BROWNSBORO PARK
CONFIDENTIALITY & DISCLAIMER The information contained in the following proposal is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this proposal has been obtained from sources we believe reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT ANDREWS | DICKMAN FOR MORE DETAILS.
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PRESENTED BY
JUSTIN KNAPP
Vice President of Investments 248-450-5366 justin.knapp@marcusmillichap.com
ANDREW VAN ZEE
Associate 317-218-5300 andrew.vanzee@marcusmillichap.com
TIM VANWINGERDEN
Associate 513-878-7750 tim.vanwingerden@marcusmillichap.com
JORDAN DICKMAN
First Vice President of Investments 513-878-7735 jordan.dickman@marcusmillichap.com
NICK ANDREWS
First Vice President of Investments 513-878-7735 nick.andrews@marcusmillichap.com
ADG MULTIFAMILY
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Nick Andrews
First Vice President Investments Director, NMHG
Jordan Dickman
First Vice President Investments Director, NMHG
INVESTMENT ADVISORS
Austin Sum Senior Associate
Garry Schloemer Investment Associate
JD Schmerge Investment Associate
Brian Johnston
Tim VanWingerden
Investment Associate
Investment Associate
DEBT & STRUCTURED FINANCE
Jim Leonard
Chris Litzler
Senior Managing Director of Capital Markets MMCC
Senior Director MMCC
CLIENT RELATIONS
VALUATION & RESEARCH
Sam Petrosino
Skyler Wilson
Financial & Research Analyst
Client Relationship Coordinator
OPERATIONS & MARKETING
Brittany Campbell-Koch Director of Operations
Josh Caruana
Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City
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Kristin Smith Alex Papa Marketing
Marketing
John Sebree
Sidney Bills
Office Administrator
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
James W. Knapp
Knapp Group Founder & CEO Marcus Millichap (NSHG) Exec. Director
Nick Stahler
Stahler Group Founder & Managing Director Marcus Millichap (NSHG) Director
Mike Mooney
Justin Knapp
Knapp Group Founder & Managing Director Marcus Millichap (NSHG) Director
Stahler Group Partner Marcus Millichap Senior Associate
INVESTMENT ADVISORS
Jeff Gabele Senior Associate
Joseph Knapp Investment Associate
Jeff Hollister
Andrew Vanzee
Austin Diamond
Chad Mundy
Investment Associate
Hap Knowles
Investment Associate
Investment Associate
Investment Associate
Todd Lindblom
Investment Associate
National Director NSHG
DEBT & STRUCTURED FINANCE
Chris Litzler
Jim Leonard
Senior Director MMCC
Senior Managing Director of Capital Markets MMCC
VALUATION & RESEARCH
TRANSACTIONS
Dee Brown
Nicole Christoson
Analyst
Transaction Coordinator
OPERATIONS & MARKETING
Jacob Schrier Marketing
Josh Caruana
Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City
Lindsey Slavik
Sidney Bills
Marketing
Office Administrator
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
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THE ASSET
the table of
CONTENTS
01 page
8
THE COMPE TITIVE SE T
02 page
14
THE FINANCIALS
03
page
24
THE MARKET
04 page
38
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BROWNSBORO PARK
01 section
THE ASSET 10 - property snapshot 12 - photos
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BROWNSBORO PARK
PROPERTY SNAPSHOT 2960 Goose Creed Road, Louisville, Kentucky
1985 134
807 108,138 13.14 LOT
YEAR BUILT
NUMBER OF UNITS
AVERAGE UNIT SIZE
RENTABLE SQUARE FEET
CONCRETE FLEXICORE BRICK
FOUNDATION
CONSTRUCTION
EXTERIOR OF BUILDING
WINDOW
COOLING
COPPER
WIRING
UNITS
LOT SIZE (ACRES)
PARKING
80%
CURRENT OCCUPANCY
OWNER PAYS: ELECTRIC, GAS, WATER, SEWER, TRASH, CABLE, INTERNET 10
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AMENITIES INCLUDE: CHEF PREPARED MEALS ELEGANT DINING ROOM PRIVATE DINING ROOM GAME AND ACTIVITY ROOMS BEAUTY SALON SPACIOUS LOUNGES DRY CLEANING SERVICE COFFEE SHOP PLANNED EVENTS TRANSPORTATION TO: ERRANDS APPOINTMENTS ACTIVITIES HOUSEKEEPING AND LINEN SERVICES SIGHTSEEING OUTINGS OUTDOOR WALKWAY OUTDOOR PARK WITH POND BEAUTIFUL SCENERY
BROWNSBORO PARK
PHOTOS
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THE GRAND OF PROSPECT
BROWNSBORO PARK
FORUM AT BROOKSIDE STORYPOINT MIDDLETOWN
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BROWNSBORO PARK
02 section
THE COMPETITIVE SET 16 - rent sort 18 - forum at brookside 20- storypoint middletown 22 - the grand of prospect
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COMPETITIVE SET
RENT SORT Studio Bedroom Apartment Rents Sorted by Net Rent Property
Year Built
Unit Type
SF
Market Rent
Rent Adjustment
Base Rent
Net Rent/SF
Atria Springdale*
1999
Studio
315
$2,795
$535
$2,260
$7.17
Lake Forest Village Retirement
2018
Studio
566
$2,550
$535
$2,015
$3.56
Atria Stony Brook*
1999
Studio
491
$2,395
$535
$1,860
$3.79
Brownsboro Park Pro Forma
1984
Studio
488
$2,275
$670
$1,605
$3.29
Oxmoor Lodge
2006
Studio
449
$1,950
$435
$1,515
$3.37
Brownsboro Park Avg Eff
1984
Studio
488
$2,108
$670
$1,438
$2.95
Averages
1998
466
2346
563
1782
$4
One Bedroom Apartment Rents Sorted by Net Rent
Property
Year Built
Unit Type
SF
Market Rent
Rent Adjustment
Base Rent
Net Rent/SF
Atria Springdale*
1999
1x1
554
$4,095
$545
$3,550
$6.41
Lake Forest Village Retirement Community
2018
1x1
750
$3,800
$670
$3,130
$4.17
The Grand
2018
1x1
660
$3,495
$670
$2,825
$4.28
StoryPoint Middletown
2019
1x1
612
$3,200
$550
$2,650
$4.33
The Village Active Lifestyle Community
1927
1x1
726
$2,936
$550
$2,386
$3.29
Atria St. Matthews*
1998
1x1
725
$2,895
$545
$2,350
$3.24
Brownsboro Park Proforma
1984
1x1
634
$3,000
$670
$2,330
$3.68
Forum at Brookside
2009
1X1
629
$2,928
$615
$2,313
$3.68
Brownsboro Park Avg Eff
1984
1x1
634
$2,512
$670
$1,842
$2.91
Whickshire at Blankenbaker
2001
1x1
650
$2,400
$615
$1,785
$2.75
Oxmoor Lodge
2006
1x1
614
$2,200
$570
$1,630
$2.65
Averages
1997
1x1
653
$3,042
$606
$2,436
$3.73
*Assisted living personal care. 16
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Two Bedroom Apartment Rents Sorted by Net Rent
Property
Year Built
Unit Type
SF
Market Rent
Rent Adjustment
Base Rent
Net Rent/SF
Atria Springdale*
1999
2x1
805
$5,395
$565
$4,830
$6.00
The Village Active Lifestyle Community
1927
2x1
1122
$4,300
$570
$3,730
$3.32
StoryPoint Middletown
2019
2x1
994
$4,200
$570
$3,630
$3.65
Lake Forest Village Retirement Community
2018
2x1
1000
$4,300
$690
$3,610
$3.61
Atria St. Matthews*
1998
2x1
883
$3,895
$565
$3,330
$3.77
The Grand
2018
2x2
800
$4,000
$690
$3,310
$4.14
The Forum at Brookside
2009
2x1
850
$3,620
$585
$3,035
$3.57
Traditions at Beaumont
2016
2x2
814
$3,495
$570
$2,925
$3.59
Whickshire at Blankenbaker
2001
2x2
850
$3,500
$635
$2,865
$3.37
Brownsboro Park Pro Forma
1984
2x1 /2x2
956
$3,500
$690
$2,810
$2.94
Brownsboro Park Avg Eff
1984
2x1 / 2x2
956
$3,177
$690
$2,487
$2.60
Oxmoor Lodge
2006
2x1
976
$2,500
$465
$2,035
$2.09
Averages
1998
2x1
917
$3,824
$607
$3,216
$4
*Assisted living personal care. Base rent calculated based on the following expense assumption: Service Comment Meal Service $12 PRD Housekeeping and Activities $3 PRD Utilities Market Norm Cable Market Norm WiFi Market Norm
Monthly Rent Adjustment $360 $100 $90 $70 $55 ADG MULTIFAMILY
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COMPETITIVE SET
FORUM AT BROOKSIDE
200 Brookside Drive, Louisville, KY
SUMMARY PROPERTY SUMMARY
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UNITS
2018
YEAR BUILT
UNIT MIX & RENT SCHEDULE UNIT TYPE
RENT
SF
RENT PER SF
1x1
$2,927
629
$3.33
2x1
$3,620
850
$3.31
AMENITIES UNIT FEATURES live-in management
full kitchen
coffee shop
pet friendly
24/7 nursing
paid utilities
valet housekeeping planned social activities gameroom library salon services indoor pool
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cable tv/ wi-fi
Comparables Rent Analysis 1 Bed LOW
$2,200-$4,095 HIGH
paid utilities 2 Bed
carport/garage LOW
$3,824-$5,395 HIGH
SUBJECT COMP
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COMPETITIVE SET
STORYPOINT MIDDLETOWN
500 Meridian Hills, Drive, KY
SUMMARY PROPERTY SUMMARY
162
UNITS
2019
YEAR BUILT
40% Lease Up
OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE
RENT
SF
RENT PER SF
1x1
$3,200
612
$5.23
2x1
$4,200
994
$4.23
AMENITIES UNIT FEATURES salon services near by walking paths dinner meal service fitness classes and activities housekeeping linen service planned social activities
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open concept floor plans kitchenette
Comparables Rent Analysis
all utilities included private outdoor spaces walk-in showers with safety bars
1 Bed LOW
air conditioning
HIGH 2 Bed
cable tv / wi-fi LOW
$2,200-$4,095
$3,824-$5,395 HIGH
SUBJECT COMP
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COMPETITIVE SET
THE GRAND OF PROSPECT
9300 Civic Way, Prospect, KY
SUMMARY PROPERTY SUMMARY
168
UNITS
2018
YEAR BUILT
UNIT MIX & RENT SCHEDULE UNIT TYPE
RENT
SF
RENT PER SF
1x1
$3,495
660
$3.95
2x1
$4,000
800
$3.86
AMENITIES UNIT FEATURES l24/7 staff available
full kitchen
concierge service
pet friendly
dining services planned social activities fitness center scheduled transportation theater/media room indoor pool
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Comparables Rent Analysis 1 Bed
stainless steel appliances spacious closets
LOW
$2,200-$4,095 HIGH
balcony 2 Bed
washer/dryer all utilities included cable tv / wi-fi
LOW
$3,824-$5,395 HIGH
SUBJECT COMP
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BROWNSBORO PARK
03 section
THE FINANCIALS 26 - investment highlights 28 - development pipeline 30 - brownsboro statistics 34 - financials
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INVESTMENT HIGHLIGHTS
BROWNSBORO PARK
2960 GOOSE CREED ROAD, LOUISVILLE, KENTUCKY
Marcus and Millichap is pleased to present Brownsboro Park, a 134-unit Senior Independent Living Community. Residents enjoy resort-style living in Louisville’s premier neighborhood. The community offers a spectrum of amenities including meal service, planned events and activities, transportation to appointments and shopping, weekly housekeeping and linen services, beautiful outdoor scenery including a walking path and a gazebo overlooking the pond.
STUDIO 6 Unit 488 Avg SF $2,108 Rent
134 TOTAL UNITS
109 Units 659 Avg SF $2,477 Rent
1985 YEAR BUILT $815,056 CURRENT NOI
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2 BED
1 BED
694 SF AVERAGE UNIT SIZE
19 Units 956 Avg SF $3,171 Rent
$2,559 AVERAGE RENT $1,585,068 PROFORMA NOI
81% OCCUPANCY
VALUE-ADD OPPORTUNITY Brownsboro Park has an above average operating expense load at 21,813/unit. Variable expenses across the property exceed the market providing an opportunity to improve operating margins and increase value. Furthermore, the competitive set boasts rents $900 more than Brownsboro’s average effective rent. This provides an opportunity for a renovation program with A Class amenities to drive current rents and draft from the competition.
35 YEAR OWNER | ORIGINAL DEVELOPER
A rare opportunity to acquire a property from the original developer. This tight-knit community has employees averaging a 12year tenure who take pride in their work. With resident tenure just under 5-years on average, this community offers strong retention with seniors who love to call Brownsboro home.
DEVELOPMENT OPPORTUNITY
Brownsboro is on a 13+ Acre Site, which provides ample room for development of assisted living and/or memory care units to become a fully integrated CCRC facility. Development pipeline for AL facilities include two projects underway within a 10-mile radius of Brownsboro Park for a total of 314 ALF units.
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INVESTMENT HIGHLIGHTS
BROWNSBORO PARK
ASSISTED LIVING DEVELOPMENT PIPELINE Property
Artis Senior Living Elevate Assisted Living Facility Louisville KY Nazareth Home Campus Expansion BridgePointe Gardens Assisted Living Memory Care Facility Harmony at Tucker Station Assisted Living Facility
Address
Type
Target
Class
Status
Units
4922 Brownsboro Rd, Louisville, KY 40222
New Construction
TBD
Assisted Living/ALF
Planning
38
Site Not Selected, Louisville, KY 40255
New Construction
TBD
Assisted Living/ALF
Planning
96
2118 Payne St, 2002 Payne St, Louisville, KY 40206
New Construction
TBD
Assisted Living/ALF
Planning
102
3100 Utica Sellersburg Rd, Jeffersonville, IN 47130-8529
New Construction Q1 2022
Assisted Living/ALF
Underway
131
12523 Taylorsville Road, Louisville, KY 40299
New Construction Q2 2022
Assisted Living/ALF
Underway
183
ASSISTED LIVING RECENT ADDITIONS Name The Grand of Prospect Everlan Louisville
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Address
Year Built
9300 Civic Way, Prospect, KY 40059
2019
5900 Hunting Rd, Louisville, KY 40222
2020
BRIDGEPOINTE GARDENS THE GRAND OF PROSPECT
EVERLAN LOUISVILLE
BROWNSBORO PARK
NAZARETH HOME
ARTIS SENIOR LIVING
The 13 Acre site provides an opportunity for an ALF to be developed at Brownsboro Park. 5 Assisted Living Facilities are in Planning and Development within a 10-mile radius of Brownsboro Park. Two New IL/AL Facilities have recently opened in the past 2 years, further qualifying the need for a renovation project on Brownsboro to draft rents from the competition and remain an affordable and competitive option for future residents.
HARMONY AT TUCKER
INVESTMENT HIGHLIGHTS
OCCUPANCY HISTORY
*Senior housing and ALF occupancy history within 10-mile radius of Brownsboro Park.
COVID & LOUISVILLE MARKET PERFORMANCE
Brownsboro Park has performed consistent with the Louisville Senior market as a whole during COVID. PreCOVID occupancies were historically 95% which was also in line with the market conditions as a whole. The Louisville market has shown a strong comeback in lease-up this current quarter with velocity increasing 3-4 times compared with Q1 and Q2.
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OUTSTANDING TENANT TENURE Brownsboro Park boasts an average tenure of 4.93 years which points to the strong community and resident satisfaction.
BROWNSBORO PARK OCCUPANCY HISTORY AT YEAR-END PER OWNERSHIP Year YE 2015 YE 2016 YE 2017 YE 2018 YE 2019 YE 2020 YE 2021
Occupancy 96.70% 98% 99% 90% 90% 80% 79%
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INVESTMENT HIGHLIGHTS
VARIABLE EXPENSE REDUCTION POTENTIAL Variable Expense Reduction
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Expense Item Payroll Services Contract Services Repairs & Maintenance Marketing & Promotion Payroll Benefits General & Administrative Management Fee
Trailing $1,450,752 $46,909 $32,354 $56,137 $156,480 $219,474 $2,400
Pro Forma $1,134,310 $48,521 $68,340 $27,336 $136,958 $170,850 $4,409
Telephone & Cable
$142,524
$144,881
Housekeeping
$8,894
$9,568
Food Services
$438,725
$444,893
Resident Activities Replacement & Reserves
$18,217 $34,170
$19,135 $35,550
Total
$2,607,036
$2,244,751
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Brownsboro Park has an above average operating expense load at $21,813/ unit. Variable expenses across the property exceed the market providing an opportunity to improve operating margins and increase value. An operation expense recapture of $362,285 results in an equity value increase of $4.528MM at a 8% capitalization rate.
Category Payroll Services Payroll Benefits General & Administrative Total
PRD 20.6 2.2 3.2 $26
Variable Pro Forma Property Operating Expenses Pro Forma Trailing $8,465 $10,827 $1,022 $1,168 $1,250 $1,638 $10,737
Reduce BY 22% 13% 24%
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BROWNSBORO PARK- UNIT MIX SUMMARY Summary
PROJECTED
MARKET
AVERAGE EFFECTIVE
Rentable
Total
Units
SF
SF
6 Units
488 SF
2,928 SF
$2,108.33
$4.32
$12,650
$2,140.00
$4.39 SF
$12,840
$2,150.00
$4.41 SF
$12,900
One Bedroom
109 Units
659 SF
71,842 SF
$2,477.82
$3.76
$270,082
$2,675.69
$4.06 SF
$291,650
$2,995.18
$4.54 SF
$326,475
Two Bedroom
19 Units
956 SF
18,172 SF
$3,171.26
$3.32
$60,254
$3,240.00
$3.39 SF
$61,560
$3,540.00
$3.70 SF
$67,260
Totals / Wtd. Averages
134 Units
694 SF
92,942 SF
$2,559.60
$3.69 SF
$342,986
$2,731.72
$3.94 SF
$366,050
$3,034.59
$4.38 SF
$406,635
Unit Type
Total Rent Rent/Unit Rent/SF
Potential
Total Rent Rent/Unit Rent/SF
Potential
Total Rent Rent/Unit Rent/SF
Potential
Summary Studio
UNIT MIX BREAKDOWN MARKET
AVERAGE EFFECTIVE
Studio
No. of
Rentable
Total
Unit Type
Units
SF
SF
Rent/Unit
Rent/SF
Potential
0BR/1BA
6 Units
488 SF
2,928 SF
$2,108.33
$4.32 SF
$12,650
$2,140.00
Totals / Wtd. Avgs
6 Units
488 SF
2,928 SF
$2,108.33
$4.32 SF
$12,650
$2,140.00
One Bedroom
No. of
Rentable
Total
Unit Type
Units
SF
SF
Rent/Unit
Rent/SF
Potential
Rent/Unit Rent/SF
Potential
Rent/Unit
Rent/SF
Potential
1BR/1BA
101 Units
634 SF
64,034 SF
$2,441.04
$3.85 SF
$246,545
$2,650.00 $4.18 SF
$267,650
$2,975.00
$4.69 SF
$300,475
1BR/2BA Totals / Wtd. Aver-
8 Units 109 Units
976 SF 659 SF
7,808 SF 71,842 SF
$2,942.15 $2,477.82
$3.01 SF $3.76 SF
$23,537 $270,082
$3,000.00 $3.07 SF $2,675.69 $4.06 SF
$24,000 $291,650
$3,250.00 $2,995.18
$3.33 SF $4.54 SF
$26,000 $326,475
No. of
Rentable
Total
Avg.
Avg.
Total Rent
Avg.
Total Rent
Units
SF
SF
Rent/Unit
Rent/SF
Potential
Rent/Unit Rent/SF
Potential
Rent/Unit
Rent/SF
Potential
2BR/2BA - A
12 Units
910 SF
10,920 SF
$2,997.00
$3.29 SF
$35,964
$3,100.00 $3.41 SF
$37,200
$3,400.00
$3.74 SF
$40,800
2BR/2BA - B
7 Units
1,036 SF
7,252 SF
$3,470.00
$3.35 SF
$24,290
$3,480.00 $3.36 SF
$24,360
$3,780.00
$3.65 SF
$26,460
Totals / Wtd. Aver-
19 Units
956 SF
18,172 SF
$3,171.26
$3.32 SF
$60,254
$3,240.00 $3.39 SF
$61,560
$3,540.00
$3.70 SF
$67,260
Two Bedroom Unit Type
Total Rent
PROJECTED
Total Rent Rent/Unit Rent/SF
Total Rent
Potential
Rent/Unit
Rent/SF
Potential
$4.39 SF
$12,840
$2,150.00
$4.41 SF
$12,900
$4.39 SF
$12,840
$2,150.00
$4.41 SF
$12,900
Total Rent
Total Rent
Total Rent
Total Rent
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GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Total Other Income
$4,395,000 ($135,420) $4,259,580 $62,000
GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME
$4,321,580 ($583,612) $0 $3,737,968
INCOME
FINANCIAL BREAKDOWN
Current
EXPENSES
Non-Controllable Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance
RR
1.46%
Per Unit 32,799 (1,011) 31,788 463
$4,879,620 ($97,592) $4,782,028 $71,967
13.70% 0.00% 83.22%
32,251 (4,355) 0 27,895
1.97% 0.00% 1.97% 1.26%
% of EGI
% of GPR
3.08% RR
T12 Economic
1.50%
Per Unit 36,415 (728) 35,687 537
$4,853,994 ($573,843) ($95,641) $4,184,510
12.00% 2.00% 84.00%
36,224 (4,282) (714) 31,228
Per Unit 549 0 549 351
$73,589 $120,976 $194,565 $46,900
1.76% 2.89% 4.65% 1.12%
% of EGI
Per Unit 549 903 1,452 350
% of GPR
2.00%
$73,589 $0 $73,589 $47,009
Auditor
$118,050 $15,205 $56,912 $5,111 $195,279 $315,876
T12 T12 T12 T12
3.16% 0.41% 1.52% 0.14% 5.22% 8.45%
881 113 425 38 1,457 2,357
$120,411 $15,509 $58,051 $5,213 $199,184 $440,649
2.8w8% 0.37% 1.39% 0.12% 4.76% 10.53%
899 116 433 39 1,486 3,288
16.65% 4.09% 3.93% 3.60% 3.58% 3.25% 2.28% 1.42%
4,646 1,141 1,096 1,006 998 907 636 396
$562,800 $80,400 $107,200 $100,500 $134,000 $120,600 $85,760 $53,600
13.45% 1.92% 2.56% 2.40% 3.20% 2.88% 2.05% 1.28%
4,200 600 800 750 1,000 900 640 400
1.09% 0.05% 1.14% 1.60% 0.64% 3.21% 4.00% 0.10% 3.39% 0.22% 10.42% 0.45% 0.83% 55.76%
340 15 355 500 200 1,002 1,250 25 1,060 70 3,255 140 260 17,407
T12
Utilities Electric Gas Water & Sewage Trash Removal Total Utilities Total Non-Controllable Controllable Payroll Services Food Services Payroll Activities Payroll Office Payroll Maintenance Payroll Housekeeping Payroll Security Payroll Management Payroll Marketing Payroll Total Payroll Services Contract Services Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Housekeeping Food Services Resident Activites Replacement & Reserves Total Controllable
$622,554 $152,960 $146,903 $134,749 $133,673 $121,541 $85,249 $53,124
T12 T12 T12 T12 T12 T12 T12 T12
$45,180 $1,729 $46,909 $32,354 $56,137 $156,480 $219,474 $2,400 $142,524 $8,894 $438,725 $18,217 $34,170 $2,607,036
T12 T12
TOTAL EXPENSES NET OPERATING INCOME
Year 1 (Stabilized occupancy, begin capital improvements)
$1,450,752
38.81%
10,827
$1,244,860
1.21% 0.05% 1.25% 0.87% 1.50% 4.19% 5.87% 0.06% 3.81% 0.24% 11.74% 0.49% 0.91% 69.74%
337 13 350 241 419 1,168 1,638 18 1,064 66 3,274 136 255 19,455
$45,560 $2,010 $47,570 $67,000 $26,800 $134,272 $167,500 $4,185 $142,040 $9,380 $436,170 $18,760 $34,853 $2,333,390
$2,922,913
78.20%
21,813
$2,774,039
66.29%
20,702
$815,056
21.80%
6,083
$1,410,472
33.71%
10,526
T12 T12 T12 T12 T12 T12 T12 T12 T12 Note 1
29.75%
Note 2
9,290
Year 2 (Normalize expense load)
Year 3
1.50%
Per Unit 37,508 (750) 36,757 553
$5,176,789 ($103,536) $5,073,253 $76,349
1.50%
Per Unit 38,633 (773) 37,860 570
$4,999,614 ($492,549) ($98,510) $4,408,555
10.00% 2.00% 86.00%
37,311 (3,676) (735) 32,900
$5,149,602 ($507,325) ($101,465) $4,540,812
10.00% 2.00% 86.00%
38,430 (3,786) (757) 33,887
$73,589 $120,976 $194,565 $47,838
1.67% 2.74% 4.41% 1.09%
% of EGI
Per Unit 549 903 1,452 357
$73,589 $120,976 $194,565 $48,795
1.67% 2.74% 4.41% 1.11%
% of EGI
Per Unit 549 903 1,452 364
$122,820 $15,819 $59,212 $5,317 $203,168 $445,570
2.79% 0.36% 1.34% 0.12% 4.61% 10.11%
917 118 442 40 1,516 3,325
$125,276 $16,136 $60,396 $5,424 $207,231 $450,591
2.84% 0.37% 1.37% 0.12% 4.70% 10.22%
935 120 451 40 1,547 3,363
$562,800 $82,008 $73,700 $102,510 $136,680 $123,012 $53,600 $0
12.77% 1.86% 1.67% 2.33% 3.10% 2.79% 1.22% 0.00%
4,200 612 550 765 1,020 918 400 0 8,465
$574,056 $83,648 $75,174 $104,560 $139,414 $125,472 $54,672 $0
$1,156,996
13.02% 1.90% 1.71% 2.37% 3.16% 2.85% 1.24% 0.00%
4,284 624 561 780 1,040 936 408 0
$46,471 $2,050 $48,521 $68,340 $27,336 $136,958 $170,850 $4,409 $144,881 $9,568 $444,893 $19,135 $35,550 $2,244,751
1.05% 0.05% 1.10% 1.55% 0.62% 3.11% 3.88% 0.10% 3.29% 0.22% 10.09% 0.43% 0.81% 50.92%
347 15 362 510 204 1,022 1,275 33 1,081 71 3,320 143 265 16,752
$47,401 $2,091 $49,492 $69,707 $27,883 $139,697 $174,267 $4,541 $147,778 $9,568 $444,893 $19,135 $36,261 $2,280,218
1.08% 0.05% 1.12% 1.58% 0.63% 3.17% 3.95% 0.10% 3.35% 0.22% 10.09% 0.43% 0.82% 51.72%
354 16 369 520 208 1,043 1,301 33 1,103 71 3,320 143 271 17,016
$2,690,321
61.03%
20,077
$2,730,809
61.94%
20,379
$1,718,234
38.97%
12,823
$1,810,003
41.06%
13,507
$5,026,009 ($100,520) $4,925,488 $74,126
$1,134,310
% of GPR
2.00%
25.73%
% of GPR
2.00%
26.24%
8,634
38
ADG MULTIFAMILY
BROWNSBORO PARK
04 section
THE MARKET 40 - local market highlight 42 - world class employment 44 - economic drivers
ADG MULTIFAMILY
39
LOCAL MARKET HIGHLIGHTS
LOUISVILLE, KY 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.
DEMOGRAPHICS $75K+ Income Qualified 45-64 $75K+ IQ 45-64 5 Year Growth Rate Median Net Worth 55-64 55+ Population 50 - 54 Population 55 - 59 Population Average Net Worth 65+ Living Alone Rate Under 65 Living Alone Rate 65+ Pct 55-64 Total Population 40
ADG MULTIFAMILY
44,792.00 5.70% $377,642.00 152,368.00 30,611.00 31,622.00 $1,632,977.00 0.20% 0.50% 13.30%
ATTRACTIVE BUSINESS ENVIRONMENT Three Fortune 500 companies call Louisville home. Companies are drawn to the region’s low cost of doing business, while employees enjoy a relatively affordable place to live. A few of the major area employers include Yum! Brands Inc., Kindred Healthcare, Humana Inc., Hillerich & Bradsby, and Ford Motor Co.
MUSIC, SPORTS & ENTERTAINMENT
HEALTHCARE
As a frontier town and then a thriving river city, Louisville became a way station for some of the nation’s most original music, including the blues, jazz, rock & roll, country, jugband, and roots and bluegrass. Restaurants, bars, and other venues have live music almost every night of the week, showcasing all genres.
Today, Louisville is a healthcare mecca, with top employers
In addition, college sports and horse racing are all the rage in Louisville, Kentucky. The city prides itself on being one of the best college sports towns in the nation. Over 160,000 people come from around the world to attend the Kentucky Derby. Statewide, the equine industry has a $3 billion impact, generating over 55,000 jobs.
including Humana Inc., UofL Health, Kindred Healthcare, and Norton Healthcare. There are more than 57,000 people employed by the healthcare industry in Louisville, with an expected 50.000 new jobs to be created in the next two years.
ADG MULTIFAMILY
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LOUISVILLE
WORLD CLASS EMPLOYMENT Located in the Louisville International Airport, UPS Worldport is the world’s largest automated package handling facility, and center point of UPS’s worldwide air network. There are more than 300 flights that arrive and depart daily and the hub processes two million packages a day. The facility is a massive 5.2 million square feet, with a perimeter of 7.2 miles. It’s design also allows for future expansion. There have been more than 200 companies that have completely or partially relocated to Louisville in order to be close to the Worldport. Not only does UPS bring more than 20,000 direct jobs, it has also created 40,000 jobs indirectly. This industry titan has an annual economic impact of more than $300 million, accounting for more than two percent of all state and local taxes collected in the state. In the last two decades, UPS has invested more than $2.4 billion in construction projects in Louisville.
Direct Jobs Indirect Jobs Economic Impact Companies Relocated to Louisville
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ADG MULTIFAMILY
1,112,056 40,000 300M+ 200+
“And in turn, this region has become the cross roads of the global economy” Mike Jones, CFO | UPS Airlines
DEMOGRAPHICS • Population: 1,300,000 • Median Age: 39.2 • (2019) Median Househol income: $57,405 • (2019) # of Houses: 507,000 • (2019) # of Employees: 641,740
TOURISM & GOVERNMENT
HEALTHCARE
Tourism is the third largest industry in Kentucky. It generates an annual economic impact of $14.5 billion and $3.5 billion comes from Louisville alone. Nearly 27,500 jobs in the hospitality industry are supported by the tourist dollars spent on both day and overnight trips to the city of Louisville.
Today, Louisville is a healthcare mecca, with top employers including Humana Inc., UofL Health, Kindred Healthcare, and Norton Healthcare. There are more than 57,000 people employed by the healthcare industry in Louisville, with an expected 50.000 new jobs to be created in the next two years.
In addition, the Gene Snyder U.S. Courthouse & Customhouse, Romano Mazzoli Federal Building, and Louisville City Hall are all located in downtown Louisville.
ADG MULTIFAMILY
43
LOUISVILLE
WORLD CLASS ECONOMIC DRIVER 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. In the early 2000s. Churchill Downs underwent a $121 million renovation that took three-and-a-half years. During this renovation, the clubhouse was replaced, multiple luxury suites were added, and the famous twin spires were refurbished. The Kentucky Derby Museum is also located at Churchill Downs and focuses on the Derby’s grand history, as well as the training and racing of thoroughbred horses. While visiting Churchill Downs, guests love to take their photo with the statue of Aristides, the first Derby winner. In 2019, the Kentucky Derby has a direct economic impact on Louisville of $373 million.
Facility Capacity Acres Occupied by Racetrack Direct Economic Impact Years of Kentucky Derby
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ADG MULTIFAMILY
165,000 147 $373M 145
THE BOURBON BUSINESS In Kentucky, bourbon is more than just a spirit, it is a way of life. Kentucky Bourbon pours $8.6 billion into Kentucky’s economy each year, which has increased 60% since 2009. It generates more than 20,000 jobs with an annual payroll of $1 billion, provides $235 million in local and state tax revenue, and is in the middle of a $2.3 billion building boom. If the industry continues to grow at this rate, the economic output will be in excess of $10 billion this year, employing more than 24,000 and adding an additional $200 million to the payroll. The Kentucky Distillers’ Association (KDA) said that the success of the bourbon industry is due in part to lawmakers making working to modernize laws so distillers can thrive. In 2018, The Kentucky Bourbon Trail had 1 million visits.
Annual Economic Impact on KY Jobs Created Annual Payroll of KY Bourbon Industry 2018 Visits to the Bourbon Trail
$8.6B 20,000+ $1B 1M
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