Morrison by Jordan.Dickman

MORRISON

SUBMITTED BY: LEAD AGENTS

Jordan Dickman First Vice President Investments Cincinnati Office D. 513.878.7735 jordan.dickman@marcusmillichap.com

Nicholas 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

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.

CONTENTS

B R O K E R C A PA B I L I T I E S

06 | THE INVESTMENT

01 02

28 | FIN AN C I ALS

36 | LOCAL DEVELOP M ENTS

54 | LOCAL M ARKE T

12 | LOCAL COMP E TITION

O P I N I O N O F V A L U E

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

Jordan Dickman

First Vice President Investments Director, NMHG

Austin Sum

Senior Investment Associate

INVESTMENT ADVISORS

JD Schmerge Investment Associate

Brian Johnston Investment Associate

Tim VanWingerden Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler

Senior Director of Organization MMCC

VALUATION & RESEARCH

Sam Petrosino

Financial & Research Analyst

CLIENT RELATIONS

MARKETING

Alex Papa

Marketing Coordinator

Kristin Smith Marketing

Skyler Wilson

Client Relations Manager

OPERATIONS

Sidney Bills

Office Administrator

Josh Caruana

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

Brittany Campbell-Koch Director of Operations

John Sebree

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

ADG MULTIFAMILY

S E C T I O N

ADG MULTIFAMILY

THE I

NVESTMENT ADG MULTIFAMILY

PROPERTY SNAPSHOT

MORRISON

SUBMARKE T: CLIFTON | COUNTY: HAMILTON ADDRESS YEAR BUILT UNIT COUNT TOTAL RENTABLE AREA NUMBER OF BUILDINGS NUMBER OF STORIES FOUNDATION FRAMING ROOF WIRING EXTERIOR

3271/3287 MORRISON AVE 1964 20 16,392 1 2 CONCRETE SLAB WOOD FLAT COPPER BRICK

ELECTRIC GAS WATER TRASH SEWER

TENANT PAID OWNER PAID OWNER PAID OWNER PAID OWNER PAID

DEBT INFO: DEBT MUST BE ASSUMED LOAN AMOUNT $1,240,000 ORIGINAL LTV 75% RATE 3.8% FIXED FOR 10 YRS IO 2 YEARS AMORTIZATION 30 YEARS FIRST PAYMENT DUE 4/1/2022 MATURITY 3/1/2032 PREPAY YIELD MAINTENANCE

HIGHLIGHTS Marcus & Millichap is pleased to present, the Gaslight Portfolio, consisting of 3 properties with 42 unties each, located in the Clifton sub-market of Cincinnati, Ohio. Located northwest of the University of Cincinnati, this property sits in a great spot with its access to the University of Cincinnati campus, downtown Cincinnati, as well as I-75 and I-71.

A CITY BUILT ON STRONG FUNDAMENTALS

There are currently seven Fortune 500 company headquarters calling Cincinnati home, while over 400 other Fortune 500 companies have created a presence in the city as well.Cincinnati has three Fortune Global 500 companies. Out of the five Fortune Global 500 companies in the state of Ohio, three of them call Cincinnati home. Cincinnati’s GDP per capita grew at 1.3% higher than the national average of 1.2%. Cincinnati’s future growth over the next 10 years is expected to be 29.8%.

LIMITED SUPPLY ASSETS

The University of Cincinnati has seen a 9.71% increase in student enrollment in the last 8 years as it went from an enrollment of 42,656 in 2013 to 46,798 in 2020. This equates to an average of a 1.21% increase per year. Each of those 8 years, the university has set a record for enrollment. This constantly growing student population has required more housing units. However, since 2015, there have been only 4 new properties and 621 new units added to the market.

HIGH DEMAND ASSET

As student enrollment at the University of Cincinnati continues to increase, it will increase demand for student housing and bring more renters to the area surrounding the university. This increased demand for housing will allow assets like Morrison, Middleton, and Shiloh to maintain strong occupancy numbers as well as rent increases.

ADG MULTIFAMILY

MORRISON

UNIT FEATURES

ADG MULTIFAMILY

S E C T I O N

LOCAL C

COMPETITORS

LOCAL COMPETITORS MORRISON

6 2

4 3

REN T C OMPAR ABLE S 1

KENTWHITFIELD THE LOFTS

CITYADMIRAL THE VIEW APARTMENTS

SCHOOL THE ROANOKE HOUSE FLATS

SCHOOL TUDOR COURT HAUS APARTMENTS

ASPEN PINES CLIFTON WOODS

THE OVERLOOK AT FT THOMAS DELMOOR

LOCAL COMPETITORS - STUDIO

Studio Property The Heights Tudor Court Bishop Efficiency 420-432 Riddle Rd Morrison Pro Forma The Roanoke Clifton Woods 3304 Jefferson Ave The Admiral

Year Built 1966 1930 1963 1937 1962 1900 1963 1935 1900

# Units 394 89 24 13 20 53 74 26 38

Avg SF 386 375 302 435 493 614 425 243 410

Avg Rent $872 $766 $737 $732 $725 $700 $697 $614 $615

Avg Rent/SF $2.26 $2.04 $2.44 $1.68 $1.47 $1.14 $1.64 $2.53 $1.50

LOCAL COMPETITORS - ONE BEDROOM

One Bedroom Property The Whitfield The Heights 3440 Telford Morrison Pro Forma 420-432 Riddle Rd The Roanoke Tudor Court 3336 Jefferson Ave Bishop Efficiency Clifton Woods The Admiral Morrison Average Effective The Admiral

Year Built 2015 1966 1930 1962 1937 1900 1930 1969 1963 1963 1900 1962 1900

# Units 117 394 18 20 13 53 89 22 24 74 38 20 38

Avg SF 825 796 923 692 550 1007 596 570 500 540 683 692 683

Avg Rent $1,296 $1,128 $986 $900 $872 $850 $845 $801 $797 $797 $760 $744 $760

Avg Rent/SF $1.57 $1.42 $1.07 $1.30 $1.59 $0.84 $1.42 $1.41 $1.59 $1.48 $1.11

$1.11

LOCAL COMPETITORS - TWO BEDROOM

Two Bedroom Property The Whitfield 3440 Telford Delmoor Clifton Woods Bishop Efficiency The Admiral Tudor Court The Roanoke Bryant Tower Apartments Morrison Pro Forma 3336 Jefferson Ave Morrison Average Effective

Year Built 2015 1930 1915 1963 1963 1900 1930 1900 1875 1962 1969 1962

# Units 117 18 12 74 24 38 89 53 36 20 22 20

Avg SF 1096 1500 1400 650 650 1060 883 1627 850 987 745 987

Avg Rent $1,926 $1,550 $1,470 $1,400 $1,335 $1,295 $1,295 $1,272 $1,109 $1,050 $1,009 $840

Avg Rent/SF $1.76 $1.03 $1.05 $2.15 $2.05 $1.22 $1.47 $0.78 $1.30 $1.06 $1.35 $0.85

THE WHITFIELD UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom Two Bedroom

# OF UNITS SQFT 73 825 44

1096

RENT $,1296 $1,926

117 2015 95.7% RENT/SF $1.57 $1.76

Apartment Interior Amenities Washer/Dryer In All Units Above Standard Ceiling Height Microwave Ovens In All Units High Speed Internet Access Hardwood Floors Common Area Amenities Controlled Access Fitness Center Clubhouse Covered Parking Is Available Private Balcony/Patio In Select Units Utilities Responsibility Resident Pays Electricity Resident Pays Sewer Resident Pays Trash Removal Resident Pays Water

THE ADMIRAL Apartment Interior Amenities Hardwood floors in many units Original-designed bathrooms Eat-in, equipped kitchens Natural stained wood trim in most apartments Storage lockers provided Common Area Amenities Spacious apartments Off-street parking spaces and garages generally available (Except for Studios) Steam heat and water included Laundry facilities on site Large double-hung windows with storms

UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom

# OF UNITS 20

SQFT 683

RENT $760

38 1900 94.7% RENT/SF $1.11

Two Bedroom

1060

$1,295

$1.22

THE ROANOKE UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS SQFT 14 614

RENT $700

53 1900 100.0% RENT/SF $1.14

One Bedroom

1007

$850

$0.84

Two Bedroom

1627

$1,272

$0.78

Three Bedroom

2320

$1,364

$0.81

Apartment Interior Amenities Fireplaces In All Units Vaulted Ceilings Above Standard Ceiling Height High Speed Internet Access Hardwood Floors Common Area Amenities Controlled Access Fitness Center Two Laundry Facilities Private Balcony/Patio Utilities Responsibility Resident Pays Electricity Resident Pays Gas Resident Pays Sewer Resident Pays Trash Removal Resident Pays Water

TUDOR COURT Apartment Interior Amenities Hardwood floors in many units Original-designed bathrooms Eat-in, equipped kitchens Natural stained wood trim in most apartments Storage lockers provided Common Area Amenities Controlled Access Laundry Facilities Private Balcony/Patio In Select Units Utilities Responsibility Resident Pays Electricity Property Pays Gas Property Pays Sewer Property Pays Trash Removal Property Pays Water

UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS 16

SQFT 375

RENT $766

89 1930 88.6% RENT/SF $2.04

One Bedroom

596

$845

$1.42

Two Bedroom

883

$1,295

$1.47

CLIFTON WOODS UNITS YEAR BUILT OCCUPANCY UNIT MIX Studio

# OF UNITS SQFT 8 425

RENT $697

74 1963 91.8% RENT/SF $1.64

One Bedroom Two Bedroom

51 14

540 650

$797 $1,400

$1.48 $2.15

Three Bedroom

800

$1,641

$1.81

Apartment Interior Amenities A/C Balcony Common Area Amenities 24 Hour Access Maintenance on site Controlled Access Maintenance on site Laundry Facilities

DELMOOR Apartment Interior Amenities Patio/Balcony Common Area Amenities Near Public Transportation Off-Street Parking On-Site Laundry Facility

UNITS YEAR BUILT OCCUPANCY UNIT MIX Two Bedroom Three Bedroom

Utilities Responsibility Resident Pays Electricity Resident Pays Gas Resident Pays Sewer Property Pays Trash Removal Resident Pays Water

# OF UNITS 6

SQFT 1400

RENT $1470

12 1915 99.9% RENT/SF $1.05

1400

$1,695

$1.21

S E C T I O N

FINANC

IAL BREAKDOWN

MORRISON - FINANCIALS

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

MARKET

P RO J E CT E D

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

RENT/SF

T O TA L R E N T POTENTIAL

SUMMARY Studio One Bedroom Two Bedroom

2 Units 8 Units 10 Units

493 SF 692 SF 987 SF

986 SF 5,536 SF 9,870 SF

$599.50 $743.63 $839.50

$1.22 $1.07 $0.85

$1,199 $5,949 $8,395

$600.00 $800.00 $900.00

$1.22 SF $1.16 SF $0.91 SF

$1,200 $6,400 $9,000

$725.00 $900.00 $1,050.00

$1.47 SF $1.30 SF $1.06 SF

$1,450 $7,200 $10,500

Totals / Wtd. Averages

20 Units

820 SF

16,392 SF

$777.15

$0.95 SF

$15,543

$830.00

$1.01 SF

$16,600

$957.50

$1.17 SF

$19,150

UNIT TYPE

RENT/UNIT

UNIT DISTRIBUTION

RENT/SF

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

RENT/UNIT

RENT/SF

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

UNIT RENTS

10% 50% 40%

One Bedroom Two Bedroom

One Bedroom

Two Bedroom

Three Bedroom

Three Bedroom Avg. Effective 30

ADG MULTIFAMILY

Pro Forma Projection

MORRISON - FINANCIALS

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

MARKET

P RO J E CT E D

NO. OF UNITS

R E N TA B L E S F

T O TA L S F

RENT/UNIT

RENT/SF

T O TA L R E N T POTENTIAL

STUDIO 0BR/1BA

2 Units

493 SF

986 SF

$599.50

$1.22 SF

$1,199

$600.00

$1.22 SF

$1,200

$725.00

$1.47 SF

$1,450

Totals / Wtd. Averages

2 Units

493 SF

986 SF

$599.50

$1.22 SF

$1,199

$600.00

$1.22 SF

$1,200

$725.00

$1.47 SF

$1,450

ONE BEDROOM 1BR/1BA

8 Units

692 SF

5,536 SF

$743.63

$1.07 SF

$5,949

$800.00

$1.16 SF

$6,400

$900.00

$1.30 SF

$7,200

Totals / Wtd. Averages

8 Units

692 SF

5,536 SF

$743.63

$1.07 SF

$5,949

$800.00

$1.16 SF

$6,400

$900.00

$1.30 SF

$7,200

TWO BEDROOM 2BR/1BA

10 Units

987 SF

9,870 SF

$839.50

$0.85 SF

$8,395

$900.00

$0.91 SF

$9,000

$1,050.00

$1.06 SF

$10,500

Totals / Wtd. Averages

10 Units

987 SF

9,870 SF

$839.50

$0.85 SF

$8,395

$900.00

$0.91 SF

$9,000

$1,050.00

$1.06 SF

$10,500

UNIT TYPE

RENT/UNIT

RENT/SF

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

RENT/UNIT

RENT/SF

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

ADG MULTIFAMILY

INCOME EXPENSE

MORRISON - FINANCIALS

INCOME & EXPENSES

CURRENT GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT OTHER INCOME Water Reimb Electric/Gas Reimbursement Waste Disposal Reimb Late Rent Fees Application Fees Laundry Income MTM Fee Pet Fees Cable/Phone Commission Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Gas & Electric

Gas & Electric Vacant Water & Sewage Trash Removal

Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$207,600 T6 ($19,509) T6 $188,091 $6,650 $6,643 $3,305 $1,500 $1,080 $847 $840 $420 $317 $21,603 $209,694 ($6,097) ($3,843) $199,754

YEAR 1

9.40%

10,380 (975) 9,405

$229,800 ($11,490) $218,310 $6,850 $6,843 $3,404 $1,545 $1,112 $872 $865 $433 $327 $22,251 $240,561 ($10,916) ($2,183) $227,462

5.00% 1.00% 89.00%

342 342 170 77 56 44 43 22 16 1,113 12,028 (546) (109) 11,373

5.00%

T6 T6 T6 T6 T6 T6 T6 T6 T6

3.54% 3.53% 1.76% 0.80% 0.57% 0.45% 0.45% 0.22% 0.17% 11.49%

T6 T6

3.24% 2.04% 85.32%

333 332 165 75 54 42 42 21 16 1,080 10,485 (305) (192) 9,988

$21,838 Auditor $0 $21,838 $4,775 T12

% of EGI 10.93% 0.00% 10.93% 2.39%

Per Unit 1,092 0 1,092 239

$21,838 $0 $21,838 $6,000

% of EGI 9.60% 0.00% 9.60% 2.64%

Per Unit 1,092 0 1,092 300

$7,247 $3,632 $9,091 $878 $20,848 $47,461

T12 T12 T12 T12

3.63% 1.82% 4.55% 0.44% 10.44% 23.76%

362 182 455 44 1,042 2,373

$7,392 $3,705 $9,273 $896 $21,265 $49,103

3.25% 1.63% 4.08% 0.39% 9.35% 21.59%

370 185 464 45 1,063 2,455

$918 $2,518 $1,682 $5,119 $8,004 $12,168 $36,658 $2,374 $4,499 $7,799 $5,100 $81,720 $129,181 $70,573

T12 T12 T12

0.46% 1.26% 0.84% 2.56% 4.01% 6.09% 18.35% 1.19% 2.25% 3.90% 2.55% 40.91% 64.67% 35.33%

46 126 84 256 400 608 1,833 119 225 390 255 4,086 6,459 3,529

$1,000 $2,500 $1,700 $5,200 $10,000 $3,000 $20,000 $3,000 $4,000 $11,373 $5,202 $61,775 $110,878 $116,584

0.44% 1.10% 0.75% 2.29% 4.40% 1.32% 8.79% 1.32% 1.76% 5.00% 2.29% 27.16% 48.75% 51.25%

50 125 85 260 500 150 1,000 150 200 569 260 3,089 5,544 5,829

T12 T12 T12 T12 T12 Note 2 T12 Note 1

3.14% 3.13% 1.56% 0.71% 0.51% 0.40% 0.40% 0.20% 0.15% 10.19%

11,490 (575) 10,916

YEAR 2

$236,694 ($4,734) $231,960

YEAR 3

2.00% 3.04% 3.04% 1.51% 0.69% 0.49% 0.39% 0.38% 0.19% 0.15% 9.88%

11,835 (237) 11,598

$243,795 ($4,876) $238,919 $7,267 $7,259 $3,611 $1,639 $1,180 $926 $918 $459 $347 $23,606 $262,525 ($11,946) ($2,389) $248,190

5.00% 1.00% 92.00%

363 363 181 82 59 46 46 23 17 1,180 13,126 (597) (119) 12,409

2.00% 3.04% 3.04% 1.51% 0.69% 0.49% 0.39% 0.38% 0.19% 0.15% 9.88%

12,190 (244) 11,946

$7,055 $7,048 $3,506 $1,591 $1,146 $899 $891 $446 $337 $22,918 $254,879 ($11,598) ($2,320) $240,961

5.00% 1.00% 92.00%

353 352 175 80 57 45 45 22 17 1,146 12,744 (580) (116) 12,048

$21,838 $0 $21,838 $6,120

% of EGI 9.06% 0.00% 9.06% 2.54%

Per Unit 1,092 0 1,092 306

$21,838 $0 $21,838 $6,242

% of EGI 9.06% 0.00% 9.06% 2.59%

Per Unit 1,092 0 1,092 312

$7,539 $3,779 $9,459 $914 $21,690 $49,648

3.13% 1.57% 3.93% 0.38% 9.00% 20.60%

377 189 473 46 1,085 2,482

$7,690 $3,854 $9,648 $932 $22,124 $50,204

3.19% 1.60% 4.00% 0.39% 9.18% 20.84%

385 193 482 47 1,106 2,510

$1,020 $2,550 $1,734 $5,304 $10,200 $3,060 $20,400 $3,060 $4,080 $12,048 $5,306 $63,458 $113,106 $127,855

0.42% 1.06% 0.72% 2.20% 4.23% 1.27% 8.47% 1.27% 1.69% 5.00% 2.20% 26.34% 46.94% 53.06%

51 128 87 265 510 153 1,020 153 204 602 265 3,173 5,655 6,393

$1,040 $2,601 $1,769 $5,410 $10,404 $3,121 $20,808 $3,121 $4,162 $12,409 $5,412 $64,848 $115,052 $133,138

0.43% 1.08% 0.73% 2.25% 4.32% 1.30% 8.64% 1.30% 1.73% 5.00% 2.25% 26.76% 47.75% 55.25%

52 130 88 271 520 156 1,040 156 208 602 271 3,224 5,753 6,657

UNDERWRITING NOTES

NOTE

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

General & Admin: $16,546.20 removed from tailing due to being a loan origination fee from the refinance that closed in April

ADG MULTIFAMILY

INCOME EXPENSE

MORRISON - FINANCIALS

CASH FLOW 34

CURRENT

YEAR 1 YE MAR-2023

YEAR 2 YE FEB-2024

YEAR 3 YE FEB-2025

YEAR 4 YE FEB-2026

YEAR 5 YE FEB-2027

YEAR 6 YE FEB-2028

YEAR 7 YE FEB-2029

YEAR 8 YE FEB-2030

YEAR 9 YE FEB-2031

YEAR 10 YE FEB-2032

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

$207,600 ($19,509) $188,091 $21,603

$229,800 ($11,490) $218,310 $22,251

$236,694 ($4,734) $231,960 $22,918

$243,795 ($4,876) $238,919 $23,606

$251,109 ($5,022) $246,086 $24,078

$258,642 ($5,173) $253,469 $24,560

$266,401 ($5,328) $261,073 $25,051

$274,393 ($5,488) $268,905 $25,552

$282,625 ($5,653) $276,973 $26,063

$291,104 ($5,822) $285,282 $26,584

$299,837 ($5,997) $293,840 $27,116

GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME

$209,694 ($6,097) ($3,843) $199,754

$240,561 ($10,916) ($2,183) $227,462

$254,879 ($11,598) ($2,320) $240,961

$262,525 ($11,946) ($2,389) $248,190

$270,165 ($12,304) ($2,461) $255,399

$278,029 ($12,673) ($2,535) $262,821

$286,124 ($13,054) ($2,611) $270,460

$294,457 ($13,445) ($2,689) $278,323

$303,035 ($13,849) ($2,770) $286,417

$311,866 ($14,264) ($2,853) $294,749

$320,956 ($14,692) ($2,938) $303,326

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

$21,838 $4,775 $20,848 $5,119 $8,004 $12,168 $36,658 $2,374 $4,499 $7,799 $5,100 $129,181

$21,838 $6,000 $21,265 $5,200 $10,000 $3,000 $20,000 $3,000 $4,000 $11,373 $5,202 $110,878

$21,838 $6,120 $21,690 $5,304 $10,200 $3,060 $20,400 $3,060 $4,080 $12,048 $5,306 $113,106

$21,838 $6,242 $22,124 $5,410 $10,404 $3,121 $20,808 $3,121 $4,162 $12,409 $5,412 $115,052

$22,274 $6,367 $22,567 $5,518 $10,612 $3,184 $21,224 $3,184 $4,245 $12,770 $5,520 $117,465

$22,720 $6,495 $23,018 $5,629 $10,824 $3,247 $21,649 $3,247 $4,330 $13,141 $5,631 $119,930

$23,174 $6,624 $23,478 $5,741 $11,041 $3,312 $22,082 $3,312 $4,416 $13,523 $5,743 $122,448

$23,638 $6,757 $23,948 $5,856 $11,262 $3,378 $22,523 $3,378 $4,505 $13,916 $5,858 $125,020

$24,111 $6,892 $24,427 $5,973 $11,487 $3,446 $22,974 $3,446 $4,595 $14,321 $5,975 $127,647

$24,593 $7,030 $24,915 $6,093 $11,717 $3,515 $23,433 $3,515 $4,687 $14,737 $6,095 $130,330

$25,085 $7,171 $25,414 $6,214 $11,951 $3,585 $23,902 $3,585 $4,780 $15,166 $6,217 $133,070

NET OPERATING INCOME

$70,573

$116,584

$127,855

$133,138

$137,934

$142,890

$148,012

$153,303

$158,771

$164,419

$170,255

INCOME

ADG MULTIFAMILY

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

10.69% 5.00% 3.00%

3.00% 2.00% 3.00%

5.00%

2.00% 5.00%

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

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance Total Economic Loss

YR 1

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

5.00% 0.00% 1.00% 0.00% 6.00%

*Calculated as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income

ADG MULTIFAMILY

S E C T I O N

ADG MULTIFAMILY

LOCAL DE

VELOPMENTS ADG MULTIFAMILY

ADG MULTIFAMILY

CLIFTON/CUF

CONTINUOUSLY OUT PERFORMING THE MARKET Rare opportunity to purchase a bulk amount of Student Housing on The University of Cincinnati’s Campus in Cincinnati Ohio’s Clifton Submarket. The offering consists of 130 units equating out to 184 beds in some of the most iconic buildings Clifton has to offer. The properties are currently owned and managed by one of UC’s largest and one of its most reputable student housing operators. The units have been meticulously cared for and much of the historic preservation of the units has led to a highly sought after rental product. The portfolio has been 100% leased for the last 4 consecutive years showing the continuous strength year over year in the market.

OCCUPANCY RATE VS. MARKET

4th Overall 7.5% Growth POSITIVE RENTAL MARKET TRENDS Clifton is one of Cincinnati’s top rental markets within the I-275 Interstate. A stable submarket occupancy at 97.2% (Yardi Inc.). A strong sub-market supported with UC student population of nearly 50,000 students, 77% of which live off campus. Also within miles of the portfolio sits 3 of cinicnnati’s largest hospitals also creating a very aggressive rental market. Clifton sits with some of the highest rental rates across Cincinnati due to the aggressive amount of renters in such a small distance that continues to allow Clifton to stay at the top of the ranks in both occupancy and rental rates. An accolade that it has owned for a very long time and will not be giving up any time soon. 40

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ONE BED RENT VS. MARKET

ONE BED RENT VS. MARKET 13TH RANK OUT OF 47 SUBMARKETS 4.75% Y-O-Y CHANGE

TWO BED RENT VS. MARKET

TWO BED RENT VS. MARKET 2ND RANK OUT OF 47 SUBMARKETS 8.8% Y-O-Y CHANGE

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CLIFTON/CUF

UC ENROLLMENT 24,210 first-year students have applied to UC’s Uptown campus. That’s an increase of more than 1,850 applicants or 8% more than last year (the previous record). This news comes on the heels of UC announcing record enrollment for the eighth straight year in the fall when Bearcats numbered 46,798. Based on current numbers, UC officials expect to eclipse 48,000 in fall 2021. Jack Miner, UC’s vice provost for enrollment management, says UC’s popularity is even more remarkable given the COVID-19 pandemic and state and national trends where the majority of colleges and universities are experiencing significant enrollment declines. “Where others are struggling to maintain enrollment, it looks like we are going to be able to grow pretty significantly,” says

8% Increase from previous year 8th Straight Year of Record Enrollment 42

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Miner. “We think we’re getting such a great application pool because of our strong academic profile, our phenomenal student life experiences and because people really love the idea of being on UC’s urban campus. We are doing all we can to ensure a healthier, safer and good experience in the fall.”

LOCAL SCHOOL COMPARISON

UNIVERSITY OF CINCINNATI - 39,263

MIAMI UNIVERSITY - 19,716 NORTHERN KENTUCKY UNIVERISTY - 15,664 XAVIER UNIVERSITY - 6,973 MOUNT ST. JOSEPH UNIVERSITY - 2,100

POISED FOR EXPONENTIAL GROWTH DEVELOPMENT PIPELINE 5 UC BUILDINGS 5 MEDICAL BUILDING UPGRADES 7 MIXED USE APARTMENT / STUDENT HOUSING

INVESTMENTS TOWARDS THESE DEVELOPMENTS... $422.5M UNIVERSITY OF CINCINNATI

$422.5M UNIVERSITY OF CINCINNATI $1.04B MEDICAL $1.078B MIXED USE 2.9 BILLION+ TOTAL INVESTMENTS ADG MULTIFAMILY

CLIFTON/CUF

UC DEVELOPMENT

NEW COLLEGE OF LAW

NEW UC ALUMNI CENTER

UC plans to convert the current College of Business building into the new home of the College of Law. The revitalization of the building would include larger classrooms and more open meeting spaces. Cost: $45.6M T: Q3, 2022

The University of Cincinnati is looking to find a new home for its alumni center. UC wants to use all or a portion of the existing former YMCA building on Calhoun Street to house a 30,000-square-foot space to house different alumni functions. Cost: $30M T: Proposed

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CLIFTON COURT HALL

CALHOUN HALL

A 180,000-square-foot classroom building is planned where two modular structures currently stand at Clifton Avenue and Clifton Court Drive. It would include 24 classrooms and 230 faculty and staff offices. Cost: $93M T: Q3, 2022

The university plans a two-year, complete renovation of the residence hall. The 14-story high-rise residence hall, built in 1967, would remain a dormstyle housing facility. Cost: $80.4M T: Q4, 2022

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CLIFTON/CUF

UC DEVELOPMENT

SHORTVINE MIXED-USE

CINCINNATI ZOO MASTER PLAN

A mixed-use and multifamily project that will add 27 apartments and commercial space. Cost: $8M T: 2022

The Cincinnati Zoo is planning a $150 million renovation that would provide space for more elephants and other animals, in part by shifting some surface parking to a new garage.

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Cost: $150M T: 2025

CROSLEY BUILDING

THE EDEN

A planned redevelopment of the former headquarters of Crosely Radio Corp. into 175 to 250 apartments. Cost: $50M T: Q3, 2024

A planned 207-unit apartment building that would include a mix of studios to four-bedroom apartments. Cost: $30M T: 2022

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CLIFTON/CUF

UC DEVELOPMENT

HUB AT CINCINNATI

DISTRICT AT CLIFTON HEIGHTS

A 14-story student housing tower that will have 380 residences with a total of 980 beds and a small commercial space. Cost: T: 2024 Proposed

In addition to 1,000 beds of student housing planned on the north side of the street, Trinitas is making plans for the redevelopment of the former hospital. This could include retail, restaurants, a hotel, office spaces and other commercial uses in additional phases. Cost: $300M T: Proposed

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HOLISTER COURT

TRU BY HILTON CORRYVILLE

Planned transformation of Hollister Recreation Area into Hollister Court, a project that includes a four-story apartment building atop a three-story parking garage and five, three-story townhomes. Cost: $60M T: 2024

A 117-room hotel would be built above a two-story parking garage, all while maintaining ground-level parking for Kroger. Cost: T: Proposed

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CLIFTON/CUF

INNOVATION CORRIDOR DEVELOPMENTS

THE NODE

A roughly 20-acre, urban, mixed-use development that would include office, research, hotel, retail, apartments and parking. The first phase will start with 130,000 square feet of research/office space, a 160-room class A hotel, 180 multifamily residential units and up to 10,000 square feet of retail and restaurant space. Cost: $500M T: Proposed

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DREAM CAMPUS A mixed-use development that would combine faith, education, health innovation and technology in the spirit of Dr. Martin Luther King Jr. Cost: $40M T: Proposed

THE LOOP U Square is a LEED certified multi-use mid-rise covering two city blocks between McMillan and Calhoun streets across from the University of Cincinnati’s main campus. Our 161 upscale market rate apartments provide easy access to UC’s campus as well as the unique and lively Clifton area. U Square also features 40,000 square feet of University of Cincinnati office space and over 700 parking spaces in two parking garages on either side of our building. A lawn divides the two blocks of U Square providing some much needed green space in the busy Clifton Heights area. The green will be available for social, musical, cultural, and neighborhood events throughout the year.

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CLIFTON/CUF

DEVELOPMENT - MEDICAL

GOOD SMARITAN HOSPITAL UPGRADES

UC MEDICAL CENTER UPGRADES

A $140 million, five-year master facility and modernization plan at Good Samaritan Hospital that will transform the campus. Cost: $140M T: Proposed

UC Health plans its largest construction project ever – hundreds of millions of dollars in upgrades to the flagship facility. Cost: $251M T: Q1, 2025

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CINCINNATI CHILDREN’S CRITICAL CARE BUILDING Cincinnati Children’s Hospital Medical Center is building the 606,000-square-foot Critical Care Building on its campus in Avondale. Cost: $650M T: Q4, 2021

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S E C T I O N

LOC

AL MARKET

CINCINNATI The steady and stable nature of the Cincinnati apartment market due to seasonal demand patterns, the three subsemarket was undoubtfully a benefit through 2020. The MSA quent quarters saw huge demand and absorption totaled saw a 2.7% annual increase in effective asking rents on 1,563 units. That is 38% above the 20-year norm for annual new leases which matched the market’s norm for the 2010s absorption. During the peak of the pandemic challenges the decade. This growth put Cincinnati at #14 amongst the 50 job market declined 4.6%, this ranked Cincinnati 3rd best largest markets for rent growth in 2020. Although occupan- among the Midwest and was significantly better than the cy was down 0.3 points from the prior year’s rate, the 4th national average of 5.8%. 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

E C O N O M I C OV E R V I E W Prior to the pandemic, Cincinnati’s economy grew at a moderate rate – averaging an estimated growth pace of 2.1% annually in the five years ending Q1 2020. However, the economy contracted 2.4% in 2020. By November of 2020 the pandemic induced the loss of 51,200 jobs putting the employment rate at 4.8%, below the national average of 6.4%. Cincinnati has experienced less severe economic impacts compared to other cities, this fact is credited to the divers and stable employers that call Cincinnati home. There are eight fortune 500 companies headquartered in Cincinnati: Kroger, Procter & Gamble, Fifth Third Bancorp, American Financial Group, Cincinnati Financial, Western & Southern Financial Group, Cintas & Ak Steel Holding. In addition to the nationally recognized powerhouse corporations, Cincinnati has placed a specific focus on programs to foster and promote entrepreneurs and start-ups. Also the city has made significant investments in facilities and infrastructure to support medical research, and other scientific innovations to attract and retain talent found at the University of Cincinnati. The Innovation Corridor by Uptown Consortium is the largest single development in Cincinnati since the Great American Ball Park and will be a state-of-the-art science and research hub next to UC.

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D E M O G R A P H I C OV E R V I E W Population growth in Cincinnati remains ulation growth coupled with a modest modest, as the metro’s population ex- pipeline has maintained occupancies panded just 2.5% from 2014-2019, be- between 95%-97% over the last six years low the U.S. average of 2.9%. During with the average occupancy in Q4 of that period the majority of Cincinnati’s 2020 being above the six year average growth came from the 55+ age segment at 96.4%. The average effective asking which grew 11.5%. The 20-to 34-year-old rents have outperformed the Midwest segment grew modestly over the five- averages since 2011 and in 2020 the year period increasing 2.1% which was average effective rents grew by 2.7% above the national average of 1.6%. A outpacing the Midwest average of 0.8% very strong aspect to Cincinnati’s popu- and the national average of -1.1%. lation is the level of education amongst the working age population with 37% of that segment having a bachelor’s degree or higher compared to the national average of 33.1%. The modest pop-

D E M O G R A P H I C S : STAT I ST I C S Population: 2,190,000

Msa median hhi: $62,743

Msa median home value: $173,500

Average occupancy: 96.4%

Median age: 38 (.39%)

1 - Year growth: 1.77%

1 - Year growth: 4.83%

Rent growth: 2.7%

S U P P LY & D E M A N D DEMAND • Annual absorption in Cincinnati has ranged from 776 units to 3,068 units in the last five years. Average of 1,788 units annually during that time. • In the last 12 months, the Cincinnati market recorded demand for 1,462 units, exceeding concurrent supply volumes for the first time since the pandemic began. • Campbell County, Warren County and Butler County are a few of the strongest areas in Cincinnati, based on absorption, over the last five years.

S U P P LY • Over the past five years Annual new supply averaged 1,555 units, and annual inventory growth averaged 1.0%. In the year-ending 2nd quarter 2021, there were 1,131 units delivered. • Among submarkets, new supply over the past five years has been concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County, totaling 62% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be concentrated in Central Cincinnati.

HEART OF DOWNTOWN The Banks is a gathering place for people all across the region. It provides a lively atmosphere full of attractions that promote public enjoyment and appreciation for city’s riverfront. Spanning the full width of the Central Business District, The Banks brings the waterfront to downtown’s front door. Thriving off of the energy generated by the adjacent professional sports venues, Paul Brown Stadium to the west and Great American Ballpark to the east, The Banks provides life and energy as a premier live, work, and play district.

TQ L STA D I U M 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.

I N T E R E ST I N G STAT I ST I C S 26,000 STADIUM SEATS 14,256 FEET OF LED LIGHTS 360 CANOPY ROOF 3,170 BAILEY SEATS ADG MULTIFAMILY

ATTRACTIONS 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!

C I N C I N N AT I Z O O 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.

H A R D RO C K CAS I N O 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.

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

homage

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

otr

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.

elm & iron

FINDLAY FARMERS MARKET Findlay Market is Ohio’s oldest continuously operated public market

merchants are new startups, while others have been in business for

and is located in the historic Over-the-Rhine neighborhood. The mar- generations. You’ll find everything from fresh meat and produce to ket is a wonderful place for locals to buy their groceries as well as imported fine teas to Belgian waffles. There are restaurants as well a must-see historic spot for visitors to Cincinnati. Findlay Market is as a beer garden, so plan to stay for lunch. Findlay Market has a fasopen year-round, Tuesday through Sunday, with a seasonal farmers cinating history. Why not take a tour to learn more? There are several 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

different tour options, including a culinary tour with tasty samples.

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