Providence OM by Jordan.Dickman

PROVIDENCE

EXCLUSIVITY LISTED BY JORDAN DICKMAN

First Vice President of Investments 513-878-7735 jordan.dickman@marcusmillichap.com

NICK ANDREWS

First Vice President of Investments 513-878-7741 nick.andrews@marcusmillichap.com

ADG MULTIFAMILY

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

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

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MARKETING

the table of

CONTENTS

00 page

COMPE TITIVE SE T

01 page

FINANCIAL BREAKDOWN

page

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CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

First Vice President Investments Director, NMHG

Jordan Dickman

First Vice President Investments Director, NMHG

INVESTMENT ADVISORS

Austin Sum

Senior Investment Associate

Garry Schloemer Investment Associate

JD Schmerge Investment Associate

Brian Johnston

Tim VanWingerden

Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler

Jim Leonard

Senior Director MMCC

Senior Managing Director of Capital Markets MMCC

CLIENT RELATIONS

VALUATION & RESEARCH

Sam Petrosino

Jennifer Bauer

Financial & Research Analyst

Client Relationship Coordinator

OPERATIONS & MARKETING

Brittany Campbell-Koch Director of Operations

Josh Caruana

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

Kristin Smith Marketing

Alex Papa

Marketing Coordinator

John Sebree

Sidney Bills

Office Administrator

Senior Vice President National Director National Multi Housing Group

Liz Popp

Midwest Operations Manager

Michael Glass

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

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PROVIDENCE

00 section

MARKETING modeling the investment - 10 digital marketing - 12 uncontested videography - 14 track record - 16 ADG MULTIFAMILY

ACCURATELY MODELING THE INVESTMENT

98.9% AVERAGE CLOSED TO STRIKE PRICE RATIO 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. Where 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 marketplace today coupled with a thorough understanding

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PREMIER ACCESS TO INVESTOR PROFILES FOREIGN & INTERNATIONAL BUYERS • Foreign investors seeking domestic opportunities and technology enables that direct foreign demand

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

1031 EXCHANGE CAPITAL • Investors seeking acquisition opportunistic for capital gains tax deferral

1ST TIER INVESTORS • Pension funds, advisors, banks, REITs and life insurance companies

2ND TIER INVESTORS • Syndicators, developers, merchant builders, general partnerships, and professional investors

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

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SOCIAL MEDIA

DIGITAL & TRADITIONAL MARKETING

06 3,100+ 35,109

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SOCIAL MEDIA PLATFORMS MONTHLY IMPRESSIONS ON ISSUU EMAILS SENT TO INVESTORS IN LAST 30 DAYS

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

RCM Real Capital Markets (RCM) is the global 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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PROFESSIONAL FPV & COMMERICAL DRONE SERVICE

UNCONTESTED VIDEOGRAPHY

DRONES

RONIN

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ADVANTAGES

• Show real dimensions of the property • More interesting virtual tours • Creation of brand awareness • Shareability of videos • Shows that we are knowledgeable • Real time walk through of units • Helps create an emotional connection between future tenant and a room • Quick and easy to capture a large number of units

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ANDREWS DICKMAN TRACK RECORD $22,896,000 | 216 Units Oldham Oaks, La Grange Kentucky $17,700,000 | 276 Units Kentucky Towers, Louisville Kentucky $14,050,000 | 349 Units Springfield Portfolio, Springfield Ohio $13,000,000 | 375 Units Tri-West Portfolio, Cincinnati Ohio $10,000,000 | 252 Units Arts Apartments At Music Hall, Cincinnati Ohio $12,250,000| 178 Units Studio & Union, Dayton Ohio

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PROPERTY NAME

CITY

STATE

CLOSED PRICE

STRIKE PRICE

RATIO

Views of Mount Airy

Cincinnati

Ohio

$ 15 , 0 0 0 , 0 0 0

$ 15 , 25 0 , 0 0 0

98%

Springfield Portfolio

Springfield

Ohio

$ 13 , 8 8 0 , 0 0 0

$ 13 , 9 9 0 , 70 0

99%

Arts Apartments at Music Hall

Cincinnati

Ohio

$9,400,000

$9,800,000

96%

18 4 0 F l a t s

Lexington

Ke n t u c k y

$ 13 , 75 0 , 0 0 0

$ 14 , 0 0 0 , 0 0 0

98%

Union Hill & Studio Apartments

Dayton

Ohio

$ 13 , 0 0 0 , 0 0 0

10 0 %

K e n t u c k y To we r s

Louisville

Ke n t u c k y

$ 17, 7 0 0 , 0 0 0

$ 18 , 5 0 0 , 0 0 0

96%

Charleston Portfolio

Charleston

We s t V i r g i n i a

$43,900,000

$44,000,000

99%

Woodland Acres

Lewisburg

We s t V i r g i n i a

$6,600,000

10 0 %

Wayne Estates

Dayton

Ohio

$ 7, 4 25 , 0 0 0

$ 7, 0 0 0 , 0 0 0

10 6 %

Kings View

Cincinnati

Ohio

$ 10 , 5 0 0 , 0 0 0

$ 10 , 70 0 , 0 0 0

99%

Arbor at Montana Apartments

Cincinnati

Ohio

$ 4 , 72 9 , 0 0 0

$4,800,000

99%

Union Hill Apartments

Dayton

Ohio

$ 5 , 70 0 , 0 0 0

10 0 %

Woods & Grinstead

Louisville

Ke n t u c k y

$ 15 ,15 0 , 0 0 0

$ 15 , 2 0 0 , 0 0

99%

Roselawn Village

Cincinnati

Ohio

$ 9 , 2 8 7, 5 0 0

$9,400,000

99%

Residences at Summit View

Cincinnati

Ohio

$ 7, 3 5 0 , 0 0 0

$ 7, 4 0 0 , 0 0 0

99%

Southview Manor

Highland Heights

Ke n t u c k y

$4,850,000

10 0 %

Holly Hills

Louisville

Ke n t u c k y

$ 4 , 9 25 , 0 0 0

$4,950,000

99%

Oldham Oaks

La Grange

Ke n t u c k y

$22,896,000

$ 23 , 5 0 0 , 0 0 0

97%

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PHOTOS

PROVIDENCE

pool

ADG MULTIFAMILY

gym

livingroom

exterrior

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PROVIDENCE

01 section

COMPETITIVE SET 1 & 2 bedroom rent matrix - 22 3 bedroom rent matrix - 24 rent comps - 26

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RENT MATRIX 1 & 2 BEDROOM

One Bedroom Property Name Year Built Park Place Waterford Village 2005 Subject Pro Forma 2006 Subject Average Effective 2006 Henry Clay Ashland Terrace 1983 Bruce Apartments 1969 Gla-Low 1973

# Units 53 216 216 216 31 94 200 152

Avg SF 704 751 800 800 600 563 750 562

Avg Rent $875 $810 $807 $748 $675 $559 $555 $525

Avg Rent/SF $1.24 $1.08 $1.01 $0.94 $1.13 $0.99 $0.74 $0.93

Two Bedroom Property Name Year Built Waterford Village 2005 Subject Pro Forma 2006 Park Place Subject Average Effective 2006 Henry Clay Bruce Apartments 1969 Ashland Terrace 1983 Gla-Low 1973 Southern Oaks

# Units 216 216 53 216 31 200 94 152 58

Avg SF 1050 1225 1056 1225 1137 1000 699 822 769

Avg Rent $1,055 $962 $955 $867 $800 $754 $650 $625 $701

Avg Rent/SF $1.00 $0.79 $0.90 $0.71 $0.70 $0.75 $0.93 $0.76 $0.91

RENT MATRIX 3 BEDROOM

Three Bedroom Property Name Year Built Park Place Waterford Village 2005 Subject Pro Forma 2006 Subject Average Effective 2006 Gla-Low 1973 Bruce Apartments 1969 Ashland Terrace 1983

# Units 53 216 216 216 152 200 94

Avg SF 1485 1329 1400 1400 1012 1200 966

Avg Rent $1,300 $1,290 $1,202 $1,149 $850 $825 $775

Avg Rent/SF $0.88 $0.97 $0.86 $0.82 $0.84 $0.69 $0.80

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PROVIDENCE

RENT COMPS COMMON AMENITIES:

HENRY CLAY

Laundry Facilities

1744 Winchester Ave, Ashland, KY YEAR BUILT

1930

UNITS

UNIT FEATURES: Unitilities Included

UNIT MIX

RENT

RENT /SF

1x1

$675

600

$1.13

2x1

$800

1000

$0.80

COMMON AMENITIES:

PARK PLACE 1616 Spring Valley Dr. Huntington, WV

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YEAR BUILT

N/A

UNITS

Pool, Clubhouse, Fitness Center, Volleyball Court UNIT FEATURES: Washer/Dryer

UNIT MIX

RENT

RENT /SF

1x1

$875

704

$1.24

2x1.5

$995

1056

$0.90

3x2

$1,300

1485

$0.88

PROVIDENCE

RENT COMPS COMMON AMENITIES:

WATERFORD VILLAGE APARTMENTS 450 Riverview Dr. Barboursville, WV

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YEAR BUILT

N/A

UNITS

216

Clubhouse, Fitness Center, Pool, Movie Theater UNIT FEATURES: Patio, Balcony, Washer/Dryer

UNIT MIX

RENT

RENT /SF

1x1

$810

751

$1.08

2x1

$1,055

1050

$1.00

3x2

$1,290

1329

$0.97

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PROVIDENCE

02 section

FINANCIAL BREAKDOWN unit mix - 32 income & expenses - 34

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EXECUTIVE SUMMARY

PROVIDENCE BREAKDOWN

BEDROOM 48 Units 38,400 SF

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BEDROOM 144 Units 176,400 SF

BEDROOM 24 Units 33,600SF

EXECUTIVE SUMMARY UNIT MIX SUMMARY

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

One Bedroom

48 Units

800 SF

38,400 SF

$748.10

$0.94

$35,909

$760.00

$0.95 SF

$36,480

$806.67

$1.01 SF

$38,720

Two Bedroom

144 Units

1,225 SF

176,400 SF

$866.79

$0.71

$124,818

$890.00

$0.73 SF

$128,160

$961.67

$0.79 SF

$138,480

Three Bedroom

24 Units

1,400 SF

33,600 SF

$1,148.54

$0.82

$27,565

$1,178.33

$0.84 SF

$28,280

$1,201.67

$0.86 SF

$28,840

Totals / Wtd. Averages

216 Units

1,150 SF

248,400 SF

$871.72

$0.76 SF

$188,292

$893.15

$0.78 SF

$192,920

$953.89

$0.83 SF

$206,040

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

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GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt EFFECTIVE GROSS INCOME

INCOME

FINANCIAL BREAKDOWN

Current

EXPENSES

Non-Controllable Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities

Electric Water & Sewage Trash Removal

% of GPR

$2,361,780 ($276,600) $2,085,180 $204,334 $2,289,514 ($242,500) ($11,220) $0 $2,035,794

$207,927 $0 $207,927 $56,032

11.71% 9.80% T3 T3

% of EGI

10.21% 0.00% 10.21% T12 2.75%

Auditor

$39,677 $59,940 $13,944

T12 T12 T12

Total Utilities Total Non-Controllable Controllable Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control Total Contract Services

$113,561 $377,520

$5,295 $0 $0 $0 $5,295

Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES

$114,408 $12,292 $103,068 $2,872 $64,570 $56,283 $10,073 $55,080 $423,941 $801,461

NET OPERATING INCOME

$1,234,333

11.63% 0.54% 0.00% 76.12%

1.95% 2.94% 0.68%

Year 1

Per Unit 10,934 (1,281) 9,654 946 10,600 (1,123) (52) 0 9,425

$2,472,480 ($49,450) $2,423,030 $213,911 $2,636,942 ($121,152) ($11,220) ($24,230) $2,480,340

5.00% 0.46% 1.00% 91.54%

Per Unit 963 0 963 259

$207,927 $31,237 $239,163 $59,400

8.88% 1.33% 10.22% 2.54%

Per Unit 963 145 1,107 275

184 278 65

$40,471 $61,139 $14,223

1.73% 2.61% 0.61%

187 283 66

% of GPR

2.00% 8.83%

% of EGI

Per Unit 11,447 (229) 11,218 990 12,208 (561) (52) (112) 11,483

5.58% 18.54%

526 1,748

$115,832 $414,395

4.95% 17.70%

536 1,918

T12

0.26% 0.00% 0.00% 0.00% 0.26%

25 0 0 0 25

$5,400 $2,160 $21,600 $7,560 $36,720

0.23% 0.09% 0.92% 0.32% 1.57%

25 10 100 35 170

T12 T12 T12 T12 T12 T12 T12

5.62% 0.60% 5.06% 0.14% 3.17% 2.76% 0.49% 2.71% 20.82% 39.37%

530 57 477 13 299 261 47 255 1,963 3,710

$118,800 $12,960 $183,600 $32,400 $32,400 $81,931 $10,800 $56,182 $565,793 $980,188

5.07% 0.55% 7.84% 1.38% 1.38% 3.50% 0.46% 2.40% 24.17% 41.87%

550 60 850 150 150 379 50 260 2,619 4,538

60.63%

5,715

$1,360,704

58.13%

6,300

Added

Year 2

Year 3

% of GPR

Per Unit 11,790 (236) 11,554 1,020 12,574 (578) (52) (116) 11,829

$2,623,054 ($52,461) $2,570,593 $226,939 $2,797,532 ($128,530) ($11,220) ($25,706) $2,632,076

5.00% 0.44% 1.00% 91.56%

% of GPR

Per Unit 12,144 (243) 11,901 1,051 12,952 (595) (52) (119) 12,186

$2,546,654 ($50,933) $2,495,721 $220,329 $2,716,050 ($124,786) ($11,220) ($24,957) $2,555,087

5.00% 0.45% 1.00% 91.55%

$207,927 $31,237 $239,163 $60,588

8.29% 1.25% 9.54% 2.42%

Per Unit 963 145 1,107 281

$207,927 $31,237 $239,163 $61,800

8.29% 1.25% 9.54% 2.46%

Per Unit 963 145 1,107 286

$41,280 $62,362 $14,507

1.65% 2.49% 0.58%

191 289 67

$42,106 $63,609 $14,797

1.68% 2.54% 0.59%

195 294 69

2.00% 8.83%

% of EGI

2.00% 8.83%

% of EGI

$118,149 $417,900

4.71% 16.67%

547 1,935

$120,512 $421,475

4.81% 16.81%

558 1,951

$5,508 $2,203 $22,032 $7,711 $37,454

0.22% 0.09% 0.88% 0.31% 1.49%

26 10 102 36 173

$5,618 $2,247 $22,473 $7,865 $38,203

0.22% 0.09% 0.90% 0.31% 1.52%

26 10 104 36 177

$121,176 $13,219 $187,272 $33,048 $33,048 $87,752 $11,016 $57,305 $581,291 $999,191

4.83% 0.53% 7.47% 1.32% 1.32% 3.50% 0.44% 2.29% 23.18% 39.85%

561 61 867 153 153 406 51 265 2,691 4,626

$123,600 $13,484 $191,017 $33,709 $33,709 $92,123 $11,236 $58,451 $595,532 $1,017,007

4.93% 0.54% 7.62% 1.34% 1.34% 3.50% 0.45% 2.33% 23.58% 40.56%

572 62 884 156 156 406 52 271 2,737 4,708

$1,508,018

60.15%

6,982

$1,615,069

64.42%

7,477

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