Beechmont

Page 1

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.

32 |FINANCIALS 01 02 03 0442 | LOCAL MARKET 18 | LOCAL COMPETITORS 06 | THE INVESTMENTCONTENTSBROKER CAPABILITIES & OPINION OF VALUE
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES80+ | OFFICES

UNRIVALED SUCCESS IN THE MIDWEST

OPERATIONS

Brittany
Campbell-Koch Director of Operations Liz Popp Midwest Operations Manager John Sebree Senior Vice President National Director National Multi Housing Group Michael Glass Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group Josh Caruana Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City
Nick Andrews First
Vice President Investments Director, NMHG
Jordan Dickman First Vice President
Investments
Director, NMHG Austin Sum Senior Investment Associate JD Schmerge
Investment
Associate Brian Johnston
Investment
Associate
INVESTMENT ADVISORS
Tim VanWingerden Investment Associate DEBT
& STRUCTURED FINANCE
Chris
Litzler Senior Director of Organization MMCC Sam Petrosino Financial & Research Analyst VALUATION & RESEARCH Skyler Wilson Client Relations Manager CLIENT RELATIONS Alex Papa Marketing Coordinator Kristin Smith Marketing MARKETING
Austin Hall
Investment Associate

INVESTMENT

01SECTION THE
6 ADG MULTIFAMILY

INVESTMENT

ADG7 MULTIFAMILY

HIGHLIGHTS

BEECHMONT PORTFOLIO

VALUE- ADD OPPORTUNITY

The TLG Beechmont Portfolio is uniquely positioned on the last frontier of the Eastern Growth Corridor, which is the connecting piece between Downtown, Oakley, Hyde Park and the highly sought after submarket of Anderson. All three pieces of the portfolio have the capacity to undergo a strategic renovation plan to catapult it’s rents closer to some of its direct competitors in the surrounding submarkets of Mount Washington/Anderson, all of which outpace TLG Beechmont Portfolio by $250-$300. Not only does the portfolio give an incoming investor a Strategic Renovation Opportunity, but it also boasts an easy management opportunity as trailing controlla ble expenses are nearly $110k higher than that of local competitors when compared on a unit per unit basis. The TLG Beechmont Portfolio gives an incoming investor both a management play and a strate gic renovation play in one of Cincinnati’s hottest and up-and-coming markets.

HARD TO FIND | HIGH DEMAND ASSET

Only two other assets with 100+ units have sold in this Eastern Growth Corridor of Cincinnati in the last 5 years. Barrier to entry into this market is one of the highest in the city due to its fundamental strengths and limited supply of good opportunities to own in bulk.

THE MARKET

Like many Midwest markets, Cincinnati evaded the worst effects of the pandemic relative to other areas of the country. Spurred by healthy job gains and moderate population growth, the Cincinnati apartment market continues to attract new residents, investors, and developers. Apartment demand reached 3,785 units in 2021, one of Cincinnati’s better performances in the last 30 years. This strong apartment demand boosted occupancy to its highest recorded level at 98.1% in the 4th quarter of 2021. Such strong demand allowed operators 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 occupan cies north of 96%, rent growth broke 12% in a year-over-year com parison 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.

INVESTMENT
8 ADG MULTIFAMILY
99,290 125 799 RENTABLE SQUARE FEET TOTAL UNITS AVG SF #1 Bedrooms 56 #2 Bedrooms 63 #3 Bedrooms 6 % Leased 96% PROPERTY SUMMARY BEECHMONT PORTFOLIO * * * REFER TO PAGE 41 FOR LOAN ASSUMPTION DETAILS FOR IMMACULATE AND MEARS, RIVERSTONE IS OFFERED FREE AND CLEAR. ADG9 MULTIFAMILY
STRATEGIC RENOVATION BEECHMONT PORTFOLIO 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 GRANITE COUNTERTOPS VINYL PLANK FLOORING MATCHING APPLIANCES NEW HARDWARE & PAINTED CABINETS 27%$7,500 ESTIMATED COST (1 BR) $170 AVG. RENT INCREASE / MO. 26%$9,500 ESTIMATED COST (2 BR) $210 AVG. RENT INCREASE / MO. RETURN ON INVESTMENT RETURN ON INVESTMENT
PROPERTY DETAILS IMMACULATE TOWNHOMES Property Name Immaculate Townhomes Property Address 1277 Immaculate Ln City, State Cincinnati, Ohio County Hamilton Year Built 1961 Property Type (Market Rate, LIHTC, Student Housing, etc) Market Units 16 Sqft 17,600 Avg Effective Rent $1,153 Avg Market Rent $1,162

PHOTOS

RIVERSTONE Property Name Riverstone Court Property Address 5623; 5653; 5615; 5631; 5500 Beechmont Ave City, State Cincinnati, Ohio County Hamilton Year Built 1952-1972 Property Type (Market Rate, LIHTC, Student Housing, etc) Market Units 87 Sqft 63,320 Avg Effective Rent $767 Avg Market Rent $786
PROPERTY DETAILS MEARS PLACE Property Name Mears Place Property Address 1802-1804 Mears Ave City, State Cincinnati, Ohio County Hamilton Year Built 1970 Property Type (Market Rate, LIHTC, Student Housing, etc) Market Units 22 Sqft 19,000 Avg Effective Rent $787 Avg Market Rent $813
02SECTION LOCAL COMPETITORS

COMPETITORS

LOCAL COMPETITORS 1 BEECHMONT TOWERS 2 WASHINGTON HOUSE APTS 3 DEER HILL APTS 4 COPPER HILL APTS 5 BERKSHIRE APTS 6 THE WOODS OF TURPIN HILLS RENT COMPARABLES 2 4 1 3 *5623 BEECHMONT AVE 5653 BEECHMONT AVE 5615 BEECHMONT AVE 5490 BEECHMONT AVE
5 6

UNITS

OCCUPANCY 98.8%

UNIT

RENT/SF

One Bedroom 26 822 $950 $1.16

Two Bedroom 28 925 $1,150 $1.24

Apartment

BEECHMONT TOWERS

Common Area Amenities

Off-street parking

Laundry facilities on site

On-site maintenance

56 YEAR BUILT 1983
MIX # OF UNITS SQFT RENT
Interior Amenities Dishwasher Refridgerator Patio/balcony

WASHINGTON HOUSE APTS

Common

One Bedroom 24 825 $860 $1.04

Two Bedroom 23 900 $1,050 $1.17

Area Amenities Clubhouse Fitness Center Game Room Gated Apartment Interior Amenities Balcony Cable Ready Fireplace UNITS 47 YEAR BUILT 1964 OCCUPANCY 97.5% UNIT MIX # OF UNITS SQFT RENT RENT/SF

UNIT

One Bedroom

Two

650 $1,065 $1.64

850 $1,300 $1.53

Common

BLUE VALLEY FLATS

UNITS 124 YEAR BUILT 1968 OCCUPANCY N/A
MIX # OF UNITS SQFT RENT RENT/SF
16
Bedroom 86
Area Amenities Laundry Swimming pool On site maintenance Apartment Interior Amenities Dishwasher Air conditioning Additional storage

COPPER

HILL

Apartment

Common

Wooded

Off

One Bedroom

615 $915 $1.49

750 $1,145 $1.53

Interior Amenities Washer/Dryer in unit Air Conditioning Pets Welcome
Area Amenities Laundry facilities
communities
street parking
UNITS 48 YEAR BUILT 1972 OCCUPANCY 99.9% UNIT MIX # OF UNITS SQFT RENT RENT/SF
8
Two Bedroom 40

SUTTON PLACE APARTMENTS

Apartment Interior Amenities

UNITS

UNIT

One

Two

$1.68

$1.05

closets

Common Area Amenities

Center

Street Parking

facilities

community

Fitness
Pool Off
Laundry
Wooded
Air conditioner Balcony Disposal Large
83 YEAR BUILT 1967 OCCUPANCY 99.9%
MIX # OF UNITS SQFT RENT RENT/SF
Bedroom 34 650 $1,095
Bedroom 35 1000 $1,045

WOODS OF TURPIN HILLS

One

Common Area Amenities 24-Hour Access Maintence on Site Apartment Interior Amenities Cable Ready Large Bedrooms Hardwood Floors
UNITS 152 YEAR BUILT 1973 OCCUPANCY 96.7% UNIT MIX # OF UNITS SQFT RENT RENT/SF
Bedroom 75 685 $855 $1.25 Two Bedroom 77 925 $970 $1.05

LOCAL COMPETITORS - ONE BEDROOM

One Bedroom Year Built Year Built # Units Avg SF Avg Rent Avg Rent/SF Sutton Place Apartments 1967 83 650 $1,095 $1.68 Blue Valley Flats 1968 124 650 $1,065 $1.64 Deer Hill Apartments 1977 258 650 $1,040 $1.60 Subject Pro Forma 1960 87 642 $950 $1.48 Beechmont Towers Apartments 1983 56 822 $950 $1.16 Copper Hill 1972 48 615 $915 $1.49 Washington House Apartments 1964 47 825 $860 $1.04 The Woods of Turpin Hills 1973 152 685 $855 $1.25 Berkshire Apartments 1980 65 650 $800 $1.23 Subject Average Effective 1960 87 642 $791 $1.23

LOCAL COMPETITORS - TWO BEDROOM

Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Blue Valley Flats 1968 124 850 $1,300 $1.53 Deer Hill Apartments 1977 258 950 $1,200 $1.26 Subject Pro Forma 1960 87 874 $1,150 $1.32 Beechmont Towers Apartments 1983 56 925 $1,150 $1.24 Copper Hill 1972 48 750 $1,145 $1.53 Washington House Apartments 1964 47 900 $1,050 $1.17 Sutton Place Apartments 1967 83 1000 $1,045 $1.05 The Woods of Turpin Hills 1973 152 925 $970 $1.05 Subject Average Effective 1960 87 874 $897 $1.03 Berkshire Apartments 1980 65 721 $875 $1.21

FINANCIALS

03SECTION

FINANCIALS

$42,350 $959.29 $1.50

$56,990 $1,116.35 $1.25

$7,500 $1,366.67

$106,840 $1,058.00

AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL SUMMARY One Bedroom 56 Units 642 SF 35,930 SF $741.38 $1.16 $41,517 $756.25 $1.18 SF
SF $53,720 Two Bedroom 63 Units 895 SF 56,390 SF $877.05 $0.98 $55,254 $904.60 $1.01 SF
SF $70,330 Three Bedroom 6 Units 1,267 SF 7,600 SF $1,225.00 $0.97 $7,350 $1,250.00 $0.99 SF
$1.08 SF $8,200 Totals / Wtd. Averages 125 Units 799 SF 99,920 SF $832.97 $1.04 SF $104,121 $854.72 $1.07 SF
$1.32 SF $132,250 UNIT MIX SUMMARY BEECHMONT - FINANCIALS UNIT DISTRIBUTION 45% Two Bedroom UNIT RENTS Pro Forma ProjectionAvg. Effective Two Bedroom 50% One Bedroom One Bedroom 5% Three Bedroom Three Bedroom 34 ADG MULTIFAMILY

UNIT MIX BREAKDOWN

ONE BEDROOM

1BR/1BA - Riverstone

Units

1BR/1BA - Riverstone 18 Units

1BR/1BA - Riverstone 20 Units

Totals / Wtd. Averages 56 Units

TWO BEDROOM

MARKET

SF

SF $12,918 $750.00 $1.30 SF $13,500 $925.00 $1.61 SF $16,650

SF $13,834 $775.00 $1.17 SF $13,950 $965.00 $1.46 SF $17,370

$1.08 SF $14,765 $745.00 $1.09 SF $14,900 $985.00 $1.44 SF $19,700

$1.16 SF $41,517 $756.25 $1.18 SF $42,350 $959.29 $1.50 SF $53,720

2BR/1BA - Riverstone 23 Units 850 SF 19,550 SF $818.15 $0.96 SF $18,817 $850.00 $1.00 SF $19,550 $1,150.00 $1.35 SF $26,450

2BR/1BA - Riverstone 8 Units 980 SF 7,840 SF $1,000.71 $1.02 SF $8,006 $1,030.00 $1.05 SF $8,240 $1,175.00 $1.20 SF $9,400

2BR/1BA - Immaculate Townhomes 12 Units 1,000 SF 12,000 SF $1,084.00 $1.08 SF $13,008 $1,100.00 $1.10 SF $13,200 $1,225.00 $1.23 SF $14,700

2BR/1BA - Mears Place 20 Units 850 SF 17,000 SF $771.15 $0.91 SF $15,423 $800.00 $0.94 SF $16,000 $989.00 $1.16 SF $19,780

Totals / Wtd. Averages 63 Units 895 SF 56,390 SF $877.05 $0.98 SF $55,254 $904.60 $1.01 SF $56,990 $1,116.35 $1.25 SF $70,330

THREE BEDROOM

3BR/1BA - Immaculate Townhomes 4 Units 1,400 SF

3BR/1BA - Mears Place 2 Units

Totals / Wtd. Averages 6 Units

SF

SF $1,362.50 $0.97 SF $5,450 $1,400.00 $1.00 SF $5,600 $1,400.00 $1.00 SF $5,600

SF

$0.95 SF $1,900 $950.00 $0.95 SF $1,900 $1,300.00 $1.30 SF $2,600

SF $7,350 $1,250.00 $0.99 SF $7,500 $1,366.67 $1.08 SF $8,200

AVERAGE EFFECTIVE
PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL
18
575 SF 10,350 SF $717.69 $1.25
660 SF 11,880 SF $768.53 $1.16
685 SF 13,700 SF $738.27
642
35,930 SF $741.38
5,600
1,000
2,000
$950.00
1,267 SF 7,600 SF $1,225.00 $0.97
BEECHMONT - FINANCIALS ADG35 MULTIFAMILY

GROSS POTENTIAL RENT

All Units at Market Rent $1,265,760 T3 10,126 $1,587,000 12,696 Gain (Loss) to Lease ($23,389) T3 1.85% (187) ($95,220) 6.00% (762)

GROSS SCHEDULED RENT $1,242,371 9,939 $1,491,780 11,934

OTHER INCOME

Water Reimbursement $49,491 T3 3.98% 396 $50,976 3.42% 408 Pet Fees $15,716 T3 1.26% 126 $16,187 1.09% 129 MTM Fees $12,800 T3 1.03% 102 $13,184 0.88% 105 Late Rent Fees $9,800 T3 0.79% 78 $10,094 0.68% 81 Waste Disposal Reimbursement $7,947 T3 0.64% 64 $8,185 0.55% 65 Laundry Income $7,130 T3 0.57% 57 $7,344 0.49% 59 Utility Read Income $3,702 T3 0.30% 30 $3,813 0.26% 31 Collections $3,107 T3 0.25% 25 $3,200 0.21% 26 Collections- Eviction Filing Fees $2,080 T3 0.17% 17 $2,142 0.14% 17 Admin Fees $2,000 T3 0.16% 16 $2,060 0.14% 16 Application Fees $1,080 T3 0.09% 9 $1,112 0.07% 9

Waiver Fees $360 T3 0.03% 3 $371 0.02% 3

Total Other Income $115,424 9.29% 923 $118,886 7.97% 951

GROSS POTENTIAL INCOME $1,357,795 10,862 $1,610,666 12,885 Physical Vacancy ($51,322) T3 4.13% (411) ($74,589) 5.00% (597) Bad Debt ($38,014) T3 3.06% (304) ($7,459) 0.50% (60) Concessions Allowance ($400) T3 0.03% (3) ($7,459) 0.50% (60)

EFFECTIVE GROSS INCOME $1,268,059 90.93% 10,144 $1,521,159 88.00% 12,169

NON-CONTROLLABLE

Real Estate Taxes % of EGI Per Unit % of EGI Per Unit 2020 Taxes Paid $113,813 Auditor 8.98% 911 $113,813 7.48% 911 Adjustment for Sale $180,000 14.19% 1,440 $180,000 11.83% 1,440

Total Real Estate Taxes $293,813 23.17% 2,351 $293,813 19.32% 2,351 Insurance $21,361 T12 1.68% 171 $37,500 2.47% 300

Utilities

Gas & Electric $58,150 T12 4.59% 465 $59,313 3.90% 475 Gas & Electric Vacant $1,687 T12 0.13% 13 $1,721 0.11% 14 Water & Sewage $67,638 T12 5.33% 541 $68,991 4.54% 552 Trash Removal $13,943 T12 1.10% 112 $14,222 0.93% 114 Meter Reading Fee $3,431 T12 0.27% 27 $3,500 0.23% 28

Total Utilities $144,849 11.42% 1,159 $147,746 9.71% 1,182

Total Non-Controllable $460,023 36.28% 3,680 $479,059 31.49% 3,832

CONTROLLABLE

Contract Services

Snow Removal $6,638 T12 0.52% 53 $3,125 0.21% 25 Landscaping/Grounds $36,968 T12 2.92% 296 $18,750 1.23% 150 Pest Control $3,024 T12 0.24% 24 $4,375 0.29% 35

Total Contract Services $46,630 3.68% 373 $26,250 1.73% 210

Repairs & Maintenance $61,230 T12 4.83% 490 $62,500 4.11% 500

Marketing & Promotion $9,994 T12 0.79% 80 $9,375 0.62% 75

On-Site Payroll $164,813 T12 13.00% 1,319 $125,000 8.22% 1,000

Payroll Taxes & Benefits $18,187 T12 1.43% 145 $18,750 1.23% 150

General & Administrative $37,374 T12 2.95% 299 $12,500 0.82% 100

Management Fee $49,202 T12 3.88% 394 $60,846 4.00% 487

Telephone & Internet $2,382 T12 0.19% 19 $2,500 0.16% 20

Replacement & Reserves $31,875 Note 1 2.51% 255 $32,513 2.14% 260

Total Controllable $421,687 33.25% 3,373 $350,234 23.02% 2,802

TOTAL EXPENSES $881,710 69.53% 7,054 $829,293 54.52% 6,634

NET OPERATING INCOME $386,349 30.47% 3,091 $691,867 45.48% 5,535

CURRENT YEAR 1
INCOME & EXPENSES BEECHMONTFINANCIALS INCOME EXPENSE

$1,634,610 13,077 $1,683,648 13,469 ($32,692) 2.00% (262) ($33,673) 2.00% (269) $1,601,918 12,815 $1,649,975 13,200 $52,505 3.28% 420 $54,080 3.28% 433 $16,673 1.04% 133 $17,173 1.04% 137 $13,580 0.85% 109 $13,987 0.85% 112 $10,397 0.65% 83 $10,709 0.65% 86 $8,431 0.53% 67 $8,684 0.53% 69 $7,564 0.47% 61 $7,791 0.47% 62 $3,927 0.25% 31 $4,045 0.25% 32 $3,296 0.21% 26 $3,395 0.21% 27 $2,207 0.14% 18 $2,273 0.14% 18 $2,122 0.13% 17 $2,185 0.13% 17 $1,146 0.07% 9 $1,180 0.07% 9 $382 0.02% 3 $393 0.02% 3 $122,453 7.64% 980 $126,126 7.64% 1,009 $1,724,371 13,795 $1,776,102 14,209 ($80,096) 5.00% (641) ($82,499) 5.00% (660) ($8,010) 0.50% (64) ($8,250) 0.50% (66) ($8,010) 0.50% (64) ($8,250) 0.50% (66) $1,628,256 92.00% 13,026 $1,677,103 92.00% 13,417

% of EGI Per Unit

% of EGI Per Unit $113,813 6.99% 911 $113,813 6.99% 911 $180,000 11.05% 1,440 $180,000 11.05% 1,440 $293,813 18.04% 2,351 $293,813 18.04% 2,351 $38,250 2.35% 306 $39,015 2.40% 312 $60,499 3.72% 484 $61,709 3.79% 494 $1,755 0.11% 14 $1,790 0.11% 14 $70,371 4.32% 563 $71,778 4.41% 574 $14,506 0.89% 116 $14,796 0.91% 118 $3,570 0.22% 29 $3,641 0.22% 29 $150,701 9.26% 1,206 $153,715 9.44% 1,230 $482,764 29.65% 3,862 $486,543 29.88% 3,892 $3,188 0.20% 26 $3,251 0.20% 26 $19,125 1.17% 153 $19,508 1.20% 156 $4,463 0.27% 36 $4,552 0.28% 36 $26,775 1.64% 214 $27,311 1.68% 218 $63,750 3.92% 510 $65,025 3.99% 520 $9,563 0.59% 77 $9,754 0.60% 78 $127,500 7.83% 1,020 $130,050 7.99% 1,040 $19,125 1.17% 153 $19,508 1.20% 156 $12,750 0.78% 102 $13,005 0.80% 104 $65,130 4.00% 521 $67,084 4.00% 521 $2,550 0.16% 20 $2,601 0.16% 21 $33,163 2.04% 265 $33,826 2.08% 271 $360,305 22.13% 2,882 $368,163 22.49% 2,930 $843,069 51.78% 6,745 $854,705 52.49% 6,838 $785,187 48.22% 6,281 $822,398 50.51% 6,579

YEAR 2 YEAR 3
ADG37 MULTIFAMILY

INCOME

GROSS POTENTIAL RENT All Units at Market Rent $1,265,760 $1,587,000 $1,634,610 $1,683,648 $1,734,158 $1,786,182 $1,839,768 $1,894,961 $1,951,810 $2,010,364 $2,070,675 Gain (Loss) to Lease ($23,389) ($95,220) ($32,692) ($33,673) ($34,683) ($35,724) ($36,795) ($37,899) ($39,036) ($40,207) ($41,414)

GROSS SCHEDULED RENT $1,242,371 $1,491,780 $1,601,918 $1,649,975 $1,699,475 $1,750,459 $1,802,973 $1,857,062 $1,912,774 $1,970,157 $2,029,262

Total Other Income $115,424 $118,886 $122,453 $126,126 $128,649 $131,222 $133,846 $136,523 $139,254 $142,039 $144,880

GROSS POTENTIAL INCOME $1,357,795 $1,610,666 $1,724,371 $1,776,102 $1,828,124 $1,881,681 $1,936,819 $1,993,585 $2,052,027 $2,112,196 $2,174,141 Physical Vacancy ($51,322) ($74,589) ($80,096) ($82,499) ($84,974) ($87,523) ($90,149) ($92,853) ($95,639) ($98,508) ($101,463) Bad Debt ($38,014) ($7,459) ($8,010) ($8,250) ($8,497) ($8,752) ($9,015) ($9,285) ($9,564) ($9,851) ($10,146) Concessions Allowance ($400) ($7,459) ($8,010) ($8,250) ($8,497) ($8,752) ($9,015) ($9,285) ($9,564) ($9,851) ($10,146)

EFFECTIVE GROSS INCOME $1,268,059 $1,521,159 $1,628,256 $1,677,103 $1,726,155 $1,776,653 $1,828,641 $1,882,161 $1,937,261 $1,993,986 $2,052,385

EXPENSES

Real Estate Taxes $293,813 $293,813 $293,813 $293,813 $299,689 $305,683 $311,796 $318,032 $324,393 $330,881 $337,498 Insurance $21,361 $37,500 $38,250 $39,015 $39,795 $40,591 $41,403 $42,231 $43,076 $43,937 $44,816

Utilities $144,849 $147,746 $150,701 $153,715 $156,789 $159,925 $163,124 $166,386 $169,714 $173,108 $176,570 Contract Services $46,630 $26,250 $26,775 $27,311 $27,857 $28,414 $28,982 $29,562 $30,153 $30,756 $31,371 Repairs & Maintenance $61,230 $62,500 $63,750 $65,025 $66,326 $67,652 $69,005 $70,385 $71,793 $73,229 $74,693 Marketing & Promotion $9,994 $9,375 $9,563 $9,754 $9,949 $10,148 $10,351 $10,558 $10,769 $10,984 $11,204

On-Site Payroll $164,813 $125,000 $127,500 $130,050 $132,651 $135,304 $138,010 $140,770 $143,586 $146,457 $149,387 Payroll Taxes & Benefits $18,187 $18,750 $19,125 $19,508 $19,898 $20,296 $20,702 $21,116 $21,538 $21,969 $22,408 General & Administrative $37,374 $12,500 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 Management Fee $49,202 $60,846 $65,130 $67,084 $69,046 $71,066 $73,146 $75,286 $77,490 $79,759 $82,095 Telephone & Internet $2,382 $2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 Replacement & Reserves $31,875 $32,513 $33,163 $33,826 $34,503 $35,193 $35,896 $36,614 $37,347 $38,094 $38,855

CURRENT 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
TOTAL EXPENSES $881,710 $829,293 $843,069 $854,705 $872,420 $890,507 $908,976 $927,833 $947,088 $966,749 $986,825 NET OPERATING INCOME $386,349 $691,867 $785,187 $822,398 $853,735 $886,146 $919,665 $954,328 $990,173 $1,027,237 $1,065,561 CASH FLOW BEECHMONTFINANCIALS INCOME EXPENSE 38 ADG MULTIFAMILY

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

Income

Gross Potential Rent 25.38% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 6.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenses

Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Management Fee** 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

YR

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 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Concessions Allowance 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Total Economic Loss 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 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

Immaculate Townhomes LLC 1277 Immaculate Lane Cincinnati, OH

Mears Place LLC 1802-1804 Mears Ave. Cincinnati, OH

PMT

Pinnacle Bank (Freddie Mac) Refinance 12/10/21 1/1/42 $1,505,000.00 3.56000% 2/1/22 30-year AMO

Bank (Freddie Mac) Refinance 12/3/21 1/1/42 $1,400,000.00 3.460% 2/1/22 30-year AMO

YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
1 YR 2 YR 3 YR 4 YR 5
YR 6 YR 7 YR 8 YR 9 YR 10
ENTITY ON TAX RETURN PROPERTY ADDRESS LENDER LOAN DATE MATURITY DATE LOAN AMOUNT INTEREST RATE FIRST
COMMENTS
45255
45230 Pinnacle
ADG39 MULTIFAMILY
04SECTION LOCAL

LOCAL MARKET

CINCINNATI

The steady and stable nature of the Cincinnati apartment market was undoubtfully a benefit through 2020. The MSA saw a 2.7% annual increase in effective asking rents on new leases which matched the market’s norm for the 2010s decade. This growth put Cincinnati at #14 amongst the 50 largest markets for rent growth in 2020. Although occupancy was down 0.3 points from the prior year’s rate, the 4th 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

market due to seasonal demand patterns, the three subse quent quarters saw huge demand and absorption totaled 1,563 units. That is 38% above the 20-year norm for annual absorption. During the peak of the pandemic challenges the job market declined 4.6%, this ranked Cincinnati 3rd best among the Midwest and was significantly better than the national average of 5.8%.

ECONOMIC OVERVIEW

Prior to the pandemic, Cincinnati’s economy grew at a moder ate rate – averaging an estimated growth pace of 2.1% annu ally 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 com panies headquartered in Cincinnati: Kroger, Procter & Gam ble, Fifth Third Bancorp, American Financial Group, Cincinnati Financial, Western & Southern Financial Group, Cintas & Ak Steel Holding. In addition to the nationally recognized power house 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.

Population: 2,190,000

Median age: 38 (.39%)

DEMOGRAPHIC OVERVIEW

Population growth in Cincinnati remains modest, as the metro’s population ex panded just 2.5% from 2014-2019, be low the U.S. average of 2.9%. During that period the majority of Cincinnati’s growth came from the 55+ age segment which grew 11.5%. The 20-to 34-year-old segment grew modestly over the fiveyear period increasing 2.1% which was above the national average of 1.6%. A very strong aspect to Cincinnati’s popu lation is the level of education amongst the working age population with 37% of that segment having a bachelor’s de gree or higher compared to the nation al average of 33.1%. The modest pop

DEMOGRAPHICS: STATISTICS

Msa median hhi: $62,743

1 - Year growth: 1.77%

Msa median home value: $173,500

1 - Year growth: 4.83%

ulation growth coupled with a modest pipeline has maintained occupancies between 95%-97% over the last six years with the average occupancy in Q4 of 2020 being above the six year average at 96.4%. The average effective asking rents have outperformed the Midwest averages since 2011 and in 2020 the average effective rents grew by 2.7% outpacing the Midwest average of 0.8% and the national average of -1.1%.

Average occupancy: 96.4%

Rent growth: 2.7%

SUPPLY & DEMAND

DEMAND

• Annual absorption in Cincinnati has ranged from 776 units to 3,068 units in the last five years. Average of 1,788 units annu ally during that time.

• In the last 12 months, the Cincinnati market recorded de mand 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.

SUPPLY

• 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. Sched uled 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 enjoy ment and appreciation for city’s riverfront. Spanning the full width of the Central Business District, The Banks brings the waterfront to down town’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.

TQL STADIUM

The FCC-TQL partnership brings together two Cincin nati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commit ment to our local community. There are a lot of syner gies that make this alliance between TQL and FCC a perfect match and are reflected throughout the sta dium 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.

26,000 STADIUM SEATS 14,256 FEET OF LED LIGHTS 360 CANOPY ROOF 3,170 BAILEY SEATS
ADG47 MULTIFAMILY INTERESTING STATISTICS

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 greens paces? Grab a DORA beverage from a Banks establish ment and explore!

CINCINNATI ZOO

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 Cin cinnati, 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 sub urbs. It was appointed as a National Historic Landmark in 1987.

HARD ROCK CASINO

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 thou sands 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 de partment stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restau rant 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 Ma hatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shop pers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.

homage elm & iron otr

FINDLAY FARMERS MARKET

Findlay Market is Ohio’s oldest continuously operated public market and is located in the historic Over-the-Rhine neighborhood. The mar ket is a wonderful place for locals to buy their groceries as well as a must-see historic spot for visitors to Cincinnati. Findlay Market is open year-round, Tuesday through Sunday, with a seasonal farmers 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

merchants are new startups, while others have been in business for generations. You’ll find everything from fresh meat and produce to imported fine teas to Belgian waffles. There are restaurants as well as a beer garden, so plan to stay for lunch. Findlay Market has a fas cinating history. Why not take a tour to learn more? There are several different tour options, including a culinary tour with tasty samples.

visit adgmultifamily.com to learn more.

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