WASHINGTON STREET APARTMENTS

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1 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD Brooks Healy Advisor brooks.healy@svn.com Collin Locklear Associate Advisor collin.locklear@svn.com Justin Verner Senior Advisor justin.verner@svn.com SVN REALSITE 3600 CLIPPER MILL RD., SUITE 205, BALTIMORE, MD OFFERING MEMORANDUM

2 PROPERTY INFORMATION 3 Property Summary Property Description Complete Highlights Additional Photos LOCATION INFORMATION 8 Area Description Area Map Regional Map FINANCIAL ANALYSIS 12 Rent Roll Financial Summary Income & Expenses Unit Mix Summary RENT COMPARABLES 17 Rent Comps Rent Comps Summary Rent Comps Map SALE COMPARABLES 22 Sale Comps Sale Comps Summary Sale Comps Map DEMOGRAPHICS 27 Demographics Report Demographics Map Floor Plans Back Page WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST., BALTIMORE, MD OFFERING MEMORANDUM

3 1 PROPERTY INFORMATION 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 3

communities Close proximity to major employers including Johns Hopkins, Kennedy Krieger, and Exelon 2016 gut renovated, turn key asset Luxury

4 Property Summary OFFERING SUMMARY Sale Price: $699,000 Number Of Units: 4 Cap Rate: 6.69% NOI: $46,769 Lot Size: 0 SF Year Built: 1900 PROPERTY HIGHLIGHTS Located in the premier neighborhood of Fells Point Upscale neighboring communities Close proximity to major employers including Johns Hopkins, Kennedy Krieger, and Exelon 2016 gut renovated, turn key asset Luxury finishes Lead-free Building Size: 4,090 SF Zoning: R-8 Market: Submarket: Fells Point Upper Fells Point Price / SF: $ WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 4

Property Description PROPERTY OVERVIEW The Apartments at 207 South Washington Street represent an opportunity to acquire a 2016 gut renovated, turn-key asset in desirable upper Fell's

Each unit contains an open living space with new hardwood floors, carpeted bedrooms, ceramic tile bathrooms, modern kitchens with granite counter tops and stainless steel appliances,

5 Property Description PROPERTY OVERVIEW The Apartments at 207 South Washington Street represent an opportunity to acquire a 2016 gut renovated, turn-key asset in desirable upper Fell's Point. The property is comprised of (2) 1 Br-1 Ba units and (2) 2 Br-2 Ba units with an average rent of $1,600. Each unit contains an open living space with new hardwood floors, carpeted bedrooms, ceramic tile bathrooms, modern kitchens with granite counter tops and stainless steel appliances, in-unit laundry, central HVAC, and a rooftop deck for tenant use. The property has updated electric and plumbing and replacement vinyl windows. Certified lead free property. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 5

Complete Highlights SALE HIGHLIGHTS 2016 Gut Renovation Luxury Finishes Granite Countertops

Electric New Vinyl Windows (2016) Central HVAC in Each Unit Roof and Mechanicals Installed

Contained ECONOMIC HIGHLIGHTS $1,600 Average Monthly Rent 100% Occupancy Potential for 96.

6 Complete Highlights SALE HIGHLIGHTS 2016 Gut Renovation Luxury Finishes Granite Countertops Stainless Steel Appliances Hardwood Floors Ceramic Tile Bathrooms Updated Plumbing and Electric New Vinyl Windows (2016) Central HVAC in Each Unit Roof and Mechanicals Installed in 2016 Shared Rooftop Deck Laundry In Unit Centrally Located in Fells Point All Units Self Contained ECONOMIC HIGHLIGHTS $1,600 Average Monthly Rent 100% Occupancy Potential for 96.5% LTV Financing WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 6

7 Additional Photos WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 7

8 2 LOCATION INFORMATION 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 8

This prominent neighborhood is nestled on the outer harbor and roughly just two miles from Baltimore's downtown district. With a Walk Score of 98, this neighborhood is ranked a "Walker's Paradise".

9 Area Description LOCATION OVERVIEW Washington Street Apartments are located in the Southeast Baltimore neighborhood of Fells Point. Established in 1763, this historic neighborhood contains an abundance of boutiques, bars, restaurants, and live music that are accented with beautiful cobblestone streets. This prominent neighborhood is nestled on the outer harbor and roughly just two miles from Baltimore's downtown district. With a Walk Score of 98, this neighborhood is ranked a "Walker's Paradise". The neighborhood sits adjacent to the premier waterfront neighborhoods of Canton and Harbor Point. At the conclusion of development, Harbor Point will feature three million square feet of mixed-use space on twenty-seven acres, including nine and a half acres of waterfront parks. The top employer of the area is the world-renowned Johns Hopkins Hospital, which is separated by just a few blocks from the subject property. Johns Hopkins has sat comfortably as the top-ranked hospital in the nation, per US News & World Report, for the past 22 years and employs 19,340 people. In addition, Johns Hopkins also has four graduate schools located in the area: the School of Medicine, School of Nursing, Bloomberg School of Public Health, and Carey School of Business. Kennedy Krieger is another major employer of the area, employing roughly 2,417 individuals. Krieger is an internationally recognized institution which seeks to improve the lives of children and adults with developmental disabilities. Other major employers in the area include Exelon, H&S Bakery, and Laureate Education. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 9

Area Map Ret ail/ Rest au r an t s Top Ar ea Em ployer s Broadway Market redevelopment, many independent, local boutiques and Zagat-rated restaurants Johns Hopkins Hospital, Exelon, Kennedy Krieger

Charm City Circulator and water taxi stops in the neighborhood.

10 Area Map Ret ail/ Rest au r an t s Top Ar ea Em ployer s Broadway Market redevelopment, many independent, local boutiques and Zagat-rated restaurants Johns Hopkins Hospital, Exelon, Kennedy Krieger Institute, H&S Bakery, Laureate Education, Morgan Stanley Hot els Com m u t in g The Sagamore Pendry, The Four Seasons, Admiral Fells Inn, The Inn at Henderson Wharf Easy access to I-83 and I-95. Charm City Circulator and water taxi stops in the neighborhood. Edu cat ion Johns Hopkins University's School of Medicine, School of Nursing, Bloomberg School of Public Health, and Carey Business School Kennedy Krieger Institute 5 2. JHU School of Medicine 3. JHU Bloomberg School of Public Health 4. Johns Hopkins Hospital 6 5. JHU School of Nursing 6. Patterson Park WASHINGTON STREET APARTMENTS 7. Inner Harbor 8. Laureate Education 9. Whole Foods 10. H&S Bakery Four Seasons Hotel JHU Carey School of Business 13. Exelon 14. Fells Point Farmers Market Sagamore Pendry Hotel 15

11 Regional Map Washington Street Apartments WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 11

12 3 FINANCIAL ANALYSIS 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 12

13 Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START CURRENT RENT CURRENT RENT (PER SF) Current $1,450 $ Current $1,350 $ ,100 Current $1,850 $ ,100 Current $1,750 $1.59 Totals/Averages 3,500 $6,400 $1.83 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 13

14 Financial Summary INVESTMENT OVERVIEW FINANCIAL SUMMARY Price $699,000 Price per Unit $174,750 GRM 9.1 CAP Rate 6.7% Cash-on-Cash Return (yr 1) 7.94 % Total Return (yr 1) $23,743 Debt Coverage Ratio 1.52 OPERATING DATA FINANCIAL SUMMARY Gross Scheduled Income $76,800 Other Income - Total Scheduled Income $72,960 Vacancy Cost $3,840 Gross Income $69,120 Operating Expenses $26,190 Net Operating Income $46,769 Pre-Tax Cash Flow $15,908 FINANCING DATA FINANCIAL SUMMARY Down Payment $200,250 Loan Amount $498,750 Debt Service $30,861 Debt Service Monthly $2,571 Principal Reduction (yr 1) $7,834 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 14

15 Income & Expenses INCOME SUMMARY FINANCIAL SUMMARY PER UNIT Apartment Rental Income $76,800 $19,200 Vacancy/Bad Debt (Est. 5%) -$3,840 -$960 Gross Income $72,960 $18,240 EXPENSE SUMMARY FINANCIAL SUMMARY PER UNIT Taxes (July 1, 2018-June 30, 2019) $11,778 $2,944 Insurance (T-12) $2,000 $500 Gas & Electric (Per BGE) $1,020 $255 Water (Per Last Water Bill) $2,042 $510 Repairs & Maintenance (Est. $500/Unit/Yr) $2,000 $500 Management Fees (Est. 6%) $4,377 $1,094 Licenses & Permits ($65/Unit/Yr) $260 $65 Cleaning (Est.) $600 $150 Leasing (Est. 1/3 Unit Turn/Yr at 1 Months Avg Rent) $2,112 $528 Gross Expenses $26,190 $6,547 Net Operating Income $46,769 $11,692 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 15

16 Unit Mix Summary UNIT TYPE COUNT % TOTAL SIZE (SF) RENT MIN. RENT MAX RENT RENT/SF 1 BR, 1 BA $1,400 $1,350 $1,450 $ BR, 2 BA ,100 $1,800 $1,750 $1,850 $1.64 Totals/Averages 4 100% 3,500 $6,400 $6, $6, $1.83 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 16

17 4 RENT COMPARABLES 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 17

Rent Comps SUBJECT PROPERTY 207 S Washington St., Year Built: Avg. Rent/SF: 1900 $1.83 Bldg Size: 4,090 SF No. Units: 4 Avg. Size: 875 SF Avg. Rent: $1,600 1 FACTORY APARTMENTS 508 S Ann St.

18 Rent Comps SUBJECT PROPERTY 207 S Washington St., Year Built: Avg. Rent/SF: 1900 $1.83 Bldg Size: 4,090 SF No. Units: 4 Avg. Size: 875 SF Avg. Rent: $1,600 1 FACTORY APARTMENTS 508 S Ann St. Year Built: No. Units: Avg. Rent: $2,075 Building SF: 14,500 SF Lot Size: Avg. Size: 1,100 SF Avg. Rent/SF: $1.89 5,696 Acres 1 2 Br-2 Ba unit in recently renovated property with elevator, secure entry, stainless steel appliances, hardwood floors, and granite counter tops E LOMBARD ST E Lombard St. Building SF: 900 SF Lot Size: 0 Acres No. Units: 1 Avg. Size: 900 SF Avg. Rent/SF: $1.67 Avg. Rent: $1,500 2 All Brand New HVAC, Full Kitchens, Energy Efficient Appliances, In-Unit Laundry w/d, bathrooms with custom tile showers, Keyless Unit entry and access to private, secure courtyard and garden amenity space. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 18

Rent Comps 3 123 S CHESTER ST. 123 S Chester St. Year Built: 1936 Building SF: 1,100 SF Lot Size: 1,018 Acres Avg. Size: 1,100 SF Avg. Rent/SF: $1.77 Avg.

19 Rent Comps S CHESTER ST. 123 S Chester St. Year Built: 1936 Building SF: 1,100 SF Lot Size: 1,018 Acres Avg. Size: 1,100 SF Avg. Rent/SF: $1.77 Avg. Rent: $1, Br-2 Ba units with luxurious finishes including granite countertops and stainless steel appliances. Landlord pays all utilities. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 19

20 Rent Comps Summary RENT COMPS RENT/SF AVAILABLE SF BLDG SF # OF UNITS Factory Apartments 508 S Ann St E Lombard St E Lombard St. 123 S Chester St. 123 S Chester St. $1.89 1,100 SF 14,500 SF 13 $ SF 900 SF 1 $1.77 1,100 SF 1,100 SF - RENT/SF AVAILABLE SF BLDG SF # OF UNITS Totals/Averages $1.78 1,033 SF 5,500 SF 7 WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 20

Rent Comps Map SUBJECT PROPERTY 207 S Washington St., FACTORY APARTMENTS 1 508 S Ann St. 1839 E LOMBARD ST. 2 1839 E Lombard St.

21 Rent Comps Map SUBJECT PROPERTY 207 S Washington St., FACTORY APARTMENTS S Ann St E LOMBARD ST E Lombard St. 123 S CHESTER ST S Chester St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 21

22 5 SALE COMPARABLES 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 22

Sale Comps SUBJECT PROPERTY 207 S Washington St., Sale Price: $699,000 Year Built: 1900 Building SF: 4,090 SF Price PSF: $170.90 No.

Units: 3 Price / Unit: $198,333 Closed: 04/21/2015 1 2 1915 E PRATT ST.

23 Sale Comps SUBJECT PROPERTY 207 S Washington St., Sale Price: $699,000 Year Built: 1900 Building SF: 4,090 SF Price PSF: $ No. Units: 4 Cap: 6.69% GRM: 9.1 NOI: $46, FLEET ST. Sale Price: $595,000 Year Built: 1830 Building SF: 3,420 SF Price PSF: $ No. Units: 3 Price / Unit: $198,333 Closed: 04/21/ E PRATT ST. Sale Price: $405,000 Year Built: 1900 Building SF: 2,200 SF Price PSF: $ No. Units: 3 Price / Unit: $135,000 Closed: 10/01/ WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 23

24 Sale Comps 3 FACTORY APARTMENTS 508 S Ann St. Sale Price: $2,900,000 Year Built: 1910 Building SF: 14,500 SF Price PSF: $ No. Units: 13 Price / Unit: $223,076 Closed: 02/20/ WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 24

25 Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/UNIT # OF UNITS Washington Street Apartments 207 S Washington St. $699,000 4,090 SF $174,750 4 SALE COMPS PRICE BLDG SF PRICE/UNIT # OF UNITS CLOSE Fleet St. Baltimore, MD E Pratt St. Baltimore, MD Factory Apartments 508 S Ann St. $595,000 3,420 SF $198, /21/2015 $405,000 2,200 SF $135, /01/2017 $2,900,000 14,500 SF $223, /20/2018 PRICE BLDG SF PRICE/UNIT # OF UNITS CLOSE Totals/Averages $1,300,000 6,707 SF $205, WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 25

Sale Comps Map SUBJECT PROPERTY 207 S Washington St., 1828 FLEET ST. 1 Baltimore, MD 21231 1915 E PRATT ST.

26 Sale Comps Map SUBJECT PROPERTY 207 S Washington St., 1828 FLEET ST. 1 Baltimore, MD E PRATT ST. 2 Baltimore, MD FACTORY APARTMENTS S Ann St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 26

27 6 DEMOGRAPHICS 207 S Washington St. WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 27

28 Demographics Report 0.25 MILES 0.5 MILES 1 MILE Total population 6,462 14,447 41,049 Median age Median age (male) Median age (female) Total households 2,414 5,853 16,706 Total persons per HH Average HH income $90,153 $80,583 $70,503 Average house value $335,854 $320,379 $293,033 * Demographic data derived from 2010 US Census WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 28

Demographics Map POPULATION 0.25 MILES 0.5 MILES 1 MILE Total population 6,462 14,447 41,049 Median age 30.2 31.0 32.4 Median age (Male) 32.9 32.3 34.0 Median age (Female) 29.3 30.6 30.

29 Demographics Map POPULATION 0.25 MILES 0.5 MILES 1 MILE Total population 6,462 14,447 41,049 Median age Median age (Male) Median age (Female) HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE Total households 2,414 5,853 16,706 # of persons per HH Average HH income $90,153 $80,583 $70,503 Average house value $335,854 $320,379 $293,033 * Demographic data derived from 2010 US Census WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 29

30 Floor Plans (NOT TO SCALE) WASHINGTON STREET APARTMENTS 207 S WASHINGTON ST. BALTIMORE, MD SVN RealSite Page 30

3600 Clipper Mill Rd., Suite 205 Baltimore, MD 21211 443.523.6865 www.

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