TROY PORTFOLLIO
Jordan Dickman
First Vice President Investments
Cincinnati Office
D. 513.878.7735 jordan.dickman@marcusmillichap.com
Nick 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
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.
LEAD AGENTS SUBMITTED BY:
30 | BUNKER FINANCIALS 01 02 03 04 05 38 | HENLEY FINANCIALS 46 | LOCAL MARKET 18 | LOCAL COMPETITORS 06 | THE INVESTMENT CONTENTS BROKER CAPABILITIES & OPINION OF VALUE
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
DEBT & STRUCTURED FINANCE
OPERATIONS
UNRIVALED SUCCESS IN THE MIDWEST
Brittany Campbell-Koch Director of Operations Sidney Bills Office Administrator
Liz Popp Midwest Operations Manager
John Sebree Senior Vice President National Director National Multi Housing Group
Midwest
Michael
Glass Senior Vice President
Division Manager National Director, Manufactured 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
JD Schmerge
Investment Associate
Brian Johnston
Investment Associate INVESTMENT ADVISORS
Tim VanWingerden
Investment Associate
Chris Litzler Senior Director of Organization MMCC
Sam Petrosino Financial & Research Analyst
VALUATION & RESEARCH
Client
CLIENT
Skyler Wilson
Relations Manager
RELATIONS
Alex Papa Marketing Coordinator Kristin Smith Marketing
MARKETING
01 SECTION TROY PORTFOLIO
PORTFOLIO
HENLEY PROPERTY SNAPSHOT ADDRESS 1415 & 1425 Henley Rd. YEAR BUILT 1967 UNIT COUNT 16-units TOTAL RENTABLE AREA 11,600 NUMBER OF BUILDINGS 2 NUMBER OF STORIES 3 FOUNDATION Poured Concrete FRAMING Wood ROOF Pitched Shingle WIRING Copper EXTERIOR Brick HVAC Two-Bed Units: Individual Forced Air Furnaces (7 of 8 replaced since 2017) Studio Units: Electric Baseboard Heat, Through Wall A/C ELECTRIC Resident GAS Owner WATER Owner TRASH Owner SEWER Owner
Henley CapEx Since 2017: -Updated Landscaping -Painted Exterior (every surface aside from brick) -LED Exterior Lighting -Replaced Back Deck and Steps -New LVP Flooring in Rear Entry Ways -New Common Area Paint & Lighting Two-Bedroom Layouts Received the Below Upgrades: -Paint Throughout -Painted Kitchen Cabinets (2 units received new cabinets) -Faux Granite or Solid Surface Countertops -New Sink, Black Range & Black Fridge -LVP Floor in Bathroom & Refinished Hardwood -Two Units Received LVP Floor Throughout except Bedrooms -Two Units Received Washer & Dryer -Bathroom Tub Surrounds -New Bathroom Vanity -New Toilet All Studio Units Received the Below Upgrades: -Paint Throughout -Painted Kitchen Cabinets or Replaced -Faux Granite Countertops -New Sink, Black Range & Black Fridge -LVP Floor Throughout -Bathroom Tub Surrounds -New Bathroom Vanity -New Toilet -New Plumbing Fixtures -New Ceiling Fan & Lighting Fixture *GREEN ARE THE RENOVATED UNITS
CAPEX
HENLEY
HENLEY
TROY
1415 & 1425
PORTFOLIO
& 1425 HENLEY
TROY
1415
PORTFOLIO
BUNKER ADDRESS 1200-1220 Bunker Hill YEAR BUILT 1988 UNIT COUNT 20-units all 2bd 1.5 townhomes TOTAL RENTABLE AREA 18,000 NUMBER OF BUILDINGS 5 NUMBER OF STORIES 2 FOUNDATION Poured Concrete FRAMING Wood ROOF Pitched Shingle WIRING Copper EXTERIOR Brick ELECTRIC Resident GAS Resident WATER Resident TRASH Resident PROPERTY SNAPSHOT
BUNKER
CAPEX/UNIT
Hill Unit Features: All units are identical 2 bedroom, 1.5 bath townhomes Private entry for each unit 2 off street parking spaces per unit Large, eat-in kitchens WD hookups Large bedrooms All new windows
New windows, Light fixtures, fans, paint, medicine cabinets and toilets
FEATURES Bunker
CAPEX since 2021:
New flooring completed in a few units 3 of the 5 roofs recently replaced and the other 2 will need to be replaced in the next ~5 years
BUNKER TROY PORTFOLIO
02
SECTION LOCAL COMPETITORS
COMPETITORS
LOCAL COMPETITORS 1 1480 WAYNE STREET 2 1585 WAYNE STREET 3 1580 CHESHIRE ROAD 4 PARKSIDE LOFTS 5 1321 RUDY DRIVE 6 THE FLATS OF TROY RENT COMPARABLES * 2 4 1 3 1415 HENLEY ROAD
* 1200 BUNKER HILL 5 6
UNITS 4 YEAR BUILT 1994 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Two Bedroom 4 950 $1,050 $1.11 Apartment Interior Amenities LVP Flooring Updated Appliances Patio Detached Garage 1480 WAYNE STREET
Apartment Interior Amenities Large Eat in Kitchen Separate Laundry room 1 car attached garage Utilities Responsibility Property Paid Trash Resident Pays Electric Resident Pays Water Resident Pays Gas 1585 WAYNE STREET UNITS 4 YEAR BUILT 1995 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Two Bedroom 4 1215 $1,075 $0.88
UNITS 47 YEAR BUILT 1995 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Two Bedroom 47 1000 $1,125 $1.13 Apartment Interior Amenities Washer/Dryer In All Units Above Standard Ceiling Height Microwave Ovens In All Units High Speed Internet Access Common Area Amenities Controlled Access Fitness Center Business Center Clubhouse Covered Parking Is Available For An Additional $90 Per Month Utilities Responsibility Resident Pays Electricity Property Pays Gas Resident Pays Sewer Resident Pays Trash Removal Resident Pays Water 1580 CHESHIRE ROAD
Apartment Interior Amenities Washer and Dryer in unit Den area Open Floor Plan Central heat and air Utilities Responsibility Property Paid Water Property Paid Sewer Property Paid Trash Resident Pays Water Resident Pays Gas UNITS 24 YEAR BUILT 1990 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Two Bedroom 24 1000 $975 $0.98 PARKSIDE LOFTS
UNITS 4 YEAR BUILT 1972 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF Three Bedroom 4 1141 $1,295 $0.88 Apartment Interior Amenities Attached one Car Garage Updated kitchen and bathrooms Utilities Responsibility Resident Pays Electric Resident Pay Gas Resident Pays Trash Resident Pays Water Resident Pays Sewer 1321 RUDY DRIVE
Apartment Interior Amenities Private Balcony/Patio In Select Units Detached Garages Are Available Washer/Dryer Hookups Available In Two Bedroom Units Utilities Responsibility
Pays Electricity Property Pays Sewer Property Pays Trash Removal Property Pays Water UNITS 56 YEAR BUILT 1980 OCCUPANCY 98.2% UNIT MIX # OF UNITS SQFT RENT RENT/SF Studio 8 300 $600 $2.00 One Bedroom 36 575 $750 $1.30 Two Bedroom 12 864 $950 $1.10 FLATS OF TROY
Resident
LOCAL COMPETITORS - STUDIO
STUDIO Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Flats of Troy 1980 56 300 $600 $2.00 Subject Pro Forma 1967 & 1988 36 500 $600 $1.20 Terrace Ridge Apartments 1945 167 280 $547 $1.95 Subject Average Effective 1967 & 1988 46 500 $527 $1.05
LOCAL COMPETITORS - TW0 BEDROOM
Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF 1580 Cheshire Rd 1995 47 1000 $1,125 $1.13 1585 Wayne St 1995 4 1215 $1,075 $0.88 1480 Wayne St 1994 4 950 $1,050 $1.11 Subject Pro Forma 1967 & 1988 36 986 $999 $1.01 Parkside Lofts Year Built 24 1000 $975 $0.98 Flats of Troy 1980 56 864 $950 $1.10 Oakmont Creek Apartments 1990 29 1000 $925 $0.93 Subject Average Effective 1967 & 1988 46 986 $716 $0.73
03 SECTION BUNKER
BUNKER FINANCIALS
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 Two Bedroom 20 Units 1,000 SF 20,000 SF $759.00 $0.76 $15,180 $950.00 $0.95 SF $19,000 $1,100.00 $1.10 SF $22,000 Totals / Wtd. Averages 20 Units 1,000 SF 20,000 SF $759.00 $0.76 SF $15,180 $950.00 $0.95 SF $19,000 $1,100.00 $1.10 SF $22,000 UNIX MIX SUMMARY BUNKER - FINANCIALS UNIT DISTRIBUTION 100% Two Bedroom UNIT RENTS Pro Forma Projection Avg. Effective 2 Bed
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 STUDIO 2BR/1.5 BA - Bunker Hill Rd 20 Units 1,000 SF 20,000 SF $759.00 $0.76 SF $15,180 $950.00 $0.95 SF $19,000 $1,100.00 $1.10 SF $22,000 Totals / Wtd. Averages 20 Units 1,000 SF 20,000 SF $759.00 $0.76 SF $15,180 $950.00 $0.95 SF $19,000 $1,100.00 $1.10 SF $22,000 UNIX MIX BREAKDOWN BUNKER - FINANCIALS
INCOME & EXPENSES BUNKERFINANCIALS CURRENT YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of All Units at Market Rent $228,000 RR
Gain (Loss) to Lease ($60,204)
GROSS SCHEDULED RENT $167,796 RR
Other Income Utility Income $0 Note 2 0.00% 0 $1,380
Pet Rent $0
0
Total Other Income $0 0.00% 0
GROSS POTENTIAL INCOME $167,796 8,390 $226,620 Physical Vacancy $0 0.00% 0 ($11,220)
Bad Debt $0 0.00% 0 ($4,488)
EFFECTIVE GROSS INCOME $178,685 T3 Note 3 73.59% 8,934 $210,912 78.00% NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit %
EGI 2021 Taxes Paid $14,803 Auditor
Adjustment for Sale $0
0
Total Real Estate Taxes $14,803
Insurance
T12
Utilities Utilities $3,721 T12 Note 4
Total Utilities
Total Non-Controllable $23,206
CONTROLLABLE Contract Services Contract Services $3,274 T12 Note 5
164 $0
Snow Removal $0
Landscaping/Grounds $0
Pest Control $0
Total Contract Services
Repairs & Maintenance
Marketing & Promotion $0
On-Site Payroll
6
Payroll Taxes & Benefits $0
General & Administrative $12,965 T12 Note 7
Management Fee
6
Replacement & Reserves
Total Controllable
TOTAL EXPENSES
NET OPERATING INCOME
INCOME
11,400 $264,000
26.41% (3,010) ($39,600) 15.00%
8,390 $224,400
Current RR 0.61%
0.00%
$840 Current RR 0.37%
$2,220 0.99%
5.00%
2.00%
of
8.28% 740 $14,803 7.02%
0.00%
$0 0.00%
8.28% 740 $14,803 7.02%
$4,682
2.62% 234 $6,000 2.84%
2.08% 186 $3,795 1.80%
$3,721 2.08% 186 $3,795 1.80%
12.99% 1,160 $24,598 11.66%
1.83%
0.00%
0.00% 0 $700 0.33%
0.00% 0 $3,000 1.42%
0.00% 0 $700 0.33%
$3,274 1.83% 164 $4,400 2.09%
$3,766 T12 2.11% 188 $10,000 4.74%
0.00% 0 $1,500 0.71%
$16,000 Note
8.95% 800 $16,000 7.59%
0.00% 0 $2,000 0.95%
7.26% 648 $4,000 1.90%
$8,934 Note
5.00% 447 $10,546 5.00%
$5,100 Note 1 2.85% 255 $5,202 2.47%
$50,039 28.00% 2,502 $53,648 25.44%
$73,245 40.99% 3,662 $78,246 37.10%
$105,440 59.01% 5,272 $132,666 62.90% EXPENSE
YEAR 2 YEAR 3 Per % of GPR Per Unit % of GPR Per Unit 13,200 $271,920 13,596 $280,078 14,004 (1,980) ($19,034) 7.00% (952) ($5,602) 2.00% (280) 11,220 $252,886 12,644 $274,476 13,724 69 $1,421 0.56% 71 $1,464 0.53% 73 42 $865 0.34% 43 $891 0.32% 45 111 $2,287 0.90% 114 $2,355 0.86% 118 11,331 $255,172 12,759 $276,831 13,842 (561) ($12,644) 5.00% (632) ($13,724) 5.00% (686) (224) ($5,058) 2.00% (253) ($5,490) 2.00% (274) 10,546 $237,470 86.00% 11,874 $257,618 91.00% 12,881 Per Unit % of EGI Per Unit % of EGI Per Unit 740 $14,803 6.23% 740 $14,803 6.23% 740 0 $0 0.00% 0 $0 0.00% 0 740 $14,803 6.23% 740 $14,803 6.23% 740 300 $6,120 2.58% 306 $6,242 2.63% 312 190 $3,871 1.63% 194 $3,949 1.66% 197 190 $3,871 1.63% 194 $3,949 1.66% 197 1,230 $24,794 10.44% 1,240 $24,994 10.53% 1,250 0 $0 0.00% 0 $0 0.00% 0 35 $714 0.30% 36 $728 0.31% 36 150 $3,060 1.29% 153 $3,121 1.31% 156 35 $714 0.30% 36 $728 0.31% 36 220 $4,488 1.89% 224 $4,578 1.93% 229 500 $10,200 4.30% 510 $10,404 4.38% 520 75 $1,530 0.64% 77 $1,561 0.66% 78 800 $16,320 6.87% 816 $16,646 7.01% 832 100 $2,040 0.86% 102 $2,081 0.88% 104 200 $4,080 1.72% 204 $4,162 1.75%
527
260
2,682 $55,838
3,912 $80,632
6,633 $156,838
Notes # Note 1 Replacement &
2
3
4 Utilities:
5 Contract
6
7
208
$11,874 5.00% 594 $12,881 5.00% 594
$5,306 2.23% 265 $5,412 2.28% 271
23.51% 2,792 $57,724 23.88% 2,836
33.95% 4,032 $82,718 34.83% 4,136
66.05% 7,842 $174,900 73.65% 8,745 Underwriting
Reserves: added based on market norm of $255 per unit per year
Other Income: Included Utility & Washer/Dryer Income
EGI: Rental income and other income categories are all consolidated into a combined number on trailing P&L
Includes only Trash Services
Services: Includes Pest Control, Landscaping/ Grounds, Snow. Broken out starting ‘Year 1’
Added based on market norms
G&A: Includes 'Prof/Admin/Marketing' & 'Office/Leasing/ Mgt Expense'
INCOME
GROSS POTENTIAL RENT
All Units at Market Rent
$228,000 $264,000 $271,920 $280,078 $288,480 $297,134 $306,048 $315,230 $324,687 $334,427 $344,460
Gain (Loss) to Lease ($60,204) ($39,600) ($19,034) ($5,602) ($5,770) ($5,943) ($6,121) ($6,305) ($6,494) ($6,689) ($6,889)
GROSS SCHEDULED RENT
$167,796 $224,400 $252,886 $274,476 $282,710 $291,192 $299,927 $308,925 $318,193 $327,739 $337,571
Total Other Income $0 $2,220 $2,287 $2,355 $2,402 $2,450 $2,499 $2,549 $2,600 $2,652 $2,705
GROSS POTENTIAL INCOME
$167,796 $226,620 $255,172 $276,831 $285,113 $293,642 $302,427 $311,475 $320,793 $330,391 $340,276
Physical Vacancy $0 ($11,220) ($12,644) ($13,724) ($14,136) ($14,560) ($14,996) ($15,446) ($15,910) ($16,387) ($16,879)
Bad Debt $0 ($4,488) ($5,058) ($5,490) ($5,654) ($5,824) ($5,999) ($6,179) ($6,364) ($6,555) ($6,751)
EFFECTIVE GROSS INCOME $178,685 $210,912 $237,470 $257,618 $265,323 $273,259 $281,432 $289,850 $298,520 $307,449 $316,646
EXPENSES
Real Estate Taxes
$14,803 $14,803 $14,803 $14,803 $15,099 $15,401 $15,709 $16,023 $16,344 $16,671 $17,004
Insurance $4,682 $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171
Utilities $3,721 $3,795 $3,871 $3,949 $4,028 $4,108 $4,190 $4,274 $4,360 $4,447 $4,536
Contract Services $3,274 $4,400 $4,488 $4,578 $4,669 $4,763 $4,858 $4,955 $5,054 $5,155 $5,258
Repairs & Maintenance $3,766 $10,000 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951
Marketing & Promotion $0 $1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793
On-Site Payroll $16,000 $16,000 $16,320 $16,646 $16,979 $17,319 $17,665 $18,019 $18,379 $18,747 $19,121
Payroll Taxes & Benefits $0 $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390
General & Administrative $12,965 $4,000 $4,080 $4,162 $4,245 $4,330 $4,416 $4,505 $4,595 $4,687 $4,780
Management Fee $8,934 $10,546 $11,874 $12,881 $13,266 $13,663 $14,072 $14,492 $14,926 $15,372 $15,832
Replacement & Reserves $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217
TOTAL EXPENSES $73,245 $78,246 $80,632 $82,718 $84,500 $86,322 $88,184 $90,087 $92,032 $94,021 $96,054
NET OPERATING INCOME $105,440 $132,666 $156,838 $174,900 $180,823 $186,937 $193,248 $199,763 $206,488 $213,429 $220,593
CASH
BUNKER
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE MAY-2023 YE APR-2024 YE APR-2025 YE APR-2026 YE APR-2027 YE APR-2028 YE APR-2029 YE APR-2030 YE APR-2031 YE APR-2032
FLOW
FINANCIALS
INCOME
EXPENSE
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS
Income
Gross Potential Rent 15.79% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
(Loss) / Gain to Lease* 15.00% 7.00% 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%
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 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Bad Debt 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 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 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
*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 9 YR 10
YR
04
SECTION HENLEY
FINANCIALS
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 Studio 8 Units 500 SF 4,000 SF $593.00 $1.19 $4,744 $700.00 $1.40 SF $5,600 $700.00 $1.40 SF $5,600 Two Bedroom 8 Units 950 SF 7,600 SF $815.00 $0.86 $6,520 $995.00 $1.05 SF $7,960 $1,035.00 $1.09 SF $8,280 Totals / Wtd. Averages 16 Units 725 SF 11,600 SF $704.00 $0.97 SF $11,264 $847.50 $1.17 SF $13,560 $867.50 $1.20 SF $13,880 UNIX MIX SUMMARY HENLEY - FINANCIALS UNIT DISTRIBUTION 50% 50% Two Bedroom Studio UNIT RENTS Pro Forma Projection Avg. Effective Studio 2 Bed
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 STUDIO 0BR/1BA - Henley Rd 8 Units 500 SF 4,000 SF $593.00 $1.19 SF $4,744 $700.00 $1.40 SF $5,600 $700.00 $1.40 SF $5,600 Totals / Wtd. Averages 8 Units 500 SF 4,000 SF $593.00 $1.19 SF $4,744 $700.00 $1.40 SF $5,600 $700.00 $1.40 SF $5,600
2BR/1BA - Henley Rd 8 Units 950 SF 7,600 SF $815.00 $0.86 SF $6,520 $995.00 $1.05 SF $7,960 $1,035.00 $1.09 SF $8,280 Totals / Wtd. Averages 8 Units 950 SF 7,600 SF $815.00 $0.86 SF $6,520 $995.00 $1.05 SF $7,960 $1,035.00 $1.09 SF $8,280 UNIX MIX BREAKDOWN HENLEY - FINANCIALS
TWO BEDROOM
INCOME & EXPENSES HENLEYFINANCIALS
YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of All Units at Market Rent $191,040 RR
Gain (Loss) to Lease
GROSS SCHEDULED RENT $135,180 RR
Other Income Utility Income $0 Note 2
Pet Rent $0
Total Other Income $0
GROSS POTENTIAL INCOME $135,180
$167,606 Physical Vacancy $0
Bad Debt $0
EFFECTIVE GROSS INCOME $151,396 T3 Note 3 70.76%
$156,647
NON-CONTROLLABLE Real Estate Taxes
Per Unit
2020 Taxes Paid $5,067 Auditor
Adjustment for Sale $0
Total Real Estate Taxes $5,067 3.35% 317 $5,067
Insurance $3,832 T12 2.53% 240 $4,800
Utilities Utilities $10,818 T12 Note 4 7.15% 676 $11,034
Total Utilities $10,818 7.15% 676 $11,034
Total Non-Controllable $19,717 13.02% 1,232 $20,902
CONTROLLABLE Contract Services Contract Services $3,905 T12 Note 5
244 $0
Snow Removal $0 0.00% 0 $800
Landscaping/Grounds $0 0.00% 0 $2,400
Pest Control $0 0.00% 0
Total Contract Services $3,905
Repairs & Maintenance $6,451 T12
Marketing & Promotion $0 0.00% 0 $1,200
On-Site Payroll $12,800 Note 6
Payroll Taxes & Benefits $0
0 $1,600
General & Administrative $5,244 T12 Note 7
Management Fee $7,570 Note 6
Replacement & Reserves $4,080 Note 1
Total Controllable $40,050
TOTAL EXPENSES $59,767
NET OPERATING INCOME $91,629
EXPENSE INCOME
CURRENT
11,940 $166,560
($55,860) 29.24% (3,491) ($9,994) 6.00%
8,449 $156,566
0.00% 0 $8,940 Current RR 5.71%
0.00% 0 $2,100 Current RR 1.34%
0.00% 0 $11,040 7.05%
8,449
0.00% 0 ($7,828) 5.00%
0.00% 0 ($3,131) 2.00%
9,462
87.00%
% of EGI
% of EGI
3.35% 317 $5,067 3.23%
0.00% 0 $0 0.00%
3.23%
3.06%
7.04%
7.04%
13.34%
2.58%
0.00%
0.51%
1.53%
$560 0.36%
2.58% 244 $3,760 2.40%
4.26% 403 $8,000 5.11%
0.77%
8.45% 800 $12,800 8.17%
0.00%
1.02%
3.46% 328 $3,200 2.04%
5.00% 473 $7,832 5.00%
2.69% 255 $4,162 2.66%
26.45% 2,503 $42,554 27.17%
39.48% 3,735 $63,456 40.51%
60.52% 5,727 $93,191 59.49%
YEAR 2 YEAR 3 Per % of GPR Per Unit % of GPR Per Unit 10,410 $171,557 10,722 $176,704 11,044 (625) ($3,431) 2.00% (214) ($3,534) 2.00% (221) 9,785 $168,126 10,508 $173,169 10,823 559 $9,208 5.48% 576 $9,484 5.48% 593 131 $2,163 1.29% 135 $2,228 1.29% 139 690 $11,371 6.76% 711 $11,712 6.76% 732 10,475 $179,497 11,219 $184,882 11,555 (489) ($8,406) 5.00% (525) ($8,658) 5.00% (541) (196) ($3,363) 2.00% (210) ($3,463) 2.00% (216) 9,790 $167,728 91.00% 10,483 $172,760 91.00% 10,797 Per Unit % of EGI Per Unit % of EGI Per Unit 317 $5,067 3.02% 317 $5,067 3.02% 317 0 $0 0.00% 0 $0 0.00% 0 317 $5,067 3.02% 317 $5,067 3.02% 317 300 $4,896 2.92% 306 $4,994 2.98% 312 690 $11,255 6.71% 703 $11,480 6.84% 718 690 $11,255 6.71% 703 $11,480 6.84% 718 1,306 $21,218 12.65% 1,326 $21,541 12.84% 1,346 0 $0 0.00% 0 $0 0.00% 0 50 $816 0.49% 51 $832 0.50% 52 150 $2,448 1.46% 153 $2,497 1.49% 156 35 $571 0.34% 36 $583 0.35% 36 235 $3,835 2.29% 240 $3,912 2.33% 244 500 $8,160 4.87% 510 $8,323 4.96% 520 75 $1,224 0.73% 77 $1,248 0.74% 78 800 $13,056 7.78% 816 $13,317 7.94% 832 100 $1,632 0.97% 102 $1,665 0.99% 104 200 $3,264 1.95%
Notes #
1
2
3
4
5
6
7
204 $3,329 1.98% 208 490 $8,386 5.00% 524 $8,638 5.00% 524 260 $4,245 2.53% 265 $4,330 2.58% 271 2,660 $43,802 26.12% 2,738 $44,762 26.54% 2,782 3,966 $65,021 38.77% 4,064 $66,304 39.53% 4,144 5,824 $102,707 61.23% 6,419 $106,456 63.47% 6,654 Underwriting
Note
Replacement & Reserves: added based on market norm of $255 per unit per year
Other Income: Included Utility & Washer/Dryer Income
EGI: Rental income and other income categories are all consolidated into a combined number on trailing P&L
Utilities: Includes only Trash Services
Contract Services: Includes Pest Control, Landscaping/ Grounds, Snow. Broken out starting ‘Year 1’
Added based on market norms
G&A: Includes 'Prof/Admin/Marketing' & 'Office/Leasing/ Mgt Expense'
EXPENSE
INCOME
GROSS POTENTIAL RENT
All Units at Market Rent
$191,040 $166,560 $171,557 $176,704 $182,005 $187,465 $193,089 $198,881 $204,848 $210,993 $217,323
Gain (Loss) to Lease ($55,860) ($9,994) ($3,431) ($3,534) ($3,640) ($3,749) ($3,862) ($3,978) ($4,097) ($4,220) ($4,346)
GROSS SCHEDULED RENT
$135,180 $156,566 $168,126 $173,169 $178,365 $183,715 $189,227 $194,904 $200,751 $206,773 $212,977
Total Other Income $0 $11,040 $11,371 $11,712 $11,947 $12,186 $12,429 $12,678 $12,931 $13,190 $13,454
GROSS POTENTIAL INCOME
$135,180 $167,606 $179,497 $184,882 $190,311 $195,901 $201,656 $207,582 $213,682 $219,963 $226,430
Physical Vacancy $0 ($7,828) ($8,406) ($8,658) ($8,918) ($9,186) ($9,461) ($9,745) ($10,038) ($10,339) ($10,649)
Bad Debt $0 ($3,131) ($3,363) ($3,463) ($3,567) ($3,674) ($3,785) ($3,898) ($4,015) ($4,135) ($4,260)
EFFECTIVE GROSS INCOME $151,396 $156,647 $167,728 $172,760 $177,826 $183,041 $188,410 $193,938 $199,630 $205,489 $211,522
EXPENSES
Real Estate Taxes
$5,067 $5,067 $5,067 $5,067 $5,169 $5,272 $5,378 $5,485 $5,595 $5,707 $5,821
Insurance $3,832 $4,800 $4,896 $4,994 $5,094 $5,196 $5,300 $5,406 $5,514 $5,624 $5,736
Utilities $10,818 $11,034 $11,255 $11,480 $11,710 $11,944 $12,183 $12,426 $12,675 $12,929 $13,187
Contract Services $3,905 $3,760 $3,835 $3,912 $3,990 $4,070 $4,151 $4,234 $4,319 $4,405 $4,494
Repairs & Maintenance $6,451 $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561
Marketing & Promotion $0 $1,200 $1,224 $1,248 $1,273 $1,299 $1,325 $1,351 $1,378 $1,406 $1,434
On-Site Payroll $12,800 $12,800 $13,056 $13,317 $13,583 $13,855 $14,132 $14,415 $14,703 $14,997 $15,297
Payroll Taxes & Benefits $0 $1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 $1,838 $1,875 $1,912
General & Administrative $5,244 $3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824
Management Fee $7,570 $7,832 $8,386 $8,638 $8,891 $9,152 $9,421 $9,697 $9,981 $10,274 $10,576
Replacement & Reserves $4,080 $4,162 $4,245 $4,330 $4,416 $4,505 $4,595 $4,687 $4,780 $4,876 $4,973
TOTAL EXPENSES $59,767 $63,456 $65,021 $66,304 $67,710 $69,148 $70,616 $72,116 $73,649 $75,216 $76,816
NET OPERATING INCOME $91,629 $93,191 $102,707 $106,456 $110,115 $113,893 $117,794 $121,822 $125,980 $130,274 $134,706
CASH
HENLEY
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE MAY-2023 YE APR-2024 YE APR-2025 YE APR-2026 YE APR-2027 YE APR-2028 YE APR-2029 YE APR-2030 YE APR-2031 YE APR-2032
FLOW
FINANCIALS
INCOME
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS
Income
Gross Potential Rent -12.81% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
(Loss) / Gain to Lease* 6.00% 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%
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 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Bad Debt 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 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 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
*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 9 YR
YR
10
LOCAL MARKET
05
SECTION
MARKET
TROY, OH
Troy is the county seat of Miami County, Ohio. Residents named the town after the ancient city of Troy. Established in 1808, Troy became the Miami County seat that same year, replacing Staunton. Troy grew quickly, primarily due to its location on the Great Miami River, on the Miami and Erie Canal, and also on several important turnpikes.
churches, two newspaper offices, a branch of Ohio’s state bank, one private academy, a Masonic hall, at least six warehouses, three flourmills, five sawmills, one iron foundry, one machine shop, one shingle factory, and one plow factory.
As of 2000 the median income for a household in the city was $39,531, and the median income for a family was $46,889. The per capita income for the city was $19,892.
In 1840, Troy’s population was 1,351 people. The town’s population nearly doubled over the next six years, as more and more people moved to the region to take advantage of its transportation infrastructure. In 1846, the town contained six
3 REASONS TO CHOOSE TROY
1. QUALITY OF WORKFORCE
A labor pool of over 700,000 workers. Three top-flight institutions devoted to strategically aligned and custom training. A proud and deeply ingrained work ethic. Your Troy team is your dream team, committed, agile, and highly skilled.
2. QUALITY OF OPPORTUNITY
A motivated, highly skilled workforce drives top performance for domestic industry and 16 international manufacturers in Troy. Another key to our success: A central location just minutes from the I-75/I-70 interchange. When it comes to quality, we get it. When it comes to delivery, we get it there fast and cost-effectively.
3. QUALITY OF LIFE
A vibrant downtown and urban core, a delectable dining and shopping mix that’s both traditional and up-to-the-moment, phenomenal recreation on thousands of acres of parkland and river, great schools, and attractive, affordable housing that holds its value. Enrich your life. Engage. Enjoy.
DAYTON
Since the arrival of the first settlers on April 1, 1796, Dayton has always been a place for pioneering vision and change. They have hosted many firsts as the patent capital of the U.S. and provided the world with a staggering number of life-changing innovations and technological advancements. Today they’re still setting trends and promoting growth. In the research labs of Wright-Patterson Air Force Base, the University of Dayton, Wright State University, and many of the top businesses, the innovative spirit of Dayton continues to produce cutting-edge technology and dynamic solutions
to today’s biggest issues.
With the crossroads of Interstate 70 and 75, the railroad capacity, and the international airport, Dayton provides one of the most accessible cities in the nation. In fact, Dayton’s location puts it within one day’s drive of 60% of the U.S. population. The superior transportation makes us among the most competitive mid-sized cities for logistics.
ECONOMIC OVERVIEW
• Dayton is home to a diverse group of employers, including Wright-Patterson Air Force Base, large health and insurance networks, advanced manufacturing companies and educational entities.
• 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. In the year-ending 2nd quarter 2021, the metro’s inflation adjusted economic output expanded 12.9%.
• Dayton’s unemployment rate in May 2021 declined 9.1 points year-over-year to 5.2%. This unemployment rate was slightly below the national average of 5.5%.
• During the past year, job gains in Dayton were most pronounced in the Leisure/Hospitality Services sector followed by Trade/Transportation/Utilities and Manufacturing. Due to job losses stemming from the pandemic, Dayton’s current employment base now sits around 11,900 jobs, or about 3% below the 1st quarter 2008 level, prior to the Great Recession.
Population: 812,657
Median age: 33
DEMOGRAPHIC OVERVIEW
Dayton is a city located in Greene County and Montgomery County Ohio. It is also the county seat of Montgomery County. With a 2020 population of 140,343, it is the 6th largest city in Ohio and the 198th largest city in the United States . Dayton is currently declining at a rate of -0.02% annually and its population has decreased by -0.84% since the most recent census, which recorded a population of 141,527 in 2010. Spanning over 57 miles, Dayton has a population density of 2,533 people per square mile. The average household income in Dayton is $46,430 with a poverty rate of 30.57%. The median rental costs in re-
DEMOGRAPHICS: STATISTICS
Msa median hhi: $32,540
1 - Year growth: 0.31%
Msa median home value: $97,545
1 - Year growth: 4.83%
cent years comes to $706 per month, and the median house value is $66,800. The median age in Dayton is 33 years, 31.6 years for males, and 34.4 years for females. Part of Dayton is located in neighboring Greene County. The city is the sixth most populous in the state, and its metro area is the fourth largest in Ohio.
Average occupancy: 96.2%
Rent growth: 4.5%
SUPPLY
• The level of new apartment completions in Dayton were modest recently, as 525 units delivered in the year-ending 2nd quarter 2021. That annual completion volume compares to a low of 276 units and a high of 1,136 units over the past five years. Annual new supply averaged 630 units, and annual inventory growth averaged 1.2% over the past five years.
• Completions over the past year expanded the local inventory base 0.9%. Over the next year, inventory growth is set to slow with the scheduled addition of 280 units.
• At the end of 2nd quarter 2021, there were 404 units under construction, as construction volumes have slowed in recent years.
• Among submarkets, new supply over the past five years has been concentrated in South Montgomery County, which received 44% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be concentrated in Central Dayton/ Kettering.
OCCUPANCY
• Occupancy in the Dayton apartment market has ranged from 93.9% to 97.4% over the past five years, averaging 95.6%. Over the past year, occupancy gained 0.2 points, with the 2nd quarter 2021 rate landing at 96.8%.
• That occupancy rate ranked 12th amongst 29 key Midwest region markets.
• 2nd quarter 2021 occupancy registered at 95.8% in Class A units, 97.6% in Class B units and 96.8% in Class C units.
• Occupancy in Class B was generally tightest over the past five years.
• Among submarkets, 2nd quarter 2021 occupancy was strongest in North Dayton/ Miami County. The weakest reading was seen in Greene County. Over the past five years, North Dayton/ Miami County generally led for occupancy.
WRIGHT PATTERSON
Located in Dayton, Wright-Patterson Air Force Base (WPAFB) is one of the most diverse, largest, and organizationally complex bases in the Air Force. Not only is WPAFB the largest single-site employer in the entire state of Ohio, but it is also a center of innovation for the Air Force. It was selected as the “preferred location” for the F-35 Lightning II Hybrid Product Support Intergrator organization, which supports the entire F-35 enterprise. This would bring a minimum of 400 new jobs to the base. The potential impact to the region cannot only be measured in jobs alone, neighboring communities would benefit through the result of more growth for contractors and businesses. Wright-Patterson Air Force Base employs 27,500 military, civilian, and contract employees and has an annual economic impact of $4.3 billion. “Wright Patterson AFB is the crown jewel of the state of Ohio, and our department will continue to do everything we can to accelerate the growth of the WPAFB and attract more jobs to the region.”
Eric Henry, Greene County’s Economic Development Coordinator
QUICK STATS $4.3B ECONOMIC IMPACT 27,500 EMPLOYEES 8,000+ ACRES 1M+ ANNUAL VISITORS
HIGHER EDUCATION
UNIVERSITY OF DAYTON SINCLAR COMMUNITY COLLEGE
Founded in 1850, the University of dayton (UD) spans a massive 373-acres with state-of-the-art facilities in the downtown area. It boasts 38 academic, athletic, administrative, and research buildings, five resident halls, 18 student apartment complexes, and 473 houses (347 being owned by UD). In 2019, there were a total of 8,483 undergrad students enrolled. 85% of students live on-campus or in student neighborhoods. UD offers more than 80 undergraduate programs and 50 graduate and doctoral programs. UD has 17 Division I sports temas, 37 club sports, and 12 intramural sports. Since 2001, the NCAA tournament has had an impact of more than $70 million on dayton’s economy and UD Arena has hosted more Division I Basketball Championship gams than any other venue in the US.
UD
Sinclair Community College was founded in 1887 and is located in downtown Dayton. Sinclair has a student to faculty ratio of 19:1, which is among the lowest at Ohio colleges. They offer over 250 degree and certificate programs and have 35 fully-online programs available. Tuition for a full-time undergraduate student at Sinclair is a tenth of the cost of a private four-year university and a third of the cost of a public four-year university. It is one of the largest community colleges in the nation, with an enrollment of over 30,000 students.
Sinclar Community College
UD
WRIGHT
Located in the Dayton area, Wright State University is a national public research university. WSU offers 140 undergraduate programs and 136 graduate programs. Wright State has 20 percent more affordable in-state tuition than the national average. WSU adds $1.5 billion into the region’s economy annually and supports more than 20,000 jobs through its spending on operations and research and throuigh spending of students, alumni, and visitors. With a student body population of more than 13,000, there is only a 3,000 on-campus student housing
capacity. WSU’s Nutter Center is southwest Ohio’s premier sports and entertainment facility. With a capacity of 11,200, it has also been recognized nationally as a top venue of its size.
STATE UNIVERSITY $1.5B ECONOMIC IMPACT 20,000+ JOBS SUPPORTED 13,000+ STUDENTS ENROLLED 2,500+ WSU FACULTY
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