Hunters Court OM

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HUNTERS COURT 2024

OFFERING MEMORANDUM

67 HUNTERS COURT, AMELIA, OHIO
CONTENTS LEAD AGENTS Austin Sum Senior Associate Cincinnati Office D. 513.503.4972 austin.sum@marcusmillichap.com Nick Andrews First Vice President Investments Cincinnati Office D. 614.402.6685 nicholas.andrews@marcusmillichap.com Jordan Dickman First Vice President Investments Cincinnati Office D. 440.474.2269 jordan.dickman@marcusmillichap.com The Investment Local Competitors Financials 06 12 16 SECTIONS

“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.” 300 WEST 4TH STREET, CINCINNATI, OH

GLOBAL REACH, LOCAL EXPERTISE

$86.3B

VALUE OF RECENTLY CLOSED TRANSACTIONS

12,272

CLOSED SALES IN MOST RECENT YEAR

$12.8B

TOTAL VALUE OF RECENT LISTINGS

2,143

CLOSED FINANCINGS IN MOST RECENT YEARS

CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
CINCINNATI DAYTON LEXINGTON LOUISVILLE

YOUR TEAM

JORDAN DICKMAN

FIRST VICE PRESIDENTS DIRECTOR, NMHG

NICK ANDREWS

FIRST VICE PRESIDENTS DIRECTOR, NMHG

AUSTIN SUM

SENIOR INVESTMENT ASSOCIATE

AUSTIN Hall

INVESTMENT ASSOCIATE

ALDEN SIMMS

INVESTMENT ASSOCIATE

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

BROKER SUPPORT

SAM PETROSino

VALUATION & RESEARCH

BRETT MARTIN

INTERNAL ACCOUNTANT

BRITTANY CAMPBELL-KOCH DIRECTOR OF OPERATIONS ALEX PAPA

MARKETING

COORDINATOR

EXTREMELY ATTRACTIVE ASSUMABLE FANNIE sbl

DEBT

LOAN AMOUNT $11.6mm

INTEREST RATE 5.00% I/O PERIOD | 2029 5 YEARS

MATURITY DATE 11/1/2032

PHOTOS

PHOTOS

RENT MATRIX | two BED

Hunters Court $1,237 Wolf Creep Apts $1,395 Hangar Flats $1,599 Little Creek $1,350 Redwood Union $1,964 Kennedy’s Landing $1,450
02 SECTIONLOCAL COMPETITORS Two Bedroom Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF Redwood Union Township 2020 282 1294 $1,964 $1.52 Hangar Flats 2023 84 1140 $1,599 $1.40 Subject Pro Forma 1980 128 1106 $1,560 $1.41 Kennedys Landing 1999 112 1650 $1,450 $0.88 Wolf Creek Apartments 1995 30 1200 $1,395 $1.16 Little Creek Townhomes 2001 142 1145 $1,350 $1.18 Subject Average Effective 1980 128 1106 $1,237 $1.12 Market Average 2000 129 1234 $1,508 $1.24

RENT MATRIX | three BED

Hunters Court $1,416 Hangar Flats $1,720 Little Creek $1,700 Kennedy’s Landing $1,650
02 SECTIONLOCAL COMPETITORS
Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF Hangar Flats 2023 84 1140 $1,720 $1.51 Little Creek Townhomes 2001 142 1400 $1,700 $1.21 Kennedys Landing 1999 112 1750 $1,650 $0.94 Subject Pro Forma 1980 128 1256 $1,640 $1.31 Subject Average Effective 1980 128 1256 $1,416 $1.13 Market Average 1997 119 1360 $1,625 $1.22
Three Bedroom

UNIT MIX BREAKDOWN

HUNTERS COURT - 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 One & Half Bath 2BR/1.5BA - Classic 102 Units 960 SF 97,920 SF $1,165.23 $1.21 SF $118,853 $1,260.00 $1.31 SF $128,520 $1,410.00 $1.47 SF $143,820 2BR/1.5BA - Full Reno 20 Units 960 SF 19,200 SF $1,372.50 $1.43 SF $27,450 $1,410.00 $1.47 SF $28,200 $1,410.00 $1.47 SF $28,200 Totals / Wtd. Averages 122 Units 960 SF 117,120 SF $1,199.21 $1.25 SF $146,303 $1,284.59 $1.34 SF $156,720 $1,410.00 $1.47 SF $172,020 Two Bedroom Two & Half Bath 2BR/2.5BA - Classic 4 Units 1,252 SF 5,008 SF $1,207.00 $0.96 SF $4,828 $1,236.00 $0.99 SF $4,944 $1,486.00 $1.19 SF $5,944 Totals / Wtd. Averages 4 Units 1,252 SF 5,008 SF $1,207.00 $0.96 SF $4,828 $1,236.00 $0.99 SF $4,944 $1,486.00 $1.19 SF $5,944 Three Bedroom Two & Half Bath 3BR/2.5BA - Classic 4 Units 1,256 SF 5,024 SF $1,416.25 $1.13 SF $5,665 $1,505.00 $1.20 SF $6,020 $1,640.00 $1.31 SF $6,560 Totals / Wtd. Averages 4 Units 1,256 SF 5,024 SF $1,416.25 $1.13 SF $5,665 $1,505.00 $1.20 SF $6,020 $1,640.00 $1.31 SF $6,560 Summary Two Bedroom | One & Half Bath 122 Units 960 SF 117,120 SF $1,199.21 $1.25 $146,303 $1,284.59 $1.34 SF $156,720 $1,410.00 $1.47 SF $172,020 Two Bedroom | Two & Half Bath 4 Units 1,252 SF 5,008 SF $1,207.00 $0.96 $4,828 $1,236.00 $0.99 SF $4,944 $1,486.00 $1.19 SF $5,944 Three Bedroom | Two & Half Bath 4 Units 1,256 SF 5,024 SF $1,416.25 $1.13 $5,665 $1,505.00 $1.20 SF $6,020 $1,640.00 $1.31 SF $6,560 Totals / Wtd. Averages 130 Units 978 SF 127,152 SF $1,206.13 $1.23 SF $156,796 $1,289.88 $1.32 SF $167,684 $1,419.42 $1.45 SF $184,524
VACANCY

TWO BEDROOM | ONE & HALF BATH

MARKET RENT INCREASE

Max budget per unit

$12,500

UNIT RENTS

03 SECTION - THE FINANCIALS classic & full reno
DISTRIBUTION
UNIT

HUNTERS COURTfinancials

T12 RENT ROLL: AS OF APRIL 25, 2024 INCOME AND EXPENSES: APRIL 2023 - MARCH 2024 GROSS POTENTIAL RENT % of GPR Per Unit All Units at Market Rent $1,842,425 T12 14,173 Gain (Loss) to Lease ($65,970) T12 3.58% (507) GROSS SCHEDULED RENT $1,776,455 13,665 Total Other Income $202,182 11.38% 1,555 GROSS POTENTIAL $1,978,637 15,220 Physical Vacancy ($182,512) T12 10.27% (1,404) Non Revenue Units ($14,153) T12 0.80% (109) Bad Debt ($22,377) T12 Note 2 1.26% (172) Concessions Allowance ($1,240) T12 0.07% (10) EFFECTIVE GROSS $1,758,355 84.02% 13,526 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit 2024 Taxes $91,916 Auditor 5.23% 707 Total Real Estate Taxes $91,916 5.23% 707 Insurance $66,824 T12 3.80% 514 Utilities Electric $2,646 T12 0.15% 20 Electric Vacant $10,428 T12 0.59% 80 Water & Sewage $81,333 T12 4.63% 626 Trash Removal $9,715 T12 0.55% 75 Utilities $104,122 5.92% 801 Total Non-Controllable $262,862 14.95% 2,022 CONTROLLABLE Contract Services Snow Removal $3,350 T12 0.19% 26 Landscaping/Grounds $16,066 T12 0.91% 124 Pest Control $1,252 T12 0.07% 10 Contract Services $20,668 1.18% 159 Repairs & Maintenance $15,864 T12 0.90% 122 Marketing & Promotion $68,820 T12 3.91% 529 On-Site Payroll $162,066 T12 9.22% 1,247 Payroll Taxes & Benefits $54,421 T12 3.09% 419 General & Administrative $32,973 T12 1.88% 254 Management Fee $45,467 T12 2.59% 350 Telephone & Internet $3,227 T12 0.18% 25 Replacement & Reserves $39,000 Note 1 2.22% 300 Total Controllable $442,506 25.17% 3,404 TOTAL EXPENSES $705,368 40.12% 5,426 NET OPERATING INCOME $936,050 53.23% 7,200 EXPENSE INCOME UNDERWRITING NOTES # NOTE 1 Replacement & Reserves: added based on market norm of $255 per unit per year 2 Includes bad debt write-offs from unpaid rent and other income. Accounts ‘Rent Adj - Move Out’ and ‘Move out Charges’
T6 T3 YEAR 1 % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit $1,866,000 T6 14,354 $1,868,900 T3 14,376 $2,214,288 17,033 ($36,730) T6 1.97% (283) ($17,236) T3 0.92% (133) ($44,286) 2.00% (341) $1,829,270 14,071 $1,851,664 14,244 $2,170,002 16,692 $202,182 11.05% 1,555 $202,182 10.92% 1,555 $208,248 9.60% 1,602 $2,031,452 15,627 $2,053,846 15,799 $2,378,250 18,294 ($146,354) T6 8.00% (1,126) ($124,596) T3 6.73% (958) ($108,500) 5.00% (835) ($12,726) T6 0.70% (98) ($11,764) T3 0.64% (90) ($16,920) 0.78% (130) ($11,038) T6 Note 2 0.60% (85) ($16,868) T3 Note 2 0.91% (130) ($21,700) 1.00% (167) $0 T6 0.00% 0 $0 T3 0.00% 0 $0 0.00% 0 $1,861,334 88.73% 14,318 $1,900,618 90.80% 14,620 $2,231,130 91.22% 17,163 % of EGI % of EGI Per Unit % of EGI $91,916 Auditor 4.94% 707 $91,916 Auditor 4.84% 707 $91,916 4.84% 707 $91,916 4.94% 707 $91,916 4.84% 707 $91,916 4.84% 707 $66,824 T12 3.80% 514 $66,824 T12 3.80% 514 $68,250 3.59% 525 $2,646 T12 0.15% 20 $2,646 T12 0.15% 20 $2,699 0.14% 21 $10,428 T12 0.59% 80 $10,428 T12 0.59% 80 $10,637 0.56% 82 $81,333 T12 4.63% 626 $81,333 T12 4.63% 626 $82,960 4.36% 638 $9,715 T12 0.55% 75 $9,715 T12 0.55% 75 $9,909 0.52% 76 $104,122 5.59% 801 $104,122 5.48% 801 $106,204 5.59% 817 $262,862 14.33% 2,022 $262,862 14.11% 2,022 $266,370 14.01% 2,049 $3,350 T12 0.19% 26 $3,350 T12 0.19% 26 $4,550 0.20% 35 $16,066 T12 0.91% 124 $16,066 T12 0.91% 124 $16,250 0.73% 125 $1,252 T12 0.07% 10 $1,252 T12 0.07% 10 $4,550 0.20% 35 $20,668 1.11% 159 $20,668 1.09% 159 $25,350 1.33% 195 $15,864 T12 0.90% 122 $15,864 T12 0.90% 122 $78,000 3.50% 600 $68,820 T12 3.91% 529 $68,820 T12 3.91% 529 $13,000 0.58% 100 $162,066 T12 9.22% 1,247 $162,066 T12 9.22% 1,247 $130,000 5.83% 1,000 $54,421 T12 3.09% 419 $54,421 T12 3.09% 419 $26,000 1.17% 200 $32,973 T12 1.88% 254 $32,973 T12 1.88% 254 $19,500 0.87% 150 $45,467 T12 2.59% 350 $45,467 T12 2.59% 350 $66,934 3.00% 515
T12 0.18% 25 $3,227 T12 0.18% 25 $3,250 0.15% 25 $39,000 Note 1 2.10% 300 $39,000 Note 1 2.05% 300 $39,000 1.75% 300 $442,506 24.98% 3,404 $442,506 24.91% 3,404 $401,034 18.17% 3,085 $705,368 37.90% 5,426 $705,368 37.11% 5,426 $667,404 35.12% 5,134 $1,039,029 55.82% 7,993 $1,078,313 56.73% 8,295 $1,446,789 76.12% 11,129
$3,227
T12 T6 T3 YR 1 YR 2 YR 3 YR 4 YR 5 YE MAY-2025 YE MAY-2026 YE MAY-2027 YE APR-2028 YE APR-2029 GROSS POTENTIAL RENT All Units at Market Rent $1,842,425 $1,866,000 $1,868,900 $2,214,288 $2,280,717 $2,349,138 $2,419,612 $2,492,201 Gain (Loss) to Lease ($65,970) ($36,730) ($17,236) ($44,286) ($45,614) ($46,983) ($48,392) ($49,844) GROSS SCHEDULED RENT $1,776,455 $1,829,270 $1,851,664 $2,170,002 $2,235,102 $2,302,155 $2,371,220 $2,442,357 TOTAL OTHER INCOME $202,182 $202,182 $202,182 $208,248 $212,413 $216,661 $220,994 $225,414 GROSS POTENTIAL INCOME $1,978,637 $2,031,452 $2,053,846 $2,378,250 $2,447,515 $2,518,816 $2,592,214 $2,667,771 Physical Vacancy ($182,512) ($146,354) ($124,596) ($108,500) ($111,755) ($115,108) ($118,561) ($122,118) Bad Debt ($22,377) ($11,038) ($16,868) ($21,700) ($22,351) ($23,022) ($23,712) ($24,424) EFFECTIVE GROSS INCOME $1,758,355 $1,861,334 $1,900,618 $2,231,130 $2,295,981 $2,362,737 $2,431,452 $2,502,186 Real Estate Taxes $208,853 $208,853 $208,853 $208,853 $213,030 $217,291 $221,636 $226,069 Insurance $66,824 $66,824 $66,824 $68,250 $69,615 $71,007 $72,427 $73,876 Utilities $104,122 $104,122 $104,122 $106,204 $108,329 $110,495 $112,705 $114,959 Contract Services $20,668 $20,668 $20,668 $25,350 $25,857 $26,374 $26,902 $27,440 Repairs & Maintenance $15,864 $15,864 $15,864 $78,000 $79,560 $81,151 $82,774 $84,430 Marketing & Promotion $68,820 $68,820 $68,820 $13,000 $13,260 $13,525 $13,796 $14,072 On-Site Payroll $162,066 $162,066 $162,066 $130,000 $132,600 $135,252 $137,957 $140,716 Payroll Taxes & Benefits $54,421 $54,421 $54,421 $26,000 $26,520 $27,050 $27,591 $28,143 General & Administrative $32,973 $32,973 $32,973 $19,500 $19,890 $20,288 $20,694 $21,107 Management Fee $45,467 $45,467 $45,467 $66,934 $68,879 $70,882 $72,944 $75,066 Replacement & Reserves $39,000 $39,000 $39,000 $39,000 $39,780 $40,576 $41,387 $42,215 TOTAL EXPENSES $822,305 $822,305 $822,305 $784,341 $800,635 $817,273 $834,262 $851,610 NET OPERATING INCOME $936,050 $1,039,029 $1,078,313 $1,446,789 $1,495,346 $1,545,464 $1,597,190 $1,650,575 INCOME EXPENSE HUNTERS COURTfinancials
Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code Hunters Court 290-106.043 1980 8.78 $4,004,900 $1,401,720 65.573683 $91,915.92 403 C - Apartments 40+ Units Total 8.78 $4,004,900 $1,401,720 $91,915.92
CASH FLOW
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS T12 T6 T3 YR 1 YR 2 INCOME Gross Potential Rent 20.18% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 1.97% 0.92% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% EXPENSES Expenses 2.00% 2.00% 2.00% 2.00% Management Fee** 3.00% 3.00% 3.00% 3.00% 3.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS T12 T6 T3 YR 1 YR 2 Physical Vacancy 8.00% 6.73% 5.00% 5.00% 5.00% Non-Revenue Units 0.70% 0.64% 0.78% 0.78% 0.78% Bad Debt 0.60% 0.91% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 9.30% 8.28% 6.78% 6.78% 6.78%

CINCINNATI

THE ECONOMY

1| Prior to the pandemic, Cincinnati’s real gross metropolitan product grew at an average annual rate of 2.1% from 2015 to 2019. During that same five-year period, job growth averaged 1.4% annually, with roughly 15,500 jobs added on average each year. In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 8.4% year-over-year in 2nd quarter. 2| In 2023, the metro’s inflation-adjusted economic output expanded 2.3%. 3| The metro recorded a net gain of 21,100 jobs, expanding the employment base 1.8%. 4| Cincinnati’s unemployment rate in November 2023 was unchanged year-over-year at 3.0%, below the national average of 3.5%. 5| Despite job losses stemming from the pandemic, Cincinnati’s current employment base now sits roughly 63,700 jobs or about 6% above the pre-pandemic level in February 2020.

3,263 units completed in past 12 months 5,184 units currently in progress

HIGHEST OVERALL PERFORMING SUBMARKET

RENT

1| Over the past five years, annual change in effective asking rents in Cincinnati ranged from 2.0% to 11.9%. 2| In 4th quarter 2023, effective asking rents for new leases were up 3.6% year-over- year. That annual rent performance was below the market’s five-year average of 5.7%. 3| Cincinnati’s recent annual rent change performance ranked #10 in the Midwest region and #27 nationally. 4| Looking at product classes in Cincinnati, Class B led for rent performance over the past five years. In 4th quarter 2023, annual effective rent change registered at 2.5% in Class A units, 3.4% in Class B units and 5.8% in Class C units. 5| Among submarkets, the strongest annual rent change performances over the past year were in West Cincinnati and Southeast Cincinnati. 6| The weakest performances were in Central Cincinnati, Butler County and North Central Cincinnati. Over the past five years, rent growth was strongest in Southeast Cincinnati.

LOCAL MARKET
Q4 2023 MARKET SNAPSHOT Pre-1970s 1970s 1980s 1990s 2000+ Occupancy 93.8% 95.4% 96.2% 94.8% 94.7% Y-O-Y Rent Growth 5.2% 3.5% 3.4% 3.0% 3.5% Average Rent Per Unit $1,094 $1,148 $1,283 $1,367 $1,732
SUBMARKETS RENT OCCUPANCY YOY Dent/Harrison $1,147 97.6% 11.0% Roselawn $1,022 92.5% 8.5% Mt Washington $1,155 94.7% 8.3% Mt Healthy $1,123 96.7% 8.1% Middletown/Franklin $969 94.1% 7.3%

SCAN FOR MORE

1| New apartment completions in Cincinnati were moderate recently, as 3,263 units delivered in 2023. That annual completion volume was a 24-year high. 2| With 150 units removed from existing stock over the past year, the local inventory base grew 1.9%. In the past year, supply was greatest in North Central Cincinnati. 3| Annual new supply averaged 1,754 units, and annual inventory growth averaged 1.0% over the past five years. During that period, new supply was concentrated in Central Cincinnati and Campbell/Kenton Counties, which received 42% of the market’s total completions. 4| At the end of 2023, there were 5,184 units under construction with 3,531 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be concentrated in Central Cincinnati.

OCCUPANCY

1| Occupancy in the Cincinnati apartment market has ranged from 94.9% to 98.2% over the past five years, averaging 96.4% during that period. 2| Over the past year, occupancy lost 1.2 points, with the 4th quarter 2023 rate landing at 94.9%. 3| Looking at product classes in Cincinnati, 4th quarter 2023 occupancy registered at 94.1% in Class A units, 94.9% in Class B units and 95.6% in Class C units. 4| Occupancy in Class C product was generally tightest over the past five years. 5| Among submarkets, 4th quarter 2023 occupancy was strongest in Southeast Cincinnati and Campbell/Kenton Counties. 6| The weakest readings were seen in Central Cincinnati and North Central Cincinnati. During the coming year, occupancy in Cincinnati is expected to register around 95%.

HIGHEST OVERALL PERFORMING SUBMARKET

LOWEST OVERALL PERFORMING SUBMARKETS

UNITS UNDER CONSTRUCTION

SECTOR UNITS Central Cincinnati 1,747 Northeast Cincinnati/Warren County 811 Boone County/Erlanger 769 Campbell/Kenton Counties 497 Butler County 482 TOTAL FUTURE INVENTORY GROWTH SUBMARKET CHANGE Central Cincinnati 11.9% Boon County/Erlanger 7.0% Northeast Cincinnati/Warren County 4.8% Campbell/Kenton Counties 2.9% Butler County 2.4%
SUBMARKETS RENT OCCUPANCY YOY Dent/Harrison $1,147 97.6% 11.0% Roselawn $1,022 92.5% 8.5% Mt Washington $1,155 94.7% 8.3% Mt Healthy $1,123 96.7% 8.1% Middletown/Franklin $969 94.1% 7.3%
SUBMARKETS RENT OCCUPANCY YOY Fort Mitchell/Crescent Springs $1,162 96.1% 1.0% Fairfield $1,291 94.2% 1.0% Covington/Newport $1,608 93.9% 0.8% Clifton $1,038 90.6% -0.5% Downtown $1,786 94.6% -0.8
SUPPLY

HUNTERS COURT

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