Grafton Hills Apartments

GRAFTON HILLS

CONFIDENTIALITY

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

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.

INVESTMENT

GRAFTON HILLS PROPERTY SNAPSHOT

Property Name: Grafton Hills Apartments

Property Address: 200 Central Ave. / 333 Superior Ave.

City, State, Zip: Dayton, OH 45406

County: Montgomery

Year Built/Reno: 1967

Number Of Units: 42

Avg Unit Size: 419

Rentable Sqft: 17,592

Number of Parcels: 1

Lot Size (Acres): 0.4591

Parking Type: On-Street / Garage

# of Buildings: 2

# of Stories: 3

Occupancy: 88%

Foundation: Concrete

Framing: Wood

Roof Type/Age: Central - Flat / 10-15 yrs old; Superior - Pitched / 2021

Exterior of Building: Brick

Windows Age/Pane: Double Hung / 2022 ALL

Wiring: Copper

UTILITIES

Electric: Tenant

Gas(heating): Owner

Gas(cooking): Tenant

Water/Sewer: Owner

Trash: Owner

GRAFTON HILLS APARTMENTS INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present Grafton Hills Apartments, a 42-Unit multifamily apartment community located in the Grafton Hill submarket, less than 1 mile north of Downtown Dayton. The portfolio consists of 32 studios and 10 1-bedroom, 1 bathroom units. The community has received significant capital improvements ranging from updated interiors consisting of LVP Flooring and new appliances to new roofs and windows. The portfolio offers the incoming investor the value-add approach through continued renovations of the remaining vacant units, as well as the implementation of Utility Rubs and Garage Income.

SUBMARKET HIGHLIGHTS

• Excellent connectivity as the area sits minutes away from I-75, US35, and downtown Dayton’s amenities and employment

• Notable leisure/retail hubs and employers within a 10-minute drive of the submarket

- Leisure/Retail Hubs

- Day Air Ballpark

- Benjamin & Marian Schuster Performing Arts Center

- Levitt Pavilion

- Hollywood Gaming

UTILITY RUB IMPLEMENTATION

• Grafton Hills Apartments are currently paying all utilities besides electric for the tenants. However, only 3 of the 42 tenants have an utility RUB implemented. If utility RUBs are implemented by the incoming investor to the remaining tenants, an investor will be able to capture nearly $14,750 of additional income per year.

GARAGE INCOME

• Situated under the 200 Central Ave. building is 15 garage parking spaces. Current ownership has spent the time, energy, and effort to fully-restore the parking garage for tenant use. With the implementation of charging tenants for the garage parking space, an investor will be able to capture nearly $11,000 of additional income per year.

EMPLOYERS

• Kettering Health Dayton – Emergency Center

• Grandview Hospital

• Sinclair Community College

• CareSource

• KeyBank

• Premier Health

• Logistics and Manufacturing Hubs at the corner of Needmore Rd.& I-75

- LORD Corporation

- Supply Technologies

- Look Wall Tile

GRAFTON HILLS

UNIT AMENITIES

• LVP FLOORING

• FAUX-GRANITE COUNTERTOPS

• THROUGH WALL A/C

• PETS ALLOWED

COMPETITORS

GRAFTON HILLS APARTMENTS

RENT COMPS

Property Address: 303 Superior Ave

Year Built/Reno: 1967 Number Of Units: 29

APARTMENT INTERIOR AMENITIES

White/Black Appliances

LVP/Hardwood Floors

Bathroom Vanity

Bathroom Tub Surround

Wood Cabinets

COMMON AREA AMENITIES On-Site Laundry Off-Street Parking

UTILITIES RESPONSIBILITY Electric - Owner

Water/Sewer - Owner Gas - Owner Trash - Owner

Cable/Internet - Tenant

Property Address: 475 W Grand Ave

Year Built/Reno: 1966 Number Of Units: 28

APARTMENT INTERIOR AMENITIES

White Appliances

Tile/LVP Flooring

Bathroom Vanity

Bathroom Tub Surround

Wood Cabinets

COMMON AREA AMENITIES

On-Site Laundry Street Parking

Professional Management

24-HR Maintenance

UTILITIES RESPONSIBILITY Electric - Tenant Gas - Tenant

Water/Sewer - Owner Trash - Owner

Cable/Internet - Tenant

Property Address: The Rockwood

APARTMENT INTERIOR AMENITIES

COMMON AREA AMENITIES Buzzer Entry System

Parking Secured Entry

Number Of Units: 147

Black Appliances

Carpet/Tile Flooring

Bathroom Vanity Bathroom Tub Surround

COMMON AREA AMENITIES

On-Site Management

On-Site Laundry

Gas

Trash

GRAFTON HILLS APARTMENTS

RENT COMPS

Property Address: Wright View Apts Year Built/Reno: 1966

Property Address: 607 W Fairview Year Built/Reno: 1945

APARTMENT INTERIOR AMENITIES

White/Black Appliances

LVP/Hardwood Floors

Bathroom Vanity

Bathroom Tub Surround

Wood Cabinets

Owner

Cable/Internet - Tenant

APARTMENT INTERIOR AMENITIES

White Appliances

LVP/Tile Flooring

Double-Sink

Bathroom Vanity

Bathroom Tub Surround

COMMON AREA AMENITIES On-Site Laundry Off-Street Parking

Professional Management Company

UTILITIES RESPONSIBILITY Electric - Owner Gas - Owner

Water/Sewer - Trash Trash - Owner

Cable/Internet - Tenant

LOCAL COMPETITORS - STUDIO

LOCAL COMPETITORS - ONE BEDROOM

FINANCIAL BREAKDOWN

UNIX MIX SUMMARY

UNIX MIX BREAKDOWN

INCOME & EXPENSES

CURRENT RENT ROLL: 1/13/2023 INCOME/EXPENSES: COMPOSED OF FY2022 FINANCIALS YEAR 1

UNDERWRITING NOTES

# NOTE

1 Replacement & Reserves: added based on market norm of $255 per unit per year

2 Utility Income: Water/Sewer RUBS, currently at $35 a unit. 'Year 1' at all units with 85% occupancy and then

3 Other Income - Other: Laundry Income

4 Utilities: Includes trash pickup and common electric

5 Garage Income: 15 spots at $65/spot, with 75% occupied. 15% Vacancy 'Year 2'.

6 Vacancy: Normalized due to trailing being at 80% occupied.

7 Repairs/Maint & Payroll: Broken out 'Year 1', was consolidated into Repairs/Maint on trailing

LOCAL MARKET

DAYTON

Since the arrival of the first settlers on April 1, 1796, Dayton has always been a place for pioneering vision and change. They have hosted many firsts as the patent capital of the U.S. and provided the world with a staggering number of life-changing innovations and technological advancements. Today they’re still setting trends and promoting growth. In the research labs of Wright-Patterson Air Force Base, the University of Dayton, Wright State University, and many of the top businesses, the innovative spirit of Dayton continues to produce cutting-edge technology and dynamic solutions

to today’s biggest issues.

With the crossroads of Interstate 70 and 75, the railroad capacity, and the international airport, Dayton provides one of the most accessible cities in the nation. In fact, Dayton’s location puts it within one day’s drive of 60% of the U.S. population. The superior transportation makes us among the most competitive mid-sized cities for logistics.

ECONOMIC OVERVIEW

• Dayton is home to a diverse group of employers, including Wright-Patterson Air Force Base, large health and insurance networks, advanced manufacturing companies and educational entities.

• In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 10.0% year-over-year in 2nd quarter. In the year-ending 2nd quarter 2021, the metro’s inflation adjusted economic output expanded 12.9%.

• Dayton’s unemployment rate in May 2021 declined 9.1 points year-over-year to 5.2%. This unemployment rate was slightly below the national average of 5.5%.

• During the past year, job gains in Dayton were most pronounced in the Leisure/Hospitality Services sector followed by Trade/Transportation/Utilities and Manufacturing. Due to job losses stemming from the pandemic, Dayton’s current employment base now sits around 11,900 jobs, or about 3% below the 1st quarter 2008 level, prior to the Great Recession.

Population: 812,657

Median age: 33

DEMOGRAPHIC OVERVIEW

Dayton is a city located in Greene County and Montgomery County Ohio. It is also the county seat of Montgomery County. With a 2020 population of 140,343, it is the 6th largest city in Ohio and the 198th largest city in the United States . Dayton is currently declining at a rate of -0.02% annually and its population has decreased by -0.84% since the most recent census, which recorded a population of 141,527 in 2010. Spanning over 57 miles, Dayton has a population density of 2,533 people per square mile.

The average household income in Dayton is $46,430 with a poverty rate of 30.57%. The median rental costs in re-

DEMOGRAPHICS: STATISTICS

Msa median hhi: $32,540

1 - Year growth: 0.31%

Msa median home value: $97,545

1 - Year growth: 4.83%

cent years comes to $706 per month, and the median house value is $66,800. The median age in Dayton is 33 years, 31.6 years for males, and 34.4 years for females.

Part of Dayton is located in neighboring Greene County. The city is the sixth most populous in the state, and its metro area is the fourth largest in Ohio.

Average occupancy: 96.2%

Rent growth: 4.5%

SUPPLY

• The level of new apartment completions in Dayton were modest recently, as 525 units delivered in the year-ending 2nd quarter 2021. That annual completion volume compares to a low of 276 units and a high of 1,136 units over the past five years. Annual new supply averaged 630 units, and annual inventory growth averaged 1.2% over the past five years.

• Completions over the past year expanded the local inventory base 0.9%. Over the next year, inventory growth is set to slow with the scheduled addition of 280 units.

• At the end of 2nd quarter 2021, there were 404 units under construction, as construction volumes have slowed in recent years.

• Among submarkets, new supply over the past five years has been concentrated in South Montgomery County, which received 44% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be concentrated in Central Dayton/ Kettering.

OCCUPANCY

• Occupancy in the Dayton apartment market has ranged from 93.9% to 97.4% over the past five years, averaging 95.6%. Over the past year, occupancy gained 0.2 points, with the 2nd quarter 2021 rate landing at 96.8%.

• That occupancy rate ranked 12th amongst 29 key Midwest region markets.

• 2nd quarter 2021 occupancy registered at 95.8% in Class A units, 97.6% in Class B units and 96.8% in Class C units.

• Occupancy in Class B was generally tightest over the past five years.

• Among submarkets, 2nd quarter 2021 occupancy was strongest in North Dayton/ Miami County. The weakest reading was seen in Greene County. Over the past five years, North Dayton/ Miami County generally led for occupancy.

WRIGHT PATTERSON

Located in Dayton, Wright-Patterson Air Force Base (WPAFB) is one of the most diverse, largest, and organizationally complex bases in the Air Force. Not only is WPAFB the largest single-site employer in the entire state of Ohio, but it is also a center of innovation for the Air Force. It was selected as the “preferred location” for the F-35 Lightning II Hybrid Product Support Intergrator organization, which supports the entire F-35 enterprise. This would bring a minimum of 400 new jobs to the base. The potential impact to the region cannot only be measured in jobs alone, neighboring communities would benefit through the result of more growth for contractors and businesses. Wright-Patterson Air Force Base employs 27,500 military, civilian, and contract employees and has an annual economic impact of $4.3 billion.

“Wright Patterson AFB is the crown jewel of the state of Ohio, and our department will continue to do everything we can to accelerate the growth of the WPAFB and attract more jobs to the region.”

Eric Henry, Greene County’s Economic Development Coordinator

QUICK STATS

$4.3B ECONOMIC IMPACT

27,500 EMPLOYEES

8,000+ ACRES

1M+ ANNUAL VISITORS

HIGHER EDUCATION

UNIVERSITY OF DAYTON SINCLAR COMMUNITY COLLEGE

Founded in 1850, the University of dayton (UD) spans a massive 373-acres with state-of-the-art facilities in the downtown area. It boasts 38 academic, athletic, administrative, and research buildings, five resident halls, 18 student apartment complexes, and 473 houses (347 being owned by UD). In 2019, there were a total of 8,483 undergrad students enrolled. 85% of students live on-campus or in student neighborhoods. UD offers more than 80 undergraduate programs and 50 graduate and doctoral programs. UD has 17 Division I sports teams, 37 club sports, and 12 intramural sports. Since 2001, the NCAA tournament has had an impact of more than $70 million on dayton’s economy and UD Arena has hosted more Division I Basketball Championship gams than any other venue in the US.

Sinclair Community College was founded in 1887 and is located in downtown Dayton. Sinclair has a student to faculty ratio of 19:1, which is among the lowest at Ohio colleges. They offer over 250 degree and certificate programs and have 35 fully-online programs available. Tuition for a full-time undergraduate student at Sinclair is a tenth of the cost of a private four-year university and a third of the cost of a public four-year university. It is one of the largest community colleges in the nation, with an enrollment of over 30,000 students.

Sinclar Community College

WRIGHT STATE UNIVERSITY

Located in the Dayton area, Wright State University is a national public research university. WSU offers 140 undergraduate programs and 136 graduate programs. Wright State has 20 percent more affordable in-state tuition than the national average. WSU adds $1.5 billion into the region’s economy annually and supports more than 20,000 jobs through its spending on operations and research and through spending of students, alumni, and visitors. With a student body population of more than 13,000, there is only a 3,000 on-campus student housing

capacity. WSU’s Nutter Center is southwest Ohio’s premier sports and entertainment facility. With a capacity of 11,200, it has also been recognized nationally as a top venue of its size.

$1.5B ECONOMIC IMPACT

20,000+ JOBS SUPPORTED

13,000+ STUDENTS ENROLLED 2,500+ WSU FACULTY