Rosehill Townhomes OM by Jordan.Dickman

ROSEHILL TOWNHOMES

SUBMITTED BY:

LEAD AGENTS

Tim VanWingerden Associate Louisville D. 513.878.7750

tim.vanwingerden@marcusmillichap.com

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

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.

32 | THE FINANCIALS 01 02 03 0440 | LOCAL MARKET 20 | LOCAL COMPETITORS 06 | THE INVESTMENTCONTENTSBROKER CAPABILITIES & OPINION OF VALUE

CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES80+ | OFFICES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews First Vice President Investments Director, NMHG Jordan Dickman First Vice President Investments Director, NMHG OPERATIONS Brittany Campbell-Koch Director of OperationsSidney Bills Office Administrator Liz Popp Midwest Operations Manager John Sebree Senior Vice President National Director National Multi Housing Group Michael Glass Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group Josh Caruana Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City Austin Sum Senior Investment Associate JD Schmerge Investment Associate Brian Johnston Investment Associate INVESTMENT ADVISORS Tim VanWingerden Investment Associate DEBT & STRUCTURED FINANCE Chris Litzler Senior Director of Organization MMCC Sam Petrosino Financial & Research Analyst VALUATION & RESEARCH Skyler Wilson Client Relations Manager CLIENT RELATIONS Alex Papa Marketing Coordinator Kristin Smith Marketing MARKETING

01SECTION THE INVESTMENT

INVESTMENT

INVESTMENT HIGHLIGHTS

ROSEHILL TOWNHOMES

PROVEN RENT GROWTH

Rents in the surrounding markets for a 3-bedroom townhome average $1,509. This provides an excellent opportunity for an investor to incor porate a light renovation on units and draft rents staying on average $109 lower than the competition.

VALUE ADD OPPORTUNITY

The new owner can take advantage of the value add opportunity of this property’s prime location. Remodeling these apartments with granite countertops, new light fixtures, and updated paint will provide an incoming investor a $276 premium on rents capturing a 44% ROI on unit upgrades.

LEXINGTON’S OVERFLOW MARKET

Population growth continues to outpace new inventory in the Lexing ton marketplace. This competitive renting environment attracts ten ants to the surrounding markets such as Versailles. Over the past 5 years, there has been a steady increase in Lexington commuters with over half of Lexington workforce commuting from outside the city.

MINIMAL DEFERRED MAINTENANCE

Rosehill townhomes is well-maintained with a number of big-ticket items addressed including HVAC and roof. With the current ownership investing in the future performance of the property, the capital infu sion delivers an asset with minimal capex allowing new ownership to focus on an aggressive leasing initiative to further align market rent with market competitors.

VERSAILLES, KY

ROSEHILL TOWNHOMES RECENT CAPEX 42 Units: Full Roof Replacement 12 Units: Upgraded Appliances 34 Units: LVP Flooring (Carpet in Bedrooms) 42 Units: Newly paved back patio and privacy fence. 21 Units: Full HVAC Replacement

60,900 46 1,324 RENTABLE SQUARE FEET TOTAL UNITS AVG SQUARE FEET 3x2 12 3x2 - with garge 34 % Leased 98% PROPERTY SUMMARY ROSEHILL TOWNHOMES

LOCATION ROSEHILL TOWNHOMES ROSEHILL TOWNHOMES

ROSEHILL

TOWNHOMES PROPERTY SNAPSHOT 210 BRECKENRIDGE ROAD, VERSAILLES, KY SUMMARY SUBMARKET: WOODFORD COUNTY | COUNTY: WOODFORD Property Name: Roshill Townhomes Mechanical Property Address: 210 Breckenridge Road HVAC Central Air City, State, Zip: Versailles, KY Water Heater Individual Submarket: Woodford County Wiring Copper County: Woodford Construction: Year Built/Reno: 1995 Framing Wood Property Type (Market Rate, Affordable, etc.): Rosehill Versailles LLC Roof Type/Age Replaced 2021 Current Ownership: Rosehill Versailles LLC Exterior of Building Brick / Vinyl Current Management: Show Place Realty Windows Original Number Of Units: 46 Utility Responsibility Avg Unit Size: 1350 Electric: Tenant Paid Rentable Sqft: 62,100 Water Tenant Paid Number of Parcels: 46 Sewer Tenant Paid Lot Size (Acres): 4.6 Trash: City Provided # of Buildings: 12 # of Stories: 2 Current Occupancy: 97.8 Parking Type: Driveway Parking Surface: Concrete

RECENT CAPEX 42 Units: Full Roof Replacement 12 Units: Upgraded Appliances 34 Units: LVP Flooring (Carpet in Bedrooms) 42 Units: Newly paved back patio and privacy fence. 21 Units: Full HVAC Replacement

INTERIOR PHOTOS ROSEHILL TOWNHOMES BEDROOM BATHROOMLIVINGROOM GARAGE

KITCHEN

EXTERIOR PHOTOS ROSEHILL TOWNHOMES BACKYARD BACKYARDEXTERIOR EXTERIOR

DRIVEWAYS

PROPOSED RENOVATIONS

ROSEHILL GARDENS The new owner can take advantage of the value add opportunity and remodel these apartments with granite countertops, stainless appliances, new cabinets, modern light fixtures, and a bathroom vanity providing an estimated $276 monthly premium on rents, capturing a 44% ROI on unit upgrades. ITEM 2 BEDROOM Granite Countertop $1,500 Stainless Appliance Package $1,850 New Kitchen Cabinets $2,000 Modern Light Fixtures $1,150 Bathroom Vanity $1,000 Total $7,500 $7.5K/UNIT $276/MONTH 44% AVG RENO COST AVG RENT INCREASE ROI

2 3 1 4 3 5 5 5 5 1 2 3 3 4 3 PROPOSED RENOVATIONS GRANITE COUNTERTOPSBATHROOM VANITY MODERN LIGHT FIXTURES1 2 3 NEW KITCHEN CABINETS4 STAINLESS STEEL APPLIANCES5

02SECTION LOCAL COMPETITORS

COMPETITORS

* 1 541 BEECH STREET 2 WOOLDRIDGE APARTMENTS 3 HAVERFORD PATH 4 3121 DALY PLACE RENT COMPARABLES 2 4 1 3 ROSEHILL TOWNHOMES

Three Bedroom Townhome Rents

Sorted by Net Rent

Haverford Place 2001 3x2 $1,690.00 $0 $1,690 $1.23

Wooldridge Apartments* 2013 3x3 $1,542.00 $0 $1,542 $1.17

Bridgewater Townhomes* 2017 3x2.5 $1,529.00 $0 $1,529 $1.13

Rabbit Run Apartments 1998 3x3 $1,475.00 $0 $1,475 $0.74

541 Beech St 2007 3X2.5 $1,414.00 $0 $1,414 $0.95

3121 Daly Pl 2010 3x2.5 $1,406.00 $0 $1,406 $1.00

Rosehill Townhomes Pro Forma 1995 3x2 $1,373.00 $0 $1,400 $1.04

The Pines 1996 3x2 $1,347.00 $0 $1,347 $0.67

Waveland Townhomes 2009 3x2.5 $1,301.00 $15 $1,286 $0.87

Sandersville Townhomes 2012 3x2.5 $1,252.00 $15 $1,237 $0.84

Baybrook Townhouses 2006 3x2.5 $1,025.00 $0 $1,025 $0.85

Rosehill Townhomes Average Effective 1995 3x2 $939.00 $0 $1,006 $0.75

Averages $1,366 $15 $1,363 $0.94

Property Built Unit Type Market Utility Adjustment/Month Rent Rent/SF

Year

Rent

Net

541 BEECH STREET LOCAL COMPETITORS 541 BEECH STREET VERSAILLES, KY PROPERTY SUMMARY Year Built 2007 Units 33 Occupancy 100% Common Amenities: n/a Unit Features: Air Conditioning Kitchen Carpet Oven Heating Refrigerator UNIT MIX & RENT SCHEDULE UNIT TYPE RENT SF RENT PER SF 3x2 $1,414 1,496 $0.95

WOOLDRIDGE APARTMENTS LOCAL COMPETITORS 224 CHENEY ROAD, VERSAILLES, KY PROPERTY SUMMARY Year Built 2013 Units 156 Occupancy 98% Common Amenities: 24 Hour Access Walking/Biking Trails Property Manager on Site Unit Features: Air Conditioning Refrigerator Hardwood Floors Washer/Dryer UNIT MIX & RENT SCHEDULE UNIT TYPE RENT SF RENT PER SF 3x3 $1,542 1,317 $1.17

HAVERFORD PLACE LOCAL COMPETITORS 101 HAVERFORD PATH, GEORGETOWN, KY PROPERTY SUMMARY Year Built 2001/2018 Units 160 Occupancy 100% Common Amenities: Business Center Maintenance on site Clubhouse Package Service Fitness Center Playground Furnished Units Available Laundry Facilities Unit Features: Walk-In Closets Dishwasher Cable Ready Microwave Vinyl Floorin Washer/Dryer Hookup Ceiling Fans Disposal UNIT MIX & RENT SCHEDULE UNIT TYPE RENT SF RENT PER SF 3x2 $1,414 1,496 $0.95

3121 DALY PLACE LOCAL COMPETITORS 3121 DALY PLACE, LEXINGTON, KY PROPERTY SUMMARY Year Built 2010 Units 5 Occupancy 100% Common Amenities: Unit Features: In Unit Washer & Dryer Air Conditioning Dishwasher Refrigerator Gargage UNIT MIX & RENT SCHEDULE UNIT TYPE RENT SF RENT PER SF 3x2.5 $1,406 1,406 $1.00

CONDO CONVERSION * 5 1 2 4 3 ROSEHILL TOWNHOMES 197 BERRY AVE 381 CHRUCH STREET 211 BERRY AVE 185 SPRING RUN ST 227A BLACKHAWK CIR 1 2 3 4 ROSEHILL TOWNHOMES 5 * Opportunity for new ownership to convert townhome units into parceled condos and sell-off individually. Condo sales in Ver sailles average $185,000 over the past 24 months.

CONDO SALES COMPARABLES

197 Berry Ave Versailles, KY Versailles, KY 7/8/2022

381 Church St Versailles, KY Versailles, KY 4/20/2022

211 Berry Ave Versailles, KY Versailles, KY 7/2/2021

185 Spring Run St Versailles, KY Versailles, KY 6/1/2022

1 2005 $185,000 $185,000 $128 1440 $1,072 150,008

1 1993 $250,000 $250,000 $138 1816 $1,103 73,030

1 1986 $150,000 $150,000 $104 1440 $1,270 61,248

1 1985 $192,000 $192,000 $126 1520 $1,157 22,578

227 Black Hawk Cir Versailles, KY Versailles, KY 7/2/2021 1 1971 $145,500 $145,500 $135 1080 $1,124 24,192

Address Location COE Units Year Built Price Price/Unit Price/SF Total SF Average Rent Total SF

184,500 Average Price/Unit 126 Average Price/SF 1459 Average SQFT

Address 197 Berry Ave Versailles, KY

Sale Date Jul-22 Built 2005

Address 381 Church St Versailles, KY

Sale Date Apr-22 Built 1993 SF 1,816 $250,000

Address 211 Berry Ave Versailles, KY

Sale Date Jul-21 Built 1986 1,440

Year

Unit SF

Sale Price $150,000 $/SF $104 211 BERRY AVE

Year

Unit

Sale Price

$/SF $138 381 CHURCH ST

Year

Unit SF 1,440 Sale Price $185,000 $/SF $128 197 BERRY AVE CONDO CONVERSION 1 2 3

CONDO SALES COMPARABLES

Address 210 Breckenridge Rd Versailles, KY Year Built 1995 # of Units 46 Avg Sqft 1350 Rentable Sqft 62,100 # of Buildings 12 # of Stories 2 Occupancy 97.8% ROSEHILL TOWNHOMES Address 227 Black Hawk Cir Versailles, KY Sale Date Jul-21 Year Built 1971 Unit SF 1,080 Sale Price $145,500 $/SF $135 227 BLACK HAWK CIR Address 185 Spring Run St Versailles, KY Sale Date Jun-22 Year Built 1985 Unit SF 1,520 Sale Price $192,000 $/SF $126 185 SPRING RUN ST 4 5 S

03SECTION THE FINANCIALS

FINANCIALS

AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS TENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT INCREASE % RENT INCREASE SUMMARY Three Bedroom 46 Units 1,324 SF 60,900 SF $939.33 $0.71 $43,209 $1,097.83 $0.83 SF $50,500 $1,373.91 $1.04 SF $63,200 $113 16.10% Totals / Wtd. Averages 46 Units 1,324 SF 60,900 SF $939.33 $0.71 SF $43,209 $1,097.83 $0.83 SF $50,500 $1,373.91 $1.04 SF $63,200 $119 20.39% UNIX MIX SUMMARY ROSEHILL TOWNHOMES - FINANCIALS UNIT DISTRIBUTION 100% One BedroomStudio UNIT RENTS Pro Forma ProjectionAvg. Effective Three Bedroom Three BedroomTwo Bedroom

UNIX MIX BREAKDOWN

3BR/2BA

12 Units 1,250 SF 15,000 SF $883.33 $0.71 SF $10,600 $950.00 $0.76 SF $11,400 $1,300.00 $1.04 SF $15,600 $113 16.10% 3BR/2BA - With Garage 34 Units 1,350 SF 45,900 SF $959.09 $0.71 SF $32,609 $1,150.00 $0.85 SF $39,100 $1,400.00 $1.04 SF $47,600 $113 16.10% Totals / Wtd. Averages 46 Units 1,324 SF 60,900 SF $939.33 $0.71 SF $43,209 $1,097.83 $0.83 SF $50,500 $1,373.91 $1.04 SF $63,200 $113 16.10%

ROSEHILL TOWNHOMES - FINANCIALS

GROSS

All $606,000 RR 13,174 $758,400 16,487

Gain (Loss) to ($85,200) 14.06% (1,852) ($53,088) 7.00% (1,154)

GROSS RR 11,322

Other

Pet $3,000 T3 0.58% 65 $3,090 0.44% 67

Late Fee $2,500 T3 0.48% 54 $2,575 0.37% 56

Utility $1,740 T3 0.33% 38 $1,792 0.25% 39

Application $1,560 T3 0.30% 34 $1,607 0.23% 35

Total Other $8,800 1.69% 191 $9,064 1.29% 197

GROSS $529,600 11,513 $714,376 15,530

Physical Vacancy ($14,427) T3 2.77% (314) ($35,266) 5.00% (767)

Bad Debt $0 0.00% 0 ($7,053) 1.00% (153)

EFFECTIVE $515,173 83.17% 11,199 $672,057 87.00% 14,610

NON-CONTROLLABLE

Real of Unit of Unit

2020 $28,088 Auditor 5.45% 611 $28,088 4.18% 611

Adjustment for Sale $0 0.00% 0 $51,703 7.69% 1,124

Total Real Estate Taxes $28,088 5.45% 611 $79,791 11.87% 1,735 $13,800 Note 5 2.68% 300 $13,800 2.05% 300 $3,690 T12 0.72% 80 $3,764 0.56% 82 $1,041 T12 0.20% 23 $1,061 0.16% 23

Total $4,730 0.92% 103 $4,825 0.72% 105

Total $46,618 9.05% 1,013 $98,416 14.64% 2,139 $0 0.00% 0 $1,610 0.24% 35 $26,467 T12 5.14% 575 $9,200 1.37% 200 $0 0.00% $1,610 0.24% 35 $26,467 5.14% 575 $12,420 1.85% 270 $49,538 T12 9.62% 1,077 $25,300 3.76% 550

CURRENT (R ent Roll / T12 Income; T12 Expenses) YEAR 1 (S tabilized LTL, Occupancy, and Other Income; Normalized Expenses)

POTENTIAL RENT

of GPR Per Unit

Units at Market Rent

Lease

SCHEDULED RENT $520,800

$705,312 15,333

Income

Fee-Non Refundable

Reimbursement Fee

Fee Income

Income

POTENTIAL INCOME

GROSS INCOME

Estate Taxes %

EGI Per

Taxes Paid

Insurance

Utilities Electric

Water & Sewage

Utilities

Non-Controllable

CONTROLLABLE Contract Services Snow Removal

Landscaping/Grounds

Pest Control

Total Contract Services

Repairs & Maintenance

Marketing & Promotion $0 0.00% 0 $3,450 0.51% 75 On-Site Payroll $19,823 T12 3.85% 431 $39,100 5.82% 850 Payroll Taxes & Benefits $0 0.00% 0 $3,450 0.51% 75 General & Administrative $14,563 T12 2.83% 317 $6,900 1.03% 150 Management Fee $27,600 T12 5.36% 600 $33,603 5.00% 730 Replacement & Reserves $11,730 Note 4 2.28% 255 $11,965 1.78% 260 Total Controllable $149,721 29.06% 3,255 $136,187 20.26% 2,961 TOTAL EXPENSES $196,340 38.11% 4,268 $234,603 34.91% 5,100 NET OPERATING INCOME $318,833 61.89% 6,931 $437,454 65.09% 9,510 INCOME EXPENSE INCOME & EXPENSES ROSEHILL TOWNHOMESFINANCIALS

UNDERWRITING NOTES

% of

$781,152 16,982 $804,587 17,491 ($15,623) 2.00% (340) ($16,092) 2.00% (350) $765,529 16,642 $788,495 17,141

$3,183 0.42% 69 $3,278 0.42% 71 $2,652 0.35% 58 $2,732 0.35% 59 $1,846 0.24% 40 $1,901 0.24% 41 $1,655 0.22% 36 $1,705 0.22% 37 $9,336 1.22% 203 $9,616 1.22% 209 $774,865 16,845 $798,111 17,350 ($38,276) 5.00% (832) ($39,425) 5.00% (857) ($7,655) 1.00% (166) ($7,885) 1.00% (171) $728,933 92.00% 15,846 $750,801 92.00% 16,322

% of

$28,088 3.85% 611 $28,088 3.85% 611 $51,703 7.09% 1,124 $51,703 7.09% 1,124 $79,791 10.95% 1,735 $79,791 10.95% 1,735 $14,076 1.93% 306 $14,358 1.97% 312

$3,839 0.53% 83 $3,916 0.54% 85 $1,083 0.15% 24 $1,104 0.15% 24 $4,922 0.68% 107 $5,020 0.69% 109 $98,788 13.55% 2,148 $99,168 13.60% 2,156

# NOTE

1 Rent Roll Date: March 2021

2 T12 Date Range: February 2020 - January 2021

3 Taxes: information from Hamilton County Auditor

4 Replacement & Reserves: added based on market norm of $255 per unit per year

5 Gross Potential Rent: assumes a normal growth of 3% starting in year 2

6 Loss to Lease: assumes a normal growth of 2% starting in year 2

7 Physical Vacancy: set at 5% which is the norm for this market

8 Bad Debt: set at 2% which is the norm for this property type and market

$1,642 0.23% 36 $1,675 0.23% 36 $9,384 1.29% 204 $9,572 1.31% 208 $1,642 0.23% 36 $1,675 0.23% 36 $12,668 1.74% 275 $12,922 1.77% 281 $25,806 3.54% 561 $26,322 3.61% 572 $3,519 0.48% 77 $3,589 0.49% 78 $39,882 5.47% 867 $40,680 5.58% 884 $3,519 0.48% 77 $3,589 0.49% 78 $7,038 0.97% 153 $7,179 0.98% 156 $36,447 5.00% 792 $37,540 5.00% 792 $12,204 1.67% 265 $12,448 1.71% 271 $141,083 19.35% 3,067 $144,269 19.64% 3,113 $239,871 32.91% 5,215 $243,437 33.40% 5,292 $489,062 67.09% 10,632 $507,364 69.60% 11,030

YEAR 2 YEAR 3

GPR Per Unit

EGI Per Unit

INCOME

GROSS POTENTIAL RENT

All Units at Market Rent $606,000 $758,400 $781,152 $804,587 $828,724 $853,586 $879,193 $905,569 $932,736 $960,718 $989,540

Gain (Loss) to Lease ($85,200) ($53,088) ($15,623) ($16,092) ($16,574) ($17,072) ($17,584) ($18,111) ($18,655) ($19,214) ($19,791)

GROSS SCHEDULED RENT $520,800 $705,312 $765,529 $788,495 $812,150 $836,514 $861,610 $887,458 $914,082 $941,504 $969,749

Total Other Income $8,800 $9,064 $9,336 $9,616 $9,808 $10,004 $10,205 $10,409 $10,617 $10,829 $11,046

GROSS POTENTIAL INCOME $529,600 $714,376 $774,865 $798,111 $821,958 $846,519 $871,814 $897,867 $924,698 $952,333 $980,795

Physical Vacancy ($14,427) ($35,266) ($38,276) ($39,425) ($40,607) ($41,826) ($43,080) ($44,373) ($45,704) ($47,075) ($48,487)

Bad Debt $0 ($7,053) ($7,655) ($7,885) ($8,121) ($8,365) ($8,616) ($8,875) ($9,141) ($9,415) ($9,697)

EFFECTIVE GROSS INCOME $515,173 $672,057 $728,933 $750,801 $773,229 $796,328 $820,118 $844,619 $869,854 $895,843 $922,610

EXPENSES

Real Estate Taxes $28,088 $79,791 $79,791 $79,791 $81,387 $83,014 $84,675 $86,368 $88,095 $89,857 $91,655

Insurance $13,800 $13,800 $14,076 $14,358 $14,645 $14,938 $15,236 $15,541 $15,852 $16,169 $16,492

Utilities $4,730 $4,825 $4,922 $5,020 $5,120 $5,223 $5,327 $5,434 $5,542 $5,653 $5,766

Contract Services $26,467 $12,420 $12,668 $12,922 $13,180 $13,444 $13,713 $13,987 $14,267 $14,552 $14,843

Repairs & Maintenance $49,538 $25,300 $25,806 $26,322 $26,849 $27,386 $27,933 $28,492 $29,062 $29,643 $30,236

Marketing & Promotion $0 $3,450 $3,519 $3,589 $3,661 $3,734 $3,809 $3,885 $3,963 $4,042 $4,123

On-Site Payroll $19,823 $39,100 $39,882 $40,680 $41,493 $42,323 $43,170 $44,033 $44,914 $45,812 $46,728

Payroll Taxes & Benefits $0 $3,450 $3,519 $3,589 $3,661 $3,734 $3,809 $3,885 $3,963 $4,042 $4,123

General & Administrative $14,563 $6,900 $7,038 $7,179 $7,322 $7,469 $7,618 $7,771 $7,926 $8,084 $8,246

Management Fee $27,600 $33,603 $36,447 $37,540 $38,661 $39,816 $41,006 $42,231 $43,493 $44,792 $46,130

Replacement & Reserves $11,730 $11,965 $12,204 $12,448 $12,697 $12,951 $13,210 $13,474 $13,744 $14,018 $14,299

TOTAL EXPENSES $196,340 $234,603 $239,871 $243,437 $248,677 $254,032 $259,506 $265,101 $270,820 $276,666 $282,642

NET OPERATING INCOME $318,833 $437,454 $489,062 $507,364 $524,552 $542,296 $560,612 $579,518 $599,034 $619,177 $639,968

CASH FLOW ROSEHILL TOWNHOMESFINANCIALS CURRENT YEAR 1 YE DEC-2022 YEAR 2 YE DEC-2023 YEAR 3 YE NOV-2024 YEAR 4 YE NOV-2025 YEAR 5 YE NOV-2026 YEAR 6 YE NOV-2027 YEAR 7 YE NOV-2028 YEAR 8 YE NOV-2029 YEAR 9 YE NOV-2030 YEAR 10 YE NOV-2031

INCOME EXPENSE

Income

Gross Potential Rent 25.15% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

(Loss) / Gain to Lease* 7.00% 2.00% 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** 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

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 0.00% 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 6.00% 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

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 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

04SECTION LOCAL MARKET

MARKET

LEXINGTON, KY TOWNHOMES

Lexington, city, coextensive with Fayette county, north-central Kentucky, U.S., the focus of the Bluegrass region and a major centre for horse breeding. Named in 1775 for the Battle of Lexington, Massachusetts, it was chartered by the Virginia legislature in 1782 and was the meeting place (1792) for the first session of the Kentucky legislature following statehood. Lexington in the early 1880s called itself the Athens of the West, boast ing Transylvania College (1780; now Transylvania Univer sity), street lights, a public subscription library, a the atre, and a musical society. In 1817 it had presented the first Beethoven symphony heard in the United States.

EMERGING TECH HUB

Metronet has invested over $100 million in fiberoptic infra structure making Lexington the largest Gigabit city in the nation. The city’s highspeed infrastructure along with its low cost of living provides 1.54 times the purchasing power compared to Silicon Valley attracting talented tech profes sionals and startups alike.

ROSEHILL

Buffalo Trace distillery, based out of Kentucky, has made progress in its $1.2 billion expansion, which includes the construction of an additional still, more barrel warehous es, added fermenters and an expansion of the dry house operation.

Over the past year, a second still house has been built next to the existing 1930s structure. At 40 ft tall, it has doubled production capacity and holds 60,000 gallons.

EMPLOYERS IN THE NEWS

• The University of Kentucky approved a purchase agreement for $6.9 Million to acquire land for construciton of a new outpatient cancer treatment center and advanced ambulatory complex. (Dec 2021)

• New $37.5 million Lexington Distillery District hotel will open in spring 2023 (Dec 2021)

• The University of Kentucky gives the city of Lexington 250 acres in and near the Coldstream Research Campus where office, laboratory, residential and hospitality developments are planned. A new, $15 million hightech building currently under construction will provide office and laboratory space for early-stage, hightech companies to develop and commercialize their products and services. (Oct 2021).

• TMMK to invest $461 million in upgrades at Georgetown Toyota plant. (Oct 2021)

• Buffalo Trace Distillery makes headway on $1.2 billion expansion (Aug 2021)

• Lexington-based Quality Logistics LLC, doing business as Longship, opened its new office in Fayette County, a $4.3 million investment creating 155 well-paying jobs for Kentucky residents (Aug 2021)

BOURBON DISTILLERY BUFFALO TRACE

Population: 323,152

Median

ECONOMY

• Lexington has mix of stable anchors alongside some larger, private employers. Prior to the pandemic, Lexington-Fayette’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 1.2% annually, with roughly 3,100 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 10.3% year-overyear in 2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjusted economic output expanded 6.5%.

• At the same time, the metro recorded a net gain of 3,600 jobs, expanding the employment base 1.4%. As such, Lexington-Fayette’s unemployment rate in August 2021 declined 1.5 points year-overyear to 3.2%, below the national average of 5.3%.

• During the past year, job gains in Lexington-Fay-

DEMOGRAPHICS: STATISTICS

Msa median hhi: $57,405

1 - Year growth: 1.77%

Msa median home value: $173,500

1 - Year growth: 4.83%

ette were most pronounced in the Leisure/Hospi tality Services and Trade/Transportation/Utilities sectors. Despite job losses stemming from the pandemic, Lexington-Fayette’s current employment base now sits roughly 16,200 jobs, or about 6% above the 1st quarter 2008 level, prior to the Great Recession.

Average occupany: 96.4%

Rent growth: 2.7%

age: 35 (.39%)

SUPPLY & DEMAND

SUPPLY

• The level of new apartment completions in Lexington-Fayette were modest recently, as 252 units delivered in the year-ending 3rd quarter 2021. That annual completion volume compares to a low of 24 units and a high of 900 units over the past five years. Annual new supply averaged 357 units, and annual inventory growth averaged 0.6% over the past five years.

• Completions over the past year expanded the local inven tory base 0.6% and were concentrated only in the Downtown Lexington/University submarket.

• Over the next year, inventory growth is set to accelerate with the scheduled addition of 680 units. At the end of 3rd quarter 2021, there were 866 units under construction.

• New supply over the past five years has been concentrated in South Lexington, which received 58% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to deliver in South Lexington and North Lexington.

1 University of Kentucky 2 Toyota 3 Baptist Health 4 Amazon.com 5 Lexmark 6 Hitachi 7 Lockheed Martin 8 Adient 9 Link-Belt 10 Webasto 11 Valvoline 12 Big Ass Fans 13 Tempur- Sealy MARKET DRIVERS 2 4 6 5 1 3 7 8 9 10 11 12 13

OCCUPANCY

• Occupancy in the Lexington-Fayette apartment market has ranged from 93.0% to 97.3% over the past five years, averaging 94.7% during the same five yer period. Over the past year, occupancy gained 1.4 points, with the 3rd quarter 2021 rate landing at 97.3%.

• That occupancy rate ranked #29 among the 65 key South region markets and #85 among the top 150 markets nationally. That tight occupancy was also the highest since RealPage began tracking the market.

• Looking at product classes in Lexington-Fayette, 3rd quarter 2021 occupancy was 97.9% in Class A units, 97.3% in Class B units and 96.4% in Class C units, occupancy in Class C product was generally tightest over the past five years.

ATTRACTIONS

KEENELAND

Lexington, the heart of Kentucky “bluegrass,” has been renowned for two centuries for horse raising and horse racing. Shortly after the track’s completion in 1936, Keeneland Racetrack became the most conspicuous manifestation of this culture. Jack Keene, for whom Keeneland is named, was an extraordinary figure in American racing, and helped revive this industry during the 1930s when it was beginning to suffer. Keene was a descendant of a distinguished Lexington family and was known worldwide as a trainer of thoroughbreds.

After training abroad in Russia and Japan he returned to Kentucky where he began laying out the Keeneland racecourse in 1916. The main track is one and 1/16th miles in circumference and has retained this length since its original inception by Keene. The grounds also include Keene’s mansion and training center. Constructed of limestone that was quarried on Keene’s farm, this build ing was designed with living quarters, a large clubroom and stalls. The two-story center section of the building is flanked on either side by stone arcades leading to three-story wings of the building.

KENTUCKY HORSE PARK

The Kentucky Horse Park is a working horse farm, educational theme park and equine competition facility dedicated to man’s relationship with the horse. Set on more than 1,200 acres in the heart of the Kentucky’s famous Bluegrass region, the park is THE place to get close to horses! Featuring dozens of breeds of horse at work and at play, the park showcases the horse in daily equine presenta tions, horse drawn tours, horseback and pony rides, and an array of horse shows and special events throughout the year.

HIGHER EDUCATION

Founded in 1865, the University of Kentucky is a single campus at the heart of the Blue-grass. More than 100 countries are represented in the student body at UK. UK has over 200 academic programs and last spring, there were 29,182 students enrolled. With more than 12,000 staff and 2,000 faculty, UK is one of the largest employers in the state.

UNIVERSITY OF KENTUCKY

In an extensive study conducted by the Associated Press and then revealed in 2017, the University of Kentucky men’s basketball program was rated as the greatest of its kind ever. Certainly, more current NBA players have emerged from the Wildcats’ ranks than from any other college team, with DeMarcus Cousins, John Wall, and Anthony Davis just some of the University of Kentucky’s former stars. The Wildcats also clinched the NCAA Division I Men’s Basketball Tournament in 2012 and have progressed to the men’s Final Four on four occasions since 2011.

20,500 RUPP AREA FACILITY CAPACITY 20 NCAA CHAMPIONSHIP WINS $19.5M IN TICKETS

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