Issuu

IMPERIAL 20 2024

BROKERS OPINION OF VALUE 1320, 13330, 1335 Imperial Court, Troy, OH

GLOBAL REACH, LOCAL EXPERTISE

$86.3B VA L U E O F R E C E N T LY C L O S E D T R A N S A C T I O N S

12,272 CLOSED SALES IN MOST RECENT YEAR

DAY TO N

$12.8B

C I N C I N N AT I

T O TA L VA L U E O F R E C E N T L I S T I N G S

2,143

LOUISVILLE

LEXINGTON

CLOSED FINANCINGS IN MOST RECENT YEARS

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

YOUR TEAM

C O R P O R AT E S U P P O R T

J O RDAN DICK M A N F I R S T VIC E PR ES I D E N T S D I RE CT O R, N M HG

L I Z P OP P MI DW E S T OP E R A TI ON S MA NAGER

NIC K ANDREWS F I R S T VIC E PR ES I D E N T S D I RE CT O R, N M HG

J OS H C A R U A N A V I C E P R E S I DE N T R E G I ON A L MA N A G E R I N DI A N A P OL I S | C I N C I N N A TI | L O UISVIL L E | S T L O UIS | K ANS AS CITY

AUS T IN SUM S ENIO R INVESTME N T A SSO CI A T E AUS T IN Hall INVESTM ENT ASSO CI A T E AL D E N SIMM S INVESTM ENT ASSO CI A T E

J OH N SE B R E E S E N I OR V I C E P R E S I DE N T N A T I ON A L DI R E C T OR N A T I ON A L MULTI H OUS I N G GR O UP MI C H A E L G L A S S S E N I OR V I C E P R E S I DE N T MI DW E S T DI V I S I ON MA N A GER N A T I ON A L DI R E C T OR , MA N UFACTUR ED HO M E CO M M UNITIES GR O UP

BROKER SUPPORT S AM PET ROSino VA L UATIO N & R E S E A RCH

B R I TTA N Y C A MP B E L L- KOC H DI R E C TOR OF OP E R A T I ON S

B RETT MART IN INT ER NAL AC CO UN TA N T

A L E X PA PA MA R K E TI N G C OOR DI N A TOR

LIMITLESS

GEOGRAPHIC BOUNDARIES Through the synergy of our closely-knit team, our expansive proprietary platform, and a far-reaching national network, we possess the innate ability to seamlessly facilitate the fluid movement of capital across the entire expanse of the country. What sets us apart is not just our technological prowess, but the collaborative ethos that infuses every facet of our operation. At the heart of our success lies a culture of collaboration, where diverse minds converge to formulate innovative solutions. This, coupled with our cutting-edge technological infrastructure, propels us to the forefront of the industry. But what truly underpins our efficiency is a time-tested methodology that has consistently yielded remarkable results. One of our core competencies is the art of precision in buyer-seller matching. Whether the focus is on a regional or national scale, our processes are adept at seamlessly aligning buyers with sellers in a manner that goes beyond mere transactions. This approach ensures that your success is

INBOUND / OUTBOUND $2.1B- MW. OUTBOUND $3.8B- MW. INBOUND $9.2BB- W. OUTBOUND $1.6B- W. INBOUND $3.1B- S. OUTBOUND $7.8B- S. INBOUND $1.8B- TX/OK OUTBOUND $6.4B- TX/OK INBOUND $6.4B- NE. OUTBOUND $1.4B- NE. INBOUND $3.3B- MOUNTAIN OUTBOUND $5.0B- MOUNTAIN INBOUND

#1 U.S. brokerage in number of transactions 1031 EXCHANGE LEADER

Marcus & Millichap is the premier commercial real estate investment services firm in the United States. Founded in 1971 with a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades of experience and relationships to handle all your commercial real estate needs. Our team of more than 2,000 professionals in the United States and Canada focuses exclusively on real estate investment sales, financing, research and advisory services.

13,255 Transactions In most recent year

6.74

Transactions closed Every Business Hour

We Execute More Tax-Deferred Exchanges Than Any Other Firm In The United States (32% Of Total Transactions), And Our Market Share Is A Direct Benefit To Clients. Over The Years, We Have Developed The Skills And Expertise To Maximize Value And Meet Sensitive Timelines Required In A 1031 Exchange. With Billions Of Dollars Of Commercial Real Estate Exclusively Listed With Us At Any Time, Motivated Exchange Buyers Seek Out Marcus & Millichap For Quality Investment Opportunities. Through Our Industry-Leading Inventory, We Deliver The Best Of Both Worlds – We Maximize The Value Of Your Asset Through Our Unparalleled Marketing. We Then Help Identify Appropriate Upleg Options To Execute A Successful Tax Deferral Acquisition.

M O V I N G C A P I TA L . M A X I M I Z I N G VA L U E .

L E A D I N G

N AT I O N A L

P L AT F O R M

cl ie nt s r epr e sent e d

2014 2015 2016 2017 2018

2024

2019 2020 2021 2022 2023

10 YEARS EXPERIENCE

$1.65B 20k+ CAREER CLOSED

CAREER UNITS CLOSED

NOTEWORTH DEALS IMPERIAL & CONTINENTAL 64

UNITS CLOSING PRICE CITY

$2.6M VANDALIA,OH

PATTERSON 67

UNITS CLOSING PRICE CITY

$4.1M DAYTON,OH

133 IMPERIAL COURT 18

UNITS CLOSING PRICE CITY

$925,000 VANDALIA,OH

ERICA COURT UNITS CLOSING PRICE CITY

40 $2M DAYTON,OH

LAKESHORE UNITS CLOSING PRICE CITY

57 $3.5M DAYTON,OH

6888 BRANDT PIKE UNITS CLOSING PRICE CITY

96 $3.8M DAYTON,OH

RECENT TRANSACTIONS UNITS

SALE PRICE

CITY, STATE

Alpine

$2,800,000.00

Dayton, OH

Berkshire

$4,045,000.00

Cincinnati, OH

Hopeview

$4,320,000.00

Xenia, OH

Waynedale

$6,000,000.00

Dayton, OH

Riverside Terrace

$3,312,000.00

Cincinnati, OH

Mears

$1,400,000.00

Cincinnati, OH

Villas of Pine Valley

$4,900,000.00

Elizabethtown, KY

Keyes Cove

$1,266,000.00

Lexington, KY

The Monleone

$3,157,000.00

Louisville, KY

Catalpa Crossing

$2,375,000.00

Dayton, OH

Middleton Shilow

$5,000,000.00

Cincinnati, OH

The Pops

$10,300,000.00

Lexington, KY

Trenton 52

$3,300,000.00

Trenton, OH

Clays Pointe

$8,700,000.00

Elizabethtown, KY

Williamstown

$4,344,556.00

Cincinnati, OH

300 Highway

$573,000.00

Ludlow, KY

1922 Hopkins

$1,422,000.00

Cincinnati, OH

Lindhurst Townhomes

$3,000,000.00

Lexington, KY

IMPERIAL 20

P R O P E R T Y D E TA I L S Property Address:

1320, 1330, 1335 Imperial Court

City, State, Zip:

Troy, OH 45373

Submarket:

Miami County

County:

Miami

Year Built:

1974

Number Of Units:

Avg Unit Size:

585

Rentable Sqft:

13,000

Number of Parcels:

Lot Size (Acres):

0.88

# of Buildings:

# of Stories:

Occupancy:

100%

HVAC: Parking Type: Parking Surface:

Through wall A/C; electric baseboard heat Parking Lot Paved

CONSTRUCTION: Roofs:

Pitched

Exterior:

Brick

Utilities Electric: Gas: Water Sewer Trash:

Tenant Paid N/A Owner Paid Owner Paid Owner Paid

r e l at i v e l o c at i o n

SCAN FOR Q U A R T E R LY D ATA

D AY T O N M A R K E T •

Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.4% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually,

IMPERIAL 20

with roughly 3,700 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 10.0% year-over-year in 2nd quarter. •

In the year-ending 2nd quarter 2023, the metro’s inflation- adjusted economic output expanded 2.8%.

•

At the same time, the metro recorded a net gain of 8,900 jobs, expanding the employment base 2.3%.

•

As such, Dayton’s unemployment rate in May 2023 declined 0.1 point year-over-year to 3.4%, matching the national average of 3.4%.

28 min drive (22 mi)

•

During the past year, job gains in Dayton were most pronounced in the Education/Health Services sector followed by Leisure/Hospitality Services.

NOTEWORTHY MENTIONS -140 UNDERGRAD PROGRAMS

WRIGHT STATE

-20,000 JOBS -13,000 STUDENTS

downtown d ay t o n

-80 UNDERGRAD PROGRAMS

UNIVERSITY OF DAYTON

-9,000 STUDENTS -$70M ECONOMIC IMPACT - 28,000 JOBS

WRIGHT PAT AIR FORCE BASE

- $4.3B ECONOMIC IMPACT - LARGEST SINGLE SIT EMPLOYER IN OH

INVESTMENT HIGHLIGHTS VALUE ADD OPPORTUNITY TO INCREASE RENTS Imperial 20 has market rents that are below their direct competitors, even those with inferior finishes. The average effective rents for the one-bedrooms units are $653. The new leases on renovated units are $675 which are still below market competitors. These units can have the rents pushed to $725 to match their direct competitors. This leaves an incoming investor with an enticing value-add opportunity. DESIRABLE LOCATION Troy is a desirable town that has sixteen international manufacturers nearby, is located just minutes from the Interstate 70 and Interstate 75 interchange, and has a vibrant downtown and urban core.

Competitors

PA R K

ER GRE

AP TS

L o c at i o n

1 BED - $719

IMP

V IE W A

IAL 20

1 BED - $1,265

1 BED - $725

GE APT

M PE RI AL I 5

CT 1 BED - $675

FL A

TS OF TR

1 BED - $760

THE

COUR PTS

1 BED - $650

AIG

I TA

HER

135

1 BED - $795

1 BED - $754

One BEDROOM RENT SORT Property Towne Park The Flats of Troy McKaig Court Apartments Heather Green Apartments Subject Pro Forma 1355 Imperial Court Graceview Apartments Subject Average Effective Heritage Apartments

Year Built

# Units

Avg SF

Avg Rent

Avg Rent/SF

2004 1980 1969 1978 1974 1974 1971 1974 1985

204 56 48 28 20 8 63 20 70

788 650 609 700 650 850 515 650 578

$1,056 $800 $760 $759 $725 $700 $695 $654 $653

$1.34 $1.23 $1.25 $1.08 $1.12 $0.82 $1.35 $1.01 $1.13

RENT COMPETITORS

mckaig court apts 1525-1541 McKaig Ave, Troy, OH, 45373 UNITS YEAR BUILT UNIT MIX One Bedroom

# UNITS 24

SQFT 650

RENT $760

48 1969 RENT/SF $1.17

RENT COMPETITORS

1355 imperial court 1355 Imperial Court, Troy, OH 45373 Units Year Built UNIT MIX One Bedroom

# UNITS 6

SQFT 650

RENT $700

6 1974 RENT/SF $1.04

RENT COMPETITORS

graceview a pa rt m e n t s

1211 W Main St., Troy, OH 45373 UNITS YEAR BUILT UNIT MIX One Bedroom

# UNITS 38

SQFT 500

RENT $695

63 1971 RENT/SF $1.59

RENT COMPETITORS

H e at h e r Green apts 1325 Trade Sq W, Troy, OH 45373 UNITS YEAR BUILT UNIT MIX One Bedroom

# UNITS 8

SQFT 700

RENT $759

28 1978 RENT/SF $1.03

IMPERIAL 20 - FINANCIALS

UNIT MIX SUMMARY AV E R A G E E F F E C T I V E

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

P RO J E CT E D

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

UNIT TYPE

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

SUMMARY One Bedroom

20 Units

585 SF

14,000 SF

$606.21

$0.87

$12,124

$675.00

$0.96 SF

$13,500

$725.00

$1.04 SF

$14,500

Totals / Wtd. Averages

20 Units

585 SF

14,000 SF

$606.21

$0.87 SF

$12,124

$675.00

$0.96 SF

$13,500

$725.00

$1.04 SF

$14,500

Unit distribution

Unit rents

IMPERIAL 20 - FINANCIALS

UNIT MIX BREAKDOWN AV E R A G E E F F E C T I V E

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

P RO J E CT E D

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

UNIT TYPE

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

One Bedroom One Bedroom

20 Units

585 SF

14,000 SF

$606.21

$0.87

$12,124

$675.00

$0.96 SF

$13,500

$725.00

$1.04 SF

$14,500

Totals / Wtd. Averages

20 Units

585 SF

14,000 SF

$606.21

$0.87 SF

$12,124

$675.00

$0.96 SF

$13,500

$725.00

$1.04 SF

$14,500

INCOME

GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME

EXPENSE

IMPERIAL 20 - FINANCIALS

INCOME & EXPENSES 22

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT

NON-CONTROLLABLE Real Estate Taxes 2022 Taxes Paid Total Real Estate Taxes Insurance Utilities Utilities Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion Labor General & Administrative Management Fee Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME NOI - NO TAX REASSESSMENT

T12 RENT ROLL: AS OF NOVEMBER 2023 INCOME AND EXPENSES: JANUARY 2023 - NOVEMBER 2023 % of GPR Per Unit $174,000 RR 8,700 ($15,900) 9.14% (795) $158,100 RR 7,905

$158,100

$174,000 ($15,900) $158,100

% of GPR 9.14%

Per Unit 8,700 (795) 7,905

$150,414

4.86% 0.00% 86.00%

7,905 (384) 0 7,521

$158,100 ($3,698) $0 $154,402

2.34% 0.00% 88.52%

7,905 (185) 0 7,720

$10,413 Auditor $5,097 $15,510

% of EGI 6.92% 3.39% 10.31%

Per Unit 521 255 776

$10,413 $5,097 $15,510

6.74% 3.30% 10.05%

% of EGI 521 255 776

$9,062 T11 $3,614 T11 $12,676 $36,786

6.02% 2.40% 8.43% 24.46%

453 181 634 1,839

$9,062 $3,614 $12,676 $36,786

6.02% 2.40% 8.21% 23.97%

453 181 634 1,839

$1,615 $0 $4,653 $6,267 $22,839 $0 $0 $0 $0 $5,100 $34,206 $70,992 $79,422 $84,519

1.07% 0.00% 3.09% 4.17% 15.18% 0.00% 0.00% 0.00% 0.00% 3.39% 22.74% 47.20% 52.80% 56.19%

81 0 233 313 1,142 0 0 0 0 255 1,710 3,550 3,971 4,226

$1,615 $0 $4,653 $6,267 $22,839 $0 $0 $0 $0 $5,100 $34,206 $70,992 $83,410 $88,507

1.07% 0.00% 3.09% 4.06% 15.18% 0.00% 0.00% 0.00% 0.00% 3.30% 22.55% 45.98% 54.02% 57.32%

81 0 233 313 1,142 0 0 0 0 255 1,710 3,550 4,170 4,425

($7,686) T12 $0

T11 T11 T11 Note 2

Note 1

$174,000 ($15,900) $158,100

YEAR 1

% of GPR 9.14%

Per Unit 8,700 (795) 7,905

$174,000 ($3,480) $170,520

% of GPR 2.00%

Per Unit 8,700 (174) 8,526

$158,100 ($2,388) $0 $155,712

1.51% 0.00% 89.35%

7,905 (119) 0 7,786

$170,520 ($8,526) ($1,705) $160,289

5.00% 1.00% 92.00%

8,526 (426) (85) 8,014

$10,413 $5,097 $15,510

% of EGI 6.69% 3.27% 9.96%

Per Unit 521 255 776

$10,413 $5,097 $15,510

% of EGI 6.69% 3.27% 9.96%

Per Unit 521 255 776

$9,062 $3,614 $12,676 $36,786

6.02% 2.40% 8.14% 23.82%

453 181 634 1,839

$9,244 $3,686 $12,930 $36,440

5.94% 2.37% 8.30% 23.40%

462 184 646 1,822

$1,615 $0 $4,653 $6,267 $22,839 $0 $0 $0 $0 $5,100 $34,206 $70,992 $84,720 $89,817

1.07% 0.00% 3.09% 4.02% 15.18% 0.00% 0.00% 0.00% 0.00% 3.28% 22.48% 45.59% 54.41% 57.68%

81 0 233 313 1,142 0 0 0 0 255 1,710 3,550 4,236 4,491

$1,500 $2,000 $1,000 $4,500 $12,000 $1,000 $16,000 $1,500 $8,014 $5,100 $48,114 $84,554 $75,734 $80,831

0.94% 1.25% 0.62% 2.89% 7.49% 0.62% 9.98% 0.94% 5.00% 3.18% 30.10% 54.30% 48.64% 51.91%

75 100 50 225 600 50 800 75 401 255 2,406 4,228 3,787 4,042

1 2

UNDERWRITING NOTES

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

Repairs & Maint: $26,317 removed due to CAPEX

INCOME EXPENSE

IMPERIAL 20 - FINANCIALS

CASH FLOW

T12

YR 1 YE DEC-2024

YR 2 YE DEC-2025

YR 3 YE DEC-2026

YR 4 YE DEC-2027

YR 5 YE DEC-2028

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT

$174,000 ($15,900) $158,100

$174,000 ($3,480) $170,520

$179,220 ($3,584) $175,636

$184,597 ($3,692) $180,905

$190,134 ($3,803) $186,332

$195,839 ($3,917) $191,922

GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME

$158,100 ($7,686) $0 $150,414

$158,100 ($3,698) $0 $154,402

$158,100 ($2,388) $0 $155,712

$170,520 ($8,526) ($1,705) $160,289

$175,636 ($8,782) ($1,756) $165,097

$180,905 ($9,045) ($1,809) $170,050

$186,332 ($9,317) ($1,863) $175,152

$191,922 ($9,596) ($1,919) $180,406

Real Estate Taxes Insurance Utilities Contract Services Repairs & Maintenance Marketing & Promotion Labor General & Administrative Management Fee Replacement & Reserves TOTAL EXPENSES

$15,510 $8,600 $12,676 $6,267 $22,839 $0 $0 $0 $0 $5,100 $70,992

$15,510 $8,000 $12,930 $4,500 $12,000 $1,000 $16,000 $1,500 $8,014 $5,100 $84,554

$15,820 $8,160 $13,188 $4,590 $12,240 $1,020 $16,320 $1,530 $8,255 $5,202 $86,326

$16,137 $8,323 $13,452 $4,682 $12,485 $1,040 $16,646 $1,561 $8,503 $5,306 $88,135

$16,459 $8,490 $13,721 $4,775 $12,734 $1,061 $16,979 $1,592 $8,758 $5,412 $89,982

$16,789 $8,659 $13,996 $4,871 $12,989 $1,082 $17,319 $1,624 $9,020 $5,520 $91,870

NET OPERATING INCOME

$79,422

$83,410

$84,720

$75,734

$78,772

$81,916

$85,170

$88,537

NOI - NO TAX REASSESSMENT

$84,519

$88,507

$89,817

$80,831

$83,869

$87,013

$90,267

$93,634

NET CASH FLOW BEFORE DEBT SERVICE

$79,422

$83,410

$84,720

$75,734

$78,772

$81,916

$85,170

$88,537

DEBT SERVICE - Proposed New Loan Principal Payments Interest Payments TOTAL DS - Proposed New Loan

$7,771 $53,304 $61,075

$8,333 $52,742 $61,075

$8,935 $52,140 $61,075

$9,581 $51,494 $61,075

$10,274 $50,801 $61,075

CONSOLIDATED DEBT SERVICE

$61,075

NET CASH FLOW AFTER DEBT SERVICE DEBT SERVICE COVERAGE RATIO

$18,347 1.30

$22,335 1.37

$23,645 1.39

$14,660 1.24

$17,697 1.29

$20,841 1.34

$24,095 1.39

$27,462 1.45

T12 7.79% 7.79% 7.19% n/a

T6 8.18% 8.18% 8.76% n/a

T3 8.31% 8.31% 9.27% n/a

Yr 1 7.42% 7.42% 5.75% 16.55%

Yr 2 7.72% 7.72% 6.94% 16.19%

Yr 3 8.03% 8.03% 8.17% 15.96%

Yr 4 8.35% 8.35% 9.45% 15.78%

Yr 5 8.68% 8.68% 10.77% 15.65%

RETURN ANALYSIS CAP Rate (Purchase Price) 'All-In' CAP Rate (Total Cost) Cash-on-Cash Return IRR

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

Income Gross Potential Rent (Loss) / Gain to Lease* Other Income Expenses Expenses Management Fee**

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

0.00% 9.14% 3.00%

3.00% 9.14% 3.00%

3.00% 2.00% 3.00%

5.00%

2.00% 5.00%

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance Total Economic Loss

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

2.34% 0.00% 0.00% 0.00% 2.34%

1.51% 0.00% 0.00% 0.00% 1.51%

5.00% 0.00% 1.00% 0.00% 6.00%

Tax Breakdown Property Address 1320 Imperial Court 1330-1332 Imperial Court 1335-1337 Imperial Court Total

Parcel ID

Year Built

Acres

Market Value

Assessed Value

Tax Rate

Taxes Payable

D08-057222 D08-057221 D08-057215

1974 1974 1974

0.26 0.35 0.27 0.88

$162,400 $189,800 $161,400 $513,600

$56,840 $66,440 $56,490 $179,770

52.793920 52.793920 52.793920

$3,261.00 $3,911.00 $3,241.00 $10,413.00

Land Use Code 401 401 401

IMPERIAL 20

PRICING P U RC H A S E P R I C E

Target Purchase Price Per Unit Per RSF ACQUISITION / ADDITIONAL Projected Capital Expenditures Renovation Cost Closing Costs Transfer Tax Total Loan Fees Total Acquisition Costs P U R C H AS E P R I C E Total Cost Per Unit Per RSF

A N A LY S I S A S S U M P T I O N S

$1,020,000 $51,000 $72.86

$0 $0 $0 $0 $0 $0

$1,020,000 $51,000 $72.86

R E N T S U M M A RY ( M O N T H LY )

Analysis Period

10.00 Years

Analysis Start Date

Jan-2024

Terminal Cap Rate

6.50%

Cost of Sale

6.00%

AC Q U I S I T I O N F I N A N C I N G S U M M A RY Loan Amount

$765,000

Loan to Value (LTV)

75.00%

Loan to Cost (LTC)

75.00%

Existing or Proposed Loan

Proposed

Origination Date

Jan-2024

Interest Rate

7.00%

Years Interest Only

0.00

Equity Required

$255,000

Equity to Value

25.00%

Equity to Cost

25.00%

Avg. Effective Rent Avg. Current Market Rent Avg. Projected Rent

$834 $900 $1,100

TO TA L E X P E N S E S S U M M A R Y ( P E R U N I T ) T12 T6 T3

$3,550 $3,550 $3,550

NOI SUMMARY T12 T6 T3

$79,422 $83,410 $84,720

ECONOMIC LOSS SUMMARY T12 T6 10-Year Projected Avg.

4.86% 2.34% 5.18%

IMPERIAL 20

TA R G E T VA L U E PRICE $1,071,000 $1,054,000 $1,037,000 $1,020,000 $1,003,000 $986,000 $969,000

PER UNIT $53,550 $52,700 $51,850 $51,000 $50,150 $49,300 $48,450

P E R RS F $76.50 $75.29 $74.07 $72.86 $71.64 $70.43 $69.21

T3 TA X A D J. 7.91% 8.04% 8.17% 8.31% 8.45% 8.59% 8.74%

YEAR 1 7.07% 7.19% 7.30% 7.42% 7.55% 7.68% 7.82%

T3 N O TA X A D J. 10.73% 10.91% 11.09% 11.27% 11.46% 11.66% 11.86%

C A S H - O N - CAS H R E T U R N S

T3 TA X A D J. 8.83% 8.97% 9.12% 9.27% 9.43% 9.59% 9.76%

YEAR 1 5.48% 5.56% 5.65% 5.75% 5.85% 5.95% 6.05%

Year 3 (Fully Amortizing)

YEAR 2 6.61% 6.72% 6.83% 6.94% 7.06% 7.18% 7.31%

7.78% 7.91% 8.04% 8.17% 8.31% 8.45% 8.60%

Marketing the asset without a specific price allows us to customize our sales approach to each investor’s specific rehab costs, cost of debt and minimum return requirements.

SUGGESTED LIST PRICE: MARKET BID

Cash on Cash Return Internal Rate of Return (IRR) CAP Rate (Purchase Price) CAP Rate ("All-In") Gross Revenue Multiplier (GRM)

A L L- I N C A P R AT E

T3 N O TA X A D J. 8.39% 8.52% 8.66% 8.81% 8.95% 9.11% 9.27%

T12

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

7.19% n/a 7.79% 7.79% 6.45

8.76% n/a 8.18% 8.18% 6.45

9.27% n/a 8.31% 8.31% 6.45

5.75% 16.55% 7.42% 7.42%

6.94% 16.19% 7.72% 7.72%

8.17% 15.96% 8.03% 8.03%

9.45% 15.78% 8.35% 8.35%

10.77% 15.65% 8.68% 8.68%

12.78% 15.54% 9.02% 9.02%

14.24% 15.48% 9.38% 9.38%

15.76% 15.43% 9.74% 9.74%

IMPERIAL 20 - FINANCIALS

ADG IQ GRAPHS 28

tota l p r i c e

-7. 3%

TR A I LI NG N OI

+ 38. 7%

p r i c e pe r D O O R

-7. 3%

tr a i li ng c a p rat e

+59. 8%

LTC

+7. 1%

I NTER E ST R AT E

+ 16. 7%

AV E R AG E o ne BE D R E N T

+7. 8%

TR A I LI NG D EB T S ERV I C E

+34%

TROY, OH Troy is the county seat of Miami County, Ohio. Residents churches, two newspaper offices, a branch of Ohio’s state named the town after the ancient city of Troy. Established bank, one private academy, a Masonic hall, at least six warein 1808, Troy became the Miami County seat that same year, houses, three flourmills, five sawmills, one iron foundry, one replacing Staunton. Troy grew quickly, primarily due to its lo- machine shop, one shingle factory, and one plow factory. cation on the Great Miami River, on the Miami and Erie Ca- As of 2000 the median income for a household in the city was nal, and also on several important turnpikes. $39,531, and the median income for a family was $46,889. The per capita income for the city was $19,892. In 1840, Troy’s population was 1,351 people. The town’s population nearly doubled over the next six years, as more and more people moved to the region to take advantage of its transportation infrastructure. In 1846, the town contained six

3 R E AS O N S TO C H O O S E T ROY 1. QUALITY OF WORKFORCE A labor pool of over 700,000 workers. Three top-flight institutions devoted to strategically aligned and custom training. A proud and deeply ingrained work ethic. Your Troy team is your dream team, committed, agile, and highly skilled. 2. QUALITY OF OPPORTUNITY A motivated, highly skilled workforce drives top performance for domestic industry and 16 international manufacturers in Troy. Another key to our success: A central location just minutes from the I-75/I-70 interchange. When it comes to quality, we get it. When it comes to delivery, we get it there fast and cost-effectively. 3. QUALITY OF LIFE A vibrant downtown and urban core, a delectable dining and shopping mix that’s both traditional and up-to-the-moment, phenomenal recreation on thousands of acres of parkland and river, great schools, and attractive, affordable housing that holds its value. Enrich your life. Engage. Enjoy.

ADG MULTIFAMILY

D A Y T O N , oHIO Since the arrival of the first settlers on April 1, 1796, Dayton to today’s biggest issues. has always been a place for pioneering vision and change. With the crossroads of Interstate 70 and 75, the railroad caThey have hosted many firsts as the patent capital of the pacity, and the international airport, Dayton provides one U.S. and provided the world with a staggering number of of the most accessible cities in the nation. In fact, Dayton’s life-changing innovations and technological advancements. location puts it within one day’s drive of 60% of the U.S. Today they’re still setting trends and promoting growth. In population. The superior transportation makes us among the the research labs of Wright-Patterson Air Force Base, the most competitive mid-sized cities for logistics. 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

ECONOMIC OVERVIEW Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.6% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually, with roughly 3,900 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 9.6% year-over-year in 2nd quarter. In 2022, the metros inflation-adjusted economic output contracted 0.8%. At the same time, the metro recorded a net gain of 2,900 jobs, expanding the employment base 0.8%. As such, Dayton’s unemployment rate in November 2022 declined 0.4 points year-over-year to 3.2%, below the national average of 3.4%. During the past year, job gains in Dayton were most pronounced in the Leisure/Hospitality Services sector followed by Government and Professional/Business Services. Due to job losses stemming from the pandemic, Dayton’s current employment base now sits roughly 5,100 jobs or about 1% below the pre-pandemic level in February 2020.

the rent In 4th quarter 2022, same-store effective asking rents for new leases were up 8.4% year-over-year. That annual rent performance was well above the market’s five-year average of 4.8% and a new high for the market. s. In 4th quarter 2022, annual effective rent change was fairly even across the board, registering at 8.3% in Class A units, 8.2% in Class B units and 8.7% in Class C units. Among submarkets, the strongest annual rent change performances over the past year were in Northwest Dayton, North Dayton/Miami County and Greene County. The weakest performance was in South Montgomery County. In the coming year, same-store effective asking rent change in Dayton is expected to slow from the current level. As of 4th quarter 2022, effective asking rental rates in Dayton averaged $1,077 per month, or $1.182 per square foot.

D E M O G R A P H I C S : S TA T I S T I C S Population: 743,000

Msa median hhi: $54,457

Msa median home value: $69,400

Average occupancy: 96.2%

Median age: 33.5

1 - Year growth: 5.89%

1 - Year growth: 3.89%

Rent growth: 8.4%

S U P P LY New apartment completions in Dayton were modest recently, as 412 units delivered in 2022. Completions over the past year expanded the local inventory base 0.7%. In the past year, supply was greatest in Central Dayton/Kettering and Greene County. At the end of 2022, there were 886 units under construction with 661 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be limited to Central Dayton/Kettering and North Dayton/Miami County.

OCCUPANCY - Over the past year, occupancy lost 1.8 points, with the 4th quarter 2022 rate landing at 96.2%. - Looking at product classes in Dayton, 4th quarter 2022 occupancy registered at 95.3%. In Class A units, 96.5% in Class B units and 96.7% in Class C units. - Among submarkets, 4th quarter 2022 occupancy was strongest in Greene County and Central Dayton/Kettering. - The weakest reading was in Northwest Dayton.

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

c a r i l l o n h i s t o r i c a l pa r k 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.

a m e r i c a’ s pa c k a r d 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.

h i g h e r e d u c at i o n u n i v e r s i t y o f d ay t o n 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 temas, 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.

wright s tat e 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 throuigh 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.