Fort Riley in Manhattan, Kansas Is Expected to Double In Population by 2011 ...
... As A Result of Army, Navy, Air Force Base Realignment & Closures (BRAC)
4 Plex Cash Back & Income Opportunity
Fourplexes with 2 2 Bedroom Units & 2 3 Bedroom Units - Can Be Sold Individually
Special 18% Discount to Appraised Value
$22,000 Cash Credit can be used for HOA fees, property mgmt., rent subsidy, 9’ ceilings, walk-out basement
Projection |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
| Projected Income |
76,560 |
57,341 |
60,265 |
63,340 |
66,573 |
| Projected Expenses |
14,328 |
14,758 |
15,201 |
15,657 |
16,126 |
| Net Operating Income |
62,232 |
42,583 |
45,064 |
47,683 |
50,447 |
| Cap Rate |
12.6% |
8.7% |
9.2% |
9.7% |
10.3% |
| Projected Net Income |
27,440 |
7,791 |
10,273 |
12,891 |
15,655 |
| Projected Cash On Cash % |
55.8% |
15.8% |
20.9% |
26.2% |
31.8% |
Note: REIN Alliance does not vouch for the accuracy of this information and does not guarantee future performance results.
This analysis is an illustrative projection of future revenues and expenses based on currently available information.
We do not and cannot
guarantee these figures. Market and project information herein was obtained primarily from the
developer. Please see all accompanying documents for complete details regarding the transactions described
herein.
As with any real estate purchase, investor is subject to real estate and
contract risks.
52 upscale SF attached homes
Each fourplex is made up of two 2-bed units & two 3-bed units-can be sold individually
Mixed with 250K to $1M + SF home development
Minutes from Ft. Riley and Kansas State college
Special REINAlliance pricing $492K-an 18% discount!
22K cash credit or can be used for HOA fees, property mgmt., rent subsidy, 9’ ceilings, walk-out basement,
Create a win/win situation for investors including walk-in equity (today’s dollars), property management, and incentives
Detailed exit strategies including 1031 exchange and full service brokerage for out of state owners
One-Time Assignable Contract (upon approval of developer)
Fort Riley in Manhattan, Kansas Is Expected to Double In Population by 2011 ...
... As A Result of Army, Navy, Air Force Base Realignment & Closures (BRAC)
Base Realignment and Closure Report
The Commission looks at Army Navy Air Force Marines, worldwide
Task is to find ways to more effectively allocate and align our forces
It involves moving units, closing bases as we here are all familiar with here in Sacramento
Two big focuses in 2005, Consolidation and Realignment for more effective peacetime training and wartime deployment
For the Army the major effect was the closure of dozens of bases throughout Europe and Asia, mainly Germany
Realignment of many Aviation Divisions
MANHATTAN, KANSAS
The Big Red One, 1st Infantry Division is located at Fort Riley Army Base in Manhattan, KS
Fort Riley is one of the largest Army bases in the nation
Through 2011 Fort Riley is going to double in size
Nearly twice the number of soldiers and twice the number of family members
A Nearly 25% increase in the civilian work force on base
An conservative estimated increase of nearly 22,000 people in a city that has roughly 50,000 permanent residents
Some of the unknowns at this time, the number of people that will be in on base housing and the number of Retirees that will stay in the area or be moving into the area
Money is given from the BRAC commission to move bases and reallign people, not build on base housing, in an era of shrinking budgets commanders are being forced to focus more on war fighting ability (body armor, armored HUMVEE’s, etc)
The retiree side could be significant also
Manhattan Kansas Current & Future Residents
Home Depot, Starbucks, Panera, Target, Best Buy...
Everyone has recently moved to Manhattan
Home Depot, Super Wal-Mart, Starbucks, Panera Bread, Target, Best Buy are all currently under construction or have moved in the last 3 years
In addition there are major distribution centers that have moved into or built additions to their Manhattan facilities
They are right in the center of the US, right with major interstate highways north and south
Pepsi, Manko windows, Covan Moving
Mercy Regional also is in the middle of completing a 56 million addition in conjunction with Kansas State University
Biotechnology & HomeLand Security
Kansas State University just completed a 54 million dollar Bio-Security Lab that is the most sophisticated facility of it’s type in the Nation. Mad Cow, Bird Flu, SARS, Spinach, Contaminated Pet Food, this is where these things are researched
Dept of Homeland security takes these threats to our country very seriously and are very serious about counteracting bio-terrorism
Kansas is in the running to be home to the National Bio & Agro Defense Facility, being funded by the Dept of Homeland Security
Consists of construction of a 500,000sf research and investigative facility
Manhattan Kansas is one of the front runners at this point with their completion of the Bio Security Lab they showed that they have the ability to complete a govt. contract on time and on budget, and the BSL also has ample room to house portions of the NBADF during and after construction
That decision being made in June of this year, so we should also know before you contracts go hard if Manhattan got this contract. Without it we still think this is a fabulous investment, add the thousands of jobs this facility will create on top of everything else we are talking about to night and it gets even better
What about Kansas State, we haven’t even talked about the university yet
Kansas State University
Ranked #5 on the Princeton Review’s Best Value Universities
Nationally Recognized Expertise & Programs in Emerging and Reemerging Infectious Diseases & Livestock Medicine
Recent Completion of BSL-3 / 54 Million Invested
Part of K State’s Biosecurity Research Institute & it’s National Agricultural Biosecurity Center
Last year it was rated as one of the best values in America by the Princeton Review
It is a thriving college and community, there Bio Security Facility is the most advanced of it’s kind in the nation
It is nationally recognized for it’s work surrounding emerging and re-emerging infectious diseases and have committed to staying at the forefront with the current construction of the 56 million dollar addition at Mercy Hospital we talked about earlier
Downtown Redevelopment Plan
City Awarded $50 Million in Sales Tax Bonds from the State
City Investing Additional $20 Million
Hotel, Restaurant, Conference Center, Cultural Center, Specialty Shopping
Best Buy, First Anchor Tenant Opened October 2006
The City is doing it’s best to keep up with the expansion
Downtown is undergoing a 3 stage redevelopment plan that is currently underway
Plan will overhaul the old city center completely, bring in dozens of restaurants and entertainment facilities, shopping, big box retailers, and a new convention center, to add to it’s already thriving downtown culture
Best Buy was the first anchor tenant to open last October
Some other final highlights on the area
MANHATTAN KANSAS PROFILE
Money Magazine rated it one of the top 10 places to retire based on quality of life for active retirees
Colbert Golf Course is nationally known as one of the longest and most difficult courses in America and is KS #1 rated public course
In addition there are numerous lakes and the river near by, as well as a thriving alive diverse college community with the associated arts and entertainment you would expect to be alive and well in a town like this
They call it the Little Apple, it has a lot to offer, and we think it is an excellent time to enter the market
The best local property mgmt co, top local builder
City installs infrastructure
Need 3000 units
Have built everything from low and higher end multi-family projects, to high end custom homes
Higher quality/better value product as compared to others in the area
Over & Under Garages
Beautiful 20X40 Pool with restrooms and gazebo/picnic area
Property management in place
110K in Walk In Equity!!!
Construction begins October 07’
Final Map Approved
All units will be rent ready
Appraised Value
2-bed unit $143,000**
3-bed unit $160,000**
Total Appraised value = $606,000**
REIN Alliance Sales Price = $492,000
**Today’s $$
Conservative appraisals—could go as high as 670K based on others in the area
Looked at what is selling for160K today
Families swarming the sales office of the other place when we were there on a Tuesday afternoon
Operating Expenses
–Building Cost: $492,000
–Down payment: $49,200
–Financed @ 7.5%: $442,800
–Payment: $2,767
–Insurance: $133
–Taxes: $641
–HOA $200
–Management (5%) $220
–Total $3,961
Rental Income
Rent for 3-bed $1,200. (comps. range from $1,250-1,400.)
Rent for 2-bed $1,000. (comps. range from $975-1,050.)
Gross Monthly Income = $4,400
Net Monthly Income = $439**
(GMI of $4400 – Holding costs of $3961 = $439)
Net Annual Income = $5268
** Does not include property maintenance – One year builder warranty included
Investment process
PreQualify - Minimum 680 FICO scores required (exceptions on a case by case basis)
Initial Deposit of $5,000, additional $5,000 due upon execution of contract (deposited into escrow account) around first of July
$20,000 Additional Deposit due upon start of construction (approx. August 07’)
Deposit to be refunded upon close of escrow (or can be used for down payment)
| Two Year Hold |
|
| Appraised Value (606) + 3 yrs Projected 5% Appr. |
$701,520 |
| Purchase Price |
$492,000 |
| Down payment (10%) + Closing Costs |
-$54,200 |
| 6 % Comm. + Closing Costs (seller) |
-$43,086 |
| REINAlliance Incentives |
$22,000 |
| Net Annual Income (2 YRS) |
$10,536 |
| Total Cash (dp + cc - 22k incentive) |
-$32,200 |
| Net Return |
$198,970 |
|
|
| Total ROI |
616% |
| Yearly ROI |
205% |
|
