5 Point Development

5 POINT D E V E LO P M E N T O P P O RT U N I T Y

LEAD AGENTS JORDAN DICKMAN

First Vice President Investments Cincinnati Office D. 513.878.7735 jordan.dickman@marcusmillichap.com

NICK ANDREWS

First Vice President Investments Cincinnati Office D. 513.878.7741 nicholas.andrews@marcusmillichap.com

AUSTIN SUM

Senior Associate Cincinnati Office D. 513.878.7747 austin.sum@marcusmillichap.com

2

STRATEGY OUTLOOK

MULTIFAMILY TEAM

CORPORATE SUPPORT

JO R D A N D I C K M A N

LIZ P OP P

FIR ST V ICE P RE SI D ENTS D I RECTO R, N M HG

M IDWES T O P ER AT I ON S M A N AGE R

JOSH CARU AN A F I R S T V IC E PRESID E NTS D IRECTO R, NM H G

V ICE P R ES IDEN T REG IO NAL M AN AGE R INDIANAP O L IS | C I N C I N N AT I | LOU I SVI L L E |

A US T I N S U M

JOH N SE BREE

NIC K A ND R E WS

S E N IOR IN V ES T ME NT ASSOCIATE

S T LO U IS | K AN SAS C I T Y

S ENIO R V ICE P R E S I D E N T NAT IO NAL DIR EC TOR NAT IO NAL M U LT I H OU S I N G GROU P

A US T I N H AL L I N V ES TMEN T ASSO CIATE

A L D EN S I MM S

MICH AE L GLASS

S ENIO R V ICE P R E S I D E N T M IDWES T DIV I S I ON M A N AGE R NAT IO NAL DIR EC TOR , M A N U FAC T U R E D H O M E CO M M UN I T I E S GROU P

I N V ES TMEN T ASSO CIATE

BROKER SUPPORT S A M PET R O S IN O

VA LUATION & RE SE ARCH

BR ET T M A R T I N I N T E RN A L AC COUNTANT

BRITTANY CAMPBELL-KOCH DIRECTO R O F O PE R AT I ON S

ALE X P AP A

M ARK ET ING CO OR D I N ATOR

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5 POINT

01

THE ASSET

5 POINT

5 POINT

The Multifamily Site is Currently Shovel ready and zoned. This is a fast action, ready to go site.

If you are looking to break ground sooner than later on your next project this is your site.

Dayton Ohio by the Numbers as of Q3 2023: Dayton Apartment Inventory: 57,218 units 2023/2024 New Supply to date: 737 units Dayton Ohio Occupancy: 95.5% Looking at product classes in Dayton, Class A led for rent performance over the past five years.

Dayton’s recent annual rent change performance ranked #9 in the Midwest region and #29 nationally.

Since 2020 there have only been 22 Market rate properties built In Dayton Ohio with only one of them “Redwood Fairborn” in the Fairborn Market.

STRATEGY OUTLOOK

5 POINT

5 POINT Marcus and Millichap is pleased to present the following Ground Up

buildings. The Multifamily Site currently shows around a 2/1 ratio

Multifamily Development Opportunity. Five Point Shopping Center is

of parking spaces to number of units. The site will have an amen-

approved for 140 Apartment units with a full amenity package of your

ity green space which could play host to many different amenity

choosing. The Site also includes a former Chase Bank building that is

options but not limited to, a grilling area, playground, dog park,

prime for a clubhouse and leasing office Conversion. Five Point Center

Pavilion or future Pool for the residents.

has three other parcels outside of the Multifamily site that are being redeveloped. One of the Parcels a former Big Box Store is currently being converted to 220+ Class “A” Self-storage units. Another parcel is a proposed Strip center. The fourth parcel is being looked at to be developed for a restaurant.

Five Point is located at the corner of Beaver Valley Road and Dayton-Yellow Spring Road in Fairborn, a Submarket of Dayton Ohio and Greene County. The Multifamily Site is a total of 6.89 +/- acreages which include the former Chase bank. The current site plan for 5-Point Apartment complex is currently approved for 140 units to be broken out into (36) 1x1, (92) 2x2, and (12) 3x2 apartment homes. The 140 units will be spread out between Three, Three-story apartment buildings as followed, (1) 56-unit building, (2) 48-unit buildings, and (3) 36-unit

STRATEGY OUTLOOK 9

STRATEGY OUTLOOK

140

UNITS

PROPOSED

Existing Building For Clubhouse

OPPORTUNITY

Full Amenity Package

UTILITIES AT THE SITE

Approved PUD

GROUND UP DEVELOPMENT

5 POINT

New apartment completions in Dayton were modest, as 737 units delivered in the year- ending 3rd quarter 2023. Completions over the past year expanded the local inventory base 1.3%. Dayton currently has 57,218 apartment doors. Occupancy in the Dayton apartment market has ranged from 95.4% to 98.0% over the past five years, averaging 96.6% during that period. Over the past year, occupancy lost 1.1 points, with the 3rd quarter 2023 rate landing at 95.5%. That occupancy rate ranked #15 among the 29 key Midwest region markets and #50 among the top 150 markets nationally. Looking at product classes in Dayton, 3rd quarter 2023 occupancy registered at 94.4% in Class A units, 96.1% in Class B units and 95.8% in Class C units. Over the past five years, annual change in effective asking rents in Dayton ranged from 2.2% to 10.3%. In 3rd quarter 2023, same-store effective asking rents for new leases were up 3.6% year-over-year.

That annual rent performance was below the market’s five-year average of 5.3%. Dayton’s recent annual rent change performance ranked #9 in the Midwest region and #29 nationally. Looking at product classes in Dayton, Class A led for rent performance over the past five years. In 3rd quarter 2023, annual effective rent change registered at 2.3% in Class A units, 4.1% in Class B units and 4.4% in Class C units. As of 3rd quarter 2023, effective asking rental rates in Dayton averaged $1,115 per month, or $1.221 per square foot

DISTANCE BUSINESS KROGER

DISTANCE 5 MINS

WRIGHT STATE

8 MINS

WRIGHT PAT

23 MINS

FAIRBORN HIGH SCHOOL

3 MINS

UPS

5 MINS

DUNKIN DONUTS

2 MINS

SAMS CLUB

10 MINS

MALL AT FAIRFIELD COMMONS

9 MINS

BEAVERCREEK GOLF CLUB

3 MINS

PLANET FITNESS

4 MINS

MENARDS

6 MINS

DOWNTOWN DAYTON

20 MINS

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EMPLOYMENT WRIGHT STATE 28,000 JOBS WRIGHT STATE STUDENTS 11,000+

5 POINT D E V E LO P M E N T O P P O RT U N I T Y

WRIGHT PAT EMPLOYMENT 29,000+ MALL AT FARFIELD COMMONS YEARLY VISITORS

4.9M

MULTIFAMILY OVERVIEW OF THE 5 POINT DEVELOPMENT BIG BOX INTO SELF STORAGE

POTENTIAL APARTMENTS

POTENTIAL STRIP CENTER POTENTIAL COMMERICAL

CURRENT DONATOS PIZZA POTENTIAL CLUBHOUSE

CURRENT CVS

MULTIFAMILY SITE

DETAILS: 6.89 AC 140 UNITS PROPOSED APPROVED PUD EXISTING CLUBHOUSE UTILITIES ON AND AT THE SITE FULL AMENITY PACKAGE

POTENTIAL CLUBHOUSE

POTENTIAL APARTMENTS

EX TR AN CE /E XI T

NEIGBORING PARCELS

BIG BOX TO SELF STORAGE XIT CE/E N A R EXT

*NEIGHBORING PARCELS, PROJECTS AND BUSINESS NOT INCLUDED IN THE SALE OF THE MULTIFAMILY PARCEL*

POTENTIAL STRIP CENTER

C RAN EXT

POTENTIAL COMMERICAL

CURRENT CVS

T EXI CE/

CURRENT DONATOS PIZZA

SITE PHOTOS

1 | BIG BOX TURNED INTO SELF STORAGE 2 | POTENTIAL STRIP CENTER, COMMERICIAL, CVS AND DONATOS PIZZA 3 | BIG BOX 4 | FUTURE CLUBHOUSE

1

CURRENT CVS POTENTIAL COMMERICAL POTENTIAL STRIP CENTER

CURRENT DONATOS PIZZA

2 CURRENT BIG BOX TURNED INTO SELF STORAGE

POTENTIAL CLUBHOUSE | INCLUDED WITH MULTIFAMILY PARCELS

FUTURE CLUBHOUSE FOR MULTIFAMILY

3

4

FUTURE 220+ CLASS “A” SELF STORAGE THAT IS CURRENTLY BEING BUILT.

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THIS SITE IS BEING DEVELOPED BY THE SELLERS OF THE MULTIFAMILY PARCEL

23

02 24

P OT E N T I A L INTERIOR FINISHES

25

POTENTIAL AMENITY FINISHES

26

5 POINT

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POTENTIAL UNIT FINISHES

28

5 POINT

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R E N TA L C O M P A R A B L E UNIT FINISHES

LO F T S AT W I L LO W C R E E K

P R O M E NA D E AT B E A

V I L L AG E AT C LO U D PA R K

30

AV E R C R E E K

5 POINT

WAT E R S T R E E T F L AT S

R E D W O O D FA I R B O R N

31

03 32

SALES COMPS

5 POINT

M A N H AT TA N O N THE RIVER UNITS

BUILT

SOLD

PRICE

PRICE PER UNIT

263

2019

2021

$69.5M

$264,259

1065 MANHATTAN ON THE RIVER, DAYTON, KY

34

35

L I B E RT Y C E N T E R A PA R T M E N T S UNITS

BUILT

SOLD

PRICE

PRICE PER UNIT

238

2016

2021

$45.8M

$192,437

7560 BLAKE STREET, LIBERTY TOWNSHIP, OH

36

37

W AT E R F O R D AT SUGARCREEK UNITS

BUILT

SOLD

PRICE

PRICE PER UNIT

231

2018

2021

$41.7M

$180,519

4135 BROOKDALE LANE, DAYTON, OH

38

39

THE PROVIDENT UNITS

BUILT

SOLD

PRICE

PRICE PER UNIT

160

2020

2021

$34M

$212,688

630 VINE ST, CINCINNATI, OH

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41

04 42

LOCAL COMPS

5 POINT

L O C A L R E N TA L CO M P E T I TO R S S U M M A RY

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WATER STREET FLATS

REDWOOD FAIRBORN

PROMENADE AT BEAVERCREEK

LOFTS AT WILLOW CREEK

Located adjacent to the water, just minutes from Riverscape, and across the street from the baseball location - their location can’t be beat! This gorgeous community offers a swimming pool with a sundeck, two courtyards with grilling stations and fire pits. Watch a movie or the football game on the big screen in the theater room or host a party in the expansive club room.

Redwood Fairborn is where you’ll find the single-story apartment you’ve been looking for. Live in a two-bedroom, two-bathroom, pet-friendly home with an attached garage.

Enjoy being surrounded by charming greenery, located minutes from the freeway and just a stones throw away from all the amenities of the Fairborn community.

Only minutes from shopping and downtown Dayton life, The Promenade is blossoming with character. Enjoy luxury living in an inviting, beautifully landscaped community that is Rooted in Tradition. Unwind in a stunning maintenance free apartment home with finishes of a custom home, including; maple finished cabinetry, track lighting, plush carpeting, chef caliber kitchens, nine foot & vaulted ceilings and enormous walk-in closets. Offering a choice of one and two bedroom apartments featuring dens & lofts.

From thoughtfully curated interiors complete with designer finishes to captivating amenity spaces, everything on your wish list is covered when you live at The Lofts at Willow Creek. Located in beautiful Beavercreek, the most desirable suburb of Dayton, their community is just minutes from Wright-Patterson Air Force Base, Fairfield Commons Mall, The Greene Town Center, and Wright State University, and offers convenient access to Interstates 675, 75, and 70. Stop looking and start living.

5 POINT

L O C AT I O N LOCAL COMPETITORS

5 POINT 104 UNITS

Understanding real estate comparables and the state of the market in your local area is essential. It can help you make an informed decision about buying or selling a property.

LOFTS AT WILLOW CREEK 325 UNITS WATER STREET 269 UNITS

REDWOOD FAIRBORN 170 UNITS

PROMENADE AT BEAVERCREEK 238 UNITS

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R E N T S O RT One Bedroom Property Water Street Flats Subject Pro Forma Promenade at Beavercreek Market Average The Lofts at Willow Creek The Province Dayton

Year Built 2015 2024 2007 2013 2012 2009

# Units 269 140 238 210 325 111

Avg SF 827 756 872 765 774 594

Avg Rent $1,570 $1,550 $1,475 $1,407 $1,308 $1,130

Avg Rent/SF $1.90 $2.05 $1.69 $1.57 $1.69 $1.90

Two Bedroom Property Redwood Fairborn Water Street Flats Subject Pro Forma The Lofts at Willow Creek Promenade at Beavercreek Market Average Brinley Place Windsor Place The Province Dayton

Year Built 2020 2015 2024 2012 2007 2008 2013 1965 2009

# Units 170 269 140 325 238 178 132 72 111

Avg SF 1368 1040 900 1223 1050 1069 1225 851 891

Avg Rent $1,962 $1,769 $1,750 $1,655 $1,635 $1,598 $1,505 $1,299 $1,205

Avg Rent/SF $1.43 $1.70 $1.94 $1.35 $1.56 $1.49 $1.23 $1.53 $1.35

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UNIT MIX STUDY

3 15

5 POINT

A N A LY S I S O F LO C A L M A R K E T : MILE RADIUS OF D O W N TO W N FA I R B O R N P R O P E RT I E S RESEARCHED

AV E R A G E U N I T S I Z E

209 1985

AV G N U M B E R OF UNITS AV E R A G E Y E A R B U I LT

AV E R A G E U N I T M I X B R E A K D O W N

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A 5 POINT PERSPECTIVE 1 B E D R O O M R E N TA L R AT E C H A N G E YR-OVER-YR | 2021

2 B E D R O O M R E N TA L R AT E C H A N G E YR-OVER-YR | 2021

P R O P E RT Y AG E BY U N I TS

I N V E N TO RY G R OW T H COMPLETIONS AS % PRIOR INVENTORY

UNITS COMPLETION

3 B E D R O O M R E N TA L R AT E C H A N G E YR-OVER-YR | 2021

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LIFESTYLE VS RENTERS-BY-NECESSITY

Q U A RT E R LY Y R - O V E R - Y R R O L L I N G C H A N G E BY U N I T T Y P E

2021 Unit Type One Bedroom Two Bedrooms Three Bedrooms Other Overall

# Units 1,439 2,766 528 253 4,986

SqFt/Unit 622 1,012 1,279 1,270 4,183

Q3 5.5% 4.9% 6.7% 0.4% 4.9%

2022 Q4 7.6% 8.5% 7.9% 6.2% 8.1%

Q1 10.5% 12.0% 10.8% 8.7% 11.7%

Q2 12.9% 11.3% 13.2% 2.9% 10.9%

2023 Q3 9.7% 10.8% 14.7% 6.1% 10.4%

Q4 8.9% 9.1% 7.8% 2.4% 8.1%

Q1 7.4% 60.0% 5.7% -0.8% 5.3%

Q2 6.3% 5.3% 6.8% 3.5% 5.7%

W H E R E FA I R B O R N E X C E L S

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W AT E R S T R E E T F L AT S UNITS YEAR BUILT OCCUPANCY UNIT MIX ONE BEDROOM

UNITS 161

SQFT 827

RENT $1,570

269 2015 N/A RENT/SF $1.90

TWO BEDROOM

93

1040

$1,769

$1.70

THREE BEDROOM

15

1256

$2,225

$1.80

UNIT FEATURES • High Ceilings • In-Unit Washer & Dryer • Intrusion Alarms • Garages with Openers UTILITIES • Resident Paid Electric • Resident Paid Gas • Resident Paid Sewer • Property Paid Trash • Resident Paid Water 2335 Long Vista Lane

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FEATURED AMENITIES • Swimming Pool • Clubhouse • Fitness Center • Theater Lounge

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R E DW O O D FA I R B O R N UNITS YEAR BUILT OCCUPANCY UNIT MIX TWO BEDROOM

UNITS 170

UNIT FEATURES • Washer & Dryer Hookups • Granite Countertops • Stainless Steel Appliances • Patio UTILITIES • Resident Paid Electric • Resident Paid Gas • Resident Paid Sewer • Resident Paid Trash • Resident Paid Water

2250 Warbler Lane

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SQFT 1368

RENT $1,962

170 2020 98.0% RENT/SF $1.43

FEATURED AMENITIES • Pet Wash Station • Green Spaces

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THE PROMENADE AT B E AV E R C R E E K UNITS YEAR BUILT OCCUPANCY UNIT MIX ONE BEDROOM

UNITS 92

SQFT 763

RENT $1,360

238 2007 97.5% RENT/SF $1.78

TWO BEDROOM

146

1102

$1,705

$1.55

UNIT FEATURES • Washer & Dryer Hookups • High Ceilings UTILITIES • Resident Paid Electric • Resident Paid Sewer • Resident Paid Trash • Resident Paid Water

4026 Promenade Blvd

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FEATURED AMENITIES • Clubhouse • Swimming Pool • Fitness Center • Business Center

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T H E L O F T S AT WILLOW CREEK UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom

UNITS 23

SQFT 880

RENT $1,550

325 2012 100.0% RENT/SF $1.76

Two Bedroom

47

1200

$1,800

$1.50

Three Bedroom

62

1400

$2,100

$1.50

UNIT FEATURES • Granite Countertops • Walk-In Closets • High Ceilings • In-Unit Washer & Dryer UTILITIES • Resident Paid Electric • Resident Paid Sewer • Resident Paid Trash • Property Paid Water

2621 Hibiscus Way

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FEATURED AMENITIES • Swimming Pool • Fitness Center • Dog Park • Movie Theatre • Community Bike Storage

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C O M P E T I T O R S A M E N I T I E S TA B L E Windsor Place Bike Rack

x

The Province

x

Billards Lounge Business Center Clubhouse Dog Park Fire Pits Fitness Center Grilling Area Pet Wash Station Pool

x x x x x x

Private Garages Private Storage Recreation Room Sand Volleyball Secured Package Pick-Up Theater Room Valet Dry Cleaning WiFi Throughout 58

x x x x

The Lofts at Willow Creek

x x x x x x x x x x x x x x

T

5 POINT

The Promenade at Beavercreek

x x x x x x

x

Redwood Fairborn

x

Water Street Apartments

Brinley Place

x

x x x

x

x

x

x 59

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5 POINT

05

ECONOMIC DRIVERS

FA I R B O R N Located 10-miles northeast of Dayton, the City of Fairborn, established in 1950, is a family oriented, business friendly and innovative community anchored around Wright Patterson Air Force Base, Wright State University, and a cluster of innovative companies.

Fairborn, located in the Greater Dayton Region, has a population of 33,346. The city is advantageously situated with four interchanges along I-675. It’s located within 2-miles of I-70 and Ohio State Route 4. The I-70/I-75 interchange is within nine (9) miles, with Cincinnati 1-hr to the south and Columbus 1-hr northwest.

“Fairborn is a place where history and high technology go hand in hand.

Just take a stroll through our quaint downtown streets. Then witness the power of a state-of-the-art military aircraft developed at Wright-Patterson Air Force Base. Fairborn proves that an eclectic blend of Midwest charm and cutting-edge innovation is a recipe for success. As a diverse, full-service community, we have held on to the best traditions of our past while focusing on the future”

Fairborn is well positioned to be a leading destination for cutting edge and emerging industries.

A well-planned and activated economic development strategy will allow leading edge anchor institutions and companies to cluster and connect with start-ups, business incubators and accelerators... where good ideas become viable enterprises that contribute to society through their innovation, products and job creation. The high concentration of existing research and innovation entities, spurred by catalyst Wright Patterson Air Force Base and Wright State University, provides a “game changing opportunity” for the City of Fairborn.

The creation of an “innovation district” will allow for sustainable economic prosperity.

Historically, innovation corridors in the U.S. have been anchored by higher education campuses like the Research Triangle in North Carolina or developed organically such as Silicon Valley. The current trend is a more urban planned model, labeled “Innovation Districts”, and defined by the Brookings Institute as “geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators and accelerators. They are also physically compact, transit-accessible, and technically-wired and offer mixed-use housing, office, and retail.” See [Sec. 8.5] for additional information regarding Downtown Fairborn.

Public private partnerships are the key to growing the city’s human and economic capacity.

Innovation districts tend to be public private partnerships with corporations, municipalities and education as key partners. Public private partnerships have emerged as the catalyst for “innovation districts” by creating structures that allow the skills and resources of the public and private sectors to be leveraged in order to deliver projects that promote the growth of a city’s human and economic capacity. To fully understand and advanced a city and region, you must actively engage key community stakeholders and experts. See [Sec. 9.1] for more analysis on public private partnerships.

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FA I R B O R N C O M P E T I T I V E A D V A N TA G E 1.

Proximity to Wright-Patterson Air Force Base, and future growth in Areas A and B.

2. Proximity to Wright State University and the growth of education around key centers of excellence.

3. An abundance of buildable land with easy access to transportation infrastructure.

4. Development potential due to a variety of transportation options including an active rail corridor, key interstate highways 1-675/1-70, and proximity to air access.

5. A new, more aggressive internal approach to economic development.

6.

Improving residential development throughout the city with increasing price points.

7. Aggressive redevelopment and infrastructure efforts within strategic corridors of the community designed to provide a catalyst to new development.

E D U C AT I O N : 90.5% High School Graduates 29.8% Bachelors Degree 12.1% Post-Grad

HOUSING: 16,200 Total Units $123,700 Median Value Owner Occupied Housing Units 8% Housing Units Vacancy

INCOME: $48,825 Median HH Income 18.3% Persons in Poverty 77.8% Cost of living Index

GROWING TECH HUB Fairborn is well positioned to be a leading destination for cutting edge and emerging industries.

A well-planned and activated economic development strategy will allow leading edge anchor institutions and companies to cluster and connect with startups, business incubators and accelerators... where good ideas become viable enterprises that contribute to society through their innovation, products and job creation. The high concentration of existing research and innovation entities, spurred by catalyst Wright Patterson Air Force Base and Wright State University, provides a “game changing opportunity” for the City of Fairborn.

The creation of an “innovation district” will allow for sustainable economic prosperity.

Historically, innovation corridors in the U.S. have been anchored by higher education campuses like the Research Triangle in North Carolina or developed organically such as Silicon Valley. The current trend is a more urban planned model, labeled “Innovation Districts”, and defined by the Brookings Institute as “geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators and accelerators. They are also physically compact, transit-accessible, and technically-wired and offer mixed-use housing, office, and retail.” See [Sec. 8.5] for additional information regarding Downtown Fairborn.

Public private partnerships are the key to growing the city’s human and economic capacity.

Innovation districts tend to be public private partnerships with corporations, municipalities and education as key partners. Public private partnerships have emerged as the catalyst for “innovation districts” by creating structures that allow the skills and resources of the public and private sectors to be leveraged in order to deliver projects that promote the growth of a city’s human and economic capacity. To fully understand and advanced a city and region, you must actively engage key community stakeholders and experts. See [Sec. 9.1] for more analysis on public private partnerships.

A I R F O RC E I N S T I T U T E O F T E C H N O LO G Y The AFIT is the Department of the Air Force’s graduate school for higher, multi-disciplinary academic education and technical professional education.

The AFIT, with its main campus at WPAFB, educates military and civilian defense professionals through the following schools: •

Civil Engineering School

•

Graduate School of Engineering and Management

•

School of Systems and Logistics

•

School of Strategic Force Studies

The AFIT’s “Cyber Technical Center of Excellence” is a world leader in cybersecurity education, research and consulting.

AFIT has historically been a leader in cybersecurity education, having been designated the Air Force’s Cyber Technical Center of Excellence in 2008. Forbes reported that “the global cybersecurity talent shortage reached an estimated 3.5 million workers in 2021, and the shortage of skilled practitioners presents an extraordinary risk for critical infrastructure organizations,” thus presenting an opportunity for the city to attract cybersecurity related businesses.

66

H E A LT H C A R E & H U M A N P E R F O R M A N C E Fairborn’s quality of life is sustained by a cluster of excellent medical services.

Fairborn should leverage its proximity to “best-in-class” medical and education facilities such as Wright-Patterson Medical Center, Air Force School of the Boonshoft School of Medicine and the nearby Soin Medical Center: •

Coordination of local resources to strengthen Fairborn’s medical cluster near WPAFB Medical Center

•

Source and grow nearby medical providers, services and facilities

•

Attract synergistic industries that support healthcare cluster

•

Encourage collaboration between public and private healthcare partners to effectively leverage resources and assets

•

Attract and draw amenities, services, and medical providers in support of the Healthcare Industry throughout the city

•

Encourage collaborations with medical facilities and local education institutions

•

Continued partnerships between WPAFB, Boonshoft School of Medicine and the local health care industry.

W R I G H T - P AT T E R S O N M E D I C A L C E N T E R Wright-Patterson Medical Center is the

2nd Largest Military Treatment

second largest military treatment facility

Facility In The Air Force

in the U.S. Air Force. The medical center

58,000+ Eligible beneficiaries

is a major military and civilian united platform with numerous prescribed programs

provided providing primary and specialty care

in cutting-edge specialty training of phy-

7th Largest Dental treatment

sicians, nurses and technicians.

Facility in the Air Force

67

ECONOMIC DRIVERS

W R I G H T P AT T E R S O N A I R F O R C E B A S E $15.54B $2.52B 29,423 50,784

E C O N O M I C I M PA C T

New National Air and Space Intelligence Center COST: $182 million

PAY R O L L DIRECT EMPLOYMENT

David Bek, National Air and Space Intelligence Center Facilities and Logistics division chief, showcases the layout of the new Intelligence Production Center III to Dayton Mayor Jeffrey Mims Jr. during his visit to Wright-Pat-

INDIRECT EMPLOYMENT

terson Air Force Base, Ohio, May 9, 2023. Expected to be completed in 2024, IPC III will add 980 workstations,

440

NEW JOBS FROM F-35 PROGRAM

$182M

N AT I O N A L A I R & S PA C E C E N T E R

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mission-specific functions, and advanced visualization capabilities to the NASIC campus. (U.S. Air Force photo

by Senior Airman Kristof J. Rixmann)

WPAFB is Ohio’s largest single site employer and the largest military base operated by the Air Force in the U.S. WPAFB serves as a driver for high paying jobs and other high-tech companies throughout Southwest Ohio having generated in excess of 80,000 jobs and an economic impact of $15+ billion.

Air Force Institute of Technology (AFIT): The AFIT is the Department of the Air Force’s graduate school for higher, multidisciplinary academic education and technical professional education.

Air Force Research Lab: 11,500 Military, civilian and contractor employees

National Air and Space Intelligence Center: employs more than 4,100 military, civilian, Reserve, Guard and contract personnel globally. NASIC is the principal provider of foreign air and space threat analysis for the Department of Defense.

Healthcare & Human Performance Cluster: •

2nd largest military treatment facility in the air force

•

4000 grads annually

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ECONOMIC DRIVERS

SYNERGY BUILDING SYSTEMS Synergy Building Systems held a ceremonial groundbreaking for its new $19 million Beavercreek office building off of Colonel Glenn Highway near Meijer.

Modern Technology Solutions will fill the first two floors, and LinQuest Corporation will fill the third floor of the new building. In all, the new building will have approximately 63,000 square feet of space.

Synergy is also planning to construct additional buildings in this area. Barnett said they are clearing more ground nearby for what they are calling Project Rainier, named after Mount Rainier.

“Project Rainier will break ground in the fall and result in another $22 million invested in this same Wright-Patt defense corridor,” Barnett said. In addition to Project Rainier, Barnett said Synergy is working on several other sites in the area with the hopes of building another one million square feet to this area, investing approximately $250 million.

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D AY T O N R E G I O N LOGISTIC & DISTRIBUTION PROPOSED CONDOS

AFFORDABLE HOUSING

Central location allows 60% of US consumers to be reached in one day.

5 international airports — Cincinnati, Dayton, Columbus, Louisville and Indianapolis — within 90 minutes.

730+ businesses in the region focus on logistics.

20,000+ logistics jobs in region.

A developer wants to build 55 condominiums on more than 10 acres on vacant Fairborn land near the Beavercreek Golf Club.

Preliminary plans to construct six buildings at 2316 New Germany Trebein Road and a zoning change were approved by Fairborn City Council Monday night.

The city’s median home value of $123,700 is lower than the State of Ohio’s $145,700 and the U.S. average of $217,500, demonstrating that the city has not experienced the rapid rising prices in other markets.

The ability to purchase an affordable first home is a compelling factor when attracting emerging industries that are largely made up of Millennials and Gen Z, especially given that Millennials make up approximately 35% of the total U.S. workforce, comprising the nation’s largest working generation.

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ECONOMIC DRIVERS

W R I G H T S TAT E U N I V E R S I T Y

$474,871 has been set aside to buy new workforce-based training equipment to help workforce development and student-centric research in advanced automation, manufacturing, and healthcare. An addition $19,920 was given to the university to fund a project to rehabilitate wells and remove the current water treatment equipment.

Wright State University adds $2.3 billion annually to the region’s economy and supports nearly 28,000 jobs through its operational and research expenditures, a new economic impact study found.

Wright State University employed 2,075 full-time and part-time individuals to support its daily operations in fiscal year 2021–22, 90% of whom lived in Raider Country. Total payroll was $168.9 million, much of which was spent locally for groceries, mortgages or rent, dining out and other household expenses. In addition, the university spent $77.4 million on its dayto-day expenses for facilities, supplies and professional services.

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In addition, Wright State spent $10.4 million on payroll to support research activities, creating a net total of $21.7 million in added income for the regional economy, which was the equivalent of supporting 246 jobs.

During FY 2021–22, Wright State served 13,461 students, offering tuition at one of the lowest rates in Ohio. Wright State University received a $174,943 federal grant for science, technology, engineering, and mathematics research to find ways to build more efficient cyber-attack detection models using machine learning.

New lab space supported by a $29.75 million Air Force Contract in the basement of Wright State University’s Russ Engineering Center. Wright State University is a key participant in two of eight grants awarded to Ohio colleges and universities by the Intel Corporation, which is building two chip factories near Columbus.

A $3.6 million gift from the Reynolds and Reynolds Company and its foundation will launch an Entrepreneurship Bootcamp for Veterans at Wright State University and create new scholarships for business students.

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INTEL PROJECT COLUMBUS REGION Intel said the name pays homage to Ohio’s “long and storied histor y in manufacturing and its track record of producing firsts, from the Wright brothers, who grew up in Ohio and first envisioned their historic planes here, to John Glenn, the first man ever in orbit, and Neil Armstrong, the first man on the moon.”

“And now, Ohioans can add another first to the great state’s list –— ‘Ohio One’ — Intel’s first advanced semiconductor campus in the Midwest,” Intel Ohio General Manager Jim Evers said in a letter posted the Intel website. “Ohio One represents a nod to the past and a look to the future of technolog y innovation for the Midwest and America.”

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$20 BILLION COST 1,000 ACRES SIZE 3,000 EMPLOYMENT $135,000 AVG SALARY

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06 76

THE FINANCIALS

5 POINT

5 POINT

UNIT MIX SUMMARY AV E R A G E E F F E CT I V E UNIT TYPE

NO. OF UNITS

R E N TA B L E S F

T OTA L S F

RENT/UNIT

92 Units 48 Units 140 Units

900 SF 1,180 SF 996 SF

82,800 SF 56,640 SF 139,440 SF

$1,700.00 $1,900.00 $1,768.57

MARKET

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT/UNIT

$1.89 $1.61 $1.78 SF

$156,400 $91,200 $247,600

$1,700.00 $1,900.00 $1,768.57

P R O J E CT E D

RENT/SF

TO TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TO TA L R E N T POTENTIAL

$1.89 SF $1.61 SF $1.78 SF

$156,400 $91,200 $247,600

$1,750.00 $1,950.00 $1,818.57

$1.94 SF $1.65 SF $1.83 SF

$161,000 $93,600 $254,600

SUMMARY

Two Bedroom Three Bedroom Totals / Wtd. Averages

UNIT DISTRIBUTION

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UNIT RENTS

5 POINT

UNIT MIX SUMMARY AV E R A G E E F F E CT I V E NO. OF UNITS

R E N TA B L E S F

T OTA L S F

RENT/UNIT

TWO BEDROOM 2BR/1BA Totals / Wtd. Averages

92 Units 92 Units

900 SF 900 SF

82,800 SF 82,800 SF

THREE BEDROOM 3BR/1BA Totals / Wtd. Averages

48 Units 48 Units

1,180 SF 1,180 SF

56,640 SF 56,640 SF

UNIT TYPE

MARKET

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT/UNIT

$1,700.00 $1,700.00

$1.89 SF $1.89 SF

$156,400 $156,400

$1,900.00 $1,900.00

$1.61 SF $1.61 SF

$91,200 $91,200

P R O J E CT E D

RENT/SF

TO TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TO TA L R E N T POTENTIAL

$1,700.00 $1,700.00

$1.89 SF $1.89 SF

$156,400 $156,400

$1,750.00 $1,750.00

$1.94 SF $1.94 SF

$161,000 $161,000

$1,900.00 $1,900.00

$1.61 SF $1.61 SF

$91,200 $91,200

$1,950.00 $1,950.00

$1.65 SF $1.65 SF

$93,600 $93,600

79

INCOME EXPENSE

5 POINT

INCOME & EXPENSES 80

50% OCCUPIED GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Other Income Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2023 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

YEAR 1 - 75% OCCUPIED

% of GPR Per Unit 21,223 0.00% 0 21,223

$2,971,200 $0 $2,971,200 $26,000 $26,000 $2,997,200 ($1,485,600) $0 ($14,856) $1,496,744

1.00%

21,823 (218) 21,605

50.00% 0.00% 0.50% 49.50%

186 186 21,409 (10,611) 0 (106) 10,691

$23,611 Auditor $0 $23,611 $56,000 Note 2

% of EGI 1.58% 0.00% 1.58% 3.74%

Per Unit 169 0 169 400

$23,611 $0 $23,611 $56,000

% of EGI 1.04% 0.00% 1.04% 2.46%

$6,240 Note 2 $7,800 Note 2 $14,040 $93,651

0.42% 0.52% 0.94% 6.26%

45 56 100 669

$6,365 $7,956 $14,321 $93,932

0.28% 0.35% 0.63% 4.12%

45 57 102 671

0.33% 0.70% 0.33% 1.36% 0.00% 0.94% 4.68% 0.94% 0.94% 4.00% 2.39% 15.22% 21.48% 78.52%

35 75 35 145 0 100 500 100 100 428 255 1,628 2,297 8,394

$4,900 $10,500 $4,900 $20,300 $84,000 $14,000 $140,000 $14,000 $14,000 $91,206 $36,414 $413,920 $507,852 $1,772,291

0.21% 0.46% 0.21% 0.89% 3.68% 0.61% 6.14% 0.61% 0.61% 4.00% 1.60% 18.15% 22.27% 77.73%

35 75 35 145 600 100 1,000 100 100 651 260 2,957 3,628 12,659

$4,900 $10,500 $4,900 $20,300 $0 $14,000 $70,000 $14,000 $14,000 $59,870 $35,700 $227,870 $321,521 $1,175,223

0.89% 0.89%

$3,055,200 ($30,552) $3,024,648

% of GPR Per Unit

Note 2 Note 2 Note 2 Note 4 Note 2 Note 5 Note 2 Note 2 Note 2 Note 1

$26,780 $26,780 $3,051,428 ($756,162) $0 ($15,123) $2,280,143

0.89% 0.89% 25.00% 0.00% 0.50% 73.50%

191 191 21,796 (5,401) 0 (108) 16,287 Per Unit 169 0 169 400

YEAR 2 - FULL STABILIZATION $3,146,856 ($62,937) $3,083,919

% of GPR 2.00% 0.89% 0.89%

UNDERWRITING NOTES

YEAR 3 Per Unit

% of GPR

Per Unit

22,478 (450) 22,028

$3,241,262 ($64,825) $3,176,436 $28,411 $28,411 $3,204,847 ($158,822) ($15,882) $0 $3,030,143

5.00% 0.50% 0.00% 92.50%

203 203 22,892 (1,134) (113) 0 21,644 Per Unit 169 1,188 1,356 416

2.00% 0.89% 0.89%

23,152 (463) 22,689

$27,583 $27,583 $3,111,502 ($154,196) ($15,420) ($15,420) $2,926,467

5.00% 0.50% 0.50% 92.00%

197 197 22,225 (1,101) (110) (110) 20,903

$23,611 $0 $23,611 $57,120

% of EGI 0.81% 0.00% 0.81% 1.95%

Per Unit 169 0 169 408

$23,611 $166,250 $189,862 $58,262

% of EGI 0.81% 5.68% 6.49% 1.99%

$6,492 $8,115 $14,607 $95,339

0.22% 0.28% 0.50% 3.26%

46 58 104 681

$6,622 $8,277 $14,899 $263,023

0.23% 0.28% 0.51% 8.99%

47 59 106 1,879

$4,998 $10,710 $4,998 $20,706 $85,680 $14,280 $142,800 $14,280 $14,280 $117,059 $37,142 $446,227 $541,566 $2,384,902

0.17% 0.37% 0.17% 0.71% 2.93% 0.49% 4.88% 0.49% 0.49% 4.00% 1.27% 15.25% 18.51% 81.49%

36 77 36 148 612 102 1,020 102 102 836 265 3,187 3,868 17,035

$5,098 $10,924 $5,098 $21,120 $87,394 $14,566 $145,656 $14,566 $14,566 $121,206 $37,885 $456,957 $719,981 $2,310,163

0.17% 0.37% 0.17% 0.72% 2.99% 0.50% 4.98% 0.50% 0.50% 4.00% 1.29% 15.47% 24.60% 78.94%

36 78 36 151 624 104 1,040 104 104 836 271 3,234 5,143 16,501

#

NOTE

1

Replacement & Reserves: added based on market norm of $255 per unit per year

2

Added based on the market norms

3

Potential tax reassessment upon completion of project

4

Repairs & Maint: Removed due to being under construction

5

Payroll: Adjusted to reflect 50% occupancy during lease-up while under construction

81

INCOME EXPENSE

5 POINT

CASH FLOW 82

50% OCCUPIED

YEAR 1 - 75% OCCUPIED

YEAR 2 - FULL STABILIZATION

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

YE DEC-2024

YE DEC-2025

YE DEC-2026

YE DEC-2027

YE DEC-2028

YE DEC-2029

YE DEC-2030

YE DEC-2031

YE DEC-2032

YE DEC-2033

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Total Other Income

$2,971,200 $0 $2,971,200 $26,000

$3,055,200 ($30,552) $3,024,648 $26,780

$3,146,856 ($62,937) $3,083,919 $27,583

$3,241,262 ($64,825) $3,176,436 $28,411

$3,338,500 ($66,770) $3,271,730 $28,979

$3,438,655 ($68,773) $3,369,881 $29,559

$3,541,814 ($70,836) $3,470,978 $30,150

$3,648,069 ($72,961) $3,575,107 $30,753

$3,757,511 ($75,150) $3,682,360 $31,368

$3,870,236 ($77,405) $3,792,831 $31,995

$3,986,343 ($79,727) $3,906,616 $32,635

GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME

$2,997,200 ($1,485,600) $0 ($14,856) $1,496,744

$3,051,428 ($756,162) $0 ($15,123) $2,280,143

$3,111,502 ($154,196) ($15,420) ($15,420) $2,926,467

$3,204,847 ($158,822) ($15,882) $0 $3,030,143

$3,300,709 ($163,586) ($16,359) $0 $3,120,764

$3,399,440 ($168,494) ($16,849) $0 $3,214,097

$3,501,128 ($173,549) ($17,355) $0 $3,310,224

$3,605,860 ($178,755) ($17,876) $0 $3,409,229

$3,713,728 ($184,118) ($18,412) $0 $3,511,199

$3,824,827 ($189,642) ($18,964) $0 $3,616,221

$3,939,251 ($195,331) ($19,533) $0 $3,724,387

Real Estate Taxes Insurance Utilities Contract Services Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Replacement & Reserves TOTAL EXPENSES

$23,611 $56,000 $14,040 $20,300 $0 $14,000 $70,000 $14,000 $14,000 $59,870 $35,700 $321,521

$23,611 $56,000 $14,321 $20,300 $84,000 $14,000 $140,000 $14,000 $14,000 $91,206 $36,414 $507,852

$23,611 $57,120 $14,607 $20,706 $85,680 $14,280 $142,800 $14,280 $14,280 $117,059 $37,142 $541,566

$189,862 $58,262 $14,899 $21,120 $87,394 $14,566 $145,656 $14,566 $14,566 $121,206 $37,885 $719,981

$193,659 $59,428 $15,197 $21,543 $89,141 $14,857 $148,569 $14,857 $14,857 $124,831 $38,643 $735,581

$197,532 $60,616 $15,501 $21,973 $90,924 $15,154 $151,541 $15,154 $15,154 $128,564 $39,416 $751,529

$201,483 $61,829 $15,811 $22,413 $92,743 $15,457 $154,571 $15,457 $15,457 $132,409 $40,204 $767,834

$205,512 $63,065 $16,128 $22,861 $94,598 $15,766 $157,663 $15,766 $15,766 $136,369 $41,008 $784,502

$209,622 $64,326 $16,450 $23,318 $96,490 $16,082 $160,816 $16,082 $16,082 $140,448 $41,828 $801,544

$213,815 $65,613 $16,779 $23,785 $98,419 $16,403 $164,032 $16,403 $16,403 $144,649 $42,665 $818,967

$218,091 $66,925 $17,115 $24,260 $100,388 $16,731 $167,313 $16,731 $16,731 $148,975 $43,518 $836,780

NET OPERATING INCOME

$1,175,223

$1,772,291

$2,384,902

$2,310,163

$2,385,183

$2,462,567

$2,542,390

$2,624,727

$2,709,655

$2,797,254

$2,887,608

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

2.83% 1.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

Income Gross Potential Rent (Loss) / Gain to Lease* Other Income Expenses Expenses Management Fee**

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance Total Economic Loss

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

25.00% 0.00% 0.00% 0.50% 25.50%

5.00% 0.00% 0.50% 0.50% 6.00%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

5.00% 0.00% 0.50% 0.00% 5.50%

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

83

Jordan Dickman

Nick Andrews

Austin Sum

First Vice President Investments Cincinnati Office D. 513.878.7735 jordan.dickman@marcusmillichap.com

First Vice President Investments Cincinnati Office D. 513.878.7741 nicholas.andrews@marcusmillichap.com

Senior Associate Cincinnati Office D. 513.878.7747 austin.sum@marcusmillichap.com

84