Larkspur Apartments by Jordan.Dickman

LARKSPUR APARTMENTS offering memorandum 1

CONTENTS LEAD AGENTS Austin Hall Associate Cincinnati Office D. 513.878.7712 austin.hall@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.”

SECTIONS

01 - THE INVESTMENT

02 - local competitors

03 - FINANCIALS

04 - LOCAL MARKET

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.

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST YOUR TEAM

C ORPORATE SUPPORT

JO RDA N DI C K M A N FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

L IZ PO PP M IDW E ST OPE R ATIONS MANAG ER

NI C K A N DR E WS FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

JO S H CA R UA NA V ICE PR E SIDE N T R E GION A L M A N A GER IN DIA N A POL IS | C INC INNATI | LOUISVILLE | ST LOUIS | KANSAS C ITY

AUS TI N SUM S E NI OR I N V E S TME N T AS S OC I AT E B RIAN JO H N ST O N I NVE S TME N T A S S O C I AT E AUS TI N H a l l I NVE S TME N T A S S O C I AT E ALDEN SI M M S I NVE S TME N T A S S O C I AT E

JO HN S E BR E E SE N IOR V ICE PR E SIDENT N A T ION A L DIR E CTOR N A T ION A L M U LT I HOUSING G ROUP MICHA E L G L A S S SE N IOR V ICE PR E SIDENT M IDW E ST DIVISIO N MANAG ER N A T ION A L DIR E CTOR, MANUFAC TURED HOME C OMMUNITIES G ROUP

BROKER SUPPORT SAM PE T R O Si n o VALUA TI O N & R E S E AR C H

BR IT TA NY CA MPBE L L- KO CH DIR E CT OR OF OPE R A T ION S

B rett M a r t i n I nterna l A c co un tan t

A L E X PA PA M A R K E T IN G COOR DIN A T OR

THE INVESTMENT

LARKSPUR APARTMENTS

PROPERTY DETAILS Property Name: Property Address: City, State, Zip: Submarket: County: Year Built/Renovated: Number Of Units: Avg Unit Size: Rentable Sqft: Number of Parcels: Lot Size (Acres): # of Buildings: # of Stories: Current Occupancy: UTILITIES: Electric: Gas: Water Sewer Trash:

LARKSPUR Apartments 3480 Main St Moraine, OH 45439 Outer Montgomery County Montgomery 1981 45 Units, 1 Office 520 23,400 2 2.62 6 1 91%

Tenant None Owner Owner Owner

PHOTOS

LARKSPUR apartments

INVESTMENT HIGHLIGHTS

RENOVATION PLAN

UTILITY SETUP

Similar assets in the Dayton area have undergone renovations and are

The tenants cover both air conditioning and their heat through their elec-

achieving $1,000 per month for two-bedroom units. Slate Run is a very

tricity bill. This helps keep operating cost lower compared to properties

similar property that has pushed rents well above Larkspur’s average ef-

that have a gas boiler for heat.

fective and market rent ($760 for studios, $910 for ones, and $1,010 for twos). This provides an incoming investor a business plan to replicate and add value to the property. LOSS-TO-LEASE RECAPTURE Larkspur’s average effective rents are $100 lower than it’s current market rents, proving an avenue to renew leases at a higher rate and increase the NOI for the property.

DESIRABLE PROPERTY CHARACTERISTICS Larkspur has the unit configuration and features that are highly sought after in the rental market, including individual entrances/exits, single story apartments and washer/dryer hookups. These attract and retain tenants and help create an opportunity to push to top-of-market rents. Additionally, since 75% of the inventory in the Cincinnati and Dayton markets was built before 1980, the age of the asset will stand out against other properties on the market and attract incoming investors.

DEAL SUMMARY 23,400 45 520 R EN TABL E S QUA RE FEET

TOTA L UNITS

AVG SF

PROPERTY SUMMARY Studio

#1 Bedrooms

#2 Bedrooms

Occupancy

* 91% LARKSPUR APARTMENTS

RENT COMPETITORS

Competitors

N MA

LARKSPUR apartments

HOUSE

BRI

UN APTS KIN

R LE

RIC

HARD AP TS

SL A

E Y HOUSE TS

L O C AT I O N

CIT

CHA

SY ARMS

U X L’A I G L O

Y APTS

RVI

LLE AR

M S

CEN

S TA

THE

L LO I W

A TE

ORC

RD G L E N AP

rent sort STUDIO

Studio Property Slate Run Apartments Star City Apartments Centerville Arms Embassy Arms Subject Pro Forma Orchard Glen Chateaux L'Aiglon Subject Average Effective

Year Built 1985 1982 1964 1962 1981 1987 1968 1981

# Units 48 24 48 33 46 118 68 46

Avg SF 500 500 525 525 550 288 600 550

Avg Rent $760 $700 $700 $700 $695 $665 $651 $514

Avg Rent/SF $1.52 $1.40 $1.33 $1.33 $1.26 $2.31 $1.09 $0.93

rent sort ONE bedroom

One Bedroom Property King Richard Apartments Slate Run Apartments Subject Pro Forma Brinkley House Apartments Norman House Embassy Arms The Willows Orchard Glen Subject Average Effective

Year Built 1970 1985 1981 1960 1969 1962 1983 1987 1981

# Units 28 48 46 33 66 33 62 118 46

Avg SF 740 579 550 625 608 648 576 576 550

Avg Rent $960 $910 $835 $804 $800 $750 $725 $725 $614

Avg Rent/SF $1.30 $1.57 $1.52 $1.29 $1.32 $1.16 $1.26 $1.26 $1.12

rent sort TWO bedroom

Two Bedroom Property Maple Run King Richard Apartments Chateaux L'Aiglon Slate Run Apartments Centerville Arms Subject Pro Forma Brinkley House Apartments Norman House Orchard Glen The Willows Subject Average Effective

Year Built 1971 1970 1968 1985 1964 1981 1960 1969 1987 1983 1981

# Units 114 28 68 48 48 46 33 66 118 62 46

Avg SF 950 850 1042 864 800 700 725 888 876 864 700

Avg Rent $1,120 $1,060 $1,042 $1,010 $1,001 $935 $904 $900 $825 $825 $760

Avg Rent/SF $1.18 $1.25 $1.00 $1.17 $1.25 $1.34 $1.25 $1.01 $0.94 $0.95 $1.09

RENT COMPETITORS

king richard a pa rt m e n t s 1224 King Richard Pkwy, Dayton, OH 45449 UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom

UNITS 14

SQFT 740

RENT $960

28 1970 96.4% RENT/SF $1.30

Two Bedroom

850

$1,060

$1.25

Apartment Interior Amenities Patio Renovated Apartments Washer/Dryer Connections Common Area Amenities Laundry Facilities

RENT COMPETITORS

s l at e run

248 S Heincke Rd, Miamisburg, OH 45342 Units Year Built Occupancy UNIT MIX Studio

UNITS 5

SQFT 500

RENT $760

48 1985 95.8% RENT/SF $1.52

One Bedroom

579

$910

$1.57

Two Bedroom

864

$1,010

$1.17

Apartment Interior Amenities Renovated Units Washer/Dryer Connections Patios Common Area Amenities Laundry Facility

RENT COMPETITORS

orchard glen 3031 Orchard Glen Drive, Dayton, OH 45449 UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

UNITS 16

SQFT 288

RENT $665

118 1987 94.9% RENT/SF $2.31

One Bedroom

576

$725

$1.26

Two Bedroom

876

$825

$0.94

Apartment Interior Amenities Washer/Dryer Connections Patios Common Area Amenities Wooded Area Laundry Facility

RENT COMPETITORS

brinkley house apts 911-923 S Alex Rd, Dayton OH 45449 Units Year Built Occupancy UNIT MIX One Bedroom

UNITS 11

SQFT 625

RENT $804

33 1960 90.8% RENT/SF $1.29

Two Bedroom

725

$904

$1.25

Three Bedroom

1350

$1,105

$0.82

Apartment Interior Amenities Dishwasher Walk-in Closet Patio Common Area Amenities Laundry Facilities

FINANCIALS

LARKSPUR APARTMENTS- FINANCIALS

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

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

Studio

14 Units

400 SF

One Bedroom Two Bedroom

26 Units 5 Units

550 SF 700 SF

Totals / Wtd. Averages

45 Units

520 SF

23,400 SF

MARKET T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

5,600 SF

$514.17

$1.29

14,300 SF 3,500 SF

$614.23 $760.00

$1.12 $1.09

$599.30

$1.15 SF

$26,968

PROJECTED RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

NO. OF MARKET

% OF MARKET

$7,198

$575.00

2 Units

14%

$1.44 SF

$8,050

$695.00

$1.74 SF

$9,730

$15,970 $3,800

$750.00 $825.00

1 Units 1 Units

4% 20%

$1.36 SF $1.18 SF

$19,500 $4,125

$835.00 $935.00

$1.52 SF $1.34 SF

$21,710 $4,675

$703.89

4 Units

$1.35 SF

$31,675

$802.56

$1.54 SF

$36,115

SUMMARY

UNIT DISTRIBUTION

UNIT RENTS

LARKSPUR APARTMENTS- FINANCIALS

UNIT MIX BREAKDOWN UNIT TYPE

RENT INCREASE

% RENT INCREASE

N O . O F VA C A N T S ( H C )

% O F VA CA N T S

LOSS TO LEASE

Studio 0BR/1BA

$181

35.17%

2 Units

14.29%

$60.83

Totals / Wtd. Averages

$181

35.17%

2 Units

14.29%

$60.83

One Bedroom 1BR/1BA

$221

35.94%

0 Units

0.00%

$135.77

Totals / Wtd. Averages

$221

35.94%

0 Units

0.00%

$135.77

Two Bedroom 2BR/1BA

$175

23.03%

2 Units

40.00%

$65.00

Totals / Wtd. Averages

$221

35.94%

0 Units

0.00%

$135.77

SUMMARY Studio One Bedroom Two Bedroom

$181 $221 $175

35.17% 35.94% 23.03%

2 Units 0 Units 2 Units

14.29% 0.00% 40.00%

$60.83 $135.77 $65.00

Totals / Wtd. Averages

$203

33.92%

4 Units

8.89%

$104.59

INCOME EXPENSE

LARKSPUR APARTMENTS - FINANCIALS

INCOME & EXPENSES 32

CURRENT RENT ROLL: AS OF JULY 17, 2023 INCOME AND EXPENSES: ASSUMED EXPENSES GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT OTHER INCOME Pet Rent Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2022 Taxes Paid Total Real Estate Taxes Insurance Utilities Electric Water & Sewage Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion Labor Payroll Taxes & Benefits General & Administrative Management Fee Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$380,100 RR ($53,460) $326,640 RR

% of GPR 14.06%

Per Unit 8,447 (1,188) 7,259

$380,100 ($28,240) $351,860

% of GPR

$1,854 $1,854 $353,714 ($17,593) ($3,519) $332,603

5.00% 1.00% 86.57%

41 41 7,860 (391) (78) 7,391

7.43%

10.29% 0.00% 75.65%

40 40 7,299 (747) 0 6,552

$46,487 $46,487 $18,000 Note 2

% of EGI 15.77% 15.77% 6.11%

Per Unit 1,033 1,033 400

$46,487 $46,487 $18,000

13.98% 13.98% 5.41%

% of EGI 1,033 1,033 400

$1,800 Note 2 $21,600 T2 Note 3 $5,100 T2 Note 3 $28,500 $92,987

0.61% 7.33% 1.73% 9.67% 31.54%

40 480 113 633 2,066

$1,836 $22,032 $5,202 $29,070 $93,557

0.55% 6.62% 1.56% 8.74% 28.13%

41 490 116 646 2,079

$2,250 $5,625 $1,575 $9,450 $27,000 $2,250 $36,000 $3,375 $3,375 $17,690 $11,475 $110,615 $203,602 $91,238

0.76% 1.91% 0.53% 3.21% 9.16% 0.76% 12.21% 1.14% 1.14% 6.00% 3.89% 37.52% 69.06% 30.94%

50 125 35 210 600 50 800 75 75 393 255 2,458 4,524 2,028

$2,250 $5,625 $1,575 $9,450 $27,000 $2,250 $36,000 $3,375 $3,375 $19,956 $11,705 $113,111 $206,668 $125,935

0.68% 1.69% 0.47% 2.84% 8.12% 0.68% 10.82% 1.01% 1.01% 6.00% 3.52% 34.01% 62.14% 37.86%

50 125 35 210 600 50 800 75 75 443 260 2,514 4,593 2,799

Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1

0.53% 0.53%

Per Unit 8,447 (628) 7,819

$1,800 RR $1,800 $328,440 ($33,600) RR $0 $294,840

Note 2 Note 2 Note 2

0.55% 0.55%

YEAR 1

YEAR 2 $433,380 ($8,668) $424,712

YEAR 3

% of GPR 2.00% 0.45% 0.45%

Per Unit 9,631 (193) 9,438

$446,381 ($8,928) $437,454

% of GPR

$1,967 $1,967 $439,421 ($21,873) ($4,375) $413,173

5.00% 1.00% 92.00%

44 44 9,765 (486) (97) 9,182

2.00% 0.45% 0.45%

Per Unit 9,920 (198) 9,721

$1,910 $1,910 $426,622 ($21,236) ($4,247) $401,139

5.00% 1.00% 92.00%

42 42 9,480 (472) (94) 8,914

$46,487 $46,487 $18,360

% of EGI 11.59% 11.59% 4.58%

Per Unit 1,033 1,033 408

$46,487 $46,487 $18,727

% of EGI 11.59% 11.59% 4.67%

Per Unit 1,033 1,033 416

$1,873 $22,473 $5,306 $29,651 $94,498

0.47% 5.60% 1.32% 7.39% 23.56%

42 499 118 659 2,100

$1,910 $22,922 $5,412 $30,244 $95,459

0.48% 5.71% 1.35% 7.54% 23.80%

42 509 120 672 2,121

$2,295 $5,738 $1,607 $9,639 $27,540 $2,295 $36,720 $3,443 $3,443 $24,068 $11,939 $119,086 $213,584 $187,555

0.57% 1.43% 0.40% 2.40% 6.87% 0.57% 9.15% 0.86% 0.86% 6.00% 2.98% 29.69% 53.24% 46.76%

51 128 36 214 612 51 816 77 77 535 265 2,646 4,746 4,168

$2,341 $5,852 $1,639 $9,832 $28,091 $2,341 $37,454 $3,511 $3,511 $24,790 $12,177 $121,708 $217,167 $196,007

0.58% 1.46% 0.41% 2.45% 7.00% 0.58% 9.34% 0.88% 0.88% 6.00% 3.04% 30.16% 54.14% 48.86%

52 130 36 218 624 52 832 78 78 535 271 2,689 4,826 4,356

UNDERWRITING NOTES

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

Added based on market norms.

T2 from current ownership

INCOME EXPENSE

LARKSPUR APARTMENTS - FINANCIALS

CASH FLOW 34

CURRENT

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

YE JUN-2024

YE JUN-2025

YE JUN-2026

YE JUN-2027

YE JUN-2028

YE JUN-2029

YE JUN-2030

YE JUN-2031

YE JUN-2032

YE JUN-2033

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT OTHER TOTAL INCOME GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME

$380,100 ($53,460) $326,640 $1,800 $328,440 ($33,600) $0 $294,840

$380,100 ($28,240) $351,860 $1,854 $353,714 ($17,593) ($3,519) $332,603

$433,380 ($8,668) $424,712 $1,910 $426,622 ($21,236) ($4,247) $401,139

$446,381 ($8,928) $437,454 $1,967 $439,421 ($21,873) ($4,375) $413,173

$459,773 ($9,195) $450,577 $2,006 $452,584 ($22,529) ($4,506) $425,549

$473,566 ($9,471) $464,095 $2,046 $466,141 ($23,205) ($4,641) $438,295

$487,773 ($9,755) $478,018 $2,087 $480,105 ($23,901) ($4,780) $451,424

$502,406 ($10,048) $492,358 $2,129 $494,487 ($24,618) ($4,924) $464,946

$517,478 ($10,350) $507,129 $2,172 $509,300 ($25,356) ($5,071) $478,873

$533,003 ($10,660) $522,343 $2,215 $524,558 ($26,117) ($5,223) $493,217

$548,993 ($10,980) $538,013 $2,259 $540,272 ($26,901) ($5,380) $507,992

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

$46,487 $18,000 $28,500 $9,450 $27,000 $2,250 $36,000 $3,375 $3,375 $17,690 $11,475 $203,602

$46,487 $18,000 $29,070 $9,450 $27,000 $2,250 $36,000 $3,375 $3,375 $19,956 $11,705 $206,668

$46,487 $18,360 $29,651 $9,639 $27,540 $2,295 $36,720 $3,443 $3,443 $24,068 $11,939 $213,584

$46,487 $18,727 $30,244 $9,832 $28,091 $2,341 $37,454 $3,511 $3,511 $24,790 $12,177 $217,167

$47,417 $19,102 $30,849 $10,028 $28,653 $2,388 $38,203 $3,582 $3,582 $25,533 $12,421 $221,757

$48,365 $19,484 $31,466 $10,229 $29,226 $2,435 $38,968 $3,653 $3,653 $26,298 $12,669 $226,446

$49,332 $19,873 $32,096 $10,434 $29,810 $2,484 $39,747 $3,726 $3,726 $27,085 $12,923 $231,237

$50,319 $20,271 $32,738 $10,642 $30,406 $2,534 $40,542 $3,801 $3,801 $27,897 $13,181 $236,131

$51,325 $20,676 $33,392 $10,855 $31,015 $2,585 $41,353 $3,877 $3,877 $28,732 $13,445 $241,132

$52,352 $21,090 $34,060 $11,072 $31,635 $2,636 $42,180 $3,954 $3,954 $29,593 $13,714 $246,240

$53,399 $21,512 $34,741 $11,294 $32,267 $2,689 $43,023 $4,033 $4,033 $30,479 $13,988 $251,460

NET OPERATING INCOME

$91,238

$125,935

$187,555

$196,007

$203,792

$211,849

$220,187

$228,814

$237,741

$246,977

$256,532

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

0.00% 7.43% 3.00%

3.00% 2.00% 3.00%

6.00%

2.00% 6.00%

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

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

5.00% 0.00% 1.00% 0.00% 6.00%

Tax Breakdown Property Address 3452 Main St

Parcel ID J44-1041-1110-046

Year Built 1981

Acres 1.74

3452 Main St

J44-1041-1110-047

1981

0.88 2.62

Total

Market Value $957,000

Assessed Value $334,950

Tax Rate 0.032006

$493,000

$172,550

0.032164

$1,450,000

$507,500

Taxes Payable Land Use Code $30,629.97 C - Apartments 40 or More Units $15,856.97

C - Apartments 40 or More Units

$46,486.94

LOCAL MARKET

DAYTON 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 prod-

UNITS COMPLETIONS BY QUARTER Historic & Projected

uct 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.

600 500 400 300 200 0

22’ Q1

22’ Q2

22’ Q3

22’ Q4

23’ Q1

COMPLETED

23’ Q2

23’ Q3

23’ Q4

24’ Q1

UNDER CONSTRUCTION

QUARTER 1 JANUARY

FEBRUARY

MARCH

APRIL

M AY

JUNE

DAYTON VS NATIONAL RENT GROWTH Year-over-Year

RENT GROWTH SECTOR

QUARTERLY

YEARLY

1.3% -0.3% 0.0% -0.3% -0.4%

9.1% 8.9% 5.6% 5.5% 5.2%

Greene County North Dayton / Miami County South Montgomery County Central Dayton / Kettering Northwest Dayton

20% 15% 10% 5% 0%

Q1 2023 MARKET SNAPSHOT

Occupancy Y-O-Y Rent Growth Average Rent Per Unit

Pre1970s 95.8% 7.4% $873

1970s

1980s

1990s

2000+

95.3% 6.4% $927

95.8% 7.0% $993

96.7% 7.2% $1,181

95.2% 6.4% $1,442

EMPLOYMENT Unemployment Rate Jobs Added YTD

JUL 22’

AUG 22’

SEP 22’

OCT 22’

NOV 22’

DEC 22’

DAYTON

JAN 23’

FEB 23’

MAR 23’

NATIONAL

DAYTON RENT GROWTH BY ASSET CLASS Year-over-Year

3.9% 9,100

12% 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

8% 4% 0%

JUL 22’

AUG 22’

SEP 22’

LIFESTYLE

J U LY

AUGUST

SEPTEMBER

O C TO B E R

OCT 22’

NOV 22’

DEC 22’

JAN 23’

FEB 23’

MAR 23’

RENTERS BY NECESSITY

N OV E M B E R

DECEMBER

D AY T O N O C C U PA N CY 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%.

S U P P LY 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

1,310

units completed in past 12 months

units currently in progress

QUARTER 1 JANUARY

FEBRUARY

MARCH

APRIL

M AY

JUNE

HIGHEST OVERALL PERFORMING SUBMARKET SUBMARKETS

RENT

OCCUPANCY YOY

Springfield Xenia Dayton – East Huber Heights Beavercreek

$909 $944 $819 $1,120 $1,332

97.5% 98.0% 97.4% 96.3% 96.9%

14.5% 13.2% 11.6% 11.0% 9.9%

OCCUPANCY 91.8% 98.0% 98.2% 95.4% 95.4%

YOY 5.7% 5.6% 5.5% 5.1% 2.8%

DEVELOPMENT PIPELINE

LOWEST OVERALL PERFORMING SUBMARKETS SUBMARKETS Trotwood Miami Dayton-West Vandalia Miamisburg

RENT $911 $1,219 $799 $790 $1,202

T O TA L F U T U R E I N V E N T O RY G R O W T H SUBMARKET Central Dayton / Kettering North Dayton / Miami County South Montgomery County

CHANGE 5.5% 3.4% 1.5%

UNITS UNDER CONSTRUCTION SECTOR

UNITS

Central Dayton / Kettering North Dayton / Miami County South Montgomery County

850 283 177

J U LY

AUGUST

SEPTEMBER

O C TO B E R

N OV E M B E R

DECEMBER

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.” 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 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 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 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.