Laurel Springs OM by Jordan.Dickman

LAUREL SPRINGS 2024 20 Old Yellow Springs Rd, Fairborn, Ohio

CONTENTS LEAD AGENTS Nick Andrews First Vice President Investments Cincinnati Office

513.878.7741

Jordan Dickman First Vice President Investments Cincinnati Office D. 513.878.7735

Austin Sum Senior Associate Cincinnati Office

513.878.7747

Austin Hall Associate Cincinnati Office D. 513.878.7712

Laurel Springs Local Competitors Financials 06 16 22 SECTIONS

nicholas.andrews@marcusmillichap.com

jordan.dickman@marcusmillichap.com

austin.sum@marcusmillichap.com

austin.hall@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.”

300 WEST 4TH STREET, CINCINNATI, OH

$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

LOCAL EXPERTISE CINCINNATI DAYTON LEXINGTON LOUISVILLE

GLOBAL REACH,

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

Submarket:

County:

Year Built/Reno: 1963 Number Of Units: 128 Avg Unit Size: 805 Rentable Sqft: 103,040 Number of Parcels: 1 Lot Size (Acres): 6.14 # of Buildings: 8 # of Stories: 2 Current Occupancy: 98% Parking Type: Surface Parking Surface: Asphalt PROPERTY SUMMARY *OLD EXTERIOR PHOTOS

Property Address: 20 Old Yellow Springs Rd City, State, Zip: Fairborn, OH 45324

Fairborn/AFB

Greene

relative location

Laurel springs

downtown dayton

22 min drive (12.3 mi)

DAYTON MARKET

• 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, 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%.

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

NOTEWORTHY MENTIONS

WRIGHT STATE -140 UNDERGRAD PROGRAMS -20,000 JOBS -13,000 STUDENTS UNIVERSITY OF DAYTON -80 UNDERGRAD PROGRAMS -9,000 STUDENTS -$70M ECONOMIC IMPACT WRIGHT PAT AIR FORCE BASE - 28,000 JOBS - $4.3B ECONOMIC IMPACT - LARGEST SINGLE SIT EMPLOYER IN OH SCAN FOR QUARTERLY DATA

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present Laurel Springs, a 128-unit apartment complex located in Fairborn, OH. The community consists of sixty-four one-bedroom, one-bathroom and sixty-four three-bedroom, two-bathroom apartment units. The asset is currently 99% occupied and has 103,040 rentable sqft. on a total of 6.14 acres. Laurel Springs offers incoming investors the opportunity to capitalize on a renovation value add plan, benefit from the desirable property characteristics and recent capital expenditures in the desirable Fairborn submarket.

Renovation Value Add Plan – Many of Laurels Springs’ immediate competitors have renovated their one- and three-bedroom units to push rents. Four immediate competitors have three-bedroom rents $300 higher than Laurel Springs’ average effective rent of $886. Laurel Springs has renovated one three-bedroom unit with new cabinets, stainless-steel appliances, laminated wood flooring, upgraded fans and lights, and new paint. This achieved $1,300 in rent.

Positive Property Characteristics

– Laurel Springs has an almost even split of one- and three-bedroom units. There are only four other apartment communities in the 2-mile radius that have three-bedrooms units, totaling around 135 units. This high concentration of market-rate, three-bedroom units provides Laurel Springs a strategic advantage to lead the market and capture the demand for these. The three-bedroom units also have washer/dryer hookups, which are attractive to tenants and support the renovation value add plan.

Recent Capital Improvements – Laurel Springs has had over $1,000,000 in capital improvements made over the past two years. These include replacing seven of the eight roofs, new siding and facia on all buildings, painting all exteriors including decks, and replacing the cabinets in over sixty units.

Desirable Submarket – Fairborn is one of the more desirable submarkets in Dayton. The average occupancy in the 3-mile radius is 97%, which is 1.5% higher than the Dayton metro occupancy rate. The median household income in the 5-mile radius around Laurel Springs is $66,836 and the average household income is $87,982, both of which help support the higher rents with the renovation value add.

rent sort ONE bedroom

Laurel Springs $627 The Highlands $1,030 Wexford on the Green $942 Avalon Place $849 Ashton Brooke $984

University Woods $656 Breckenridge Apts $782 Treeborn Apts $800 Red Deer $900 The Village $1,240 Ivy Manor $800

One Bedroom Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF The Village at Stone Falls 1999 174 895 $1,240 $1.39 The Highlands 1988 302 649 $1,030 $1.59 Ashton Brooke of Beavercreek 2002 412 806 $984 $1.22 Wexford on the Green 1999 256 724 $942 $1.30 Subject Pro Forma 1963 126 615 $900 $1.46 Red Deer 1987 131 576 $900 $1.56 Avalon Place 1962 592 571 $849 $1.49 Ivy Manor 1964 155 650 $800 $1.23 Treeborn Apartments 1978 106 576 $800 $1.39 Breckenridge Apartments 1968 208 524 $782 $1.49 University Woods Apartments 1986 126 623 $656 $1.05 Subject Average Effective 1963 126 615 $627 $1.02 Market Average 1980 226 652 $876 $1.35 SECTION 2LOCAL COMPETITORS

rent sort

Laurel Springs $887 The Highlands $1,525 Avalon Place $989 Ashton Brooke $1,532 University Woods $930 Stoneybrook $1,350 The Village $1,683

three bedroom

Three Bedroom Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF The Village at Stone Falls 1999 174 1498 $1,683 $1.12 Ashton Brooke of Beavercreek 2002 412 1551 $1,532 $0.99 The Highlands 1988 302 1214 $1,525 $1.26 Stoneybrook Townhouses 1973 24 1100 $1,350 $1.23 Subject Pro Forma 1963 126 995 $1,300 $1.31 Avalon Place 1962 592 955 $989 $1.04 University Woods Apartments 1986 126 1270 $930 $0.73 Subject Average Effective 1963 126 995 $887 $0.89 Market Average 1980 235 1197 $1,275 $1.07 SECTION 2LOCAL COMPETITORS

UNITS 131 YEAR BUILT 1987 OCCUPANCY 92.4% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 93 576 $900 $1.56 UNITS 592 YEAR BUILT 1962 OCCUPANCY 96.8% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 263 571 $849 $1.49 Two Bedroom 305 733 $822 $1.12 Three Bedroom 24 955 $989 $1.04 2202 ROSEANNE CT 2196 ROCKDELL RD

SECTION 2 - LOCAL COMPETITORS

red deer avalon place

UNITS 412 YEAR BUILT 2002 OCCUPANCY 98.9% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 88 806 $984 $1.22 Two Bedroom 229 1164 $1,186 $1.02 Three Bedroom 95 1551 $1,532 $0.99 UNITS 256 YEAR BUILT 1999 OCCUPANCY 97.6% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 80 724 $942 $1.30 3025 FOUNTAIN DRIVE 1505 PLUM STREET ashton brooke wexford on the green SECTION 2 - LOCAL COMPETITORS

UNIT MIX BREAKDOWN

LAUREL SPRINGS 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 One Bedroom 1BR/1BA 64 Units 615 SF 39,360 SF $627.07 $1.02 SF $40,132 $649.00 $1.06 SF $41,536 $900.00 $1.46 SF $57,600 Totals / Wtd. Averages 64 Units 615 SF 39,360 SF $627.07 $1.02 SF $40,132 $649.00 $1.06 SF $41,536 $900.00 $1.46 SF $57,600 Three Bedroom 3BR/2BA 63 Units 995 SF 62,685 SF $880.44 $0.88 SF $55,468 $919.00 $0.92 SF $57,897 $1,300.00 $1.31 SF $81,900 3BR/2BA - Renovated 1 Units 995 SF 995 SF $1,300.00 $1.31 SF $1,300 $1,300.00 $1.31 SF $1,300 $1,300.00 $1.31 SF $1,300 Totals / Wtd. Averages 64 Units 995 SF 63,680 SF $887.00 $0.89 SF $56,768 $924.95 $0.93 SF $59,197 $1,300.00 $1.31 SF $83,200 Summary One Bedroom 64 Units 615 SF 39,360 SF $627.07 $1.02 $40,132 $649.00 $1.06 SF $41,536 $900.00 $1.46 SF $57,600 Three Bedroom 64 Units 995 SF 63,680 SF $887.00 $0.89 $56,768 $924.95 $0.93 SF $59,197 $1,300.00 $1.31 SF $83,200 Totals / Wtd. Averages 128 Units 805 SF 103,040 SF $757.03 $0.94 SF $96,900 $786.98 $0.98 SF $100,733 $1,100.00 $1.37 SF $140,800

SECTION 3

FINANCIALS

UNIT DISTRIBUTION UNIT RENTS

LAUREL SPRINGS T12 RENT ROLL: AS OF DECEMBER 28, 2023 INCOME AND EXPENSES: JANUARY 2023 - DECEMBER 2023 GROSS POTENTIAL RENT % of GPR Per Unit All Units at Market Rent $1,208,796 RR 9,444 Gain (Loss) to Lease 0 GROSS SCHEDULED RENT $1,208,796 RR 9,444 TOTAL OTHER INCOME $109,939 9.09% 859 GROSS POTENTIAL INCOME $1,318,735 10,303 Physical Vacancy ($44,843) T12 3.71% (350) Non-Revenue Unit ($11,028) T12 0.91% (86) Bad Debt ($24,782) T12 2.05% (194) Concessions Allowance ($76,868) T12 NOTE 2 6.36% (601) EFFECTIVE GROSS INCOME $1,161,214 86.97% 9,072 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit 2024 Taxes Paid $60,576 Auditor 5.22% 473 Total Real Estate Taxes $60,576 5.22% 473 Insurance $44,708 T12 3.85% 349 Utilities Electric $16,847 T12 1.45% 132 Water & Sewage $44,137 T12 3.80% 345 Trash Removal $21,102 T12 1.82% 165 Utilities $82,086 7.07% 641 Total Non-Controllable $187,370 16.14% 1,464 CONTROLLABLE Contract Services Security Expense $735 T12 0.06% 6 Snow Removal $10,449 T12 0.90% 82 Landscaping/Grounds $8,497 T12 0.73% 66 Pest Control $3,869 T12 0.33% 30 Contract Services $23,550 2.03% 184 Repairs & Maintenance $39,742 T12 3.42% 310 Marketing & Promotion $19,375 T12 1.67% 151 On-Site Payroll $181,119 T12 15.60% 1,415 Payroll Taxes & Benefits $45,122 T12 3.89% 353 General & Administrative $23,685 T12 2.04% 185 Management Fee $0 0.00% 0 Replacement & Reserves $38,400 Note 1 3.31% 300 Total Controllable $370,992 31.95% 2,898 TOTAL EXPENSES $558,362 48.08% 4,362 NET OPERATING INCOME $602,852 51.92% 4,710 EXPENSE INCOME UNDERWRITING NOTES # NOTE 1 Replacement & Reserves: added based on market norm of $300 per unit per year

T6 T3 FULLY STABILIZED % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit $1,208,796 RR 9,444 $1,208,796 RR 9,444 $1,689,600 13,200 0 0 ($33,792) 2.00% (264) $1,208,796 RR 9,444 $1,208,796 RR 9,444 $1,655,808 12,936 $110,322 9.13% 862 $110,834 9.17% 866 $114,159 6.89% 892 $1,319,118 10,306 $1,319,630 10,310 $1,769,967 13,828 ($44,224) T6 3.66% (346) ($36,470) T3 3.02% (285) ($82,790) 5.00% (647) ($11,028) T6 0.91% (86) ($11,028) T3 0.91% (86) $0 0.00% 0 ($17,526) T6 1.45% (137) ($357) T3 0.03% (3) ($8,279) 0.50% (65) ($64,641) T6 NOTE 2 5.35% (505) ($57,530) T3 NOTE 2 4.76% (449) ($16,558) 1.00% (129) $1,181,699 88.63% 9,232 $1,214,245 91.28% 9,486 $1,662,339 91.50% 12,987 % of EGI % of EGI Per Unit % of EGI $60,576 Auditor 5.13% 473 $60,576 Auditor 4.99% 473 $60,576 4.99% 473 $60,576 5.13% 473 $60,576 4.99% 473 $60,576 4.99% 473 $44,708 3.85% 349 $44,708 3.85% 349 $64,000 5.27% 500 $16,847 T12 1.45% 132 $16,847 T12 1.45% 132 $17,184 1.42% 134 $44,137 T12 3.80% 345 $44,137 T12 3.80% 345 $45,020 3.71% 352 $21,102 T12 1.82% 165 $21,102 T12 1.82% 165 $21,524 1.77% 168 $82,086 6.95% 641 $82,086 6.76% 641 $83,728 6.90% 654 $187,370 15.92% 1,464 $187,370 15.60% 1,464 $208,304 17.16% 1,627 $735 T12 0.06% 6 $735 0.06% 6 $1,280 0.08% 10 $10,449 T12 0.90% 82 $10,449 0.90% 82 $9,600 0.58% 75 $8,497 T12 0.73% 66 $8,497 0.73% 66 $9,600 0.58% 75 $3,869 T12 0.33% 30 $3,869 0.33% 30 $4,480 0.27% 35 $23,550 1.99% 184 $23,550 1.94% 184 $24,960 2.06% 195 $39,742 T12 3.42% 310 $39,742 T12 3.42% 310 $76,800 4.62% 600 $19,375 T12 1.67% 151 $19,375 T12 1.67% 151 $12,800 0.77% 100 $181,119 T12 15.60% 1,415 $181,119 T12 15.60% 1,415 $115,200 6.93% 900 $45,122 T12 3.89% 353 $45,122 T12 3.89% 353 $19,200 1.15% 150 $23,685 T12 2.04% 185 $23,685 T12 2.04% 185 $12,800 0.77% 100 $0 0.00% 0 $0 0.00% 0 $66,494 4.00% 519 $38,400 Note 1 3.25% 300 $38,400 Note 1 3.16% 300 $38,400 2.31% 300 $370,992 31.86% 2,898 $370,992 31.72% 2,898 $366,654 22.61% 2,864 $558,362 47.25% 4,362 $558,362 45.98% 4,362 $574,958 47.35% 4,492 $623,337 52.75% 4,870 $655,882 54.02% 5,124 $1,087,382 89.55% 8,495 UNDERWRITING NOTES # NOTE 2 Concessions: Include ‘Concession Charge’, ‘Residential Refferal’, ‘Market Adjustment Concession’, ‘Resident Relations’, and BUT PER OWNER ACCOUNTING, ALSO INCLUDES LOSS TO LEASE

T12 T6 T3 YR 1 YR 2 YR 3 YR 4 YR 5 YE JAN-2025 YE JAN-2026 YE JAN-2027 YE JAN-2028 YE JAN-2029 GROSS POTENTIAL RENT All Units at Market Rent $1,208,796 $1,208,796 $1,208,796 $1,689,600 $1,740,288 $1,792,497 $1,846,272 $1,901,660 Gain (Loss) to Lease $0 $0 $0 ($33,792) ($34,806) ($35,850) ($36,925) ($38,033) GROSS SCHEDULED RENT $1,208,796 $1,208,796 $1,208,796 $1,655,808 $1,705,482 $1,756,647 $1,809,346 $1,863,626 TOTAL OTHER INCOME $109,939 $110,322 $110,834 $114,159 $116,442 $118,771 $121,146 $123,569 GROSS POTENTIAL INCOME $1,318,735 $1,319,118 $1,319,630 $1,769,967 $1,821,924 $1,875,418 $1,930,492 $1,987,196 Physical Vacancy ($44,843) ($44,224) ($36,470) ($82,790) ($85,274) ($87,832) ($90,467) ($93,181) Bad Debt ($24,782) ($17,526) ($357) ($8,279) ($8,527) ($8,783) ($9,047) ($9,318) EFFECTIVE GROSS INCOME $1,161,214 $1,181,699 $1,214,245 $1,662,339 $1,711,068 $1,761,236 $1,812,885 $1,866,060 Real Estate Taxes $60,576 $60,576 $60,576 $60,576 $61,788 $63,023 $64,284 $65,569 Insurance $44,708 $44,708 $44,708 $64,000 $65,280 $66,586 $67,917 $69,276 Utilities $82,086 $82,086 $82,086 $83,728 $85,403 $87,111 $88,853 $90,630 Contract Services $23,550 $23,550 $23,550 $24,960 $25,459 $25,968 $26,488 $27,018 Repairs & Maintenance $39,742 $39,742 $39,742 $76,800 $78,336 $79,903 $81,501 $83,131 Marketing & Promotion $19,375 $19,375 $19,375 $12,800 $13,056 $13,317 $13,583 $13,855 On-Site Payroll $181,119 $181,119 $181,119 $115,200 $117,504 $119,854 $122,251 $124,696 Payroll Taxes & Benefits $45,122 $45,122 $45,122 $19,200 $19,584 $19,976 $20,375 $20,783 General & Administrative $23,685 $23,685 $23,685 $12,800 $13,056 $13,317 $13,583 $13,855 Management Fee $0 $0 $0 $66,494 $68,443 $70,449 $72,515 $74,642 Replacement & Reserves $38,400 $38,400 $38,400 $38,400 $39,168 $39,951 $40,750 $41,565 TOTAL EXPENSES $558,362 $558,362 $558,362 $574,958 $587,076 $599,455 $612,101 $625,020 NET OPERATING INCOME $602,852 $623,337 $655,882 $1,087,382 $1,123,992 $1,161,780 $1,200,784 $1,241,040 INCOME EXPENSE LAUREL SPRINGS CASH FLOW Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable 20 Old Yellow Springs Rd A02-0002-0010-0002-600 1963 6.14 $3,208,890 $74,767 0.002330 $60,576.00 Total 6.14 $3,208,890 $74,767 $60,576.00

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS T12 T6 T3 YR 1 YR 2 INCOME Gross Potential Rent 39.78% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 0.00% 0.00% 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** 4.00% 4.00% 4.00% 4.00% 4.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS T12 T6 T3 YR 1 YR 2 Physical Vacancy 3.66% 3.02% 5.00% 5.00% 5.00% Non-Revenue Units 0.91% 0.91% 0.00% 0.00% 0.00% Bad Debt 1.45% 0.03% 0.50% 0.50% 0.50% Concessions Allowance 5.35% 4.76% 1.00% 1.00% 1.00% Total Economic Loss 11.37% 8.72% 6.50% 6.50% 6.50%

RELATIVE LOCATION

DAYTON MARKET

• 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%.

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

NOTEWORTHY MENTIONS

min drive

mi)

downtown dayton Laurel springs 22

(12.3

quarterly REPORT

OCCUPANCY

1| Occupancy in the Dayton apartment market has ranged from 95.4% to 98.0% over the past five years, averaging 96.6% during that period. 2| Over the past year, occupancy lost 1.1 points, with the 3rd quarter 2023 rate landing at 95.5%. 3| Looking at product classes in Dayton, 3rd quarter 2023 occupancy registered at 94.4% in Class A units, 96.1% in Class B units and 95.8% in Class C units. 4| Occupancy in the more affordable Class C product was generally tightest over the past five years. Among submarkets, 3rd quarter 2023 occupancy was strongest in Greene County (96.6%) and Central Dayton/Kettering (95.9%).

SUPPLY

1| New apartment completions in Dayton were modest recently, as 737 units delivered in the year-ending 3rd quarter 2023. Completions over the past year expanded the local inventory base 1.3%. 2| In the past year, supply was greatest in Central Dayton/Kettering, with only North Dayton/Miami County and South Montgomery County receiving any additional supply. Annual new supply averaged 534 units, and annual inventory growth averaged 1.0% over the past five years. 3| During that period, new supply was concentrated in Central Dayton/Kettering and South Montgomery County, which received 66% of the market’s total completions. At the end of 3rd quarter 2023, there were 1,235 units under construction with 931 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.

QUARTER

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

LAUREL SPRINGS