CPA Apartments Washington State - CPA

CPA Apartments is a proposed $14M real estate apartment rental project consisting of 52 one-bedroom plus den units, located in Ellensburg, Washington, a university town with a chronic shortage of non-student apartments. This project is sponsored by a highly successful team with a solid track record of apartment development and management in the Washington state area, and the general contractor is a very strong major regional construction firm. The feasibility study, written by a major firm, acknowledges and supports the need for this project with current rental occupancy rates reaching 100%, with an occupancy projection for this project showing 80% by the end of the first year, and 98% thereafter. The sponsor is looking for a $14M construction loan (85% LTC), with terms appropriate for lease up and stabilization and a long-term ‘build and hold’ end game. Financial projections show an $856K net operating income after the first year, and a finished valuation of $17M with a 5 cap rate. All plans have been approved by local authorities and the project can begin immediately after funding is secured. This is a project for an investor looking for minimal risk and long term growth.
USD Year 1 Year 2 Year 3 Year 4 Year 5
Turnover
854,687
909,076
966,400
1,026,810
1,090,466
EBITDA
785,303
839,693
899,016
957,426
1,021,082
%
91.8
92.3
93.0
93.2
93.6
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