DEER APARTMENTSBROOK
First
Austin Sum Senior austin.sum@marcusmillichap.comD.CincinnatiAssociateOffice513.878.7747 Nicholas Andrews First Vice President Investments Cincinnati Office D. nicholas.andrews@marcusmillichap.com513.878.7741 LEAD AGENTS SUBMITTED BY:
NON-ENDORSEMENT & DISCLAIMER CONFIDENTIALITYNOTICEDISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
Jordan Dickman Vice President Investments Cincinnati Office D. jordan.dickman@marcusmillichap.com513.878.7735
24 | LOCAL MARKET 0403020130 | FINANCIALS 16 | LOCAL COMPETITON 06 | THE INVESTMENTCONTENTSVALUEOFOPINION&CAPABILITIESBROKER
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES80+ | OFFICES
UNRIVALED SUCCESS IN THE MIDWEST OPERATIONS Brittany Campbell-Koch Director of Operations Liz Popp Midwest Operations Manager John Sebree Senior Vice President National Director National Multi Housing Group Michael Glass Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group Josh Caruana Vice IndianapolisRegionalPresidentManager|Cincinnati|LouisvilleStLouis|KansasCity Nick Andrews First Vice President Investments Director, NMHG Jordan Dickman First Vice President Investments Director, NMHG Austin Sum SeniorAssociateInvestment JD Schmerge InvestmentAssociate Brian Johnston InvestmentAssociate INVESTMENT ADVISORS Tim VanWingerden InvestmentAssociate DEBT & STRUCTURED FINANCE Chris Litzler Senior Director of MMCCOrganization Sam Petrosino Financial & AnalystResearch VALUATION & RESEARCH Skyler Wilson Client Relations Manager CLIENT RELATIONS Alex Papa Marketing Coordinator Kristin Smith Marketing MARKETING ADG5 MULTIFAMILY
01SECTION THE INVESTMENT
INVESTMENT
ORGANIC RENTAL GROWTH:
DEER BROOK APARTMENTS INVESTMENT HIGHLIGHTS
SUBMARKET DRIVERS: The top five industries with the largest employment concentration in Hillsboro are: Health Care & Social Assistance: 19% Manufacturing: 14% • Accommodation & Food Services: 11% Educational Services: 10% • Retail Trade: 8% Seal-Tite Manufacturers first began in the spring of 1900 in Cincinnati, Oh. They have been consistently expanding their operation in Hillsboro since 2009, with their most recent expansion planned to create 80 addi tional roles.
WELL MAINTAINED ASSET:
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Hobart Corporation is a leading manufacturer of commercial food equipment with over 1,500 technicians, first founded in 1897 in Troy, Oh. The Hillsboro manufacturing location recently celebrat ed it’s 50Th anniversary, the facility opened in 1970.
Since the start of ownership in 2006, management has diligently reinvested back into the property addressing all major deferred maintenance items from roofs and gutters/downspouts to blacktop and storm water run off drainage. On the unit interiors, the community is second gener ation Cardinal Construction enabling management to quickly and easily turn units by ordering replacement cabinets, counter tops, appliances, doors and trim from Buckeye Management in Columbus, OH. The turn materials arrive in one package and do not require any resizing, resulting in quick turns and enabling ownership to replace damaged items at a similar cost to repair.
Current management has not had a rental increase at the community since 2017, and they currently work off a waiting list. In addition, the average asking rent of the competing market rate communities in the area is over $200 higher than the average ef fective rent at Deerbrook Apartments.
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8 ADG MULTIFAMILY
72,600 123 590 RENTABLE SQUARE FEET TOTAL UNITS AVG SF Studio 26 #1 Bedrooms 77 #2 Bedrooms 20 % Leased 98% PROPERTY SUMMARY DEER APARTMENTSBROOK SQUARE RIDGE ADG9 MULTIFAMILY
DEER BROOK APARTMENTS VALUE ADD OPPORTUNITY All Roofs replaced since 2009 • SQUAREBuilding #13 2009 • Building #17 - 2010 • Building #12 - 2015 • Building #16 &17 - 2017 • Building #11 - 2020 • Building #14 2021 DEFERRED MAINTENANCE ADDRESSED: • All gutters and down spouts replaced since 2009 • All exterior lighting posts replaced since 2019 • Blacktop resurfaced in 2012 • Over 50% of waterline manifolds replaced since 2016 • 90% of storm water basins replaced since 2012 • Multiple surface drainage updates resulting in zero standing water on property after heavy storms • Laundry room updated with new flooring, paint, doorway, plumbing connections, and LED lighting. Two new washers in 2022 • RIDGEAll buildings: 2012-2019 10 ADG MULTIFAMILY
EXTERIOR EXTERIOR SIGN OVERVIEW ADG11 MULTIFAMILY
KITCHEN MORE PHOTOS DEERBROOK APARTMENTS BEDROOM EXTERIOR BATHROOM 12 ADG MULTIFAMILY
SHARED LAUNDRY KITCHEN LIVINGROOM BATHROOM ADG13 MULTIFAMILY
DEER BROOK APARTMENTS YEAR BUILT 1979 / 1980 UNIT COUNT 123 AVERAGE UNIT SIZE 590 RENTABLE SQFT 72,600 OCCUPANCY 98% PARKING 210 Free Surface Spots PARKING RATIO 1.7 # OF BUILDINGS 17 FOUNDATION CRAWL SPACES FRAME STICK ROOF PITCHED ASPHALT SHINGLE & METAL (2009-2021) PROPERTY SNAPSHOT 1100 NORTHVIEW DRIVE, HILLSBORO, OH 45133 SUMMARY WIRING COPPER HVAC ELECTRIC PTAC ( ALSO ELECTRIC BASEBOARD IN ONE BEDROOM LAYOUTS) ELECTRICUTILITIES TENANT WATER OWNER SEWER OWNER TRASH OWNER FLAT RUB $50,$60,$70: EFFICIENCY 1x1, 2x1 14 ADG MULTIFAMILY
DEERBROOK APARTMENTS * 56 MILES (1 HR 7 MINS) 60 MILES (1 HOUR) 73 MILES (1 HR 24 MINS) ADG15 MULTIFAMILY
02SECTION LOCAL COMPETITORS
COMPETITORS
LOCAL COMPETITORS 1 HI-LAND TERRACE APTS 2 434 SOUTH WEST STREET 3 TREEWOOD APTS 4 GOLDEN MANOR RENT COMPARABLES * 2 4 1 3 DEER BROOK APARTMENTS
UNITS 44 YEAR BUILT 1971 OCCUPANCY 97.2% UNIT MIX # Units Unit SF Rent Rent/SF Studio 22 500 $568 $1.14 One Bedroom 22 650 $644 $0.99 GOLDENAPARTMENTSMANOR
APARTMENTSTREEWOOD UNITS 44 YEAR BUILT 1940 OCCUPANCY 100.0% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 22 670 $480 $0.72 Two Bedroom 22 918 $510 $0.56
UNITS 40 YEAR BUILT 1971 OCCUPANCY N/A UNIT MIX # Units Unit SF Rent Rent/SF Two Bedroom 24 1000 $721 $0.72 Three Bedroom 16 1200 $828 $0.69 Four Bedroom 8 1400 $966 $0.69 HILANDAPARTMENTSTERRACE
434-442 SOUTH WEST STREET UNITS 5 YEAR BUILT 1992 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Two Bedroom 5 900 $745 $0.83
03SECTION LOCAL
LOCAL MARKET
26 ADG MULTIFAMILY
Hillsboro has 6 major highways that all lead to the center of town. US 50, US 62, SR 73, SR 138, SR 247, SR 124, centrally located to get you anywhere you need to go. Close proximity to some of the largest attractions in South ern SerpentOhio.Mound, Longs Retreat, Rocky Fork Lake, Amish com munities, Fort Hill, Fort Salem, Paint Creek State Park, History Museums, which include hiking trails, kayaking, cabin rentals, campgrounds, and more!
LOCATION
COMMUNITY
Hillsboro is home to 6500 residents. The Historic feel but still all the hustle & bustle. Known for its charm, shopping, events, and tight knit community. We welcome new residents and business es with open arms.
We offer seamless & expedited permitting processes, financial incentives, tax increment financing, and local RLF/CDBG funds. Expedited processes are key to quick development, whether it is new or expanding an existing business.
DEVELOPMENT
HILLSBORO
SOUTHERN STATE COMMUNITY COLLEGE
Located in beautiful southern Ohio, Southern State is a two-year community college that serves the diverse needs of its constituents. After changing to Southern State Community College in 1977, the curriculum expanded to meet the demands of students seeking specific career training as well as the needs of those students wishing to trans fer after their first two-years of education. Southern State Community College serves a five-county area including Adams, Brown, Clinton, Highland, and Fayette Counties. Southern State Community College has a total enrollment of 2,018 students. The full-time enrollment at Southern State Community College is 564 students and the part-time enrollment is 1,454.
Highland District Hospital is a critical access designated, 25-bed acute care facility. We currently employ more than 340 people and benefit from the services of 50 community volunteers. Our medical staff includes over 100 physicians and 15 mid-level providers, representing over 25 specialties and subspecialties. While we are a commu nity-centered hospital, we are also known for our technology and sophisticated healthcare services. Our service area includes over 65,000 residents from Highland County and surrounding counties.
HIGHLAND DISTRICT HOSPITAL
NEIGHBORING EMPLOYERS
Seal-Tite has been investing in retooling and software to meet increased demand from customers. The investment will result in the creation of 80 new jobs. Headquartered in Hillsboro, the company traces its root back to 1900 when it started as a sheet metal shop in Cincinnati manu facturing galvanized duct, pipe and fittings. Seal-Tite products have always been designed and manufactured for the ener gy-efficient distribution of conditioned air throughout the living space of residential homes, multifamily units and light commer cial facilities. SEAL TITE HOBART
04SECTION FINANCIAL
FINANCIAL BREAKDOWN
AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL POTENTIALRENT RENT/UNIT RENT/SF TOTAL POTENTIALRENT RENT/UNIT RENT/SF TOTAL POTENTIALRENT StudioSUMMARY 26 Units 400 SF 10,400 SF $346.47 $0.87 $9,008 $368.85 $0.92 SF $9,590 $500.00 $1.25 SF $13,000 One Bedroom 77 Units 600 SF 46,200 SF $386.99 $0.64 $29,798 $434.81 $0.72 SF $33,480 $650.00 $1.08 SF $50,050 Two Bedroom 20 Units 800 SF 16,000 SF $544.00 $0.68 $10,880 $561.25 $0.70 SF $11,225 $750.00 $0.94 SF $15,000 Totals / Wtd. Averages 123 Units 590 SF 72,600 SF $403.96 $0.68 SF $49,687 $441.42 $0.75 SF $54,295 $634.55 $1.08 SF $78,050 UNIX MIX SUMMARY DEER BROOK APARTMENTS - FINANCIALS UNIT DISTRIBUTION UNIT RENTS Pro Forma ProjectionAvg. Effective 63% One Bedroom One Bed 21% Studio Studio 16% Two Bedroom Two Bed 32 ADG MULTIFAMILY
AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL POTENTIALRENT RENT/UNIT RENT/SF TOTAL POTENTIALRENT RENT/UNIT RENT/SF TOTAL POTENTIALRENT 0BR/1BAStudio Square 12 Units 400 SF 4,800 SF $350.00 $0.88 SF $4,200 $350.00 $0.88 SF $4,200 $500.00 $1.25 SF $6,000 0BR/1BA Ridge 14 Units 400 SF 5,600 SF $343.45 $0.86 SF $4,808 $385.00 $0.96 SF $5,390 $500.00 $1.25 SF $7,000 Totals / Wtd. Averages 26 Units 400 SF 10,400 SF $346.47 $0.87 SF $9,008 $368.85 $0.92 SF $9,590 $500.00 $1.25 SF $13,000 One 1BR/1BABedroomSquare 39 Units 600 SF 23,400 SF $401.03 $0.67 SF $15,640 $420.00 $0.70 SF $16,380 $650.00 $1.08 SF $25,350 1BR/1BA Ridge 38 Units 600 SF 22,800 SF $372.58 $0.62 SF $14,158 $450.00 $0.75 SF $17,100 $650.00 $1.08 SF $24,700 Totals / Wtd. Averages 77 Units 600 SF 46,200 SF $386.99 $0.64 SF $29,798 $434.81 $0.72 SF $33,480 $650.00 $1.08 SF $50,050 Two 2BR/1BABedroomSquare 13 Units 800 SF 10,400 SF $551.92 $0.69 SF $7,175 $570.00 $0.71 SF $7,410 $750.00 $0.94 SF $9,750 2BR/1BA Ridge 7 Units 800 SF 5,600 SF $529.29 $0.66 SF $3,705 $545.00 $0.68 SF $3,815 $750.00 $0.94 SF $5,250 Totals / Wtd. Averages 20 Units 800 SF 16,000 SF $544.00 $0.68 SF $10,880 $561.25 $0.70 SF $11,225 $750.00 $0.94 SF $15,000 UNIX MIX BREAKDOWN DEER BROOK APARTMENTS - FINANCIALS ADG33 MULTIFAMILY
CURRENT (RENT ROLL/T3 INCOME; ADJUSTED TRAILING EXPENSES) YEAR 1 (Recapture LTL, Stabilized Occupancy and Other Income, Normalized Expenses) GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $672,720 RR 5,469 $936,600 7,615 Gain (Loss) to Lease ($83,808) 12.46% (681) ($121,758) 13.00% (990) GROSS SCHEDULED RENT $588,912 RR 4,788 $814,842 6,625 OTHER INCOME Utility RUBS Square Note 3 0.00% 0 $42,541 5.22% 346 Utility RUBS Ridge 0.00% 0 $41,280 5.07% 336 Laundry Income 0.00% 0 $8,400 1.03% 68 Other Income 0.00% 0 $0 0.00% 0 Total Other Income 0.00% 0 $92,221 11.32% 750 GROSS POTENTIAL INCOME $661,018 5,374 $907,063 7,374 Physical Vacancy 0.00% 0 ($40,742) 5.00% (331) Bad Debt 0.00% 0 ($8,148) 1.00% (66) EFFECTIVE GROSS INCOME $661,018 T8 87.54% 5,374 $858,172 81.00% 6,977 RealNON-CONTROLLABLEEstateTaxes % of EGI Per Unit % of EGI Per Unit 2021 Taxes Paid $43,711 Auditor 6.61% 355 $43,711 5.09% 355 Total Real Estate Taxes $43,711 6.61% 355 $43,711 5.09% 355 Insurance $19,599 2.96% 159 $36,900 4.30% 300 UtilitiesUtilities $108,940 T8 16.48% 886 $111,119 12.95% 903 Total Utilities $108,940 16.48% 886 $111,119 12.95% 903 Total Non-Controllable $172,249 26.06% 1,400 $191,729 22.34% 1,559 ContractCONTROLLABLEServicesSnowRemoval $0 0.00% 0 $3,075 0.36% 25 Landscaping/Grounds $0 0.00% 0 $9,225 1.07% 75 Pest Control $0 0.00% 0 $3,075 0.36% 25 Total Contract Services $5,237 T8 0.79% 43 $15,375 1.79% 125 Repairs & Maintenance $59,770 T8 9.04% 486 $61,500 7.17% 500 Marketing & Promotion $0 0.00% 0 $1,845 0.21% 15 On-Site Payroll $48,148 T8 7.28% 391 $104,550 12.18% 850 Payroll Taxes & Benefits $0 0.00% 0 $12,300 1.43% 100 General & Administrative $1,586 T8 0.24% 13 $6,150 0.72% 50 Management Fee $72,975 T8 11.04% 593 $42,909 5.00% 349 Replacement & Reserves $31,365 Note 1 4.74% 255 $31,992 3.73% 260 Total Controllable $219,080 33.14% 1,781 $276,621 32.23% 2,249 TOTAL EXPENSES $391,329 59.20% 3,182 $468,350 54.58% 3,808 NET OPERATING INCOME $269,689 40.80% 2,193 $389,822 45.42% 3,169 EXPENSES&INCOME FINANCIALS-APARTMENTSBROOKDEER EXPENSEINCOME 34 ADG MULTIFAMILY
YEAR 2 (...Stabilized Occupancy) YEAR 3 (Projected Rent/ Expense Increase after Stabilization) % of GPR Per Unit % of GPR Per Unit $964,698 7,843 $993,639 8,078 ($19,294) 2.00% (157) ($19,873) 2.00% (162) $945,404 7,686 $973,766 7,917 $43,817 4.63% 356 $45,132 4.63% 367 $42,518 4.50% 346 $43,794 4.50% 356 $8,652 0.92% 70 $8,912 0.92% 72 $0 0.00% 0 $0 0.00% 0 $94,988 10.05% 772 $97,837 10.05% 795 $1,040,392 8,458 $1,071,603 8,712 ($47,270) 5.00% (384) ($48,688) 5.00% (396) ($9,454) 1.00% (77) ($9,738) 1.00% (79) $983,667 92.00% 7,997 $1,013,177 92.00% 8,237 % of EGI Per Unit % of EGI Per Unit $43,711 4.44% 355 $43,711 4.44% 355 $43,711 4.44% 355 $43,711 4.44% 355 $37,638 3.83% 306 $38,391 3.90% 312 $113,341 11.52% 921 $115,608 11.75% 940 $113,341 11.52% 921 $115,608 11.75% 940 $194,690 19.79% 1,583 $197,709 20.10% 1,607 $3,137 0.32% 26 $3,199 0.33% 26 $9,410 0.96% 77 $9,598 0.98% 78 $3,137 0.32% 26 $3,199 0.33% 26 $15,683 1.59% 128 $15,996 1.63% 130 $62,730 6.38% 510 $63,985 6.50% 520 $1,882 0.19% 15 $1,920 0.20% 16 $106,641 10.84% 867 $108,774 11.06% 884 $12,546 1.28% 102 $12,797 1.30% 104 $6,273 0.64% 51 $6,398 0.65% 52 $49,183 5.00% 400 $50,659 5.00% 400 $32,632 3.32% 265 $33,285 3.38% 271 $287,570 29.23% 2,338 $293,813 29.72% 2,377 $482,260 49.03% 3,921 $491,523 49.97% 3,996 $501,408 50.97% 4,076 $521,655 53.03% 4,241 Underwriting Notes # Note 1 Replacement & Reserves: added based on market norm of $255 per unit per year 2 Non-Revenue Unit: Used as an office 3 On P&L other income not separate from rental income ADG35 MULTIFAMILY
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