Broadleaf Arms OM

Broadleaf arms OFFERING MEMORANDUM

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

“OUR COMMITMENT IS TO HELP OUR CLIENTS CREATE

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

AND PRESERVE WEALTH BY PROVIDING THEM WITH THE BEST REAL ESTATE INVESTMENT SALES, FINANCING, RESEARCH AND ADVISORY SERVICES AVAILABLE.”

SECTIONS

01 - THE INVESTMENT

06

02 - local competitors

26

03 - FINANCIALS

34

04 - LOCAL MARKET

46

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.

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST YOUR TEAM

C ORPORATE SUPPORT

JO RDA N DI C K M A N FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

L IZ PO PP M IDW E ST OPE R ATIONS MANAG ER

NI C K A N DR E WS FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

JO S H CA R UA NA V ICE PR E SIDE N T R E GION A L M A N A GER IN DIA N A POL IS | C INC INNATI | LOUISVILLE | ST LOUIS | KANSAS C ITY

AUS TI N SUM S E NI OR I N V E S TME N T AS S OC I AT E B RIAN JO H N ST O N I NVE S TME N T A S S O C I AT E AUS TI N H a l l I NVE S TME N T A S S O C I AT E ALDEN SI M M S I NVE S TME N T A S S O C I AT E

JO HN S E BR E E SE N IOR V ICE PR E SIDENT N A T ION A L DIR E CTOR N A T ION A L M U LT I HOUSING G ROUP MICHA E L G L A S S SE N IOR V ICE PR E SIDENT M IDW E ST DIVISIO N MANAG ER N A T ION A L DIR E CTOR, MANUFAC TURED HOME C OMMUNITIES G ROUP

BROKER SUPPORT SAM PE T R O Si n o VALUA TI O N & R E S E AR C H

BR IT TA NY CA MPBE L L- KO CH DIR E CT OR OF OPE R A T ION S

sky ler WI L SO N CLI E NT R E LA TI O N S M AN AG ER

A L E X PA PA M A R K E T IN G COOR DIN A T OR

THE INVESTMENT

LOUISVILLE, KY

broadleaf arms 4519-4523 BROADLEAF DR, LOUISVILLE, KY

UTILITY REIMBURSEMENT R E N TA L G R O W T H P O T E N T I A L DEVELOPMENT OPPORTUNITY IDEAL LOCATION WITH TOP-NOTCH EMPLOYMENT

Marcus & Millichap is pleased to present Broadleaf Arms, a 77-unit apartments complex in the Pleasure Ridge Park submarket. This property was purchased last year from long term owners of 50+ years. Current ownership has begun carving out a case to increase the bottom line, repositioning the asset to reflect the potential growth with rent increases, utility billbacks, and professional management.

Unit Mix Unit Type

Number of Units

Average Size

In-Place Rents

One Bedroom

53

800

$676

Two Bedroom

24

950

$775

All Units

77

875

$707

INVESTMENT HIGHLIGHTS

BROADLEAF ARMS THE OPPORTUNITY An incoming investor can take advantage of the demand in the submarket and stabilize the property with a strategic marketing initiative using the following strategy: • Utility Transfer: Continue implementing a utility billback for water-sewer, and continue moving electric into tenants’ name upon lease-up and renewals.

• Loss-to-Lease Burn Off: $62/unit/month of loss to lease can be recaptured at lease renewals providing over $800k of value creation when factoring a 7 cap.

• Rental Growth Potential: Current owners purchased from long-term owners of 50+ years.

They have raised rents 15% in June 2022 with rents being well-below market norms at that time. As ownership has focused on the utility billback and electric transfer upon renewals, there is an opportunity for a slight rent push to be more in line with market norms (see competive set).

THE MARKET • Competitors in the immediate submarket are renting on average $925/mo ($845/mo utility adjusted) for 2-bedroom rents.

• Area median income for the St Dennis submarket is on average $55,000, leaving rent to be 19% of household income, well-within the benchmark of investor tenant screening requirements.

• The Pleasure Ridge Park submarket has experienced historically high occupancy, averaging 97.6%, over 220 bps above the Louisville market average. This points to the demand for rental units and further solidifies the opportunity available.

DEAL SUMMARY 68,358 77 847 R EN TABL E S QUA RE FEET

TOTA L UNITS

PROPERTY SUMMARY #1 Bedrooms

53

#2 Bedrooms

24

BROADLEAF ARMS

*

AVG SF

PROPERTY SNAPSHOT

BROADLEAF ARMS Property Name: Property Address: City, State, Zip: County: Year Built/Reno: Number Of Units: Avg Unit Size: Rentable Sqft: Number of Parcels: Lot Size (Acres): # of Buildings: # of Stories: Parking: Heating Cooling Water Heater Wiring Framing: Roofs Exterior of Building: Windows:

Broadleaf Arms 4519-4523 Broadleaf Dr Louisville, KY 40216 Jefferson 1969/2022 77 847 68,358 14 2.8 7 2 Paved Lot Boiler/ Baseboard Heat (2 Buildings) Chiller (1 Building) / Window Units Gas Boiler System Copper Wood Asphalt Shingles Brick Aluminum Frame single pane

UTILITIES Electric: Gas: Water: Sewer: Trash:

Tenant Paid Tenant Paid Owner Paid* Water billback implemented on lease renewals Owner Paid Owner Paid

CASE STUDY

UTILITY REIMBURSEMENT Owners are implenting a $40 Water/Sewer billback on new leases and lease renewals. The schedule below shows an opportunity for an incoming investor to capture over $35,000 of additional income by implementing the billback.

Type 1 Bed 2 Bed Total

Units 53 24 77

WATER REIMBURSEMENT (RUB) Monthly RUB Monthly Income Gross Potential Income $40 $2,120 $25,440 $40 $960 $11,520 $3,080 $36,960

IMPLEMENTATION SCHEDULE Current Potential Annual Income Physical Vacancy % Implemented on New Leases and Lease Renewals Annual Water RUB Income

Year 1 $36,960 5% 75% $26,334

Year 2 $36,960 5% 100% $35,112

ELECTRIC MOVED TO RESIDENTS NAME Electric was initially paid by owners. Over the past 12 months, owners have moved electric into residents’ name on new leases reducing electric expense by over 90% when comparing the T3 average electric expense to the first few months of ownership.

trendline 3-month rolling avg

3 M O N T H R O L L I N G AV G M O N T H LY E L E C T R I C e x p e n s e

LAND DEVELOPMENT OPPORTUNITY

. 8 8 A C R E S AVA I L A B L E F O R A D D I T I O N A L A PA R T M E N T D E V E L O P M E N T

B O U N D A R I E S A R E A P P R O X I M AT E

CASE STUDY

RECENT CAPEX 1. Parking lot 2. new roof on two buildings 3. Security system installed 4. striped lots

3

4

1

1

2 3

4

BROADLEAF ARMS

interior photos

BROADLEAF ARMS

exterior photos

BROADLEAF ARMS

EXTERIOR photos

rent competitors

COMPS

LE AF A

KR

340

*3 4

D E

1

M SUM IT A S

1 BED - $815 2 BED - $975

REN T C OMPAR ABLE S

PT

AP TS

GR

N WOO D

EW

2 BED - $950

THE

341

1 BED - $725 2 BED - $825

1 BED - $795 2 BED - $900

2

HAGBA RD

HAG BAR 0S

4S

RK

S

BR

AD

RM

O

LOCATION

1 BED - $830 2 BED - $999

1

SUMMITT APARTMENTS

2

GREENWOOD PLACE

3

3410 SHAGBARK ROAD

4

3404 SHAGBARK ROAD

ONE BEDROOM Property Ashby Green Apartment Homes Riverport Landing Family Apartments Summit Apartments Broadleaf Arms Pro Forma Greenwood Place Apartments 4806 Saddlebrook Lane Walnut Grove Apartments 3410 Shagbark Broadleaf Arms Average Effective Coventry Commons

Year Built 2014 2019 1973 1969 1994 1960 2003 1970 1969 2009

# of 1 Beds 100 48 24 53 120 12 16 20 53 54

SF 700 850 733 800 700 470 750 850 800 631

Market Rent $1,020.00 $871.00 $830.00 $825.00 $815.00 $750.00 $755.00 $795.00 $675.00 $660.00

Utility Adjustment/Month $15 $55 $55 $15 $55 $0 $15 $85 $55 $55

Net Rent/SF $1.44 $0.96 $1.06 $1.03 $1.09 $1.60 $0.99 $0.84 $0.84 $0.96

Occupancy 95% 97% 100% 95% 100% 95% 98% 100% 83% 100%

TWO BEDROOM Property Ashby Green Apartment Homes Kensington Crawford Crossing Apartments Riverport Landing Family Apartments Summit Apartments Iroquois Terrace Greenwood Place Apartments 3404 Shagbark Rd Broadleaf Arms Pro Forma Walnut Grove Apartments 4910-4914 Saddlebrook 4806 Saddlebrook Lane 3410 Shagbark Safe Harbor Coventry Commons Braodleaf Arms Average Effective

Year Built 2014 1974 2011 2019 1973 1991 1994 1970 1969 2003 1970 1960 1970 2004 2009 1969

# of 2 Beds 144 136 30 144 120 32 160 14 24 96 16 2 10 40 117 24

SF 1157 825 963 1072 846 1100 1107 900 950 859 996 850 750 950 817 950

Market Rent $1,180.00 $1,094.00 $1,029.00 $1,046.00 $999.00 $975.00 $975.00 $950.00 $935.00 $880.00 $850.00 $850.00 $900.00 $834.00 $798.00 $775.00

Utility Adjustment/Month $15 $15 $0 $65 $65 $65 $65 $65 $15 $15 $0 $0 $105 $65 $65 $65

Net Rent/SF $1.01 $1.31 $1.07 $0.92 $1.10 $0.83 $0.82 $0.98 $0.98 $1.01 $0.85 $1.00 $1.06 $0.81 $0.90 $0.82

Occupancy 95% 100% 94% 97% 100% 100% 95% 93% 95% 98% 95% 95% 100% 100% 100% 83%

SUMMIT APARTMENTS UNITS YEAR BUILT OCCUPANCY UNIT MIX 1 Bed 2 Bed

# Units 24

Unit SF 733

120

846

144 1973/ UNDER RENO 100% Rent Rent/SF $830 $1.13 $999

$1.18

AMENITIES Laundry Facilities Pool Maintenance on site Property Manager on Site Pet Play Area UNIT FEATURES Dining Room Tub/Shower Dishwasher Disposal Walk-In Closets Washer/Dryer Hookup High Speed Internet Access Window Coverings Air Conditioning Kitchen Cable Ready

GREENWOOD PLACE APTS AMENITIES Clubhouse Pool Laundry Facilities UNIT FEATURES Air Conditioning Disposal Cable Ready Heating Carpet High Speed Internet Access Ceiling Fans Walk-In Closets Dishwasher

UNITS YEAR BUILT OCCUPANCY UNIT MIX 1 Bed 2 Bed

# OF UNITS 120

SQFT 700

RENT $815

280 1994 100% RENT/SF $1.16

160

1,107

$975

$0.88

3410 SHAGBARK RD UNITS YEAR BUILT OCCUPANCY UNIT MIX 1 Bed 2 Bed

# Units 20

Unit SF 850

Rent $795

30 1979 100% Rent/SF $0.94

10

750

$900

$1.20

UNIT FEATURES Air Conditioning Range Kitchen Refrigerator UTILITIES Owner Pays Utilities

3404 SHAGBARK RD UNIT FEATURES Air Conditioning Range Kitchen Refrigerator UTILITIES Owner Pays Water

UNITS YEAR BUILT OCCUPANCY UNIT MIX 2 Bed

# OF UNITS 14

SQFT 900

RENT $950

14 1970 93% RENT/SF $1.06

the financials

BROADLEAF ARMS - FINANCIALS

UNIT 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

UNIT TYPE

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

53 Units 24 Units

800 SF 950 SF

42,400 SF 22,800 SF

$675.78 $774.89

$0.84 $0.82

$35,816 $18,597

$725.00 $825.00

$0.91 SF $0.87 SF

$38,425 $19,800

$825.00 $935.00

$1.03 SF $0.98 SF

$43,725 $22,440

Totals / Wtd. Averages

77 Units

847 SF

65,200 SF

$706.67

$0.83 SF

$54,414

$756.17

$0.89 SF

$58,225

$859.29

$1.01 SF

$66,165

VACANCY

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

NEW LEASES PRICE/SQFT

APR 22 - FEB 23

LEASING TRENDS

APR 22 - FEB 23

BROADLEAF ARMS - FINANCIALS

UNIT 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

UNIT TYPE

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

53 Units

800 SF

42,400 SF

$675.78

$0.84 SF

$35,816

$725.00

$0.91 SF

$38,425

$825.00

$1.03 SF

$43,725

Totals / Wtd. Averages

53 Units

800 SF

42,400 SF

$675.78

$0.84 SF

$35,816

$725.00

$0.91 SF

$38,425

$825.00

$1.03 SF

$43,725

Two Bedroom 2BR/1BA

24 Units

950 SF

22,800 SF

$774.89

$0.82 SF

$18,597

$825.00

$0.87 SF

$19,800

$935.00

$0.98 SF

$22,440

Totals / Wtd. Averages

24 Units

950 SF

22,800 SF

$774.89

$0.82 SF

$18,597

$825.00

$0.87 SF

$19,800

$935.00

$0.98 SF

$22,440

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

GROSS POTENTIAL RENT

UNIT RENTS

O P E R AT I N G E X P E N S E S

UNIT DISTRIBUTION

BROADLEAF ARMS - FINANCIALS

L E A S E E X P I R AT I O N S C H E D U L E

LOss TO LEASE BURN OFF

LOSS TO LEASE BURN-OFF

INCOME EXPENSE

BROADLEAF ARMS - FINANCIALS

INCOME & EXPENSES

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Late Charges Miscellaneous Charges Electric Reimbursement Media/Licensing Contract Water Reimbursement Non Refundable Fees Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Employee Unit Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2021 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Gas Gas Vacant Water & Sewage Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control 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

$696,900 T2 ($37,602) T2 $659,298 $19,180 $10,922 $9,076 $6,083 $4,846 $2,990 $53,456 $712,754 ($115,419) ($8,700) ($12,955) ($23,118) $552,562

CURRENT RENT ROLL: AS OF JULY 19, 2023 INCOME & EXPENSES: JULY 2022 - JUNE 2023 % of GPR

5.40%

YEAR 1

Per Unit 9,051 (488) 8,562

$793,980 ($39,699) $754,281

% of GPR

$6,713 $11,249 $9,348 $6,265 $4,992 $3,080 $42,017 $796,298 ($37,714) $0 ($7,543) ($7,543) $743,499

Note 2 0.89% 1.49% 1.24% 0.83% 0.66% 0.41% 5.57% 5.00% 0.00% 1.00% 1.00% 88.00%

87 146 121 81 65 40 546 10,342 (490) 0 (98) (98) 9,656

5.00%

Per Unit 10,311 (516) 9,796

T12 T12 T3 T12 T3 T12

2.91% 1.66% 1.38% 0.92% 0.74% 0.45% 8.11%

T2 T2 T2 T2

17.51% 1.32% 1.96% 3.51% 70.31%

249 142 118 79 63 39 694 9,257 (1,499) (113) (168) (300) 7,176

$19,888 Auditor $43,213 $63,101 $22,062 T12

% of EGI 3.60% 7.82% 11.42% 3.99%

Per Unit 258 561 819 287

$19,888 $43,213 $63,101 $30,800

2.67% 5.81% 8.49% 4.14%

% of EGI 258 561 819 400

$12,123 $11,939 $37,339 $2,433 $79,772 $9,408 $153,015 $238,178

Note 3 Note 3 T12 T12 T12 T12

2.19% 2.16% 6.76% 0.44% 14.44% 1.70% 27.69% 43.10%

157 155 485 32 1,036 122 1,987 3,093

$7,255 $6,363 $38,086 $2,482 $50,820 $9,596 $114,602 $208,503

0.98% Note 5 0.86% 5.12% 0.33% Note 8 6.84% 1.29% 15.41% 28.04%

94 83 495 32 660 125 1,488 2,708

$5,128 $0 $18,392 $15,749 $39,269 $40,351 $11,636 $18,787 $1,463 $17,673 $22,800 $2,176 $19,635 $173,790 $411,968 $140,594

Note 4

0.93% 0.00% 3.33% 2.85% 7.11% 7.30% 2.11% 3.40% 0.26% 3.20% 4.13% 0.39% 3.55% 31.45% 74.56% 25.44%

67 0 239 205 510 524 151 244 19 230 296 28 255 2,257 5,350 1,826

$0 $2,695 $11,550 $1,925 $16,170 $46,200 $5,775 $69,300 $7,700 $11,550 $29,740 $1,925 $20,028 $208,388 $416,891 $326,608

Note 4 0.00% Note 9 0.36% Note 9 1.55% 0.26% 2.17% 6.21% 0.78% 9.32% 1.04% 1.55% 4.00% 0.26% 2.69% 28.03% 56.07% 43.93%

0 35 150 25 210 600 75 900 100 150 386 25 260 2,706 5,414 4,242

T12 T12 T12 T12 T12 T12 T12 T12 T12 Note 1

YEAR 2

$817,799 ($16,356) $801,443

YEAR 3

% of GPR 2.00% 0.86% 1.45% 1.20% 0.81% 0.64% 0.40% 5.40%

#

Per Unit 10,621 (212) 10,408

% of GPR

$842,333 ($16,847) $825,487 $7,122 $11,934 $9,918 $6,647 $5,296 $3,267 $44,576 $870,063 ($41,274) $0 ($8,255) ($8,255) $812,279

5.00% 0.00% 1.00% 1.00% 91.00%

92 155 129 86 69 42 579 11,300 (536) 0 (107) (107) 10,549

2.00% 0.86% 1.45% 1.20% 0.81% 0.64% 0.40% 5.40%

Per Unit 10,939 (219) 10,721

$6,914 $11,587 $9,629 $6,453 $5,141 $3,172 $43,278 $844,721 ($40,072) $0 ($8,014) ($8,014) $788,620

5.00% 0.00% 1.00% 1.00% 91.00%

90 150 125 84 67 41 562 10,970 (520) 0 (104) (104) 10,242

$19,888 $43,213 $63,101 $31,416

% of EGI 2.52% 5.48% 8.00% 3.98%

Per Unit 258 561 819 408

$19,888 $43,213 $63,101 $32,044

% of EGI 2.52% 5.48% 8.00% 4.06%

Per Unit 258 561 819 416

$7,400 $6,490 $38,848 $2,531 $51,836 $9,788 $116,894 $211,411

0.94% 0.82% 4.93% 0.32% 6.57% 1.24% 14.82% 26.81%

96 84 505 33 673 127 1,518 2,746

$7,548 $6,620 $39,625 $2,582 $52,873 $9,984 $119,232 $214,378

0.96% 0.84% 5.02% 0.33% 6.70% 1.27% 15.12% 27.18%

98 86 515 34 687 130 1,548 2,784

$0 $2,749 $11,781 $1,964 $16,493 $47,124 $5,891 $70,686 $7,854 $11,781 $31,545 $1,964 $20,428 $213,765 $425,177 $363,443

0.00% 0.35% 1.49% 0.25% 2.09% 5.98% 0.75% 8.96% 1.00% 1.49% 4.00% 0.25% 2.59% 27.11% 53.91% 46.09%

0 36 153 26 214 612 77 918 102 153 410 26 265 2,776 5,522 4,720

$0 $2,804 $12,017 $2,003 $16,823 $48,066 $6,008 $72,100 $8,011 $12,017 $32,491 $2,003 $20,837 $218,356 $432,734 $379,545

0.00% 0.36% 1.52% 0.25% 2.13% 6.10% 0.76% 9.14% 1.02% 1.52% 4.00% 0.25% 2.64% 27.57% 54.87% 48.13%

0 36 156 26 218 624 78 936 104 156 410 26 271 2,824 5,620 4,929

1 2 3 4 5 6 7 8 9

UNDERWRITING NOTES

NOTE Replacement & Reserves: added based on market norm of $255 per unit per year Late Charges: Not annualized. Normalized down 'Year 1' to 35% of trailing Bad Debt: Not annualized Electric: T3'd showing normal electric once elctric put in tenants name Gas: T9 Normalized Security: One-time expense, per owner conversation. Removed from trailing Water/Sewer Reimbursement: $40/month RUB at 95% occup, implemented on lease Water: Normalized down 'Year 1' Snow/Land: Consolidated on trailing, broken out starting 'Year 1'

INCOME EXPENSE

BROADLEAF ARMS - FINANCIALS

CASH FLOW

CURRENT

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

YE FEB-2024

YE JAN-2025

YE JAN-2026

YE JAN-2027

YE JAN-2028

YE JAN-2029

YE JAN-2030

YE JAN-2031

YE JAN-2032

YE JAN-2033

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

$696,900 ($37,602) $659,298 $53,456

$793,980 ($39,699) $754,281 $42,017

$817,799 ($16,356) $801,443 $43,278

$842,333 ($16,847) $825,487 $44,576

$867,603 ($17,352) $850,251 $45,468

$893,631 ($17,873) $875,759 $46,377

$920,440 ($18,409) $902,032 $47,304

$948,054 ($18,961) $929,093 $48,251

$976,495 ($19,530) $956,965 $49,216

$1,005,790 ($20,116) $985,674 $50,200

$1,035,964 ($20,719) $1,015,245 $51,204

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

$712,754 ($115,419) ($8,700) ($12,955) ($23,118) $552,562

$796,298 ($37,714) $0 ($7,543) ($7,543) $743,499

$844,721 ($40,072) $0 ($8,014) ($8,014) $788,620

$870,063 ($41,274) $0 ($8,255) ($8,255) $812,279

$895,719 ($42,513) $0 ($8,503) ($8,503) $836,201

$922,136 ($43,788) $0 ($8,758) ($8,758) $860,833

$949,336 ($45,102) $0 ($9,020) ($9,020) $886,194

$977,343 ($46,455) $0 ($9,291) ($9,291) $912,307

$1,006,181 ($47,848) $0 ($9,570) ($9,570) $939,193

$1,035,874 ($49,284) $0 ($9,857) ($9,857) $966,877

$1,066,448 ($50,762) $0 ($10,152) ($10,152) $995,381

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

$63,101 $22,062 $153,015 $39,269 $40,351 $11,636 $18,787 $1,463 $17,673 $22,800 $2,176 $19,635 $411,968

$63,101 $30,800 $114,602 $16,170 $46,200 $5,775 $69,300 $7,700 $11,550 $29,740 $1,925 $20,028 $416,891

$63,101 $31,416 $116,894 $16,493 $47,124 $5,891 $70,686 $7,854 $11,781 $31,545 $1,964 $20,428 $425,177

$63,101 $32,044 $119,232 $16,823 $48,066 $6,008 $72,100 $8,011 $12,017 $32,491 $2,003 $20,837 $432,734

$64,363 $32,685 $121,617 $17,160 $49,028 $6,128 $73,542 $8,171 $12,257 $33,448 $2,043 $21,254 $441,695

$65,650 $33,339 $124,049 $17,503 $50,008 $6,251 $75,013 $8,335 $12,502 $34,433 $2,084 $21,679 $450,846

$66,963 $34,006 $126,530 $17,853 $51,009 $6,376 $76,513 $8,501 $12,752 $35,448 $2,125 $22,112 $460,188

$68,303 $34,686 $129,061 $18,210 $52,029 $6,504 $78,043 $8,671 $13,007 $36,492 $2,168 $22,554 $469,728

$69,669 $35,380 $131,642 $18,574 $53,069 $6,634 $79,604 $8,845 $13,267 $37,568 $2,211 $23,006 $479,468

$71,062 $36,087 $134,275 $18,946 $54,131 $6,766 $81,196 $9,022 $13,533 $38,675 $2,255 $23,466 $489,413

$72,483 $36,809 $136,960 $19,325 $55,213 $6,902 $82,820 $9,202 $13,803 $39,815 $2,301 $23,935 $499,568

NET OPERATING INCOME

$140,594

$326,608

$363,443

$379,545

$394,506

$409,987

$426,005

$442,579

$459,725

$477,464

$495,813

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

13.93% 5.00% 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

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

5.00% 0.00% 1.00% 1.00% 7.00%

Assessed Value $122,550 $232,400 $38,500 $232,400 $34,650 $232,400 $34,650 $452,110 $34,650 $34,650 $20,000 $20,000 $20,000 $20,000 $1,528,960

Tax Rate 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900 0.012900

Tax Breakdown Property Address 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr 4519-4527 Broadleaf Dr Total

Parcel ID Year Built 139-800-010-000 1969 139-800-020-000 1969 139-800-030-000 1969 139-800-040-000 1969 139-800-050-000 1969 139-800-060-000 1969 139-800-070-000 1969 139-800-080-000 1969 139-800-090-000 1969 139-800-110-000 1969 139-800-130-000 1969 139-800-140-000 1969 139-800-150-000 1969 139-800-120-000 1969

Acres

Market Value $122,550 $232,400 $38,500 $232,400 $34,650 $232,400 $34,650 $452,110 $34,650 $34,650 $20,000 $20,000 $20,000 $20,000 $1,528,960

Taxes Payable $1,586.90 $3,009.34 $498.55 $3,099.34 $448.67 $3,009.34 $448.67 $5,854.38 $448.67 $448.67 $258.98 $258.98 $258.98 $258.98 $19,888.45

Land Use Code

local market

LOUISVILLE, Kentucky Situated on the banks of the Ohio River, Louisville is a progressive community of 1.3 million people. Louisville is one of the most uniquely authentic destinations in the world. It is Kentucky’s largest city and offers hundreds of one-of-a-kind attractions. Whether you are north, south, east, or west – Louisville offers a slew of attractions and historic architecture in every direction. Three of the state’s six Fortune 500 companies call Louisville home – Humana, Kindred Health, and Yum! Brands.

The area provides an attractive business environment for companies due to its location and low cost of doing business, while allowing employees to enjoy a relatively affordable place to live. The economy has transitioned from traditional manufacturing and shipping to health-

care, tourism, and technology. Tourism in the state of Kentucky has a $3.5 billion economic impact from Louisville alone. While the economic impact is very significant, the results are even more so, as they positively affect the quality of life in Louisville. Through maintaining its commitment to the tourism industry, Louisville can enrich and nurture its infrastructure, allowing it to consistently rank as one of the top cities in the nation for quality of life. Foodies and food trucks, brew masters and bourbon, sports, tradition, and transformation - it’s all happening in Louisville. With such a vibrant quality of life, Louisville is a great place to call home.

EMPLOYERS IN THE NEWS

A M A Z O N L A S T M I L E D E L I V E R Y S T A T I O N

•

Amazon building new $5.5MM last-mile delivery station at prime Louisville property adding close to 2,000 new jobs (March 2021).

•

GE Appliances completes $60MM expansion adding 245 new jobs (July 2021)

•

Ge Appliances set to invest $450MM at its Appliance park in the next 2 years adding over 2,000 new jobs (Oct 2021)

•

QSR Automations opens new global headquarters in Louisville, KY (Nov 2021)

•

KCC Manufacturing breaks ground on 700-job operation in Shelby County (Nob 2021)

•

Republic National Distributing Co. breaks ground on a relocation and expansion project that will create 30 full-time jobs with a $50 million investment (Sep 2021).

•

Baptist Health to build $42M rehabilitation hospital in Jeffersontown (Nov 2021)

the ECONOMY • Prior to the pandemic, Louisville/Jeffer- • At the same time, the metro recorded a son County’s real gross metropolitan prod- net gain of 22,600 jobs, expanding the emuct grew at an average annual rate of 1.8% ployment base 3.4%. from 2015 to 2019. During that same five- • During the past year, job gains in Louyear period, job growth averaged 1.5% isville/Jefferson County were most proannually, with roughly 9,800 jobs added nounced in the Professional/Business Seron average each year. In 2020, COVID· 19 vices sector followed by Education/Health mitigation measures and limited business Services. activity caused the local economy to con- • Despite job losses stemming from the tract as much as 9.0% year-over-year in pandemic, Louisville/Jefferson County’s 2nd quarter.

current employment base now sits rough-

• In 3rd quarter 2022, the metro’s infla- ly 16,600 jobs or about 3% above the tion-adjusted economic output was un- pre-pandemic level in February 2020. changed year-over-year.

D E M O G R A P H I C S : S TAT I S T I C S Population: 1,300,000

Msa median hhi: $57,405

Msa median home value: $173,500

Average occupancy: 96.4%

Median age: 39.2

1 - Year growth: 1.77%

1 - Year growth: 4.83%

Rent growth:6%

S U P P LY New apartment completions in Louisville/Jefferson County were moderate recently, as 1.958 units delivered in the year-ending 3rd quarter 2022. Completions over the past year expanded the local inventory base 2.1%. In the past year, supply was greatest in Northwest Louisville and Northeast Louisville. At the end of 3rd quarter 2022, there were 1,896 units under construction with 1,516 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be concentrated in Northwest Louisville and Southwest Louisville.

O C C U PA N C Y Occupancy in the past year, occupancy lost 0.6 points, with the 3rd quarter 2022 rate landing at 95.8%. Looking at product classes in Louisville/Jefferson County, 3rd quarter 2022 occupancy registered at 94.8% in Class A units, 95.8% in Class B units and 97.0% in Class C units.

Among submarkets, 3rd quarter 2022 occupancy was strongest in Northwest Louisville and Southeast Louisville. The weakest readings were seen in Central Louisville and Southwest Louisville. Over the past five years, Northwest Louisville generally led for occupancy.

During the coming year, occupancy in Louisville/Jefferson County is expected to register around 95.5%.

ATTRACTIONS

LOUISVILLE SLUGGER Batter up! It takes a special place to craft the #1 Bat in Major League Baseball. At Louisville Slugger Museum & Factory, experience history-in-the-making as you stroll through the actual factory where world-famous Louisville Slugger bats are created.

The award-winning factory tour is a highlight of the visit here, but there’s plenty more to enjoy along with it.

EVAN WILLAMS BOURON Located on Louisville’s historic “Whiskey Row”, the Evan Williams Bourbon Experience features an artisanal distillery, tours, educational tastings, and more!

In 1783, our namesake opened Kentucky’s First Distillery on the banks of the Ohio River. Many years and barrels later, we still produce Bourbon the right way, using the same time-honored methods.

FOURTH STREET LIVE Fourth Street Live! is Louisville’s premier dining and entertainment destination, located in the heart of downtown Louisville, Kentucky. A short walk from historic downtown hotels, the Kentucky International Convention Center, Waterfront Park, the KFC YUM Center, Slugger Field, and much more, Fourth Street Live!

ATTRACTIONS

the bourbon business We are a city of hot browns and Ali, riverfront parks and Slugger bats. We throw parties for horse races and pronounce Louisville like we’ve already had a taste of bourbon.

We are a place of unique offerings and world-class attractions – and our Bourbon District is no exception.

Located in Downtown Louisville, the Bourbon District is a walkable urban experience for anyone looking for a taste of Kentucky. In the Bourbon District, you’re never more than 5 minutes away from the next attraction, so planning that group tour or birthday celebration just got a lot easier.

Attractions that will quench your thirst for a taste of Kentucky.

Enjoy the Bourbon District, Downtown’s unique walkable experience. Whether you’re a Louisville native on an afternoon stroll, in town on business with a couple hours to spare, or a bourbon connoisseur looking to expand your palate, our Bourbon District distilleries will transport you through generations of history, community, and passion.

kentucky d e r by

interesting

Located in South Louisville, Churchill Downs is a Thoroughbred racetrack known for hosting the annual Kentucky Derby. It is the world’s most legendary racetrack. The first Kentucky Derby and Kentucky Oaks were both held in 1875, which was the year that the racetrack opened. The racetrack at Churchill Downs is 147 acres and features a seven-furlong turf racecourse and a one-mile dirt, oval racetrack.

The racetrack can accommodate over 165,000 guests on Derby Day.

147

s tat s 165,000 FACILITY CAPACITY ACRES OCCUPIED BY RACETRACK $373M DIRECT ECONOMIC IMPACT 146 YEARS RUNNING

visit adgmultifamily.com to learn more.