NRG - Spring Aire Investor Package by novu_residential

EXCEPTIONAL VALUE-ADD INVESTMENT OPPORTUNITY

HOOVER, ALABAMA | BIRMINGHAM MSA

70 UNITS | NOT UPDATED SINCE 1973

ABOUT THE TEAM

At Novu Residential Group, we’re forging a new path in residential real estate development. Our purpose is to create experiences and spaces that improve the total wellbeing of both our residents and our partnering communities. Novu’s team of proven placemakers and value creators has more than 50 years of combined experience in sourcing, developing, and managing communities.

TRACK RECORD

Team Experience

Current Projects

*Includes prior history with previous development firm

TEAM

Patrick Jackson CEO & Founder

Bo Flurry Chief Investment Officer

Tony Sorace Director of Development Texas and South Region

Joseph Sedita Director of Development Florida and Atlantic Region

Brian Robbins General Counsel

Rhusabh Mehta Controller

Kaitlyn James Investor Relations

PROJECT TEAM

NOVU RESIDENTIAL GROUP OPERATOR

Novu’s team of proven placemakers and value creators has more than 50 years of combined experience in sourcing, developing, and managing communities. Novu aims to provide a residential living experience like no other through each project they take on, which is why they ensure that their communities adhere to the highest standard, the Novu Standard, through continued on-site management and hospitality.

HARVEST APARTMENT MANAGEMENT MANAGEMENT COMPANY

Harvest Apartment Management provides full service property management services for multifamily developments. Based in Birmingham, Alabama, Harvest takes pride in offering best in class services to its tenants and owners. Harvest’s association to the Harbert family of companies provides access to institutional resources and respected reputation in the commercial real estate industry, elevating Harvest’s brand presence.

FINCH HOUSE DESIGNER

Finch House is a full-service, boutique interior design studio specializing in bringing the warmth and elegance of the hospitality experience to multifamily and commercial spaces. Founded by Lauren Finch, a licensed interior designer with over 10 years of experience, Lauren has worked on a diverse range of projects, from retail and hospitality to multifamily developments, both domestically and internationally. Finch House partners closely with developers to craft timeless, narrative-driven designs that not only create memorable, inviting environments while respecting budget and functional needs. Every space is designed with the goal of making it feel like home – blending creativity with practicality to inspire both clients and their communities.

A UNIQUE OPPORTUNITY IN A THRIVING MARKET

• Well-maintained property positioned for modernization, providing both stability and strong value-add opportunities

• Prime location in Hoover—the 6th largest city in the state and the largest suburb around the city of Birmingham

• High barrier-to-entry market with limited new product: only two properties (less than 500 units) have been delivered in the last 20 years

• Property is zoned for highly-acclaimed Hoover City School District which is ranked 5th in the state for 2024

Situated off Rocky Ridge and Lorna Road, providing residents direct and quick access to all of Hoover’s attractive amenities as well as demand drivers in the greater metro area

PROPERTY SIZE

70 UNITS | 77,098 SF | 1973 YOC

LOCATION

3311 WOODLEY CT HOOVER, AL 35216

VESTAVIA HILLS HOOVER

PELHAM

HELENA

HOMEWOOD

MOUNTAIN BROOK

COMPELLING INVESTMENT OPPORTUNITY

Currently 94% occupied

Acquiring property from long term ownership (40+ years)

Dated management and marketing practices

Strong in-place tenant base with 95% collection in October 2024

Purchase price well below comps and replacement cost

Inefficient operating expense management

Prime Hoover School District

Current rents are $368/unit below average comp rents

High barrier to entry location for new development

Great unit mix and large units

VALUE-ADD STRATEGY

MODERNIZING MANAGEMENT AND OPERATIONS

Tech-driven resident focused solutions

Pet-friendly policies and revenue capture

ENHANCE PROPERTY APPEAL AND RESIDENT EXPERIENCE

Addition of senior property management firm

Improve resident communication via online portal Professionally maintained landscaping Other income fee generation (Out of market fees and utilities re-capture) Modern on-site laundry center Property renaming to drive interest and marketing momentum

Exterior building improvements

Upgrade finishes throughout each unit including:

• New stone countertops

• New lighting package Enhanced online brand and marketing materials

• Kitchen tile backsplash

• New appliance package

• Install vinyl plank flooring

• Modern paint scheme

VALUE-ADD STRATEGY

MODERN EXTERIOR UPDATES

INSPIRATION

BRICK

INVESTOR RETURN HIGHLIGHTS

$197,943 3%

28%

CASH INVESTOR PREFERRED RETURN: 8.0%

ABOVE 8.0% TO 12% SPLIT: 80% INVESTOR/20% SPONSOR

ABOVE 12% SPLIT: 70% INVESTOR/30% SPONSOR

The base case for the hold period is three years. The Sponsor will asses market conditions and property performance in order to maximize investor returns.

An early scenario based on a 2 year hold and later sale based on a 4 year hold is included in the Supplemental. This document includes certain forward-looking projected financial information that is based on current knowledge and estimates, however actual results are not guaranteed and may materially differ from projections. An investor’s investment is subject to complete loss.

SPONSOR FEES:

Acquisition Fee: 2.00% — Charged for sourcing opportunities, arranging financing, facilitating transactions, and developing the investment and operational strategy

Asset Management Fee: 50 bps — Covers execution of the business plan, overseeing daily property operations, managing the property team, and analyzing KPIs to maximize performance

Capital Event Fee (Sale/Refinance): 1.00% — Assessed upon the sale or refinance of the property, calculated as 1% of the sale price or outstanding loan balance in the case of a refinance

RENT COMPARABLES

1 BEDROOM COMPARABLES

2 BEDROOM COMPARABLES

HAWTHORNE

ROLLINGWOOD

SALES COMPARABLES

LOCATION

GEORGETOWN PARK NEIGHBORHOOD

Spring Aire resides in the Georgetown Park neighborhood. Georgetown Lake Park is within walking distance; the three-acre lake is surrounded by a lighted track with wooden walkway and playground.

VESTAVIA HILLS

The Vestavia Hills neighborhood to the east of Spring Aire boasts an average household income of over $173,000 and an average single family home value of over $550,000.

3 4 5 6

MOSS ROCK PRESERVE

The Preserve neighborhood to the west of Spring Aire boasts an average household income of over $180,000 and an average single family home value of nearly $500,000.

HOOVER COUNTRY CLUB

The Hoover Country Club features an 18-hole championship golf course. The surrounding neighborhood boasts an average household income of more than $148,000 and an average single family home value of over $405,000.

RIVERCHASE GALLERIA & PATTON CREEK

Spring Aire is near several shopping centers including the Riverchase Galleria (2.4M SF; 200+ stores and restaurants) and Patton Creek (600,000 SF; 59 retailers). The Galleria includes the region’s only Costco and is the largest enclosed shopping center in Alabama.

MAJOR ROADWAYS

The subject property is conveniently located near three of the city’s major thoroughfares—I-65 (128,632 cars/day), I-459 (123,507 cars/day), and Hwy-31 (37,330/cars day). Residents are less than 1.5 miles from 234 nearby retail storefronts.

53,867

$139,236

$434,726