Hillside Village OM

Page 1

HILLSIDE VILLAGE OFFERING MEMORANDUM

CONTENTS

LEAD AGENTS

Alden Simms

Associate Cincinnati Office

D. 513.878.7759

alden.simms@marcusmillichap.com

Jordan Dickman

First Vice President Investments

Cincinnati Office

D. 513.878.7735

jordan.dickman@marcusmillichap.com

Nick Andrews

First Vice President Investments

Cincinnati Office

D. 513.878.7741

nicholas.andrews@marcusmillichap.com

Austin Sum

Senior Associate

Cincinnati Office

D. 513.878.7747

austin.sum@marcusmillichap.com

“OUR COMMITMENT IS TO HELP OUR CLIENTS CREATE

AND PRESERVE WEALTH BY PROVIDING THEM WITH

THE BEST REAL ESTATE INVESTMENT SALES, FINANCING, RESEARCH AND ADVISORY SERVICES AVAILABLE.”

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY DISCLAIMER

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.

SECTIONS
01 - THE INVESTMENT 02 - local competitors 03 - FINANCIALS 04 - LOCAL MARKET 06 14 24 32
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES

UNRIVALED SUCCESS IN THE MIDWEST

YOUR TEAM

JORDAN DICKMAN

FIRST VICE PRESIDENTS DIRECTOR, NMHG

NICK ANDREWS

FIRST VICE PRESIDENTS DIRECTOR, NMHG

AUSTIN SUM

SENIOR INVESTMENT ASSOCIATE

BRIAN JOHNSTON

INVESTMENT ASSOCIATE

AUSTIN Hall

INVESTMENT ASSOCIATE

ALDEN SIMMS

INVESTMENT ASSOCIATE

BROKER SUPPORT

SAM PETROSNIO

VALUATION & RESEARCH

CORPORATE SUPPORT

LIZ POPP

MIDWEST OPERATIONS MANAGER

JOSH CARUANA

VICE PRESIDENT

REGIONAL MANAGER

INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY

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

SKyler WILSON

CLIENT RELATIONS MANAGER

BRITTANY CAMPBELL-KOCH

DIRECTOR OF OPERATIONS

ALEX PAPA

MARKETING COORDINATOR

THE INVESTMENT

01

HILLSIDE VILLAGE

INVESTMENT HIGHLIGHTS

Marcus and Millichap is pleased to present Hillside Village, 20 units of apartment living in one of the most sought-after submarkets in the Dayton area, Kettering. There is a favorable unit mix with eighteen 2-beds, and 1-bath units (750 SF) and two (1000 SF) 2 beds 1 bath townhomes. This provides an incoming investor a unique investment just minutes from Downtown.

DAYTON’S BOOMING DOWNTOWN NEIGHBORHOOD AND THRIVING HEALTHCARE SECTOR

LEADING SUBMARKET FUNDAMENTALS

Kettering boasts an average HHI of $83,949 in 2022 with the median HHI at $65,054. The median sale price of homes in Kettering is $260,00 as of February 2023, and the Kettering Fairmont High School is ranked in the top 20 percentile of the Dayton Metro Public Schools. These strong market fundamentals are reflected in rental growth and occupancy. The average rent in Kettering has increased 10.2% over the last year and 4% over the 5-year average while maintaining an average occupancy of 96.6%.

Downtown Dayton, the region’s entertainment hub, is located within 5 minutes of the asset and offers professional sports, farmers markets, museums, nightlife, and concert venues. Dayton’s four largest medical employers, Premier Health Partners, Kettering Health Network, Children’s Hospital and CareSource are all within 15 minutes of the property and a total of 25,085 employees.

LOCATED MINUTES FROM DAYTON’S PREMIER RETAIL

Within 15 minutes (6 miles) of The Greene in Beavercreek, a mixed-use asset featuring offices, apartments, and high end retail including Apple, Forever 21, Lululemon and Nordstrom Rack. Within 17 minutes (7 miles) to The Dayton Mall with retailers including Macy’s, Dick’s Sporting Goods, H&M, and JC Penney. Within 20 minutes (13.3 miles) of The Mall at Fairfield Commons.

DEAL SUMMARY

15,500 20 775

PROPERTY SUMMARY RENTABLE SQUARE FEET TOTAL UNITS AVG SF 2BD 18 2BD/1 BA - TH 2 Occupancy 100% *

HILLSIDE VILLAGe

Property Address: 2240-2270 S Patterson Blvd

City, State, Zip: Dayton,OH, 45409

Submarket: Kettering

County: Montgomery

Year Built/Reno: 1948/2023

Number Of Units: 20

Avg Unit Size: 775

Rentable Sqft: 15.500

Number of Parcels: 1

Lot Size (Acres): 1.179

Density: 16.96

# of Buildings: 1

# of Stories: 3

Current Occupancy: 100%

Framing: Wood

Roof Type/Age: Pitched

Exterior of Building: Brick Veneer

Electric: Tenant Gas: Owner

Water/Sewer: Owner

PROPERTY DETAILS

RENT COMPETITORS

02

location

C E
competitors ADIROND A CK TERRA
CHATEAUX L’AIGLON
2 BED - $1,190 2 BED - $1,150
PINETRE E APTS
2 BED - $1,180
KETWOO D
HUNTLEY R I DGE
2 BED - $1,025
LAKESHOR E PLACE
2 BED - $1,150
T H E ECHELO N
2 BED - $896
PATTERSO N HOUSE
2 BED - $1,245 2 BED - $896

LOCAL COMPETITORS

TWO BEDROOM
Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF The Echelon 1962 102 820 $1,245 $1.52 Adirondack Terrace 1951 23 1000 $1,190 $1.19 Pinetree Apartments 1974 25 1200 $1,180 $0.98 Huntley Ridge 1945 88 875 $1,150 $1.31 Chateaux L'Aiglon 1968 38 820 $1,150 $1.40 Subject Pro Forma 1948 68 775 $1,053 $1.36 Average 1960 68 925 $1,034 $1.12 Ketwood Apartments 1979 93 896 $1,025 $1.14 Subject Average Effective 1948 68 775 $950 $1.23 Patterson Place 1966 67 891 $896 $1.01 Lakeshore Place 1963 57 826 $896 $1.08
Units 23 Year Built 1951 Occupancy 97.0% UNIT MIX UNITS SQFT RENT RENT/SF Two Bedroom 23 1000 $1,190 $1.19 Apartment Interior Amenities Stainless Steel Appliances LPV Flooring Carpet In Bedrooms Freshly Painted Common Area Amenities Laundry Facilities Utilities Responsibility Resident pays sewer Resident pays water Resident pays gas Resident pays trash Resident pays electric 2358 S Patterson Blvd
RENT COMPETITORS ADIRONDACK terrace

chateaux L’Aiglon

RENT
COMPETITORS
UNITS 68 YEAR BUILT 1968 OCCUPANCY 93.1% UNIT MIX UNITS SQFT RENT RENT/SF Studio 16 460 $663 $1.06 One Bedroom 14 627 $682 $1.48 Two Bedroom 38 820 $1,150 $1.40 Apartment Interior Amenities Balcony/Patio Washer/Dryer Internet Common Area Amenities Fitness Center Pool Community Room Utilities Responsibility Resident Pays Electricity Resident Pays Gas Resident pays sewer Resident pays trash Resident pays water 15 Rue Royale

RENT COMPETITORS

HUNTLEY RIDGE

UNITS 88 YEAR BUILT 1945 OCCUPANCY 83.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 8 550 $819 $1.49 Two Bedroom 80 875 $1,150 $1.31 Apartment Interior Amenities Washer/Dryer Hookups Available Common Area Amenities High Speed Internet Access Hardwood Floors
Responsibility
Pays Electricity
Pays Sewer
Pays Trash Removal
Water 512 Aberdeen Ave
Utilities
Resident
Property
Property
Property Pays

RENT COMPETITORS

THE ECHELON

Units 102 Year Built 1962 Occupancy N/A UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 48 464 $828 $1.78 Two Bedroom 42 820 $1,245 $1.56 Three Bedroom 12 1068 $1,668 $1.67 Apartment Interior Amenities Internet Balcony/Patio Common Area Amenities Volleyball Court Basketball Court Laundry Facilities Pool 344 Firwood Dr Utilities Responsibility Resident Pays Electricity Resident pays partial gas Property pays sewer Property pays Trash Removal Property pays water

HILLSIDE VILLAGE FINANCIALS

03

HILLSIDE VILLAGE - FINANCIALS

Unit MIX SUMMARY

AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL SUMMARY Two Bedroom 20 Units 775 SF 15,500 SF $950.00 $1.23 $19,000 $950.00 $1.23 SF $19,000 $1,052.50 $1.36 SF $21,050 Totals / Wtd. Averages 20 Units 775 SF 15,500 SF $950.00 $1.23 SF $19,000 $950.00 $1.23 SF $19,000 $1,052.50 $1.36 SF $21,050
UNIT
DISTRIBUTION UNIT RENTS

UNIT MIX BREAKDOWN

HILLSIDE VILLAGE - FINANCIALS
AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL Two Bedroom 2BR/1BA 18 Units 750 SF 13,500 SF $950.00 $1.27 SF $17,100 $950.00 $1.27 SF $17,100 $1,050.00 $1.40 SF $18,900 2BR/1BA - TH 2 Units 1,000 SF 2,000 SF $950.00 $0.95 SF $1,900 $950.00 $0.95 SF $1,900 $1,075.00 $1.08 SF $2,150 Totals / Wtd. Averages 20 Units 775 SF 15,500 SF $950.00 $1.23 SF $19,000 $950.00 $1.23 SF $19,000 $1,052.50 $1.36 SF $21,050
HILLSIDE VILLAGEFINANCIALS EXPENSE INCOME INCOME
CURRENT YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $228,000 11,400 $252,600 12,630 Gain (Loss) to Lease ($4,560) 2.00% (228) ($5,052) 2.00% (253) GROSS SCHEDULED RENT $223,440 11,172 $247,548 12,377 OTHER INCOME Garage Income $0 0.00% 0 $14,400 Note 3 5.82% 720 Laundry Income $0 0.00% 0 $6,384 Note 4 2.58% 319 Total Other Income $0 0.00% 0 $20,784 8.40% 1,039 GROSS POTENTIAL INCOME $223,440 11,172 $268,332 13,417 Physical Vacancy ($11,172) Note 2 5.00% (559) ($12,377) 5.00% (619) EFFECTIVE GROSS INCOME $212,268 93.00% 10,613 $255,955 93.00% 12,798 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI Per Unit 2022 Taxes Paid $27,173 Auditor 12.80% 1,359 $27,173 10.62% 1,359 Total Real Estate Taxes $27,173 12.80% 1,359 $27,173 10.62% 1,359 Insurance $6,505 T12 3.06% 325 $8,000 3.13% 400 Utilities Utilites $33,586 T12 15.82% 1,679 $34,258 13.38% 1,713 Total Utilities $33,586 15.82% 1,679 $34,258 13.38% 1,713 Total Non-Controllable $67,264 31.69% 3,363 $69,431 27.13% 3,472 CONTROLLABLE Contract Services Snow Removal $700 Note 2 0.33% 35 $700 0.27% 35 Landscaping/Grounds $2,000 Note 2 0.94% 100 $2,000 0.78% 100 Pest Control $700 Note 2 0.33% 35 $700 0.27% 35 Total Contract Services $3,400 1.60% 170 $3,400 1.33% 170 Repairs & Maintenance $8,146 T12 3.84% 407 $12,000 4.69% 600 Marketing & Promotion $0 0.00% 0 $1,000 0.39% 50 On-Site Payroll $18,000 Note 2 8.48% 900 $18,000 7.03% 900 Payroll Taxes & Benefits $0 0.00% 0 $2,000 0.78% 100 General & Administrative $767 T12 0.36% 38 $2,000 0.78% 100 Management Fee $10,800 T12 5.09% 540 $15,357 6.00% 768 Replacement & Reserves $5,100 Note 1 2.40% 255 $5,253 2.05% 263 Total Controllable $46,213 21.77% 2,311 $59,010 23.05% 2,951 TOTAL EXPENSES $113,478 53.46% 5,674 $128,441 50.18% 6,422 NET OPERATING INCOME $98,790 46.54% 4,940 $127,513 49.82% 6,376
& EXPENSES
INCOME EXPENSE

# NOTE

UNDERWRITING NOTES

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

2 Added based on market norms

3 Garage Income: At $75/month with 80% occupancy

4 Lanundry Income: At $28/month with 95% occupancy

YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit $260,178 13,009 $267,983 13,399 ($5,204) 2.00% (260) ($5,360) 2.00% (268) $254,974 12,749 $262,624 13,131 $14,832 5.82% 742 $15,277 5.82% 764 $6,576 2.58% 329 $6,773 2.58% 339 $21,408 8.40% 1,070 $22,050 8.40% 1,102 $276,382 13,819 $284,673 14,234 ($12,749) 5.00% (637) ($13,131) 5.00% (657) $263,633 93.00% 13,182 $271,542 93.00% 13,577 % of EGI Per Unit % of EGI Per Unit $27,173 10.31% 1,359 $27,173 10.31% 1,359 $27,173 10.31% 1,359 $27,173 10.31% 1,359 $8,240 3.13% 412 $8,487 3.22% 424 $34,943 13.25% 1,747 $35,642 13.52% 1,782 $34,943 13.25% 1,747 $35,642 13.52% 1,782 $70,356 26.69% 3,518 $71,302 27.05% 3,565 $721 0.27% 36 $743 0.28% 37 $2,060 0.78% 103 $2,122 0.80% 106 $721 0.27% 36 $743 0.28% 37 $3,502 1.33% 175 $3,607 1.37% 180 $12,360 4.69% 618 $12,731 4.83% 637 $1,030 0.39% 52 $1,061 0.40% 53 $18,540 7.03% 927 $19,096 7.24% 955 $2,060 0.78% 103 $2,122 0.80% 106 $2,060 0.78% 103 $2,122 0.80% 106 $15,818 6.00% 791 $16,293 6.00% 791 $5,411 2.05% 271 $5,573 2.11% 279 $60,781 23.05% 3,039 $62,604 23.57% 3,106 $131,137 49.74% 6,557 $133,906 50.79% 6,695 $132,496 50.26% 6,625 $137,636 52.21% 6,882

CASH FLOW

INCOME EXPENSE HILLSIDE
VILLAGEFINANCIALS
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE APR-2024 YE APR-2025 YE APR-2026 YE APR-2027 YE APR-2028 YE APR-2029 YE APR-2030 YE APR-2031 YE APR-2032 YE APR-2033 GROSS POTENTIAL RENT All Units at Market Rent $228,000 $252,600 $260,178 $267,983 $276,023 $284,304 $292,833 $301,618 $310,666 $319,986 $329,586 Gain (Loss) to Lease ($4,560) ($5,052) ($5,204) ($5,360) ($5,520) ($5,686) ($5,857) ($6,032) ($6,213) ($6,400) ($6,592) GROSS SCHEDULED RENT $223,440 $247,548 $254,974 $262,624 $270,502 $278,617 $286,976 $295,585 $304,453 $313,586 $322,994 Total Other Income $0 $20,784 $21,408 $22,050 $22,711 $23,393 $24,094 $24,817 $25,562 $26,329 $27,118 GROSS POTENTIAL INCOME $223,440 $268,332 $276,382 $284,673 $293,214 $302,010 $311,070 $320,402 $330,015 $339,915 $350,112 Physical Vacancy ($11,172) ($12,377) ($12,749) ($13,131) ($13,525) ($13,931) ($14,349) ($14,779) ($15,223) ($15,679) ($16,150) EFFECTIVE GROSS INCOME $212,268 $255,955 $263,633 $271,542 $279,689 $288,079 $296,722 $305,623 $314,792 $324,236 $333,963 Real Estate Taxes $27,173 $27,173 $27,173 $27,173 $27,989 $28,828 $29,693 $30,584 $31,501 $32,446 $33,420 Insurance $6,505 $8,000 $8,240 $8,487 $8,742 $9,004 $9,274 $9,552 $9,839 $10,134 $10,438 Utilities $33,586 $34,258 $34,943 $35,642 $36,711 $37,812 $38,947 $40,115 $41,319 $42,558 $43,835 Contract Services $3,400 $3,400 $3,502 $3,607 $3,715 $3,827 $3,942 $4,060 $4,182 $4,307 $4,436 Repairs & Maintenance $8,146 $12,000 $12,360 $12,731 $13,113 $13,506 $13,911 $14,329 $14,758 $15,201 $15,657 Marketing & Promotion $0 $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305 On-Site Payroll $18,000 $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 $21,493 $22,138 $22,802 $23,486 Payroll Taxes & Benefits $0 $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460 $2,534 $2,610 General & Administrative $767 $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460 $2,534 $2,610 Management Fee $10,800 $15,357 $15,818 $16,293 $16,781 $17,285 $17,803 $18,337 $18,888 $19,454 $20,038 Replacement & Reserves $5,100 $5,253 $5,411 $5,573 $5,740 $5,912 $6,090 $6,272 $6,461 $6,654 $6,854 TOTAL EXPENSES $113,478 $128,441 $131,137 $133,906 $137,923 $142,061 $146,323 $150,713 $155,234 $159,891 $164,688 NET OPERATING INCOME $98,790 $127,513 $132,496 $137,636 $141,765 $146,018 $150,399 $154,911 $159,558 $164,345 $169,275 INCOME EXPENSE

*Calculated as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 Income Gross Potential Rent 10.79% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenses Expenses 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Management Fee** 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable 2240 S Patterson Blvd N64-03301-0017 1948 1.18 $734,100 $256,940 103.855 $27,173 Total 1.18 $734,100 $256,940 $27,173

LOCAL MARKET

04

ECONOMY

1| In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 9.6% year-over-year in 2nd quarter. 2| In the year-ending 1st quarter 2023, the metro’s inflation- adjusted economic output expanded 0.2%. 3| At the same time, the metro recorded a net gain of 9,100 jobs, expanding the employment base 2.4%. 4| As such, Dayton’s unemployment rate in February 2023 declined 0.4 points year-over-year to 3.9%, in line with the national average of 3.9%. 5| Due to job losses stemming from the pandemic, Dayton’s current employment base now sits roughly 1,800 jobs or about 1% below the pre-pandemic level in February 2020.

RENT

1| In 1st quarter 2023, effective asking rents for new leases were up 6.8% year-over-year. That annual rent performance was above the market’s five-year average of 5.1%. 2| Looking at product classes in Dayton, Class A led for rent performance over the past five years. In 1st quarter 2023, annual effective rent change registered at 7.7% in Class A units, 6.2% in Class B units and 6.7% in Class C units. 3| Among submarkets, the strongest annual rent change performances over the past year were in Greene County (9.1%) and North Dayton/Miami County (8.9%). 4| The weakest performances were in Northwest Dayton (5.2%) and Central Dayton/Kettering (5.5%). 5| As of 1st quarter 2023, effective asking rental rates in Dayton averaged $1,078 per month, or $1.183 per square foot.

UNITS COMPLETIONS BY QUARTER

DAYTON JANUARY FEBRUARY MARCH APRIL MAY JUNE QUARTER 1 0 200 300 400 500 600
COMPLETED UNDER CONSTRUCTION
Historic & Projected
22’ Q1 22’ Q2 22’ Q3 22’ Q4 23’ Q1 23’ Q2 23’ Q3 23’ Q4 24’ Q1
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER RENT GROWTH SECTOR QUARTERLY YEARLY Greene County 1.3% 9.1% North Dayton / Miami County -0.3% 8.9% South Montgomery County 0.0% 5.6% Central Dayton / Kettering -0.3% 5.5% Northwest Dayton -0.4% 5.2% EMPLOYMENT Unemployment Rate 3.9% Jobs Added YTD 9,100 Q1 2023 MARKET SNAPSHOT Pre1970s 1970s 1980s 1990s 2000+ Occupancy 95.8% 95.3% 95.8% 96.7% 95.2% Y-O-Y Rent Growth 7.4% 6.4% 7.0% 7.2% 6.4% Average Rent Per Unit $873 $927 $993 $1,181 $1,442 20% 15% 10% 5% 0% DAYTON VS NATIONAL RENT GROWTH Year-over-Year DAYTON NATIONAL 12% 8% 4% 0% DAYTON RENT GROWTH BY ASSET CLASS Year-over-Year LIFESTYLE RENTERS BY NECESSITY ONE-YEAR FORECAST 1Q 2023 Annual Supply 1,061 units Annual Demand 785 units Occupancy 95.4% Annual Occupancy Change -0.4 Annual Rent Change 3.0% Annual Revenue Change 2.6% Annual Job Change -300 MAR 23’ JUL 22’ AUG 22’ SEP 22’ OCT 22’ NOV 22’ DEC 22’ JAN 23’ FEB 23’ MAR 23’ JUL 22’ AUG 22’ SEP 22’ OCT 22’ NOV 22’ DEC 22’ JAN 23’ FEB 23’

DAYTON

OCCUPANCY

1| Occupancy in the Dayton apartment market has ranged from 95.2% to 98.0% over the past five years, averaging 96.6% during that period. Over the past year, occupancy lost 2.2 points, with the 1st quarter 2023 rate landing at 95.8%. 2| Looking at product classes in Dayton, 1st quarter 2023 occupancy registered at 94.7% in Class A units, 96.1% in Class B units and 96.2% in Class C units.

3| Occupancy in Class C product was generally tightest over the past five years. Among submarkets, 1st quarter 2023 occupancy was strongest in Greene County and Central Dayton/Kettering (both at 96.6%). 4| The weakest reading was seen in Northwest Dayton (92.6%). 5| During the coming year, occupancy in Dayton is expected to register around 95.5%.

SUPPLY

1| New apartment completions in Dayton were modest recently, as 650 units delivered in the yearending 1st quarter 2023. Completions over the past year expanded the local inventory base 1.2%.

2| In the past year, supply was greatest in Central Dayton/Kettering and Greene County. Annual new supply averaged 544 units, and annual inventory growth averaged 1.0% over the past five years. 3| At the end of 1st quarter 2023, there were 1,310 units under construction with 1,061 of those units scheduled to complete in the next four quarters. 4| Scheduled deliveries in the coming year are expected to be concentrated in Central Dayton/Kettering.

650 units completed in past 12 months

1,310 units currently in progress

JANUARY FEBRUARY MARCH APRIL MAY JUNE
QUARTER 1

DEVELOPMENT PIPELINE

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER UNITS UNDER CONSTRUCTION SECTOR UNITS Central Dayton / Kettering 850 North Dayton / Miami County 283 South Montgomery County 177 TOTAL FUTURE INVENTORY GROWTH SUBMARKET CHANGE Central Dayton / Kettering 5.5% North Dayton / Miami County 3.4% South Montgomery County 1.5% HIGHEST OVERALL PERFORMING SUBMARKET SUBMARKETS RENT OCCUPANCY YOY Springfield $909 97.5% 14.5% Xenia $944 98.0% 13.2% Dayton – East $819 97.4% 11.6% Huber Heights $1,120 96.3% 11.0% Beavercreek $1,332 96.9% 9.9% LOWEST OVERALL PERFORMING SUBMARKETS SUBMARKETS RENT OCCUPANCY YOY Trotwood $911 91.8% 5.7% Miami $1,219 98.0% 5.6% Dayton-West $799 98.2% 5.5% Vandalia $790 95.4% 5.1% Miamisburg $1,202 95.4% 2.8%

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 Integrator 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.”

carillon historical park

Carillon Historical Park showcases Dayton’s rich heritage of creativity, invention, and milestones in innovation that changed the nation and the world!

The park houses the John W. Berry, Sr. Wright Brothers National Museum featuring the original 1905 Wright Flyer III, an impressive collection of NCR cash registers, the Carousel of Dayton Innovation, Gem City Letterpress and so much more.

America’s Packard Museum

The museum is housed in the original Packard dealership building built for Dayton in 1917. Approximately 50 Packard automobiles dating 1903-58 are displayed. Other exhibits include Packard marine and aircraft engines, items from the Detroit Packard factory.

Higher education

University of Dayton

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 games than any other venue in the US.

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.

Visit adgmultifamily.com to learn more.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.