SHILOH COURT APARTMENTS
2023 OFFERING MEMORANDUM 1570 SHILOH SPRINGS RD, DAYTON, OHIO
GLOBAL REACH, LOCAL EXPERTISE
$86.3B VA L U E O F R E C E N T LY C L O S E D T R A N S A C T I O N S
12,272 CLOSED SALES IN MOST RECENT YEAR
DAY TO N
$12.8B
C I N C I N N AT I
T O TA L VA L U E O F R E C E N T L I S T I N G S
2,143
LOUISVILLE
LEXINGTON
CLOSED FINANCINGS IN MOST RECENT YEARS
CALABASAS, CALIFORNIA | HQ
80+ | OFFICES
2,500 | EMPLOYEES
YOUR TEAM
C O R P O R AT E S U P P O R T
J O RDAN DICK M A N F I R S T VIC E PR ES I D E N T S D I RE CT O R, N M HG
L I Z P OP P MI DW E S T OP E R A TI ON S MA NAGER
NIC K ANDREWS F I R S T VIC E PR ES I D E N T S D I RE CT O R, N M HG
J OS H C A R U A N A V I C E P R E S I DE N T R E G I ON A L MA N A G E R I N DI A N A P OL I S | C I N C I N N A TI | L O UISVIL L E | S T L O UIS | K ANS AS CITY
AUS T IN SUM S ENIO R INVESTME N T A SSO CI A T E AUS T IN Hall INVESTM ENT ASSO CI A T E AL D E N SIMM S INVESTM ENT ASSO CI A T E
J OH N SE B R E E S E N I OR V I C E P R E S I DE N T N A T I ON A L DI R E C T OR N A T I ON A L MULTI H OUS I N G GR O UP MI C H A E L G L A S S S E N I OR V I C E P R E S I DE N T MI DW E S T DI V I S I ON MA N A GER N A T I ON A L DI R E C T OR , MA N UFACTUR ED HO M E CO M M UNITIES GR O UP
BROKER SUPPORT S AM PET ROSino VA L UATIO N & R E S E A RCH
B R I TTA N Y C A MP B E L L- KOC H DI R E C TOR OF OP E R A T I ON S
B RETT MART IN INT ER NAL AC CO UN TA N T
A L E X PA PA MA R K E TI N G C OOR DI N A TOR
r e l at i v e l o c at i o n
SCAN FOR Q U A R T E R LY D ATA
D AY T O N M A R K E T •
Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.4% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually, with roughly 3,700 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 10.0% year-over-year in 2nd quarter.
•
shiloh court a pa rt m e n t s
In the year-ending 2nd quarter 2023, the metro’s inflation- adjusted economic output expanded 2.8%.
•
At the same time, the metro recorded a net gain of 8,900 jobs, expanding the employment base 2.3%.
•
As such, Dayton’s unemployment rate in May 2023 declined 0.1 point year-over-year to 3.4%, matching the national average of 3.4%.
•
19 min drive (8.8 mi)
During the past year, job gains in Dayton were most pronounced in the Education/Health Services sector followed by Leisure/Hospitality Services.
downtown d ay t o n
NOTEWORTHY MENTIONS -140 UNDERGRAD PROGRAMS
WRIGHT STATE
-20,000 JOBS -13,000 STUDENTS -80 UNDERGRAD PROGRAMS
UNIVERSITY OF DAYTON
-9,000 STUDENTS -$70M ECONOMIC IMPACT - 28,000 JOBS
WRIGHT PAT AIR FORCE BASE
- $4.3B ECONOMIC IMPACT - LARGEST SINGLE SIT EMPLOYER IN OH
INVESTMENT HIGHLIGHTS Marcus & Millichap is pleased to present Shiloh Court Apartments, a 48-unit apartment complex located in the Northwest submarket of Trotwood, OH. The community consists of forty-eight two-bedroom, one-bathroom apartments. The asset is currently 85% occupied and has 45,600 rentable sqft. on a total of 11.56 acres. Shiloh Court Apartments offers incoming investors the opportunity to continue to implement a utility billback program, complete a renovation value add plan, and capitalize on the positive characteristics of the property. Utility Billback Opportunity – Only three current tenants are paying a utility RUB. It is common in Trotwood to have a $50 RUB for two-bedroom units for water/sewer and trash. Implementing this with all residences would result in an added $27,360 income each year after factoring in a 5% vacancy. Renovation Value Add Plan – Many of Shiloh Court Apartments’ immediate competitors have renovated their two-bedroom units to push rents. This includes Garden Woods ($1,200), Bloomfield ($1,174), and Greenglen ($992). The renovations have typically included LVP flooring, updated appliances, granite countertops, new cabinets and tile bathrooms. Positive Property Characteristics – Shiloh Court Apartments benefits from having forty-eight identical two-bedroom, one-bathroom units. The two-bedroom units continue to be the most desirable units in the area for renters. Additionally, each unit has a washer/dryer hookup, which helps to attract tenants.
SHILOH COURT APARTMENTS
snapshots
rent sort TWO bedroom
Stoneridge $850
Bloomfield $1,174 Salem Woods $999
Garden Woods $1,200 Fox Run $1,149
Westbrooke Village $875 Belle Meadows Suites $985
Trotwood Villas $850 Broadmoor $950
Shiloh Court Apartments $753
Arbors North $975
Year Built 1973 1972 1998 1972 1983 1987 1966 1968 1972 1974 1987 1970 1972
# Beds 144 160 144 233 78 160 54 112 48 312 150 32 48
Avg SF 1100 1000 909 950 864 920 950 805 950 800 878 950 950
Avg Rent $1,200 $1,174 $1,149 $999 $992 $985 $975 $950 $900 $875 $850 $850 $753
Avg Rent/SF $1.09 $1.17 $1.26 $1.05 $1.15 $1.07 $1.03 $1.18 $0.95 $1.09 $0.97 $0.89 $0.79
SECTION 2 - LOCAL COMPETITORS
Two Bedroom Property Garden Woods Bloomfield Fox Run Salem Woods Greenglen Belle Meadows Suites Arbors North Broadmoor Subject Pro Forma Westbrooke Village Stoneridge Trotwood Villas Subject Average Effective
SECTION 2 - LOCAL COMPETITORS 5291 WOOD CREEK ROAD
salem woods UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom
UNITS 56
SQFT 680
233 1972 91.4% RENT RENT/SF $859 $1.26
Two Bedroom
160
950
$999
$1.05
Three Bedroom
17
1059
$1,387
$1.31
4973 BLOOMFIELD DRIVE
bloomfield a pa rt m e n t s UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom
UNITS 40
SQFT 850
160 1972 83.8% RENT RENT/SF $956 $1.12
Two Bedroom
104
1000
$1,174
$1.17
Three Bedroom
16
1300
$1,324
$1.02
SECTION 2 - LOCAL COMPETITORS 100-116 TURNER RD
arbors North UNITS YEAR BUILT OCCUPANCY UNIT MIX Two Bedroom
UNITS 42
SQFT 950
48 1966 96.3% RENT RENT/SF $975 $1.03
4 00 BURMAN AVE
broadmoor a pa rt m e n t s UNITS YEAR BUILT OCCUPANCY UNIT MIX One Bedroom
UNITS 32
SQFT 675
112 1968 98.2% RENT RENT/SF $860 $1.27
Two Bedroom
80
805
$950
$1.18
SHILOH COURT APARTMENTS
UNIT MIX BREAKDOWN AV E R A G E E F F E C T I V E
MARKET
PROJECTED
UNIT TYPE
NO. OF UNITS
R E N TA B L E S F
T O TA L S F
RENT/UNIT
RENT/SF
T O TA L R E N T POTENTIAL
Two Bedroom 2BR/1BA Totals / Wtd. Averages
48 Units 48 Units
950 SF 950 SF
45,600 SF 45,600 SF
$753.05 $753.05
$0.79 $0.79 SF
$36,146 $36,146
$850.00 $850.00
$0.89 SF $0.89 SF
$40,800 $40,800
$900.00 $900.00
$0.95 SF $0.95 SF
$43,200 $43,200
Summary Two Bedroom Totals / Wtd. Averages
48 Units 48 Units
950 SF 950 SF
45,600 SF 45,600 SF
$753.05 $753.05
$0.79 $0.79 SF
$36,146 $36,146
$850.00 $850.00
$0.89 SF $0.89 SF
$40,800 $40,800
$900.00 $900.00
$0.95 SF $0.95 SF
$43,200 $43,200
RENT/UNIT
RENT/SF
T O TA L R E N T POTENTIAL
RENT/UNIT
RENT/SF
T O TA L R E N T POTENTIAL
SECTION 3 - FINANCIALS
UNIT RENTS
UNIT DISTRIBUTION
INCOME EXPENSE
SHILOH COURT APARTMENTS
INCOME & EXPENSES
CURRENT RENT ROLL: AS OF OCTOBER 9, 2023 INCOME AND EXPENSES: ASSUMED GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2022 Taxes Paid Total Real Estate Taxes Insurance Utilities Electric Water & Sewage Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion Labor General & Administrative Management Fee
Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME
$489,600 RR ($47,700) $441,900 RR $1,500 $443,400 ($71,400) RR $0 $372,000
% of GPR
16.16% 0.00% 74.10%
Per Unit 10,200 (994) 9,206 31 9,238 (1,488) 0 7,750
$26,530 Auditor $26,530 $19,200 Note 2
% of EGI 7.13% 7.13% 5.16%
Per Unit 553 553 400
$16,171 T12 $23,370 T12 $13,781 T12 $53,322 $99,052
4.35% 6.28% 3.70% 14.33% 26.63%
337 487 287 1,111 2,064
$0 $6,405 $6,152 $12,557 $28,800 $1,904 $15,333 $5,440
0.00% 1.72% 1.65% 3.38% 7.74% 0.51% 4.12% 1.46%
0 133 128 262 600 40 319 113
T12 T12 Note 2 T12
T12 T12
9.74% 0.34%
$34,120 T12
9.17%
711
$12,240 Note 1 $110,394 $209,446 $162,554
3.29% 29.68% 56.30% 43.70%
255 2,300 4,363 3,387
YEAR 1 % of GPR
YEAR 2
5.00% 1.00% 92.00%
Per Unit 10,800 (216) 10,584 300 10,884 (529) (106) 10,249
$26,530 $26,530 $19,200
5.39% 5.39% 3.90%
% of EGI 553 553 400
$26,530 $26,530 $19,584
% of EGI 5.11% 5.11% 3.77%
$16,494 $23,838 $14,056 $54,388 $100,118
3.35% 4.85% 2.86% 11.06% 20.35%
344 497 293 1,133 2,086
$16,824 $24,314 $14,338 $55,476 $101,590
3.24% 4.68% 2.76% 10.68% 19.57%
$1,680 $8,400 $1,680 $11,760 $28,800 $3,600 $43,200 $4,800
0.34% 1.71% 0.34% 2.39% 5.85% 0.73% 8.78% 0.98%
35 175 35 245 600 75 900 100
$1,714 $8,568 $1,714 $11,995 $29,376 $3,672 $44,064 $4,896
0.33% 1.65% 0.33% 2.31% 5.66% 0.71% 8.49% 0.94%
$518,400 ($10,368) $508,032 $14,400 $522,432 ($25,402) ($5,080) $491,950
2.00% 2.83%
% of GPR
YEAR 3
$533,952 ($10,679) $523,273 $27,360 $550,633 ($26,164) ($5,233) $519,237
5.00% 1.00% 92.00%
Per Unit 11,124 (222) 10,902 570 11,472 (545) (109) 10,817
Per Unit 553 553 408
2.00% 5.23%
#
% of GPR
1
5.00% 1.00% 92.00%
Per Unit 11,458 (229) 11,229 587 11,816 (561) (112) 11,142
$26,530 $26,530 $19,976
5.11% 5.11% 3.85%
% of EGI 553 553 416
350 507 299 1,156 2,116
$17,160 $24,801 $14,624 $56,586 $103,091
3.30% 4.78% 2.82% 10.90% 19.85%
358 517 305 1,179 2,148
36 179 36 250 612 77 918 102
$1,748 $8,739 $1,748 $12,235 $29,964 $3,745 $44,945 $4,994
0.34% 1.68% 0.34% 2.36% 5.77% 0.72% 8.66% 0.96%
36 182 36 255 624 78 936 104
$549,971 ($10,999) $538,971 $28,181 $567,152 ($26,949) ($5,390) $534,814
2.00% 5.23%
$29,517
6.00%
615
$31,154
6.00%
649
$32,089
6.00%
649
$12,485 $134,162 $234,280 $257,670
2.54% 27.27% 47.62% 52.38%
260 2,795 4,881 5,368
$12,734 $137,892 $239,482 $279,755
2.45% 26.56% 46.12% 53.88%
265 2,873 4,989 5,828
$12,989 $140,961 $244,052 $290,761
2.50% 26.97% 47.00% 56.00%
271 2,917 5,084 6,058
UNDERWRITING NOTES
NOTE Replacement & Reserves: added based on market norm of $255 per unit per year
2 Added based on market norms 3 Utility Income: $50 RUBS implemented 'Year 1' with 50% of tenants.
INCOME EXPENSE
SHILOH COURT APARTMENTS
CASH FLOW
CURRENT
YR 1
YR 2
YR 3
YR 4
YR 5
YR 6
YR 7
YE OCT-2024
YE OCT-2025
YE OCT-2026
YE OCT-2027
YE OCT-2028
GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT TOTAL OTHER INCOME GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME
$489,600 ($47,700) $441,900 $1,500 $443,400 ($71,400) $0 $372,000
$518,400 ($10,368) $508,032 $14,400 $522,432 ($25,402) ($5,080) $491,950
$533,952 ($10,679) $523,273 $27,360 $550,633 ($26,164) ($5,233) $519,237
$549,971 ($10,999) $538,971 $28,181 $567,152 ($26,949) ($5,390) $534,814
$566,470 ($11,329) $555,140 $28,744 $583,885 ($27,757) ($5,551) $550,576
$583,464 ($11,669) $571,794 $29,319 $601,114 ($28,590) ($5,718) $566,806
$600,968 ($12,019) $588,948 $29,906 $618,854 ($29,447) ($5,889) $583,517
$618,997 ($12,380) $606,617 $30,504 $637,121 ($30,331) ($6,066) $600,724
Real Estate Taxes Insurance Utilities Contract Services Repairs & Maintenance Marketing & Promotion Labor General & Administrative Management Fee Replacement & Reserves TOTAL EXPENSES
$26,530 $19,200 $53,322 $12,557 $28,800 $1,904 $15,333 $5,440 $34,120 $12,240 $209,446
$26,530 $19,200 $54,388 $11,760 $28,800 $3,600 $43,200 $4,800 $29,517 $12,485 $234,280
$26,530 $19,584 $55,476 $11,995 $29,376 $3,672 $44,064 $4,896 $31,154 $12,734 $239,482
$26,530 $19,976 $56,586 $12,235 $29,964 $3,745 $44,945 $4,994 $32,089 $12,989 $244,052
$27,060 $20,375 $57,717 $12,480 $30,563 $3,820 $45,844 $5,094 $33,035 $13,249 $249,237
$27,602 $20,783 $58,872 $12,729 $31,174 $3,897 $46,761 $5,196 $34,008 $13,514 $254,535
$28,154 $21,198 $60,049 $12,984 $31,798 $3,975 $47,696 $5,300 $35,011 $13,784 $259,948
$28,717 $21,622 $61,250 $13,244 $32,433 $4,054 $48,650 $5,406 $36,043 $14,060 $265,479
NET OPERATING INCOME
$162,554
$257,670
$279,755
$290,761
$301,339
$312,271
$323,569
$335,244
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1
YR 2
YR 3
YR 4
YR 5
5.88% 2.00% 3.00%
3.00% 2.00% 3.00%
3.00% 2.00% 3.00%
3.00% 2.00% 3.00%
3.00% 2.00% 3.00%
6.00%
2.00% 6.00%
2.00% 6.00%
2.00% 6.00%
2.00% 6.00%
INCOME Gross Potential Rent (Loss) / Gain to Lease* Other Income EXPENSES Expenses Management Fee**
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance Total Economic Loss
YR 1
YR 2
YR 3
YR 4
YR 5
5.00% 0.00% 1.00% 0.00% 6.00%
5.00% 0.00% 1.00% 0.00% 6.00%
5.00% 0.00% 1.00% 0.00% 6.00%
5.00% 0.00% 1.00% 0.00% 6.00%
5.00% 0.00% 1.00% 0.00% 6.00%
R E L AT I V E L O C AT I O N
SCAN FOR Q U A R T E R LY D ATA
D AY T O N M A R K E T •
Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.4% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually, with roughly 3,700 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 10.0% year-over-year in 2nd quarter.
•
shiloh court a pa rt m e n t s
In the year-ending 2nd quarter 2023, the metro’s inflation- adjusted economic output expanded 2.8%.
•
At the same time, the metro recorded a net gain of 8,900 jobs, expanding the employment base 2.3%.
•
As such, Dayton’s unemployment rate in May 2023 declined 0.1 point year-over-year to 3.4%, matching the national average of 3.4%.
•
19 min drive (8.8 mi)
During the past year, job gains in Dayton were most pronounced in the Education/Health Services sector followed by Leisure/Hospitality Services.
downtown d ay t o n
NOTEWORTHY MENTIONS -140 UNDERGRAD PROGRAMS
WRIGHT STATE
-20,000 JOBS -13,000 STUDENTS -80 UNDERGRAD PROGRAMS
UNIVERSITY OF DAYTON
-9,000 STUDENTS -$70M ECONOMIC IMPACT - 28,000 JOBS
WRIGHT PAT AIR FORCE BASE
- $4.3B ECONOMIC IMPACT - LARGEST SINGLE SIT EMPLOYER IN OH
q u a r t e r ly R E P O R T OCCUPANCY 1| Over the past year, occupancy lost 1.7 points, with the 2nd quarter 2023 rate landing at 95.7%. 2| Looking at product classes in Dayton, 2nd quarter 2023 occupancy registered at 94.7% in Class A units, 96.5% in Class B units and 96.0% in Class C units. 3|Among submarkets, 2nd quarter 2023 occupancy was strongest in Greene County and Central Dayton/Kettering, both above 96%. The weakest readings were seen in Northwest Dayton (93.3%) and North Dayton/
SUPPLY 1| New apartment completions in Dayton were modest recently, as 595 units delivered in the year- ending 2nd quarter 2023. Completions over the past year expanded the local inventory base 1.1%. 2| In the past year, supply was greatest in Central Dayton/Kettering and South Montgomery County. 3| At the end of 2nd quarter 2023, there were 1,188 units under construction with 858 of those units scheduled to be completed in the next four quarters. 4| Scheduled deliveries in the coming year are expected to be concentrated in Central Dayton/Kettering.
428
1,043
units completed in past 12 months
units currently in progress Q UA R T E R 2
JANUARY
FEBRUARY
MARCH
APRIL
M AY
JUNE
SHILOH COURT APARTMENTS