TLG Portfolio by Jordan.Dickman

TLG PORTFOLIO

EXCLUSIVITY LISTED BY JORDAN DICKMAN

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

NICK ANDREWS

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

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

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

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the table of

COMPE TITIVE SE T

01 page

FINANCIALS

page

CONTENTS

C I N C I N N AT I

page

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TLG PORTFOLIO

SNAPSHOT 3054-3059 JADARO CT COUNTY: HAMILTON YEAR BUILT: 1967 UNITS: 54

3411 BROADWELL AVE COUNTY: HAMILTON YEAR BUILT: 1962 UNITS: 16

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3503-3507 WERK RD COUNTY: HAMILTON YEAR BUILT: 1957 UNITS: 18

2662-2674 MONTANA COUNTY: HAMILTON YEAR BUILT: 1968 UNITS: 66

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01 section

THE COMPETITIVE SET rent matrix - one bedroom - 10 rent matrix - two bedroom - 12 villa hills - 14 lisa ridge - 16

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COMPETITIVE SET

RENT MATRIX - ONE BEDROOM

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RENT MATRIX Property Name Lafeuille Lisa Ridge Villa Hills Aspen Village Subject Pro Forma Eagle Watch Rapid Run Wyoming Crossing Terrace Woods Subject Average Effective

Year Built 1974 1970 1979 1965 1971 1967 1967 1965

# Units 207 216 140 922 154 96 72 96 54 154

Avg SF 859 545 700 562 541 547 550 716 585 541

Avg Rent $827 $705 $700 $677 $677 $646 $646 $618 $545 $469

Avg Rent/SF $0.96 $1.29 $1.00 $1.20 $1.25 $1.18 $1.17 $0.86 $0.93 $0.87

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COMPETITIVE SET

RENT MATRIX - TWO BEDROOM

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RENT MATRIX Property Name Property Lafeuille Subject Pro Forma Villa Hills Aspen Village Wyoming Crossing Eagle Watch Lisa Ridge Rapid Run Terrace Woods Subject Average Effective

Year Built Year Built 1974 1979 1965 1967 1971 1970 1967 1965

# Units # Units 207 154 140 922 96 96 216 72 54 154

Avg SF Avg SF 1124 745 785 807 850 888 705 850 785 745

Avg Rent Avg Rent $978 $825 $800 $782 $772 $768 $755 $752 $735 $726

Avg Rent/SF Avg Rent/SF $0.87 $1.11 $1.02 $0.97 $0.91 $0.86 $1.07 $0.88 $0.94 $0.97

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COMPETITIVE SET

VILLA HILLS

3775 Westmont Drive, Cincinnati, OH

PROPERTY SUMMARY

140

UNITS

1970

YEAR BUILT

UNIT MIX & RENT SCHEDULE UNIT TYPE

RENT

RENT PER SQFT

1x1

$725

700

$1.04

2x1

$825

785

$1.05

AMENITIES UNIT FEATURES laundry facilties controlled access playground

hardwood floors

Comparables Rent Analysis

fireplace 1 Bed

balcony/patio

$0-$1,000

LOW

HIGH HIGH

2 Bed LOW

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COMP

$0-$1,000 HIGH HIGH

SUBJECT

SUBJECT COMP

COMPETITIVE SET

LISA RIDGE

2496 Queen City Ave, Cincinnati, OH

PROPERTY SUMMARY

216

UNITS

1970

YEAR BUILT

UNIT MIX & RENT SCHEDULE UNIT TYPE

RENT

RENT PER SQFT

1x1

$705

545

$1.29

2x1

$800

705

$1.13

AMENITIES UNIT FEATURES pool

heat paid

laundry facility

balconies

parking close to i-75

Comparables Rent Analysis 1 Bed

updated apts available

$0-$1,000

LOW

HIGH HIGH

2 Bed LOW

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COMP

$0-$1,000 HIGH HIGH

SUBJECT

SUBJECT COMP

02 section

THE FINANCIALS unit mix - 20 financial breakdown - 22

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EXECUTIVE SUMMARY

TLG PORTFOLIO UNIX MIX ONE BEDROOM

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

1BR/1BA - Broadwell

16 Units

600 SF

9,600 SF

$504.31

$0.84 SF

$8,069

$699.00

$1.17 SF

$11,184

$715.00

$1.19 SF

$11,440

1BR/1BA - Jadaro

47 Units

500 SF

23,500 SF

$472.03

$0.94 SF

$22,185

$625.00

$1.25 SF

$29,375

$650.00

$1.30 SF

$30,550

1BR/1BA - Werk

17 Units

600 SF

10,200 SF

$429.27

$0.72 SF

$7,298

$699.00

$1.17 SF

$11,883

$715.00

$1.19 SF

$12,155

Totals / Wtd. Averages

80 Units

541 SF

43,300 SF

$469.40

$0.87 SF

$37,552

$655.53

$1.21 SF

$52,442

$676.81

$1.25 SF

$54,145

Units

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

Rent/Unit

Rent/SF

Potential

7 Units

650 SF

4,550 SF

$590.83

$0.91 SF

$4,136

$775.00

$1.19 SF

$5,425

$800.00

$1.23 SF

$5,600

60 Units

750 SF

45,000 SF

$739.25

$0.99 SF

$44,355

$775.00

$1.03 SF

$46,500

$825.00

$1.10 SF

$49,500

2BR/1BA - Large -

6 Units

800 SF

4,800 SF

$778.33

$0.97 SF

$4,670

$800.00

$1.00 SF

$4,800

$850.00

$1.06 SF

$5,100

2BR/1BA - Werk

1 Units

800 SF

$570.00

$0.71 SF

$570

$570.00

$0.71 SF

$570

$850.00

$1.06 SF

$850

74 Units

745 SF

55,150 SF

$726.09

$0.97 SF

$53,731

$774.26

$1.04 SF

$57,295

$825.00

$1.11 SF

$61,050

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

TWO BEDROOM Unit Type 2BR/1BA - Jadaro 2BR/1BA - Montana

Totals / Wtd. Averages

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EXECUTIVE SUMMARY UNIT MIX SUMMARY

PROJECTED

MARKET

AVERAGE EFFECTIVE

Rentable

Total

Units

One Bedroom

80 Units

541 SF

43,300 SF

$469.40

$0.87

$37,552

$655.53

$1.21 SF

$52,442

$676.81

$1.25 SF

$54,145

Two Bedroom

74 Units

745 SF

55,150 SF

$726.09

$0.97

$53,731

$774.26

$1.04 SF

$57,295

$825.00

$1.11 SF

$61,050

Totals / Wtd. Averages

154 Units

639 SF

98,450 SF

$592.75

$0.93 SF

$91,283

$712.58

$1.11 SF

$109,737

$748.02

$1.17 SF

$115,195

Unit Type

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Total Rent Rent/Unit Rent/SF

Potential

Summary

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GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Water & Sewer ReimLaundry Income Late Rent Fees Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME

INCOME

$1,316,844 ($221,450) $1,095,394

RR RR

Year 1

% of GPR

Per Unit

16.82%

8,551 (1,438) 7,113

$1,382,340 ($27,647) $1,354,693

7.31% 0.66% 0.28% 74.94%

134 116 85 353 7,466 (520) (47) (20) 6,879

$21,675 $18,677 $13,728 $57,030 $1,411,723 ($67,735) ($13,547) $0 $1,330,442

5.00% 1.00% 0.00% 92.00%

141 121 89 370 9,167 (440) (88) 0 8,639

Per Unit

2.00%

8,976 (180) 8,797

% of EGI 10.71% 0.00% 10.71% 4.12%

Per Unit 737 0 737 283

$113,458 $0 $113,458 $42,350

% of EGI 8.53% 0.00% 8.53% 3.18%

Per Unit 737 0 737 275

T3 T3 T3

$113,458 $0 $113,458 $43,620

Auditor

$62,743 $183 $49,892 $14,894 $127,712 $284,790

T12 T12 T12 T12

5.92% 0.02% 4.71% 1.41% 12.05% 26.88%

407 1 324 97 829 1,849

$63,998 $186 $50,890 $15,192 $130,266 $286,074

4.81% 0.01% 3.83% 1.14% 9.79% 21.50%

416 1 330 99 846 1,858

$7,438 $6,701 $1,672 $15,812

T12 T12 T12

0.70% 0.63% 0.16% 1.49%

48 44 11 103

$7,700 $11,550 $3,080 $22,330

0.58% 0.87% 0.23% 1.68%

50 75 20 145

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

$80,463 $3,001 $66,707 $3,531 $26,861 $45,723 $382 $39,270 $281,749

T12 T12 T12 T12 T12 T12 T12 Note 1

7.59% 0.28% 6.30% 0.33% 2.54% 4.32% 0.04% 3.71% 26.59%

522 19 433 23 174 297 2 255 1,830

$77,000 $5,390 $107,800 $15,400 $23,100 $66,522 $1,540 $40,055 $359,137

5.79% 0.41% 8.10% 1.16% 1.74% 5.00% 0.12% 3.01% 26.99%

500 35 700 100 150 432 10 260 2,332

TOTAL EXPENSES

$566,539

53.48%

3,679

$645,212

48.50%

4,190

NET OPERATING INCOME

$492,903

46.52%

3,201

$685,230

51.50%

4,450

Non-Controllable Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Water & Sewage Trash Removal Total Utilities Total Non-Controllable Controllable Contract Services Snow Removal Landscaping/Grounds Pest Control Total Contract Services

T12

1.89% 1.62% 1.19% 4.96%

% of GPR

$20,648 $17,792 $13,078 $54,328 $1,149,722 ($80,022) ($7,183) ($3,075) $1,059,442

EXPENSES

FINANCIAL BREAKDOWN

Current

1.60% 1.38% 1.01% 4.21%

Year 2

$1,423,810 ($28,476) $1,395,334

Year 3

% of GPR

Per Unit

2.00%

9,246 (185) 9,061

$1,466,525 ($29,330) $1,437,194 $22,996 $19,815 $14,565 $60,503 $1,497,697 ($71,860) ($14,372) $0 $1,411,466

5.00% 1.00% 0.00% 92.00%

149 129 95 393 9,725 (467) (93) 0 9,165

1.60% 1.38% 1.01% 4.21%

% of GPR

Per Unit

2.00%

9,523 (190) 9,332

$22,326 $19,238 $14,140 $58,741 $1,454,075 ($69,767) ($13,953) $0 $1,370,355

5.00% 1.00% 0.00% 92.00%

145 125 92 381 9,442 (453) (91) 0 8,898

1.60% 1.38% 1.01% 4.21%

$113,458 $0 $113,458 $43,197

% of EGI 8.28% 0.00% 8.28% 3.15%

Per Unit 737 0 737 281

$113,458 $0 $113,458 $44,061

% of EGI 8.28% 0.00% 8.28% 3.22%

Per Unit 737 0 737 286

$65,278 $190 $51,907 $15,496 $132,871 $289,527

4.76% 0.01% 3.79% 1.13% 9.70% 21.13%

424 1 337 101 863 1,880

$66,583 $194 $52,946 $15,806 $135,529 $293,048

4.86% 0.01% 3.86% 1.15% 9.89% 21.38%

432 1 344 103 880 1,903

$7,854 $11,781 $3,142 $22,777

0.57% 0.86% 0.23% 1.66%

51 77 20 148

$8,011 $12,017 $3,204 $23,232

0.58% 0.88% 0.23% 1.70%

52 78 21 151

$78,540 $5,498 $109,956 $15,708 $23,562 $68,518 $1,571 $40,857 $366,985

5.73% 0.40% 8.02% 1.15% 1.72% 5.00% 0.11% 2.98% 26.78%

510 36 714 102 153 445 10 265 2,383

$80,111 $5,608 $112,155 $16,022 $24,033 $70,573 $1,602 $41,674 $375,010

5.85% 0.41% 8.18% 1.17% 1.75% 5.00% 0.12% 3.04% 27.22%

520 36 728 104 156 445 10 271 2,422

$656,512

47.91%

4,263

$668,058

48.75%

4,338

$713,843

52.09%

4,635

$743,407

54.25%

4,827

03 section

CINCINNATI cincinnati overview - 26 world class employment - 28

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OVERVIEW

CINCINNATI, OH 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%.

DEMOGRAPHICS Population: 2,190,000 Median age: 38 (.39%) Msa median hhi: $62,743 1.77% 1 - Year growth Msa median home value: $173,500 4.83% 1 - Year growth

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Total units in msa: 162,761 2020 Deliveries: 2,231 Average occupany: 96.4% Occuany growth: -.03% Average rent in 2020: $1,022 Rent growth: 2.7%

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.

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 five-year 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 population 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%.

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CINCINNATI

WORLD CLASS EMPLOYMENT

(1 of 3)

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.

OPENING SF INVESTMENT JOBS CREATED

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2021 3M $1.5B 2,000+

“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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CINCINNATI

WORLD CLASS EMPLOYMENT 1

(2 of 3)

ICON MUSIC CENTER | 25 Race Street Unique in design and capacity, the $27 million state-of-the-art Andrew J. Brady ICON Music Center is set to open in early 2021 and will be unparalleled to any other music venue in the region. Designed to fill the community’s need for a yearround, flexible music venue, the ICON will feature a general admission main floor and two balconies and will be able to host multiple configurations for indoor concerts up to 4,500 capacity, all year long. With an adjustable capacity, the new venue will allow for intimate, connected experiences between fans, their favorite artists and their peers. The ICON’s maximum capacity is significantly larger than any other indoor performance venue of its type in the region.

27M

state of the art 30

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4,500 capacity

2021 open

THE FOUNDRY | 505 Vine Street 3CDC plans to move ahead with the conversion of the 3.5-story, 200,000-square-foot building that was home to a Macy’s department store. The property will be transformed into the Foundry, a mixeduse building with about 150,000 square feet of office and 35,000 square feet of retail/restaurant space. The total investment for the project is expected to be about $50.8 million.

51M 150,000 35,000 investment

office space

retail space

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CINCINNATI

WORLD CLASS EMPLOYMENT 3

(3 of 3)

INGALLS BUILDING | 6 East 4th Street SREE Hotels LLC, a Charlotte-based hotel owner and management company, purchased the building back in 2018. While the team from SSRG manage the concrete upgrades, SREE has been working on plans to convert the former office building into a 126-room, Courtyard by Marriot hotel. The firm plans to maintain the historical feeling of the lower levels while transforming them into a lounge, bar and a grab-and-go station as well as meeting rooms, public spaces and a library. The rest of the building will be converted into hotel rooms.

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KIMPTON HOTEL | 432 Walnut Street The boutique hotel, which is expected to include a restaurant, fitness center and rooftop bar, would employ 116 and have the capacity to serve 55,000 room nights per year, generating more than $15 million in annual revenue.

116

NEW JOBS

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