MAPLE GLEN APARTMENTS & TOWNHOuSes PROPOSAL
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.”
06 28 38 48 62 74
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.
01 - OUR ADVANTAGE 02 - ADVANCED STRATEGY 03 - THE INVESTMENT 04 - local competitors 05 - FINANCIALS 06 - LOCAL MARKET SECTIONS
Dear Indira,
Thank you for allowing Marcus & Millichap the opportunity to provide a current broker opinion of value (proposal) for Maple Glen Apartments and Townhouses in Cincinnati.
We are excited for the possibility to work with you on the marketing and sale of this asset. As you review this package, you will find our team has had great success in executing multifamily transactions in the Midwest markets. We have an excellent track record of selling the “story” behind each asset we market. We will ensure maximum market value by identifying a diverse buyer pool and leveraging Marcus & Millichap’s national platform to create the most competitive environment for sale.
Nicholas Andrews Austin Hall Austin Sum
INVESTMENT ASSOCIATES
Austin Sum
Senior Associate
Brian Johnston
Associate
Austin Hall
Associate
Alden Simms
Associate RESEARCH & EVALUATION
Sam Petrosino
Financial Analyst
CLIENT RELATIONS
Skyler Wilson
Client Relations Manager
MARKETING
Alex Papa
Marketing Coordinator
OPERATIONS
Brittany Campbell-Koch
Director of Operations
OUR ADVANTAGE
01
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
CORPORATE SUPPORT
LIZ POPP
MIDWEST OPERATIONS MANAGER
JOSH CARUANA
VICE PRESIDENT
REGIONAL MANAGER
INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY
AUSTIN SUM
SENIOR INVESTMENT ASSOCIATE
BRIAN JOHNSTON
INVESTMENT ASSOCIATE
AUSTIN Hall
INVESTMENT ASSOCIATE
ALDEN SIMMS
INVESTMENT ASSOCIATE
BROKER SUPPORT
SAM PETROSino
VALUATION & RESEARCH
SKYLER WILSON
CLIENT RELATIONS MANAGER
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
BRITTANY CAMPBELL-KOCH
DIRECTOR OF OPERATIONS
ALEX PAPA
MARKETING COORDINATOR
value of recently closed
$84.4 billion transactions in most recent year
PREMIER INVESTMENT SERVICES
Marcus & Millichap is the premier commercial real estate investment services firm in the United States. Founded in 1971 on a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades’ worth of experience and relationships to handle all of your commercial real estate needs. Our team of more than 2,000 professionals in the U.S. and Canada focuses exclusively on real estate investment sales, financing, research, and advisory services.
FOUNDED IN 1971 ON A UNIQUE METHODOLOGY
LARGEST POOL OF PRE-QUALIFIED INVESTORS IN THE INDUSTRY
MOVES CAPITAL ACROSS OUR NETWORK OF INVESTMENT PROFESSIONALS
MORE THAN 2,000 INVESTMENT PROFESSIONALS IN THE U.S. & CANADA
ACCESS TO THE INDUSTRY’S
MATCHING BUYERS & SELLERS
RESULTING IN THE MOST EFFICIENT PROCESS OF LOCALLY, REGIONALLY & NATIONALLY.
WITH AN EXCLUSIVE FOCUS ON REAL ESTATE INVESTMENT SALES, FINANCING, RESEARCH, AND ADVISORY SERVICES
LARGEST POOL OF PRIVATE & INSTITUTIONAL INVESTORS
LEADING NATIONAL PLATFORM
#1 U.S. brokerage in number of transactions
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.
1031 EXCHANGE LEADER
13,255 Transactions
In most recent year
6.74 Transactions closed Every Business Hour MOVING CAPITAL. MAXIMIZING VALUE.
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.
80+ OFFICES THROUGHOUT THE UNITED STATES & CANADA
INVESTMENT OPTIONS & OPPORTUNITIES
The success of Marcus & Millichap is based on our collaborative culture of information sharing across our network of more than 2,000 investment professionals, which maximizes value for each of our clients.
Working with a unique platform that is antithetical to the concept of “pocket listings,” our investment professionals share all listings with the entire Marcus & Millichap team. Each professional specializes in a property type and has a database of local properties and owners, which is leveraged in every client assignment. Because each local agent specializes in a single product type in a specific geographic region, our clients have exposure across the U.S. and Canada with every investment..
Our foundation of information sharing maximizes pricing for our clients and gives us the largest inventory of any firm in the industry.
THE SIZE AND ACCESSIBILITY OF OUR INVENTORY ENABLES YOU TO SELL YOUR PROPERTY AND QUICKLY MOVE INTO ANOTHER PROFITABLE INVESTMENT.
2,000+ $84.4B
INVESTMENT PROFESSIONALS
VALUE OF RECENTLY CLOSED TRANSACTIONS IN MOST RECENT YEAR
LARGEST
INVENTORY OF PROPERTIES FOR ALL PRODUCT TYPES
THE NATION’S
3,859 3,378 EXCLUSIVE LISTINGS IN MOST RECENT YEAR RETAIL MULTIHOUSING OFFICE INDUSTRIAL LAND HOSPITALITY MIXED-USED SELF-STORAGE MANU HOUSING SENIOR HOUSING
GAIN ACCESS TO
EXCLUSIVE
4,400
GEOGRAPHIC BOUNDARIES
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
AREN’T BOUND BY
GLOBAL CAPITAL GROUP
The Marcus & Millichap GLOBE Capital Group provides the opportunity to expose your property to more foreign buyers with the guided expertise of our senior investment specialists. Our firm is comprised of 80+ offices throughout the US and Canada, and we provide investors with exclusive investment opportunities, financing capabilities, research, and advisory services.
& MILLICHAP
MARCUS
GERMANY CHINA JAPAN SOUTH K SINGAPORE ISRAEL
OREA $2.08 BILLION $5.80 BILLION $22.58 BILLION $10.87 BILLION $49.65 BILLION $808 MILLION $4.84 BILLION $6.82 BILLION $2.14 BILLION
CANADA FRANCE
SWITZERLAND
PREMIER INVESTMENT SERVICES
LARGEST BUYER POOL
With more inventory than any other firm, buyers seek Marcus & Millichap to fulfill their investment acquisition needs.
MORE 1031 BUYERS COMPETITIVE
BID PROCESS
Our structured marketing process, coupled with the industry’s largest sales force, creates a competitive bidding environment for your listing
We maintain active relationships with the industry’s largest pool of 1031 exchange buyers, the most coveted buyers in the market.
This is why clients choose Marcus & Millichap over local, regional, or other national firms
#1 choice in multifamily
Marcus & Millichap’s National Multi Housing Group (NMHG) provides the industry’s most dynamic and effective marketplace for the acquisition and disposition of apartment properties. With multifamily specialists in offices throughout the U.S. and Canada, NMHG is the industry leader in apartment transactions, having successfully executed on our clients’ behalf more than $106 billion of sales volume in the past five years.
CBRE
MARCUS & MILLICHAP
CUSHMAN & WAKEFIELD
JLL NKF NAI
COLLIERS INTERNATIONAL
LEE
COLDWELL BANKER 4,400 3,311 2,169 1,626 1,550 1,414 961 918 600 593
KELLER WILLIAMS
& ASSOCIATES
ADVISORY SERVICES ACROSS THE OWNERSHIP LIFE CYCLE
Whether you’re looking to buy, sell, refinance, or hold, Marcus & Millichap leverages real-time market research to assess local and national trends, with specialized focus on individual property types. Backed by the collaborative culture of industry experts, your local investment professional will walk you through each phase of your investment strategy.
INVESTOR CONCERNS
• Is holding my asset the most profitable choice in this market?
• How can I best take advantage of the capital markets to maximize my returns?
• Based on my investment risk tolerance and objectives, what opportunities should I consider?
INVESTOR CONCERNS
• Is now the right time to sell?
• How can I leverage the capital markets to maximize my results?
• How do I optimize my position via a disposition?
• What alternatives and associated
INVESTOR CONCERNS
• When is the right time to buy?
• What investment opportunities are available for my consideration?
• What are the risks in the current market?
• What are my financing options?
• How will an acquisition impact my portfolio’s returns?
MARCUS & MILLICHAP’S SOLUTIONS
• Strategic “hold” analysis
• Refinance and capitalization options
• Quarterly investment return analysis
• Ongoing market and submarket research
• Ongoing product-specific research
MARCUS & MILLICHAP’S SOLUTIONS
• Value and market positioning analysis
• Disposition buyer financing
• New acquisition financing
• 1031 exchange investment alternatives analysis
MARCUS & MILLICHAP’S SOLUTIONS
• Pre-acquisition analysis
• Financial investment analysis
• Market and submarket research
• Product-specific research
CAPITAL CORPORATION CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources, providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac, and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues for the benefit of our clients.
WHY MMCC?
Optimum financing solutions to enhance value
Enhanced control through MMCC’s ability to qualify investor finance contingencies
Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives
CLOSED 1,943 DEBT AND EQUITY FINANCINGS IN MOST RECENT YEAR
NATIONAL PLATFORM OPERATING WITHIN THE FIRM’S BROKERAGE OFFICES
$7.67 BILLION TOTAL NATIONAL VOLUME IN MOST RECENT YEAR
Enhanced control through MMCC’s ability to monitor investor/due diligence and underwriting to ensure timely, predictable closings
MARCUS & MILLICHAP
ACCESS TO MORE CAPITAL SOURCES THAN ANY OTHER FIRM IN THE INDUSTRY
SELECT CLIENTS
22
SELECT CLIENTS
23
NOTEWORTHY DEALS
ANDREWS DICKMAN TRACK RECORD
$13,843,387 | 161 Units
LaRose, Cincinnati, Ohio
$9,200,000 | 139 Units
Northside Flats, Cincinnati, Ohio
$6,262,760 | 96 Units
Eagle Watch, Cincinnati, Ohio
$6,220,760 | 96 Units
Wyoming, Cincinnati, Ohio
$4,344,556 | 73 Units
Williamstown, Cincinnati, Ohio
$30,500,000 | 240 Units
Burlington Oaks, Burlington, KY
$10,500,000 | 176 Units
King’s View, Cincinnati, Ohio
$4,045,000 | 65 Units
Berkshire, Cincinnati, Ohio
PROPERTY NAME CITY STATE CLOSED PRICE STRIKE PRICE RATIO Views of Mount Airy Cincinnati Ohio $15,000,000 $15,250,000 98% Springfield Portfolio Springfield Ohio $13,880,000 $13,990,700 99% Arts Apartments at Music Hall Cincinnati Ohio $9,400,000 $9,800,000 96% 1840 Flats Lexington Kentucky $13,750,000 $14,000,000 98% Union Hill & Studio Apartments Dayton Ohio $13,000,000 $13,000,000 100% Kentucky Towers Louisville Kentucky $17,700,000 $18,500,000 96% Charleston Portfolio Charleston West Virginia $43,900,000 $44,000,000 99% Woodland Acres Lewisburg West Virginia $6,600,000 $6,600,000 100% Wayne Estates Dayton Ohio $7,425,000 $7,000,000 106% Kings View Cincinnati Ohio $10,500,000 $10,700,000 99% Woods & Grinstead Louisville Kentucky $15,150,000 $15,200,00 99% Roselawn Village Cincinnati Ohio $9,287,500 $9,400,000 99% Residences at Summit View Cincinnati Ohio $7,350,000 $7,400,000 99% Southview Manor Highland Heights Kentucky $4,850,000 $4,850,000 100% Holly Hills Louisville Kentucky $4,925,000 $4,950,000 99% Oldham Oaks La Grange Kentucky $22,896,000 $23,500,000 97% Eagle Watch Apartments Cincinnati Ohio $3,740,000 $3,500,000 107%
PLANNING FOR THE FUTURE. EXECUTING TODAY.
Our cutting-edge market research helps us advise our clients of existing asset performance and future opportunities.
ADVANCED STRATEGY
02
ATTRACTING THE TARGET BUYER
To successfully execute a marketing campaign, it is critical to understand the likely buyer profiles that will be attracted to the asset, in addition to their respective approval process, corporate structure and underwriting methodology.
Whether it be a private investor, pension fund advisor, sponsored capital group, family office, or a discretionary fund manager, every investment group has an approval process/corporate structure that dictates their ability to process with a transaction. We pride ourselves on maintaining vast and deep relationships with each of the buyer profiles that are active in the market place today coupled with a thorough under standing of their required investor returns and standards of underwriting.
$731M $1.6B $427M $431M $645M $127M
PREMIER ACCESS TO INVESTOR PROFILES
1ST TIER INVESTORS
Pension funds, advisors, banks, REITs, and life insurance companies
2ND TIER INVESTORS
Syndicates, developers, merchant builders, general partnerships, and professional investors
FOREIGN & INTERNATIONAL BUYERS
Foreign investors seeking domestic opportunities and technology enablers that direct foreign demand
1031
EXCHANGE CAPITAL
Investors seeking acquisition opportunities for capital gains tax deferral
CROSS-PRODUCT CAPITAL
Opportunistic investors seeking diversification in other real estate property types
3RD TIER INVESTORS
Private, individual investors who account for the majority of transactions in the marketplace
days
ACTIVE MARKETING
ProActive In-Person Meetings
Direct Phone Calls & Emails
Strategic Property
E-Campaigns
Distribution of offering Materials
On-site Property Tours
Weekly Seller Updates
Offering Procurement
Field Initial Offers
Best & Final Offering Round
Conduct Buyer Interviews Select Buyer Negotiate Contract
OFFER PROCUREMENT
days
marketing
CONTINGENCY PERIOD CLOSE OF ESCROW Contingency Period Title Work On-Site Property Inspections Third Party Inspections timeline days days
COMMERCIAL REAL ESTATE
POWERFUL TOOLS - MNET
OUR PROPRIETARY TECHNOLOGY PLATFORM, MNET, IS A GAME-CHANGER. NO OTHER FIRM OFFERS ANYTHING LIKE IT OR THE POWERFUL PROPERTY SEARCH TOOLS AND AUTOMATED PROPERTY MATCHING CAPABILITIES IT FEATURES.
ADVANCE SEARCH CAPABILITIES
$18B +
OF CURRENT INVENTORY
1.2M
SEARCHES ANNUALLY
3,500 +
EXCLUSIVE LISTINGS
POPULATION HH INCOME RADIUS FINANCIALS
RCM & CREXI CREXI
Commercial Real Estate Exchange, Inc. (CREXI) is the commercial real estate industry’s fastest-growing marketplace, advanced technology and data platform dedicated to sup porting the CRE industry and its stakeholders. Crexi enables commercial real estate pro fessionals to quickly streamline, manage, grow their businesses, and ultimately close deals faster. Since launching in 2015, Crexi has quickly become the most active market place in the industry. With millions of users, the platform has helped buyers, tenants and brokers transact and lease on over 500,000 commercial listings totaling more than $1 trillion in property value.
Real Capital Markets (RCM) is the GLOBE marketplace for buying and selling CRE. RCM increases the speed, exposure, and security of CRE sales through its streamlined online platform. Solu tions include integrated property marketing, trans action management, and business intelligence tools to unify broker-level and firm-level data and work flows.
RCM
DIGITAL E-MARKETING
The main advantage of digital marketing is that a targeted audience can be reached in a cost-effective and measurable way. Over the course of the past several years, our team has managed to collect over twenty thousand emails of potential investors, in a variety of states across the US. This database allows us to tailor future investment opportunity to each investor, and their desired goal. Not only does this database allow us to personalize emails, but it also allows us to measure the results of our out reach.
EMAILS SENT THIS CURRENT MONTH
OVER 190K
EMAIL OPENS OVER 60K IN OUR MAILING LIST OVER 20K
INDUSTRY AVERAGE
OPEN RATE: 29.97%
CLICK RATE: .75%
ADG OPEN RATE
34%
ADG CLICK RATE
1.5% OVER 1.2K CLICK THROUGH
“Email has an ability many channels don’t: creating valuable personal touches - at scale.”
social media
Social media helps us engage with our potential clients and find out what is being said about our business. We also use social media for advertising, attracting clients, get client feedback, build better customer loyalty, increase our market reach, develop our brand etc. Social media is a great tool to use in our industry, especially for building new relationships and keeping up with the market.
ADG IS ON
6
PLATFORMS
OVER 1K NEW RELATIONSHIPS MADE
MONTHLY IMPRESSIONS ON ISSUU
OVER 1.2K
OVER 3K IMPRESSIONS ON LINKEDIN
PLATFORMS
THE INVESTMENT
03
PROPERTY DETAILS
Property Name: Maple Glen Apartments & Townhouses
Property Address: 720 Ohio Pike
City, State, Zip: Cincinnati, OH 45245
Submarket: Outer Clermont County County: Clermont
UTILITIES:
Electric: Tenant
Gas: None
Water Owner
Sewer Owner
Trash: Owner
MAPLE GLEN
Year
units 2019 Number Of Units: 84 Avg Unit Size: 1,092 Rentable Sqft: 91,728 Number of Parcels: 1 Lot Size (Acres): 5.42 # of Buildings: 7 #
Built/Renovated: 33 units 1975; 28 units 1988; 23
of Stories: 2-stories and 3-stories Current Occupancy: 96 %
PHOTOS
INVESTMENT HIGHLIGHTS
STRONG SUBMARKET
Maple Glen Apartments and Townhouses is located in the Outer Clermont County submarket on the east side of Cincinnati. The average income for the 2-mile radius around the property is $94,787 and the median home value within a 5-mile radius is $212,172. Rents have continued to grow as shown by an 8.2% increase year-over-year in May 2023 with occupancy holding strong at 97.3% (Yardi).
RENOVATION PLAN
Maple Glen Apartments and Townhouses has had 50 of its 84 units renovated. The ones are getting around a $100 premium, twos $250 and townhouses $200. The renovations have included new flooring, cabinets, appliances, fixtures and bathrooms. This provides an avenue for an incoming investor to further increase revenue by continuing the proven renovation value add plan.
DESIRABLE ASSET
Maple Glen Apartments and Townhouses has desirable characteristics for many investors including size, unit bedroom counts, and age of construction. Eighty-four units on a single site is large enough for many investors to have a dedicated management team, which helps to attract out-ofstate capital. Also, over 85% of the units are two bedrooms or larger which provides the property with higher potential income and is more attractive to investors. Twenty-six of the units are townhouses which have become more popular in recent years due to the COVID pandemic and many families being priced out of single-family homes. Finally, over half of the units are 1980’s vintage or newer. This stands out in the Cincinnati apartment market as 75% of the apartments were built in the 1970’s or earlier.
MAPLE GLEN
84 1,092 #1 Bedrooms 9 #2 Bedrooms 72 #3 Bedrooms 3 Occupancy 100%
RENTABLE SQUARE FEET TOTAL UNITS AVG SF
*
91,711
PROPERTY SUMMARY DEAL SUMMARY
MAPLE GLEN
1. Strong Submarket -Maple Glen Apartments and Townhouses is located in the Outer Clermont County submarket on the east side of Cincinnati. The average income for the 2-mile radius around the property is $94,787 and the median home value within a 5-mile radius is $212,172. Rents have continued to grow as shown by an 8.2% increase year-over-year in May 2023 with a strong occupancy of 97.3% (Yardi).
2. Desirable Asset - Maple Glen Apartments and Townhouses has desirable characteristics for many investors including size, unit bedroom counts, and age of construction. Eighty-four units on a single site is large enough for many investors to have a dedicated management team, which helps to attract out-ofstate capital. Over 85% of the units are two bedrooms or larger. This provides the property with a higher potential income and is more attractive to investors. Additionally, twenty-six of the units are townhouses. These have become more popular in recent years due to the COVID pandemic and many individuals being priced out of single-family homes. Finally, over half of the units are 1980’s vintage or newer. This stands out in the Cincinnati apartment market where 75% of the apartments were built in the 1970’s or earlier.
3. Renovation Plan - Maple Glen Apartments and Townhouses has had 50 of its 84 units renovated. The renovated ones are getting around a $100 premium, renovated twos $250 and renovated townhouses $200. The renovations have included new flooring, cabinets, appliances, fixtures and bathrooms. This provides an attractive value add opportunity for an incoming investor.
1. Water & Sewer RUB Opportunity a $50 utility RUB. If this there is an opportunity tional $460,000 in property
2. Additional Details Provided known during the underwriting tify a different price or roll and trailing financials.
Opportunity – currently, thirty tenants are paying is implemented on all new and renewed leases, to increase NOI by $30,000. This adds an addiproperty value at a stabilized 6.5% cap rate. Provided – there were some items that were not underwriting process that could be used to help jussolidify the existing price. This includes a rent financials.
1. Potential Tax Reassessment – taxes have the potential to increase drastically when the sale of the property occurs. An incoming investor will need confidence in an LLC transfer to avoid/delay a tax assessment to place a higher value on the property. 2022 taxes were $47,661 and at a $10,500,000 valuation they have the potential to be reassessed for over $200,000.
2. Lack of Amenities – Maple Glen’s competitors that have rents at the same or higher level have additional amenities including a pool, fitness center, dog park or garages.
RENT COMPETITORS
04
Competitors
CARRIAGE S TATION
BRANDYCH
ARBORS O F ANDERSON
LOCATION
VININGS A P ARTMENTS
MAPLE GLEN
THELINKS RE NEW 39 0 2 H A SE APTS KENNEDY’ S LANDING GANTRY E A S T
rent sort ONE bedroom
One Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Arbors of Anderson 1990 438 759 $1,265 $1.67 Brandy Chase Apartments 1987 428 870 $1,120 $1.29 ReNew 3902 1949 144 750 $1,005 $1.34 The Links 1976 153 688 $965 $1.40 Subject Pro Forma 1975, 1988, 2019 84 725 $950 $1.31 Subject Average Effective 1975, 1988, 2019 84 725 $894 $1.23 The Vinings 1990 159 725 $866 $1.19
rent sort TWO bedroom
Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Brandy Chase Apartments 1987 428 1136 $1,710 $1.51 Gantry East 2021 96 1035 $1,523 $1.47 Arbors of Anderson 1990 438 1098 $1,459 $1.33 Subject Pro Forma 1975, 1988, 2019 84 1134 $1,397 $1.23 Subject Average Effective 1975, 1988, 2019 84 1134 $1,216 $1.07 The Links 1976 153 860 $1,200 $1.40 ReNew 3902 1949 144 850 $1,175 $1.38 The Vinings 1990 159 1078 $1,139 $1.06 Kennedy's Landing 1999 112 1090 $1,035 $0.95 Carriage Station Townhomes 1972 64 980 $950 $0.97
rent sort three bedroom
Three Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Gantry East 2021 96 1243 $1,745 $1.40 Arbors of Anderson 1990 438 1264 $1,699 $1.34 Subject Pro Forma 1975, 1988, 2019 84 1183 $1,667 $1.41 Kennedy's Landing 1999 112 1925 $1,584 $0.82 Subject Average Effective 1975, 1988, 2019 84 1183 $1,525 $1.29 The Links 1976 153 1090 $1,450 $1.33 The Vinings 1990 159 1381 $1,400 $1.01 Carriage Station Townhomes 1972 64 1300 $1,050 $0.81
RENT COMPETITORS THE VININGS
UNITS 159 YEAR BUILT 1990 OCCUPANCY 99.6% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 48 725 $866 $1.19 Two Bedroom 99 1078 $1,139 $1.06 Three Bedroom 12 1381 $1,400 $1.01 Apartment Interior Amenities Washer and Dryer Connections Patio or Balcony Common Area Amenities Clubhouse Swimming Pool Fitness Center Playground Garages available 3989 Vinings Dr, Cincinnati, OH 45245
RENT COMPETITORS THE LINKS
370
Apartment Interior Amenities
Renovated Apartments
Patio or Balcony
Dishwasher
In-Unit Washer and Dryer
Common Area Amenities
Fitness Center
Business Center
Resort Style Pool
Dog Park
Playground
Grilling Area
Units 153 Year Built 1976 Occupancy 27.4% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 53 688 $965 $1.40 Two Bedroom 76 860 $1,200 $1.40 Three Bedroom 24 1090 $1,450 $1.33
Saint Andrews Dr, Cincinnati, OH 45245
COMPETITORS
RENEW 3902
UNITS 144 YEAR BUILT 1949 OCCUPANCY 96.5% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 72 750 $1,005 $1.34 Two Bedroom 72 850 $1,175 $1.38 Apartment Interior Amenities Renovated Apartments Walk-in Closets Balconies Common Area Amenities On-Site Laundry Centers Dog Park 3902 Old Savannah Dr, Cincinnati, OH 45245
RENT
RENT COMPETITORS
BRANDY CHASE APARTMENTS
3969 Brandychase Way, Cincinnati, OH 45245
Apartment Interior Amenities
Fireplaces
Washer and Dryer Hookups
Garages Available
Walk-in Closets
Common Area Amenities
Dog Park
Picnic Area
Tennis Courts
Swimming Pool
Fitness Center
Basketball Court
Units 428 Year Built 1987 Occupancy 99.5% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 100 870 $1,120 $1.29 Two Bedroom 328 1136 $1,710 $1.51
FINANCIALS
05
MAPLE GLEN - FINANCIALS
UNIT MIX SUMMARY
UNIT DISTRIBUTION UNIT RENTS
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 One Bedroom 9 Units 725 SF 6,525 SF $893.89 $1.23 $8,045 $893.89 $1.23 SF $8,045 $950.00 $1.31 SF $8,550 Two Bedroom 72 Units 1,134 SF 81,636 SF $1,215.76 $1.07 $87,535 $1,223.40 $1.08 SF $88,085 $1,396.53 $1.23 SF $100,550 Three Bedroom 3 Units 1,183 SF 3,550 SF $1,525.00 $1.29 $4,575 $1,525.00 $1.29 SF $4,575 $1,666.67 $1.41 SF $5,000 Totals / Wtd. Averages 84 Units 1,092 SF 91,711 SF $1,192.32 $1.09 SF $100,155 $1,198.87 $1.10 SF $100,705 $1,358.33 $1.24 SF $114,100
UNIT MIX BREAKDOWN
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 Bedrooms 1BR/1BA - (1975) 2 Units 725 SF 1,450 SF $820.00 $1.13 SF $1,640 $820.00 $1.13 SF $1,640 $950.00 $1.31 SF $1,900 1BR/1BA - Renovated (1975) 7 Units 725 SF 5,075 SF $915.00 $1.26 SF $6,405 $915.00 $1.26 SF $6,405 $950.00 $1.31 SF $6,650 Totals / Wtd. Averages 9 Units 725 SF 6,525 SF $893.89 $1.23 SF $8,045 $893.89 $1.23 SF $8,045 $950.00 $1.31 SF $8,550 Two Bedrooms 2BR/1BA - New Build (2019) 4 Units 1,050 SF 4,200 SF $1,487.50 $1.42 SF $5,950 $1,625.00 $1.55 SF $6,500 $1,625.00 $1.55 SF $6,500 2BR/1BA - Townhouse (1988) 13 Units 1,050 SF 13,650 SF $1,195.00 $1.14 SF $15,535 $1,195.00 $1.14 SF $15,535 $1,425.00 $1.36 SF $18,525 2BR/1BA - Townhouse - Renovated 13 Units 1,050 SF 13,650 SF $1,395.00 $1.33 SF $18,135 $1,395.00 $1.33 SF $18,135 $1,425.00 $1.36 SF $18,525 2BR/1BA - (1975) 17 Units 1,114 SF 18,938 SF $950.00 $0.85 SF $16,150 $950.00 $0.85 SF $16,150 $1,250.00 $1.12 SF $21,250 2BR/1BA - Renovated (1975) 7 Units 1,114 SF 7,798 SF $1,195.00 $1.07 SF $8,365 $1,195.00 $1.07 SF $8,365 $1,250.00 $1.12 SF $8,750 2BR/1BA - New Build (2019) 18 Units 1,300 SF 23,400 SF $1,300.00 $1.00 SF $23,400 $1,300.00 $1.00 SF $23,400 $1,500.00 $1.15 SF $27,000 Totals / Wtd. Averages 72 Units 1,134 SF 81,636 SF $1,215.76 $1.07 SF $87,535 $1,223.40 $1.08 SF $88,085 $1,396.53 $1.23 SF $100,550 Three Bedrooms 3BR/1BA - Townhouse (1988) 2 Units 1,150 SF 2,300 SF $1,450.00 $1.26 SF $2,900 $1,450.00 $1.26 SF $2,900 $1,650.00 $1.43 SF $3,300 3BR/1BA - New Build (2019) 1 Units 1,250 SF 1,250 SF $1,675.00 $1.34 SF $1,675 $1,675.00 $1.34 SF $1,675 $1,700.00 $1.36 SF $1,700 Totals / Wtd. Averages 3 Units 1,183 SF 3,550 SF $1,525.00 $1.29 SF $4,575 $1,525.00 $1.29 SF $4,575 $1,666.67 $1.41 SF $5,000
MAPLE GLEN - FINANCIALS
CURRENT RENT ROLL: AS OF JUNE 2023 INCOME AND EXPENSES: ASSUMED
MAPLE GLENFINANCIALS
YEAR
GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $1,208,460 14,386 $1,369,200 16,300 Gain (Loss) to Lease ($60,423) 5.00% (719) ($27,384) 2.00% (326) GROSS SCHEDULED RENT $1,148,037 13,667 $1,341,816 15,974 OTHER INCOME Utility Income $18,000 RR 1.57% 214 $47,880 Note 3 3.57% 570 Total Other Income $18,000 1.57% 214 $47,880 3.57% 570 GROSS POTENTIAL INCOME $1,166,037 13,881 $1,389,696 16,544 Physical Vacancy ($57,402) 5.00% (683) ($67,091) 5.00% (799) Bad Debt $0 0.00% 0 ($13,418) 1.00% (160) EFFECTIVE GROSS INCOME $1,108,635 90.00% 13,198 $1,309,187 92.00% 15,586 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI 2022 Taxes Paid $47,661 Auditor 4.30% 567 $47,661 3.64% 567 Adjustment for Sale $152,450 13.75% 1,815 $152,450 11.64% 1,815 Total Real Estate Taxes $200,111 18.05% 2,382 $200,111 15.29% 2,382 Insurance $33,600 Note 2 3.03% 400 $33,600 2.57% 400 Utilities Electric $1,800 Note 2 0.16% 21 $1,836 0.14% 22 Water & Sewage $42,000 Note 2 3.79% 500 $42,840 3.27% 510 Trash Removal $8,400 Note 2 0.76% 100 $8,568 0.65% 102 Total Utilities $52,200 4.71% 621 $53,244 4.07% 634 Total Non-Controllable $285,911 25.79% 3,404 $286,955 21.92% 3,416 CONTROLLABLE Contract Services Snow Removal $2,940 Note 2 0.27% 35 $2,940 0.22% 35 Landscaping/Grounds $8,400 Note 2 0.76% 100 $8,400 0.64% 100 Pest Control $2,940 Note 2 0.27% 35 $2,940 0.22% 35 Total Contract Services $14,280 1.29% 170 $14,280 1.09% 170 Repairs & Maintenance $50,400 Note 2 4.55% 600 $50,400 3.85% 600 Marketing & Promotion $4,200 Note 2 0.38% 50 $4,200 0.32% 50 On-Site Payroll $71,400 Note 2 6.44% 850 $71,400 5.45% 850 Payroll Taxes & Benefits $8,400 Note 2 0.76% 100 $8,400 0.64% 100 General & Administrative $8,400 Note 2 0.76% 100 $8,400 0.64% 100 Management Fee $44,345 Note 2 4.00% 528 $52,367 4.00% 623 Replacement & Reserves $21,420 Note 1 1.93% 255 $21,848 1.67% 260 Total Controllable $222,845 20.10% 2,653 $231,296 17.67% 2,754 TOTAL EXPENSES $508,756 45.89% 6,057 $518,251 39.59% 6,170 NET OPERATING INCOME $599,879 54.11% 7,141 $790,936 60.41% 9,416 EXPENSE INCOME
1
INCOME & EXPENSES
UNDERWRITING NOTES
# NOTE
1 Replacement & Reserves: added based on market norm of $255 per unit per year
2 Added based on market norms.
3 Utility Income: All tenants paying $50 a month for water at 95% occupied
YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit $1,410,276 16,789 $1,452,584 17,293 ($28,206) 2.00% (336) ($29,052) 2.00% (346) $1,382,070 16,453 $1,423,533 16,947 $49,316 3.57% 587 $50,796 3.57% 605 $49,316 3.57% 587 $50,796 3.57% 605 $1,431,387 17,040 $1,474,328 17,552 ($69,104) 5.00% (823) ($71,177) 5.00% (847) ($13,821) 1.00% (165) ($14,235) 1.00% (169) $1,348,463 92.00% 16,053 $1,388,917 92.00% 16,535 % of EGI Per Unit % of EGI Per Unit $47,661 3.53% 567 $47,661 3.53% 567 $152,450 11.31% 1,815 $152,450 11.31% 1,815 $200,111 14.84% 2,382 $200,111 14.84% 2,382 $34,272 2.54% 408 $34,957 2.59% 416 $1,873 0.14% 22 $1,910 0.14% 23 $43,697 3.24% 520 $44,571 3.31% 531 $8,739 0.65% 104 $8,914 0.66% 106 $54,309 4.03% 647 $55,395 4.11% 659 $288,692 21.41% 3,437 $290,463 21.54% 3,458 $2,999 0.22% 36 $3,059 0.23% 36 $8,568 0.64% 102 $8,739 0.65% 104 $2,999 0.22% 36 $3,059 0.23% 36 $14,566 1.08% 173 $14,857 1.10% 177 $51,408 3.81% 612 $52,436 3.89% 624 $4,284 0.32% 51 $4,370 0.32% 52 $72,828 5.40% 867 $74,285 5.51% 884 $8,568 0.64% 102 $8,739 0.65% 104 $8,568 0.64% 102 $8,739 0.65% 104 $53,939 4.00% 642 $55,557 4.00% 642 $22,285 1.65% 265 $22,731 1.69% 271 $236,445 17.53% 2,815 $241,714 17.81% 2,858 $525,137 38.94% 6,252 $532,177 39.47% 6,335 $823,325 61.06% 9,801 $856,739 63.53% 10,199
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 $1,208,460 $1,369,200 $1,410,276 $1,452,584 $1,496,162 $1,541,047 $1,587,278 $1,634,896 $1,683,943 $1,734,462 $1,786,495 Gain (Loss) to Lease ($60,423) ($27,384) ($28,206) ($29,052) ($29,923) ($30,821) ($31,746) ($32,698) ($33,679) ($34,689) ($35,730) GROSS SCHEDULED RENT $1,148,037 $1,341,816 $1,382,070 $1,423,533 $1,466,239 $1,510,226 $1,555,533 $1,602,198 $1,650,264 $1,699,772 $1,750,766 OTHER TOTAL INCOME $18,000 $47,880 $49,316 $50,796 $51,812 $52,848 $53,905 $54,983 $56,083 $57,204 $58,349 GROSS POTENTIAL INCOME $1,166,037 $1,389,696 $1,431,387 $1,474,328 $1,518,050 $1,563,074 $1,609,438 $1,657,182 $1,706,347 $1,756,977 $1,809,114 Physical Vacancy ($57,402) ($67,091) ($69,104) ($71,177) ($73,312) ($75,511) ($77,777) ($80,110) ($82,513) ($84,989) ($87,538) Bad Debt $0 ($13,418) ($13,821) ($14,235) ($14,662) ($15,102) ($15,555) ($16,022) ($16,503) ($16,998) ($17,508) EFFECTIVE GROSS INCOME $1,108,635 $1,309,187 $1,348,463 $1,388,917 $1,430,076 $1,472,460 $1,516,106 $1,561,050 $1,607,331 $1,654,990 $1,704,068 Real Estate Taxes $200,111 $200,111 $200,111 $200,111 $204,113 $208,195 $212,359 $216,606 $220,939 $225,357 $229,864 Insurance $33,600 $33,600 $34,272 $34,957 $35,657 $36,370 $37,097 $37,839 $38,596 $39,368 $40,155 Utilities $52,200 $53,244 $54,309 $55,395 $56,503 $57,633 $58,786 $59,961 $61,161 $62,384 $63,632 Contract Services $14,280 $14,280 $14,566 $14,857 $15,154 $15,457 $15,766 $16,082 $16,403 $16,731 $17,066 Repairs & Maintenance $50,400 $50,400 $51,408 $52,436 $53,485 $54,555 $55,646 $56,759 $57,894 $59,052 $60,233 Marketing & Promotion $4,200 $4,200 $4,284 $4,370 $4,457 $4,546 $4,637 $4,730 $4,824 $4,921 $5,019 On-Site Payroll $71,400 $71,400 $72,828 $74,285 $75,770 $77,286 $78,831 $80,408 $82,016 $83,656 $85,330 Payroll Taxes & Benefits $8,400 $8,400 $8,568 $8,739 $8,914 $9,092 $9,274 $9,460 $9,649 $9,842 $10,039 General & Administrative $8,400 $8,400 $8,568 $8,739 $8,914 $9,092 $9,274 $9,460 $9,649 $9,842 $10,039 Management Fee $44,345 $52,367 $53,939 $55,557 $57,203 $58,898 $60,644 $62,442 $64,293 $66,200 $68,163 Replacement & Reserves $21,420 $21,848 $22,285 $22,731 $23,186 $23,649 $24,122 $24,605 $25,097 $25,599 $26,111 TOTAL EXPENSES $508,756 $518,251 $525,137 $532,177 $543,356 $554,774 $566,438 $578,351 $590,521 $602,952 $615,650 NET OPERATING INCOME $599,879 $790,936 $823,325 $856,739 $886,720 $917,686 $949,668 $982,698 $1,016,811 $1,052,039 $1,088,418 DEBT SERVICE - Proposed New Principal Payments $90,446 $90,446 $95,786 $101,441 $107,430 $113,773 $120,490 $127,604 $135,137 $143,116 $151,565 Interest Payments $401,912 $401,912 $396,572 $390,917 $384,928 $378,585 $371,868 $364,754 $357,221 $349,242 $340,793 TOTAL DS - Proposed New Loan $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 CONSOLIDATED DEBT SERVICE $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 $492,358 NET CASH FLOW AFTER DEBT $107,521 $298,578 $330,967 $364,381 $394,362 $425,328 $457,310 $490,340 $524,453 $559,681 $596,060 DEBT SERVICE COVERAGE RATIO 1.22 1.61 1.67 1.74 1.80 1.86 1.93 2.00 2.07 2.14 2.21 RETURN ANALYSIS TRAILING YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 CAP Rate (Purchase Price) 5.76% 7.59% 7.90% 8.23% 8.51% 8.81% 9.12% 9.43% 9.76% 10.10% 10.45% 'All-In' CAP Rate (Total Cost) 5.59% 7.37% 7.67% 7.98% 8.26% 8.55% 8.85% 9.15% 9.47% 9.80% 10.14% Cash-on-Cash Return 2.90% 8.06% 8.93% 9.83% 10.64% 11.48% 12.34% 13.23% 14.15% 15.11% 16.09% IRR n/a 29.59% 19.93% 19.87% 18.46% 17.62% 17.07% 16.68% 16.39% 16.16% 15.98% INCOME EXPENSE MAPLE GLENFINANCIALS
CASH FLOW
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Income Gross Potential Rent 13.30% 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% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenses Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Management Fee** 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Physical Vacancy 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% Bad Debt 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code 15 Candlewood Ct D13-00311-0008 1976 0.27 $138,880 $48,610 0.025718 $3,571.66 C-Apartments 4-19 Rental Units 43 Candlewood Ct D13-00311-0001 1976 0.47 $138,880 $48,610 0.025718 $3,571.66 C-Apartments 4-19 Rental Units 61 Candlewood Ct D13-00311-0002 1976 0.36 $138,880 $48,610 0.025718 $3,571.66 C-Apartments 4-19 Rental Units 79 Candlewood Ct D13-00311-0003 1976 0.35 $131,620 $46,070 0.025719 $33,851.00 C-Apartments 4-19 Rental Units 95 Candlewood Ct D13-00311-0004 1976 0.33 $26,400 $9,240 0.030261 $798.90 C-Apartments 4-19 Rental Units 72 Candlewood Ct D13-00311-0005 1976 0.37 $288,310 $100,910 0.025717 $7,414.50 C-Apartments 4-19 Rental Units 56 Candlewood Ct D13-00311-0006 1976 0.30 $128,980 $45,140 0.025715 $3,316.72 C-Apartments 4-19 Rental Units 42 Candlewood Ct D13-00311-0007 1976 0.35 $138,880 $48,610 0.025718 $3,571.66 C-Apartments 4-19 Rental Units 14 Candlewood Ct D13-00106-0036 1976 0.31 $162,030 $56,710 0.025717 $4,166.88 C-Apartments 4-19 Rental Units Total 3.11 $1,292,860 $452,510 $63,834.64 $63,834.64
PURCHASE PRICE Target Purchase Price $10,416,000 Per Unit $124,000 Per RSF $113.57 ACQUISITION / ADDITIONAL COSTS Projected Capital Expenditures $320,000 Renovation Cost $0 Closing Costs $0 Transfer Tax $0 Total Loan Fees $0 Total Acquisition Costs $320,000 PURCHASE PRICE Total Cost $10,736,000 Per Unit $127,810 Per RSF $117.06 ANALYSIS ASSUMPTIONS Analysis Period 10.00 Years Analysis Start Date Jul-2023 Terminal Cap Rate 6.50% Cost of Sale 6.00% ACQUISITION FINANCING SUMMARY Loan Amount $7,030,800 Loan to Value (LTV) 67.50% Loan to Cost (LTC) 65.49% Existing or Proposed Loan Proposed Origination Date Jul-2023 Interest Rate 5.75% Years Interest Only 0.00 Equity Required $3,705,200 Equity to Value 35.57% Equity to Cost 34.51% RENT SUMMARY (MONTHLY) Avg. Effective Rent $1,192 Avg. Current Market Rent $1,199 Avg. Projected Rent $1,358 TOTAL EXPENSES SUMMARY (PER UNIT) Trailing $6,057 Year 1 $6,170 Year 2 $6,252 NOI SUMMARY Trailing $599,879 Year 1 $790,936 Year 2 $823,325 ECONOMIC LOSS SUMMARY Trailing 5.00% Year 1 6.00% 10-Year Projected Avg. 6.00%
GLEN - FINANCIALS
PRICING MAPLE
TARGET VALUE
CASH-ON-CASH RETURNS
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. Thus facilitating a competitive bidding environment and ultimately maximizing
ALL-IN CAP RATE
PRICE PER UNIT PER RSF TRAILING YEAR 1 YEAR 2 TRAILING YEAR 1 YEAR 2 YEAR 3 (FULLY AMORTIZING) $10,936,800 $130,200 $119.25 5.48% 7.03% 7.31% 2.77% 7.69% 8.52% 9.38% $10,763,200 $128,133 $117.36 5.57% 7.14% 7.43% 2.81% 7.81% 8.65% 9.53% $10,589,600 $126,067 $115.47 5.66% 7.25% 7.55% 2.86% 7.93% 8.79% 9.68% $10,416,000 $124,000 $113.57 5.76% 7.37% 7.67% 2.90% 8.06% 8.93% 9.83% $10,242,400 $121,933 $111.68 5.86% 7.49% 7.79% 2.95% 8.19% 9.08% 10.00% $10,068,800 $119,867 $109.79 5.96% 7.61% 7.93% 3.00% 8.33% 9.23% 10.16% $9,895,200 $117,800 $107.90 6.06% 7.74% 8.06% 3.05% 8.47% 9.39% 10.34% SUGGESTED LIST PRICE: MARKET BID
the Property. TRAILING YR 1 YR2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 Cash on Cash Return 2.90% 8.06% 8.93% 9.83% 10.64% 11.48% 12.34% 13.23% 14.15% 15.11% 16.09% Internal Rate of Return (IRR) n/a 29.59% 19.93% 19.87% 18.46% 17.62% 17.07% 16.68% 16.39% 16.16% 15.98% CAP Rate (Purchase Price) 5.76% 7.59% 7.90% 8.23% 8.51% 8.81% 9.12% 9.43% 9.76% 10.10% 10.45% CAP Rate ("All-In") 5.59% 7.37% 7.67% 7.98% 8.26% 8.55% 8.85% 9.15% 9.47% 9.80% 10.14% Gross Revenue Multiplier (GRM) 9.07 7.76 7.54
the value of
MAPLE GLEN -
FINANCIALS
total price TRAILING NOI +51.2% +64.1% +54.8% +15.0% +8.5% +10.9% price per bed INTEREST RATE
cap rate
DEBT SERVICE MAPLE GLENFINANCIALS ADG IQ GRAPHS
trailing
TRIALING
BED RENT +75.8% +56.2%
RENT LTC -12.7% +50.9%
BED RENT
Average THREE
average ALL BED
+53.7% AVERAGE one
RENT
AVERAGE two BED
LOCAL MARKET
06
CINCINNATI, Ohio
The steady and stable nature of the Cincinnati apartment market was undoubtfully a benefit through 2020. The MSA saw a 2.7% annual increase in effective asking rents on new leases which matched the market’s norm for the 2010s decade. This growth put Cincinnati at #14 amongst the 50 largest markets for rent growth in 2020. Although occupancy was down 0.3 points from the prior year’s rate, the 4th quarter 2020 occupancy rate (96.4%) ranked #11 among the top 50 markets and #3 regionally. Only Q1 2020 saw net move-outs, although that’s typically the case in the local
market due to seasonal demand patterns, the three subsequent quarters saw huge demand and absorption totaled 1,563 units. That is 38% above the 20-year norm for annual absorption. During the peak of the pandemic challenges the job market declined 4.6%, this ranked Cincinnati 3rd best among the Midwest and was significantly better than the national average of 5.8%.
ECONOMIC OVERVIEW
Prior to the pandemic, Cincinnati’s real gross metropolitan prod uct grew at an average annual rate of 1.8% 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 9.7% year-over-year in 2nd quarter. In the year-ending 3rd quarter 2022, the metro’s inflation-adjusted economic output expand ed 0.3%. At the same time, the metro recorded a net gain of 1,400 jobs, expanding the employment base 0.1%. Cincinnati’s unemployment rate in August 2022 declined 0.5 points yearover-year to 3.8%, on par with the national average of 3.8%. During the past year, job gains in Cincinnati were most pro nounced in the Manufacturing sector followed by Trade/Trans portation/Utilities. Due to job losses stemming from the pan demic, Cincinnati’s current employment base now sits at about 1% below the pre-pandemic level in February 2020. Cincinnati, like many other Rust Belt markets, has long had a concentration in higher-paying manufacturing jobs and has been working to reinvent its economy as a high-skill, high-value manufacturing center. Further, Cincinnati is home to corporate headquarters for seven Fortune 500 companies.
• Cincinnati characteristically managed to escape the more extreme swings in apartment market performance seen over the last two years in the wake of the pandemic. Although apartment absorption cooled considerably in 3rd quarter 2022, Cincinnati apartment demand did not plumet to the degree seen in many other markets nationwide.
• As deliveries mount to a record rate over the next year, operators will be unlikely to sustain Cincinnati’s recent record high rent growth. There were 6,411 units under construction at the end of 3rd quarter, with 3,722
DEMOGRAPHICS: STATISTICS
Population: 2.2M
Average occupancy: 96.9%
DEMOGRAPHIC OVERVIEW the rent
of those units slated to come online within the next 12 months. Although those deliveries will be spread more evenly throughout the Cincinnati market, new supply will test the depth of the Class A renter pool in a market that has still yet to recover all its pandemic-era job losses.
• During the year-ending 3rd Quarter 2022, median home prices in Cincinnati increased an average of 10.6%, landing at a median price of roughly $270,000.
• The local homeownership rate averaged 70.6% in the year-ending 2nd
• In 3rd quarter 2022, effective asking rents for new leases were up 11.8% yearover-year. That annual rent performance was above the market’s five-year average of 4.7%. Cincinnati’s recent annual rent change performance ranked #2 in the Midwest region.
Median age: 37.9
Rent growth: 11.8%
MSA median home value: $270,000
MSA median hhi: $66,900
• Product classes in Cincinnati, annual effective rent change registered at 14.8% in Class A units, 11.6% in Class B units and 8.1% in Class C units.
1 - Year growth: 10.6%
1 - Year growth: 2.35%
• Among submarkets, the strongest annual rent change performances over the past year were in Butler County and North Central Cincinnati.
• The weakest performances were in West Cincinnati and North Cincinnati. As of 3rd quarter 2022, effective asking rental rates in Cincinnati averaged S1,286 per month, or $1.372 per square foot.
SUPPLY & DEMAND
• New apartment completions in Cincinnati were modest recently, as 2,130 units delivered in the year-ending 3rd quarter 2022. With 176 units removed from existing stock over the past year, the local inventory base grew 1.2%.
• In the past year, supply was greatest in Central Cincinnati and Campbell/Kenton Counties. New supply was concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County, which received 65% of the market’s total completions.
• At the end of 3rd quarter 2022, there were 6,411 units under construction with 3,722 of those units scheduled to complete in the next four quarters.
• Scheduled deliveries in the coming year are expected to be concentrated in North Central Cincinnati and Central Cincinnati.
• Over the past five years, annual absorption in Cincinnati has ranged from 675 units to 4,536 units, averaging 2,286 units annually during that time.
• In the year-ending 3rd quarter 2022, the market recorded demand for 1,013 units, trailing concurrent supply volumes. Among submarkets, the strongest absorption over the past five years was seen in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County.
• Those areas accounted for 56% of the market’s total demand over the past five years. In the past year, demand was greatest in Central Cincinnati and Campbell/Kenton Counties.
CAPITAL MARKETS
• Transaction dollar volumes in Cincinnati totaled roughly $332.9 million in the year-ending 3rd quarter 2022, down about 40% year-over-year.
• Transactions in the year-ending 3rd quarter 2022 yielded an average cap rate of 5.50%, down 21 basis points year-over-year. By comparison, cap rates averaged 5.05% in the Midwest region and 4.56% nationally.
• The average price per unit in Cincinnati came in at roughly $151,800, up 57.4% annually. Cincinnati’s average price per unit landed below the norms for both the Midwest region ($173,900) and U.S. overall ($238,700).
ATTRACTIONS
HEART OF DOWNTOWN
Right on the water and brimming with activity- The Banks is where you will find everything from sports events to a lively nightlife scene. Located along the Ohio River, The Banks provides spectacular riverfront views and lines the water with a family friendly park. Along with great biking, walking, and other recreational amenities during the daytime, The Banks comes alive at night. With live music and entertainment, a thriving bar scene nestled between two sports stadiums, The Banks is the place to be.
A major attraction at The Banks, the Andrew J Brady ICON Music Center was built for the audience experience, offering an intimate yet spacious setting. Offering both indoor and outdoor venues, the state-of-the-art facility hosts a wide variety of musical acts, spanning all genres. Visitors can enjoy a live concert while taking in the scenic riverfront view.
Ranked by USA Today readers as a Top 5 Riverwalk in the nation, Smale Riverfront Park offers walking trails, water features, swings, and other amenities to enjoy, while taking in the beautiful views of the Ohio River and the historic John A. Roebling Suspension Bridge. If you have kids in tow, make sure to visit Carol Ann’s Carousel, featuring 44 characters and illustrations incorporating Cincinnati landmarks. Enclosed in a glass building, the carousel is open year-round.
TQL STADIUM
The FCC-TQL partnership brings together two Cincinnati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commitment to our local community. There are a lot of synergies that make this alliance between TQL and FCC a perfect match and are reflected throughout the stadium from — the fin lighting to the TQL Beer District. The stadium features first-in-the-world lighting technology powered by 2.7 miles of LED lights.
ATTRACTIONS CINCINNATI ZOO
The Cincinnati Zoo & Botanical Garden is the second oldest zoo in the United States, founded in 1873 and officially opening in 1875, after the Roger Williams Park Zoo. It is located in the Avondale neighborhood of Cincinnati, Ohio. It originally began with 64.5 acres in the middle of the city, but has spread into the neighboring blocks and several reserves in Cincinnati’s outer suburbs. It was appointed as a National Historic Landmark in 1987.
DORA
From 11am – 1am daily, the 85-acre DORA district at The Banks allows guests to take their beverage purchased from one of the 18 Banks establishments and explore our public plazas and green spaces. It simply needs to be in the Official DORA Cup.
At risk of missing the first pitch? Late for the opening act? Take your beverage purchased in a DORA cup from a Banks establishment and go! Waiting for a table, or wish to picnic outside in The Banks plazas or greenspaces? Grab a DORA beverage from a Banks establishment and explore!
HARD ROCK CASINO
The game is always on at Hard Rock Casinos, where stars are made every night. Come try your hand at the tables, with classic games including blackjack, baccarat and poker, or tap into thousands of the hottest slots on the planet. With the world’s greatest rock memorabilia collection to enhance the thrill, plus the accompaniment of live, world-class entertainment, the atmosphere is like no other.
CINCINNATI ART MUSEUM
Located in scenic Eden Park, the Cincinnati Art Museum features a diverse, encyclopedic art collection of more than 67,000 works spanning 6,000 years. In addition to displaying its own broad collection, the museum also hosts several national and international traveling exhibitions each year. Visitors can enjoy the exhibitions or participate in the museum’s wide range of art-related programs, activities and special events. General admission is always free
for all. Museum members receive additional benefits. The museum is supported by the generosity of individuals and businesses that give annually to ArtsWave. The Ohio Arts Council helped fund the museum with state tax dollars to encourage economic growth, educational excellence and cultural enrichment for all Ohioans. The museum gratefully acknowledges operating support from the City of Cincinnati, as well as our museum members.
RETAIL & SHOPPING
In addition to the restaurant and nightlight scene, the area has no shortage of retail options. Downtown offers both boutiques and department stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restaurant and nightlife scene is now thriving, and the shopping scene is beginning to catch up. Most of the shops are in the southwest quarter of Over-the-Rhine, on either Vine or Main St. You won’t find chain stores in this walkable shopping district. MiCA 12/v and Urban Eden are a popular gift shops that sell local arts and crafts. Elm & Iron sells vintage and up-cycled items for the home. The Little Mahatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shoppers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.
FINDLAY MARKET
Findlay Market is Ohio’s oldest continuously operated public market and is located in the historic Over-the-Rhine neighborhood. The market is a wonderful place for locals to buy their groceries as well as a must-see historic spot for visitors to Cincinnati. Findlay Market is open year-round, Tuesday through Sunday, with a seasonal farmers market. Nearly 40 full-time businesses operate year-round, plus over 100 more vendors operate on weekends or part-time. Many vendors sell raw food while others specialize in prepared foods. Some of the merchants are new startups, while others have been in business for generations. You’ll find everything from fresh meat and produce to imported fine teas to Belgian waffles. There are restaurants as well as a beer garden, so plan to stay for lunch. Findlay Market has a fascinating history. Why not take a tour to learn more? There are several different tour options, including a culinary tour with tasty samples.
