BROADWAY AVE APARTMENTS 2023 OM OFFERING MEMORANDUM 305-315 BROADWAY AVE, TROTWOOD, OH
GLOBAL REACH, LOCAL EXPERTISE
$86.3B
VALUE OF RECENTLY CLOSED TRANSACTIONS
12,272
CLOSED SALES IN MOST RECENT YEAR
$12.8B
TOTAL VALUE OF RECENT LISTINGS
2,143
CLOSED FINANCINGS IN MOST RECENT YEARS
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
CINCINNATI
DAYTON
LEXINGTON LOUISVILLE
YOUR TEAM
JORDAN DICKMAN
FIRST VICE PRESIDENTS DIRECTOR, NMHG
CORPORATE SUPPORT
LIZ POPP
MIDWEST OPERATIONS MANAGER
NICK ANDREWS
FIRST VICE PRESIDENTS DIRECTOR, NMHG
JOSH CARUANA
VICE PRESIDENT
REGIONAL MANAGER
INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY
AUSTIN SUM
SENIOR INVESTMENT ASSOCIATE
JOHN SEBREE
SENIOR VICE PRESIDENT
BRIAN JOHNSTON
INVESTMENT ASSOCIATE
AUSTIN Hall
INVESTMENT ASSOCIATE
ALDEN SIMMS
INVESTMENT ASSOCIATE
BROKER SUPPORT
SAM PETROSino
VALUATION & RESEARCH
BRETT MARTIN
INTERNAL ACCOUNTANT
NATIONAL DIRECTOR
NATIONAL MULTI HOUSING GROUP
MICHAEL GLASS
SENIOR VICE PRESIDENT
MIDWEST DIVISION MANAGER
NATIONAL DIRECTOR, MANUFACTURED HOME COMMUNITIES GROUP
BRITTANY CAMPBELL-KOCH
DIRECTOR OF OPERATIONS
ALEX PAPA
MARKETING COORDINATOR
RECENT CAPEX
Community CapEx:
• New Roofs
• New Windows
• Balconies Reinforced
• New HVAC • New Electric • New Plumbing Pipes
• Units Individually Metered for Water & Sewer
• Hallways - LVP floors, lights & Paint
• Exterior painting
Unit CapEx: • LVP Flooring Throughout • New Kitchen Cabinets and Hardware • Granite Kitchen Countertops • Stainless Steel Appliances • New Sink Facets and Plumbing Connections
• Accent LED Lighting Throughout
• Bathroom Vanities & Lighting • New Tub & Tile Surround • New Toilet • New Interiors Doors
$800,000 Spent over Past Two Years
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present Broadway Ave Apartments, a 16-unit apartment complex located in Trotwood, OH, on the northwest side of Dayton. The community consists of sixteen two-bedroom, two-bathroom apartments. The asset is currently 100% occupied and has 15,200 rentable sqft. on a total of 0.74 acres. Broadway Ave Apartments offers incoming investors a completely renovated asset with all deferred maintenance items addressed, ideal utility set up, and market leading finishes and unit features.
Completely Renovated Asset – Broadway Ave Apartments has been completely renovated with new plumbing, electric, windows, roofs and finishes. This includes LVP floors, stainless steel appliances, and granite countertops. This provides an incoming investor with the ability to keep costs lower as all deferred maintenance items have been addressed.
Utilities Setup – Broadway Ave Apartments has PTAC systems to heat and cool each unit. These run off electricity that the tenants cover. Additionally, they have submetered for water, so the tenants cover all water/sewer usage. This helps to lower fixed costs and increase NOI for the property.
Market Leading Finishes and Unit Features – Broadway Ave Apartments has market finishes in each unit including LVP floors, stainless steel appliances, granite countertops and tile bathrooms. Each unit is 950 sqft, is two-bedroom, and has washer/dryer hookups. These features are highly desirable in the submarket, which will help to keep occupancy high and could help push rents to the top of the market – closer to $1,100/month.
snapshots BROADWAY AVE APARTMENTS
Broadway Ave Apartments $894 Stoneridge Apts $850 Greenglen Apts $992 Broadmoor Apts $950 Bloomfield Apts $1,174 Salem Woods $999 Trotwood Villas $850 Fox Run $1,149 Westbrooke Village $975 Bella Meadows $985
rent sort TWO bedroom
Bedroom Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF Garden Woods 1973 144 1100 $1,200 $1.09 Bloomfield 1972 160 1000 $1,174 $1.17 Fox Run 1998 144 909 $1,149 $1.26 Subject Pro Forma 1970 16 950 $1,100 $1.16 Salem Woods 1972 233 950 $999 $1.05 Greenglen 1983 78 864 $992 $1.15 Belle Meadows Suites 1987 160 920 $985 $1.07 Broadmoor 1968 112 805 $950 $1.18 Subject Average Effective 1970 16 950 $894 $0.94 Westbrooke Village 1974 312 800 $875 $1.09 Stoneridge 1987 150 878 $850 $0.97 Trotwood Villas 1970 32 950 $850 $0.89 Market Average 1977 130 923 $1,001 $1.09 SECTION 2LOCAL COMPETITORS
Two
SECTION 2 - LOCAL COMPETITORS
UNITS 233 YEAR BUILT 1972 OCCUPANCY 91.4% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 56 680 $859 $1.26 Two Bedroom 160 950 $999 $1.05 Three Bedroom 17 1059 $1,387 $1.31 UNITS 160 YEAR BUILT 1972 OCCUPANCY 83.8% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 40 850 $956 $1.12 Two Bedroom 104 1000 $1,174 $1.17 Three Bedroom 16 1300 $1,324 $1.02
ROAD
DRIVE salem woods bloomfield apartments
5291 WOOD CREEK
4973 BLOOMFIELD
UNITS 32 YEAR BUILT 1970 OCCUPANCY 87.5% UNIT MIX UNITS SQFT RENT RENT/SF Two Bedroom 32 950 $850 $0.89 UNITS 112 YEAR BUILT 1968 OCCUPANCY 98.2% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 32 675 $860 $1.27 Two Bedroom 80 805 $950 $1.18 421 N BROADWAY ST 400 BURMAN AVE trotwood villas broadmoor apartments SECTION 2 - LOCAL COMPETITORS
BROADWAY AVE APARTMENTS
UNIT MIX BREAKDOWN
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 Two Bedroom 2BR/1BA 16 Units 950 SF 15,200 SF $893.75 $0.94 SF $14,300 $900.00 $0.95 SF $14,400 $1,100.00 $1.16 SF $17,600 Totals / Wtd. Averages 16 Units 950 SF 15,200 SF $893.75 $0.94 SF $14,300 $900.00 $0.95 SF $14,400 $1,100.00 $1.16 SF $17,600 Summary Two Bedroom 16 Units 950 SF 15,200 SF $893.75 $0.94 $14,300 $900.00 $0.95 SF $14,400 $1,100.00 $1.16 SF $17,600 Totals / Wtd. Averages 16 Units 950 SF 15,200 SF $893.75 $0.94 SF $14,300 $900.00 $0.95 SF $14,400 $1,100.00 $1.16 SF $17,600
SECTION 3 - FINANCIALS
UNIT RENTS
UNIT DISTRIBUTION
CURRENT RENT ROLL: AS OF SEPTEMBER 15, 2023 INCOME AND EXPENSES: ASSUMED
BROADWAY AVE APARTMENTS
GROSS POTENTIAL RENT % of GPR Per Unit All Units at Market Rent $172,800 RR 10,800 Gain (Loss) to Lease ($1,200) 0.69% (75) GROSS SCHEDULED RENT $171,600 RR 10,725 Other Income Internet Income $9,120 Note 3 5.31% 570 Total Other Income $9,120 5.31% 570 GROSS POTENTIAL INCOME $180,720 11,295 Physical Vacancy ($8,580) Note 2 5.00% (536) Bad Debt $0 0.00% 0 EFFECTIVE GROSS INCOME $172,140 94.31% 10,759 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit 2022 Taxes Paid $11,091 Auditor 6.44% 693 Adjustment for Sale $4,335 Note 4 2.52% 271 Total Real Estate Taxes $15,426 8.96% 964 Insurance $6,400 Note 2 3.72% 400 Utilities Electric $600 Note 2 0.35% 38 Trash Removal $1,200 Note 2 0.70% 75 Total Utilities $1,800 1.05% 113 Total Non-Controllable $23,626 13.72% 1,477 CONTROLLABLE Contract Services Snow Removal $560 Note 2 0.33% 35 Landscaping/Grounds $1,600 Note 2 0.93% 100 Pest Control $560 Note 2 0.33% 35 Total Contract Services $2,720 1.58% 170 Repairs & Maintenance $8,000 Note 2 4.65% 500 Marketing & Promotion $800 Note 2 0.46% 50 On-Site Payroll $12,800 Note 2 7.44% 800 General & Administrative $1,600 Note 2 0.93% 100 Management Fee $13,771 Note 2 8.00% 861 Internet $3,000 Note 3 1.74% 188 Replacement & Reserves $4,080 Note 1 2.37% 255 Total Controllable $46,771 27.17% 2,923 TOTAL EXPENSES $70,397 40.90% 4,400 NET OPERATING INCOME $101,743 59.10% 6,359 EXPENSE INCOME
# NOTE
UNDERWRITING NOTES
1 Replacement & Reserves: added based on market norm of $255 per unit per year
2 Added based on market norms: Property was fully vacated and renovated, first 8 units received COO in April, last 8 in August
3 Internet Income/Expense: per conversation with owner
4 Tax Adjustment: Updated based on auditors new 2023 value
YEAR 1 POTENTIAL SALE YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit $211,200 13,200 $217,536 13,596 $224,062 14,004 ($4,224) 2.00% (264) ($4,351) 2.00% (272) ($4,481) 2.00% (280) $206,976 12,936 $213,185 13,324 $219,581 13,724 $9,394 4.54% 587 $9,675 4.54% 605 $9,966 4.54% 623 $9,394 4.54% 587 $9,675 4.54% 605 $9,966 4.54% 623 $216,370 13,523 $222,861 13,929 $229,547 14,347 ($10,349) 5.00% (647) ($10,659) 5.00% (666) ($10,979) 5.00% (686) ($2,070) 1.00% (129) ($2,132) 1.00% (133) ($2,196) 1.00% (137) $203,951 92.00% 12,747 $210,070 92.00% 13,129 $216,372 92.00% 13,523 % of EGI % of EGI Per Unit % of EGI $11,091 5.44% 693 $11,091 5.28% 693 $11,091 5.28% 693 $4,335 2.13% 271 $4,335 2.06% 271 $4,335 2.06% 271 $15,426 7.56% 964 $15,426 7.34% 964 $15,426 7.34% 964 $6,400 3.14% 400 $6,528 3.11% 408 $6,659 3.17% 416 $612 0.30% 38 $624 0.30% 39 $637 0.30% 40 $1,224 0.60% 77 $1,248 0.59% 78 $1,273 0.61% 80 $1,836 0.90% 115 $1,873 0.89% 117 $1,910 0.91% 119 $23,662 11.60% 1,479 $23,826 11.34% 1,489 $23,994 11.42% 1,500 $560 0.27% 35 $571 0.27% 36 $583 0.28% 36 $1,600 0.78% 100 $1,632 0.78% 102 $1,665 0.79% 104 $560 0.27% 35 $571 0.27% 36 $583 0.28% 36 $2,720 1.33% 170 $2,774 1.32% 173 $2,830 1.35% 177 $8,000 3.92% 500 $8,160 3.88% 510 $8,323 3.96% 520 $800 0.39% 50 $816 0.39% 51 $832 0.40% 52 $12,800 6.28% 800 $13,056 6.22% 816 $13,317 6.34% 832 $1,600 0.78% 100 $1,632 0.78% 102 $1,665 0.79% 104 $16,316 8.00% 1,020 $16,806 8.00% 1,050 $17,310 8.00% 1,050 $3,008 1.47% 188 $3,068 1.46% 192 $3,130 1.49% 196 $4,162 2.04% 260 $4,245 2.02% 265 $4,330 2.06% 271 $49,406 24.22% 3,088 $50,557 24.07% 3,160 $51,736 24.39% 3,202 $73,067 35.83% 4,567 $74,383 35.41% 4,649 $75,731 36.05% 4,733 $130,884 64.17% 8,180 $135,686 64.59% 8,480 $140,641 66.95% 8,790
CASH FLOW
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 5 YE SEP-2024 YE SEP-2025 YE SEP-2026 YE SEP-2027 YE SEP-2028 GROSS POTENTIAL RENT All Units at Market Rent $172,800 $211,200 $217,536 $224,062 $230,784 $237,707 $244,839 $252,184 Gain (Loss) to Lease ($1,200) ($4,224) ($4,351) ($4,481) ($4,616) ($4,754) ($4,897) ($5,044) GROSS SCHEDULED RENT $171,600 $206,976 $213,185 $219,581 $226,168 $232,953 $239,942 $247,140 GROSS POTENTIAL INCOME $180,720 $216,370 $222,861 $229,547 $236,333 $243,322 $250,518 $257,927 Physical Vacancy ($8,580) ($10,349) ($10,659) ($10,979) ($11,308) ($11,648) ($11,997) ($12,357) Bad Debt $0 ($2,070) ($2,132) ($2,196) ($2,262) ($2,330) ($2,399) ($2,471) EFFECTIVE GROSS INCOME $172,140 $203,951 $210,070 $216,372 $222,763 $229,344 $236,121 $243,099 Real Estate Taxes $15,426 $15,426 $15,426 $15,426 $15,734 $16,049 $16,370 $16,697 Insurance $6,400 $6,400 $6,528 $6,659 $6,792 $6,928 $7,066 $7,207 Utilities $1,800 $1,836 $1,873 $1,910 $1,948 $1,987 $2,027 $2,068 Contract Services $2,720 $2,720 $2,774 $2,830 $2,886 $2,944 $3,003 $3,063 Repairs & Maintenance $8,000 $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 Marketing & Promotion $800 $800 $816 $832 $849 $866 $883 $901 On-Site Payroll $12,800 $12,800 $13,056 $13,317 $13,583 $13,855 $14,132 $14,415 General & Administrative $1,600 $1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 Management Fee $13,771 $16,316 $16,806 $17,310 $17,821 $18,348 $18,890 $19,448 Replacement & Reserves $4,080 $4,162 $4,245 $4,330 $4,416 $4,505 $4,595 $4,687 TOTAL EXPENSES $70,397 $73,067 $74,383 $75,731 $77,410 $79,129 $80,886 $82,685 NET OPERATING INCOME $101,743 $130,884 $135,686 $140,641 $145,353 $150,216 $155,235 $160,414 INCOME EXPENSE
BROADWAY AVE APARTMENTS
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 INCOME Gross Potential Rent 22.22% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 2.00% 2.00% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% EXPENSES Expenses 2.00% 2.00% 2.00% 2.00% Management Fee** 8.00% 8.00% 8.00% 8.00% 8.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 1.00% 1.00% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 6.00% 6.00% 6.00% 6.00% 6.00%
RELATIVE LOCATION
DAYTON MARKET
• Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.4% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually, with roughly 3,700 jobs added on average each year. In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 10.0% year-over-year in 2nd quarter.
• In the year-ending 2nd quarter 2023, the metro’s inflation- adjusted economic output expanded 2.8%.
• At the same time, the metro recorded a net gain of 8,900 jobs, expanding the employment base 2.3%.
• As such, Dayton’s unemployment rate in May 2023 declined 0.1 point year-over-year to 3.4%, matching the national average of 3.4%.
• During the past year, job gains in Dayton were most pronounced in the Education/Health Services sector followed by Leisure/Hospitality Services.
NOTEWORTHY MENTIONS
downtown dayton broadway ave apts 19 min drive (8.8 mi)
WRIGHT STATE -140 UNDERGRAD PROGRAMS -20,000 JOBS -13,000 STUDENTS UNIVERSITY OF DAYTON -80 UNDERGRAD PROGRAMS -9,000 STUDENTS -$70M ECONOMIC IMPACT WRIGHT PAT AIR FORCE BASE - 28,000 JOBS - $4.3B ECONOMIC IMPACT - LARGEST SINGLE SIT EMPLOYER IN OH
SCAN FOR QUARTERLY DATA
quarterly REPORT
OCCUPANCY
1| Over the past year, occupancy lost 1.7 points, with the 2nd quarter 2023 rate landing at 95.7%.
2| Looking at product classes in Dayton, 2nd quarter 2023 occupancy registered at 94.7% in Class A units, 96.5% in Class B units and 96.0% in Class C units. 3|Among submarkets, 2nd quarter 2023 occupancy was strongest in Greene County and Central Dayton/Kettering, both above 96%. The weakest readings were seen in Northwest Dayton (93.3%) and North Dayton/
SUPPLY
New apartment completions in Dayton were modest recently, as 595 units delivered in the year- ending 2nd quarter 2023. Completions over the past year expanded the local inventory base 1.1%. 2| In the past year, supply was greatest in Central Dayton/Kettering and South Montgomery County. 3| At the end of 2nd quarter 2023, there were 1,188 units under construction with 858 of those units scheduled to be completed in the next four quarters. 4| Scheduled deliveries in the coming year are expected to be concentrated in Central Dayton/Kettering.
1|
428 units completed in past 12 months
1,043 units currently in progress QUARTER
JANUARY FEBRUARY MARCH APRIL MAY JUNE
2
BROADWAY AVE APARTMENTS
