Scott Properties OM

SCOTT PROPERTIES REDEFINING MULTIFAMILY INVESTMENTS (513) 878-7704

ADGMultifamily.com

CONFIDENTIALITY & DISCLAIMER The information contained in the following proposal 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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ADG MULTIFAMILY

PRESENTED BY

BRIAN JOHNSTON

Associate 513-878-7704 Brian.Johnston@marcusmillichap.com

JORDAN DICKMAN

First Vice President of Investments Director, National Multi Housing Group 513-878-7735 Jordan.Dickman@marcusmillichap.com

NICK ANDREWS

First Vice President of Investments Director, National Multi Housing Group 513-878-7741 Nick.Andrews@marcusmillichap.com

ADG MULTIFAMILY

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the INDEX

01 02 03

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ADG MULTIFAMILY

the competitive set the persepctive the market

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ADG MULTIFAMILY

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 Associate

Garry Schloemer Investment Associate

JD Schmerge Investment Associate

Brian Johnston

Tim VanWingerden

Investment Associate

Investment Associate

DEBT & STRUCTURED FINANCE

Jim Leonard

Chris Litzler

Senior Managing Director of Capital Markets MMCC

Senior Director 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 Alex Papa Marketing

Marketing

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

ADG MULTIFAMILY

7

SCOTT PROPERTIES

PHOTOS

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ADG MULTIFAMILY

2516 Flanigan

2670 Shaffer

2524 Flanigan

2714 Montana

2718 Montana

2825 WestKnolls

2718 Interrior

2714 Montana Laundry Facilities

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01

the COMPETITIVE SET

12 14 16 18 20 22

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- rent sort westwood - the comparables westwood - rent sort mt. airy - rent comparables mt. airy - investment highlights - case studies

ADG MULTIFAMILY 11

COMPETITIVE SET - WESTWOOD

RENT SORT

One Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Montclair in the Woods

1969

1x1

746

$833.00

$15

$818

$1.10

Robin Woods Apartments

1977

1x1

650

$750.00

$45

$705

$1.08

3034 Bracken Woods Ln.

1974

1x1

625

$750.00

$60

$690

$1.10

Airy View Apartments

1962

1x1

655

$750.00

$60

$690

$1.05

Embassy Flats

1960/2020

1x1

525

$700.00

$30

$670

$1.28

4828 Glenway Ave

1930/2017

1x1

1000

$700.00

$30

$670

$0.67

Candlewood Apartments

1961

1x1

600

$725.00

$60

$665

$1.11

Montana Valley Apartments

1968

1x1

549

$662.00

$15

$647

$1.18

Colonial Square

1956

1x1

695

$705.00

$60

$645

$0.93

Wyoming Crossing

1967

1x1

716

$699.00

$60

$639

$0.89

Eagle Watch Apartments

1971

1x1

547

$699.00

$60

$639

$1.17

3000-3010 Queen City Ave.

1989

1x1

700

$675.00

$60

$615

$0.88

5661-5665 Glenway Ave.

1951

1x1

600

$670.00

$60

$610

$1.02

3507 Boudinot Ave

1938

1x1

750

$650.00

$55

$595

$0.79

Scott Properties

1952

1x1

650

$638.00

$45

$593

$0.91

2723 Queen City Ave

1966

1x1

592

$625.00

$60

$565

$0.95

2749 Queen City Ave

1967

1x1

640

$625.00

$60

$565

$0.88

Coach Arms Apartments

1970

1x1

750

$625.00

$60

$565

$0.75

Scott Properties

1952

1x1

650

$538.00

$45

$493

$0.76

2560 Harrison Ave

1964

1x1

468

$505.00

$60

$445

$0.95

2986 Woodrow Ave

1960

1x1

500

$505.00

$60

$445

$0.89

2992 Woodrow Ave

1960

1x1

500

$505.00

$60

$445

$0.89

Westwood Garden

1963

1x1

400

$504.00

$60

$444

$1.11

Averages

1964

620

$644

$51

$593

$0.97

Two Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Robin Woods Apartments

1977

2x1

825

$980.00

$55

$925

$1.12

Montclair in the Woods

1969

2x1

791

$895.00

$15

$880

$1.11

2814 Harrison Ave.

1971

2x1

780

$900.00

$85

$815

$1.04

Candlewood Apartments

1961

2x1

900

$825.00

$80

$745

$0.83

Montana Ridge*

1968

2x1

750

$800.00

$55

$745

$0.99

2777 Montana Ave.

1964

2x2

928

$700.00

$0

$700

$0.75

Eagle Watch Apartments

1971

2x1.5

888

$779.00

$80

$699

$0.79

Scott Properties

1952

2x1

750

$750.00

$55

$695

$0.93

3531-3533 Werk Rd.

1971

2x1

775

$725.00

$80

$645

$0.83

Lafeuille Apartments

1974

2x1.5

825

$675.00

$40

$635

$0.77

Scott Properties

1952

2x1

750

$650.00

$55

$595

$0.79

3121 Gobel Ave.

1949

2x1

700

$650.00

$80

$570

$0.81

Westwood Garden

1963

2x1

775

$614.00

$80

$534

$0.69

Averages

1968

806

$776

$65

$714

$0.89

Three Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Montclair in the Woods

1969

3x2

1109

$1,095.00

$15

$1,080

$0.97

Montana Valley Apts

1968

3x1.5

1310

$1,090.00

$15

$1,075

$0.82

Robin Woods Apartments

1977

3x1

925

$1,145.00

$70

$1,075

$1.16

Panorma Apartments

1969

3x2

1440

$1,005.00

$105

$900

$0.63

Scott Properties

1952

3x2

1100

$900.00

$70

$830

$0.75

3023 Bracken Woods Ln

1963

3x1

850

$894.00

$70

$824

$0.97

Henry Woods Apartments

1961

3x1

950

$850.00

$70

$780

$0.82

Lafeuille Apartments

1974

3x2

1050

$825.00

$50

$775

$0.74

Renata Apartments

1966

3x1

1300

$855.00

$105

$750

$0.58

Scott Properties

1952

3x2

1100

$800.00

$70

$730

$0.66

Averages

1965

1,113

$946

$64

$882

$0.81

COMPETITIVE SET - WESTWOOD

THE COMPARABLES 1

2723 QUEEN CITY

2

HENRY WOODS APARTMENTS

3

MONTCLAIR IN THE WOODS

2723 Queen City Avenue, Cincinnati, OH Year Built: 1963 Units: 11 Occupancy: 100%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$625 $725

592 735

$1.06 $0.99

COMPARABLES RENT ANALYSIS $0-$1,000

1 Bed LOW

HIGH SUBJECT

Amenities/Features: On-Site Parking, Laundry Facilities, Carpet/Tile Flooring, White Appliances, Wood Cabinets, Laminate Countertops, Balcony

COMP

3080 McHenry Avenue, Cincinnati, OH Year Built: 1961 Units: 34

UNIT MIX

RENT

SF

RENT/SF

3x1

$850

950

$0.89

COMPARABLES RENT ANALYSIS $0-$1,000

1 Bed

Occupancy: 100%

LOW

HIGH SUBJECT

Amenities/Features: On-Site Parking, Laundry Facilities, Grill, Playground, White Appliances, Wood Cabinets, Laminate Countertops, Carpet/Tile Flooring, Balcony

COMP

3482 Hazelwood Avenue, Cincinnati, OH Year Built: 1969 Units: 60 Occupancy: 100%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1 3x2

$833 $895 $1,095

746 791 1109

$1.12 $1.13 $0.99

COMPARABLES RENT ANALYSIS $0-$1,000

1 Bed LOW

HIGH SUBJECT

Amenities/Features: 24-Hour Access, Clubhouse, Courtyard, Laundry Facilities, On-Site Maintenance, On-Site Property Manager, Pool, Dishwasher, Washer/Dryer Hookups

COMP

COMPETITIVE SET - MT. AIRY

RENT SORT

One Bedroom Apartment Rents Sorted by Net Rent Property

Year Built

Unit Type

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

1341 W North Bend Rd.

1965

1x1

600

$675.00

$60

$615

$1.03

Scott Properties

1955

1x1

700

$650.00

$45

$605

$0.86

Cedar Tower

1968

1x1

565

$650.00

$60

$590

$1.04

Vernon Court Apartments

1971

1x1

480

$625.00

$60

$565

$1.18

2672 W North Bend Rd.

1941

1x1

625

$600.00

$45

$555

$0.89

Scott Properties

1955

1x1

700

$550.00

$45

$505

$0.72

2650 W North Bend Rd. Bridges at Belmont

1955 1967

1x1 1x1

750 588

$550.00 $533.00

$60 $45

$490 $488

$0.65 $0.83

1920 Dallas Ave.

1969

1x1

650

$500.00

$60

$440

$0.68

Residence at Cedar Grove

1950

1x1

450

$475.00

$45

$430

$0.96

Averages

1960

611

$581

$53

$528

$0.88

Two Bedroom Apartment Rents Sorted by Net Rent 5890 Shadymist Ln.

1964

2x1

875

$870.00

$55

$815

$0.93

Boleyn Meadows Putter Apartments Vernon Court Apartments Residence at Cedar Grove 1341 W North Bend Rd. Cedar Tower

1965 1989 1971 1950 1965 1968

2x1 2x1.5 2x1 2x1 2x1 2x1

900 900 680 800 850 980

$830.00 $850.00 $805.00 $775.00 $775.00 $775.00

$55 $80 $80 $65 $80 $80

$775 $770 $725 $710 $695 $695

$0.86 $0.86 $1.07 $0.89 $0.82 $0.71

Scott Properties

1955

2x1

800

$750.00

$55

$695

$0.87

2672 W North Bend Rd.

1941

2x1

700

$700.00

$55

$645

$0.92

Scott Properties

1955

2x1

800

$650.00

$55

$595

$0.74

Bridges at Belmont 2650 W North Bend Rd. 1920 Dallas Ave. Averages

1967 1955 1969 1963

1x1 2x1 2x1

860 800 700 819

$630.00 $650.00 $625.00 $745

$55 $80 $80 $67

$575 $570 $545 $678

$0.67 $0.71 $0.78 $0.83

COMPETITIVE SET - MT. AIRY

THE COMPARABLES 1

VERNON COURT APARTMENTS

2

5890 SHADY MIST LN

3

CEDAR TOWERS

1506-1512 West North Bend Rd. Cincinnati, OH Year Built: 1971 Units: 45 Occupancy: 93%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$625 $805

480 680

$1.30 $1.18

COMPARABLES RENT ANALYSIS $0-$1,000

2 Bed LOW

HIGH SUBJECT

Amenities/Features: On-Site Parking, Laundry Facilities, Carpet + Tile Flooring, Laminate Countertops, White Appliances, Shower/Tub Combo

COMP

5890 Shadymist Lane, Cincinnati, OH Year Built: 1964 Units: 28

UNIT MIX

RENT

SF

RENT/SF

2x1

$870

875

$0.99

COMPARABLES RENT ANALYSIS $0-$1,000

2 Bed

Occupancy: 90%

LOW

HIGH SUBJECT

Amenities/Features: On-Site Parking, Laundry Facilities, Carpet + Tile Flooring, Laminate Countertops, White Appliances, Wood Cabinets, Tub Surrounds

COMP

1673 Cedar Avenue, Cincinnati, OH Year Built: 1968 Units: 68 Occupancy: 100%

UNIT MIX

RENT

SF

RENT/SF

1x1 2x1

$650 $775

565 980

$1.15 $0.79

COMPARABLES RENT ANALYSIS $0-$1,000

2 Bed LOW

HIGH SUBJECT

Amenities/Features: On-Site Parking, Laundry Facilities, Carpet + Tile Flooring, Laminate Countertops, White Appliances, Dishwasher, Tub Surround, Walk-In Closet

COMP

INVESTMENT HIGHLIGHTS

SCOTT PROPERTIES

INVESTMENT HIGHLIGHTS Marcus & Millichap is pleased to present the Scott Properties Portfolio, a 6-building, 25-unit portfolio located in Cincinnati, OH. The property is a scattered site portfolio located in the Westwood and Mt. Airy markets of Cincinnati. Four of the six buildings are located in Westwood while the remaining two are located in Mt. Airy. The Westwood properties consist of 1, 2, and 3-bedroom apartments while the Mt. Airy properties consist of 1 and 2-bedroom apartments. The portfolio provides a value-add opportunity through renovations and turns of the units which has been proven and implemented by property owners in its submarket.

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ADG MULTIFAMILY

UNIT UPGRADES The property presents an opportunity to renovate units. Current occupied units will consist of unit turns with renovations consisting of new flooring and new bathroom vanities. Current unoccupied units will be updated with renovations consisting of new cabinets, new countertops, new appliances, new flooring, and new bathroom vanities. It is project that the implementation of $219,000 of CAPEX will provide a 52% return.

MARKET PROVEN RENTS The competitive set in the local markets boasts rents over $175$295 higher than the Scott Properties Portfolio, leaving room to push rents. The competitive set shows an investor an opportunity to acquire an asset with already proven rental upside in the market.

CITY BUILT ON STRONG FUNDAMENTALS There are seven Fortune 500 companies in Cincinnati. Out of the Fortune 500 companies, 400 of them have a presence in the city as well. Cincinnati has three Fortune Global 500 companies. Out of the five Fortune Global 500 companies in the state of Ohio, three of them call Cincinnati home. Cincinnati’s GDP per capita grew at 1.3% higher than the national average of 1.2% Cincinnati’s future growth over the next 10 years is expected to be 29.8%.

CASE STUDIES

VERNON COURT COMMON AMENITIES: onsite parking, laundry facilities UNIT FEATURES: carpet, tile flooring, laminate, countertops, white appliances, shower/tub combo

MONTCLAIR IN THE WOODS

1506-1512 West North Bend Rd. Cincinnati, OH

22

YEAR BUILT

1971

UNITS

45

UNIT MIX

RENT

SF

RENT /SF

1x1

$625

480

$1.30

2x1

$805

680

$1.18

ADG MULTIFAMILY

CASE STUDY - MT. AIRY Unit upgrades equal to $2,000 Per Unit Resulting In A $50 Rental Increase – 30% ROI MORE SPECIFICALLY ONE BEDROOM, ONE BATHROOM Pre Reno – $575 Post Reno – $625

TWO BEDROOM, ONE BATHROOM Pre Reno – $755 Post Reno – $805

UPGRADES

New LVP Flooring , Updated Tub Surround, Updated Bathroom Vanities Vanity Matching Kitchen Cabinets

ADG MULTIFAMILY

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CASE STUDY

MONTCLAIR IN THE WOODS COMMON AMENITIES: 24-Hr access, clubhouse, courtyard, laundry facilities, onsite maintenance, pool UNIT FEATURES: dishwasher, washer/dryer hookups

MONTCLAIR IN THE WOODS

3482 Hazelwood Avenue, Cincinnati, OH

24

YEAR BUILT

1969

UNITS

60

UNIT MIX

RENT

SF

RENT /SF

1x1

$833

746

$1.12

2x1

$895

791

$1.13

3x2

$1,095

1109

$0.99

ADG MULTIFAMILY

CASE STUDY - WESTWOOD Unit Upgrades Equal ~$9,000 Per Unit Resulting in a ~$200 Rental Increase – 26.67% ROI MORE SPECIFICALLY ONE BEDROOM, ONE BATHROOM Pre Reno – $720 Post Reno – $945

TWO BEDROOM, ONE BATHROOM Pre Reno – $795/$865 Post Reno – $995/$1,065

THREE BEDROOM, ONE BATHROOM Pre Reno – $995 Post Reno – $1,195

UPGRADES

Stainless Steel/Black Appliances, Built-In Microwaves, Laminate Countertops, Wood Cabinets, LVP Flooring minus Bedrooms (Carpet) and Bathrooms (Tile), New Bathroom Vanities

ADG MULTIFAMILY

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02

the PERSPECTIVE

28 30

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ADG MULTIFAMILY

- unit mix -value analysis

ADG MULTIFAMILY

27

SCOTT PROPERTIES

THE UNIT MIX PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

SF

SF

One Bedroom

7 Units

657 SF

4,600 SF

$546.43

$0.83

$3,825

$546.43

$0.83 SF

$3,825

$646.43

$0.98 SF

$4,525

Two Bedroom

10 Units

770 SF

7,700 SF

$650.00

$0.84

$6,500

$650.00

$0.84 SF

$6,500

$750.00

$0.97 SF

$7,500

Three Bedroom

8 Units

1,100 SF

8,800 SF

$800.00

$0.73

$6,400

$800.00

$0.73 SF

$6,400

$900.00

$0.82 SF

$7,200

Totals / Wtd. Avgs.

25 Units

844 SF

21,100 SF

$669.00

$0.79 SF

$16,725

$669.00

$0.79 SF

$16,725

$769.00

$0.91 SF

$19,225

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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ADG MULTIFAMILY

One Bedroom

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Avg.

Total Rent

Units

SF

SF

Rent/Unit

Rent/SF

Potential

Rent/Unit Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

1BR/1BA - 2516 Flanigan

2 Units

700 SF

1,400 SF

$550.00

$0.79 SF

$1,100

$550.00 $0.79 SF

$1,100

$650.00

$0.93 SF

$1,300

1BR/1BA - 2524 Flanigan

2 Units

700 SF

1,400 SF

$550.00

$0.79 SF

$1,100

$550.00 $0.79 SF

$1,100

$650.00

$0.93 SF

$1,300

1BR/1BA - 2670 Shaffer

1 Units

500 SF

500 SF

$525.00

$1.05 SF

$525

$525.00 $1.05 SF

$525

$625.00

$1.25 SF

$625

1BR/1BA - 2718 Montana

2 Units

650 SF

1,300 SF

$550.00

$0.85 SF

$1,100

$550.00 $0.85 SF

$1,100

$650.00

$1.00 SF

$1,300

Totals / Wtd. Averages

7 Units

657 SF

4,600 SF

$546.43

$0.83 SF

$3,825

$546.43 $0.83 SF

$3,825

$646.43

$0.98 SF

$4,525

Rentable

Total

tive

Total Rent

Avg.

Total Rent

Units

SF

SF

Rent/Unit

Rent/SF

Potential

Rent/Unit Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

2BR/1BA - 2516 Flanigan

2 Units

800 SF

1,600 SF

$650.00

$0.81 SF

$1,300

$650.00 $0.81 SF

$1,300

$750.00

$0.94 SF

$1,500

2BR/1BA - 2524 Flanigan

2 Units

800 SF

1,600 SF

$650.00

$0.81 SF

$1,300

$650.00 $0.81 SF

$1,300

$750.00

$0.94 SF

$1,500

2BR/1BA - 2714 Montana

4 Units

750 SF

3,000 SF

$650.00

$0.87 SF

$2,600

$650.00 $0.87 SF

$2,600

$750.00

$1.00 SF

$3,000

2BR/1BA - 2718 Montana

2 Units

750 SF

1,500 SF

$650.00

$0.87 SF

$1,300

$650.00 $0.87 SF

$1,300

$750.00

$1.00 SF

$1,500

Totals / Wtd. Averages

10 Units 770 SF

7,700 SF

$650.00

$0.84 SF

$6,500

$650.00 $0.84 SF

$6,500

$750.00

$0.97 SF

$7,500

Unit Type

Two Bedroom

Rentable

Total

Total Rent

Avg. Effective Avg. Effec- Total Effective

Total Rent

Total Rent

Market

Market

Total Market

Three Bedroom

Units

SF

SF

Rent/Unit

3BR/2BA - 2670 Shaffer

4 Units

1,200 SF

4,800 SF

$850.00

$0.71 SF

$3,400

$850.00

$0.71 SF

$3,400

3BR/1BA - 2825 Westknolls Ln

4 Units

1,000 SF

4,000 SF

$750.00

$0.75 SF

$3,000

$750.00

$0.75 SF

Totals / Wtd. Averages

8 Units

1,100 SF

8,800 SF

$800.00

$0.73 SF

$6,400

$800.00

$0.73 SF

Projected Avg. ProjectedTotal Projected

Rent/SF Rent Potential Rent/Unit Rent/SF Rent Potential Rent/Unit

Rent/SF

Rent Potential

$950.00

$0.79 SF

$3,800

$3,000

$850.00

$0.85 SF

$3,400

$6,400

$900.00

$0.82 SF

$7,200

ADG MULTIFAMILY

29

FINANCIAL BREAKDOWN &

INCOME FINANCIAL BREAKDOWN &

GROSS POTENTIAL RENT

All Units at Market Rent Gain (Loss) to Lease

Total Other Income

GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt EFFECTIVE GROSS INCOME

$201,000 $0 $2,295 $201,000 ($77,400) ($6,600) ($4,020) $112,980

RR RR

2019 Taxes Paid

$18,633

Auditor

Year 1

% of GPR

Per Unit

% of GPR

Per Unit

0.00%

8,040 0

$230,700 ($16,149)

7.00%

9,228 (646)

1.62%

121

$2,454

1.58%

129

38.51% 3.28% 2.00% 56.21%

8,040 (3,096) (264) (161) 4,519

$214,551 ($42,910) $0 ($4,291) $167,350

20.00% 0.00% 2.00% 71.00%

8,582 (1,716) 0 (172) 6,694

% of EGI

Per Unit

% of EGI

Per Unit

16.49%

745

$18,633

11.13%

745

16.49%

745

$20,281

12.12%

811

RR

Real Estate Taxes

EXPENSE

VALUE ANALYSIS

Current

Total Real Estate Taxes

$18,633

Insurance

$11,100

T12

9.82%

444

$11,250

6.72%

450

$11,437 $20,193 $2,544 $34,174 $63,907

T12 T12 T12

10.12% 17.87% 2.25% 30.25% 56.56%

457 808 102 1,367 2,556

$8,439 $20,597 $2,595 $31,631 $63,162

5.04% 12.31% 1.55% 18.90% 37.74%

338 824 104 1,265 2,526

$875 $2,500

Note 1 Note 1

0.77% 2.21%

35 100

$875 $2,500

0.52% 1.49%

35 100

3.76%

170

$4,250

2.54%

170

12.17% 0.00% 0.00% 1.59% 5.00% 5.50% 5.64%

550 0 0 72 226 248 255

$13,750 $18,750 $3,750 $1,875 $10,041 $0 $6,503

8.22% 11.20% 2.24% 1.12% 6.00% 0.00% 3.89%

550 750 150 75 402 0 260

Utilities Electric Water & Sewage Trash Removal Total Utilities Total Non-Controllable Controllable Contract Services Snow Removal Landscaping/Grounds Total Contract Services

$4,250

Repairs & Maintenance On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves

$13,750 $0 $0 $1,800 $5,649 $6,210 $6,375

Total Controllable

$38,034

33.66%

1,521

$58,918

35.21%

2,357

TOTAL EXPENSES

$101,941

90.23%

4,078

$122,081

72.95%

4,883

NET OPERATING INCOME

$11,039

9.77%

442

$45,269

27.05%

1,811

Note 1

Note 1 T12

Year 2

Year 3

% of GPR

Per Unit

$237,621 ($11,881)

5.00%

9,505 (475)

% of GPR

Per Unit

2.00%

9,790 (196)

$2,528

1.58%

133

5.00% 0.00% 2.00% 88.00%

9,030 (451) 0 (181) 8,398

$239,855 ($11,993) $0 ($4,797) $223,065

5.00% 0.00% 2.00% 91.00%

9,594 (480) 0 (192) 8,923

% of EGI

Per Unit

$18,633

8.88%

745

$18,633

8.88%

745

$20,281

9.66%

811

$20,281

9.66%

811

$11,475

5.47%

459

$11,705

5.58%

468

$8,608 $21,009 $2,647 $32,264 $64,020

4.10% 10.01% 1.26% 15.37% 30.49%

344 840 106 1,291 2,561

$8,780 $21,429 $2,700 $32,909 $64,895

4.18% 10.21% 1.29% 15.68% 30.91%

351 857 108 1,316 2,596

$893 $2,550

0.43% 1.21%

36 102

$910 $2,601

0.43% 1.24%

36 104

$4,335

2.06%

173

$4,422

2.11%

177

$14,025 $19,125 $3,825 $1,913 $12,596 $0 $6,633

6.68% 9.11% 1.82% 0.91% 6.00% 0.00% 3.16%

561 765 153 77 504 0 265

$14,306 $19,508 $3,902 $1,951 $13,384 $0 $6,765

6.81% 9.29% 1.86% 0.93% 6.00% 0.00% 3.22%

572 780 156 78 504 0 271

$62,451

29.75%

2,498

$64,236

30.22%

2,538

$126,471

60.24%

5,059

$129,131

61.51%

5,165

$83,467

39.76%

3,339

$93,934

44.74%

3,757

$225,740 ($11,287) $0 ($4,515) $209,938

$244,750 ($4,895)

ADG MULTIFAMILY

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03

the MARKET

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ADG MULTIFAMILY

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- local market highlights

36

- world class employment

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LOCAL MARKET HIGHLIGHTS

CINCINNATI, OH Where Southwest Ohio, Northern Kentucky, and Southwest Indiana meet, doers, dreamers, and innovators come together to make it happen. There are many growing companies, including seven Fortune 500 Companies, that already call the Cincinnati region home and provide thousands of jobs to residents. The Cincinnati area provides an attractive business environment for companies due to it’s low cost of doing business while still allowing employees to enjoy a relatively affordable place to live.

Growth in service-oriented industries has also lessened the area’s dependence on the manufacturing and transportation sectors. The Cincinnati Metro is a 15-county region located within portions of Ohio, Kentucky, and Indiana that maintains a population of nearly 2.2 million. The metro is expected to add nearly 79,400 people and approximately 37,800 households through 2022. Half of the nation’s population and 30 major markets are within a one-day drive of the Cincinnati MSA, allowing it to be thought of as a central distribution point. Foodies and food trucks, brewmasters and bourbon, professional sports, tradition and transformation - it’s all happening in Cincinnati.

DEMOGRAPHICS

Population Median Age Median Household Income (2019) # of Houses (2019) # of Employees

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ADG MULTIFAMILY

2,035,800 39.2 $67,613 804,119 641,740

LOCAL HIGHLIGHTS • Home to America’s oldest sports team, the Cincinnati Reds • Biggest Oktoberfest in the country with over 500,000 attendees annually • Cincinnati is the 3rd largest city in Ohio with a population of over 300,000 • Home to Christ Hospital, ranked No. 1 overall in the region by U.S News

RETAIL, NIGHTLIFE & CULTURE

ATTRACTIVE BUSINESS ENVIRONMENT

Nightlife in Cincinnati is highlighted by OTR as well as downtown, at The Banks. Live music is found a local resturants/bars.

There are serveral different atmospheres for people looking to change up there weekend from the same old resturants.

Seven Fortune 500 companies call Cincinnati home.

Companies are drawn to the region’s low cost of doing business, while employees enjoy a relatively affordable place to live. A few of the major area employers include Proctor & Gamble, Kroger Co, University of CIncinnati, TriHealth Inc, GE, and Fifth Third Bank.

In addition, Cincinnati was named one of Esquire Magazine’s “Top 10 Cities that Rock,” and with good reason, as the city has a lively music scene and nationally-acclaimed dining options.

There are many venues throughout Cincinnati, but the most popular include Riverbend Music Center and the future Andrew J Brady ICON Music Center.

Retail options include Kenwood Mall and OTR.

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CINCINNATI

WORLD CLASS EMPLOYMENT In 2017, Amazon announced that is was investing $1.49 billion to create the retail titain’s first air cargo hub for packages. The company is clearing about 920 acres at The Cincinnati/Northern Kentucky International Airport (CVG).

Judge-executive Gary Moore says that it will not only be the largest building in Boone County, it will also be the largest in this party of the country. Currently, CVG is the largest cargo hub airport in the nation without the new Amazon Hub. The project broke ground in May 2019 and will be completed in 2021.

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OPENING SF INVESTMENT

2021 3M $1.5B

Jobs Created

2,000+

ADG MULTIFAMILY

“We’re going to move Prime from twoday to one-day, and this hub is a big part of that.”

Jeff Bezos, Founder & CEO, Amazon

ANDREW J BRADY ICON MUSIC CENTER

Unique in design and capacity, the $27 million sate-of-the-art Andrew J. Brady ICON Music Center is set to open fall 2021 and will be unparalleled to any other music venue in the region. It is being designed to fill Cincinnati’s need for a year-round, flexible music venue. The ICON’s maximum capacity is much larger than any other indoor venue of its kind in the area. MEMI is developing the venue to feature both indoor and outdoor stages and seating. The indoor venue has a capcity of 4,500 and the outdoor area has a capacity of 8,000.

OPENING Maximum Capacity Investment Events Hosted Annually

2021 12,500 $27M 170

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www.adgmultifamily.com 513-878-7795