300 Highway OM

300 HIGHWAY REDEFINING MULTIFAMILY INVESTMENTS (513) 878-7735

ADGMultifamily.com

CONFIDENTIALITY & DISCLAIMER The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap.

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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 of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or 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 offering memorandum has been obtained from sources we believe 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT ANDREWS | DICKMAN FOR MORE DETAILS.

2

ADG MULTIFAMILY

PRESENTED BY

J.D SCHMERGE

Associate 513-878-7756 jd.schmerge@marcusmillichap.com

JORDAN DICKMAN

First Vice President of Investments Director, National Multi Housing Group 513-878-7735 Jordan.Dickman@marcusmillichap.com

NICK ANDREWS

First Vice President of Investments Director, National Multi Housing Group 513-878-7741 Nick.Andrews@marcusmillichap.com

ADG MULTIFAMILY

3

the table of

CONTENTS

1 2 3

the COMPE TITIVE SE T | 08 rent comparables............................................10 rent matrix........................................................12

the PERSPECTIVE | 14 unit mix........................................................... 16 financial breakdown...................................... 18

the MARKET | 20 cincinnati higlights...........................................22 world class employment................................. 24

EXECUTIVE SUMMARY

300 HIGHWAY PRICING SUMMARY Unpriced, Call For Offers

LISTING PRICE NUMBER OF UNITS

15 UNTIS

SQUARE FOOTAGE

11,840 SF 789 SF

AVG UNIT SIZE

$73,932

YR. 1 NOI AVG EFFECTIVE RENT/UNIT

$748

AVE PROFORMA RENT/UNIT

$751

Marcus & Millichap is pleased to present 300 Highway, a 15unit apartment complex in the hyper growth Ludlow submarket of Northern Kentucky. Built in 1970, the asset totals about 11,840 square feet. The building features recently non renovated, partially renovated, and fully renovated one and two-bedroom apartments with an occupancy rate of 93%. Average unit sizes are 720 square feet for one-bedrooms and 850 square feet for two-bedrooms.

$0.95

AVE PRO FORMA RENT/SF

UNIT MIX SUMMARY

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

SF

SF

One Bedroom

7 Units

720 SF

5,040 SF

$712.72

$0.99

$4,989

$719.29

$1.00 SF

$5,035

$749.29

$1.04 SF

$5,245

Two Bedroom

8 Units

850 SF

6,800 SF

$780.25

$0.92

$6,242

$780.25

$0.92 SF

$6,242

$830.25

$0.98 SF

$6,642

Totals / Wtd. Averages

15 Units

789 SF

11,840 SF

$748.73

$0.95 SF

$11,231

$751.80

$0.95 SF

$11,277

$792.47

$1.00 SF

$11,887

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

A CITY BUILT ON STRONG FUNDAMENTALS •

EXECUTIVE SUMMARY

There are seven Fortune 500 companies in Greater Cincinnati. Out of the Fortune 500 companies, 400 of them have a presence in the city as well. Cincinnati has three Fortune Global 500 companies. Out of the five Fortune Global 500 companies in the state of Ohio, three of them call Cincinnati home. Cincinnati’s GDP per capita grew at 1.3% higher than the national average of 1.2%.

Cincinnati’s future growth over the next 10 years is expected to be 29.8%.

Northern Kentucky Explosive Apartment Growth •

Northern Kentucky’s apartment rental income growth has been explosive over the last 5 years.

Between 2015 and 2020, apartment rents have increased at an average of 4.1% with an average occupancy of 95.29%. There are several developments in progress in the surrounding area featuring a variety of development types such as multifamily, retail, office, entertainment, etc.

Strong Market Provides Ability to Organically Push Rents •

Due to the strength of the market that 300 Highway is in, there is a great ability to organically push rents.

We are projecting pro forma rents to be pushed nearly 6% from current average effective rents without doing any work or improvements to the units.

Unit Potential •

300 Highway has some units that are non renovated, partially renovated, and fully renovated. This provides great potential in two ways and leaves an investor with two options. First is the ability to keep the units as is and organically push the rents for both the renovated and unrenovated units. Second is the ability to renovate the non renovated units to increase value and push all of the rents to a higher level.

Located in One of the Highest and Hottest Growth Corridors in All of Cincinnati with Over $500,000,000 of Private and Public Investment Over the Next 3 Years •

New developments in this area include Ovation Phase I and II, Newport on the Levy redevelopment, AEG PromoWest music venue, Corporex office conversion to 187 high-end apartments, Newport SkyWheel, World Peace Bell mixed-use project, and Covington Yard development.

01

the COMPETITIVE SET

10 12

8

ADG MULTIFAMILY

- market comparables - rent matrix

ADG MULTIFAMILY

9

COMPETITIVE SET

THE COMPARABLES 1

WOODS OF PARK HILLS

2

INTERNATIONAL VILLAGE

3

MITCHEL’S PARK

1002-1010 Parkvale Ct, Park Hills, KY Year Built: 1972 Units: 45 Occupancy: 97%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$812 $910

760 813

$1.07 $1.12

COMPARABLES RENT ANALYSIS $0-$812

1 Bed LOW

HIGH $0-$910

2 Bed

Features/Amenities: laundry facilities, grill/picnic area, fitness center, fireplace, full kitchen, pet friendly

LOW

HIGH SUBJECT

COMP

2333 Anderson Rd, Cresent Springs, KY Year Built: 1984 Units: 114

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$790 $845

900 1025

$.88 $.82

COMPARABLES RENT ANALYSIS $0-$812

1 Bed LOW

Occupancy: 100%

HIGH $0-$910

2 Bed LOW

Amenities/Features: laundry facilities, pool, controlled access, on-site manager, sundeck, grill/picnic area, tile floors, views, walk-in closets, large bedrooms

HIGH SUBJECT

COMP

274 General Mitchel Ln, Fort Mitchell, KY Year Built: 1987 Units: 200 Occupancy: 100%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$765 $790

795 900

$0.96 $0.88

Amenities/Features: laundry facilities, controlled access, pool, fitness center, clubhouse, tennis court, volleyball court, LVP flooring, large closets, balcony/patio

COMPARABLES RENT ANALYSIS $0-$812

1 Bed LOW

HIGH $0-$910

2 Bed LOW

HIGH SUBJECT

COMP

COMPETITIVE SET

RENT MATRIX

Property

Year Built

Unit Type

SF

Avg Rent

Avg Rent/SF

Bluffs at Devou Park

1972

44

854

$1,072

$1.26

Riverbanks Apartments

1966

37

797

$953

$1.20

Woods of Park Hills

1972

45

787

$861

$1.09

International Village

1984

114

963

$818

$0.85

300 Highway Pro Forma (Avg)

1970

15

785

$790

$1.01

Mitchel's Park 1238 Highway Ave (1 BR Only)

1987 1955

200 4

848 720

$778 $750

$0.92 $1.04

Parkway Apartments

1922

26

875

$685

$0.78

Running Creek

1975

144

825

$680

$0.82

NOTE: averages are for 1BR and 2BR 12

ADG MULTIFAMILY

*Averages are 1BR & 2BR

300 HIGHWAY

WOODS OF PARK HILLS

INTERNATIONAL VILLAGE

MITCHEL’S PARK APARTMENTS

ADG MULTIFAMILY

13

02

the PERSPECTIVE

16 18 20 14

ADG MULTIFAMILY

- unit mix - financial breakdown - case study

ADG MULTIFAMILY

15

300 HIGHWAY

THE UNIT MIX PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

SF

SF

One Bedroom

7 Units

720 SF

5,040 SF

$712.72

$0.99

$4,989

$719.29

$1.00 SF

$5,035

$749.29

$1.04 SF

$5,245

Two Bedroom

8 Units

850 SF

6,800 SF

$780.25

$0.92

$6,242

$780.25

$0.92 SF

$6,242

$830.25

$0.98 SF

$6,642

Totals / Wtd. Averages

15 Units

789 SF

11,840 SF

$748.73

$0.95 SF

$11,231

$751.80

$0.95 SF

$11,277

$792.47

$1.00 SF

$11,887

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

16

ADG MULTIFAMILY

AVERAGE EFFECTIVE

One Bedroom

Rentable

Total

MARKET

PROJECTED

MARKET

PROJECTED

Total Rent

Total Rent

Unit Type

Units

SF

SF

Rent/Unit

Rent/SF

Potential

Rent/Unit Rent/SF

1x1 Non Renovated

2 Units

720 SF

1,440 SF

$635.00

$0.88 SF

$1,270

$635.00

1x1 Partially Renovated

3 Units

720 SF

2,160 SF

$709.67

$0.99 SF

$2,129

1x1 Fully Renovated

2 Units

720 SF

1,440 SF

$795.00

$1.10 SF

Totals / Wtd. Averages

7 Units

720 SF

5,040 SF

$712.72

$0.99 SF

Rentable

Total

Avg.

Total Rent

Potential

Rent/Unit

Rent/SF

Potential

$0.88 SF

$1,270

$665.00

$0.92 SF

$1,330

$725.00

$1.01 SF

$2,175

$755.00

$1.05 SF

$2,265

$1,590

$795.00

$1.10 SF

$1,590

$825.00

$1.15 SF

$1,650

$4,989

$719.29

$1.00 SF

$5,035

$749.29

$1.04 SF

$5,245

Avg.

Total Rent

Total Rent

Total Rent

Two Bedroom

Units

SF

SF

Rent/Unit

Rent/SF

Potential

2x1 Non Renovated

5 Units

850 SF

4,250 SF

$735.00

$0.86 SF

$3,675

$735.00

2x1 Partially Renovated

1 Units

850 SF

850 SF

$769.00

$0.90 SF

$769

2x1 Fully Renovated

2 Units

850 SF

1,700 SF

$899.00

$1.06 SF

Totals / Wtd. Averages

8 Units

850 SF

6,800 SF

$780.25

$0.92 SF

Rent/Unit Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

$0.86 SF

$3,675

$785.00

$0.92 SF

$3,925

$769.00

$0.90 SF

$769

$819.00

$0.96 SF

$819

$1,798

$899.00

$1.06 SF

$1,798

$949.00

$1.12 SF

$1,898

$6,242

$780.25

$0.92 SF

$6,242

$830.25

$0.98 SF

$6,642

ADG MULTIFAMILY

17

Year 1

(Rent Roll/T3 Income; T12 Expenses)

(RUB Implementation; Stabilized LTL, Occupancy, and Other Income; Normalized Expenses)

GROSS POTENTIAL RENT

INCOME

FINANCIAL BREAKDOWN &

All Units at Market Rent

% of GPR $135,324

Gain (Loss) to Lease

($552)

GROSS SCHEDULED RENT

$134,772

0.41% RR

Per Unit

% of GPR

9,022

$142,644

(37)

($1,426)

8,985

$141,218

Per Unit 9,510

1.00%

(95) 9,415

Other Income Water & Sewage RUBs

$0

Note 5

0.00%

0

$8,220

5.82%

548

Pet Rent

$1,960

T3

1.45%

131

$2,066

1.46%

138

Late Fees

$1,460

T3

1.08%

97

$1,539

1.09%

103

Laundry

$1,228

T3

0.91%

82

$1,294

0.92%

86

NSF Fees

$600

T3

0.45%

40

$632

0.45%

42

Pet Fees Non Refundable

$600

T3

0.45%

40

$632

0.45%

42

Application Fees

$540

T3

0.40%

36

$569

0.40%

38

4.74%

426

$14,954

10.59%

997

9,411

$156,171

4.30%

(387)

($7,061)

5.00%

(471)

95.29%

9,024

$149,110

94.00%

9,941

% of EGI

Per Unit

% of EGI

Per Unit

9.28%

837

$12,555

8.42%

837

9.28%

837

$12,555

8.42%

837

Total Other Income

$6,388

GROSS POTENTIAL INCOME

$141,160

Physical Vacancy

($5,800)

EFFECTIVE GROSS INCOME

$135,360

EXPENSE

VALUE ANALYSIS

Current

T3

10,411

Non-Controllable Real Estate Taxes 2019 Taxes Paid

Total Real Estate Taxes Insurance

$12,555

Note 3

$12,555 $6,998

T12

5.17%

467

$6,750

4.53%

450

Electric

$4,139

T12

3.06%

276

$4,222

2.83%

281 71

Utilities Electric Vacant

$1,049

T12

0.78%

70

$1,070

0.72%

Gas

$1,408

T12

1.04%

94

$1,436

0.96%

96

Water & Sewage

$12,972

T12

9.58%

865

$13,232

8.87%

882

$1,290

T12

0.95%

86

$1,316

0.88%

88

Total Utilities

Trash Removal

$20,858

15.41%

1,391

$21,275

14.27%

1,418

Total Non-Controllable

$40,412

29.85%

2,694

$40,580

27.22%

2,705

Total Utilities Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services

Repairs, Maintenance & Labor

T12

0.48%

43

$525

0.35%

35

T12

3.15%

284

$1,500

1.01%

100

$180

T12

0.13%

12

$225

0.15%

15

3.76%

340

$2,250

1.51%

150

1,150

$17,250

11.57%

1,150

$5,093

$17,255

Normalized

12.75%

$140

T12

0.10%

9

$750

0.50%

50

General & Administrative

$1,574

T12

1.16%

105

$1,500

1.01%

100

Management Fee

$5,532

T12

4.09%

369

$8,947

6.00%

596

Replacement & Reserves

$3,825

Note 4

2.83%

255

$3,902

2.62%

260

Total Controllable

$33,419

24.69%

2,228

$34,598

23.20%

2,307

TOTAL EXPENSES

$73,831

54.54%

4,922

$75,178

50.42%

5,012

NET OPERATING INCOME

$61,530

45.46%

4,102

$73,932

49.58%

4,929

Marketing Promotion

18

$646 $4,267

Year 2

Underwriting Notes & Assumptions

(3% Rent Increase) % of GPR $146,923 ($1,469)

Per Unit 9,795

1.00%

$145,454

(98) 9,697

# Note 1 Rent Roll Date: March 2021 2 T12 Date Range: March 2020 - February 2021 3 Taxes: based on information from owner

$8,467

5.82%

564

$2,128

1.46%

142

$1,585

1.09%

106

$1,333

0.92%

89

$651

0.45%

43

$651

0.45%

43

6 Gross Potential Rent: assumes a normal growth of 3% starting in year 2 7 Loss to Lease: assumes a 1% norm starting in year 1

$586

0.40%

39

$15,402

10.59%

1,027

$160,856

10,724

($7,273)

5.00%

(485)

$153,584

94.00%

10,239

% of EGI

Per Unit

$12,555

8.17%

837

$12,555

8.17%

837

$6,885

4.48%

459

$4,306

2.80%

287

$1,092

0.71%

73

$1,464

0.95%

98

$13,496

8.79%

900

$1,342

0.87%

89

$21,700

14.13%

1,447

$41,141

26.79%

2,743

$536

0.35%

36

$1,530

1.00%

102

$230

0.15%

15

$2,295

1.49%

153

$17,595

11.46%

1,173

$765

0.50%

51

$1,530

1.00%

102

$9,215

6.00%

614

$3,980

2.59%

265

$35,380

23.04%

2,359

$76,520

49.82%

5,101

$77,063

50.18%

5,138

4 Replacement & Reserves: added based on market norm of $255 per unit per year 5 Water & Sewage RUBs: added based on assumption of $35 per unit per month for 1BR units and $55 per unit per month for 2BR units

8 Physical Vacancy: set at 5% which is the norm for this market

ADG MULTIFAMILY

19

03

the MARKET

22 24

20

ADG MULTIFAMILY

- cincinnati highlights - world class employment

ADG MULTIFAMILY

21

LOCAL MARKET HIGHLIGHTS

CINCINNATI, OH Where Southwest Ohio, Northern Kentucky, and Southwest Indiana meet, doers, dreamers, and innovators come together to make it happen. There are many growing companies, including seven Fortune 500 Companies, that already call the Cincinnati region home and provide thousands of jobs to residents. The Cincinnati area provides an attractive business environment for companies due to it’s low cost of doing business while still allowing employees to enjoy a relatively affordable place to live.

Growth in service-oriented industries has also lessened the area’s dependence on the manufacturing and transportation sectors. The Cincinnati Metro is a 15-county region located within portions of Ohio, Kentucky, and Indiana that maintains a population of nearly 2.2 million. The metro is expected to add nearly 79,400 people and approximately 37,800 households through 2022. Half of the nation’s population and 30 major markets are within a one-day drive of the Cincinnati MSA, allowing it to be thought of as a central distribution point. Foodies and food trucks, brewmasters and bourbon, professional sports, tradition and transformation - it’s all happening in Cincinnati.

DEMOGRAPHICS

Population Median Age Median Household Income (2019) # of Houses (2019) # of Employees

2,035,800 39.2 $67,613 804,119 641,740

LOCAL HIGHLIGHTS • Home to America’s oldest sports team, the Cincinnati Reds • Biggest Oktoberfest in the country with over 500,000 attendees annually • Cincinnati is the 3rd largest city in Ohio with a population of over 300,000 • Home to Christ Hospital, ranked No. 1 overall in the region by U.S News

RETAIL, NIGHTLIFE & CULTURE

ATTRACTIVE BUSINESS ENVIRONMENT

Nightlife in Cincinnati is highlighted by OTR as well as downtown, at The Banks. Live music is found a local resturants/bars.

There are serveral different atmospheres for people looking to change up there weekend from the same old resturants.

Seven Fortune 500 companies call Cincinnati home.

Companies are drawn to the region’s low cost of doing business, while employees enjoy a relatively affordable place to live. A few of the major area employers include Proctor & Gamble, Kroger Co, University of CIncinnati, TriHealth Inc, GE, and Fifth Third Bank.

In addition, Cincinnati was named one of Esquire Magazine’s “Top 10 Cities that Rock,” and with good reason, as the city has a lively music scene and nationally-acclaimed dining options.

There are many venues throughout Cincinnati, but the most popular include Riverbend Music Center and the future Andrew J Brady ICON Music Center.

Retail options include Kenwood Mall and OTR.

CINCINNATI

WORLD CLASS EMPLOYMENT In 2017, Amazon announced that is was investing $1.49 billion to create the retail titain’s first air cargo hub for packages. The company is clearing about 920 acres at The Cincinnati/Northern Kentucky International Airport (CVG).

Judge-executive Gary Moore says that it will not only be the largest building in Boone County, it will also be the largest in this party of the country. Currently, CVG is the largest cargo hub airport in the nation without the new Amazon Hub. The project broke ground in May 2019 and will be completed in 2021.

OPENING SF INVESTMENT

2021 3M $1.5B

Jobs Created

2,000+

“We’re going to move Prime from twoday to one-day, and this hub is a big part of that.”

Jeff Bezos, Founder & CEO, Amazon

ANDREW J BRADY ICON MUSIC CENTER

Unique in design and capacity, the $27 million sate-of-the-art Andrew J. Brady ICON Music Center is set to open fall 2021 and will be unparalleled to any other music venue in the region. It is being designed to fill Cincinnati’s need for a year-round, flexible music venue. The ICON’s maximum capacity is much larger than any other indoor venue of its kind in the area. MEMI is developing the venue to feature both indoor and outdoor stages and seating. The indoor venue has a capcity of 4,500 and the outdoor area has a capacity of 8,000.

OPENING Maximum Capacity Investment Events Hosted Annually

2021 12,500 $27M 170

INCOME

FINANCIAL BREAKDOWN &

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

Yr 7

YR 8

YR 9

YR 10

YE Nov-2021

YE Nov-2022

YE Nov-2023

YE Oct-2024

YE Oct-2025

YE Oct-2026

YE Oct-2027

YE Oct-2028

YE Oct-2029

YE Oct-2030

$135,324

$142,644

$146,923

$151,331

$155,871

$160,547

$165,363

$170,324

$175,434

$180,697

$186,118

($552)

($1,426)

($1,469)

($1,513)

($1,559)

($1,605)

($1,654)

($1,703)

($1,754)

($1,807)

($1,861)

$134,772

$141,218

$145,454

$149,818

$154,312

$158,942

$163,710

$168,621

$173,680

$178,890

$184,257

$6,388

$14,954

$15,402

$15,864

$16,182

$16,505

$16,835

$17,172

$17,515

$17,866

$18,223

$141,160

$156,171

$160,856

$165,682

$170,494

$175,447

$180,545

$185,793

$191,195

$196,756

$202,480

INCOME GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss)-to-Lease GROSS SCHEDULED RENT TOTAL OTHER INCOME GROSS POTENTIAL INCOME Physical Vacancy

($5,800)

($7,061)

($7,273)

($7,491)

($7,716)

($7,947)

($8,185)

($8,431)

($8,684)

($8,945)

($9,213)

EFFECTIVE GROSS INCOME

$135,360

$149,110

$153,584

$158,191

$162,778

$167,500

$172,360

$177,362

$182,511

$187,811

$193,267

$12,555

$12,555

$12,555

$12,555

$12,806

$13,063

$13,324

$13,590

$13,862

$14,139

$14,422

$6,998

$6,750

$6,885

$7,023

$7,163

$7,306

$7,453

$7,602

$7,754

$7,909

$8,067

$20,858

$21,275

$21,700

$22,135

$22,577

$23,029

$23,489

$23,959

$24,438

$24,927

$25,426

EXPENSES

EXPENSES

CASH FLOW

CURRENT

Real Estate Taxes Insurance Utilities Contract Services Repairs & Maintenance

Marketing & Promotion

$5,093

$2,250

$2,295

$2,341

$2,388

$2,435

$2,484

$2,534

$2,585

$2,636

$2,689

$17,255

$17,250

$17,595

$17,947

$18,306

$18,672

$19,045

$19,426

$19,815

$20,211

$20,615

$140

$750

$765

$780

$796

$812

$828

$845

$862

$879

$896

$1,574

$1,500

$1,530

$1,561

$1,592

$1,624

$1,656

$1,689

$1,723

$1,757

$1,793

Managment Fee

$5,532

$8,947

$9,215

$9,491

$9,767

$10,050

$10,342

$10,642

$10,951

$11,269

$11,596

Replacement & Reserves

$3,825

$3,902

$3,980

$4,059

$4,140

$4,223

$4,308

$4,394

$4,482

$4,571

$4,663

TOTAL EXPENSES

$73,831

$75,178

$76,520

$77,892

$79,535

$81,214

$82,929

$84,681

$86,470

$88,299

$90,167

NET OPERATING INCOME

$61,530

$73,932

$77,063

$80,299

$83,243

$86,286

$89,431

$92,682

$96,041

$99,513

$103,101

Principal Payments

$14,660

$14,660

$15,181

$15,721

$16,280

$16,859

$17,459

$18,080

$18,723

$19,389

$20,078

Interest Payments

$26,502

$26,502

$25,981

$25,441

$24,881

$24,302

$23,703

$23,082

$22,439

$21,773

$21,083

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

Principal Payments

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Interest Payments

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

TOTAL DS - Loan 2

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$41,162

$20,368

$32,770

$35,901

$39,138

$42,081

$45,124

$48,269

$51,520

$54,879

$58,351

$61,939

1.49

1.80

1.87

1.95

2.02

2.10

2.17

2.25

2.33

2.42

2.50

Return Analysis

Trailing

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

CAP Rate (Purchase Price)

6.04%

7.26%

7.57%

7.88%

8.17%

8.47%

8.78%

9.10%

9.43%

9.77%

10.12%

'All-In' CAP Rate (Total Cost)

6.04%

7.26%

7.57%

7.88%

8.17%

8.47%

8.78%

9.10%

9.43%

9.77%

10.12%

Cash-on-Cash Return

8.00%

12.87%

14.10%

15.37%

16.53%

17.72%

18.96%

20.23%

21.55%

22.92%

24.33%

n/a

36.09%

25.31%

26.81%

25.52%

24.61%

23.92%

23.36%

22.89%

22.50%

22.16%

General & Administrative

DEBT SERVICE - Proposed New Loan

TOTAL DS - Proposed New Loan DEBT SERVICE - Loan 2

CONSOLIDATED DEBT SERVICE NET CASH FLOW AFTER DEBT SERVICE DEBT SERVICE COVERAGE RATIO

IRR

26

ADG MULTIFAMILY

Cash Flow Projection Growth Rate Assumptions YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

Gross Potential Rent

5.41%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

(Loss) / Gain to Lease*

1.00%

1.00%

1.00%

1.00%

1.00%

1.00%

1.00%

1.00%

1.00%

1.00%

Other Income

5.41%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

2.00%

6.00%

6.00%

6.00%

6.00%

6.00%

6.00%

6.00%

6.00%

6.00%

Income

Expenses Expenses Management Fee**

6.00%

Economic Occupancy / (Loss) Summary & Projections YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

Physical Vacancy

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

Non-Revenue Units

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Bad Debt

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Concessions Allowance

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Total Economic Loss

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

*Calculated as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income

ADG MULTIFAMILY

27

FINANCIAL BREAKDOWN &

PRICING

Purchase Price Target Purchase Price

Analysis Assumptions $1,018,500

10.00 Years

Per Unit

$67,900

Analysis Start Date

Mar-2021

Per RSF

$86.02

Terminal Cap Rate

6.54%

Cost of Sale

6.00%

Acquisition / Additional Costs Projected Capital Expenditures

$0

Acquisition Financing Summary

Renovation Cost

$0

Loan Amount

Closing Costs

$0

Loan to Value (LTV)

75.00%

Transfer Tax

$0

Loan to Cost (LTC)

75.00%

Total Loan Fees

$0

Existing or Proposed Loan

Proposed

Total Acquisition Costs

$0

Origination Date

Mar-2021

Interest Rate Total ('All-In') Cost Total Cost

Years Interest Only

Per Unit

$67,900

Equity Required

Per RSF

$86.02

Equity to Value

Avg. Effective Rent

$749

Per RSF

$0.95

Avg. Current Market Rent

$752

Per RSF

$0.95

Avg. Projected Rent

$792

Per RSF

$1.00

Total Expenses Summary (Per Unit) Trailing

$4,922

Year 1

$5,012

Year 2

$5,101

NOI Summary Trailing

$61,530

Year 1

$73,932

Year 2

$77,063

Economic Loss Summary Trailing

4.30%

Year 1

5.00%

10-Year Projected Avg.

5.00%

ADG MULTIFAMILY

$763,875

3.50% 0.00

$1,018,500

Rent Summary (Monthly)

28

Analysis Period

$254,625 25.00%

ANTICIPATED VALUE RANGE

Whisper/List Range for Marketing

Target Value

Suggested List Price:

Cash on Cash Return Internal Rate of Return (IRR)

All-In CAP Rate

Cash-on-Cash Return

Price

Per Unit

Per RSF

Trailing

Year 1

Year 2

Trailing

Year 1

Year 2

Year 3 (Fully Amortizing)

$1,063,500

$70,900

$89.82

5.79%

6.95%

7.25%

7.66%

12.33%

13.50%

14.72%

$1,048,500

$69,900

$88.56

5.87%

7.05%

7.35%

7.77%

12.50%

13.70%

14.93%

$1,033,500

$68,900

$87.29

5.95%

7.15%

7.46%

7.88%

12.68%

13.90%

15.15%

$1,018,500

$67,900

$86.02

6.04%

7.26%

7.57%

8.00%

12.87%

14.10%

15.37%

$1,003,500

$66,900

$84.76

6.13%

7.37%

7.68%

8.12%

13.06%

14.31%

15.60%

$988,500

$65,900

$83.49

6.22%

7.48%

7.80%

8.24%

13.26%

14.53%

15.84%

$973,500

$64,900

$82.22

6.32%

7.59%

7.92%

8.37%

13.46%

14.75%

16.08%

‘MARKET BID’

Marketing the asset without a specific price allows us to customize our sales approach to each investor’s specific rehab costs, cost of debt and minimum return requirements. Thus facilitating a competitive bidding environment and ultimately maximizing the value of the Property.

Trailing

Yr 1

Yr2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

8.00%

12.87%

14.10%

15.37%

16.53%

17.72%

18.96%

20.23%

21.55%

22.92%

24.33%

n/a

36.09%

25.31%

26.81%

25.52%

24.61%

23.92%

23.36%

22.89%

22.50%

22.16%

CAP Rate (Purchase Price)

6.04%

7.26%

7.57%

7.88%

8.17%

8.47%

8.78%

9.10%

9.43%

9.77%

10.12%

CAP Rate (“All-In”)

6.04%

7.26%

7.57%

7.88%

8.17%

8.47%

8.78%

9.10%

9.43%

9.77%

10.12%

7.56

7.21

7.00

Gross Revenue Multiplier (GRM)

Asking Price in Relation to Fair Market Value

% of Prospective Purchasers Who Will Look at Property

+10%

2%

+5%

30%

Fair Market Value

60%

-5%

80%

-10%

92%

98.9%

AVERAGE CLOSED TO STRIKE PRICE RATIO

ADG MULTIFAMILY

29

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