Brownsboro OM

Page 1

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

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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

40

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

32

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

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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.

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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.

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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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