Prime at Wright OM

Page 1

PRIME AT WRIGHT 2023 OM OFFERING MEMORANDUM 1300 CIMARRON CIRCLE, FAIRBORN, OHIO

CONTENTS

LEAD AGENTS

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.”

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.

- THE INVESTMENT
- local competitors
- FINANCIALS
- LOCAL MARKET SECTIONS
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06 26 44 52
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

AUSTIN SUM

SENIOR INVESTMENT ASSOCIATE

BRIAN JOHNSTON

INVESTMENT ASSOCIATE

AUSTIN Hall

INVESTMENT ASSOCIATE

ALDEN SIMMS

INVESTMENT ASSOCIATE

BROKER SUPPORT

SAM PETROSINO

VALUATION & RESEARCH

Brett Martin

internal accountant

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

BRITTANY CAMPBELL-KOCH DIRECTOR OF OPERATIONS

ALEX PAPA

MARKETING COORDINATOR

THE INVESTMENT

01

prime at

THE INVESTMENT
1300 CIMARRON CIRCLE,

wright

at
CIRCLE, FAIRBORN, OHIO

VALUE-ADD STUDENT HOUSING ASSET

Prime at Wright is currently owned and managed by a market rate operator. The asset provides a nearly 25% of immediate economic upside through more targeted leasing and partnership with the University. Units are currently being leased by the bed instead of by the unit, opportunity to lease out full units to students vs just beds.

8.38%

18.49%

LOSS OF BEDS IN THE LOCAL MARKET AS UNIVERSITY PREPS FOR EXPANSION.

investment highlights beds lost 647

The Providence, historically a student asset has been converted to market rate units, equating to a loss of 647 beds over the last 12 months. For the Fall Semester of 2023, enrollment at Wright State surpassed 11,000, with a total student population of 11,036, a 2.2% increase over last year’s headcount. The number of first-time students who enrolled at Wright State at the start of the Fall Semester also increased.

PRIME AT WRIGHT OFFERS MORE LENIENT TENANT LIFESTYLE FOR STUDENTS.

intrailing 12 months

Wright State housing is restricted with meal plans, Resident Advisors and more requirements that hinder the students lifestyle. Prime at Wright offers students a larger, more affordable and diversified living opportunity than Wright State on Campus housing. Wright State controls nearly all other student housing in the market

PRIME AT WRIGHT
CURRENT RENT ROLL: AS OF JULY 5, 2023 INCOME AND EXPENSES: JUNE 2022 - MAY 2023 GROSS POTENTIAL RENT % of GPR All Units at Market Rent $1,999,680 RR Gain (Loss) to Lease ($167,560) 8.38% GROSS SCHEDULED RENT $1,832,120 RR Total Other Income $260,774 14.23% GROSS POTENTIAL INCOME $2,092,894 Physical Vacancy ($338,846) T12 Economic 18.49% Bad Debt $0 0.00% Concessions Allowance ($800) T12 0.04% EFFECTIVE GROSS INCOME $1,753,248 73.08% INCOME
Gain (Loss) to Lease
Physical
Vacancy

AVG 2 BED VS COMPARISON

Prime at Wright offers Superior Units and Unit sizes than other student housing in the market.

Asset unit sizes range from 200-600sqft larger depending on unit size. See page 42 for more information.

PRIME OFFERS A SUPERIOR AMENITY PACKAGE THAN ALL OTHER STUDENT HOUSING OPTIONS AT WRIGHT STATE UNIVERSITY

PRIME AT WRIGHT AMENITIES

Outdoor community fireplace

Fully Equipped Gym

Private study rooms

Secure entry

Tanning bed

Covered garage parking

Townhomes with private entrances

In unit washer dyers

Community Living Learning Area

Community Events Room

VS WRIGHT STATE AMENITIES

TOWNHOME DETAILS

PRIME AT WRIGHT AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS NO. OF BEDS 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 Two Bedroom 2BR/1.5BA - TH 31 Units 62 Beds 1,130 SF 33,900 SF $1,202.76 $1.06 SF $36,083 $1,300.00 $1.15 SF $39,000 $1,300.00 $1.15 SF $39,000 Totals / Wtd. Averages 31 Units 62 Beds 1,130 SF 33,900 SF $1,202.76 $1.06 SF $36,083 $1,300.00 $1.15 SF $39,000 $1,300.00 $1.15 SF $39,000 Three Bedroom 3BR/1.5BA - TH 7 Units 21 Beds 1,130 SF 7,910 SF $1,638.00 $1.45 SF $11,466 $1,650.00 $1.46 SF $11,550 $1,725.00 $1.53 SF $12,075 3BR/2BA - TH 3 Units 9 Beds 1,650 SF 4,950 SF $1,693.32 $1.03 SF $5,080 $1,800.00 $1.09 SF $5,400 $1,800.00 $1.09 SF $5,400 3BR/2.5BA - TH 2 Units 6 Beds 1,680 SF 3,360 SF $1,719.99 $1.02 SF $3,440 $1,800.00 $1.07 SF $3,600 $1,830.00 $1.09 SF $3,660 Totals / Wtd. Averages 12 Units 36 Beds 1,352 SF 16,220 SF $1,665.50 $1.23 SF $19,986 $1,712.50 $1.27 SF $20,550 $1,761.25 $1.30 SF $21,135 Four Bedroom 4BR/2.5BA - TH 1 Units 4 Beds 1,500 SF 1,500 SF $2,233.32 $1.49 SF $2,233 $2,300.00 $1.53 SF $2,300 $2,320.00 $1.55 SF $2,320 Totals / Wtd. Averages 1 Units 4 Beds 1,500 SF 1,500 SF $2,233.32 $1.49 SF $2,233 $2,300.00 $1.53 SF $2,300 $2,320.00 $1.55 SF $2,320 Year Built: 1986 Number Of Units: 43 Avg Unit Size: 1,439 Rentable Sqft: 128,578 # of Buildings: 8 # of Stories: 2,3 & 4 stories Occupancy: 83% HVAC: Individual Forced Air / Individual Hot Water Heaters Wiring: Copper
PRIME AT WRIGHT AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS NO. OF BEDS 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 Four Bedroom 4BR/2BA 8 Units 32 Beds 1,480 SF 11,840 SF $2,065.00 $1.40 SF $16,520 $2,140.00 $1.45 SF $17,120 $2,200.00 $1.49 SF $17,600 4BR/3BA 6 Units 24 Beds 1,650 SF 9,900 SF $2,155.28 $1.31 SF $12,932 $2,240.00 $1.36 SF $13,440 $2,360.00 $1.43 SF $14,160 4BR/4BA 28 Units 112 Beds 1,480 SF 41,440 SF $2,040.84 $1.38 SF $57,144 $2,240.00 $1.51 SF $62,720 $2,380.00 $1.61 SF $66,640 Totals / Wtd. Averages 42 Units 171 Beds 1,508 SF 64,830 SF $2,00.200 $1.36 SF $88,087 $2,222.00 $1.51 SF $97,780 $2,252.00 $1.53 SF $99,080 Five Bedroom 5BR/3BA 4 Units 20 Beds 1,740 SF 6,960 SF $2,500.00 $1.44 SF $10,000 $2,500.00 $1.44 SF $10,000 $2,750.00 $1.58 SF $11,000 Totals / Wtd. Averages 4 Units 20 Beds 1,740 SF 6,960 SF $2,500.00 $1.44 SF $10,000 $2,500.00 $1.44 SF $10,000 $2,750.00 $1.58 SF $11,000 Year Built: 2007 Number Of Units: 47 Avg Unit Size: 1,439 Rentable Sqft: 128,578 # of Buildings: 8 # of Stories: 2,3 & 4 stories Occupancy: 83% HVAC: Individual Forced Air / Individual Hot Water Heaters Wiring: Copper
APARTMENT DETAILS
RECENT CAPEX PRIME AT WRIGHT 02/01/2021-08/25/2023 2021 2022 2023 TOTAL APPLIANCES $20,195.08 $18,369.48 $13,265.16 $51,829.72 FIXTURES $6,219.76 $41,169.62              $24,791.52 $72,180.90 HVAC $21,829.40 $57,167.94 $488.92 $79,486.26 LANDSCAPING $8,338.13 $13,425.73 $3,874.64 $25,638.50 INTERIOR $0 $4,423.74 $918.72 $5,342 FLOORING $18,561.97 $19,968.84 $16,521.64 $55,052.45 TOTAL EXPENSES PER YEAR $75,144.35 $154,525.35 $59,860.60 $289,530.29 $289,530.29

Unit photos

PRIME AT WRIGHT

UNIT PHOTOS

PRIME AT WRIGHT

Common area

PRIME AT WRIGHT

AMENITIES

PRIME AT WRIGHT

RENT COMPETITORS

02

rent sort TWO bedroom

Prime at Wright $1,126 $2,382 Woods Hall $1,607 Forest Lane $2,382 Honors Hall $2,490 Hamilton Hall

*All student housing rent includes a communication fee, activity fee, and hospitality/residential service fee. ($115.75/month)

*By default, student in The Woods, Honors, and Hamilton are placed in the $2000 Gold plan each semester. ($500/month)

Two Bedroom Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF Hamilton Hall Year Built 300 262.2 $2,490 $4.75 Woods Hall 1993 226 987 $2,382 $1.21 Honors Community Year Built 261 198.56 $2,382 $6.00 Forest Lane Apartments 1980 120 720 $1,607 $1.12 Subject Pro Forma 1986 290 1130 $1,300 $0.58 Subject Average Effective 1986 290 1130 $1,126 $0.50 Market Average 1986 247 738 $1,881 $2.55

rent sort THREE bedroom

Prime at Wright $1,602
$3,422 Woods Hall $1,955 University Suites

Three Bedroom

*All student housing rent includes a communication fee, activity fee, and hospitality/residential service fee. ($115.75/month)

*By default, student in The Woods, Honors, and Hamilton are placed in the $2000 Gold plan each semester. ($500/month)

Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF Woods Hall 1993 226 1142 $3,422 $3.00 University Suites 2009 97 1200 $1,955 $1.63 Subject Pro Forma 1986 290 1352 $1,764 $1.30 Subject Average Effective 1986 290 1352 $1,602 $1.18 Market Average 1994 225 1262 $2,184 $1.78

rent sort four bedroom

$2,052
Prime at Wright
$2,554 College Park
$2,547 University Suites

Four Bedroom

*All student housing rent includes a communication fee, activity fee, and hospitality/residential service fee. ($115.75/month)

*By default, student in The Woods, Honors, and Hamilton are placed in the $2000 Gold plan each semester. ($500/month)

Property Year Built # Beds Avg SF Avg Rent Avg Rent/SF College Park n/a 680 1431 $2,554 $1.78 University Suites 2009 97 1400 $2,547 $1.82 Subject Pro Forma 1986 290 1504 $2,305 $1.53 Subject Average Effective 1986 290 1504 $2,052 $1.36 Market Average 1994 338 1460 $2,364 $1.62
UNITS 226 YEAR BUILT 1993 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 76 692 $1,463 $2.11 Two Bedroom 150 987 $1,191 $1.21 UNITS 216 YEAR BUILT 1993 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 72 692 $948 $1.37 Two Bedroom 144 987 $610 $0.62 1239 SPRINGWOOD LANE 2030-2050 VILLAGE DR STUDENT COMPETITORS woods hall
THE VILLAGE

2000

2100

UNITS 680 YEAR BUILT 1990 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF Four Bedroom 680 1431 $638 $0.45 UNITS 261 YEAR BUILT N/A OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF
Bedroom 261
Two
198.56 $1,548 $7.79
ZINK ROAD
ZINK ROAD STUDENT COMPETITORS
COLLEGE PARK HONORS COMMUNITY
UNITS 132 YEAR BUILT 2009 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF Three Bedroom 33 1200 $652 $0.54 Four Bedroom 64 1400 $637 $0.54 Five Bedroom 35 1600 $616 $0.38 UNITS 120 YEAR BUILT 1993 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF Studio 20 484 $741 $1.53 Two Bedroom 100 720 $803 $1.12 2459 ZINK RD 1220 FOREST LANE STUDENT COMPETITORS UNIVERSITY SUITES FOREST LANE APTS

HAMILTON HALL

*All student housing rent includes a communication fee, activity fee, and hospitality/ residential service fee. ($115.75/month)

*By default, student in The Woods, Honors, and Hamilton are placed in the $2000 Gold plan each semester. ($500/month)

UNITS 300 YEAR BUILT 1990 OCCUPANCY N/A UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 150 193.8 $1,291 $6.66 Two Bedroom 150 262.2 $1,245 $4.75
STUDENT COMPETITORS
3640 COLONEL GLENN HWY
Semester Monthly Residence Hall Room Type Rate Rate Hamilton Super Single $2,953 $738.25 1354.00 Hamilton Double (first time offering for 2023–24) $2,516 $629.00 1244.75 Honors Super Single $4,078 $1,019.50 1635.25 Honors Double $2,516 $629.00 1244.75 Woods Single $3,709 $927.25 1543.00 Woods Super Single $4,082 $1,020.50 1636.25 Woods Double $2,516 $629.00 1244.75 Woods Double Deluxe $2,953 $738.25 1354.00 Woods Triple $2,196 $549.00 1164.75 Forest Lane Studio $2,615 $653.75 769.50 Forest Lane Small Two Bedroom $2,735 $683.75 799.50 Forest Lane Large Two Bedroom $3,009 $752.25 868.00 College Park Quad $2,287 $571.75 687.50 College Park Renovated Quad $3,661 $915.25 1031.00 University Park Quad $2,287 $571.75 687.50 University Park Double Occupancy Quad: Single $1,830 $457.50 573.25 University Park Double Occupancy Quad: Double $1,333 $333.25 449.00 Village Efficiency $2,808 $702.00 817.75 Village Deluxe Efficiency $3,207 $801.75 917.50 Village One Bedroom $3,642 $910.50 1026.25 Village Two Bedroom $4,143 $1,035.75 1151.50 Village Two Bedroom Split $2,161 $540.25 656.00
PRIME AT WRIGHT COLLEGE PARK
COLLEGE
HONORS

THE VILLAGE

THE WOODS

DISTANCE

Prime at Wright - 5 min walk

College Park - 7 min walk

The Woods - 8 min walk

Honors Apartments - 11 min walk

The Village - 15 min walk

WRIGHT STATE STUDENT

HAMILTON HALL

Hamilton hall was the first campus dormitory and hosts an engineering themed community. Next to the student union, it’s closest to the academic buildings on campus.

THE WOODS

The woods includes nine fully furnished co-ed (Boston, cedar, hawthorn, hickory, Jacob, laurel, maple, oak and pine halls) with suite-style bathrooms. You can live alone, with one roommate, or with two roommates.

HONORS COMMUNITY

Live and study with other honors students in the honors community. Benefits from special programs, themed floors, as well as philanthropic and service projects.

RESIDENCE HALLS

Summer housing is available in Forest Lane, College Park and University Park. Summer spaces may be available in The Village but require a 4-semester housing agreement. This agreement includes the current summer semester, fall semester, spring semester, and the following summer semester.

DINING PLANS

Dining plans are required for residents of Hamilton Hall, the Honors Community, and The Woods. Optional dining plans are available for all other residents.

PLANS COST PLATINUM CAMPUS DINING $2,350 GOLD CAMPUS DINING $2,000 SILVER CAMPUS DINING $1,500 BRONZ CAMPUS DINING $990

WRIGHT STATE VS PRIME

RENT PER SQFT

TWO BED STUDENT RENT PER SQFT

FOUR BED STUDENT RENT PER SQFT

THREE BED STUDENT RENT PER SQFT

FIVE BED STUDENT RENT PER SQFT

WRIGHT STATE

Woods Triple

Hamilton Hall Double

AVG 2 BED 542 | AVG 3 BED 1,171 | AVG 4 BED 1,416
PLANS
Woods Double FLOOR
College Park Quad VS

PRIME AT WRIGHT

2 Bedroom Townhome 3 Bedroom Townhome C 3 Bedroom Townhome A 3 Bedroom Townhome B 4 Bedroom AVG 2 BED 1,130 | AVG 3 BED 1,352 | AVG 4 1,604 FLOOR PLANS VS

FINANCIALS

03

UNIT MIX BREAKDOWN

PRIME AT WRIGHT FINANCIALS AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS NO. OF BEDS 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 Two Bedroom 2BR/1.5BA - TH 31 Units 62 Beds 1,130 SF 33,900 SF $1,125.72 $1.00 SF $33,772 $1,250.00 $1.11 SF $37,500 $1,300.00 $1.15 SF $39,000 Totals / Wtd. Averages 31 Units 62 Beds 1,130 SF 33,900 SF $1,125.72 $1.00 SF $33,772 $1,250.00 $1.11 SF $37,500 $1,300.00 $1.15 SF $39,000 Three Bedroom 3BR/1.5BA - TH 7 Units 21 Beds 1,130 SF 7,910 SF $1,638.00 $1.45 SF $11,466 $1,650.00 $1.46 SF $11,550 $1,725.00 $1.53 SF $12,075 3BR/2BA - TH 3 Units 9 Beds 1,650 SF 4,950 SF $1,693.32 $1.03 SF $5,080 $1,800.00 $1.09 SF $5,400 $1,800.00 $1.09 SF $5,400 3BR/2.5BA - TH 2 Units 6 Beds 1,680 SF 3,360 SF $1,719.99 $1.02 SF $3,440 $1,800.00 $1.07 SF $3,600 $1,830.00 $1.09 SF $3,660 Totals / Wtd. Averages 12 Units 36 Beds 1,352 SF 16,220 SF $1,665.50 $1.23 SF $19,986 $1,712.50 $1.27 SF $20,550 $1,761.25 $1.30 SF $21,135 Four Bedroom 4BR/2BA 8 Units 32 Beds 1,480 SF 11,840 SF $2,065.00 $1.40 SF $16,520 $2,140.00 $1.45 SF $17,120 $2,200.00 $1.49 SF $17,600 4BR/2.5BA - TH 1 Units 4 Beds 1,500 SF 1,500 SF $2,233.32 $1.49 SF $2,233 $2,300.00 $1.53 SF $2,300 $2,320.00 $1.55 SF $2,320 4BR/3BA 6 Units 24 Beds 1,650 SF 9,900 SF $2,155.28 $1.31 SF $12,932 $2,240.00 $1.36 SF $13,440 $2,360.00 $1.43 SF $14,160 4BR/4BA 28 Units 112 Beds 1,480 SF 41,440 SF $2,040.84 $1.38 SF $57,144 $2,240.00 $1.51 SF $62,720 $2,380.00 $1.61 SF $66,640 Totals / Wtd. Averages 43 Units 172 Beds 1,504 SF 64,680 SF $2,065.78 $1.37 SF $88,829 $2,222.79 $1.48 SF $95,580 $2,342.33 $1.56 SF $100,720 Five Bedroom 5BR/3BA 4 Units 20 Beds 1,740 SF 6,960 SF $2,500.00 $1.44 SF $10,000 $2,500.00 $1.44 SF $10,000 $2,750.00 $1.58 SF $11,000 Totals / Wtd. Averages 4 Units 20 Beds 1,740 SF 6,960 SF $2,500.00 $1.44 SF $10,000 $2,500.00 $1.44 SF $10,000 $2,750.00 $1.58 SF $11,000 Summary Totals / Wtd. Averages 90 Units 290 Beds 1,368 SF 121,760 SF $1,740.42 $1.27 SF $154,897 $1,855.39 $1.36 SF $165,130 $1,930.96 $1.41 SF $171,855
Bedroom Townhome
Bedroom
Bedroom Townhome B
2
4
3
UNIT DISTRIBUTION UNIT RENTS
PRIME AT WRIGHTFINANCIALS T12 RENT ROLL: AS OF MARCH 1, 2024 INCOME AND EXPENSES:FEBRUARY 2023 - JANUARY 2024 GROSS POTENTIAL RENT % of GPR Per Unit All Units at Market Rent $1,989,360 RR 22,352 Gain (Loss) to Lease ($107,100) 5.38% (1,203) GROSS SCHEDULED RENT $1,882,260 RR 21,149 Other Income Bulk Amenities Fee CW $84,791 T12 4.50% 953 Water/Sewer Fees $44,048 T12 2.34% 495 Insurance Proceeds $27,129 T12 1.44% 305 Tenant Move Out Charges $25,176 T12 1.34% 283 Electric Utility Fee $16,157 T12 0.86% 182 AppFolio Insurance Services $11,308 T12 0.60% 127 Application Fee Income $7,406 T12 0.39% 83 Garage Rent $7,065 T12 0.38% 79 Total Other Income $255,303 13.56% 2,869 GROSS POTENTIAL INCOME $2,137,562 24,018 Physical Vacancy ($442,256) T12 23.50% (4,969) Bad Debt $0 T12 0.00% 0 EFFECTIVE GROSS INCOME $1,695,307 71.12% 19,048 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit 2022 Taxes Paid $164,026 Auditor 9.68% 1,843 Total Real Estate Taxes $164,026 9.68% 1,843 Insurance $22,930 T12 1.35% 258 Utilities Electric $50,087 T12 2.95% 563 Electric Vacant $16,229 T12 0.96% 182 Water & Sewage $50,050 T12 2.95% 562 Trash Removal $5,076 T12 0.30% 57 Total Utilities $121,442 7.16% 1,365 Total Non-Controllable $308,398 18.19% 3,465 CONTROLLABLE Contract Services Security Expense $10,700 T12 0.63% 120 Snow Removal $3,873 T12 0.23% 44 Landscaping/Grounds $8,730 T12 0.51% 98 Pest Control $1,125 T12 0.07% 13 Total Contract Services $24,428 1.44% 274 Repairs & Maintenance $77,176 T12 4.55% 867 Marketing & Promotion $33,091 T12 1.95% 372 On-Site Payroll $115,275 T12 6.80% 1,295 Payroll Taxes & Benefits $0 0.00% 0 General & Administrative $16,049 T12 0.95% 180 Management Fee $84,765 T12 5.00% 952 Cable Contract $51,528 T12 3.04% 579 Replacement & Reserves $22,695 Note 1 1.34% 255 Total Controllable $425,006 25.07% 4,775 TOTAL EXPENSES $733,404 43.26% 8,240 NET OPERATING INCOME $961,903 56.74% 10,808 EXPENSE INCOME
T6 BROKER ADJUSTED CONTROLLABLE EXPENSES T3 BROKER ADJUSTED CONTROLLABLE EXPENSES YEAR 1 % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit $1,989,360 22,352 $1,989,360 22,352 $2,062,260 23,171 ($107,100) 5.38% (1,203) ($107,100) 5.38% (1,203) ($41,245) 2.00% (463) $1,882,260 21,149 $1,882,260 21,149 $2,021,015 22,708 $84,791 4.50% 953 $84,791 4.50% 953 $87,335 4.32% 981 $44,048 2.34% 495 $44,048 2.34% 495 $45,370 2.24% 510 $27,129 1.44% 305 $27,129 1.44% 305 $27,943 1.38% 314 $25,176 1.34% 283 $25,176 1.34% 283 $25,931 1.28% 291 $16,157 0.86% 182 $16,157 0.86% 182 $16,641 0.82% 187 $11,308 0.60% 127 $11,308 0.60% 127 $11,647 0.58% 131 $7,406 0.39% 83 $7,406 0.39% 83 $7,628 0.38% 86 $7,065 0.38% 79 $7,065 0.38% 79 $7,276 0.36% 82 $255,303 13.56% 2,869 $255,303 13.56% 2,869 $262,770 13.00% 2,952 $2,137,562 24,018 $2,137,562 24,018 $2,283,784 25,660 ($465,631) 24.74% (5,232) ($438,194) 23.28% (4,924) ($101,051) 5.00% (1,135) $0 0.00% 0 $0 0.00% 0 ($20,210) 1.00% (227) $1,671,931 69.88% 18,786 $1,699,368 71.34% 19,094 $2,162,523 92.00% 24,298 % of EGI % of EGI Per Unit % of EGI $164,026 9.81% 1,843 $164,026 9.65% 1,843 $164,026 9.65% 1,843 $164,026 9.81% 1,843 $164,026 9.65% 1,843 $164,026 9.65% 1,843 $35,600 1.35% 400 $35,600 1.35% 400 $35,600 2.09% 400 $50,087 2.95% 563 $50,087 2.95% 563 $51,088 3.01% 574 $16,229 0.96% 182 $16,229 0.96% 182 $16,553 0.97% 186 $50,050 2.95% 562 $50,050 2.95% 562 $51,051 3.00% 574 $5,076 0.30% 57 $5,076 0.30% 57 $5,178 0.30% 58 $121,442 7.26% 1,365 $121,442 7.15% 1,365 $123,871 7.29% 1,392 $321,068 18.43% 3,608 $321,068 18.15% 3,608 $323,497 19.04% 3,635 $10,680 0.63% 120 $10,680 0.63% 120 $10,680 0.49% 120 $3,115 0.23% 35 $3,115 0.23% 35 $3,115 0.14% 35 $8,900 0.51% 100 $8,900 0.51% 100 $8,900 0.41% 100 $3,115 0.07% 35 $3,115 0.07% 35 $3,115 0.14% 35 $25,810 1.54% 290 $25,810 1.52% 290 $25,810 1.52% 290 $57,850 4.55% 650 $57,850 4.55% 650 $57,850 2.68% 650 $6,675 1.95% 75 $6,675 1.95% 75 $6,675 0.31% 75 $80,100 6.80% 900 $80,100 6.80% 900 $80,100 3.70% 900 $8,900 0.00% 100 $8,900 0.00% 100 $8,900 0.41% 100 $8,900 0.95% 100 $8,900 0.95% 100 $8,900 0.41% 100 $83,597 5.00% 939 $84,968 5.00% 955 $108,126 5.00% 1,215 $51,528 3.04% 579 $51,528 3.04% 579 $51,620 2.39% 580 $22,695 1.36% 255 $22,695 1.34% 255 $22,695 1.05% 255 $346,055 25.19% 3,888 $347,426 25.14% 3,904 $370,676 17.47% 4,165 $667,122 39.90% 7,496 $668,494 39.34% 7,511 $694,173 40.85% 7,800 $1,004,809 60.10% 11,290 $1,030,874 60.66% 11,583 $1,468,351 86.41% 16,498
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YE AUG-2024 YE AUG-2025 YE AUG-2026 YE AUG-2027 YE AUG-2028 GROSS POTENTIAL RENT All Units at Market Rent $1,989,360 $1,989,360 $1,989,360 $2,062,260 $2,124,128 $2,187,852 Gain (Loss) to Lease ($107,100) ($107,100) ($107,100) ($41,245) ($42,483) ($43,757) GROSS SCHEDULED RENT $1,882,260 $1,882,260 $1,882,260 $2,021,015 $2,081,645 $2,144,095 Total Other Income $255,303 $255,303 $253,195 $260,662 $265,875 $271,193 GROSS POTENTIAL INCOME $2,137,562 $2,137,562 $2,135,455 $2,283,784 $2,347,520 $2,415,287 Physical Vacancy ($442,256) ($465,631) ($438,194) ($101,051) ($104,082) ($107,205) Bad Debt $0 $0 $0 ($20,210) ($20,816) ($21,441) EFFECTIVE GROSS INCOME $1,695,307 $1,671,931 $1,697,261 $2,162,523 $2,222,622 $2,286,642 Real Estate Taxes $164,026 $164,026 $164,026 $164,026 $167,306 $170,652 Insurance $22,930 $35,600 $35,600 $35,600 $36,312 $37,038 Utilities $121,442 $121,442 $121,442 $123,871 $126,348 $128,875 Contract Services $24,428 $25,810 $25,810 $25,810 $26,326 $26,853 Repairs & Maintenance $77,176 $57,850 $57,850 $57,850 $59,007 $60,187 Marketing & Promotion $33,091 $6,675 $6,675 $6,675 $6,809 $6,945 On-Site Payroll $115,275 $80,100 $80,100 $80,100 $81,702 $83,336 Payroll Taxes & Benefits $0 $8,900 $8,900 $8,900 $9,078 $9,260 General & Administrative $16,049 $8,900 $8,900 $8,900 $9,078 $9,260 Management Fee $84,765 $83,597 $84,968 $108,126 $111,131 $114,332 Replacement & Reserves $22,695 $22,695 $22,695 $22,695 $23,149 $23,612 TOTAL EXPENSES $733,404 $667,122 $668,494 $694,173 $708,899 $724,055 NET OPERATING INCOME $961,903 $1,004,809 $1,030,874 $1,468,351 $1,513,723 $1,562,587 INCOME EXPENSE PRIME AT WRIGHTFINANCIALS CASH FLOW Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Taxes Payable 1300 Cimarron Circle A02-0002-00311000.100 2019 8.83 $6,826,790 $2,389,380 $164,025.83 Total 8.83 $6,826,790 $2,389,380 $164,025.83
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 INCOME Gross Potential Rent 3.66% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 5.38% 5.38% 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 24.74% 23.28% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 0.00% 0.00% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 24.74% 23.28% 6.00% 6.00% 6.00%

LOCAL MARKET

04

DAYTON, oHIO

Since the arrival of the first settlers on April 1, 1796, Dayton has always been a place for pioneering vision and change.

They have hosted many firsts as the patent capital of the U.S. and provided the world with a staggering number of life-changing innovations and technological advancements. Today they’re still setting trends and promoting growth. In the research labs of Wright-Patterson Air Force Base, the University of Dayton, Wright State University, and many of the top businesses, the innovative spirit of Dayton continues to produce cutting-edge technology and dynamic solutions

to today’s biggest issues.

With the crossroads of Interstate 70 and 75, the railroad capacity, and the international airport, Dayton provides one of the most accessible cities in the nation. In fact, Dayton’s location puts it within one day’s drive of 60% of the U.S. population. The superior transportation makes us among the most competitive mid-sized cities for logistics.

ECONOMIC OVERVIEW

Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.6% from 2015 to 2019. During that same five-year period, job growth av eraged 1.0% annually, with roughly 3,900 jobs added on av erage each year. In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 9.6% year-over-year in 2nd quarter. In 2022, the metros inflation-adjusted economic output con tracted 0.8%. At the same time, the metro recorded a net gain of 2,900 jobs, expanding the employment base 0.8%. As such, Dayton’s unemployment rate in November 2022 declined 0.4 points year-over-year to 3.2%, below the na tional average of 3.4%. During the past year, job gains in Dayton were most pronounced in the Leisure/Hospitality Services sector followed by Government and Profession al/Business Services. Due to job losses stemming from the pandemic, Dayton’s current employment base now sits roughly 5,100 jobs or about 1% below the pre-pandemic level in February 2020.

the rent

In 4th quarter 2022, same-store effective asking rents for new leases were up 8.4% year-over-year. That annual rent performance was well above the market’s five-year average of 4.8% and a new high for the market. s. In 4th quarter 2022, annual effective rent change was fairly even across the board, registering at 8.3% in Class A units, 8.2% in Class B units and 8.7% in Class C units. Among submarkets, the strongest annual rent change performances over the past year were in Northwest Dayton, North Dayton/Miami County and Greene County. The weakest performance was in South Montgomery County. In the coming year, same-store effective asking rent change in Dayton is expected to slow from the current level. As of 4th quarter 2022, effective asking rental rates in Dayton averaged $1,077 per month, or $1.182 per square foot.

DEMOGRAPHICS: STATISTICS

Population: 743,000

Median age: 33.5

Msa median hhi: $54,457

1 - Year growth: 5.89%

Msa median home value: $69,400

1 - Year growth: 3.89%

Average occupancy: 96.2%

Rent growth: 8.4%

New apartment completions in Dayton were modest recently, as 412 units delivered in 2022. Completions over the past year expanded the local inventory base 0.7%. In the past year, supply was greatest in Central Dayton/Kettering and Greene County.

At the end of 2022, there were 886 units under construction with 661 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be limited to Central Dayton/Kettering and North Dayton/Miami County.

SUPPLY OCCUPANCY

- Over the past year, occupancy lost 1.8 points, with the 4th quarter 2022 rate landing at 96.2%.

- Looking at product classes in Dayton, 4th quarter 2022 occupancy registered at 95.3%. In Class A units, 96.5% in Class B units and 96.7% in Class C units.

- Among submarkets, 4th quarter 2022 occupancy was strongest in Greene County and Central Dayton/Kettering.

- The weakest reading was in Northwest Dayton.

WRIGHT PATTERSON

Located in Dayton, Wright-Patterson Air Force Base (WPAFB) is one of the most diverse, largest, and organizationally complex bases in the Air Force. Not only is WPAFB the largest single-site employer in the entire state of Ohio, but it is also a center of innovation for the Air Force. It was selected as the “preferred location” for the F-35 Lightning II Hybrid Product Support Intergrator organization, which supports the entire F-35 enterprise. This would bring a minimum of 400 new jobs to the base. The potential impact to the region cannot only be measured in jobs alone, neighboring communities would benefit through the result of more growth for contractors and businesses. Wright-Patterson Air Force Base employs 27,500 military, civilian, and contract employees and has an annual economic impact of $4.3 billion.

“Wright Patterson AFB is the crown jewel of the state of Ohio, and our department will continue to do everything we can to accelerate the growth of the WPAFB and attract more jobs to the region.”

carillon historical park

Carillon Historical Park showcases Dayton’s rich heritage of creativity, invention, and milestones in innovation that changed the nation and the world!

The park houses the John W. Berry, Sr. Wright Brothers National Museum featuring the original 1905 Wright Flyer III, an impressive collection of NCR cash registers, the Carousel of Dayton Innovation, Gem City Letterpress and so much more.

america’s packard museum

The museum is housed in the original Packard dealership building built for Dayton in 1917. Approximately 50 Packard automobiles dating 1903-58 are displayed. Other exhibits include Packard marine and aircraft engines, items from the Detroit Packard factory.

higher education university of dayton

Founded in 1850, the University of dayton (UD) spans a massive 373-acres with state-of-the-art facilities in the downtown area. It boasts 38 academic, athletic, administrative, and research buildings, five resident halls, 18 student apartment complexes, and 473 houses (347 being owned by UD). In 2019, there were a total of 8,483 undergrad students enrolled. 85% of students live on-campus or in student neighborhoods. UD offers more than 80 undergraduate programs and 50 graduate and doctoral programs. UD has 17 Division I sports temas, 37 club sports, and 12 intramural sports. Since 2001, the NCAA tournament has had an impact of more than $70 million on dayton’s economy and UD Arena has hosted more Division I Basketball Championship gams than any other venue in the US.

wright state university

Located in the Dayton area, Wright State University is a national public research university. WSU offers 140 undergraduate programs and 136 graduate programs. Wright State has 20 percent more affordable in-state tuition than the national average. WSU adds $1.5 billion into the region’s economy annually and supports more than 20,000 jobs through its spending on operations and research and throuigh spending of students, alumni, and visitors. With a student body population of more than 13,000, there is only a 3,000 on-campus student housing capacity. WSU’s Nutter Center is southwest Ohio’s premier sports and entertainment facility. With a capacity of 11,200, it has also been recognized nationally as a top venue of its size.

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