Prime on the Hill

PRIME ON THE HILL PROPOSAL 1

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

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“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.”

SECTIONS

01 - our advantage

04

02 - advanced strategy

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03 - THE INVESTMENT

36

04 - local competitors

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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

05 - FINANCIALS

52

06 - LOCAL MARKET

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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.

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OUR ADVANTAGE

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CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST YOUR TEAM

C ORPORATE SUPPORT

JO RDA N DI C K M A N FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

L IZ PO PP M IDW E ST OPE R ATIONS MANAG ER

NI C K A N DR E WS FI RS T V I CE P R E S I D EN T S DI R EC T OR , N M H G

JO S H CA R UA NA V ICE PR E SIDE N T R E GION A L M A N A GER IN DIA N A POL IS | C INC INNATI | LOUISVILLE | ST LOUIS | KANSAS C ITY

AUS TI N SUM S E NI OR I N V E S TME N T AS S OC I AT E B RIAN JO H N ST O N I NVE S TME N T A S S O C I AT E AUS TI N H a l l I NVE S TME N T A S S O C I AT E ALDEN SI M M S I NVE S TME N T A S S O C I AT E

JO HN S E BR E E SE N IOR V ICE PR E SIDENT N A T ION A L DIR E CTOR N A T ION A L M U LT I HOUSING G ROUP MICHA E L G L A S S SE N IOR V ICE PR E SIDENT M IDW E ST DIVISIO N MANAG ER N A T ION A L DIR E CTOR, MANUFAC TURED HOME C OMMUNITIES G ROUP

BROKER SUPPORT SAM PE T R O SI N O VALUA TI O N & R E S E AR C H

BR IT TA NY CA MPBE L L- KO CH DIR E CT OR OF OPE R A T ION S

SKY LER WI L SO N CLI E NT R E LA TI O N S M AN AG ER

A L E X PA PA M A R K E T IN G COOR DIN A T OR

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V a l u e o f r e c e n t ly c l o s e d

$84.4 billion transactions in most recent year

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PREMIER INVESTMENT SERVICES Marcus & Millichap is the premier commercial real estate investment services firm in the United States. Founded in 1971 on a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades’ worth of experience and relationships to handle all of your commercial real estate needs. Our team of more than 2,000 professionals in the U.S. and Canada focuses exclusively on real estate investment sales, financing, research, and advisory services.

FOUNDED IN 1971 ON A UNIQUE METHODOLOGY

LARGEST POOL OF PRE-QUALIFIED INVESTORS IN THE INDUSTRY

MOVES CAPITAL ACROSS OUR NETWORK OF INVESTMENT PROFESSIONALS

W ITH AN EXC L U SIVE FOC U S O N REAL ESTATE I N VESTMENT SA L E S, FIN A NC I NG, RESEAR CH, A N D ADVISORY SE RVIC E S

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MORE THAN 2,000 INVESTMENT PROFESSIONALS IN THE U.S. & CANADA

ACCESS TO THE INDUSTRY’S

LARGEST POOL OF PRIVATE & INSTITUTIONAL INVESTORS R E S U LT I N G I N T H E MOST EFFICIENT PROCESS OF

MATCHING BUYERS & SELLERS L O C A L LY, R E G I O N A L LY & N A T I O N A L LY.

L E A D I N G N AT I O N A L P L AT F O R M 8 0 + O F F I C E S T H R O U G H O U T T H E U N I T E D S TA T E S & C A N A D A

#1 U.S. brokerage In number of transactions Marcus & Millichap is the premier commercial real estate investment services firm in the United States.

Founded in 1971 with a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades of experience and relationships to handle all your commercial real estate needs. Our team of more than 2,000 professionals in the United States and Canada focuses exclusively on real estate investment sales, financing, research and advisory services.

13,255 6.74

Transactions Transactions closed Every In most recent year Business Hour

MOVING CAPITAL. MAXIMIZING VALUE.

1 0 3 1 E XC H A N G E L E A D E R We execute more tax-deferred exchanges than any other firm in the United States (32% of total transactions), and our market share is a direct benefit to clients. Over the years, we have developed the skills and expertise to maximize value and meet sensitive timelines required in a 1031 Exchange. With billions of dollars of commercial real estate exclusively listed with us at any time, motivated exchange buyers seek out Marcus & Millichap for quality investment opportunities. Through our industry-leading inventory, we deliver the best of both worlds – we maximize the value of your asset through our unparalleled marketing. We then help identify appropriate upleg options to execute a successful tax deferral acquisition.

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INVESTMENT OPTIONS & OPPORTUNITIES The success of Marcus & Millichap is based on our collaborative culture of information sharing across our network of more than 2,000 investment professionals, which maximizes value for each of our clients.

Working with a unique platform that is antithetical to the concept of “pocket listings,” our investment professionals share all listings with the entire Marcus & Millichap team. Each professional specializes in a property type and has a database of local properties and owners, which is leveraged in every client assignment. Because each local agent specializes in a single product type in a specific geographic region, our clients have exposure across the U.S. and Canada with every investment..

Our foundation of information sharing maximizes pricing for our clients and gives us the largest inventory of any firm in the industry.

THE SIZE AND ACCESSIBILITY OF OUR INVENTORY ENABLES YOU TO SELL YOUR PROPERTY AND QUICKLY MOVE INTO ANOTHER PROFITABLE INVESTMENT.

2,000+ $84.4B 12

INVESTMENT PROFESSIONALS VALUE OF RECENTLY CLOSED TRANSACTIONS IN MOST RECENT YEAR

3,859 3,378

4,400

E X CLU SIVE LIS TING S IN MO S T R E C EN T YE AR R E TAI L MULTIHOU SIN G

673

OF F ICE

424

INDU S TR IAL

353

L AND

277

HO SPI TALI T Y

271

MI X ED -U SED

227

SELF -S TOR A GE

170

MANU HOU SING

94

SENIOR HOU SIN G

GAIN ACCESS TO THE NATION’S LARGEST EXCLUSIVE INVENTORY OF PROPERTIES FOR ALL PRODUCT TYPES 13

AREN’T BOUND BY

GEOGRAPHIC BOUNDARIES INBOUND / OUTBOUND Our interconnected team, large proprietary platform and national network allows us to effortlessly move capital around the country. With collaborative culture, cutting-edge technology, and proven methodology, we efficiently match buyers both regionally and nationally to maximize your success.

$2.1B - MW. OUTBOUND $3.8B - MW. INBOUND $9.2BB - W. OUTBOUND $1.6B - W. INBOUND $3.1B - S. OUTBOUND $7.8B - S. INBOUND $1.8B - TX/OK OUTBOUND $6.4B - TX/OK INBOUND $6.4B - NE. OUTBOUND $1.4B - NE. INBOUND $3.3B - MOUNTAIN OUTBOUND $5.0B - MOUNTAIN INBOUND

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MARCUS & MILLICHAP

G L O B A L C A P I TA L G R O U P The Marcus & Millichap GLOBE Capital Group provides the opportunity to expose your property to more foreign buyers with the guided expertise of our senior investment specialists. Our firm is comprised of 80+ offices throughout the US and Canada, and we provide investors with exclusive investment opportunities, financing capabilities, research, and advisory services.

CANADA

$49.65 BILLION

CHINA

GERMANY

$22.58 BILLION

$10.87 BILLION

JAPAN

$5.80 BILLION

SOUTH KOREA

$2.08 BILLION

ISRAEL

$4.84 BILLION

FRANCE

SINGAPORE $2.14 BILLION

$808 MILLION

SWITZERLAND

$6.82 BILLION

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PREMIER INVESTMENT SERVICES LARGEST BUYER POOL

COMPETITIVE BID PROCESS

MORE 1031 BUYERS

With more inventory than any other firm, buyers seek Marcus & Millichap to fulfill their investment acquisition needs.

Our structured marketing process, coupled with the industry’s largest sales force, creates a competitive bidding environment for your listing

We maintain active relationships with the industry’s largest pool of 1031 exchange buyers, the most coveted buyers in the market.

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This is why clients choose Marcus & Millichap over local, regional, or other national firms

# 1 c h o i c e i n m u lt i f a m i ly Marcus & Millichap’s National Multi Housing Group (NMHG) provides the industry’s most dynamic and effective marketplace for the acquisition and disposition of apartment properties. With multifamily specialists in offices throughout the U.S. and Canada, NMHG is the industry leader in apartment transactions, having successfully executed on our clients’ behalf more than $106 billion of sales volume in the past five years.

MARCUS & MILLICHAP

4,400

CBRE

3,311

CUSHMAN & WAKEFIELD

2,169

COLLIERS INTERNATIONAL

1,626

JLL

1,550

NKF

13,255 TRANSACTIONS IN MOST RECENT YEAR

$84.4B VOLUME IN MOST RECENT YEAR

NAI

961

6.73

KELLER WILLIAMS

918

TRANSACTIONS CLOSED

LEE & ASSOCIATES COLDWELL BANKER

1,414

600 593

EVERY BUSINESS HOUR 17

THE OWNERSHIP LIFE CYCLE Whether you’re looking to buy, sell, refinance, or hold, Marcus & Millichap leverages real-time market research to assess local and national trends, with special-

A

S DISPO

N & EX

CQU

ISITION

ANGE

SERVICES ACROSS

ITIO

CH

MAN

E & OPER AT E

ADVISORY

AG

INVESTOR CONCERNS

INVESTOR CONCERNS

INVESTOR CONCERNS

• Is holding my asset the most

• Is now the right time to sell?

• When is the right time to buy?

• How can I leverage the capital

• What investment opportunities are

profitable choice in this market?

• How can I best take advantage

markets to maximize my results?

available for my consideration?

• How do I optimize my position via

• What are the risks in the current

of the capital markets to maximize my returns?

a disposition?

market?

• Based on my investment risk tolerance and objectives, what opportunities

• What alternatives and associated

• What are my financing options?

should I consider?

• How will an acquisition impact my

ized focus on individual property

portfolio’s returns?

types. Backed by the collaborative culture of industry experts, your local investment professional will walk you through each phase of your investment strategy.

MARCUS & MILLICHAP’S SOLUTIONS

MARCUS & MILLICHAP’S SOLUTIONS

MARCUS & MILLICHAP’S SOLUTIONS

• Strategic “hold” analysis

• Value and market positioning analysis

• Pre-acquisition analysis

• Refinance and capitalization options

• Disposition buyer financing

• Financial investment analysis

• Quarterly investment return analysis

• New acquisition financing

• Market and submarket research

• 1031 exchange investment

• Product-specific research

• Ongoing market and submarket research • Ongoing product-specific research

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alternatives analysis

MARCUS & MILLICHAP

C A P I TA L C O R P O R AT I O N C A PA B I L I T I E S MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources, providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac, and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues for the benefit of our clients.

W HY MMCC? Optimum financing solutions to enhance value Enhanced control through MMCC’s ability to qualify investor finance contingencies Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives Enhanced control through MMCC’s ability to monitor investor/due diligence and underwriting to ensure timely, predictable closings

CLOSED 1,943 DEBT AND EQUITY FINANCINGS IN MOST RECENT YEAR

NATIONAL PLATFORM OPERATING WITHIN THE FIRM’S BROKERAGE OFFICES

$7.67 BILLION TOTAL NATIONAL VOLUME IN MOST RECENT YEAR

ACCESS TO MORE CAPITAL SOURCES THAN ANY OTHER FIRM IN THE INDUSTRY

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SELECT CLIENTS

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SELECT CLIENTS

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REPRESENTATIVE TRANSACTIONS

FINISH LINE

WOODS & GRINSTEAD

Location

Louisville, KY

Location

BURLINGTON OAKS Louisville, KY

Location

THE POPS Burlington, KY

Location

Lexington, KY

Units

192

Units

100

Units

240

Units

96

Seller

Kenneth Delcore

Seller

RPM

Seller

Burns & Associates

Seller

Sundance

PRIME ON THE HILL Location

CLAYS POINT Dayton, OH

LOUISVILLE PORTFOLIO

Location

Elizabethtown

Location

VAN BUREN VILLAGE Clarksville, IN

Location

Dayton, OH

Units

100

Units

62

Units

508

Units

500

Seller

Prime Residence Group

Seller

Duplessis

Seller

CAPREIT

Seller

Dutton Investments

BRYANT MERCER Location

BERKSHIRE SQUARE Columbus, OH

Location

ASCENT 430 Indianapolis, IN

Location

FOX RUN & MATADOR NORTH Pittsburgh, PA

Location

Lexington, KY

Units

354

Units

354

Units

319

Units

317

Seller

ROCO / National Equity

Seller

Independence Realty Trust

Seller

NRP Group / HIG Realty Partners

Seller

Burns & Associates

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REPRESENTATIVE TRANSACTIONS

TROY FARMS

THE VIEWS OF MT. AIRY

Location

Columbus, OH

Location

KENTUCKY TOWERS

Cincinnati, OH

Location

BRIGHTON CHASE Louisville, KY

Location

Rocky River, OH

Units

304

Units

282

Units

276

Units

264

Seller

The Champion Companies

Seller

Heritage Hill Capital

Seller

Arden Management

Seller

Edwards Communities

SCHIRM FARMS Location

BUTTERNUT RIDGE Columbus, OH

Location

HIDDEN LAKE North Olmsted, OH

Location

RESIDENCES AT CARRONADE Stow, OH

Location

Perrysburg, OH

Units

264

Units

261

Units

258

Units

248

Seller

CW Capital

Seller

JVM Realty

Seller

JVM Realty

Seller

Weston / Burton Carol

HUNTERS CHASE Location

Westlake, OH

RESIDENCES AT SUMMIT VIEW

NORTHSIDE FLATS

Location

Location

Cincinnati, OH

THE LAKES Dayton, OH

Location

Chillcothe, OH

Units

244

Units

176

Units

139

Units

72

Seller

Morgan Communities

Seller

Uptown Rental Properties

Seller

R Communities

Seller

Alpha Property Management

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EXECUTING TODAY. PLANNING FOR THE FUTURE. Our cutting-edge market research helps us advise our clients of existing asset performance and future opportunities.

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ADVANCED STRATEGY

AT T R A C T I N G T H E TA R G E T B U Y E R To successfully execute a marketing campaign, it is critical to understand the likely buyer profiles that will be attracted to the asset, in addition to their respective approval process, corporate structure and underwriting methodology.

Whether it be a private investor, pension fund advisor, sponsored capital group, family office, or a discretionary fund manager, every investment group has an approval process/corporate structure that dictates their ability to process with a transaction. We pride ourselves on maintaining vast and deep relationships with each of the buyer profiles that are active in the market place today coupled with a thorough under standing of their required investor returns and standards of underwriting.

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$645M

$1.6B

$431M $731M

$127M

$427M

PREMIER ACCESS TO INVESTOR PROFILES 1ST TIER INVESTORS

FOREIGN & INTERNATIONAL BUYERS

Pension funds, advisors, banks, REITs, and life insurance companies

Foreign investors seeking domestic opportunities and technology enablers that direct foreign demand

1031 EXCHANGE CAPITAL Investors seeking acquisition opportunities for capital gains tax

2ND TIER INVESTORS

deferral

Syndicates, developers, merchant builders, general partnerships, and professional investors

CROSS-PRODUCT CAPITAL Opportunistic investors seeking diversification in other real estate property types

3RD TIER INVESTORS Private, individual investors who account for the majority of transactions in the marketplace

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Marketing

Offering Procurement

Conduct Buyer Interviews

Field Initial Offers

Select Buyer

Best & Final Offering Round

Negotiate Contract

OFFER PROCUREMENT D ays

d ays ACTIVE MARKETING ProActive In-Person Meetings

Distribution of offering Materials

Direct Phone Calls & Emails

On-site Property Tours

Strategic Property E-Campaigns

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Weekly Seller Updates

CLOSE OF ESCROW D ays

D ays CONTINGENCY PERIOD Contingency Period Title Work On-Site Property Inspections Third Party Inspections

timeline 31

COMMERCIAL REAL ESTATE

POWERFUL TOOLS - MNET OUR PROPRIETARY TECHNOLOGY PLATFORM, MNET, IS A GAME-CHANGER. NO OTHER FIRM OFFERS ANYTHING LIKE IT OR THE POWERFUL PROPERTY SEARCH TOOLS AND AUTOMATED PROPERTY MATCHING CAPABILITIES IT FEATURES.

A D V A N C E S E A R C H C A PA B I L I T I E S

POPUL ATION

HH INCOME

RADIUS

FINANCIALS

$18B + 1.2M 3,500 + OF CURRENT INVENTORY

SEARCHES ANNUALLY

EXCLUSIVE LISTINGS

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RCM & CREXI CREXI Commercial Real Estate Exchange, Inc. (CREXI) is the commercial real estate industry’s fastest-growing marketplace, advanced technology and data platform dedicated to supporting the CRE industry and its stakeholders. Crexi enables commercial real estate professionals to quickly streamline, manage, grow their businesses, and ultimately close deals faster. Since launching in 2015, Crexi has quickly become the most active marketplace in the industry. With millions of users, the platform has helped buyers, tenants and brokers transact and lease on over 500,000 commercial listings totaling more than $1 trillion in property value.

RCM Real Capital Markets (RCM) is the GLOBE marketplace for buying and selling CRE. RCM increases the speed, exposure, and security of CRE sales through its streamlined online platform. Solutions include integrated property marketing, transaction management, and business intelligence tools to unify broker-level and firm-level data and work flows.

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D I G I TA L E - M A R K E T I N G The main advantage of digital marketing is that a targeted audience can be reached in a cost-effective and measurable way. Over the course of the past several years, our team has managed to collect over twenty thousand emails of potential investors, in a variety of states across the US. This database allows us to tailor future investment opportunity to each investor, and their desired goal. Not only does this database allow us to personalize emails, but it also allows us to measure the results of our out reach.

EMAILS SENT THIS CURRENT MONTH

OVER 190K OVER 60K OVER 20K OVER 1.2K EMAIL OPENS

IN OUR MAILING LIST

INDUSTRY AVERAGE OPEN RATE: 29.97% CLICK RATE: .75% ADG OPEN RATE

34%

ADG CLICK RATE

1.5%

CLICK THROUGH

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“Email has an ability many channels don’t: creating valuable personal touches - a t s c a l e .”

P L AT F O R M S

Social media Social media helps us engage with our potential clients and find out what is being said about our business. We also use social media for advertising, attracting clients, get client feedback, build better customer loyalty, increase our market reach, develop our brand etc. Social media is a great tool to use in our industry, especially for building new relationships and keeping up with the market.

ADG IS ON

6 PLATFORMS OVER 1K OVER 1.2K OVER 3K NEW RELATIONSHIPS MADE

MONTHLY IMPRESSIONS ON ISSUU

IMPRESSIONS ON LINKEDIN

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THE INVESTMENT

36

PRIME ON THE HILL

P R O P E R T Y D E TA I L S

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Property Address: City, State, Zip: County: Year Built: Number Of Units: Avg Unit Size: Rentable Sqft: Number of Parcels: Lot Size (Acres): # of Buildings: # of Stories: Parkign: HVAC: Parking Surface: Wiring:

1735 Mars Hill Drive Dayton, Ohio, 45449 Montgomery 1992 100 980 98,000 2 8.25 6 3 Surface Lot Central Blacktop Copper

CONSTRUCTION: Foundation: Framing: Roofs: Exterior of Building:

Concrete Wood Pitched Shingle Brick | Aluminum Siding

utilities Electric: Gas: Water: Sewer: Trash:

Resident Paid Resident Paid Resident Paid Resident Paid Property Paid

PRIME ON THE HILL

PHOTOS

RENT COMPETITORS

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43

c o m p c o m pa r i s o n

JAN 2023

overall 11% increase •

Eagle Ridge Apartments two bedroom rent increased by 26.7% from Janauary 2023 to July 2023.

•

Indian Lookout Luxury Apartments two bedroom rent increased by 3.9% from Janauary 2023 to July 2023.

•

Villas at Arboretum two bedroom rent increased by 5.9% from January 2023 to July 2023

•

Normandy Club two bedroom rent increased by 11.1% from January 2023 to July 2023.

•

Miamisburg by the Mall two bedroom apartment rent increased by 21.3% from January 2023 to July 2023.

•

Autumn Woods Apartments two bedroom rent increased by 8.1% from January 2023 to July 2023.

•

Washington Park Apartments two bedroom rent increased by 5.3% from January 2023 to July 2023.

JUL 2023

r e n t c o m pa r i s o n PRIME ON THE HILL

JAN 2023

13.3% INCREASE

3.4% DECREASE

2% INCREASE

JUL 2023

45

rent sort two bedroom

46

Two Bedroom Property Washington Park Apartments Normandy Club Indian Lookout Luxury Aaprtments Eagle Ridge Apartments Subject Pro Forma Autumn Woods Apartments Miamisburg by the Mall Villas at Arboretum Subject Average Effective

Year Built 1998 1988 1989 1985 1992 1979 1972 1976 1992

# Units 150 176 320 205 100 384 249 72 100

Avg SF 1143 964 1052 1039 980 890 1000 1050 980

Avg Rent $1,590 $1,550 $1,499 $1,359 $1,345 $1,188 $1,120 $1,040 $1,013

Avg Rent/SF $1.39 $1.61 $1.42 $1.31 $1.37 $1.33 $1.12 $0.99 $1.03 47

RENT COMPETITORS

indian lookout UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom

UNITS 96

SQFT 758

RENT $985

320 1989 58.3% RENT/SF $1.69

Two Bedroom

224

1050

$1,499

$1.38

Apartment Interior Amenities Washer/Dryer Available In One Beds Washer/Dryer Hookups Available Fireplaces Available In Two Beds High Speed Internet Access Common Area Amenities Fitness Center Clubhouse Tennis Court Swimming Pool Laundry Facilities

1651 S Elm St

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

RENT COMPETITORS

EAGLE RIDGE A PA RT M E N T S Units Year Built Occupancy UNIT MIX One Bedroom

UNITS 41

SQFT 570

RENT $900

205 1985 97.1% RENT/SF $1.58

Two Bedroom

164

1039

$1,359

$1.31

Apartment Interior Amenities Washer/Dryer Hookups In All Units Vaulted Ceilings High Speed Internet Access

Utilities Responsibility Resident Paid Electric Resident Paid Sewer Resident Paid Trash Removal Resident Paid Water

Common Area Amenities Fitness Center Clubhouse Swimming Pool Laundry Facilities

2375 Eagle Ridge Dr

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RENT COMPETITORS

V I L L A S AT ARBORETUM UNITS YEAR BUILT OCCUPANCY UNIT MIX Two Bedroom

UNITS 58

Apartment Interior Amenities Washer/Dryer Hooups In All Units High Ceilings High Speed Internet Access Common Area Amenities Laundry Facilities Private Balcony/Patio Private Entry

6551 Hidden Knolls Ct

50

SQFT 1050

RENT $1,040

72 1976 94.4% RENT/SF $0.99

Utilities Responsibility Resident Paid Electric Resident Paid Gas Property Paid Sewer Property Paid Trash Removal Property Paid Water

RENT COMPETITORS

NORMANDY CLUB Units Year Built Occupancy UNIT MIX One Bedroom

UNITS 45

SQFT 737

RENT $1,239

176 1988 N/A RENT/SF $1.68

Two Bedroom

131

964

$1,550

$1.61

Apartment Interior Amenities Washer/Dryer Hookups In All Units Fireplaces Available In One Bedroom Units and Select Two Bedroom Units Vaulted Ceilings

Utilities Responsibility Resident Paid Electric Resident Paid Sewer Property Paid Trash Removal Resident Paid Water

Common Area Amenities Fitness Center Clubhouse Tennis Court Swimming Pool Spa Basketball court 7677 Tours Ln

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FINANCIALS

52

PRIME ON THE HILL - FINANCIALS

UNIT 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

UNIT TYPE

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 Two Bedroom | One Bath Two Bedroom | Two Bath

40 Units 60 Units

908 SF 1,028 SF

36,320 SF 61,680 SF

$973.51 $1,013.33

$1.07 $0.99

$38,941 $60,800

$1,026.25 $1,100.42

$1.13 SF $1.07 SF

$41,050 $66,025

$1,270.00 $1,345.83

$1.40 SF $1.31 SF

$50,800 $80,750

Totals / Wtd. Averages

100 Units

980 SF

98,000 SF

$997.40

$1.02 SF

$99,740

$1,070.75

$1.09 SF

$107,075

$1,315.50

$1.34 SF

$131,550

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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

PRIME ON THE HILL - FINANCIALS

UNIT 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

UNIT TYPE

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

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

Two Bedroom | One Bath 2BR/1BA - Deluxe Top Level 2BR/1BA - Deluxe Level 1 or 2 2BR/1BA - Standard Top Level 2BR/1BA - Standard Level 1 or 2 2BR/1BA - Premium Ultra Deluxe Top

12 Units 14 Units 3 Units 10 Units 1 Units

908 SF 908 SF 908 SF 908 SF 908 SF

10,896 SF 12,712 SF 2,724 SF 9,080 SF 908 SF

$1,001.82 $959.55 $958.33 $941.00 $1,200.00

$1.10 SF $1.06 SF $1.06 SF $1.04 SF $1.32 SF

$12,022 $13,434 $2,875 $9,410 $1,200

$1,100.00 $1,000.00 $1,050.00 $950.00 $1,200.00

$1.21 SF $1.10 SF $1.16 SF $1.05 SF $1.32 SF

$13,200 $14,000 $3,150 $9,500 $1,200

$1,300.00 $1,250.00 $1,300.00 $1,250.00 $1,300.00

$1.43 SF $1.38 SF $1.43 SF $1.38 SF $1.43 SF

$15,600 $17,500 $3,900 $12,500 $1,300

Totals / Wtd. Averages

40 Units

908 SF

36,320 SF

$973.51

$1.07 SF

$38,941

$1,026.25

$1.13 SF

$41,050

$1,270.00

$1.40 SF

$50,800

Two Bedroom | Two Bath 2BR/2BA - Deluxe Top Level 2BR/2BA - Deluxe Level 1 or 2 2BR/2BA - Standard Top Level 2BR/2BA - Standard Level 1 or 2 2BR/2BA - Premium Ultra Deluxe 2BR/2BA - Premium Ultra Deluxe Totals / Wtd. Averages

14 Units 16 Units 9 Units 19 Units 1 Units 1 Units 60 Units

1,028 SF 1,028 SF 1,028 SF 1,028 SF 1,028 SF 1,028 SF 1,028 SF

14,392 SF 16,448 SF 9,252 SF 19,532 SF 1,028 SF 1,028 SF 61,680 SF

$1,074.63 $1,025.00 $993.33 $945.53 $1,250.00 $1,200.00 $1,013.33

$1.05 SF $1.00 SF $0.97 SF $0.92 SF $1.22 SF $1.17 SF $0.99 SF

$15,045 $16,400 $8,940 $17,965 $1,250 $1,200 $60,800

$1,200.00 $1,100.00 $1,025.00 $1,050.00 $1,250.00 $1,200.00 $1,100.42

$1.17 SF $1.07 SF $1.00 SF $1.02 SF $1.22 SF $1.17 SF $1.07 SF

$16,800 $17,600 $9,225 $19,950 $1,250 $1,200 $66,025

$1,375.00 $1,325.00 $1,375.00 $1,325.00 $1,375.00 $1,375.00 $1,345.83

$1.34 SF $1.29 SF $1.34 SF $1.29 SF $1.34 SF $1.34 SF $1.31 SF

$19,250 $21,200 $12,375 $25,175 $1,375 $1,375 $80,750

55

INCOME EXPENSE

PRIME ON THE HILL - FINANCIALS

INCOME & EXPENSES 56

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Spectrum Video & Internet Fee Water/Sewer Fees Washer/Dryer Hookup Fee Early Lease Termination Fees Tenant Move Out Charges Trash and common area utilities AppFolio Insurance Services Monthly Pet Rent Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Gas Gas 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 Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$1,284,900 RR ($81,174) $1,203,726 RR $92,269 $42,808 $20,220 $11,405 $9,043 $8,422 $5,796 $4,005 $213,302 $1,417,028 ($97,267) $0 $0 $1,319,761

CURRENT RENT ROLL: AS OF JULY 11, 2023 INCOME & EXPENSES: JULY 2022 - JUNE 2023 % of GPR

6.32%

YEAR 1

Per Unit 12,849 (812) 12,037

$1,578,600 ($94,716) $1,483,884

% of GPR

$95,037 $44,092 $20,826 $11,747 $9,314 $8,674 $5,970 $4,125 $219,701 $1,703,585 ($74,194) ($7,419) ($7,419) $1,614,552

5.00% 0.50% 0.50% 88.00%

950 441 208 117 93 87 60 41 2,197 17,036 (742) (74) (74) 16,146

6.00%

T12 T12 T12 T12 T12 T12 T12 T12

7.67% 3.56% 1.68% 0.95% 0.75% 0.70% 0.48% 0.33% 17.72%

T12 Economic

8.08% 0.00% 0.00% 85.60%

923 428 202 114 90 84 58 40 2,133 14,170 (973) 0 0 13,198

$234,857 Auditor $234,857 $21,566 T12

% of EGI 17.80% 17.80% 1.61%

Per Unit 2,349 2,349 216

$234,857 $234,857 $40,000

14.55% 14.55% 2.53%

% of EGI 2,349 2,349 400

$14,867 $2,049 $3,127 $5,571 $51,036 $20,109 $96,759 $356,654

T12 T12 T12 T12 T12 T12

1.13% 0.16% 0.24% 0.42% 3.87% 1.52% 7.33% 27.02%

149 20 31 56 510 201 968 3,567

$15,164 $2,090 $3,189 $5,683 $52,057 $20,511 $98,694 $373,551

0.94% 0.13% 0.20% 0.35% 3.22% 1.27% 6.11% 23.14%

152 21 32 57 521 205 987 3,736

$4,513 $14,052 $2,383 $20,948 $34,117 $18,859 $62,895 $0 $20,048 $52,790 $76,271 $25,500 $311,428 $668,082 $651,679

T12 T12 T12

0.34% 1.06% 0.18% 1.59% 2.59% 1.43% 4.77% 0.00% 1.52% 4.00% 5.78% 1.93% 23.60% 50.62% 49.38%

45 141 24 209 341 189 629 0 200 528 763 255 3,114 6,681 6,517

$4,500 $14,000 $2,500 $21,000 $60,000 $10,000 $100,000 $15,000 $15,000 $64,582 $74,500 $26,010 $386,092 $759,643 $854,908

0.28% 0.87% 0.15% 1.30% 3.72% 0.62% 6.19% 0.93% 0.93% 4.00% 4.61% 1.61% 23.91% 47.05% 52.95%

45 140 25 210 600 100 1,000 150 150 646 745 260 3,861 7,596 8,549

T12 T12 T12 T12 T12 T12 Note 2 Note 1

6.40% 2.97% 1.40% 0.79% 0.63% 0.58% 0.40% 0.28% 14.81%

Per Unit 15,786 (947) 14,839

YEAR 2

$1,625,958 ($32,519) $1,593,439

YEAR 3

% of GPR 2.00% 6.14% 2.85% 1.35% 0.76% 0.60% 0.56% 0.39% 0.27% 14.20%

#

Per Unit 16,260 (325) 15,934

% of GPR

$1,674,737 ($33,495) $1,641,242 $100,824 $46,777 $22,095 $12,462 $9,881 $9,202 $6,334 $4,376 $233,035 $1,874,277 ($82,062) ($32,825) $0 $1,759,390

5.00% 2.00% 0.00% 91.00%

1,008 468 221 125 99 92 63 44 2,330 18,743 (821) (328) 0 17,594

2.00% 6.14% 2.85% 1.35% 0.76% 0.60% 0.56% 0.39% 0.27% 14.20%

Per Unit 16,747 (335) 16,412

$97,888 $45,415 $21,451 $12,099 $9,593 $8,934 $6,149 $4,249 $226,269 $1,819,708 ($79,672) ($7,967) ($7,967) $1,724,102

5.00% 0.50% 0.50% 92.00%

979 454 215 121 96 89 61 42 2,263 18,197 (797) (80) (80) 17,241

$234,857 $234,857 $40,800

% of EGI 13.62% 13.62% 2.42%

Per Unit 2,349 2,349 408

$234,857 $234,857 $41,616

% of EGI 13.62% 13.62% 2.46%

Per Unit 2,349 2,349 416

$15,467 $2,132 $3,253 $5,796 $53,098 $20,922 $100,668 $376,325

0.90% 0.12% 0.19% 0.34% 3.08% 1.21% 5.84% 21.83%

155 21 33 58 531 209 1,007 3,763

$15,777 $2,175 $3,318 $5,912 $54,160 $21,340 $102,682 $379,154

0.92% 0.13% 0.19% 0.34% 3.14% 1.24% 5.96% 21.99%

158 22 33 59 542 213 1,027 3,792

$4,590 $14,280 $2,550 $21,420 $61,200 $10,200 $102,000 $15,300 $15,300 $68,964 $75,990 $26,530 $396,904 $773,229 $950,873

0.27% 0.83% 0.15% 1.24% 3.55% 0.59% 5.92% 0.89% 0.89% 4.00% 4.41% 1.54% 23.02% 44.85% 55.15%

46 143 26 214 612 102 1,020 153 153 690 760 265 3,969 7,732 9,509

$4,682 $14,566 $2,601 $21,848 $62,424 $10,404 $104,040 $15,606 $15,606 $70,376 $77,510 $27,061 $404,875 $784,029 $975,361

0.27% 0.84% 0.15% 1.27% 3.62% 0.60% 6.03% 0.91% 0.91% 4.00% 4.50% 1.57% 23.40% 45.47% 56.57%

47 146 26 218 624 104 1,040 156 156 690 775 271 4,035 7,840 9,754

1 2

UNDERWRITING NOTES

NOTE Replacement Reserve added based on Market Norm

Long Term Cable Contract in Place

57

INCOME EXPENSE

PRIME ON THE HILL - FINANCIALS

CASH FLOW

CURRENT

YR 2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

YE JUN-2025

YE JUN-2026

YE JUN-2027

YE JUN-2028

YE JUN-2029

YE JUN-2030

YE JUN-2031

YE JUN-2032

YE JUN-2033

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

$1,284,900 ($81,174) $1,203,726 $213,302

$1,578,600 ($94,716) $1,483,884 $219,701

$1,625,958 ($32,519) $1,593,439 $226,098

$1,674,737 ($33,495) $1,641,242 $232,864

$1,724,979 ($34,500) $1,690,479 $237,521

$1,776,728 ($35,535) $1,741,194 $242,271

$1,830,030 ($36,601) $1,793,429 $247,117

$1,884,931 ($37,699) $1,847,232 $252,059

$1,941,479 ($38,830) $1,902,649 $257,100

$1,999,723 ($39,994) $1,959,729 $262,242

$2,059,715 ($41,194) $2,018,521 $267,487

GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME

$1,417,028 ($97,267) $0 $0 $1,319,761

$1,703,585 ($74,194) ($7,419) ($7,419) $1,614,552

$1,819,537 ($79,672) ($7,967) ($7,967) $1,723,930

$1,874,277 ($82,062) ($32,825) $0 $1,759,390

$1,928,000 ($84,524) ($33,810) $0 $1,809,667

$1,983,465 ($87,060) ($34,824) $0 $1,861,581

$2,040,546 ($89,671) ($35,869) $0 $1,915,006

$2,099,291 ($92,362) ($36,945) $0 $1,969,985

$2,159,749 ($95,132) ($38,053) $0 $2,026,564

$2,221,971 ($97,986) ($39,195) $0 $2,084,790

$2,286,008 ($100,926) ($40,370) $0 $2,144,711

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

$234,857 $25,038 $96,759 $20,948 $34,117 $18,859 $62,895 $0 $20,048 $52,790 $76,271 $25,500 $668,082

$234,857 $40,000 $98,694 $21,000 $60,000 $10,000 $100,000 $15,000 $15,000 $64,582 $74,500 $26,010 $759,643

$234,857 $40,800 $100,668 $21,420 $61,200 $10,200 $102,000 $15,300 $15,300 $68,964 $75,990 $26,530 $773,229

$234,857 $41,616 $102,682 $21,848 $62,424 $10,404 $104,040 $15,606 $15,606 $70,376 $77,510 $27,061 $784,029

$239,554 $42,448 $104,735 $22,285 $63,672 $10,612 $106,121 $15,918 $15,918 $72,387 $79,060 $27,602 $800,313

$244,345 $43,297 $106,830 $22,731 $64,946 $10,824 $108,243 $16,236 $16,236 $74,463 $80,641 $28,154 $816,948

$249,232 $44,163 $108,967 $23,186 $66,245 $11,041 $110,408 $16,561 $16,561 $76,600 $82,254 $28,717 $833,935

$254,216 $45,046 $111,146 $23,649 $67,570 $11,262 $112,616 $16,892 $16,892 $78,799 $83,899 $29,291 $851,281

$259,301 $45,947 $113,369 $24,122 $68,921 $11,487 $114,869 $17,230 $17,230 $81,063 $85,577 $29,877 $868,993

$264,487 $46,866 $115,636 $24,605 $70,300 $11,717 $117,166 $17,575 $17,575 $83,392 $87,289 $30,475 $887,081

$269,776 $47,804 $117,949 $25,097 $71,706 $11,951 $119,509 $17,926 $17,926 $85,788 $89,034 $31,084 $905,552

NET OPERATING INCOME

$651,679

$854,908

$950,701

$975,361

$1,009,354

$1,044,633

$1,081,071

$1,118,704

$1,157,571

$1,197,709

$1,239,159

$0 $536,900 $536,900

$0 $536,900 $536,900

$0 $536,900 $536,900

$92,324 $534,182 $626,506

$98,507 $527,999 $626,506

$105,104 $521,401 $626,506

$112,143 $514,362 $626,506

$119,654 $506,852 $626,506

$127,667 $498,838 $626,506

$136,218 $490,288 $626,506

$145,340 $481,166 $626,506

$7,318 $42,343 $49,662 $586,562

$7,318 $42,343 $49,662 $586,562

$7,808 $41,853 $49,662 $586,562

$8,331 $41,330 $49,662 $676,167

$8,889 $40,772 $49,662 $676,167

$9,485 $40,177 $49,662 $676,167

$10,120 $39,542 $49,662 $676,167

$10,798 $38,864 $49,662 $676,167

$11,521 $38,141 $49,662 $676,167

$12,292 $37,369 $49,662 $676,167

$13,116 $36,546 $49,662 $676,167

NET CASH FLOW AFTER DEBT DEBT SERVICE COVERAGE RATIO

$108,843 1.11

$268,347 1.46

$364,140 1.62

$299,194 1.44

$333,186 1.49

$368,466 1.54

$404,904 1.60

$442,537 1.65

$481,403 1.71

$521,541 1.77

$562,992 1.83

RETURN ANALYSIS CAP Rate (Purchase Price) 'All-In' CAP Rate (Total Cost) Cash-on-Cash Return IRR

TRAILING 5.52% 5.14% 2.90% n/a

YR 1 7.24% 6.75% 7.14% 39.79%

YR 2 8.06% 7.50% 9.69% 35.55%

YR 3 8.27% 7.70% 7.96% 28.39%

YR 4 8.55% 7.96% 8.87% 23.97%

YR 5 8.85% 8.24% 9.80% 21.44%

YR 6 9.16% 8.53% 10.77% 19.81%

YR 7 9.48% 8.83% 11.78% 18.69%

YR 8 9.81% 9.13% 12.81% 17.88%

YR 9 10.15% 9.45% 13.88% 17.27%

YR 10 10.50% 9.78% 14.98% 16.79%

DEBT SERVICE - Proposed New Principal Payments Interest Payments TOTAL DS - Proposed New Loan DEBT SERVICE - Loan 2 Principal Payments Interest Payments TOTAL DS - Loan 2 CONSOLIDATED DEBT SERVICE

58

YR 1 YE JUN-2024

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

22.86% 6.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

3.00% 2.00% 3.00%

4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

2.00% 4.00%

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% 0.50% 0.50% 6.00%

5.00% 0.00% 0.50% 0.50% 6.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

5.00% 0.00% 2.00% 0.00% 7.00%

Tax Breakdown Property Address 1735 Mars Hill Dr 1735 Mars Hill Dr Total

Parcel ID K48 01016 001 K48 01016 002

Year Built

Acres

Market Value $579,200 $6,570,800 $7,150,000

Assessed Value $202,720 $2,299,780 $2,502,500

Tax Rate

Taxes Payable $19,952.00 $226,441.27 $246,393.27

Land Use Code

59

PRIME ON THE HILL - FINANCIALS

PRICING P U RC H A S E P R I C E

Target Purchase Price Per Unit Per RSF

A N A LY S I S A S S U M P T I O N S

$11,800,000 $118,000 $120.41

Analysis Period Analysis Start Date Terminal Cap Rate Cost of Sale

R E N T S U M M A RY ( M O N T H LY )

10.00 Years Jul-2023 6.75% 2.50%

ACQUISITION / ADDITIONAL COSTS

Projected Capital Expenditures Renovation Cost Closing Costs Transfer Tax Total Loan Fees

$873,000 $0 $0 $0 $0

Total (‘All-In’) Cost

$873,000

P U RC H A S E P R I C E

Total Cost Per Unit Per RSF

60

$12,673,000 $126,730 $129.32

ACQUISITION FINANCING SUMMARY

Loan Amount Loan to Value (LTV) Loan to Cost (LTC) Existing or Proposed Loan Origination Date Interest Rate Years Interest Only

$8,914,750

Equity Required Equity to Value Equity to Cost

$3,758,250

75.55%

Avg. Effective Rent Avg. Current Market Rent Avg. Projected Rent

$997 $1,071 $1,316

T O TA L E X P E N S E S S U M M A RY ( P E R U N I T )

Trailing Year 1 Year 2

$6,681 $7,596 $7,732

70.34% Proposed Jul-2023 6.50% 2.00

31.85% 29.66%

N O I S U M M A RY

Trailing Year 1 Year 2

$651,679 $854,908 $950,873

E C O N O M I C L O S S S U M M A RY

Trailing Year 1 10-Year Projected Avg.

8.08% 6.00% 6.80%

PRIME ON THE HILL - FINANCIALS

TA R G E T VA L U E PRICE

PER UNIT

PER RSF

TRAILING

A L L- I N C A P R AT E YEAR 1

YEAR 2

TRAILING

YEAR 1

CAS H - O N - CAS H R E T U R N S YEAR 2

$12,390,000 $12,193,333 $11,996,667 $11,800,000 $11,603,333 $11,406,667 $11,210,000

$123,900 $121,933 $119,967 $118,000 $116,033 $114,067 $112,100

$126.43 $124.42 $122.41 $120.41 $118.40 $116.39 $114.39

5.26% 5.34% 5.43% 5.52% 5.62% 5.71% 5.81%

6.45% 6.54% 6.64% 6.75% 6.85% 6.96% 7.08%

7.17% 7.28% 7.39% 7.50% 7.62% 7.74% 7.87%

2.77% 2.81% 2.85% 2.90% 2.94% 2.99% 3.04%

6.82% 6.93% 7.03% 7.14% 7.25% 7.37% 7.49%

9.26% 9.40% 9.54% 9.69% 9.84% 10.00% 10.16%

SUGGESTED LIST PRICE: MARKET BID

Y E A R 3 ( F U L LY A M O R T I Z I N G )

7.61% 7.72% 7.84% 7.96% 8.09% 8.22% 8.35%

Marketing the asset without a specific price allows us to customize our sales approach to each investor’s specific rehab costs, cost of debt and minimum return requirements.

Thus facilitating a competitive bidding environment and ultimately maximizing the value of the Property.

TRAILING

YR 1

YR2

YR 3

YR 4

YR 5

YR 6

YR 7

YR 8

YR 9

YR 10

Cash on Cash Return Internal Rate of Return (IRR) CAP Rate (Purchase Price)

2.90% n/a 5.52%

7.14% -1.28% 7.24%

9.69% 16.94% 8.06%

7.96% 17.39% 8.27%

8.87% 16.56% 8.55%

9.80% 16.07% 8.85%

10.77% 15.75% 9.16%

11.78% 15.52% 9.48%

12.81% 15.35% 9.81%

13.88% 15.22% 10.15%

14.98% 15.11% 10.50%

CAP Rate ("All-In") Gross Revenue Multiplier (GRM)

5.14% 9.80

6.75% 7.95

7.50% 7.41

7.70%

7.96%

8.24%

8.53%

8.83%

9.13%

9.45%

9.78%

61

LOCAL MARKET

62

D A Y T O N , oHIO Since the arrival of the first settlers on April 1, 1796, Dayton to today’s biggest issues. has always been a place for pioneering vision and change. With the crossroads of Interstate 70 and 75, the railroad caThey have hosted many firsts as the patent capital of the pacity, and the international airport, Dayton provides one U.S. and provided the world with a staggering number of of the most accessible cities in the nation. In fact, Dayton’s life-changing innovations and technological advancements. location puts it within one day’s drive of 60% of the U.S. Today they’re still setting trends and promoting growth. In population. The superior transportation makes us among the the research labs of Wright-Patterson Air Force Base, the most competitive mid-sized cities for logistics.

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 64

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 averaged 1.0% annually, with roughly 3,900 jobs added on average each year. In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 9.6% year-over-year in 2nd quarter. In 2022, the metros inflation-adjusted economic output contracted 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 national 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 Professional/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.

D E M O G R A P H I C S : S TA T I S T I C S Population: 743,000

Msa median hhi: $54,457

Msa median home value: $69,400

Average occupancy: 96.2%

Median age: 33.5

1 - Year growth: 5.89%

1 - Year growth: 3.89%

Rent growth: 8.4%

S U P P LY 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.

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.”

Eric Henry, Greene County’s Economic Development Coordinator

c a r i l l o n h i s t o r i c a l pa r k 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.

a m e r i c a’ s pa c k a r d 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.

h i g h e r e d u c at i o n u n i v e r s i t y o f d ay t o n 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 s tat e 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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