Beechmont Portfolio OM by Jordan.Dickman

BEECHMONT PORTFOLIO

SUBMITTED BY: LEAD AGENTS

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

Nicholas 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

NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONTENTS

B R O K E R C A PA B I L I T I E S

06 | THE INVESTMENT

18 | LOCAL COMP E TITORS

34 | FIN AN C I ALS

42 | LOCAL M ARKE T

O P I N I O N O F V A L U E

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

First Vice President Investments Director, NMHG

Jordan Dickman

First Vice President Investments Director, NMHG

INVESTMENT ADVISORS

Austin Sum

JD Schmerge

Brian Johnston

Tim VanWingerden

Senior Investment Associate

Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler

Senior Director of Organization MMCC

VALUATION & RESEARCH

Sam Petrosino

Financial & Research Analyst

CLIENT RELATIONS

MARKETING

Alex Papa

Marketing Coordinator

Kristin Smith Marketing

Skyler Wilson

Client Relations Manager

OPERATIONS

Sidney Bills

Office Administrator

Josh Caruana

Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City

Brittany Campbell-Koch Director of Operations

John Sebree

Senior Vice President National Director National Multi Housing Group

Liz Popp

Midwest Operations Manager

Michael Glass

Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group

S E C T I O N

ADG MULTIFAMILY

THE I

NVESTMENT ADG MULTIFAMILY

INVESTMENT HIGHLIGHTS

BEECHMONT PORTFOLIO VALUE- ADD OPPORTUNITY

HARD TO FIND | HIGH DEMAND ASSET

The TLG Beechmont Portfolio is uniquely positioned on the last

Only two other assets with 100+ units have sold in this Eastern

frontier of the Eastern Growth Corridor, which is the connecting

Growth Corridor of Cincinnati in the last 5 years. Barrier to entry into

piece between Downtown, Oakley, Hyde Park and the highly sought

this market is one of the highest in the city due to its fundamental

after submarket of Anderson. All three pieces of the portfolio have

strengths and limited supply of good opportunities to own in bulk.

the capacity to undergo a strategic renovation plan to catapult it’s rents closer to some of its direct competitors in the surrounding

THE MARKET

submarkets of Mount Washington/Anderson, all of which outpace

Like many Midwest markets, Cincinnati evaded the worst effects

TLG Beechmont Portfolio by $250-$300. Not only does the portfolio

of the pandemic relative to other areas of the country. Spurred by

give an incoming investor a Strategic Renovation Opportunity, but it

healthy job gains and moderate population growth, the Cincinnati

also boasts an easy management opportunity as trailing controlla-

apartment market continues to attract new residents, investors, and

ble expenses are nearly $110k higher than that of local competitors

developers. Apartment demand reached 3,785 units in 2021, one of

when compared on a unit per unit basis. The TLG Beechmont Portfo-

Cincinnati’s better performances in the last 30 years. This strong

lio gives an incoming investor both a management play and a strate-

apartment demand boosted occupancy to its highest recorded level

gic renovation play in one of Cincinnati’s hottest and up-and-coming

at 98.1% in the 4th quarter of 2021. Such strong demand allowed op-

markets.

erators to push rental rates with an all-time high annual rental growth rate of 8.4% in 2021.

PROVEN RENT GROWTH The TLG Beechmont Portfolio is situated in the center of the Eastern Growth Corridor path which has led Mount Washington/Anderson to be one of Cincinnati’s year-over-year top performers. With occupancies north of 96%, rent growth broke 12% in a year-over-year comparison beginning with January of 2021. As the last frontier on the eastern side of Cincinnati, Mount Washington/Anderson is poised to continue its run as one of the top performers in the market. 8

ADG MULTIFAMILY

BEECHMONT PORTFOLIO

99,290

REN TABLE S QUARE FEE T

125

TOTAL UNI T S

799

PROPERTY SUMMARY

AVG S F

#1 Bedrooms

#2 Bedrooms

#3 Bedrooms

% Leased

96%

* *

REFER TO PAGE 41 FOR LOAN ASSUMPTION DETAILS FOR IMMACULATE AND MEARS, RIVERSTONE IS OFFERED FREE AND CLEAR. ADG MULTIFAMILY

BEECHMONT PORTFOLIO

STRATEGIC RENOVATION RENOVATION DETAILS • New Shaker Cabinets • Tile Backsplash • Granite/Quartz Countertop • Stainless Steel Appliance • LVP Flooring • Updated Light Fixtures • Updated Plumbing Fixtures • Updated Vanity with Granite Top • Refinished Shower Surrounds • Stained Exterior Brick • New Landscape Design • Lightened Hallways

BEFORE

AFTER

NEW PLUMING AND LIGHTING FIXTURES

NEW HARDWARE & PAINTED CABINETS

GRANITE COUNTERTOPS

VINYL PLANK FLOORING

MATCHING APPLIANCES

$7,500

$170

ESTIMATED COST (1 BR)

AVG. RENT INCREASE / MO.

$9,500

$210

ESTIMATED COST (2 BR)

AVG. RENT INCREASE / MO.

27%

RETURN ON INVESTMENT

26%

RETURN ON INVESTMENT

IMMACULATE TOWNHOMES

PROPERTY DETAILS Property Name

Immaculate Townhomes

Property Address

1277 Immaculate Ln

City, State

Cincinnati, Ohio

County

Hamilton

Year Built

1961

Property Type (Market Rate, Market LIHTC, Student Housing, etc) Units 16 Sqft

17,600

Avg Effective Rent

$1,153

Avg Market Rent

$1,162

RIVERSTONE

PHOTOS Property Name

Riverstone Court

Property Address City, State

5623; 5653; 5615; 5631; 5500 Beechmont Ave Cincinnati, Ohio

County

Hamilton

Year Built

1952-1972

Property Type (Market Rate, Market LIHTC, Student Housing, etc) Units 87 Sqft

63,320

Avg Effective Rent

$767

Avg Market Rent

$786

MEARS PLACE

PROPERTY DETAILS Property Name

Mears Place

Property Address

1802-1804 Mears Ave

City, State

Cincinnati, Ohio

County

Hamilton

Year Built

1970

Property Type (Market Rate, Market LIHTC, Student Housing, etc) Units 22 Sqft

19,000

Avg Effective Rent

$787

Avg Market Rent

$813

S E C T I O N

LOCAL C

COMPETITORS

LOCAL COMPETITORS

5623 5653 5615 5631 5500

BEECHMONT BEECHMONT BEECHMONT BEECHMONT BEECHMONT

AVE AVE AVE AVE AVE

* 3

1804 ME AR S AVE

* REN T C OMPAR ABLE S 1

STONEGATE APARTMENTS

WHISPERING PINES

SUTTON PLACE APARTMENTS

2500 PLACE APARTMENTS

BEECHMONT TOWERS

VILLAGES OF COLDSTREAM

12 7 7 IMMACUL ATE LN 1

* 6

STONEGATE APARTMENTS UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom

# OF UNITS SQFT 56 760

RENT $945

Two Bedroom

161

1155

$1,200

Three Bedroom

1423

$1,600

Apartment Interior Amenities Washer/Dryer Hookups In All Units Fireplaces Available In Select Units 281 Vaulted Ceilings 1972 Microwave Ovens In All Units 97.9% High Speed Internet Access RENT/SF Common Area Amenities $1.24 Fitness Center $1.04 Business Center $1.14 Clubhouse Tennis Court Playground Swimming Pool Spa Laundry Facilities Covered Parking Is Available Utilities Responsibility Resident Pays Electricity Resident Pays Gas Resident Pays Sewer

WHISPERING PINES Apartment Interior Amenities High Speed Internet Access Common Area Amenities Swimming Pool Six Laundry Facilities Private Balcony/Patio In Select Units

UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS 4

SQFT 525

RENT $733

77 1986 97.4% RENT/SF $1.40

Utilities Responsibility Resident Pays Electricity Property Pays Gas Property Pays Sewer Property Pays Trash Removal Property Pays Water

One Bedroom

650

$935

$1.44

Two Bedroom Three Bedroom

86 16

850 1063

$1,005 $1,350

$1.18 $1.31

2500 PLACE APARTMENTS UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS SQFT 9 450

RENT $690

83 1967 97.6% RENT/SF $1.53

One Bedroom

650

$872

$1.34

Two Bedroom

1000

$1,013

$1.01

Three Bedroom

1200

$1,213

$1.18

Apartment Interior Amenities Vaulted Ceilings Above Standard Ceiling Height High Speed Internet Access Common Area Amenities Fitness Center Swimming Pool Seven Laundry Facilities Private Balcony/Patio Utilities Responsibility Resident Pays Electricity Resident Pays Sewer Property Pays Trash Removal Resident Pays Water

BEECHMONT TOWERS Apartment Interior Amenities Microwave Ovens In All Units High Speed Internet Access Common Area Amenities Controlled Access Playground 10 Laundry Facilities Private Balcony/Patio Utilities Responsibility Resident Pays Electricity Property Pays Sewer Property Pays Trash Removal Property Pays Water

UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom Two Bedroom Three Bedroom

# OF UNITS 26

SQFT 822

RENT $850

56 1983 92.9% RENT/SF $1.03

28 2

925 1100

$975 $1,395

$1.05 $1.04

SUTTON PLACE APARTMENTS UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS SQFT 9 450

RENT $690

83 1967 97.6% RENT/SF $1.53

One Bedroom

650

$900

$1.38

Two Bedroom

1000

$1,200

$1.20

Three Bedroom

1200

$1,600

$1.29

Apartment Interior Amenities Microwave Ovens In All Units High Speed Internet Access Walkin Closets Refrigerator Ceiling Fans Common Area Amenities Pool Fitness Center Laundry Facilities Courtyard Utilities Responsibility Resident Pays Electricity Resident Pays Sewer Property Pays Trash Removal Resident Pays Water

VILLAGES OF COLDSTREAM Apartment Interior Amenities Washer/Dryer Hookups High Speed Internet Access Common Area Amenities Fitness Center Clubhouse Tennis Court Volleyball Court Basketball Court Playground Swimming Pool Utilities Responsibility Resident Pays Electricity Resident Pays Gas Resident Pays Sewer Property Pays Trash Removal Resident Pays Water

UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom Two Bedroom Three Bedroom

# OF UNITS 48

SQFT 684

RENT $1,176

158 1974 98.1% RENT/SF $1.72

72 38

934 1255

$1,421 $1,955

$1.52 $1.62

LOCAL COMPETITORS - ONE BEDROOM

One Bedroom Property Stonegate Apartments Whispering Pines Sutton Place Apartments Riverstone Pro Forma Beechmont Towers Apartments Washington House Apartments Beechmont Bluffs Apartments

Year Built 1972 1968 1967 1952 1983 1964 1976

SF 281 122 83 87 56 47 45

Market Rent 760 650 650 642 822 825 559

Net Rent/SF $945 $939 $900 $893 $850 $850 $750

Avg Rent/SF $1.24 $1.44 $1.38 $1.39 $1.03 $1.03 $1.34

LOCAL COMPETITORS - TWO BEDROOM

Two Bedroom Property

Village of Coldstream Immaculate Pro Forma Stonegate Apartments Sutton Place Apartments 1166 Ashbury Rd Riverstone Pro Forma 2500 Place Apartments Whispering Pines Mears Pro Forma Beechmont Towers Apartments Washington House Apartments

Year Built

# Units

Avg SF

Avg Rent

Avg Rent/SF

1972 1961 1972 1967 1961 1952 1967 1968 1970 1983 1964

158 16 281 83 11 87 52 122 22 56 47

934 1000 1155 1000 1128 900 850 850 850 925 900

$1,333 $1,225 $1,207 $1,200 $1,125 $1,087 $1,013 $1,005 $989 $975 $975

$1.43 $1.23 $1.05 $1.20 $1.00 $1.21 $1.19 $1.18 $1.16 $1.05 $1.08

LOCAL COMPETITORS - THREE BEDROOM

Three Bedroom Property

Village of Coldstream Sutton Place Apartments Stonegate Apartments Immaculate Pro Forma Beechmont Towers Apartments (RS) 1166 Ashbury Rd Whispering Pines Mears Pro Forma 2500 Place Apartments (RS)

Year Built

# Units

Avg SF

Avg Rent

Avg Rent/SF

1972 1967 1972 1961 1983 1961 1968 1970 1967

158 83 281 16 56 11 122 22 52

1255 1200 1423 1400 1100 1775 1063 1000 1120

$1,955 $1,600 $1,417 $1,400 $1,395 $1,350 $1,350 $1,300 $1,216

$1.56 $1.33 $1.00 $1.00 $1.27 $0.76 $1.27 $1.30 $1.09

S E C T I O N

FINA

ANCIALS

BEECHMONT - FINANCIALS

UNIX MIX SUMMARY AV E R A G E E F F E C T I V E

MARKET

P RO J E CT E D

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

RENT/SF

T O TA L R E N T POTENTIAL

SUMMARY One Bedroom Two Bedroom Three Bedroom

56 Units 63 Units 6 Units

642 SF 895 SF 1,267 SF

35,930 SF 56,390 SF 7,600 SF

$724.96 $866.69 $1,225.00

$1.13 $0.97 $0.97

$40,598 $54,602 $7,350

$746.61 $886.19 $1,216.67

$1.16 SF $0.99 SF $0.96 SF

$41,810 $55,830 $7,300

$892.50 $1,073.49 $1,366.67

$1.39 SF $1.20 SF $1.08 SF

$49,980 $67,630 $8,200

Totals / Wtd. Averages

125 Units

799 SF

99,920 SF

$820.39

$1.03 SF

$102,549

$839.52

$1.05 SF

$104,940

$1,006.48

$1.26 SF

$125,810

UNIT TYPE

RENT/UNIT

UNIT DISTRIBUTION

RENT/SF

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

RENT/UNIT

RENT/SF

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

UNIT RENTS

50% 45%

One Bedroom Two Bedroom Three Bedroom

Avg. Effective 36

ADG MULTIFAMILY

Pro Forma Projection

BEECHMONT - FINANCIALS

UNIX MIX BREAKDOWN AV E R A G E E F F E C T I V E

MARKET

P RO J E CT E D

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

RENT/SF

T O TA L R E N T POTENTIAL

ONE BEDROOM 1BR/1BA - Riverstone 1BR/1BA - Riverstone 1BR/1BA - Riverstone

18 Units 18 Units 20 Units

575 SF 660 SF 685 SF

10,350 SF 11,880 SF 13,700 SF

$702.65 $752.50 $720.25

$1.22 SF $1.14 SF $1.05 SF

$12,648 $13,545 $14,405

$720.00 $775.00 $745.00

$1.25 SF $1.17 SF $1.09 SF

$12,960 $13,950 $14,900

$865.00 $895.00 $915.00

$1.50 SF $1.36 SF $1.34 SF

$15,570 $16,110 $18,300

Totals / Wtd. Averages

56 Units

642 SF

35,930 SF

$724.96

$1.13 SF

$40,598

$746.61

$1.16 SF

$41,810

$892.50

$1.39 SF

$49,980

TWO BEDROOM 2BR/1BA - Riverstone 2BR/1BA - Riverstone 2BR/1BA - Immaculate Townhomes 2BR/1BA - Mears Place

23 Units 8 Units 12 Units 20 Units

850 SF 980 SF 1,000 SF 850 SF

19,550 SF 7,840 SF 12,000 SF 17,000 SF

$793.26 $990.71 $1,084.00 $771.15

$0.93 SF $1.01 SF $1.08 SF $0.91 SF

$18,245 $7,926 $13,008 $15,423

$810.00 $1,000.00 $1,100.00 $800.00

$0.95 SF $1.02 SF $1.10 SF $0.94 SF

$18,630 $8,000 $13,200 $16,000

$1,050.00 $1,125.00 $1,225.00 $989.00

$1.24 SF $1.15 SF $1.23 SF $1.16 SF

$24,150 $9,000 $14,700 $19,780

Totals / Wtd. Averages

63 Units

895 SF

56,390 SF

$866.69

$0.97 SF

$54,602

$886.19

$0.99 SF

$55,830

$1,073.49

$1.20 SF

$67,630

THREE BEDROOM 3BR/1BA - Immaculate Townhomes 3BR/1BA - Mears Place

4 Units 2 Units

1,400 SF 1,000 SF

5,600 SF 2,000 SF

$1,362.50 $950.00

$0.97 SF $0.95 SF

$5,450 $1,900

$1,400.00 $950.00

$1.00 SF $0.95 SF

$5,600 $1,900

$1,400.00 $1,300.00

$1.00 SF $1.30 SF

$5,600 $2,600

Totals / Wtd. Averages

6 Units

1,267 SF

7,600 SF

$1,225.00

$0.97 SF

$7,350

$1,250.00

$0.99 SF

$7,500

$1,366.67

$1.08 SF

$8,200

UNIT TYPE

RENT/UNIT

RENT/SF

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

RENT/UNIT

RENT/SF

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

ADG MULTIFAMILY

INCOME EXPENSE

BEECHMONT - FINANCIALS

INCOME & EXPENSES

CURRENT GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT OTHER INCOME Water Reimbursement Pet Fees Waste Disposal Reimbursement Late Rent Fees Laundry Income Utility Read Income Collections Collections- Acceler Rent Application Fees Late Rent Fees Collections Admin Fees Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Gas & Electric

Gas & Electric Vacant Water & Sewage Trash Removal

Meter Reading Fee

Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control

Fire/Safety Services Total Contract Services Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$1,265,860 T3 ($34,612) T3 $1,231,248 $141,010 $16,655 $16,322 $9,600 $9,074 $6,792 $6,664 $5,867 $3,840 $3,200 $2,800 $250 $225,452 $1,456,700 ($93,444) $0 ($800) $1,362,456

YEAR 1

2.73%

10,127 (277) 9,850

$1,509,720 ($90,583) $1,419,137 $145,240 $17,155 $16,811 $9,888 $9,346 $6,996 $6,864 $6,043 $3,955 $3,296 $2,884 $258 $232,215 $1,651,352 ($70,957) ($7,096) ($7,096) $1,566,204

5.00% 0.50% 0.50% 88.00%

1,162 137 134 79 75 56 55 48 32 26 23 12 1,858 13,211 (568) (57) (57) 12,530

6.00%

T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T12

11.45% 1.35% 1.33% 0.78% 0.74% 0.55% 0.54% 0.48% 0.31% 0.26% 0.23% 0.07% 18.31%

7.59% 0.00% 0.06% 89.61%

1,128 133 131 77 73 54 53 47 31 26 22 11 1,804 11,654 (748) 0 (6) 10,900

% of EGI 8.35% 0.00% 8.35% 1.59%

Per Unit 911 0 911 173

$113,813 $0 $113,813 $37,500

% of EGI 7.27% 0.00% 7.27% 2.39%

Per Unit 911 0 911 300

$113,813 Auditor $0 $113,813 $21,641 T12

10.23% 1.21% 1.18% 0.70% 0.66% 0.49% 0.48% 0.43% 0.28% 0.23% 0.20% 0.07% 16.36%

12,078 (725) 11,353

$63,136 $984 $67,767 $11,847 $2,228 $145,962 $281,416

T12 T12 T12 T12 T12

4.63% 0.07% 4.97% 0.87% 0.16% 10.71% 20.66%

505 8 542 95 18 1,168 2,251

$64,399 $1,004 $69,122 $12,084 $2,273 $148,881 $300,194

4.11% 0.06% 4.41% 0.77% 0.15% 9.51% 19.17%

515 8 553 97 18 1,191 2,402

$2,457 $37,256 $4,228 $739 $44,680 $48,617 $10,324 $194,075 $18,753 $34,996 $48,073 $2,375 $31,875 $433,768 $715,184 $647,272

T12 T12 T12 T12

0.18% 2.73% 0.31% 0.05% 3.28% 3.57% 0.76% 14.24% 1.38% 2.57% 3.53% 0.17% 2.34% 31.84% 52.49% 47.51%

20 298 34 6 357 389 83 1,553 150 280 385 19 255 3,470 5,721 5,178

$3,125 $18,750 $4,375 $750 $27,000 $62,500 $9,375 $125,000 $18,750 $12,500 $62,648 $2,500 $32,513 $352,786 $652,980 $913,224

0.20% 1.20% 0.28% 0.05% 1.72% 3.99% 0.60% 7.98% 1.20% 0.80% 4.00% 0.16% 2.08% 22.52% 41.69% 58.31%

25 150 35 6 216 500 75 1,000 150 100 501 20 260 2,822 5,224 7,306

T12 T12 T12 T12 T12 T12 T12 Note 1

YEAR 2

$1,555,012 ($31,100) $1,523,911

YEAR 3

2.00% 9.82% 1.16% 1.14% 0.67% 0.63% 0.47% 0.46% 0.41% 0.27% 0.22% 0.19% 0.07% 15.69%

12,440 (249) 12,191

$1,601,662 ($32,033) $1,569,629 $154,085 $18,199 $17,835 $10,490 $9,916 $7,422 $7,281 $6,411 $4,196 $3,497 $3,060 $273 $246,337 $1,815,966 ($78,481) ($7,848) ($7,848) $1,721,788

5.00% 0.50% 0.50% 92.00%

1,233 146 143 84 79 59 58 51 34 28 24 12 1,971 14,528 (628) (63) (63) 13,774

2.00% 9.82% 1.16% 1.14% 0.67% 0.63% 0.47% 0.46% 0.41% 0.27% 0.22% 0.19% 0.07% 15.69%

12,813 (256) 12,557

$149,597 $17,669 $17,316 $10,185 $9,627 $7,206 $7,069 $6,224 $4,074 $3,395 $2,971 $265 $239,172 $1,763,083 ($76,196) ($7,620) ($7,620) $1,671,648

5.00% 0.50% 0.50% 92.00%

1,197 141 139 81 77 58 57 50 33 27 24 12 1,913 14,105 (610) (61) (61) 13,373

$113,813 $0 $113,813 $38,250

% of EGI 6.81% 0.00% 6.81% 2.29%

Per Unit 911 0 911 306

$113,813 $0 $113,813 $39,015

% of EGI 6.81% 0.00% 6.81% 2.33%

Per Unit 911 0 911 312

$65,687 $1,024 $70,505 $12,326 $2,318 $151,859 $303,922

3.93% 0.06% 4.22% 0.74% 0.14% 9.08% 18.18%

525 8 564 99 19 1,215 2,431

$67,000 $1,044 $71,915 $12,572 $2,364 $154,896 $307,724

4.01% 0.06% 4.30% 0.75% 0.14% 9.27% 18.41%

536 8 575 101 19 1,239 2,462

$3,188 $19,125 $4,463 $765 $27,540 $63,750 $9,563 $127,500 $19,125 $12,750 $66,866 $2,550 $33,163 $362,806 $666,728 $1,004,921

0.19% 1.14% 0.27% 0.05% 1.65% 3.81% 0.57% 7.63% 1.14% 0.76% 4.00% 0.15% 1.98% 21.70% 39.88% 60.12%

26 153 36 6 220 510 77 1,020 153 102 535 20 265 2,902 5,334 8,039

$3,251 $19,508 $4,552 $780 $28,091 $65,025 $9,754 $130,050 $19,508 $13,005 $68,872 $2,601 $33,826 $370,731 $678,454 $1,043,334

0.19% 1.17% 0.27% 0.05% 1.68% 3.89% 0.58% 7.78% 1.17% 0.78% 4.00% 0.16% 2.02% 22.06% 40.59% 62.41%

26 156 36 6 225 520 78 1,040 156 104 535 21 271 2,950 5,428 8,347

ADG MULTIFAMILY

INCOME

YEAR 1 YE MAR-2023

YEAR 2 YE FEB-2024

YEAR 3 YE FEB-2025

YEAR 4 YE FEB-2026

YEAR 5 YE FEB-2027

YEAR 6 YE FEB-2028

YEAR 7 YE FEB-2029

YEAR 8 YE FEB-2030

YEAR 9 YE FEB-2031

YEAR 10 YE FEB-2032

$1,265,860 ($34,612) $1,231,248 $225,452

$1,509,720 ($90,583) $1,419,137 $232,215

$1,555,012 ($31,100) $1,523,911 $239,172

$1,601,662 ($32,033) $1,569,629 $246,337

$1,649,712 ($32,994) $1,616,718 $251,264

$1,699,203 ($33,984) $1,665,219 $256,289

$1,750,179 ($35,004) $1,715,176 $261,415

$1,802,685 ($36,054) $1,766,631 $266,643

$1,856,765 ($37,135) $1,819,630 $271,976

$1,912,468 ($38,249) $1,874,219 $277,415

$1,969,842 ($39,397) $1,930,445 $282,964

$1,456,700 ($93,444) $0 ($800) $1,362,456

$1,651,352 ($70,957) ($7,096) ($7,096) $1,566,204

$1,763,083 ($76,196) ($7,620) ($7,620) $1,671,648

$1,815,966 ($78,481) ($7,848) ($7,848) $1,721,788

$1,867,981 ($80,836) ($8,084) ($8,084) $1,770,978

$1,921,508 ($83,261) ($8,326) ($8,326) $1,821,595

$1,976,590 ($85,759) ($8,576) ($8,576) $1,873,680

$2,033,274 ($88,332) ($8,833) ($8,833) $1,927,276

$2,091,606 ($90,981) ($9,098) ($9,098) $1,982,428

$2,151,634 ($93,711) ($9,371) ($9,371) $2,039,181

$2,213,409 ($96,522) ($9,652) ($9,652) $2,097,582

Telephone & Internet Replacement & Reserves TOTAL EXPENSES

$113,813 $21,641 $145,962 $44,680 $48,617 $10,324 $194,075 $18,753 $34,996 $48,073 $2,375 $31,875 $715,184

$293,813 $37,500 $148,881 $27,000 $62,500 $9,375 $125,000 $18,750 $12,500 $62,648 $2,500 $32,513 $832,980

$293,813 $38,250 $151,859 $27,540 $63,750 $9,563 $127,500 $19,125 $12,750 $66,866 $2,550 $33,163 $846,728

$293,813 $39,015 $154,896 $28,091 $65,025 $9,754 $130,050 $19,508 $13,005 $68,872 $2,601 $33,826 $858,454

$299,689 $39,795 $157,994 $28,653 $66,326 $9,949 $132,651 $19,898 $13,265 $70,839 $2,653 $34,503 $876,214

$305,683 $40,591 $161,154 $29,226 $67,652 $10,148 $135,304 $20,296 $13,530 $72,864 $2,706 $35,193 $894,346

$311,796 $41,403 $164,377 $29,810 $69,005 $10,351 $138,010 $20,702 $13,801 $74,947 $2,760 $35,896 $912,859

$318,032 $42,231 $167,664 $30,406 $70,385 $10,558 $140,770 $21,116 $14,077 $77,091 $2,815 $36,614 $931,761

$324,393 $43,076 $171,018 $31,015 $71,793 $10,769 $143,586 $21,538 $14,359 $79,297 $2,872 $37,347 $951,060

$330,881 $43,937 $174,438 $31,635 $73,229 $10,984 $146,457 $21,969 $14,646 $81,567 $2,929 $38,094 $970,766

$337,498 $44,816 $177,927 $32,267 $74,693 $11,204 $149,387 $22,408 $14,939 $83,903 $2,988 $38,855 $990,886

NET OPERATING INCOME

$647,272

$733,224

$824,921

$863,334

$894,765

$927,249

$960,821

$995,515

$1,031,368

$1,068,415

$1,106,697

INCOME GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt

Concessions Allowance EFFECTIVE GROSS INCOME

EXPENSE

BEECHMONT - FINANCIALS

CASH FLOW

CURRENT

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

Management Fee

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

19.26% 6.00% 3.00%

3.00% 2.00% 3.00%

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

5.00% 0.00% 0.50% 0.50% 6.00%

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

LOAN MASTER LIST Updated: 1.12.2022 ENTITY ON TAX RETURN

PROPERTY ADDRESS

LENDER

Immaculate Townhomes LLC

1277 Immaculate Lane Cincinnati, OH 45255

Mears Place LLC

1802-1804 Mears Ave. Cincinnati, OH 45230

LOAN DATE

MATURITY DATE

LOAN AMOUNT

INTEREST RATE

FIRST PMT COMMENTS

Pinnacle Bank (Freddie Mac) Refinance 12/10/21

1/1/42

$1,505,000.00

3.56000%

2/1/22

30-year AMO

Pinnacle Bank (Freddie Mac) Refinance 12/3/21

1/1/42

$1,400,000.00

3.460%

2/1/22

30-year AMO

ADG MULTIFAMILY

S E C T I O N

LOC

AL MARKET

CINCINNATI The steady and stable nature of the Cincinnati apartment market due to seasonal demand patterns, the three subsemarket was undoubtfully a benefit through 2020. The MSA quent quarters saw huge demand and absorption totaled saw a 2.7% annual increase in effective asking rents on 1,563 units. That is 38% above the 20-year norm for annual new leases which matched the market’s norm for the 2010s absorption. During the peak of the pandemic challenges the decade. This growth put Cincinnati at #14 amongst the 50 job market declined 4.6%, this ranked Cincinnati 3rd best largest markets for rent growth in 2020. Although occupan- among the Midwest and was significantly better than the cy was down 0.3 points from the prior year’s rate, the 4th national average of 5.8%. quarter 2020 occupancy rate (96.4%) ranked #11 among the top 50 markets and #3 regionally. Only Q1 2020 saw net move-outs, although that’s typically the case in the local

E C O N O M I C OV E R V I E W Prior to the pandemic, Cincinnati’s economy grew at a moderate rate – averaging an estimated growth pace of 2.1% annually in the five years ending Q1 2020. However, the economy contracted 2.4% in 2020. By November of 2020 the pandemic induced the loss of 51,200 jobs putting the employment rate at 4.8%, below the national average of 6.4%. Cincinnati has experienced less severe economic impacts compared to other cities, this fact is credited to the divers and stable employers that call Cincinnati home. There are eight fortune 500 companies headquartered in Cincinnati: Kroger, Procter & Gamble, Fifth Third Bancorp, American Financial Group, Cincinnati Financial, Western & Southern Financial Group, Cintas & Ak Steel Holding. In addition to the nationally recognized powerhouse corporations, Cincinnati has placed a specific focus on programs to foster and promote entrepreneurs and start-ups. Also the city has made significant investments in facilities and infrastructure to support medical research, and other scientific innovations to attract and retain talent found at the University of Cincinnati. The Innovation Corridor by Uptown Consortium is the largest single development in Cincinnati since the Great American Ball Park and will be a state-of-the-art science and research hub next to UC.

ADG MULTIFAMILY

D E M O G R A P H I C OV E R V I E W Population growth in Cincinnati remains ulation growth coupled with a modest modest, as the metro’s population ex- pipeline has maintained occupancies panded just 2.5% from 2014-2019, be- between 95%-97% over the last six years low the U.S. average of 2.9%. During with the average occupancy in Q4 of that period the majority of Cincinnati’s 2020 being above the six year average growth came from the 55+ age segment at 96.4%. The average effective asking which grew 11.5%. The 20-to 34-year-old rents have outperformed the Midwest segment grew modestly over the five- averages since 2011 and in 2020 the year period increasing 2.1% which was average effective rents grew by 2.7% above the national average of 1.6%. A outpacing the Midwest average of 0.8% very strong aspect to Cincinnati’s popu- and the national average of -1.1%. lation is the level of education amongst the working age population with 37% of that segment having a bachelor’s degree or higher compared to the national average of 33.1%. The modest pop-

D E M O G R A P H I C S : STAT I ST I C S Population: 2,190,000

Msa median hhi: $62,743

Msa median home value: $173,500

Average occupancy: 96.4%

Median age: 38 (.39%)

1 - Year growth: 1.77%

1 - Year growth: 4.83%

Rent growth: 2.7%

S U P P LY & D E M A N D DEMAND • Annual absorption in Cincinnati has ranged from 776 units to 3,068 units in the last five years. Average of 1,788 units annually during that time. • In the last 12 months, the Cincinnati market recorded demand for 1,462 units, exceeding concurrent supply volumes for the first time since the pandemic began. • Campbell County, Warren County and Butler County are a few of the strongest areas in Cincinnati, based on absorption, over the last five years.

S U P P LY • Over the past five years Annual new supply averaged 1,555 units, and annual inventory growth averaged 1.0%. In the year-ending 2nd quarter 2021, there were 1,131 units delivered. • Among submarkets, new supply over the past five years has been concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County, totaling 62% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be concentrated in Central Cincinnati.

HEART OF DOWNTOWN The Banks is a gathering place for people all across the region. It provides a lively atmosphere full of attractions that promote public enjoyment and appreciation for city’s riverfront. Spanning the full width of the Central Business District, The Banks brings the waterfront to downtown’s front door. Thriving off of the energy generated by the adjacent professional sports venues, Paul Brown Stadium to the west and Great American Ballpark to the east, The Banks provides life and energy as a premier live, work, and play district.

TQ L STA D I U M The FCC-TQL partnership brings together two Cincinnati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commitment to our local community. There are a lot of synergies that make this alliance between TQL and FCC a perfect match and are reflected throughout the stadium from — the fin lighting to the TQL Beer District. The stadium features first-in-the-world lighting technology powered by 2.7 miles of LED lights.

I N T E R E ST I N G STAT I ST I C S 26,000 STADIUM SEATS 14,256 FEET OF LED LIGHTS 360 CANOPY ROOF 3,170 BAILEY SEATS ADG MULTIFAMILY

ATTRACTIONS DORA From 11am – 1am daily, the 85-acre DORA district at The Banks allows guests to take their beverage purchased from one of the 18 Banks establishments and explore our public plazas and green spaces. It simply needs to be in the Official DORA Cup. At risk of missing the first pitch? Late for the opening act? Take your beverage purchased in a DORA cup from a Banks establishment and go! Waiting for a table, or wish to picnic outside in The Banks plazas or greenspaces? Grab a DORA beverage from a Banks establishment and explore!

C I N C I N N AT I Z O O The Cincinnati Zoo & Botanical Garden is the second oldest zoo in the United States, founded in 1873 and officially opening in 1875, after the Roger Williams Park Zoo. It is located in the Avondale neighborhood of Cincinnati, Ohio. It originally began with 64.5 acres in the middle of the city, but has spread into the neighboring blocks and several reserves in Cincinnati’s outer suburbs. It was appointed as a National Historic Landmark in 1987.

H A R D RO C K CAS I N O The game is always on at Hard Rock Casinos, where stars are made every night. Come try your hand at the tables, with classic games including blackjack, baccarat and poker, or tap into thousands of the hottest slots on the planet. With the world’s greatest rock memorabilia collection to enhance the thrill, plus the accompaniment of live, world-class entertainment, the atmosphere is like no other.

RETAIL & SHOPPING In addition to the restaurant and nightlight scene, the area has no shortage of retail options. Downtown offers both boutiques and department stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s

homage

Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restaurant and nightlife scene is now thriving, and the shopping scene is beginning to catch up. Most of the shops are in the southwest quarter of Over-the-Rhine, on either Vine or Main St. You won’t find chain stores in this walkable shopping district. MiCA 12/v and Urban Eden are a popular gift shops that sell local arts and crafts. Elm & Iron sells vintage and up-cycled items for the home. The Little Mahatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit

otr

upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shoppers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.

elm & iron

FINDLAY FARMERS MARKET Findlay Market is Ohio’s oldest continuously operated public market

merchants are new startups, while others have been in business for

and is located in the historic Over-the-Rhine neighborhood. The mar- generations. You’ll find everything from fresh meat and produce to ket is a wonderful place for locals to buy their groceries as well as imported fine teas to Belgian waffles. There are restaurants as well a must-see historic spot for visitors to Cincinnati. Findlay Market is as a beer garden, so plan to stay for lunch. Findlay Market has a fasopen year-round, Tuesday through Sunday, with a seasonal farmers cinating history. Why not take a tour to learn more? There are several market. Nearly 40 full-time businesses operate year-round, plus over 100 more vendors operate on weekends or part-time. Many vendors sell raw food while others specialize in prepared foods. Some of the

different tour options, including a culinary tour with tasty samples.

visit adgmultifamily.com to learn more.