120 Dan St
Ogden, UT 84404
PARKWOOD APARTMENTS · Multifamily Property For Sale · 20 Units

PORTFOLIO HIGHLIGHTS INSULATION FROM RISING RATES Low risk prole multi-family property with rents guaranteed not to uctuate with the market: Utah’s Prime Property Manager Purchase price is set at approximately 5% CAP, based on above market rates and HAP Contract. Rental rates are increased by 3% annually per Section 8 Contract guidelines. Management has renovated 3 to 5 units per month and raised the suitability of units considerably. As the economy continues to strengthen interest rates will rise, CAP rates will rise. Inversely, property values will decline. If one’s investment is subject to conventional refinancing every 5 years, the next refi call from the lending institution will lead to an untenable scenario where upon the value of one’s property is now less than the debt currently placed on the asset. In order to maintain the lending institution’s LTV ratios and the investment maintain yield, there will be a capital call or a foreclosure. is program is insulated from this scenario... 100% OCCUPANCY WITH WAITING LIST FROM LOCAL HOUSING AUTHORITY GUARANTEED 20 YR HAP CONTRACT HUD RATES, FIXED 40 YR AM, LOWER DSC, LOW RISK PROFILE YIELDS HIGHLIGHTS 2HIGHLIGHTS A necessary expense, yearly rates negotiated at below market costs for superior Property Management and HAP Contract administration. Even with unemployment rates in Ogden Utah at historical lows and the local economy growing by over 7% in 2017, there is still a need for Affordable Housing Programs. e combination of the condition of this property, its amenities, and its central location keep this property fully tenanted with virtually zero vacancies. e Section 8 HAP Contract is a full 20 year contract with HUD for the property itself. is contract is considered the most favorable of contracts from the perspective of the property owner. e rents do not fluctuate with the rise and fall of the market and increase by 3% annually. HUD has lower interest rates available (3.3%), a fixed 40 year amortization schedule, significantly lower debt service coverage ratios on this product than convential lenders, and steady Class A yields for the term of the investment. e underlying finance will not be subject to the aforementioned scenario of a negative equity position due to the rise of interest rates, by the FED, in an effort to stave off inflation. When CAP rates inevitably rise and the correction comes to the multifamily market, this yield will experience favorable insulation and protection