Mayfair of Montgomery OM

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MAYFAIR OF MONTGOMERY REDEFINING MULTIFAMILY INVESTMENTS (513) 878-7756

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CONFIDENTIALITY & DISCLAIMER The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT ANDREWS | DICKMAN FOR MORE DETAILS.

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PRESENTED BY

NICK ANDREWS

First Vice President of Investments Director, National Multi Housing Group 513-878-7741 Nick.Andrews@marcusmillichap.com

JORDAN DICKMAN

First Vice President of Investments Director, National Multi Housing Group 513-878-7735 Jordan.Dickman@marcusmillichap.com

JD SCHMERGE

Associate National Multi Housing Group 513-878-7756 JD.Schmerge@marcusmillichap.com

FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE AT: www.adgmultifamily.com


the INDEX

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the asset the competitive set the perspective the market



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CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES


UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

First Vice President Investments Director, NMHG

Jordan Dickman

First Vice President Investments Director, NMHG

INVESTMENT ADVISORS

Austin Sum Investment Associate

Garry Schloemer Investment Associate

JD Schmerge Investment Associate

Brian Johnston

Tim VanWingerden

Investment Associate

Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler Senior Director MMCC

Jim Leonard

Senior Managing Director of Capital Markets MMCC

Alec Neesham Associate Director MMCC

CLIENT RELATIONS

VALUATION & RESEARCH

Derek Maddy

Jennifer Bauer

Financial & Research Analyst

Client Relationship Coordinator

OPERATIONS & MARKETING

Brittany Campbell-Koch Director of Operations

Josh Caruana

Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City

Kristin Smith Alex Papa Marketing

Marketing

John Sebree

Sidney Bills

Office Administrator

Senior Vice President National Director National Multi Housing Group

Liz Popp

Midwest Operations Manager

Michael Glass

Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group

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01

the ASSET

8 10

- property snapshot - executive summary

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EXECUTIVE SUMMARY

MAYFAIR LIVING PRICING SUMMARY Unpriced, Call For Offers

LISTING PRICE NUMBER OF UNITS

24 UNTIS

SQUARE FOOTAGE

45,366 SF 1,890 SF

AVG UNIT SIZE

$298,579

YR. 1 NOI AVG EFFECTIVE RENT/UNIT

$1,607

AVE PROFORMA RENT/UNIT

$1,995

AVE PRO FORMA RENT/SF

$1.06

UNIT MIX SUMMARY

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

SF

SF

One Bedroom

1 Units

800 SF

800 SF

$750.00

$0.94

$750

$750.00

$0.94 SF

$750

$900.00

$1.13 SF

$900

Two Bedroom

19 Units

1,893 SF

35,966 SF

$1,630.15

$0.86

$30,973

$1,778.95

$0.94 SF

$33,800

$2,011.84

$1.06 SF

$38,225

Three Bedroom

4 Units

2,150 SF

8,600 SF

$1,712.50

$0.80

$6,850

$1,750.00

$0.81 SF

$7,000

$2,193.75

$1.02 SF

$8,775

Totals / Wtd. Averages

24 Units

1,890 SF

45,366 SF

$1,607.20

$0.85 SF

$38,573

$1,731.25

$0.92 SF

$41,550

$1,995.83

$1.06 SF

$47,900

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary


MAYFAIR OF MONTGOMERY

PROPERTY SNAPSHOT 10555 Montgomery Road, Cincinnati, OH

1989

24 24 2 IN UNIT OFF STREET

YEAR BUILT

NUMBER OF UNITS

NUMBER OF PARCELS

NUMBER OF STORIES

LAUNDRY

PARKING

TENANT PAYS: all utilities 12

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BRICK WOOD PITCHED SHINGLE

CENTRAL HEAT/AC

100%

CONSTRUCTION

FRAMING

ROOF

HVAC

OCCUPANCY


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02

the COMPETITIVE SET

16 18

- rent sort - rent comparables

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COMPETITIVE SET

RENT SORT

Property Name The Approach at Summit Park Harper’s Point Altitude Blue Ash 49Hundred Indian Creek Olde Montgomery The Reserve at Glenbridge Mayfair of Montgomery 16

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Year Built 2020 1972 1992 2016 1973 1972 2002 1989

Unit SF 1194 1405 1256 1411 1700 2028 1385 2136

Rent $2,145 $2,000 $1,390 $2,235 $1,950 $1,855 $1,625 $1,718

Rent/SF $1.80 $1.42 $1.11 $1.58 $1.15 $0.91 $1.17 $0.80


HARPERS POINT

MAYFAIR OF MONTOGOMERY OLDE MONTGOMERY

ALTITUDE BLUE ASH

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MAYFAIR OF MONTGOMERY

COMPETITIVE SET

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1

OLDE MONTGOMERY

2

HARPER’S POINT APARTMENTS

3

ALTITUDE BLUE ASH

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7950 Village Dr. Cincinnati, OH Year Built: 1972 Units: 417 Occupancy: 97%

UNIT MIX

RENT

SF

RENT/SF

2x2.5

$1,855

2028

$.91

COMPARABLES RENT ANALYSIS $0-$2,000

2 Bed LOW

HIGH

Common Amenities: Pool, game room, business center, 24 hour fitness center

SUBJECT

COMP

Unit Features: washer/dryer connections, stainless appliances, wood burning fire, lakefront views

8713 Harper’s Point Dr. Cincinnati, OH Year Built: 1972 Units: 444 Occupancy: 97%

UNIT MIX

RENT

SF

RENT/SF

2x1.5

$2,000

1405

$1.42

COMPARABLES RENT ANALYSIS $0-$2,000

2 Bed LOW

HIGH SUBJECT

Amenities/Features: Pool, basketball court, sand volleyball, tennis court

COMP

Units Features: In-Unit laundry, common area, granite countertops, private patios, vaulted ceilings

4870 Hunt Rd. Cincinnati, OH Year Built: 1992 Units: 242

UNIT MIX

RENT

SF

RENT/SF

2x2

$1,390

1256

$1.11

Occupancy: 93% Amenities/Features: Pool, fitness center, business center, clubhouse, elevator

COMPARABLES RENT ANALYSIS $0-$2,000

2 Bed LOW

HIGH SUBJECT

COMP

Unit Features: Hardwood floors, washer/dryer, stainless appliances, wood burning fireplace ADG MULTIFAMILY

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03

the PERSPECTIVE

22 24

- unit mix - financial breakdown

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MAYFAIR OF MONTGOMERY

THE UNIT MIX

Summary

No. of

Rentable

Total

Unit Type

Units

SF

SF

Rent/Unit

Rent/SF

One Bedroom

1 Units

800 SF

800 SF

$750.00

Two Bedroom

19 Units

1,893 SF 35,966 SF

Three bedroom

4 Units

2,150 SF

8,600 SF

Totals / Wtd. Avgs

24 Units

1,890 SF 45,366 SF

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Avg. Effective Avg. Effective Total Effective

Market

Market

Total Market

Projected

Avg. Projected Total Projected

Rent Potential

Rent/Unit

Rent/SF

Rent Potential

Rent/Unit

Rent/SF

Rent Potential

$0.94

$750

$750.00

$0.94 SF

$750

$900.00

$1.13 SF

$900

$1,630.15

$0.86

$30,973

$1,778.95

$0.94 SF

$33,800

$2,011.84

$1.06 SF

$38,225

$1,712.50

$0.80

$6,850

$1,750.00

$0.81 SF

$7,000

$2,193.75

$1.02 SF

$8,775

$1,607.20

$0.85 SF

$38,573

$1,731.25

$0.92 SF

$41,550

$1,995.83

$1.06 SF

$47,900


One Bedroom

No. of Rentable

Total

Unit Type

Units

SF

SF

Rent/Unit

Rent/SF

Rent Potential

Rent/Unit

1x1

1 Units

800 SF

800 SF

$750.00

$0.94 SF

$750

$750.00

$0.94 SF

Totals / Wtd. Averages

1 Units

800 SF

800 SF

$750.00

$0.94 SF

$750

$750.00

Two Bedroom

No. of Rentable

Market

Unit Type

Units

SF

SF

Rent/Unit

Rent/SF

Rent Potential

Rent/Unit

2BR/1BA

1 Units

720 SF

720 SF

$900.00

$1.25 SF

$900

$900.00

$1.25 SF

2BR/2BA - A

3 Units 1,082 SF 3,246 SF

$1,315.00

$1.22 SF

$3,945

$1,700.00

2BR/2BA - B

7 Units 2,000 SF 14,000 SF

$1,621.84

$0.81 SF

$11,353

2BR/2BA - B - Renovated

2 Units 2,000 SF 4,000 SF

$2,000.00

$1.00 SF

2BR/2BA - C

1 Units 2,200 SF 2,200 SF

$1,550.00

2BR/2BA - C - Renovated

1 Units 2,200 SF 2,200 SF

2BR/2BA - D

Total

Avg. Effective Avg. Effective Total Effective

Avg. Effective Avg. Effective Total Effective

Market

Market

Total Market

Rent/SF Rent Potential

Projected Avg. Projected Total Projected Rent/Unit

Rent/SF

Rent Potential

$750

$900.00

$1.13 SF

$900

$0.94 SF

$750

$900.00

$1.13 SF

$900

Market

Total Market

Rent/Unit

Rent/SF

Rent Potential

$900

$975.00

$1.35 SF

$975

$1.57 SF

$5,100

$1,725.00

$1.59 SF

$5,175

$1,850.00

$0.93 SF

$12,950

$2,025.00

$1.01 SF

$14,175

$4,000

$2,000.00

$1.00 SF

$4,000

$2,025.00

$1.01 SF

$4,050

$0.70 SF

$1,550

$1,550.00

$0.70 SF

$1,550

$2,225.00

$1.01 SF

$2,225

$2,200.00

$1.00 SF

$2,200

$2,200.00

$1.00 SF

$2,200

$2,225.00

$1.01 SF

$2,225

3 Units 2,400 SF 7,200 SF

$1,575.00

$0.66 SF

$4,725

$1,600.00

$0.67 SF

$4,800

$2,350.00

$0.98 SF

$7,050

2BR/2BA - D - Renovated

1 Units 2,400 SF 2,400 SF

$2,300.00

$0.96 SF

$2,300

$2,300.00

$0.96 SF

$2,300

$2,350.00

$0.98 SF

$2,350

Totals / Wtd. Averages

19 Units 1,893 SF 35,966 SF

$1,630.15

$0.86 SF

$30,973

$1,778.95

$0.94 SF

$33,800

$2,011.84

$1.06 SF

$38,225

Market

Market

Total Market

Three Bedroom

No. of Rentable

Unit Type

Units

Total

SF

SF

Avg. Effective Avg. Effective Total Effective

Rent/SF Rent Potential

Projected Avg. Projected Total Projected

Projected Avg. Projected Total Projected

Rent/Unit

Rent/SF

Rent Potential

Rent/Unit

Rent/SF Rent Potential

Rent/Unit

Rent/SF

Rent Potential

3BR/2.5BA - A

1 Units 2,000 SF 2,000 SF

$1,600.00

$0.80 SF

$1,600

$1,600.00

$0.80 SF

$1,600

$2,100.00

$1.05 SF

$2,100

3BR/2.5BA - B

2 Units 2,200 SF 4,400 SF

$1,525.00

$0.69 SF

$3,050

$1,600.00

$0.73 SF

$3,200

$2,225.00

$1.01 SF

$4,450

3BR/2.5BA - B - Renovated 1 Units 2,200 SF 2,200 SF

$2,200.00

$1.00 SF

$2,200

$2,200.00

$1.00 SF

$2,200

$2,225.00

$1.01 SF

$2,225

Totals / Wtd. Averages

$1,712.50

$0.80 SF

$6,850

$1,750.00

$0.81 SF

$7,000

$2,193.75

$1.02 SF

$8,775

4 Units 2,150 SF 8,600 SF

Underwriting Notes #

Note

1 Income from P&L taken from the gross scheduled rent 2 Non-Revenue Units: manager lives in unit 51 3 Taxes: information from Hamilton County Auditor 4 Expense included in HOA fees 5 $0 payroll due to manager receiving unit 6 Replacement & Reserves: added based on market norm of $255 per unit per year

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Year 1

(Rent Roll/T10 Income; T10 Expenses)

(Increase Rents, Stabilized LTL, Occupancy and Other Income, Normalized Expenses)

GROSS POTENTIAL RENT

INCOME

FINANCIAL BREAKDOWN &

% of GPR

All Units at Market Rent

$502,200

Gain (Loss) to Lease

($39,625) $462,575

RR

Pet Fees

$3,120

Late Fees

$480 $3,600 $466,175 ($23,129) ($19,200) $0 $423,846 $415,078

GROSS SCHEDULED RENT

RR

Per Unit

% of GPR

Per Unit

20,925

$574,800

23,950

7.89%

(1,651) 19,274

($11,496) $563,304

2.00%

(479) 23,471

T10

0.67%

130

$3,571

0.63%

149

T10

0.10% 0.78% 5.00% 4.15% 0.00% 82.96% 91.02%

$549 $4,120 $567,424 ($28,165) $0 ($11,266) $527,993 $445,634

0.10% 0.73%

Note 1 Note 2

20 150 19,424 (964) (800) 0 17,660 17,295

5.00% 0.00% 2.00% 91.00% 93.00%

23 172 23,643 (1,174) 0 (469) 22,000 18,568

% of EGI Per Unit 15.11% 2,668 0.00% 0 15.11% 2,668

$64,025 $5,948 $69,973

% of EGI 12.13% 1.13% 13.25%

Per Unit 2,668 248 2,916

Other Income

Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME

EXPENSES

VALUE ANALYSIS

Current

Non-Controllable Real Estate Taxes

$64,025 $0 $64,025

Note 3

$0 $92,784 $156,809

HOA T10

0.00% 21.89% 37.00%

0 3,866 6,534

$0 $94,640 $164,612

0.00% 17.92% 31.18%

0 3,943 6,859

$0 $0 $173 $173

HOA HOA T10

0.00% 0.00% 0.04% 0.04%

0 0 7 7

$0 $0 $360 $360

0.00% 0.00% 0.07% 0.07%

0 0 15 15

T10 Note 5 T10

Total Controllable

$6,519 $0 $1,737 $0 $6,120 $14,549

1.54% 0.00% 0.41% 0.00% 1.44% 3.43%

272 0 72 0 255 606

$9,600 $20,400 $1,800 $26,400 $6,242 $64,802

1.82% 3.86% 0.34% 5.00% 1.18% 12.27%

400 850 75 1,100 260 2,700

TOTAL EXPENSES

$171,358

40.43%

7,140

$229,415

43.45%

9,559

NET OPERATING INCOME

$252,488

59.57%

10,520

$298,579

56.55%

12,441

2019 Taxes Paid Adjustment for Sale

Total Real Estate Taxes Insurance HOA Fees Total Non-Controllable Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Payroll General & Administrative Management Fee Replacement & Reserves

Note 6


Year 2 (3% Rent Increase) % of GPR

$592,044

Per Unit

24,669

$609,805

25,409

($11,841) $580,203

2.00%

(493) 24,175

($12,196) $597,609

2.00%

(508) 24,900

$3,678

0.63%

153

$3,789

0.63%

158

$566 $4,244 $584,447 ($29,010) $0 ($11,604) $543,833 $459,003

0.10% 0.73%

$583 $4,371 $601,981 ($29,880) $0 ($11,952) $560,148

0.10% 0.73%

5.00% 0.00% 2.00% 91.00% 93.00%

24 177 24,352 (1,209) 0 (484) 22,660 19,125

5.00% 0.00% 2.00% 91.00%

24 182 25,083 (1,245) 0 (498) 23,339

$64,025 $5,948 $69,973

% of EGI 11.77% 1.09% 12.87%

Per Unit 2,668 248 2,916

$64,025 $5,948 $69,973

11.77% 1.09% 12.87%

2,668 248 2,916

$0 $96,532 $166,505

0.00% 17.75% 30.62%

0 4,022 6,938

$0 $98,463 $168,436

0.00% 18.11% 30.97%

0 4,103 7,018

$0 $0 $367 $367

0.00% 0.00% 0.07% 0.07%

0 0 15 15

$0 $0 $375 $375

0.00% 0.00% 0.07% 0.07%

0 0 16 16

$9,792 $20,808 $1,836 $27,192 $6,367 $66,362

1.80% 3.83% 0.34% 5.00% 1.17% 12.20%

408 867 77 1,133 265 2,765

$9,988 $21,224 $1,873 $28,007 $6,495 $67,961

1.84% 3.90% 0.34% 5.00% 1.19% 12.35%

416 884 78 1,133 271 2,798

$232,867

42.82%

9,703

$236,397

43.47%

9,850

$310,966

57.18%

12,957

$323,751

59.53%

13,490 ADG MULTIFAMILY

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the MARKET

28

- local highlights

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LOCAL MARKET HIGHLIGHTS

CINCINNATI, OH Where Southwest Ohio, Northern Kentucky, and Southwest Indiana meet, doers, dreamers, and innovators come together to make it happen. There are many growing companies, including seven Fortune 500 Companies, that already call the Cincinnati region home and provide thousands of jobs to residents. The Cincinnati area provides an attractive business environment for companies due to it’s low cost of doing business while still allowing employees to enjoy a relatively affordable place to live. Growth in service-oriented industries has also lessened the area’s dependence on the manufacturing and transportation sectors. The Cincinnati Metro is a 15-county region located within portions of Ohio, Kentucky, and Indiana that maintains a population of nearly 2.2 million. The metro is expected to add nearly 79,400 people and approximately 37,800 households through 2022. Half of the nation’s population and 30 major markets are within a one-day drive of the Cincinnati MSA, allowing it to be thought of as a central distribution point. Foodies and food trucks, brewmasters and bourbon, professional sports, tradition and transformation - it’s all happening in Cincinnati.

DEMOGRAPHICS

Population Median Age Median Household Income (2019) # of Houses (2019) # of Employees

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1,300,000 39.2 $57,405 507,000 641,740


LOCAL HIGHLIGHTS • Home to America’s oldest sports team, the Cincinnati Reds • Biggest Oktoberfest in the country with over 500,000 attendees annually • Cincinnati is the 3rd largest city in Ohio with a population of over 300,000 • Home to Christ Hospital, ranked No. 1 overall in the region by U.S News

RETAIL, NIGHTLIFE & CULTURE

ATTRACTIVE BUSINESS ENVIRONMENT

Nightlife in Cincinnati is highlighted by OTR as well as downtown, at The Banks. Live music is found a local resturants/bars. There are serveral different atmospheres for people looking to change up there weekend from the same old resturants.

Seven Fortune 500 companies call Cincinnati home. Companies are drawn to the region’s low cost of doing business, while employees enjoy a relatively affordable place to live. A few of the major area employers include Proctor & Gamble, Kroger Co, University of CIncinnati, TriHealth Inc, GE, and Fifth Third Bank.

In addition, Cincinnati was named one of Esquire Magazine’s “Top 10 Cities that Rock,” and with good reason, as the city has a lively music scene and nationally-acclaimed dining options. There are many venues throughout Cincinnati, but the most popular include Riverbend Music Center and the future Andrew J Brady ICON Music Center. Retail options include Kenwood Mall and OTR.

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