541) $2,701 *
Plus: Loss of Revenue-Insurance (Fire Units) — $16,890 $67,560
Net Rental Income $580,995 $550,220 $530,549
Plus: Fee Income (incl. Pet Fees) $18,000 $8,955 $10,126
Plus: RUBS Income $25,000 $21,452 $20,193
Plus: Laundry Income $4,000 $758 $2,359
Plus: Other Income $6,000 $1,964 $5,263
Total Operating Income (EGI) $633,995 $583,349 $568,489
EXPENSES Per Unit Pro Forma
Administrative $147 $8,500 $7,584 $9,741
Advertising & Promotion $78 $4,500 $4,112 $1,245
Payroll $1,000 $58,000 $56,925 $73,433
Repairs & Maintenance $450 $26,100 $35,893 $26,659
Management Fee 4.00% $437 $25,360 $22,476 $20,526
Utilities $776 $45,000 $43,446 $36,060
Contracted Services $138 $8,000 $9,185 $7,294
Real Estate Taxes — 80% of ask price 2.213985% $1,863 $108,042 $49,632 $54,632
Insurance $275 $15,950 $13,652 $16,915
Total Expenses $299,452 $242,905 $246,506
Per Unit: $5,163 $4,188 $4,250
Per SF: $8.28 $6.72 $6.82
Net Operating Income $334,542 $340,444 $321,984
• *Fire occurred January 2015 in one building (8 units); property returned to 100% occupancy in December 2016• Real Estate Taxes for 2017 based on Assessed Value of $2,556,700 at 2.213985% (2017 rate)• 2017 Insurance based on Building Insurance = $9,081, GL = $4,570.65 and Umbrella = $13,651.65 combined• Actual Cap Ex = $21,971 (Sept. 2017 T-12), $56,527 (2016), $46,696 (2015), $101,492 (2014) and $56,285 (2013)
Notes:
Financial ANALYSIS
Floor PLANS
2 BR x 1 BATH
1 BR x 1 BATH
STUDIO
Site & Location MAPS
W. William Cannon Dr.
Patio
Pinic Area
Recepticals
104
204
323 324321 322
119
Laundry
220219
Office
211
111
Pool
101
310 309
223123
224124
221121
222122
120 201
102
202
103
203
217
117
218
118
116115
216215
108 107
114
214213
113
212
112
210111
209109
308 307208 207
305205105
306206106
Area MAP
Neighborhood OVERVIEW
RETAIL
� Southpark Meadows
� HEB Grocery Stores
� Sprouts Farmers Market
� Central Market
� Walgreens
� Lowe’s Home Improvement
� Sunset Valley Village
� Home Depot
� Shady Hollow Shopping Center
� Kohl’s
� DSW
� Costco
� Whole Foods
� Arbor Trails
� Town Square Shopping Center
� South Oaks Shopping Center
� Cherry Creek Plaza
� Tanglewood Village Shopping Center
RESTAURANTS
� Kerbey Lane
� LongHorn Steakhouse
� Cane Rosso
� Mighty Fine
� Radio Coffee & Beer
� Azul Tequila
� Chuy’s Tex-Mex
� Evangeline Cafe
� The ABGB
� Cafe Malta
� Starbuck’s Coffee
� Casa Garcia’s
� Moontower Saloon
� Torchy’s Tacos
� Galaxy Cafe
� Maudie’s Hacienda
� Hyde Park Bar & Grill
� Madam Mam’s Thai Cuisine
ENTERTAINMENT
� Alamo Draft House Slaughter Lane
� Cinemark Southpark Meadows
� Regal Cinemas Westgate 11
� Frank Erwin Center
� Paramount Theatre
� Blanton Museum of Art (U.T.)
� Umlauf Sculpture Garden
� The Long Center for the Performing Arts
� Harry Ransom Center (U.T.)
� Circuit of The Americas
� Darrell K. Royal Football Stadium (U.T.)
� Frank Erwin Center (U.T.)
� Altitude Trampoline Park
� Blue Starlite Mini Urban Drive In
� Broken Spoke
� Westgate Lanes
� The Continental Club
� ZACH Theatre
EASY ACCESS
� Interstate Highway 35
� Highway 71 / Ben White
� Loop One (MoPac Expwy)
� Brodie Lane
� South Congress Avenue
� South First Street
� South Lamar Boulevard
� Manchaca Road
OUTDOORS
� Barton Creek Greenbelt
� Zilker Park
� Barton Springs Pool
� Lady Bird Wildflower Center
� Williamson Creek East Greenbelt
� Mabel Davis District Park
� Blunn Creek Nature Preserve
ADDITIONAL DESTINATIONS
� 6 mi. to CBD
� 9.7 mi. to U.T. (Main Campus)
� 5 mi. to St. Edward’s University
� 8.2 mi. to Austin Convention Center
� 1.3 mi. to South First Street
� 1.9 mi. to South Congress Avenue
� 12 mi. to Austin-Bergstrom International
Airport (ABIA)
AISD SCHOOLS
� Cunningham Elementary School
� Covington Middle School
� Crockett High School
CHESHIRE GARDENS2121 W. WILLIAM CANNON DR.
Austin Economic FACTS
� Austin, Texas is ranked “The best place to invest in property and develop in 2017,” according to the
annual Emerging Trends in Real Estate report by the Urban Land Institute and PricewaterhouseCoopers.
� Forbes continues to rank Austin #1 as the “Next Biggest Boom Town in the U.S.” Austin also
consistently sits atop Forbes’ annual list of the best cities for jobs.
� Austin added 28,300 net new jobs, a growth of 2.8%, in the 12 months ending in May, making Austin
the 12th fastest growing major metro (Austin Chamber of Commerce).
� Austin is the No. 2 Best-Performing City in annual assessment of Where America’s Jobs are Created
and Sustained, according to the Milken Institute in a December 2016 report.
� According to a February 2015 report from U.S. News and World Reports, Austin was named #1 Best
Place To Live in the USA.
Economic Fundamentals Improving
State of Texas Government 63,000
University of Texas at Austin Higher education, public 23,131
Dell Technologies Computer technology solutions & equipment mfg./sales (Hdq.) 13,000
City of Austin Government 12,580
Austin Independent School District Public education 12,395
Federal Government Government 11,900
Seton Healthcare Family Healthcare (Hdq.) 10,270
St. David's Healthcare Partnership Healthcare (Hdq.) 8,598
Samsung Austin Semiconductor Semiconductor chip mfg., R&D (Hdq.) 6,074
Apple Computer maker's tech, chip engineering, & admin support center (Americas Hdq.) 6,000
IBM Corp. Computer systems, hardware, software, & chip R&D 6,000
Round Rock Independent School District Public education 5,798
Travis County Government 5,288
U.S. Internal Revenue Service Government (regional call & processing center) 5,200
NXP Semiconductors Semiconductor chip design & mfg. (Hdq.) 5,000
Texas State University-San Marcos Higher education, public 4,873
Leander Independent School District Public education 4,243
Austin Community College Higher education, public 3,553
Applied Materials Semiconductor production equipment mfg. & R&D 3,100
Others: Amazon, Bazaarvoice, IRS, Whole Foods Market, Accenture, AMD, Homeway, HP, Intel, GM, Activision Blizzard, Cisco Systems
Top Austin Employers
(Source: Austin Chamber of Commerce)
Information About Brokerage Services 11-2-2015
Texas law requires all real estate license holders to give the following information about
brokerage services to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS:
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
Put the interests of the client above all others, including the broker’s own interests;Inform the client of any material information about the property or transaction received by the broker;Answer the client’s questions and present any offer to or counter-offer from the client; andTreat all parties to a real estate transaction honestly and fairly.
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner,usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum dutiesabove and must inform the owner of any material information about the property or transaction known by the agent, includinginformation disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through awritten representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of anymaterial information about the property or transaction known by the agent, including information disclosed to the agent by the seller orseller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the writtenagreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold orunderlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:
Must treat all parties to the transaction impartially and fairly;May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner andbuyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.Must not, unless specifically authorized in writing to do so by the party, disclose:
that the owner will accept a price less than the written asking price;that the buyer/tenant will pay a price greater than the price submitted in a written offer; andany confidential information or any other information that a party specifically instructs the broker in writing not todisclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent thebuyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:The broker’s duties and responsibilities to you, and your obligations under the representation agreement.Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation foryou to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Licensed Broker/Broker Firm Name orPrimary Assumed Business Name
License No. Email Phone
Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/ License No. Email PhoneAssociate
Phone: Fax:
Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com
Sales Agent/Associate's Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov
IABS 1-0TAR 2501
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Muskin Commercial,LLC 9000275 [email protected] (512)343-2700
Ellen Muskin 334236 [email protected] (512)343-2700
Ellen Muskin 334236 [email protected] (512)343-2700
Daniel Elam 616676 [email protected] (512)343-2700
Muskin Commerical, LLC, 4705 Spicewood Springs Rd, Ste 200 Austin, TX 78759 (512)343-2700 (512)343-2703Ellen Muskin
IABS
www.muskincommercial.com
ELLEN MUSKIN512.343.2700 x3
DANIEL ELAM512.343.2700 x4
4601 Spicewood Springs Road, Bldg 4, Suite 101, Austin, TX 78759
MULTIFAMILY INVESTMENTS SALES
Muskin Commercial, LLC has prepared this brochure to provide summary information to prospective purchasers and makes no warranty or representation about the content. While this information has been obtained from sources believed to be reliable; Muskin Commercial, LLC has not conducted any investigation regarding these matters and prospective purchasers should independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are examples only and do not necessarily represent the current or future performance of the property. This brochure does not constitute an offer of sale, but is merely an invitation to bid.
