COURT STREET
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
AUSTIN SUM
Senior Associate 513-878-7747 austin.sum@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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the table of
CONTENTS
ASSET
01
page
8
LO C A L M A R K E T
02 page
16
RENT COMPS
03 page
28
CONDO SALES COMPS
04 page
38
FINANCIALS
05 page
46
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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
Brian Johnston Investment Associate
JD Schmerge Investment Associate
Tim VanWingerden Investment Associate
DEBT & STRUCTURED FINANCE
Chris Litzler Senior Director MMCC
VALUATION & RESEARCH
Sam Petrosino
Financial & Research Analyst
MARKETING
Alex Papa
Marketing Coordinator
CLIENT RELATIONS
Kristin Smith Marketing
Skyler Wilson
Client Relations Manager
OPERATIONS
Sidney Bills
Office Administrator
Josh Caruana
Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City
Brittany Campbell-Koch Director of Operations
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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COURT STREET
01 section
ASSET 10 - property highlights 12 - property snapshot 14 - photos
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13 EAST COURT STREET
THE PROJECT The Project: The stretch of Court Street running from the Kroger Corporate Headquarters to the new Kroger Grocery is a walker’s paradise and underwent a large remodel in 2021 to further improve the walkability of the area. Court street sits in between the business district and Over The Rhine granting residents easy walking access to the many eateries, entertainment, and employment destination found in both OTR and the CBD. •
13 W Court St is currently Zoned Office & Retail
•
Located on the block between the Kroger Corporate Headquarters & the mixed-use Kroger Grocery
•
Court St is a walker’s paradise, central to downtown and bordering the Central Business District and Over the Rhine
•
Opportunity to offer modern interior finishes while preserving the historic charm of the 1800s building
•
The property is already fully sprinklered including the basement
•
New copper wiring done in 1989
•
Elevator access to each floor ADG MULTIFAMILY
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COURT STREET
PROPERTY SNAPSHOT 13 EAST COURT STREET, CINCINNATI, OH
Office Building Conversion Opportunity Stories: 4 Plus Basement Total SF: 5,320 (excluding basement) Floor Plate SF: 1,330 Fire Suppression: All 4 Floors Plus Basement Sprinklered
Roof: Flat Rubber Membrane Replaced in 2007 Elevator: 1989 (inspected annually) Utility Meters: Individual Gas & Electric per Floor Ingress/Egress: Exterior Fire Escape & Interior Staircase Electric: Copper, replaced in 1989 No Federal Pacific Stablock Two Gas Fires Places on 2nd & 3rd floor, One on 1st & 4th floor
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FLOOR PLANS ADG MULTIFAMILY
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COURT STREET
PROPERTY PHOTOS
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COURT STREET
02 section
LOCAL MARKET 18 - overview 20 - court street 22 - downtown
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DOWNTOWN | CINCINNATI
COURT STREET
You’ll find a lot of examples of Italianate architecture throughout downtown Cincinnati and Over-theRhine. Along Court Street, six historic buildings are being renovated and will become high-end condos soon. The Kroger Co. headquarters, at right, sits at Court and Vine Streets. Parking is always at a premium along Court Street, between Main Street at the Hamilton County Courthouse and Vine Streets. Kroger’s new 18-story mixed-use development and the 560-space garage should help the congestion.
Kroger/Court Street
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Over-The-Rhine
Court Street, between the Hamilton County Courthouse at Main and Race Street, is home to a variety of business and apartments. Have a dress altered at Kim Dao’s, or a suit next door at F. Stavale Tailor. Buy fresh meet from Avril Bleh, a meat market and deli that’s been a staple on Court Street since 1926. Hungry? You’ll find Tom + Chee on this block as well as, multiple other eateries. The big change on the street is the new Kroger at Court and Walnut. It’s a an 18-story mixed-use development that will include 139 apartments and a food court. The multi-level parking garage is already open to the public.
Avril & Bleh Deli
Tom & Chee
Court Street Lobster Bar
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DOWNTOWN | CINCINNATI
THE HEART OF DOWNTOWN
The Banks is a gathering place for people all across the region. It provides a lively atmosphere full of attractions that promote public enjoyment and appreciation for city’s riverfront. Spanning the full width of the Central Business District, The Banks brings the waterfront to downtown’s front door. Thriving off of the energy generated by the adjacent professional sports venues, Paul Brown Stadium to the west and Great American Ballpark to the east, The Banks provides life and energy as a premier live, work, and play district.
paul brown stadium
cyclones
bengals
reds
TQL STADIUM
The FCC-TQL partnership brings together two Cincinnati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commitment to our local community. There are a lot of synergies that make this alliance between TQL and FCC a perfect match and are reflected throughout the stadium from — the fin lighting to the TQL Beer District. The stadium features first-in-the-world lighting tech-
TQL stadium
nology powered by 2.7 miles of LED lights.
360 26,000 CANOPY ROOF STADIUM SEATS 3,170 14,256 BAILEY SEATS FEET OF LED LIGHTS ADG MULTIFAMILY
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DOWNTOWN | CINCINNATI
DORA
From 11am – 1am daily, the 85-acre DORA district at The Banks allows guests to take their beverage purchased from one of the 18 Banks establishments and explore our public plazas and green spaces. It simply needs to be in the Official DORA Cup. At risk of missing the first pitch? Late for the opening act? Take your beverage purchased in a DORA cup from a Banks establishment and go! Waiting for a table, or wish to picnic outside in The Banks plazas or greenspaces? Grab a DORA beverage from a Banks establishment and explore!
DOWNTOWN | CINCINNATI
ATTRACTIONS HARDROCK CASINO - The game is always on at Hard Rock Casinos, where stars are made every night. Come try your hand at the tables, with classic games including blackjack, baccarat and poker, or tap into thousands of the hottest slots on the planet. With the world’s greatest rock memorabilia collection to enhance the thrill, plus the accompaniment of live, world-class entertainment, the atmosphere is like no other. SKY STAR - SkyStar provides unique views of downtown Cincinnati, Covington, the Ohio River and the Roebling Suspension Bridge. It features more than one million LED lights. Each of the 36 gondolas is enclosed, climate controlled and can hold up to six passengers. Skystar offers a private experience and riders are not paired with strangers. The SkyStar experience consists of four revolutions and lasts approximately 12 minutes.
hard rock casino
skystar wheel
queen city sign
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DOWNTOWN | CINCINNATI
RETAIL & SHOPPING In addition to the restaurant and nightlight scene, the area has no shortage of retail options. Downtown offers both boutiques and department stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restaurant and nightlife scene is now thriving, and the shopping scene is beginning to catch up. Most of the shops are in the southwest quarter of Over-the-Rhine, on either Vine or Main St. You won’t find chain stores in this walkable shopping district. MiCA 12/v and Urban Eden are a popular gift shops that sell local arts and crafts. Elm & Iron sells vintage and upcycled items for the home. The Little Mahatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shoppers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.
homage
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otr
elm & iron
finley market
finley market
Findlay Market is Ohio’s oldest continuously operated public market and is located in the historic Over-the-Rhine neighborhood. The market is a wonderful place for locals to buy their groceries as well as a must-see historic spot for visitors to Cincinnati. Findlay Market is open year-round, Tuesday through Sunday, with a seasonal farmers market. Nearly 40 full-time businesses operate year-round, plus over 100 more vendors operate on weekends or part-time. Many vendors sell raw food while others specialize in prepared foods. Some of the merchants are new startups, while others have been in business for generations. You’ll find everything from fresh meat and produce to imported fine teas to Belgian waffles. There are restaurants as well as a beer garden, so plan to stay for lunch. Findlay Market has a fascinating history. Why not take a tour to learn more? There are several different tour options, including a culinary tour with tasty samples.
COURT STREET RENT COMPS 30 - rent matrix 34 - rent comps
03 section
COMPETITIVE SET
RENT MATRIX STUDIO
Studio Property 1010 On The Rhine Crane Factory Sixth Street Exchange The Emery The Provident 17-19 E Court St Subject Pro Forma
Year Built 2019 1931/2018 1923/2019 1911 1909/2020 1880 1860
# Units
Avg SF
Avg Rent
139 69 52 58 161 10 3
628 634 408 674 430 600 450
$1,555 $1,235 $1,093 $980 $962 $850 $845
Avg Rent/SF $2.48 $1.95 $2.68 $1.45 $2.24 $1.42 $1.88
ONE BEDROOM
One Bedroom Property 1010 On The Rhine Crane Factory Lancaster Apartments The Emery The Mercer Commons Sixth Street Exchange Subject Pro Forma
Year Built 2019 1931/2018 1989/2020 1911 1877/2014 1923/2019 1860
# Units 139 69 14 58 67 52 3
Avg SF 820 980 780 720 651 670 1000
Avg Rent $1,820 $1,697 $1,600 $1,567 $1,553 $1,546 $1,525
Avg Rent/SF $2.22 $1.73 $2.05 $2.18 $2.39 $2.31 $1.53
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COMPETITIVE SET
RENT MATRIX TWO BEDROOM
Two Bedroom Property 1010 On The Rhine The Mercer Commons Crane Factory The Emery Subject Pro Forma
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Year Built 2019 1877/2014 1931/2018 1911 1860
# Units 139 67 69 58 3
Avg SF 1310 1380 1429 1632 1000
Avg Rent $2,699 $2,686 $2,549 $2,376 $2,225
Avg Rent/SF $2.06 $1.95 $1.78 $1.46 $2.23
6th Street Kitchen
1010 Rhine Kitchen
Emery Living
6th Street Living
Crane Kitchen
Emery Bathroom
1010 Rhine Bath
Crane Kitchen
Lancaster Kitchen ADG MULTIFAMILY
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COMPETITIVE SET
THE EMERY
100 E CENTRAL PKWY, CINCINNATI,OH SUMMARY PROPERTY SUMMARY UNITS YEAR BUILT OCCUPANCY
58 1911/2021 40%
UNIT MIX & RENT SCHEDULE UNIT TYPE 0x1 1x1 2x2
AMENITIES UNIT FEATURES Controlled Access Fitness Cetner Rooftop Deck Elevator
SS Appliances Finsihed Concrete Floors Quartz Countertops Tile Tub Surrounds In-Unit Washer/Dryer
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RENT $980 $1,567 $2,376
SF 674 720 1632
RENT PER SF $1.45 $2.18 $1.46
COMPETITIVE SET
LANCASTER APARTMENTS
22 W. 7TH ST. CINCINNATI, OH
SUMMARY PROPERTY SUMMARY UNITS YEAR BUILT OCCUPANCY
14 1898/2020 100%
UNIT MIX & RENT SCHEDULE UNIT TYPE 1x1 2x2
RENT $1,600 $2,100
SF 780 930
RENT PER SF $2.05 $2.26
AMENITIES UNIT FEATURES Bike Storage Elevator Secure Access
SS Appliances Waterfall Granite Countertops Tiled Bathroom Walls Washer/Dryer Hookups
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COMPETITIVE SET
CRANE FACTORY
824 BROADWAY ST. CINCINNATI, OH SUMMARY PROPERTY SUMMARY
69
UNITS
1931/202
YEAR BUILT
97%
OCCUPANCY UNIT MIX & RENT SCHEDULE
AMENITIES UNIT FEATURES Fitness Center Clubroom Grilling Area Rooftop Deck
Quartz Countertops LVP Flooring SS Appliances In-Unit Washer/Dryer Exposed Brick Title Shower Surround
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UNIT TYPE
RENT
SF
RENT PER SF
0x1
$1,235
634
$1.95
1x1
$1,687
980
$1.71
2x2
$2,549
1429
$1.78
COMPETITIVE SET
17-19 E COURT STREET
17-19 EAST COURT ST. CINCINNATI, OH
SUMMARY PROPERTY SUMMARY
10
UNITS
1880/2021
YEAR BUILT
69%
OCCUPANCY UNIT MIX & RENT SCHEDULE UNIT TYPE
RENT
SF
RENT PER SF
0x1
$850
600
$1.42
AMENITIES UNIT FEATURES n/a
n/a
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COURT STREET
04 section
CONDO SALE COMPS 40 - sale comp matrix 42 - individual sale comps
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COMPETITIVE SET
CONDO SALE COMPS SOLD Address
Bed Count
Bath Count SQFT Sale Price
$/SQFT
Sale Date
50 E Court St #308 50 E Court St #307
1 2
1 2
766 910
$289,000.00 $379,000.00
$377.28 $416.48
12/6/2019 12/6/2019
50 E Court St #207 50 E Court St #407 50 E Court St #408 50 E Court St #208 36 E Court St # 305 36 E Court St #205 36 E Court St #206 1003 Walnut St #209 1003 Walnut St #310 30 E Central pkwy #1203
2 2 1 1 2 1 1 2 2 2
2 2 1 1 2 1 1 2 2 2
936 910 766 766 1077 586 522 999 1359 1248
$385,000.00 $374,000.00 $283,000.00 $288,000.00 $370,000.00 $259,000.00 $220,000.00 $395,000.00 $475,000.00 $457,500.00
$411.32 $410.99 $369.45 $375.98 $343.55 $441.98 $421.46 $395.40 $349.52 $366.59 $390.00
1/6/2020 5/25/2020 1/3/2020 1/9/2020 1/13/2020 2/18/2020 10/16/2019 12/5/2019 12/9/2019 5/3/2021
PRICES ARE UP AN AVERAGE OF
13.2%
NATIONALLY BETWEEN MAY 2020 AND MAY 2021 - ZILLOW 40
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$390/SF adjusted for average appreciation = $441.58
FOR SALE Address
Bed Count
Bath Count SQFT Sale Price
$/SQFT
Sale Date
11 E Court St #303 11 E Court St #304
1 2
1 2
613 920
$279,000.00 $375,000.00
$455.14 $407.61
Active Active
11 E Court St #401 915 Vine St #302 915 Vine St #401 915 Vine St #201
1 1 1 1
2 1 2 2
1097 522 707 795
$379,000.00 $245,000.00 $330,000.00 $340,000.00
$345.49 $469.35 $466.76 $427.67 $428.67
Active Active Active Active
36 East Court Bathroom
36 E Court Kitchen
915 Vine Bath
East Central Kitchen
915 Vine Livingroom
36 East Court Living ADG MULTIFAMILY
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SALE COMPS
50 E COURT STREET SUMMARY PROPERTY SUMMARY YEAR BUILT SALE DATE DAYS ON MARKET
1900/2020 1/6/2020 1
UNIT MIX & RENT SCHEDULE UNIT TYPE 2x2
AMENITIES UNIT FEATURES Secure entry
Hardwood Floors Quartz Countertops Stone Backsplash SS Appliances Title Shower Surround
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SALE PRICE $379,000
SF 910
PRICE/SF $416.48
SALE COMPS
36 E COURT STREET SUMMARY PROPERTY SUMMARY YEAR BUILT SALE DATE DAYS ON MARKET
1900/2019 2/19/2020 1
UNIT MIX & RENT SCHEDULE UNIT TYPE 1x1
SALE PRICE $259,000
SF 586
PRICE/SF $446.98
AMENITIES UNIT FEATURES Secure Entry
Hardwood Floors Quartz Countertops Stone Backsplash SS Appliances Title Shower Surround
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SALE COMPS
11 E COURT STREET UNIT 304 SUMMARY PROPERTY SUMMARY YEAR BUILT LIST DATE
1900/2021 10/27/2021
UNIT MIX & RENT SCHEDULE UNIT TYPE 2x2
AMENITIES UNIT FEATURES Secure Entry 10 Year Tax Abatement
Hardwood Floors SS Appliances Exposed Brick Subway Tile Backsplash Tile Shower SurroundI In-Unit Washer/Dryer
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SALE PRICE $375,000
SF 920
PRICE/SF $407.61
SALE COMPS
11 E COURT STREET UNIT 401 SUMMARY PROPERTY SUMMARY YEAR BUILT LIST DATE
1900/2021 10/27/2020
UNIT MIX & RENT SCHEDULE UNIT TYPE 1x1.5
SALE PRICE $379,000
SF 1079
PRICE/SF $345.49
AMENITIES UNIT FEATURES Secure Entry 10 Year Tax Abatement
Hardwood Floors SS Appliances Exposed Brick Subway Tile BacksplasH Tile Shower Surround In-Unit Washer/Dryer
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COURT STREET
05 section
FINANCIALS 48 - financial breakdown
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COURT STREET - UNIT MIX SUMMARY (MULTIFAMILY APPROCH) Summary
PROJECTED
MARKET
AVERAGE EFFECTIVE
Rentable
Total
Units
SF
SF
Two Bedroom
3 Units
1,000 SF
3,000 SF
$2,225.00
$2.23
$6,675
$2,225.00
$2.23 SF
$6,675
$2,400.00
$2.40 SF
$7,200
Totals / Wtd. Averages
3 Units
1,000 SF
3,000 SF
$2,225.00
$2.23 SF
$6,675
$2,225.00
$2.23 SF
$6,675
$2,400.00
$2.40 SF
$7,200
Unit Type
Total Rent Rent/Unit Rent/SF
Potential
Total Rent Rent/Unit Rent/SF
Potential
Total Rent Rent/Unit Rent/SF
Potential
Summary
UNIT DISTRIBUTION
Avg Effective 48
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$2,400
$2,225
100%
UNIT RENTS
Pro Forma
Current (Rent Roll/T# Income; Adjusted Trailing Expenses)
$80,100 $0 $80,100
GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME
$12,000 $12,000 $92,100 ($4,005) $0 $88,095
INCOME
GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Retail Total Other Income
Year 1 (Recapture LTL, Stabilized Occupancy and Other Income, Normalized Expenses, Start Reno)
Per Unit 26,700 0 26,700
$86,400 ($1,728) $84,672
5.00% 0.00% 95.00%
4,000 4,000 30,700 (1,335) 0 29,365
$12,360 $12,360 $97,032 ($4,234) ($1,693) $91,105
% of GPR
0.00% 16.67% 16.67%
% of GPR
2.00% 15.92% 15.92%
Per Unit
28,800 (576) 28,224
5.00% 2.00% 91.00%
4,120 4,120 32,344 (1,411) (564) 30,368
EXPENSES
Non-Controllable Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance
$12,213 $0 $12,213 $900
% of EGI 15.19% 0.00% 15.19% 1.12%
Per Unit 4,071 0 4,071 300
$12,213 $0 $12,213 $900
% of EGI 14.45% 0.00% 14.45% 1.06%
Per Unit 4,071 0 4,071 300
Utilities Electric Total Utilities Total Non-Controllable
$1,200 $1,200 $14,313
1.36% 1.36% 16.25%
400 400 4,771
$1,224 $1,224 $14,337
1.34% 1.34% 15.74%
408 408 4,779
$1,650 $200 $2,700 $7,048
1.87% 0.23% 3.06% 8.00%
550 67 900 2,349
$1,650 $201 $2,700 $7,288
1.81% 0.22% 2.96% 8.00%
550 67 900 2,429
Controllable
Repairs & Maintenance Marketing & Promotion On-Site Payroll Management Fee
Replacement & Reserves
$765 Note 1
0.87%
255
$780
0.86%
260
Total Controllable
$12,363
14.03%
4,121
$12,620
13.85%
4,207
TOTAL EXPENSES
$26,676
30.28%
8,892
$26,957
29.59%
8,986
NET OPERATING INCOME
$61,419
69.72%
20,473
$64,148
70.41%
21,383
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COURT STREET