Overlook

O F F E R I N G M E M O RAN D U M

100 Willner Circle | Sanford, FL 32771

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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 or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be 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.

RENT DISCLAIMER Any rent or income information in this offering memorandum, with the exception of actual, historical rent collections, represent good faith projections of potential future rent only, and Marcus & Millichap makes no representations as to whether such rent may actually be attainable. Local, state, and federal laws regarding restrictions on rent increases may make these projections impossible, and Buyer and its advisors should conduct their own investigation to determine whether such rent increases are legally permitted and reasonably attainable.

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. Activity ID ZAD0240306

Table of Contents INVESTMENT OVERVIEW • Investment Highlights • Affordable Overview

PROPERTY DESCRIPTION • Points of Interest • Exterior - Aerial Photos • Property Description - Amenities • Unit Amenity Photos • Community Amenity Photos SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook.

Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

• Floor Plans

FINANCIAL ANALYSIS • Operating Statement • Cash Flow Projections

MARKET OVERVIEW • Orlando Overview

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.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2022 Marcus & Millichap. All rights reserved.

• Demographics

Investment Overview

6

Overlook at Monroe

Investment Highlights

Investment Overview Marcus & Millichap, as exclusive listing agent, is pleased to offer for sale The Overlook at Monroe, a 184-unit, affordable Low Income Housing Tax Credit (LIHTC) community located in the city of Sanford, Florida. The property is comprised of eleven two and three-story buildings plus a community clubhouse on a 14.89-acre site. The buildings were constructed in 1994 of wood frame with painted stucco exterior and have pitched asphalt shingle roofs. There are numerous small lakes throughout the property that provide scenic views.

The Overlook offers an excellent mix of 83 percent two- and three-bedroom apartments averaging 1,025 rentable square feet and has competitive unit and community amenities including a waterfront pool with expansive sundeck, lounge areas and barbeque, clubhouse with fitness center and entertainment facilities, fully equipped kitchens with dishwashers, large sunrooms, and vaulted ceilings in select apartments.

The Overlook is well located in Central Florida, approximately 20 miles north of downtown Orlando. Interstate 4 is approximately two miles to the west and Historic Downtown Sanford is just a few blocks to the east. The entrance to the property fronts on West 1st Street (US 17), a major east-west artery that travels through the entire city, and the rear of the property sits across the street from Lake Monroe. Central Florida Regional Hospital is one block to the east.

Furthermore, there are many retail, shopping, restaurant, employment, and entertainment outlets in the area. Due to its desirability and strategic location, Sanford has rapidly grown over the past few years. This is demonstrated by the development of many new market rate multifamily buildings, including the one next door to The Overlook. Rents average approximately $2.75 per square foot.

Property Highlights • • • • • • • • • • • •

Excellent Central Florida Location Close to Shopping, Transportation and Employment Significant New Class-A Multifamily in Area Frame Construction with Pitched Roofs and Fire Sprinklers Gated Swimming Pool with Large Sundeck 83% Two- and Three-Bedroom Floor Plans Oversized Apartments Averaging 1,025 RSF Washer and Dryer Hook-Ups in All Apartments Clubhouse with Fitness Center and Laundry Facility Walking Distance to Central Florida Regional Hospital Restricted Rents Less Than 50% of Market Rate Minimal Affordable Rental Competition

Investment Highlights

Overlook at Monroe

7

Affordable Overview Property Type:

LIHTC - FAMILY

Placed In Service:

1994

End of TCCP:

2009

Extended Use:

Perpetuity

Final Year of LIHTC Restrictions:

Perpetuity

Qualified Contract Eligible:

No

Right of First Refusal:

No

Located in QCT:

Yes

Located in DDA:

No

Located in Opportunity Zone:

No

Financial Audit Requirement:

Through TCCP

Affordable Requirements LIHTC LURA: Requires 100% of the units restricted at 60% AMI

8

Overlook at Monroe

Investment Highlights

Investment Highlights

Overlook at Monroe

9

Property Description

Sanford Middle School Seminole State College Sanford/Lake Mary Campus All Souls Catholic School

POINTS OF INTEREST

1.

Seminole High School

24. BJ’s Wholesale Club

2.

Sanford Middle School

25. Target

3.

Seminole State College Sanford/Lake

26. Sam’s Club School

Mary Campus

27. Seminole TowneElementary Center (Ross, Idyllwilde School Target,

Holy Cross Lutheran Academy | Upper School | 6th - High

4.

All Souls Catholic School

Marshalls, Panera Bread, Panda

5.

Holy Cross Lutheran Academy

Express, more) Southern Technical College -

6.

Idyllwild Elementary School

28. Bravo Supermarkets Sanford

7.

Southern Technical College

29. Seminole Centre College Remington

8.

Remington College

30. Amtrak Auto Train (Sanford Auto Train

9.

Crooms Academy of Information

10. Wicklow Elementary School 11. Bentley Elementary School 12. Hamilton Elementary School 13. Midway Elementary School 14. Millennium Middle School 15. Pinecrest Elementary School 16. Central Florida Regional Hospital 17. Discount Rx 18. CVS

Station) Crooms Academy Of

Information Technology 31. Goldsboro Museum School 32. Mayfair Wicklow CountryElementary Club Elementary School 33. Sanford Bentley Riverwalk HamiltonZoo Elementary School Gardens 34. Central Florida and Botanical Midway Elementary School 35. Fort Mellon Park Millennium Middle School 36. The Dugout Elementary School 37. Historic Pinecrest Venue 1902 38. Orlando Sanford International Airport

Central Florida Regional

39. Lake Monroe Wayside Park

Hospital : Emergency Room

19. Florida Health Care Pharmacy 20. IMA Medical Center of Sanford 21. Advanced Integrated Medicine 22. Walmart Super Center

40. Sanford Florida Chase Park

Discount Rx

41. Sanford Museum

CVS

42. Historic Downtown Sanford 43. Sunrail Sanford Station

Florida Health Care Plans

Pharmacy

23. Winn-Dixie

12

Overlook at Monroe

Points of Interest

IMA Medical Center of Sanford

N

39

34

16 43

24 18

33

17

41 35

36

5

42

30 27

22

37

4

21

9

12 40

31

23

25

2

11

6

26

20

14

13

8 32

10

1 15

19

38

7

28

29

School

Health Care

Retail

Park and Recreation

3

Points of Interest

Overlook at Monroe

13

Seminole State College- Sanford Campus

Southern Technical College- Sanford Campus

Remington College

Central Florida Regional Hospital

Advanced Integrated Medicine

Seminole Town Center

Seminole State College of Florida is a public university established in 1965 and serves over 30,000 full and part time students over four different campus. The Sanford Campus is the main campous of the university and is one of the largest employers of Seminole County.

Central Florida Regional Hospital has served Seminole and West Volusia Counties since 1982. An accredited 221bed acute care hospital, it offers a wide range of medical specialties and surgeries that include cardiovascular, orthopedic, and spine care.

Southern Technical College is a private for profit college that offers diplomas and degrees in a variety of programs such as heating, ventilation and air conditioning/ refrigeration, medical assisting, veterinary assisting and welding technology.

Advanced integrated Medicine provides a comprehensive range of medical services and treatments to residents of Central Florida. Our services include medical consultations, non-surgical spinal decompression, interventional pain management, orthopedic and neurosurgical consultation.

Remington College is a non-profit, ACCSC accredited school that operates a group of 16 private colleges throughout the United States. Headquartered in Lake Mary, Florida, it offers diploma programs in business, information technology, criminal justice, electronics, graphic arts, beauty, and health sciences.

Full service mall that serving Seminole County includes key retailers such as JCPenney, Dillard’s, Dick’s Sporting Goods, Burlington Coat Factory, AT&T, T-Mobile, Zales, Rack Room Shoes, and Farmer’s Insurance.

Sources: seminolestate.edu, www.southerntech.edu, remingtoncollege.edu, https://www.rdmanagement.com/properties/seminole-center/

14

Overlook at Monroe

Points of Interest

Seminole Center

Amtrak (Sanford Auto Train Center)

Goldsboro Mueseum

Central Florida Zoo and Botantical Gardens

Fort Mellon Park

The Dugout

Shopping Plaza that offer a wide variety of shops and food options in surrounding area that include Walmart, CVS Pharmacy, ALDI, Wells Fargo, FedEx, Ross, SherwinWilliams, HobbyTown, Wendy’s, KFC, and Dunkin’.

First opened in 1923, this 116-acre zoo stars endangered big cats, reptiles & more plus a zip line & rope bridges.

The zoo serves as a leader in conseration, providing educational experiences that insipire postitive interaction with wildlife.

Auto Train Station that has multiple destinations in the Southeastern United States. Train amentinites includes WiFi, Rooms/Beds, and extensive food options.

Lakefront park offering fitness trails, public restrooms, BBQ grills, a playground & tennis courts that is minutes away from Sanford Riverwalk and Sandford’s Historic Downtown district.

Historic Muesuem celebrating the history and culture celebrating the town of Goldsboro. In 1891, Goldsboro became the second all black township in the United States. Today, the mueseum has a mission to cultivate cultural tourism and elevate econmics arts development of all cultures.

The Dugout is a premier indoor/outdoor baseball & softball training facility in the Central Florida area. It is dedicated to fulfilling the needs of players of all ages and abilities. The site includes 7 batting cages, 7 pitching mounds, a weight room, and two baseball fields that have Major League turf infields.

Sources: https://www.rdmanagement.com/properties/seminole-center/, https://www.amtrak.com/stations/sfa, https://www.cflpride.com/page/show/2903066-our-facility

Points of Interest

Overlook at Monroe

15

Historic Venue 1902

Orlando Sanford International Airport

Boombah Sports Complex

Alaqua County Country Club

Sanford Museum

Heathrow Legacy Country Club

Once a notable schoolhouse, Historic Venue 1902 was converted to one of central florida’s most prestigious wedding and event venues in 2017. The 10,000 square foot location has the ability to acccomate up to 175 guests and offers a fully renovated and restored indoor/ outdoor space.

Private country club offering first-class service, pristine golf course conditions, exclusive dining and social experiences. The club offers some of the highest quality golf courses in the Orlando area as well as a gun range for members.

Orlando Sanford International Airport serves as one of two commerical international airports in the greater Orlando area. The airport currently serves over 2,000,000 passengers per year and offers four different airlines focusing on routes located in the Eastern United States and Canada.

Founded in 1957, the Sanford Museuem celebrates the local history of the surrounding area. Museuem exhibits include personal items of the city’s founder, famous American and European paintings, and important artifacts associated with the city’s history and promient citizens.

Boombah Sports Complex offers 15 state of the art lighted baseball fields that serve multi-purpose sporting needs. The complex also includes a large central pavilon for groups, walking paths, central picnic area, batting cages, and in building meeting spaces for events.

Prestigous country club that includes 36 holes of championship golf, premier tennis courts, a 6 lane competitive-style swimming pool, and an award-winning Grand Ballrom.

Sources: http://thingstodoinsanfordfl.com/sanford-museum/, https://www.historicdowntownsanford.com/, https://orlando-politics.com/2017/06/27/seminole-commission-awardsboombah-naming-rights-to-two-county-sports-facilities/,

16

Overlook at Monroe

Points of Interest

Historic Downtown Sanford

Downtown destination that features a wide variety of restaurants, craft breweries, gastropubs, world-class events and concerts. It has one of Central Florida’s most vibrant art communites and a marina for fishing and boating.

Sunrail - Sanford Station

Located near the intersection of State Road 46 and Airport Boulevard, the station features a free trolly service to downtown Sanford as well as Lynx bus connections to many destinations throughout the city. The Sunrail has 20 trains with 16 stops between Kissimmee and DeBary.

Sources: https://orlandodatenightguide.com/2017/04/date-night-options-for-sanfordfl/

Points of Interest

Overlook at Monroe

17

18

Overlook at Monroe

Aerial - Exterior Photos

The Overlook at Monroe Address Assessor’s Parcel Number Price

100 Willner Circle, Sanford, Florida 32771 26-19-30-300-0020-0000

•

Clubhouse with Fitness Center

•

Gated Swimming Pool with Large Sundeck

•

Outdoor Cabana Entertainment Area

•

Onsite Laundry Facility and Mail Center

1994

•

Picnic, Barbeque and Dog Walk Areas

188,640 SF

•

Lots of Open Courtyard Areas

•

Playgrounds with Sitting Area

14.894 Acres

•

Scenic Lakes with Fountains

12 Units per Acre

•

Trash Compactor and Maintenance Sheds

TBD by Market

SITE DESCRIPTION Number of Units 184 Number of Buildings Number of Stories Year Built Net Rentable Square Feet Average Unit Size Zoning Lot Size Density (Units/Acre) Parking Parking Ratio Type of Ownership Landscaping Topography Flood Zone

11 Residential plus Clubhouse 1, 2 and 3

1,025 SF RMOI

374 Surface Spaces 2.03 Spaces per Unit Fee Simple Mature Level No (except for utility shed)

UTILITIES Water & Sewer City of Sanford - Paid by Owner Trash

Community Amenities

Waste Pro - Paid by Owner (compactor)

Unit Amenities •

Desirable Mix 1, 2, 3-Bedroom Units

•

Large Floor Plans Averaging 1,025 RSF

Electricity

Florida Power & Light - Paid by Resident

•

Designer Kitchens with Breakfast Bar

Telephone

Spectrum/Verizon - Paid by Resident

•

Dishwashers and Large Pantries

•

Full Size Washer/Dryer Connections

•

Central Heating and Air-Conditioning

•

Vaulted Ceilings in All Third Floor Units

•

Walk-In Closets and Large Sunrooms

Pitched with Asphalt Shingles (2015)

•

Fire Sprinklers and Ceiling Fans

Aluminum Single Hung

•

Extra Storage Closets and Linen Closets

Cable

Spectrum - Paid by Resident

CONSTRUCTION Foundation Concrete Slab Exterior Interior Floors Parking Surface Roof Windows

Wood Frame with Painted Stucco Wood Frame Asphalt

MECHANICAL HVAC Individual Split Systems Hot-Water Heaters Fire and Safety Plumbing Wiring

Individual Electric Smoke Detectors and Fire Sprinklers PVC and CPVC Copper

20

Overlook at Monroe

Amenities

Amenities

Overlook at Monroe

21

22

Overlook at Monroe

Amenities

Amenities

Overlook at Monroe

23

One - Bedroom/ One - Bathroom 735 SQ. FT.

24

Overlook at Monroe

Two - Bedroom/ Two - Bathroom 1000 SQ. FT.

Floor Plans

Three - Bedroom/ Two - Bathroom 1164 SQ. FT.

Floor Plans

Overlook at Monroe

25

Wilner Circle Wilner Circle

7 11 Lake Monroe

26

9 10

Overlook at Monroe

8

6 Wilner Circle

Site Plan

3

5 4

Office

2

1

28

Overlook at Monroe

Site Plan

Financial Analysis

Rent Roll Dated June 16, 2022

1 Bedroom 1 Bathroom - 60% AMI 2 Bedroom 2 Bathroom - 60% AMI 3 Bedroom 2 Bathroom - 60% AMI

Total/Average

735 1,000 1,164

23,520 72,000 93,120

$874 $1,055 $1,223

$1.19 $1.06 $1.05

$335,616 $911,520 $1,174,080

$869 $1,049 $1,254

$1.18 $1.05 $1.08

$333,864 $906,144 $1,203,432

184

1,025

188,640

$1,097

$1.07

$2,421,216

$1,107

$1.08

$2,443,440

Unit Distribution Available 3% Two Bedroom 39% Three Bedroom 44%

One Bedroom 17%

Overlook at Monroe

Average Rent/Unit/ Month

Operating Statement

Gross Potential Rents

Occupany Status Occupied with Lease Units Available Units Non-Revenue Units Employee Units Total/Percentage

Unit Count 179 5 0 0 184

Percent 97.28% 2.72% 0.00% 0.00% 100.00%

Occupany Status Physical Occupied Units Available Units Total/Percentage

Unit Count 179 5 184

Percent 97.28% 2.72% 100.00%

2022 Utility Allowances (per ECM Certification) One-Bedroom $59 Two-Bedroom $65 Three-Bedroom $70

*27 residents have Section 8 vouchers

30

Gross Market Rents

Potential Average Rent/SF/ Month

32 72 80

Unit Status

Occupied 97%

Market Average Rent/SF/ Month

Square Feet

Unit Count

Unit Type

Estimated Market Rent/Unit/ Month

Total Square Feet

$68 $83 $108

Section 8 $108 $148 $194

HISTORICAL CASH FLOW

PROJECTED CASH FLOW T-12 May-22

INCOME Current Market Rents Loss / Gain to Lease Gross Potential Rent Physical Vacancy Net Potential Rent Economic Vacancy Bad Debt Employee Unit Discounts Concessions Non-Revenue Units Total Vacancy Economic Occupancy Total Effective Rental Income Other Income Administration Fees Application Fee Income Early Term Fee Damage Fees Late Fees Laundry Income Miscellaneous Electric Pet Fees Total Other Income Effective Gross Income

0 0 0 0

Per Unit

0 0 0 0

0 0 0 0 0 0 0 0 0 0 #DIV/0!

2,169,097 11,789 2,017 6,825 7,237 14,009 23,187 119 821 195 14,550 68,959 2,238,056

11 37 39 76 126 1 4 1 79 375 12,163

T-3 May-22

0 0 0 0

Per Unit

0 0 0 0 0 0 0 0 0

Jun-22 Rent Roll

% of GPR

Per Unit

Per SF

Pro Forma

% of GPR

Per Unit

2,421,216 22,224 2,443,440 (48,869) 2,394,571

0.9% 99.1% 2.0% 98.0%

121 13,280 (266) 13,014

0.12 12.95 (0.26) 12.69

2,518,065 22,224 2,540,289 (50,806) 2,489,483

0.9% 99.1% 2.0% 98.0%

121 13,806 (276) 13,530

0.1% 0.0% 0.0% 0.0% 2.1%

(13) 0 0 0 (279)

(0.01) 0.00 0.00 0.00 (0.27)

0.1% 0.0% 0.0% 0.0% 2.1%

(14) 0 0 0 (290)

0 #DIV/0!

2,207,232 11,996

(2,395) 0 0 0 (51,263) 97.90% 2,392,177

97.9%

13,001

1,644 5,720 0 14,718 21,652 0 349 780 13,008 57,871 2,265,103

2,017 6,825 7,237 14,009 23,187 119 821 160 14,550 68,924 2,461,101

0.1% 0.3% 0.3% 0.6% 0.9% 0.0% 0.0% 0.0% 0.6% 2.8% 100.7%

11 37 39 76 126 1 4 1 79 375 13,376

9 31 0 80 118 0 2 4 71 315 12,310

Per SF

[1] 0.12 [2] 13.47 (0.27) [3] 13.20

12.68

(2,489) 0 0 0 (53,295) 97.90% 2,486,993

(0.01) 0.00 0.00 0.00 (0.28)

97.9%

13,516

13.18

0.01 0.04 0.04 0.07 0.12 0.00 0.00 0.00 0.08 0.37 13.05

2,017 6,825 7,237 14,009 23,187 119 821 160 14,550 68,924 2,555,918

0.1% 0.3% 0.3% 0.6% 0.9% 0.0% 0.0% 0.0% 0.6% 2.7% 100.6%

11 37 39 76 126 1 4 1 79 375 13,891

0.01 0.04 0.04 0.07 0.12 0.00 0.00 0.00 0.08 0.37 13.55

[4] [5] [6] [7]

[8]

INCOME [1]

Current Market Rent – Based on current maximum allowable rents. Proforma reflects 4% growth.

[2]

Loss / Gain to Lease – Based on June 2022 rent roll.

[3]

Physical Vacancy – Based on property average of 1% of gross potential rent. It is currently 100% occupied.

[4]

Bad Debt – Based on assumption of .1% of the gross potential rent.

[5]

Employee Unit Discounts – Two employees live on site but both pay full rent.

[6]

Concessions – There are no concessions being offered.

[7]

Non-Revene Units – There are no non-revenue units.

OTHER INCOME Unless otherwise specified, projected other income line items are equal to May 2022 trailing 12 figures.

[8] EXPENSES

Miscellaneous – Based on May 2022 trailing 12 figure, less non-recurring items.

Operating Statement

Unless otherwise specified, projected expense line items are equal to May 2022 trailing 12 figures.

[9]

Management Fee – Based on assumption of 4 percent of the effective gross income.

Overlook at Monroe

31

HISTORICAL CASH FLOW

PROJECTED CASH FLOW T-12 May-22

EXPENSES Controllable Advertising General and Administrative Landscaping Management Fees Lift Station Other Contract Services Payroll Pest Control Pool Service INCOME Professional Fees

Per Unit

T-3 May-22

Per Unit

Stabilized

% of GPR

Per Unit

Per SF

Pro Forma

1,824 10 1,824 10 1,824 0.1% 10 0.01 1,824 0.1% 6,126 33 1,835 10 6,126 0.3% 33 0.03 6,126 0.2% 19,800 108 19,800 108 19,800 0.8% 108 0.10 19,800 0.8% 89,522 487 89,522 487 98,444 4.0% 535 0.52 102,237 4.0% 780 4 780 4 780 0.0% 4 0.00 780 0.0% 11,382 62 8,596 47 11,382 0.5% 62 0.06 11,382 0.4% 172,026 935 168,916 918 239,200 9.8% 1,300 1.27 239,200 9.4% 2,700 15 2,700 15 2,700 0.1% 15 0.01 2,700 0.1% 7,200 39 7,200 39 7,200 0.3% 39 0.04 7,200 0.3% 5,057 27 5,128 28 5,057 0.2% 27 0.03 5,057 0.2% 37,591 73,600 3.0% 400 0.39 4% growth.

73,600 2.9% Current204 Market Rent30,860 – Based on168 current maximum allowable rents. Proforma reflects 3,239 18 3,614 20 3,239 0.1% 18 0.02 3,239 0.1% Loss / Gain to Lease – Based on June 2022 rent roll.

357,247 1,942 340,776 1,852 469,352 19.2% 2,551 2.49 473,145 18.6% Physical Vacancy – Based on property average of 1% of gross potential rent. It is currently 100% occupied.

Repairs & Maintenance [1] Telephone [2] Total Controllable [3] Non-Controllable [4] Electricity & Gas 21,360 116– Based on 23,554 128 0.9%rent. 116 0.11 Bad Debt assumption of .1% of the21,360 gross potential Insurance 65,141 354 65,141 354 110,400 4.5% 600 [5] Employee Unit Discounts – Two employees live on site but both pay full rent. 0.59 Real Estate Taxes 0 0 0 0 0 0.0% 0 0.00 [6] Concessions – There are no concessions being offered. 0.6% Trash Removal 14,054 76 15,186 83 14,054 76 0.07 [7] Non-Revene – There are no non-revenue units.

Water and Sewer 175,966 956 Units 165,973 902 175,966 7.2% 956 0.93 Total Non-Controllable 276,520 1,503 269,855 1,467 321,779 13.2% 1,749 1.71 Reserves 46,000 250 46,000 250 46,000 1.9% 250 0.24 OTHER INCOME Total Expenses 679,767 3,694 656,631 3,569 837,131 34.3% 4,550 4.44 Unless otherwise specified, projected other income line items are equal to May 2022 trailing 12 figures.

Net Operating Income

[8]

% of GPR

1,558,289 8,469 8,742 66.5% 8,826 items. 8.61 Miscellaneous – 1,608,471 Based on May 2022 trailing1,623,970 12 figure, less non-recurring

32

0.11 0.59 0.00 0.07 0.93 1.71 0.24 4.46

1,714,994

67.5%

9,321

9.09

[9]

Management Fee – Based on assumption of 4 percent of the effective gross income.

Payroll – Based on assumption of $1,300 per unit per year. There are a total of 4 employees.

[11]

Repairs and Maintenance – Based on assumption of $400 per unit per year.

[12]

Insurance – Based on assumption of $600 per unit per year. Only the maintenance shed is in a flood zone, at a cost of $574 annually.

[13]

Real Estate Taxes – Based on 100% ad valorem tax abatement. There are no non-ad valorem taxes.

Overlook at Monroe

Historical Revenue

0.01 0.03 0.10 0.54 0.00 0.06 1.27 0.01 0.04 0.03 0.39 0.02 2.51

116 600 0 76 956 1,749 250 4,570

[10]

Reserves – Based on assumption of $250 per unit per year.

10 33 108 556 4 62 1,300 15 39 27 400 18 2,571

0.8% 4.3% 0.0% 0.6% 6.9% 12.7% 1.8% 33.1%

Unless otherwise specified, projected expense line items are equal to May 2022 trailing 12 figures.

[14]

Per SF

21,360 110,400 0 14,054 175,966 321,779 46,000 840,924

EXPENSES

RESERVES

Per Unit

[9]

[10]

[11]

[12] [13]

[14]

THE OVERLOOK AT MONROE RENT LIMITS

Year

1-Bed 60% AMI

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

$615 $615 $615 $620 $645 $645 $666 $683 $690 $690 $690 $690 $690 $690 $690 $690 $720 $781 $818 $859 $933

2-Yr Average 3-Yr Average 5-Yr Average

0.00% 0.00% 0.81% 4.03% 0.00% 3.26% 2.55% 1.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.35% 8.47% 4.74% 5.01% 8.61%

6.81% 6.12% 6.24%

1-Bed FMR

$599 $685 $687 $733 $684 $712 $801 $862 $921 $865 $819 $825 $825 $836 $835 $837 $919 $1,004 $1,064 $1,140 $1,237

14.36% 0.29% 6.70% -6.68% 4.09% 12.50% 7.62% 6.84% -6.08% -5.32% 0.73% 0.00% 1.33% -0.12% 0.24% 9.80% 9.25% 5.98% 7.14% 8.51%

2-Bed 60% AMI

$738 $738 $738 $744 $775 $775 $799 $819 $828 $828 $828 $828 $828 $828 $828 $828 $864 $937 $982 $1,030 $1,120

7.83% 7.21% 8.13%

0.00% 0.00% 0.81% 4.17% 0.00% 3.10% 2.50% 1.10% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.35% 8.45% 4.80% 4.89% 8.74%

1.60% 1.73% 6.25%

2-Bed FMR

$714 $817 $820 $838 $782 $814 $915 $985 $1,052 $988 $936 $983 $983 $997 $1,003 $1,002 $1,096 $1,190 $1,248 $1,321 $1,422

14.43% 0.37% 2.20% -6.68% 4.09% 12.41% 7.65% 6.80% -6.08% -5.26% 5.02% 0.00% 1.42% 0.60% -0.10% 9.38% 8.58% 4.87% 5.85% 7.65%

6.75% 6.12% 7.27%

3-Bed 60% AMI

$853 $853 $853 $859 $895 $895 $923 $947 $957 $957 $957 $957 $957 $957 $957 $957 $997 $1,083 $1,134 $1,191 $1,293

0.00% 0.00% 0.70% 4.19% 0.00% 3.13% 2.60% 1.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.18% 8.63% 4.71% 5.03% 8.56%

6.80% 6.10% 6.22%

3-Bed FMR

$937 $1,072 $1,076 $1,049 $979 $1,019 $1,146 $1,233 $1,317 $1,237 $1,172 $1,311 $1,311 $1,330 $1,332 $1,333 $1,458 $1,576 $1,636 $1,713 $1,827

14.41% 0.37% -2.51% -6.67% 4.09% 12.46% 7.59% 6.81% -6.07% -5.25% 11.86% 0.00% 1.45% 0.15% 0.08% 9.38% 8.09% 3.81% 4.71% 6.65%

1.71% 1.07% 6.53%

$1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1-Bed 60% AMI 1-Bed FMR 2-Bed 60% AMI

2-Bed FMR 3-Bed 60% AMI 3-Bed FMR

Historical Rent Limits

Overlook at Monroe

33

Market Overview

ORLANDO OVERVIEW ORLANDO Sunshine, a warm climate and a favorable tax structure attract numerous visitors, employers and residents to the region. The metro is among the largest and fastest growing in Florida, with a population of 2.6 million people. It is also one of the nation’s most popular tourist destinations and typically draws more than 60 million visitors annually. The Orlando metro encompasses four counties: Osceola, Orange, Seminole and Lake, covering more than 4,000 square miles in central Florida. Numerous lakes are scattered across the region and the topography is generally flat with few impediments to development. Orlando is the area’s largest city, approaching 285,000 citizens, followed by Kissimmee and Sanford, each with fewer than 100,000 people.

METRO HIGHLIGHTS ECONOMIC DIVERSITY While Orlando’s economy has strong business and professional services as well as tourism components, distribution, high-tech, defense contracting and healthcare also are prevalent.

PRO-BUSINESS ENVIRONMENT Florida has low state and local taxes in addition to no state personal income tax, attracting businesses to the region.

JOB AND POPULATION GROWTH Orlando’s population is expected to increase by 215,000 people over the next five years, as job gains outpace the national average.

ORLANDO OVERVIEW ECONOMY    

Key industries in the region include aerospace and defense systems, modeling, simulation and training, digital media, tourism, and biotechnology.

The metro is transforming into a digital media hub, housing hundreds of media companies.

Orlando is a top vacation and business convention destination and is home to theme parks and tourist attractions, which support retail sales and a large hospitality sector.

The local life sciences, biotech and medical technology industries are growing. Lake Nona Medical City is a 650-acre health and life sciences park located in the metro.

MAJOR AREA EMPLOYERS Walt Disney World Co. AdventHealth Orlando Publix Super Markets Inc. Universal Orlando Orlando Health Busch Entertainment Corp.

Lockheed Martin Corp.

Marriott International Darden Restaurants Inc. Starwood Hotels & Resorts Worldwide Inc.

* Estimate, ** Forecast

SHARE OF 2020 TOTAL EMPLOYMENT

4%

MANUFACTURING

20%

TRADE, TRANSPORTATION AND UTILITIES

19%

10%

PROFESSIONAL AND BUSINESS SERVICES

7%

CONSTRUCTION

GOVERNMENT

+

13%

EDUCATION AND HEALTH SERVICES

16%

LEISURE AND HOSPITALITY

2%

INFORMATION

6%

FINANCIAL ACTIVITIES

3%

OTHER SERVICES

ORLANDO OVERVIEW SPORTS

DEMOGRAPHICS   

The metro is expected to add nearly 215,000 people over the next five years and during this period roughly 84,900 households will be formed.

A median age below the U.S. median contributes to a homeownership rate of 61 percent, which is slightly below the national rate.

Millennials, those in the cohort of 20- to 34-year-olds, comprise 22 percent of the population, slightly above the U.S. level of 21 percent.

2020 Population by Age

6%

19%

7%

29%

25%

15%

0-4 YEARS

5-19 YEARS

20-24 YEARS

25-44 YEARS

45-64 YEARS

65+ YEARS

2020 POPULATION:

2020 HOUSEHOLDS:

2020 MEDIAN AGE:

Growth 2020-2025*:

Growth 2020-2025*:

U.S. Median:

2.6M 8.3%

982K 8.6%

37.4 38.2

EDUCATION

2020 MEDIAN HOUSEHOLD INCOME:

$58,200 U.S. Median:

$63,000

QUALITY OF LIFE Orlando residents enjoy a remarkable quality of life, highlighted by a sunny climate, professional sports teams, outdoor recreational activities, cultural venues, world-famous attractions and beaches nearby. The region offers healthcare facilities and exceptional community services such as Orlando Regional Medical Center and AdventHealth Orlando.

Cultural opportunities are offered at the Dr. Phillips Center for the Performing Arts, Orlando Repertory Theatre, the Opera Orlando, the Orlando Ballet and the Bach Festival Society.

Amway Center in downtown is the Orlando Magic’s arena. Large educational institutions in the area include the University of Central Florida and Valencia Community College. * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

ARTS & ENTERTAINMENT

ORLANDO OVERVIEW ORLANDO Employment Trends

Vacancy Moving Toward Record Low As Corporate Relocations Stoke Demand Total Employment (Millions)

1.4

14%

1.3

7%

1.2

0%

1.1

-7%

1.0

13

14

15

16

17

18

19

20

21* 22**

-14%

Supply and Demand Completions/Absorption (000s)

Completions

Net Absorption

Vacancy Rate

20

6%

15

5%

10

4%

5

3%

0

13

14

15

16

17

18

19

20

21* 22**

* Estimate; ** Forecast Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

Rent Trends Average Rent

Y-O-Y Percent Change

2%

Vacancy Rate

Transaction velocity returns in force. Investors remain bullish on Orlando’s apartment sector, as the metro’s swift economic recovery has accelerated deal flow above the pre-pandemic level. Vacancies near historical lows are attracting cross-border and out-of-state buyers seeking stable investments, a trend that will likely remain as apartment fundamentals are projected to tighten further this year. Increased competition for assets elevated sale prices by nearly 50 percent over the past five years, compressing cap rates to the low-5 percent range. Yield-driven buyers find value-add opportunities in outlying areas like Apopka and North Lake County, where entry costs fall well below the metro average, and first-year returns average in the low-7 percent span. Institutional investors are also active, targeting luxury assets in East Orlando and the International Drive area where complexes often garner sale prices above $200,000 per unit.

Y-O-Y Percent Change

Y-O-Y Percent Change

Construction activity tempers despite a rise in rental demand. Vigorous job growth and in-migration trends are fueling record levels of demand in Orlando’s multifamily sector. Amid the largest supply wave in over two decades, renters absorbed over 18,000 units last year, slicing metrowide vacancy to the lowest level in over 20 years. Rental demand is expected to remain elevated in 2022, as population growth and household formation nearly triple the national rate. Additionally, the market’s growing talent pool and the state of Florida’s business-friendly tax rates continue to attract corporate relocations and expansions. Disney, KPMG, and InnovaCare Health are a few notable firms that recently announced plans to expand or move to the metro. Demographic growth across the region prompted developers to increase construction activity over of the past five years. The supply wave, however, is moderating, with deliveries projected to decline this year. Reduced supply pressure coupled with favorable demand drivers will continue to tighten apartment fundamentals in 2022.

Employment

Completions/Absorption

5%

10

4%

5

3%

0

13

14

15

16

17

18

19

20

Vacancy Rate

ORLANDO OVERVIEW

15

2%

21* 22**

2022 MARKET FORECAST

Rent up 5.7%

Investment

Robust demand will outpace construction this year, contracting metrowide vacancy to 2.2 percent. This compression builds off the 280-basis-point decline from last year.

Average Effective Rent

Vacancy down 10 bps

Development activity moderates this year following the largest supply wave in over 20 years. Additions will expand the metro’s inventory by 2.9 percent.

Average Rent $1,600

18%

$1,400

12%

$1,200

6%

$1,000

0%

$800

13

14

15

Rent growth remains strong in 2022 as the average effective rate rises to $1,565 per month, following a 17.7 percent increase registered last year.

16

17

18

19

20

21* 22**

-6%

Sales Trends Average Price

Average Cap Rate

$200

8%

$150

7%

$100

6%

$50

5%

$0

12

13

14

15

16

17

18

* Estimate; ** Forecast Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.

19

20

21*

4%

Average Cap Rate

Many employers plan on expanding or moving to the Lake Nona community, which will likely draw investor interest to South Orange County over the next year.

Y-O-Y Percent Change

Y-O-Y Percent Change

Construction 7,500 units

Rent Trends

Employers will add 72,000 positions in 2022, ranking Orlando among the top metros in the nation for job growth.

Average Price per Unit (000s)

Employment up 5.7%

ORLANDO DEMOGRAPHICS POPULATION 2026 Projection Total Population 2021 Estimate Total Population 2010 Census Total Population 2000 Census Total Population Daytime Population 2021 Estimate HOUSEHOLDS 2026 Projection Total Households 2021 Estimate Total Households Average (Mean) Household Size 2010 Census Total Households 2000 Census Total Households Growth 2021-2026 HOUSING UNITS Occupied Units 2026 Projection 2021 Estimate Owner Occupied Renter Occupied Vacant Persons in Units 2021 Estimate Total Occupied Units 1 Person Units 2 Person Units 3 Person Units 4 Person Units 5 Person Units 6+ Person Units

1 Mile

3 Miles

5 Miles

7,839

49,392

119,298

7,512

47,676

113,432

6,720

43,017

98,549

5,402

31,502

71,154

11,712 1 Mile

61,048 3 Miles

129,746 5 Miles

2,807

18,683

46,325

2,693 2.7

17,977 2.6

43,692 2.5

2,406

16,186

37,721

1,919 4.2% 1 Mile

12,064 3.9% 3 Miles

26,880 6.0% 5 Miles

3,174 3,042 711 1,982 349

20,744 19,937 8,759 9,218 1,961

50,380 47,508 26,164 17,527 3,816

2,693 27.5% 29.0% 18.1% 12.0% 6.7% 6.8%

17,977 26.9% 31.2% 17.4% 13.3% 6.3% 5.0%

43,692 24.9% 34.5% 17.3% 13.7% 5.7% 3.8%

HOUSEHOLDS BY INCOME 2021 Estimate $200,000 or More $150,000-$199,999 $100,000-$149,999 $75,000-$99,999 $50,000-$74,999 $35,000-$49,999 $25,000-$34,999 $15,000-$24,999 Under $15,000 Average Household Income Median Household Income Per Capita Income POPULATION PROFILE Population By Age 2021 Estimate Total Population Under 20 20 to 34 Years 35 to 39 Years 40 to 49 Years 50 to 64 Years Age 65+ Median Age Population 25+ by Education Level 2021 Estimate Population Age 25+ Elementary (0-8) Some High School (9-11) High School Graduate (12) Some College (13-15) Associate Degree Only Bachelor's Degree Only Graduate Degree Population by Gender 2021 Estimate Total Population Male Population Female Population

1 Mile

3 Miles

5 Miles

2.3% 2.1% 6.0% 6.7% 12.7% 12.7% 12.2% 17.4% 27.8% $44,152 $29,285 $15,987 1 Mile

3.1% 4.2% 10.4% 13.3% 16.4% 14.3% 11.0% 11.8% 15.5% $63,708 $46,552 $24,232 3 Miles

5.6% 5.7% 13.7% 15.4% 17.3% 13.3% 9.0% 9.4% 10.6% $82,909 $60,546 $32,169 5 Miles

7,512 34.2% 25.7% 7.6% 11.1% 13.5% 8.0% 29.6

47,676 27.7% 23.0% 8.3% 12.7% 15.8% 12.6% 34.6

113,432 25.4% 20.8% 8.2% 13.4% 17.7% 14.4% 37.3

4,426 8.7% 12.9% 35.3% 18.5% 8.6% 11.6% 4.4%

31,657 5.1% 8.2% 30.1% 20.9% 11.1% 17.1% 7.5%

78,642 3.3% 6.7% 27.8% 20.5% 11.6% 20.5% 9.6%

7,512 46.2% 53.8%

47,676 47.3% 52.8%

113,432 48.4% 51.6%

ORLANDO DEMOGRAPHICS POPULATION

EMPLOYMENT

HOUSEHOLDS

HOUSING

INCOME

EDUCATION

The current year per capita income in your area is $32,169, compared with the U.S. average, which is $36,445. The current year's average household income in your area is $82,909, compared with the U.S. average, which is $94,822.

The number of area residents with an associate degree was higher than the nation’s at 11.6 percent vs. 8.3 percent, respectively.

In 2021, the population in your selected geography is 113,432. The population has changed by 59.4 percent since 2000. It is estimated that the population in your area will be 119,298 five years from now, which represents a change of 5.2 percent from the current year. The current population is 48.4 percent male and 51.6 percent female. The median age of the population in your area is 37.3, compared with the U.S. average, which is 38.4. The population density in your area is 1,446 people per square mile.

There are currently 43,692 households in your selected geography.

The number of households has changed by 62.5 percent since 2000.

It is estimated that the number of households in your area will be 46,325 five years from now, which represents a change of 6.0 percent from the current year. The average household size in your area is 2.5 people.

In 2021, the median household income for your selected geography is $60,546, compared with the U.S. average, which is currently $65,694.The median household income for your area has changed by 57.3 percent since 2000. It is estimated that the median household income in your area will be $63,659 five years from now, which represents a change of 5.1 percent from the current year.

In 2021, 59,412 people in your selected area were employed. The 2000 Census revealed that 61.7 percent of employees are in white-collar occupations in this geography, and 38.3 percent are in blue-collar occupations. In 2021, unemployment in this area was 7.0 percent. In 2000, the average time traveled to work was 22.9 minutes.

The median housing value in your area was $203,112 in 2021, compared with the U.S. median of $227,827. In 2000, there were 18,451 owner-occupied housing units and 8,429 renter-occupied housing units in your area. The median rent at the time was $525.

The selected area in 2021 had a higher level of educational attainment when compared with the U.S averages. Only 9.6 percent of the selected area’s residents had earned a graduate degree compared with the national average of 12.0 percent, and 20.5 percent completed a bachelor’s degree, compared with the national average of 19.5 percent.

The area had more high-school graduates, 27.8 percent vs. 27.2 percent for the nation, but the percentage of residents who completed some college is equal to the average for the nation, at 20.5 percent.

ORLANDO DEMOGRAPHICS

Major Employers

Employees

1

Seminole State College Florida

1,350

2

County of Seminole-Seminole County Sheriffs Off

1,200

3

Publix Super Markets Inc

1,026

4

Superion LLC-Centralsquare Technologies

800

5

County of Seminole-Police Subdivision

800

6

Employee Leasing Solutions Inc

744

7

County of Seminole-Tactical Air Operations

678

8

County of Seminole

678

9

National Drug Ctrl Policy Off-Central Florida Hidta

678

10 Agro Power Development Inc-Village Farms

650

11 Rremc LLC

624

12 Central Fla Regional Hosp Inc-HOSPITAL COPORATION OF

600

13 Walmart Inc-Walmart

500

14 Lockheed Martin Corporation-Lockheed Martin

473

15 Infastructure Svcs Holdings

450

16 Hartford Fire Insurance Co-Hartford

430

17 Sanford City Of Inc

422

18 Rainbow Limousine Inc-Executive Limousine

400

19 United States Postal Service-US Post Office

400

20 Spectra Personnel Services

400

21 Florida Extruders Intl Inc

400

22 County of Seminole-Hazard Mitigation Section

400

23 Grid Power Engineering LLC

389

24 Disney Cruise Vacations Inc

350

25 Aerosim Academy Inc

350

AMERICA

ORLANDO DEMOGRAPHICS

Offering Memorandum

E X C L U S I V E LY L I S T E D BY

EVAN P. KRISTOL EXECUTIVE MANAGING DIRECTOR INVESTMENTS Tel: (954) 245-3459 Evan.Kristol@MarcusMillichap.com LICENSE: FL SL640466