Riverstone OM by Jordan.Dickman

THE RIVERSTONE PORTFOLIO

SUBMITTED BY:

LEAD AGENTS

Jordan Dickman

First Vice President Investments

Cincinnati Office

D. 513.878.7735 jordan.dickman@marcusmillichap.com

Nicholas Andrews

First Vice President Investments

Cincinnati Office D. 513.878.7741 nicholas.andrews@marcusmillichap.com

Austin Sum Senior Associate

Cincinnati Office

D. 513.878.7747 austin.sum@marcusmillichap.com

Austin Hall Associate

Cincinnati Office

D. 513.878.7712 austin.hall@marcusmillichap.com

NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY DISCLAIMER

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

26 | FINANCIALS 01 02 03 04 34 | LOCAL MARKET 12 | LOCAL COMPETITORS 06 | THE INVESTMENT CONTENTS BROKER CAPABILITIES & OPINION OF VALUE

CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES

UNRIVALED SUCCESS IN THE MIDWEST

DEBT & STRUCTURED FINANCE

OPERATIONS

Brittany Campbell-Koch Director of Operations Liz

Popp Midwest Operations Manager

John Sebree Senior Vice President National Director National Multi Housing Group

Midwest

Manufactured

Michael Glass Senior Vice President

Division Manager National Director,

Home Communities Group

Josh Caruana

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

Nick Andrews First Vice President Investments Director, NMHG Jordan Dickman First Vice President Investments Director, NMHG Austin Sum Senior Investment Associate

Investment

JD Schmerge

Associate

Investment

Brian Johnston

Associate INVESTMENT ADVISORS

Tim VanWingerden

Investment Associate

Chris Litzler Senior Director of Organization MMCC Sam Petrosino Financial & Research Analyst VALUATION & RESEARCH

Client Relations

CLIENT

Skyler Wilson

Manager

RELATIONS

Alex Papa Marketing Coordinator Kristin Smith Marketing MARKETING Austin Hall

Investment Associate

6 ADG MULTIFAMILY

01 SECTION THE INVESTMENT

INVESTMENT

7 ADG MULTIFAMILY

PHOTOS RIVERSTONE Property Name Riverstone Court Property Address 5623; 5653; 5615; 5631; 5500 Beechmont Ave City, State Cincinnati, Ohio County Hamilton Year Built 1952-1972 Property Type (Market Rate, LIHTC, Student Housing, etc) Market Units 87 Sqft 63,320 Avg Effective Rent $767 Avg Market Rent $786

STRATEGIC RENOVATION PLAN RIVERSTONE RENOVATION DETAILS • Paint Existing Shaker Cabinets • Tile Backsplash • Granite/Quartz Countertop • Stainless Steel Appliance • LVP Flooring • Updated Light Fixtures • Updated Plumbing Fixtures • Updated Vanity with Granite Top • Refinished Shower Surrounds • Stained Exterior Brick • New Landscape Design • Lightened Hallways BEFORE AFTER

NEW PLUMING AND LIGHTING FIXTURES GRANITE COUNTERTOPS VINYL PLANK FLOORING MATCHING APPLIANCES NEW HARDWARE & PAINTED CABINETS 33% $7,500 ESTIMATED COST (1 BR) $208 AVG. RENT INCREASE / MO. 41% $8,500 ESTIMATED COST (2 BR) $293 AVG. RENT INCREASE / MO. RETURN ON INVESTMENT RETURN ON INVESTMENT

SECTION LOCAL COMPETITORS

COMPETITORS

LOCAL COMPETITORS 1 BEECHMONT TOWERS 2 WASHINGTON HOUSE APTS 3 DEER HILL APTS 4 COPPER HILL APTS 5 BERKSHIRE APTS 6 THE WOODS OF TURPIN HILLS RENT COMPARABLES 2 4 1 3 * 5623 BEECHMONT AVE 5653 BEECHMONT AVE 5615 BEECHMONT AVE 5490 BEECHMONT AVE

5 6

UNITS 56 YEAR BUILT 1983 OCCUPANCY 98.8% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 26 822 $950 $1.16 Two Bedroom 28 925 $1,150 $1.24 Common Area Amenities Off-street parking Laundry facilities on site On-site maintenance Apartment Interior Amenities Dishwasher Refridgerator Patio/balcony BEECHMONT TOWERS

Common Area Amenities Clubhouse Fitness Center Game Room Gated Apartment Interior Amenities Balcony Cable Ready Fireplace UNITS 47 YEAR BUILT 1964 OCCUPANCY 97.5% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 24 825 $860 $1.04 Two Bedroom 23 900 $1,050 $1.17 WASHINGTON HOUSE APTS

UNITS 124 YEAR BUILT 1968 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 16 650 $1,065 $1.64 Two Bedroom 86 850 $1,300 $1.53 Common Area Amenities Laundry Swimming pool On site maintenance Apartment Interior Amenities Dishwasher Air conditioning Additional storage BLUE VALLEY FLATS

Apartment Interior Amenities Washer/Dryer in unit Air Conditioning Pets Welcome Common Area Amenities Laundry facilities Wooded communities Off street parking COPPER HILL UNITS 48 YEAR BUILT 1972 OCCUPANCY 99.9% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 8 615 $915 $1.49 Two Bedroom 40 750 $1,145 $1.53

Common Area Amenities Fitness Center Pool Off Street Parking Laundry facilities Wooded community Apartment Interior Amenities Air conditioner Balcony Disposal Large closets SUTTON PLACE APARTMENTS UNITS 83 YEAR BUILT 1967 OCCUPANCY 99.9% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 34 650 $1,095 $1.68 Two Bedroom 35 1000 $1,045 $1.05

Common Area Amenities 24-Hour Access Maintence on Site Apartment Interior Amenities Cable Ready Large Bedrooms Hardwood Floors WOODS OF TURPIN HILLS UNITS 152 YEAR BUILT 1973 OCCUPANCY 96.7% UNIT MIX # OF UNITS SQFT RENT RENT/SF One Bedroom 75 685 $855 $1.25 Two Bedroom 77 925 $970 $1.05

LOCAL COMPETITORS - ONE BEDROOM

One Bedroom Year Built Year Built # Units Avg SF Avg Rent Avg Rent/SF Sutton Place Apartments 1967 83 650 $1,095 $1.68 Blue Valley Flats 1968 124 650 $1,065 $1.64 Deer Hill Apartments 1977 258 650 $1,040 $1.60 Subject Pro Forma 1960 87 642 $950 $1.48 Beechmont Towers Apartments 1983 56 822 $950 $1.16 Copper Hill 1972 48 615 $915 $1.49 Washington House Apartments 1964 47 825 $860 $1.04 The Woods of Turpin Hills 1973 152 685 $855 $1.25 Berkshire Apartments 1980 65 650 $800 $1.23 Subject Average Effective 1960 87 642 $791 $1.23

LOCAL COMPETITORS - TWO BEDROOM

Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Blue Valley Flats 1968 124 850 $1,300 $1.53 Deer Hill Apartments 1977 258 950 $1,200 $1.26 Subject Pro Forma 1960 87 874 $1,150 $1.32 Beechmont Towers Apartments 1983 56 925 $1,150 $1.24 Copper Hill 1972 48 750 $1,145 $1.53 Washington House Apartments 1964 47 900 $1,050 $1.17 Sutton Place Apartments 1967 83 1000 $1,045 $1.05 The Woods of Turpin Hills 1973 152 925 $970 $1.05 Subject Average Effective 1960 87 874 $897 $1.03 Berkshire Apartments 1980 65 721 $875 $1.21

03 SECTION FINANCIAL

FINANCIAL BREAKDOWN

AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL SUMMARY One Bedroom 56 Units 642 SF 35,930 SF $741.86 $1.16 $41,544 $756.25 $1.18 SF $42,350 $950.00 $1.48 SF $53,200 Two Bedroom 31 Units 874 SF 27,090 SF $863.86 $0.99 $26,780 $874.52 $1.00 SF $27,110 $1,156.45 $1.32 SF $35,850 Totals / Wtd. Averages 87 Units 724 SF 63,020 SF $785.33 $1.08 SF $68,324 $798.39 $1.10 SF $69,460 $1,023.56 $1.41 SF $89,050 UNIT MIX SUMMARY RIVERSTONE - FINANCIALS UNIT DISTRIBUTION UNIT RENTS

UNIT MIX BREAKDOWN

One Bedroom

1BR/1BA

5490-5500

SF $8,550

1BR/1BA - Large - 5653-5659 11 Units 685 SF 7,535 SF $740.91 $1.08 SF $8,150 $745.00 $1.09 SF $8,195 $950.00 $1.39 SF $10,450

Totals / Wtd. Averages 56 Units 642 SF 35,930 SF $741.86 $1.16 SF $41,544 $756.25 $1.18 SF $42,350 $950.00 $1.48 SF $53,200

Two Bedroom

2BR/1BA - Small - 5490-5500 6 Units 800 SF 4,800 SF $835.00 $1.04 SF $5,010 $850.00 $1.06 SF $5,100 $1,150.00 $1.44 SF $6,900

2BR/1BA - 5615-5577 Beechmont 11 Units 850 SF 9,350 SF $809.44 $0.95 SF $8,904 $810.00 $0.95 SF $8,910 $1,150.00 $1.35 SF $12,650

2BR/1BA - 5653-5659 Beechmont 6 Units 850 SF 5,100 SF $810.00 $0.95 SF $4,860 $810.00 $0.95 SF $4,860 $1,150.00 $1.35 SF $6,900

2BR/1BA - Large - 5623 Beechmont 8 Units 980 SF 7,840 SF $1,000.71 $1.02 SF $8,006 $1,030.00 $1.05 SF $8,240 $1,175.00 $1.20 SF $9,400

Totals / Wtd. Averages 31 Units 874 SF 27,090 SF $863.86 $0.99 SF $26,780 $874.52 $1.00 SF $27,110 $1,156.45 $1.32 SF $35,850

AVERAGE EFFECTIVE MARKET PROJECTED

TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT

TOTAL

POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL

UNIT

RENT/SF

RENT

- Small - 5615-5577 13 Units 575 SF 7,475 SF $720.38 $1.25 SF $9,365 $750.00 $1.30 SF $9,750 $950.00 $1.65 SF $12,350

- Small - 5653-5659 5 Units 575 SF 2,875 SF $715.00 $1.24 SF $3,575 $750.00 $1.30 SF $3,750 $950.00 $1.65 SF $4,750

Beechmont 18 Units 660 SF 11,880 SF $768.53 $1.16 SF $13,834 $775.00 $1.17 SF $13,950 $950.00 $1.44 SF $17,100

- Large - 5615-5577 9 Units 685 SF 6,165 SF $735.63 $1.07 SF $6,621 $745.00 $1.09 SF $6,705 $950.00 $1.39

RIVERSTONE - FINANCIALS

GROSS POTENTIAL RENT

CURRENT (RENT ROLL/T3 INCOME; ADJUSTED TRAILING EXPENSES)

% of GPR Per Unit

YEAR 1 60% ARE BEING RENOVATED

% of GPR Per Unit

All Units at Market Rent $824,160 T3 9,473 $1,068,600 12,283

Gain (Loss) to Lease ($10,713) T3 1.30% (123) ($96,174) 9.00% (1,105)

GROSS SCHEDULED RENT $813,447 9,350 $972,426 11,177

OTHER INCOME

Water Reimb

$35,630 T3 4.38% 410 $36,699 3.77% 422

MTM Fee $12,800 T3 1.57% 147 $13,184 1.36% 152

Pet Fees $7,923 T3 0.97% 91 $8,161 0.84% 94

Late Rent Fees $6,600 T3 0.81% 76 $6,798 0.70% 78

Waste Disposal Reimb $6,013 T3 0.74% 69 $6,193 0.64% 71

Laundry Income $4,536 T3 0.56% 52 $4,672 0.48% 54

Utility Read Income from Tenants $2,976 T3 0.37% 34 $3,065 0.32% 35

Collections $2,750 T3 0.34% 32 $2,833 0.29% 33

Collections- Eviction Filing Fees $2,080 T3 0.26% 24 $2,142 0.22% 25

Total Other Income $90,419 11.12% 1,039 $93,131 9.58% 1,070

GROSS POTENTIAL INCOME

$903,866 10,389 $1,065,557 12,248

Physical Vacancy ($29,339) T3 3.61% (337) ($48,621) 5.00% (559)

Bad Debt ($38,014) T3 4.67% (437) ($9,724) 1.00% (112)

Concessions Allowance ($400) T3 0.05% (5) $0 0.00% 0

EFFECTIVE GROSS INCOME $836,113 90.37% 9,610 $909,969 75.00% 10,459

NON-CONTROLLABLE

Real Estate Taxes % of EGI Per Unit % of EGI Per Unit

2021 Taxes Paid $68,146 Auditor 8.15% 783 $68,146 7.49% 783 Adjustment for Sale $89,968 10.76% 1,034 $89,968 9.89% 1,034

Total Real Estate Taxes $158,114 18.91% 1,817 $158,114 17.38% 1,817

Insurance $15,124 T12 1.81% 174 $26,100 2.87% 300

Utilities

Gas & Electric $40,027 T12 4.79% 460 $40,827 4.49% 469

Gas & Electric Vacant $1,421 T12 0.17% 16 $1,449 0.16% 17 Water & Sewage $42,804 T12 5.12% 492 $43,660 4.80% 502 Trash Removal $9,093 T12 1.09% 105 $9,275 1.02% 107

Utility Meter Fee $2,746 T12 0.33% 32 $2,801 0.31% 32 Total Utilities $96,091 11.49% 1,104 $98,012 10.77% 1,127 Total Non-Controllable $269,329 32.21% 3,096 $282,227 31.01% 3,244

CONTROLLABLE Contract Services Snow Removal $5,654

Landscaping/Grounds $20,082

Pest Control

Total Contract Services $26,423

Repairs & Maintenance $42,849

Marketing & Promotion $4,579 T12 0.55% 53 $6,525 0.72% 75 On-Site Payroll $106,777 T12 12.77% 1,227 $87,000 9.56% 1,000 Payroll Taxes & Benefits $10,056 T12 1.20% 116 $13,050 1.43% 150 General & Administrative $22,407 T12 2.68% 258 $13,050 1.43% 150 Management Fee $32,138 T12 3.84% 369 $36,399 4.00% 418 Telephone & Cable $1,026 T12 0.12% 12 $1,305 0.14% 15 Replacement & Reserves $22,185 Note 1 2.65% 255 $22,629 2.49% 260 Total Controllable $268,439 32.11% 3,086 $258,692 28.43% 2,973 TOTAL EXPENSES $537,768 64.32% 6,181 $540,919 59.44% 6,217 NET OPERATING INCOME $298,345 35.68% 3,429 $369,050 40.56% 4,242 INCOME & EXPENSES RIVERSTONEFINANCIALS INCOME EXPENSE

T12 0.68% 65 $6,090 0.67% 70

T12 2.40% 231 $17,400 1.91% 200

$687 T12 0.08% 8 $3,045 0.33% 35

3.16% 304 $26,535 2.92% 305

T12 5.12% 493 $52,200 5.74% 600

YEAR 2

(Projected Rent Increase after Stabilization, Reno)

% of GPR Per Unit

YEAR 3

(Projected Rent/ Expense Increase after Stabilization)

% of GPR Per Unit

$1,111,344 12,774 $1,155,798 13,285 ($44,454) 4.00% (511) ($23,116) 2.00% (266) $1,066,890 12,263 $1,132,682 13,019

$37,800 3.54% 434 $38,934 3.44% 448 $13,580 1.27% 156 $13,987 1.23% 161 $8,406 0.79% 97 $8,658 0.76% 100 $7,002 0.66% 80 $7,212 0.64% 83 $6,379 0.60% 73 $6,571 0.58% 76 $4,812 0.45% 55 $4,956 0.44% 57 $3,157 0.30% 36 $3,252 0.29% 37 $2,918 0.27% 34 $3,005 0.27% 35 $2,206 0.21% 25 $2,272 0.20% 26 $95,922 8.99% 1,103 $98,796 8.72% 1,136

$1,162,812 13,366 $1,231,478 14,155 ($53,345) 5.00% (613) ($56,634) 5.00% (651) ($10,669) 1.00% (123) ($11,327) 1.00% (130) $0 0.00% 0 $0 0.00% 0

$1,098,799 90.00% 12,630 $1,163,517 92.00% 13,374

% of EGI Per Unit

% of EGI Per Unit $68,146 6.20% 783 $68,146 6.20% 783 $89,968 8.19% 1,034 $89,968 8.19% 1,034 $158,114 14.39% 1,817 $158,114 14.39% 1,817 $26,622 2.42% 306 $27,154 2.47% 312

$41,644 3.79% 479 $42,477 3.87% 488 $1,478 0.13% 17 $1,507 0.14% 17 $44,533 4.05% 512 $45,424 4.13% 522 $9,460 0.86% 109 $9,650 0.88% 111 $2,857 0.26% 33 $2,915 0.27% 34 $99,973 9.10% 1,149 $101,972 9.28% 1,172 $284,709 25.91% 3,273 $287,241 26.14% 3,302

$6,212 0.57% 71 $6,336 0.58% 73 $17,748 1.62% 204 $18,103 1.65% 208 $3,106 0.28% 36 $3,168 0.29% 36 $27,066 2.46% 311 $27,607 2.51% 317 $53,244 4.85% 612 $54,309 4.94% 624 $6,656 0.61% 77 $6,789 0.62% 78 $88,740 8.08% 1,020 $90,515 8.24% 1,040 $13,311 1.21% 153 $13,577 1.24% 156 $13,311 1.21% 153 $13,577 1.24% 156 $43,952 4.00% 505 $46,541 4.00% 505 $1,331 0.12% 15 $1,358 0.12% 16 $23,081 2.10% 265 $23,543 2.14% 271 $270,692 24.64% 3,111 $277,815 25.05% 3,164 $555,401 50.55% 6,384 $565,056 51.42% 6,495 $543,398 49.45% 6,246 $598,461 54.47% 6,879

GROSS

POTENTIAL RENT

All Units at Market Rent

$824,160 $1,068,600 $1,111,344 $1,155,798 $1,202,030 $1,250,111 $1,300,115 $1,352,120 $1,406,205 $1,462,453 $1,520,951

Gain (Loss) to Lease ($10,713) ($96,174) ($44,454) ($23,116) ($24,041) ($25,002) ($26,002) ($27,042) ($28,124) ($29,249) ($30,419)

GROSS SCHEDULED RENT

$813,447 $972,426 $1,066,890 $1,132,682 $1,177,989 $1,225,109 $1,274,113 $1,325,078 $1,378,081 $1,433,204 $1,490,532

Total Other Income $90,419 $93,131 $95,922 $98,796 $100,772 $102,787 $104,843 $106,940 $109,079 $111,260 $113,486

GROSS POTENTIAL INCOME

$903,866 $1,065,557 $1,162,812 $1,231,478 $1,278,761 $1,327,896 $1,378,956 $1,432,018 $1,487,159 $1,544,464 $1,604,018

Physical Vacancy ($29,339) ($48,621) ($53,345) ($56,634) ($58,899) ($61,255) ($63,706) ($66,254) ($68,904) ($71,660) ($74,527)

Bad Debt ($38,014) ($9,724) ($10,669) ($11,327) ($11,780) ($12,251) ($12,741) ($13,251) ($13,781) ($14,332) ($14,905)

Concessions Allowance ($400) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

EFFECTIVE GROSS INCOME

$836,113 $909,969 $1,098,799 $1,163,517 $1,208,082 $1,254,390 $1,302,509 $1,352,513 $1,404,475 $1,458,472 $1,514,586

Real Estate Taxes $158,114 $158,114 $158,114 $158,114 $161,277 $164,502 $167,792 $171,148 $174,571 $178,063 $181,624

Insurance $15,124 $26,100 $26,622 $27,154 $27,698 $28,251 $28,817 $29,393 $29,981 $30,580 $31,192

Utilities $96,091 $98,012 $99,973 $101,972 $104,012 $106,092 $108,214 $110,378 $112,585 $114,837 $117,134

Contract Services $26,423 $26,535 $27,066 $27,607 $28,159 $28,722 $29,297 $29,883 $30,480 $31,090 $31,712

Repairs & Maintenance $42,849 $52,200 $53,244 $54,309 $55,395 $56,503 $57,633 $58,786 $59,961 $61,161 $62,384

Marketing & Promotion $4,579 $6,525 $6,656 $6,789 $6,924 $7,063 $7,204 $7,348 $7,495 $7,645 $7,798

On-Site Payroll $106,777 $87,000 $88,740 $90,515 $92,325 $94,172 $96,055 $97,976 $99,936 $101,934 $103,973

Payroll Taxes & Benefits $10,056 $13,050 $13,311 $13,577 $13,849 $14,126 $14,408 $14,696 $14,990 $15,290 $15,596

General & Administrative $22,407 $13,050 $13,311 $13,577 $13,849 $14,126 $14,408 $14,696 $14,990 $15,290 $15,596

Management Fee $32,138 $36,399 $43,952 $46,541 $48,323 $50,176 $52,100 $54,101 $56,179 $58,339 $60,583

Telephone & Cable $1,026 $1,305 $1,331 $1,358 $1,385 $1,413 $1,441 $1,470 $1,499 $1,529 $1,560

Replacement & Reserves $22,185 $22,629 $23,081 $23,543 $24,014 $24,494 $24,984 $25,484 $25,993 $26,513 $27,043

TOTAL EXPENSES $537,768 $540,919 $555,401 $565,056 $577,209 $589,639 $602,353 $615,358 $628,662 $642,271 $656,195

NET OPERATING INCOME $298,345 $369,050 $543,398 $598,461 $630,873 $664,751 $700,156 $737,155 $775,813 $816,201 $858,391

CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE OCT-2023 YE SEP-2024 YE SEP-2025 YE SEP-2026 YE SEP-2027 YE SEP-2028 YE SEP-2029 YE SEP-2030 YE SEP-2031 YE SEP-2032

CASH FLOW RIVERSTONEFINANCIALS INCOME EXPENSE

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

Income

Gross Potential Rent 29.66% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

(Loss) / Gain to Lease* 9.00% 4.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Expenses

Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Management Fee** 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS

Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Non-Revenue Units 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Bad Debt 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Total Economic Loss 16.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%

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

YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10

1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR

04 SECTION LOCAL

LOCAL MARKET

CINCINNATI

The steady and stable nature of the Cincinnati apartment market was undoubtfully a benefit through 2020. The MSA saw a 2.7% annual increase in effective asking rents on new leases which matched the market’s norm for the 2010s decade. This growth put Cincinnati at #14 amongst the 50 largest markets for rent growth in 2020. Although occupancy was down 0.3 points from the prior year’s rate, the 4th quarter 2020 occupancy rate (96.4%) ranked #11 among the top 50 markets and #3 regionally. Only Q1 2020 saw net move-outs, although that’s typically the case in the local

market due to seasonal demand patterns, the three subsequent quarters saw huge demand and absorption totaled 1,563 units. That is 38% above the 20-year norm for annual absorption. During the peak of the pandemic challenges the job market declined 4.6%, this ranked Cincinnati 3rd best among the Midwest and was significantly better than the national average of 5.8%.

ECONOMIC OVERVIEW

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

Population: 2,190,000

Median age: 38 (.39%)

DEMOGRAPHIC OVERVIEW

Population growth in Cincinnati remains modest, as the metro’s population expanded just 2.5% from 2014-2019, below the U.S. average of 2.9%. During that period the majority of Cincinnati’s growth came from the 55+ age segment which grew 11.5%. The 20-to 34-year-old segment grew modestly over the fiveyear period increasing 2.1% which was above the national average of 1.6%. A very strong aspect to Cincinnati’s population is the level of education amongst the working age population with 37% of that segment having a bachelor’s degree or higher compared to the national average of 33.1%. The modest pop-

DEMOGRAPHICS: STATISTICS

Msa median hhi: $62,743

1 - Year growth: 1.77%

Msa median home value: $173,500

1 - Year growth: 4.83%

ulation growth coupled with a modest pipeline has maintained occupancies between 95%-97% over the last six years with the average occupancy in Q4 of 2020 being above the six year average at 96.4%. The average effective asking rents have outperformed the Midwest averages since 2011 and in 2020 the average effective rents grew by 2.7% outpacing the Midwest average of 0.8% and the national average of -1.1%.

Average occupancy: 96.4% Rent growth: 2.7%

SUPPLY & DEMAND

DEMAND

• Annual absorption in Cincinnati has ranged from 776 units to 3,068 units in the last five years. Average of 1,788 units annually during that time.

• In the last 12 months, the Cincinnati market recorded demand for 1,462 units, exceeding concurrent supply volumes for the first time since the pandemic began.

• Campbell County, Warren County and Butler County are a few of the strongest areas in Cincinnati, based on absorption, over the last five years.

SUPPLY

• Over the past five years Annual new supply averaged 1,555 units, and annual inventory growth averaged 1.0%. In the year-ending 2nd quarter 2021, there were 1,131 units delivered.

• Among submarkets, new supply over the past five years has been concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County, totaling 62% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be concentrated in Central Cincinnati.

HEART OF DOWNTOWN

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

TQL STADIUM

The FCC-TQL partnership brings together two Cincinnati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commitment to our local community. There are a lot of synergies that make this alliance between TQL and FCC a perfect match and are reflected throughout the stadium from — the fin lighting to the TQL Beer District. The stadium features first-in-the-world lighting technology powered by 2.7 miles of LED lights.

26,000 STADIUM SEATS 14,256 FEET OF LED LIGHTS 360 CANOPY ROOF 3,170 BAILEY SEATS

41 ADG MULTIFAMILY INTERESTING STATISTICS

ATTRACTIONS

DORA

From 11am – 1am daily, the 85-acre DORA district at The Banks allows guests to take their beverage purchased from one of the 18 Banks establishments and explore our public plazas and green spaces. It simply needs to be in the Official DORA Cup.

At risk of missing the first pitch? Late for the opening act? Take your beverage purchased in a DORA cup from a Banks establishment and go! Waiting for a table, or wish to picnic outside in The Banks plazas or greenspaces? Grab a DORA beverage from a Banks establishment and explore!

CINCINNATI ZOO

The Cincinnati Zoo & Botanical Garden is the second oldest zoo in the United States, founded in 1873 and officially opening in 1875, after the Roger Williams Park Zoo. It is located in the Avondale neighborhood of Cincinnati, Ohio. It originally began with 64.5 acres in the middle of the city, but has spread into the neighboring blocks and several reserves in Cincinnati’s outer suburbs. It was appointed as a National Historic Landmark in 1987.

HARD ROCK CASINO

The game is always on at Hard Rock Casinos, where stars are made every night. Come try your hand at the tables, with classic games including blackjack, baccarat and poker, or tap into thousands of the hottest slots on the planet. With the world’s greatest rock memorabilia collection to enhance the thrill, plus the accompaniment of live, world-class entertainment, the atmosphere is like no other.

RETAIL & SHOPPING

In addition to the restaurant and nightlight scene, the area has no shortage of retail options. Downtown offers both boutiques and department stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restaurant and nightlife scene is now thriving, and the shopping scene is beginning to catch up. Most of the shops are in the southwest quarter of Over-the-Rhine, on either Vine or Main St. You won’t find chain stores in this walkable shopping district. MiCA 12/v and Urban Eden are a popular gift shops that sell local arts and crafts. Elm & Iron sells vintage and up-cycled items for the home. The Little Mahatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shoppers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.

homage elm & iron otr

FINDLAY FARMERS MARKET

Findlay Market is Ohio’s oldest continuously operated public market and is located in the historic Over-the-Rhine neighborhood. The market is a wonderful place for locals to buy their groceries as well as a must-see historic spot for visitors to Cincinnati. Findlay Market is open year-round, Tuesday through Sunday, with a seasonal farmers market. Nearly 40 full-time businesses operate year-round, plus over 100 more vendors operate on weekends or part-time. Many vendors sell raw food while others specialize in prepared foods. Some of the

merchants are new startups, while others have been in business for generations. You’ll find everything from fresh meat and produce to imported fine teas to Belgian waffles. There are restaurants as well as a beer garden, so plan to stay for lunch. Findlay Market has a fascinating history. Why not take a tour to learn more? There are several different tour options, including a culinary tour with tasty samples.

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