Burlington Oaks - OM by Jordan.Dickman

REDEFINING MULTIFAMILY

BURLINGTON OAKS

EXCLUSIVITY LISTED BY JORDAN DICKMAN

First Vice President of Investments 513-878-7735 jordan.dickman@marcusmillichap.com

NICK ANDREWS

First Vice President of Investments 513-878-7741 nick.andrews@marcusmillichap.com

ADG MULTIFAMILY

CONFIDENTIALITY & DISCLAIMER The information contained in the following offering memorandum 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 offering memorandum 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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MARKETING

the table of

CONTENTS

00 page

MARKET DRIVERS

01 page

THE PERSPECTIVE

page

FINANCIAL BREAKDOWN

page

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CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

First Vice President Investments Director, NMHG

Jordan Dickman

First Vice President Investments Director, NMHG

INVESTMENT ADVISORS

Austin Sum

Senior Investment Associate

Garry Schloemer Investment Associate

JD Schmerge Investment Associate

Brian Johnston

Tim VanWingerden

Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler Senior Director MMCC

Jim Leonard

Senior Managing Director of Capital Markets MMCC

Alec Neesham Associate Director MMCC

CLIENT RELATIONS

VALUATION & RESEARCH

Sam Petrosino

Jennifer Bauer

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

Kristin Smith Marketing

Alex Papa

Marketing Coordinator

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

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BURLINGTON OAKS

00 section

MARKETING modeling the investment - 10 digital marketing - 12 uncontested videography - 14 premiere exposure - 16 track record - 18 ADG MULTIFAMILY

ACCURATELY MODELING THE INVESTMENT

98.9% AVERAGE CLOSED TO STRIKE PRICE RATIO To successfully execute a marketing campaign, it is critical to understand the likely buyer profiles that will be attracted to the asset, in addition to their respective approval process, corporate structure and underwriting methodology. Where it be a private investor, pension fund advisor, sponsored capital group, family office, or a discretionary fund manager, every investment group has an approval process/ corporate structure that dictates their ability to process with a transaction. We pride ourselves on maintaining vast and deep relationships with each of the buyer profiles that are active in the marketplace today coupled with a thorough understanding

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PREMIER ACCESS TO INVESTOR PROFILES FOREIGN & INTERNATIONAL BUYERS • Foreign investors seeking domestic opportunities and technology enables that direct foreign demand

CROSS-PRODUCT CAPITAL • Opportunistic investors seeking diversification in other real estate property types

1031 EXCHANGE CAPITAL • Investors seeking acquisition opportunistic for capital gains tax deferral

1ST TIER INVESTORS • Pension funds, advisors, banks, REITs and life insurance companies

2ND TIER INVESTORS • Syndicators, developers, merchant builders, general partnerships, and professional investors

3RD TIER INVESTORS • Private, individual investors who account for the majority of transactions in the marketplace

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SOCIAL MEDIA

DIGITAL & TRADITIONAL MARKETING

06 3,100+ 35,109

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SOCIAL MEDIA PLATFORMS MONTHLY IMPRESSIONS ON ISSUU EMAILS SENT TO INVESTORS IN LAST 30 DAYS

RCM & CREXI CREXI Commercial Real Estate Exchange, Inc. (CREXI) is the commercial real estate industry’s fastest-growing marketplace, advanced technology and data platform dedicated to supporting the CRE industry and its stakeholders. Crexi enables commercial real estate professionals to quickly streamline, manage, grow their businesses, and ultimately close deals faster. Since launching in 2015, Crexi has quickly become the most active marketplace in the industry. With millions of users, the platform has helped buyers, tenants and brokers transact and lease on over 500,000 commercial listings totaling

RCM Real Capital Markets (RCM) is the global marketplace for buying and selling CRE. RCM increases the speed, exposure, and security of CRE sales through its streamlined online platform. Solutions include integrated property marketing, transaction management, and business intelligence tools to unify broker-level and firm-level data and work flows.

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PROFESSIONAL FPV & COMMERICAL DRONE SERVICE

UNCONTESTED VIDEOGRAPHY

DRONES

RONIN

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ADVANTAGES

• Show real dimensions of the property • More interesting virtual tours • Creation of brand awareness • Shareability of videos • Shows that we are knowledgeable • Real time walk through of units • Helps create an emotional connection between future tenant and a room • Quick and easy to capture a large number of units

NMHC - ANNUAL MEETING

PREMIERE EXPOSURE

7DEALS

PREVIOUS YEAR

WHO’S GOING? Wide Array Of Private Equity To Institutional Capital All Are Decision Makers M&M Will Hold 150 Meetings In 2 Days Will Be Apart Of Excusive Group Of Assets

30OFFERS

GENERATED

7,500

qualified investors

3,000

already registered 16

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WHAT IS NMHC? NMHC is the place where the leaders of the apartment industry come together to guide their future success. With the industry’s most prominent and creative leaders at the helm, NMHC provides a forum for insight, advocacy and action that enable both members and the communities they build to thrive.

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ANDREWS DICKMAN TRACK RECORD $22,896,000 | 216 Units Oldham Oaks, La Grange Kentucky $17,700,000 | 276 Units Kentucky Towers, Louisville Kentucky $14,050,000 | 349 Units Springfield Portfolio, Springfield Ohio $13,000,000 | 375 Units Tri-West Portfolio, Cincinnati Ohio $10,000,000 | 252 Units Arts Apartments At Music Hall, Cincinnati Ohio $12,250,000| 178 Units Studio & Union, Dayton Ohio

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PROPERTY NAME

CITY

STATE

CLOSED PRICE

STRIKE PRICE

RATIO

Views of Mount Airy

Cincinnati

Ohio

$ 15 , 0 0 0 , 0 0 0

$ 15 , 25 0 , 0 0 0

98%

Springfield Portfolio

Springfield

Ohio

$ 13 , 8 8 0 , 0 0 0

$ 13 , 9 9 0 , 70 0

99%

Arts Apartments at Music Hall

Cincinnati

Ohio

$9,400,000

$9,800,000

96%

18 4 0 F l a t s

Lexington

Ke n t u c k y

$ 13 , 75 0 , 0 0 0

$ 14 , 0 0 0 , 0 0 0

98%

Union Hill & Studio Apartments

Dayton

Ohio

$ 13 , 0 0 0 , 0 0 0

10 0 %

K e n t u c k y To we r s

Louisville

Ke n t u c k y

$ 17, 7 0 0 , 0 0 0

$ 18 , 5 0 0 , 0 0 0

96%

Charleston Portfolio

Charleston

We s t V i r g i n i a

$43,900,000

$44,000,000

99%

Woodland Acres

Lewisburg

We s t V i r g i n i a

$6,600,000

10 0 %

Wayne Estates

Dayton

Ohio

$ 7, 4 25 , 0 0 0

$ 7, 0 0 0 , 0 0 0

10 6 %

Kings View

Cincinnati

Ohio

$ 10 , 5 0 0 , 0 0 0

$ 10 , 70 0 , 0 0 0

99%

Arbor at Montana Apartments

Cincinnati

Ohio

$ 4 , 72 9 , 0 0 0

$4,800,000

99%

Union Hill Apartments

Dayton

Ohio

$ 5 , 70 0 , 0 0 0

10 0 %

Woods & Grinstead

Louisville

Ke n t u c k y

$ 15 ,15 0 , 0 0 0

$ 15 , 2 0 0 , 0 0

99%

Roselawn Village

Cincinnati

Ohio

$ 9 , 2 8 7, 5 0 0

$9,400,000

99%

Residences at Summit View

Cincinnati

Ohio

$ 7, 3 5 0 , 0 0 0

$ 7, 4 0 0 , 0 0 0

99%

Southview Manor

Highland Heights

Ke n t u c k y

$4,850,000

10 0 %

Holly Hills

Louisville

Ke n t u c k y

$ 4 , 9 25 , 0 0 0

$4,950,000

99%

Oldham Oaks

La Grange

Ke n t u c k y

$22,896,000

$ 23 , 5 0 0 , 0 0 0

97%

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BURLINGTON OAKS

01 section

MARKET DRIVERS statistics - 22 new developments - 24 major projects - 26

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BURLINGTON OAKS CINCNNATI, OHIO BURLINGTON, OAKS

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BURLINGTON & FLORENCE RECENT DEVELOPMENTS • 81 Properties Built Since 2015 in Burlington and Florence • 12 Properties in the Development Pipeline with 11 Projects Proposed • Totaling 104 NEW Developments in 150-Square Mile Radius Around CVG • 10 Multi-Family Communities | 1,401 Units • 41 Retail Properties | 906,000 SF RBA • 43 Office or Industrial Properties | 13,500,000 SF RBA • 10 Health Care, Hospitality, or Special Properties | 412,000 SF RBA

BURLINGTON, KY Population

16,347

Median Age

Median HouseHold Income

$73,304

Mean HouseHold Income

$80,230

Median Home Value

$165,000

Median Monthly Rent

$938

Homeowner Vacany Rate

1.9%

FLORENCE, KY Population

32,479

Median Age

Median HouseHold Income

$56,670

Mean HouseHold Income

$72,227

Median Home Value

$142,800

Median Monthly Rent

$893

Homeowner Vacany Rate

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1. PAUL HEMMER AIRPORT DISTRIBUTION CENTER • The Paul Hemmer Co. plans to develop 255 acres of land owned by the Cincinnati/Northern Kentucky International Airport over the next six years through four phases. The project will consist of 11 build to suit buildings ranging from 140,000-650,000 SF, totaling 2.18 million SF. Building usages will include warehouse distribution, office, manufacturing, trade operations or government facilities. This is the second largest site leased by CVG. • Cost: $64 Million • Completion Date: 2025 • Permanent Jobs Created: 2,000

2. AMAZON AIR SERVICE HUB

• Address: 241 Wendell H Ford Blvd. • Currently under construction, Amazon is building a 3 million SF warehouse and air logistics center covering 922 acres directly south of CVG. Initially 50 Amazon-branded planes will oper-ate out of the facility and grow to 100 as it matures. • Cost: $1.5 Billion • Completion Date: 2021 • Permanent Jobs Created: 2,000

CVG AIRPOR

3. ATLAS AIR NORTH AMERICAN LOGISTICS HUB

• Address: CVG • New York-based Atlas Air Worldwide Holdings Inc. is moving and expanding its presence in Northern Kentucky with the development of a new North American Operations Hub. • Cost: $34 Million • Completion Date: 2021 • Permanent Jobs Created: 900

4. CA GATEWAY

• Address: 2000 Gateway Blvd. • Amazon.com Inc. will build a 3 million-square-foot building for its massive air services hub at CVG. A more than 139,600-square-foot, speculative, class A industrial building. • Cost: $7.2 Million • Completion Date: 2020

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BURLINGTON OAKS

DOWNTOWN CINCINNATI 1 MILE OFF MAP

5. ELIJAH CREEK INDUSTRIAL DEVELOPMENT • Address: 1669 Elijiah Creek Rd. • A two-building distribution center development that will add more than 925,000 square feet of industrial space. • Cost: $65 Million • Completion Date: 2022, Q1

6. RIVERVEIW DISTRIBUTION CENTER

• Address: 2960 Riverview Dr • A 585,800-square-foot distribution center with a large portion that has already been leased to Standard Textile. • Cost: $40 Million • Completion Date: 2021, Q1

7. GE AVIATION ON WING SUPPORT CENTER

• Address: 2775 Ted Bushelman Dr • A 68,000-square-foot facility in Florence for GE Aviation’s On Wing Support Center to meet growing demand for its engine repair services. • Cost: $5.72 Million • Completion Date: 2020, Q1 • Permanent Jobs Created: 2,000

8. TURFWAY PARK RACING & GAMING

6 7

• Address: 7500 Turfway Rd • Churchill Downs plans a total investment of $150 million to create a state-of-the-art live and historical thoroughbred racing facility. • Cost: $104 Million • Completion Date: 2022, Q3

NKY DEVELOPMENTS

MAJOR PROJECT LIST HAMLET ON THE BEND

PARKWAY TRAILS

A mix use development that incorporates commercial and residential units to produce a harmonious village that becomes a neighborhood gathering place.

Parkway trails is the companies first ground up construction project. It is a great location with tremendous exposure, northern Kentucky is booming and they wanted to be part of it by providing good quality attainable housing for the market.

Hamlet on The Bend will have an English flair, rich is style and charm. Courtyards, seat walls, swings, landscaping, bridges, decorative lighting and other streetscape elements will create an outdoor experience for a true neighborhood gathering place. Hamlet on The Bend integrates 18,000 square feet of retail/commercial space and 156 luxury apartments into a place to visit, gather and live.

ADG MULTIFAMILY

Parkway Trails is close to shopping, restaurants, entertainment, interstates, golf courses, recreation, highly rated public schools, dog parks, and walking, hiking and biking trails. Pre-leasing is to begin in the fall. Move-ins are scheduled for early 2022. Parkway Trails will include one- and two-bedroom apartments with plank flooring and modern finishes, a swimming pool, fitness center, cyber café, clubhouse, outside exercise equipment and a bike trail.

HOUSTON ROAD

BRILLIANCE AVENUE

Florence city council listened to the first reading of an ordinance adding a zoning map amendment for a multi-family development on a 20-acre site at 4885 Houston Road.

Proposed state

Arlington Properties plans to add 320 upscale apartments, with 159 one-bedroom, 162 two-bedroom, and 52 three-bedroom units. There is expected to be 567 parking spaces. Rent is anticipated to be between $1,100 and $1,700 per month. The project was already approved by the planning commission.

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BURLINGTON OAKS

02 section

THE PERSPECTIVE rent stack - 30 rent comps - 32-47

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COMPETITIVE SET

RENT SORT

One Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Sky Harbor

1970/1999

850

925

1.09

Crossing of Oakbrook

1989

759

823

808

1.08

Burgundy Hills

2002

719

888

1.24

Grand at Florance

2016

880

1370

1355

1.56

Paddock Club

1992

800

998

1.25

Charleston Pines

2004

840

972

957

1.16

Sanctuary Place

2002

850

826

811

0.97

Burlington Oaks

1990

800

821

734

1.03

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Two Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Sky Harbor

1970/1999

1075

1050

0.98

Crossing of Oakbrook

1989

158

955

850

835

0.89

Burgundy Hills

2002

970

1003

1.03

Villages of Burlington

2017

107

1370

1545

1.13

Grand at Florance

2016

164

1190

1695

1680

1.42

Paddock Club

1992

1051

1204

1.15

Charleston Pines

2004

144

1150

1309

1294

1.14

Sanctuary Place

2002

126

1175

967

952

0.82

Burlington Oaks

1990

144

1125

960

104

856

0.85

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Three Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

Sky Harbor

1970/1999

120

1125

1095

0.97

Crossing of Oakbrook

1989

1300

1099

1084

0.85

Burgundy Hills

2002

1340

1250

0.93

Villages of Burlington

2017

1670

1945

1.16

Grand at Florance

2016

1566

1980

CEDAR RIDGE 1965 1.26

Paddock Club

1992

100

1417

1441

1.02

Charleston Pines

2004

1350

1355

1340

1.00

Sanctuary Place

2002

1481

1175

1160

0.79

Burlington Oaks

1990

1400

1184

139

1045

0.85

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COMPETITIVE SET

SKY HARBOR

1735 Tanglewood Ct, Burlington, KY 41005 3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

192

UNITS

1970-1999

YEAR BUILT

99.5%

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

850

$925

$1.09

2x1.5

1075

$1,050

$.98

2x2

120

1125

$1,095

$.97

AMENITIES UNIT FEATURES 24 Hour fitness Basketball court Cable ready Community patio

Air Conditioning

Comparables Rent Analysis

Cable or Satellite TV 1 Bed

Ceiling Fan Disability Access

$0-$1,370

LOW

HIGH HIGH

Dishwasher Pool Property manager on site Recreation room Picnic area

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Disposal Fireplace Garage

2 Bed LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

CROSSING OF OAKBROOK

6355 Crossings Dr, Burlington, KY 41005

3237 Utah Ave, Louisville, KY PROPERTY SUMMARY UNITS

258

YEAR BUILT

1989 97.7%

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

759

$823

$1.08

2x1

880

$835

$.95

2x2

112

1033

$895

$.87

3x2

1300

$1099

$.85

AMENITIES UNIT FEATURES 24 hr fitness center car wash

washer/dryer hook ups

Comparables Rent Analysis

high speed internet 1 Bed

sports court pool playground laundry room package service

cable ready

LOW

HIGH

storage units

HIGH

fireplace 2 Bed

satellite tv ceiling fans

picnic area

$0-$1,370

ADG MULTIFAMILY - COLONIAL PARK

LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

BURGUNDY HILLS

1800 Bordeaux Blvd, Burlington, KY 41005 3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

UNITS YEAR BUILT

2002

OCCUPANCY

95.9%

UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

719

$888

$1.24

2x1

970

$1,003

$1.03

3x2

1340

$1,250

$.93

AMENITIES UNIT FEATURES laundry facilities

washer/dryer hookups

24 hr availability

wifi

Comparables Rent Analysis 1 Bed

online services

cable ready

business center

storage units

pool tennis court grill picnic area

ADG MULTIFAMILY

$0-$1,370

LOW

HIGH HIGH

balcony 2 Bed

patio large bedrooms

LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

VILLAGES OF BURLINGTON

5109 Frederick Ln, Burlington, KY 41005

3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

115

UNITS

2017

YEAR BUILT

99.1%

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

2x2

107

1370

$1,545

$1.13

3x3

1670

$1,945

$1.16

AMENITIES UNIT FEATURES property manager on site furnished units

high speed internet access

Comparables Rent Analysis

washer/dryer hookups 1 Bed

curbside trash pickup wheelchair accessible

cable ready

$0-$1,370

LOW

HIGH

stainless steel appliances

HIGH

granite countertops 2 Bed

balcony patio vinyl flooring

ADG MULTIFAMILY

LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

GRAND AT FLORENCE

855 Clubtrail Dr, Florence, KY 41042

3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

236

UNITS

2016

YEAR BUILT

98.75

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

880

$1,370

$1.56

2x2

104

1170

$1,675

$1.43

2x1.5 TH

1207

$1,707

$1.41

3x2.5

1566

$1,980

$1.26

AMENITIES UNIT FEATURES landscaping clubhouse

cable ready

Comparables Rent Analysis

laundry room with washer dryer 1 Bed

game room business center

premium views available

heated swimming pool

energy efficient lighting

corporate housing

ADG MULTIFAMILY

$0-$1,370

LOW

HIGH

wood plank flooring

fire pit

community gardens

stainless steel appliances

HIGH

2 Bed LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

ADG MULTIFAMILY

COMPETITIVE SET

PADDOCK CLUB

8000 Preakness Dr, Florence, KY 41042 3237 Utah Ave, Louisville, KY PROPERTY SUMMARY UNITS

200

YEAR BUILT

1992

OCCUPANCY

98%

UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

800

$998

$1.25

2x2

1051

$1,204

$1.15

3x2

100

1417

$1,441

$1.02

AMENITIES UNIT FEATURES breakfast bar dog park

high speed internet access

Comparables Rent Analysis

fireplace 1 Bed

fitness center

ice maker

gas fireplace

stainless steel appliances

indoor basketball court

LOW

walking trails

ADG MULTIFAMILY

HIGH HIGH

balcony 2 Bed

planned social activities playground

$0-$1,370

LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

CHARLESTON PINES

1700 Charleston Ct, Florence, KY 41042

3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

243

UNITS

2004

YEAR BUILT

99.2%

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

840

$972

$1.16

2x2

144

1150

$1,309

$1.14

3X2

1350

$1,355

$1.00

AMENITIES UNIT FEATURES laundry services pool

ceiling fans

Comparables Rent Analysis

a/c 1 Bed

clubhouse car wash area business center

LOW

HIGH HIGH

fireplace hardwood floors

fitness center

walkin closets

ADG MULTIFAMILY

$0-$1,370

storage units

tanning salon

basketball court

washer/dryer hookups

2 Bed LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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COMPETITIVE SET

SANCTUARY PLACE

1900 Sanctuary Pl Dr, Hebron, KY 41048 3237 Utah Ave, Louisville, KY PROPERTY SUMMARY

250

UNITS

2002

YEAR BUILT

99.2%

OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE

# OF UNITS

RENT

RENT PER SQFT

1x1

850

$826

$.97

2x1

1049

$907

$.86

2x2

102

1304

$1,015

$.78

3x2

1481

$1,175

$.79

AMENITIES UNIT FEATURES pool fitness center

furnished units available

Comparables Rent Analysis

dishwasher 1 Bed

laundry facilities conference room grilling area business center clubhouse

washer/dryer hookup

HIGH HIGH

walkin closets 2 Bed

storage units fireplace

double vanities

ADG MULTIFAMILY

LOW

yard

sprinkler system

$0-$1,370

LOW

SUBJECT COMP

$0-$1,675 HIGH HIGH

SUBJECT COMP

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BURLINGTON OAKS FINANCIAL BREAKDOWN unit mix summary - 50 unit mix breakdown - 52 financial breakdown - 54

03 section

EXECUTIVE SUMMARY

BURLINGTON OAKS

BEDROOM 72 Units 57,600 SF

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BEDROOM 144 Units 162,000 SF

BEDROOM 24 Units 33,600 SF

EXECUTIVE SUMMARY UNIT MIX SUMMARY

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

One Bedroom

72 Units

800 SF

57,600 SF

$733.59

$0.92

$52,818

$785.00

$0.98 SF

$56,520

$915.00

$1.14 SF

$65,880

Two Bedroom

144 Units

1,125 SF

162,000 SF

$856.43

$0.76

$123,326

$875.00

$0.78 SF

$126,000

$1,050.00

$0.93 SF

$151,200

Three Bedroom

24 Units

1,400 SF

33,600 SF

$1,045.00

$0.75

$25,080

$1,065.00

$0.76 SF

$25,560

$1,250.00

$0.89 SF

$30,000

240 Units

1,055 SF

253,200 SF

$838.44

$0.79 SF

$201,224

$867.00

$0.82 SF

$208,080

$1,029.50

$0.98 SF

$247,080

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

Totals / Wtd. Averages

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BURLINGTON OAKS - UNIT MIX SUMMARY Summary

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

One Bedroom

72 Units

800 SF

57,600 SF

$733.59

$0.92

$52,818

$785.00

$0.98 SF

$56,520

$915.00

$1.14 SF

$65,880

Two Bedroom

144 Units

1,125 SF

162,000 SF

$856.43

$0.76

$123,326

$875.00

$0.78 SF

$126,000

$1,050.00

$0.93 SF

$151,200

Three Bedroom

24 Units

1,400 SF

33,600 SF

$1,045.00

$0.75

$25,080

$1,065.00

$0.76 SF

$25,560

$1,250.00

$0.89 SF

$30,000

240 Units

1,055 SF

253,200 SF

$838.44

$0.79 SF

$201,224

$867.00

$0.82 SF

$208,080

$1,029.50

$0.98 SF

$247,080

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

Totals / Wtd. Averages

ADG MULTIFAMILY

UNIT MIX BREAKDOWN MARKET

AVERAGE EFFECTIVE Total Rent

PROJECTED

One Bedroom

No. of

Rentable

Total

Total Rent

Unit Type

Units

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

1x1

72 Units

800 SF

57,600 SF

$733.59

$0.92 SF

$52,818

$785.00

$0.98 SF

$56,520

$915.00

$1.14 SF

$65,880

Totals / Wtd. Averages

72 Units

800 SF

57,600 SF

$733.59

$0.92 SF

$52,818

$785.00

$0.98 SF

$56,520

$915.00

$1.14 SF

$65,880

Two Bedroom

No. of

Rentable

Total

Avg.

Total Rent

Avg.

Total Rent

Unit Type

Units

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

2x1

144 Units

1,125 SF

162,000 SF

$856.43

$0.76 SF

$123,326

$875.00

$0.78 SF

$126,000

$1,050.00

$0.93 SF

$151,200

Totals / Wtd. Averages

144 Units

1,125 SF

162,000 SF

$856.43

$0.76 SF

$123,326

$875.00

$0.78 SF

$126,000

$1,050.00

$0.93 SF

$151,200

Three Bedroom

No. of

Rentable

Total

Avg.

Total Rent

Avg.

Total Rent

Unit Type

Units

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

3x2

24 Units

1,400 SF

33,600 SF

$1,045.00

$0.75 SF

$25,080

$1,065.00

$0.76 SF

$25,560

$1,250.00

$0.89 SF

$30,000

Totals / Wtd. Averages

24 Units

1,400 SF

33,600 SF

$1,045.00

$0.75 SF

$25,080

$1,065.00

$0.76 SF

$25,560

$1,250.00

$0.89 SF

$30,000

Total Rent

ADG MULTIFAMILY

GROSS POTENTIAL RENT

INCOME

All Units at Market Rent

Year 1

% of GPR

$2,496,960

% of GPR

10,404

$2,964,960

(336)

($207,547)

10,068

$2,757,413

Per Unit

12,354

($80,700)

GROSS SCHEDULED RENT Other Income

$2,416,260

Water/Sewer Income

$148,440

T12

6.14%

619

$176,262

6.39%

734

Garage Income (76)

$34,043

T12

1.41%

142

$40,424

1.47%

168

Pet Income

$29,708

T12

1.23%

124

$35,276

1.28%

147

Miscellaneous Income

$27,890

T12

1.15%

116

$33,117

1.20%

138

911 Fee

$23,350

T12

0.97%

$27,726

1.01%

116

$7,578 $271,009

T12

0.31% 11.22%

32 1,129

$8,998 $321,804

0.33% 11.67%

37 1,341

11,197

$3,079,216

Laundry Income Total Other Income GROSS POTENTIAL INCOME

3.23%

Per Unit

Gain (Loss) to Lease

$2,687,269

7.00%

(865) 11,489

12,830

Physical Vacancy Employee Units Bad Debt

($109,289)

T12 Economic Vac

($10,800)

0.00%

($27,574)

1.00%

(115)

EFFECTIVE GROSS INCOME

$2,567,180

91.80%

10,697

$2,901,172

86.54%

12,088

% of EGI 6.22% 0.00% 6.22% 1.96%

Per Unit 666 0 666 210

$159,743 $216,478 $376,221 $66,000

% of EGI 5.51% 7.46% 12.97% 2.27%

Per Unit 666 902 1,568 275

EXPENSES

FINANCIAL BREAKDOWN

Current

Non-Controllable Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance

$159,743 $0 $159,743 $50,392

T12

$17,210

T12

4.52%

(455)

($137,871)

5.00%

0.45%

(45)

($12,600)

0.46%

(574) (53)

Utilities Electric

0.67%

$17,554

0.61%

Electric Vacant

0.00%

Gas

0.00%

6.63%

710

$173,687

5.99%

724

$170,281

T12

Trash Removal

$27,144

T12

Total Utilities Total Non-Controllable

$214,635 $424,770

Water & Sewage

1.06%

113

$27,687

0.95%

115

8.36% 16.55%

894 1,770

$218,928 $661,148

7.55% 22.79%

912 2,755

Controllable Contract Services Security Expense

0.02%

$600

0.02%

Snow Removal

$440 $0

T12

0.00%

$8,400

0.29%

Landscaping/Grounds

0.00%

$24,000

0.83%

100

Pest Control

0.00%

$8,400

0.29%

10.15% 0.60% 2.66% 0.41% 2.05% 3.50% 0.26% 2.38%

1,086 64 285 44 220 374 28 255

$132,000 $18,000 $216,000 $36,000 $36,000 $101,541 $7,200 $62,424

4.55% 0.62% 7.45% 1.24% 1.24% 3.50% 0.25% 2.15%

550 75 900 150 150 423 30 260

Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves

$260,609 $15,397 $68,358 $10,531 $52,755 $89,851 $6,782 $61,200

Total Controllable

$565,923

22.04%

2,358

$650,565

22.42%

2,711

TOTAL EXPENSES

$990,693

38.59%

4,128

$1,311,713

45.21%

5,465

$1,576,487

61.41%

6,569

$1,589,458

54.79%

6,623

NET OPERATING INCOME

T12 T12 T12 T12 T12 Added T12 Added

Year 2

Year 3

% of GPR

$3,053,909 ($76,348)

2.50%

$2,977,561

Per Unit

% of GPR

12,725

$3,145,526

(318)

($62,911)

12,407

$3,082,616

Per Unit

13,106 2.00%

(262) 12,844

$181,550

6.10%

756

$186,996

6.07%

779

$41,636

1.40%

173

$42,885

1.39%

179

$36,334

1.22%

151

$37,424

1.21%

156

$34,111

1.15%

142

$35,134

1.14%

146

$28,558

0.96%

119

$29,415

0.95%

123

$9,268 $331,458

0.31% 11.13%

39 1,381

$9,546 $341,401

0.31% 11.08%

40 1,423

13,788

$3,424,017

$3,309,019

14,267

($148,878)

5.00%

(620)

($154,131)

5.00%

($12,978)

0.44%

(54)

($13,367)

0.43%

(642) (56)

($29,776)

1.00%

(124)

($30,826)

1.00%

(128)

$3,117,387

91.06%

12,989

$3,225,693

91.57%

13,440

$159,743 $216,478 $376,221 $67,320

% of EGI 5.12% 6.94% 12.07% 2.16%

Per Unit 666 902 1,568 281

$159,743 $216,478 $376,221 $68,666

% of EGI 5.12% 6.94% 12.07% 2.20%

Per Unit 666 902 1,568 286

$17,905

0.57%

$18,263

0.59%

0.00%

$177,160

5.68%

738

$180,704

5.80%

753

$28,241

0.91%

118

$28,805

0.92%

120

$223,306 $666,847

7.16% 21.39%

930 2,779

$227,772 $672,659

7.31% 21.58%

949 2,803

$612

0.02%

$624

0.02%

$8,568

0.27%

$8,739

0.28%

$24,480

0.79%

102

$24,970

0.80%

104

$8,568

0.27%

$8,739

0.28%

$134,640 $18,360 $220,320 $36,720 $36,720 $109,109 $7,344 $63,672

4.32% 0.59% 7.07% 1.18% 1.18% 3.50% 0.24% 2.04%

561 77 918 153 153 455 31 265

$137,333 $18,727 $224,726 $37,454 $37,454 $112,899 $7,491 $64,946

4.41% 0.60% 7.21% 1.20% 1.20% 3.50% 0.24% 2.08%

572 78 936 156 156 455 31 271

$669,113

21.46%

2,788

$684,104

21.82%

2,835

$1,335,960

42.86%

5,566

$1,356,763

43.52%

5,653

$1,781,427

57.14%

7,423

$1,868,929

59.95%

7,787

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