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2024 OFFERING MEMORANDUM 1532 W NORTH BEND RD, CINCINNATI, OHIO
NORBEND
CONTENTS LEAD AGENTS Austin Sum Senior Associate Cincinnati Office
513.878.7747
Nick Andrews First Vice President Investments Cincinnati Office D. 513.878.7741
Jordan Dickman First Vice President Investments Cincinnati Office D. 513.878.7735
The Investment Local Competitors Financials 06 10 14 SECTIONS Alden Simms Associate Cincinnati Office D. 513.878.7759 alden.simms@marcusmillichap.com
D.
austin.sum@marcusmillichap.com
nicholas.andrews@marcusmillichap.com
jordan.dickman@marcusmillichap.com

“OUR COMMITMENT IS TO HELP OUR CLIENTS CREATE AND PRESERVE WEALTH BY PROVIDING THEM WITH THE BEST REAL ESTATE INVESTMENT SALES, FINANCING, RESEARCH AND ADVISORY SERVICES AVAILABLE.”

300 WEST 4TH STREET, CINCINNATI, OH

GLOBAL REACH, LOCAL EXPERTISE

$86.3B

VALUE OF RECENTLY CLOSED TRANSACTIONS

12,272

CLOSED SALES IN MOST RECENT YEAR

$12.8B

TOTAL VALUE OF RECENT LISTINGS

2,143

CLOSED FINANCINGS IN MOST RECENT YEARS

CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
CINCINNATI DAYTON LEXINGTON LOUISVILLE

YOUR TEAM

JORDAN DICKMAN

FIRST VICE PRESIDENTS DIRECTOR, NMHG

NICK ANDREWS

FIRST VICE PRESIDENTS DIRECTOR, NMHG

AUSTIN SUM

SENIOR INVESTMENT ASSOCIATE

AUSTIN Hall

INVESTMENT ASSOCIATE

ALDEN SIMMS

INVESTMENT ASSOCIATE

CORPORATE SUPPORT

LIZ POPP

MIDWEST OPERATIONS MANAGER

JOSH CARUANA

VICE PRESIDENT

REGIONAL MANAGER

INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY

JOHN SEBREE

SENIOR VICE PRESIDENT

NATIONAL DIRECTOR

NATIONAL MULTI HOUSING GROUP

MICHAEL GLASS

SENIOR VICE PRESIDENT

MIDWEST DIVISION MANAGER

NATIONAL DIRECTOR, MANUFACTURED HOME COMMUNITIES GROUP

BROKER SUPPORT

SAM PETROSino

VALUATION & RESEARCH

BRETT MARTIN

INTERNAL ACCOUNTANT

MARKETING

DATA SUMMARY

Property Address: 1532-1542 W North Bend Rd.

City, State, Zip: Cincinnati, OH 45224

Submarket: College Hill

County: Hamilton

Year Built: 1967

Number Of Units: 51

Avg Unit Size: 776

Rentable Sqft: 39,573

Number of Parcels: 1

Lot Size (Acres): 1.137

# of Buildings: 1

# of Stories: 4

Current Occupancy: 60%

Foundation: Concrete

Framing: Wood

Roof Type/Age: Flat/Rubberized

Exterior of Building: Brick

Windows Age/Pane: Sliders

Wiring: Copper

SECTION - THE INVESTMENT

01

RENT MATRIX | ONE BED

Woodside Apts $950 The Oaks Apts $821 Providence Pointe $919 Vernon Court $850 Norbend $741 Cedar Tower $900 Belmont Apts $825 Hanobe $1,700
02 SECTIONLOCAL COMPETITORS One Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Hanobe 2022 171 800 $1,700 $2.13 Woodside Apartments 1972 60 684 $950 $1.39 Subject Pro Forma 1967 52 623 $925 $1.48 Providence Pointe 1960 55 600 $919 $1.53 Cedar Tower 1968 67 835 $900 $1.08 Vernon Court 1971 45 700 $850 $1.21 The Oaks Apartments 1973 77 724 $821 $1.13 Subject Average Effective 1967 52 623 $743 $1.19 Market Average 1976 75 709 $976 $1.38

RENT MATRIX | TWO BED

Apts $1,065
Oaks
$1,122 Providence Pointe $1,099 Vernon Court $1,250 Cedar Tower $1,100 Belmont Apts $975 Hanobe $2,200
$910
Woodside
The
Apts
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02 SECTIONLOCAL COMPETITORS Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Hanobe 2022 171 1074 $2,200 $2.05 Subject Pro Forma 1967 52 1123 $1,250 $1.11 Vernon Court 1971 45 850 $1,250 $1.47 The Oaks Apartments 1973 77 864 $1,122 $1.30 Cedar Tower 1968 67 1088 $1,100 $1.01 Providence Pointe 1960 55 800 $1,099 $1.37 Woodside Apartments 1972 60 825 $1,065 $1.29 Subject Average Effective 1967 52 1123 $910 $0.81 Market Average 1976 64 861 $1,250 $1.45

UNIT MIX BREAKDOWN

NORBEND - financials 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
1BR/1BA 35 Units 623 SF 21,805 SF $743.42 $1.19 SF $26,020 $800.00 $1.28 SF $28,000 $925.00 $1.48 SF $32,375 Totals / Wtd. Averages 35 Units 623 SF 21,805 SF $743.42 $1.19 SF $26,020 $800.00 $1.28 SF $28,000 $925.00 $1.48 SF $32,375
2BR/2BA 16 Units 1,123 SF 17,968 SF $910.42 $0.81 SF $14,567 $1,150.00 $1.02 SF $18,400 $1,250.00 $1.11 SF $20,000 Totals / Wtd. Averages 16 Units 1,123 SF 17,968 SF $910.42 $0.81 SF $14,567 $1,150.00 $1.02 SF $18,400 $1,250.00 $1.11 SF $20,000 Three Bedroom 3BR/2BA 1 Units 1,423 SF 1,423 SF $1,200.00 $0.84 SF $1,200 $1,200.00 $0.84 SF $1,200 $1,350.00 $0.95 SF $1,350 Totals / Wtd. Averages 1 Units 1,423 SF 1,423 SF $1,200.00 $0.84 SF $1,200 $1,200.00 $0.84 SF $1,200 $1,350.00 $0.95 SF $1,350 Summary One Bedroom 35 Units 623 SF 21,805 SF $743.42 $1.19 $26,020 $800.00 $1.28 SF $28,000 $925.00 $1.48 SF $32,375 Two Bedroom 16 Units 1,123 SF 17,968 SF $910.42 $0.81 $14,567 $1,150.00 $1.02 SF $18,400 $1,250.00 $1.11 SF $20,000 Three Bedroom 1 Units 1,423 SF 1,423 SF $1,200.00 $0.84 $1,200 $1,200.00 $0.84 SF $1,200 $1,350.00 $0.95 SF $1,350 Totals / Wtd. Averages 52 Units 792 SF 41,196 SF $803.59 $1.01 SF $41,786 $915.38 $1.16 SF $47,600 $1,033.17 $1.30 SF $53,725 03 SECTION - THE FINANCIALS
One Bedroom
Two Bedroom

UNIT RENTS

UNIT DISTRIBUTION

NORBENDfinancials CURRENT RENT ROLL: AS OF MARCH 1, 2024 INCOME AND EXPENSES: JANUARY 2023 - DECEMBER 2023 GROSS POTENTIAL RENT % of GPR Per Unit All Units at Market Rent $400,137 T12 7,695 Gain (Loss) to Lease ($3,430) T12 0.86% (66) GROSS SCHEDULED RENT $396,707 7,629 TOTAL OTHER INCOME $5,663 1.43% 109 GROSS POTENTIAL INCOME $402,370 7,738 Physical Vacancy ($55,585) T12 14.01% (1,069) Bad Debt ($70,317) T12 17.73% (1,352) EFFECTIVE GROSS INCOME $276,468 67.41% 5,317
Real Estate Taxes % of EGI Per Unit 2023 Taxes $55,979 Auditor 20.25% 1,077 Total Real Estate Taxes $55,979 20.25% 1,077 Insurance $10,878 T12 3.93% 209 Utilities Gas & Electric $17,920 T12 6.48% 345 Water & Sewage $28,242 T12 10.22% 543 Total Utilities $50,721 18.35% 975 Total Non-Controllable $117,578 42.53% 2,261 CONTROLLABLE Contract Services Security Expense $2,400 T12 0.63% 46 Landscaping/Snow Removal $12,233 T12 3.21% 235 Total Contract Services $16,771 4.40% 323 Repairs & Maintenance $84,007 T12 30.39% 1,616 Marketing & Promotion $0 0.00% 0 Labor $750 T12 0.27% 14 General & Administrative $662 T12 0.24% 13 Management Fee $18,553 T12 6.71% 357 Replacement & Reserves $13,260 Note 1 4.80% 255 Total Controllable $134,003 48.47% 2,577 TOTAL EXPENSES $251,580 91.00% 4,838 NET OPERATING INCOME $24,887 9.00% 479 EXPENSE INCOME UNDERWRITING NOTES # NOTE 1 Replacement & Reserves: added based on market norm of $255 per unit per year
NON-CONTROLLABLE
YEAR 1 YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit $644,700 12,398 $664,041 12,770 $683,962 13,153 ($12,894) 2.00% (248) ($13,281) 2.00% (255) ($13,679) 2.00% (263) $631,806 12,150 $650,760 12,515 $670,283 12,890 $5,832 0.92% 112 $6,007 0.92% 116 $6,188 0.92% 119 $637,638 12,262 $656,768 12,630 $676,471 13,009 ($31,590) 5.00% (608) ($32,538) 5.00% (626) ($33,514) 5.00% (645) ($12,636) 2.00% (243) ($13,015) 2.00% (250) ($13,406) 2.00% (258) $593,412 91.00% 11,412 $611,214 91.00% 11,754 $629,551 91.00% 12,107 % of EGI % of EGI Per Unit % of EGI $55,979 9.43% 1,077 $55,979 9.16% 1,077 $55,979 9.16% 1,077 $55,979 9.43% 1,077 $55,979 9.16% 1,077 $55,979 9.16% 1,077 $20,800 3.51% 400 $21,216 3.47% 408 $21,640 3.54% 416 $18,279 3.08% 352 $18,644 3.05% 359 $19,017 3.11% 366 $28,807 4.85% 554 $29,383 4.81% 565 $29,971 4.90% 576 $51,735 8.72% 995 $52,770 8.63% 1,015 $53,825 8.81% 1,035 $128,515 21.66% 2,471 $129,965 21.26% 2,499 $131,445 21.51% 2,528 $2,340 0.39% 45 $2,387 0.39% 46 $2,435 0.40% 47 $11,700 1.97% 225 $11,934 1.95% 230 $12,173 1.99% 234 $15,860 2.67% 305 $16,177 2.65% 311 $16,501 2.70% 317 $31,200 5.26% 600 $31,824 5.21% 612 $32,460 5.31% 624 $2,600 0.44% 50 $2,652 0.43% 51 $2,705 0.44% 52 $46,800 7.89% 900 $47,736 7.81% 918 $48,691 7.97% 936 $5,200 0.88% 100 $5,304 0.87% 102 $5,410 0.89% 104 $29,671 5.00% 571 $30,561 5.00% 588 $31,478 5.00% 588 $13,525 2.28% 260 $13,796 2.26% 265 $14,072 2.30% 271 $144,856 24.41% 2,786 $148,050 24.22% 2,847 $151,316 24.61% 2,892 $273,370 46.07% 5,257 $278,015 45.49% 5,346 $282,761 46.26% 5,438 $320,042 53.93% 6,155 $333,199 54.51% 6,408 $346,790 56.74% 6,669
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YE MAY-2025 YE MAY-2026 YE MAY-2027 YE APR-2028 YE APR-2029 YE APR-2030 YE APR-2031 GROSS POTENTIAL RENT All Units at Market Rent $400,137 $644,700 $664,041 $683,962 $704,481 $725,616 $747,384 $769,806 Gain (Loss) to Lease ($3,430) ($12,894) ($13,281) ($13,679) ($14,090) ($14,512) ($14,948) ($15,396) GROSS SCHEDULED RENT $396,707 $631,806 $650,760 $670,283 $690,391 $711,103 $732,436 $754,409 TOTAL OTHER INCOME $5,663 $5,832 $6,007 $6,188 $6,311 $6,438 $6,566 $6,698 GROSS POTENTIAL INCOME $402,370 $637,638 $656,768 $676,471 $696,703 $717,541 $739,003 $761,107 Physical Vacancy ($55,585) ($31,590) ($32,538) ($33,514) ($34,520) ($35,555) ($36,622) ($37,720) Bad Debt ($70,317) ($12,636) ($13,015) ($13,406) ($13,808) ($14,222) ($14,649) ($15,088) EFFECTIVE GROSS INCOME $276,468 $593,412 $611,214 $629,551 $648,375 $667,764 $687,732 $708,298 Real Estate Taxes $55,979 $55,979 $55,979 $55,979 $57,099 $58,241 $59,406 $60,594 Insurance $10,878 $20,800 $21,216 $21,640 $22,073 $22,515 $22,965 $23,424 Utilities $50,721 $51,735 $52,770 $53,825 $54,902 $56,000 $57,120 $58,262 Contract Services $16,771 $15,860 $16,177 $16,501 $16,831 $17,167 $17,511 $17,861 Repairs & Maintenance $84,007 $31,200 $31,824 $32,460 $33,110 $33,772 $34,447 $35,136 Marketing & Promotion $0 $2,600 $2,652 $2,705 $2,759 $2,814 $2,871 $2,928 Labor $750 $46,800 $47,736 $48,691 $49,665 $50,658 $51,671 $52,704 General & Administrative $662 $5,200 $5,304 $5,410 $5,518 $5,629 $5,741 $5,856 Management Fee $18,553 $29,671 $30,561 $31,478 $32,419 $33,388 $34,387 $35,415 Replacement & Reserves $13,260 $13,525 $13,796 $14,072 $14,353 $14,640 $14,933 $15,232 TOTAL EXPENSES $251,580 $273,370 $278,015 $282,761 $288,728 $294,824 $301,051 $307,413 NET OPERATING INCOME $24,887 $320,042 $333,199 $346,790 $359,647 $372,940 $386,681 $400,886 INCOME EXPENSE NORBENDfinancials
Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code 1532 North Bend Rd. 247-0002-0010-00 1967 1.14 $1,946,790 $681,380 82.074213 $55,979.29 403 - Apartment, 40+ Units Total 1.14 $1,946,790 $681,380 $55,979.29
CASH FLOW
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5
Gross Potential Rent 61.12% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 2.00% 2.00% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% EXPENSES Expenses 2.00% 2.00% 2.00% 2.00% Management Fee** 5.00% 5.00% 5.00% 5.00% 5.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 2.00% 2.00% 2.00% 2.00% 2.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 7.00% 7.00% 7.00% 7.00% 7.00%
INCOME

CINCINNATI

THE ECONOMY

1| Prior to the pandemic, Cincinnati’s real gross metropolitan product grew at an average annual rate of 2.1% 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 8.4% year-over-year in 2nd quarter. 2| In 2023, the metro’s inflation-adjusted economic output expanded 2.3%. 3| The metro recorded a net gain of 21,100 jobs, expanding the employment base 1.8%. 4| Cincinnati’s unemployment rate in November 2023 was unchanged year-over-year at 3.0%, below the national average of 3.5%. 5| Despite job losses stemming from the pandemic, Cincinnati’s current employment base now sits roughly 63,700 jobs or about 6% above the pre-pandemic level in February 2020.

3,263 units completed in past 12 months 5,184 units currently in progress

HIGHEST OVERALL PERFORMING SUBMARKET

RENT

1| Over the past five years, annual change in effective asking rents in Cincinnati ranged from 2.0% to 11.9%. 2| In 4th quarter 2023, effective asking rents for new leases were up 3.6% year-over- year. That annual rent performance was below the market’s five-year average of 5.7%. 3| Cincinnati’s recent annual rent change performance ranked #10 in the Midwest region and #27 nationally. 4| Looking at product classes in Cincinnati, Class B led for rent performance over the past five years. In 4th quarter 2023, annual effective rent change registered at 2.5% in Class A units, 3.4% in Class B units and 5.8% in Class C units. 5| Among submarkets, the strongest annual rent change performances over the past year were in West Cincinnati and Southeast Cincinnati. 6| The weakest performances were in Central Cincinnati, Butler County and North Central Cincinnati. Over the past five years, rent growth was strongest in Southeast Cincinnati.

LOCAL MARKET
Q4 2023 MARKET SNAPSHOT Pre-1970s 1970s 1980s 1990s 2000+ Occupancy 93.8% 95.4% 96.2% 94.8% 94.7% Y-O-Y Rent Growth 5.2% 3.5% 3.4% 3.0% 3.5% Average Rent Per Unit $1,094 $1,148 $1,283 $1,367 $1,732
SUBMARKETS RENT OCCUPANCY YOY Dent/Harrison $1,147 97.6% 11.0% Roselawn $1,022 92.5% 8.5% Mt Washington $1,155 94.7% 8.3% Mt Healthy $1,123 96.7% 8.1% Middletown/Franklin $969 94.1% 7.3%

SCAN FOR MORE

1| New apartment completions in Cincinnati were moderate recently, as 3,263 units delivered in 2023. That annual completion volume was a 24-year high. 2| With 150 units removed from existing stock over the past year, the local inventory base grew 1.9%. In the past year, supply was greatest in North Central Cincinnati. 3| Annual new supply averaged 1,754 units, and annual inventory growth averaged 1.0% over the past five years. During that period, new supply was concentrated in Central Cincinnati and Campbell/Kenton Counties, which received 42% of the market’s total completions. 4| At the end of 2023, there were 5,184 units under construction with 3,531 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be concentrated in Central Cincinnati.

OCCUPANCY

1| Occupancy in the Cincinnati apartment market has ranged from 94.9% to 98.2% over the past five years, averaging 96.4% during that period. 2| Over the past year, occupancy lost 1.2 points, with the 4th quarter 2023 rate landing at 94.9%. 3| Looking at product classes in Cincinnati, 4th quarter 2023 occupancy registered at 94.1% in Class A units, 94.9% in Class B units and 95.6% in Class C units. 4| Occupancy in Class C product was generally tightest over the past five years. 5| Among submarkets, 4th quarter 2023 occupancy was strongest in Southeast Cincinnati and Campbell/Kenton Counties. 6| The weakest readings were seen in Central Cincinnati and North Central Cincinnati. During the coming year, occupancy in Cincinnati is expected to register around 95%.

HIGHEST OVERALL PERFORMING SUBMARKET

LOWEST OVERALL PERFORMING SUBMARKETS

UNITS UNDER CONSTRUCTION

SECTOR UNITS Central Cincinnati 1,747 Northeast Cincinnati/Warren County 811 Boone County/Erlanger 769 Campbell/Kenton Counties 497 Butler County 482 TOTAL FUTURE INVENTORY GROWTH SUBMARKET CHANGE Central Cincinnati 11.9% Boon County/Erlanger 7.0% Northeast Cincinnati/Warren County 4.8% Campbell/Kenton Counties 2.9% Butler County 2.4%
SUBMARKETS RENT OCCUPANCY YOY Dent/Harrison $1,147 97.6% 11.0% Roselawn $1,022 92.5% 8.5% Mt Washington $1,155 94.7% 8.3% Mt Healthy $1,123 96.7% 8.1% Middletown/Franklin $969 94.1% 7.3%
SUBMARKETS RENT OCCUPANCY YOY Fort Mitchell/Crescent Springs $1,162 96.1% 1.0% Fairfield $1,291 94.2% 1.0% Covington/Newport $1,608 93.9% 0.8% Clifton $1,038 90.6% -0.5% Downtown $1,786 94.6% -0.8
SUPPLY

NORBEND

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