28 ON THOMAS E. THOMAS RD, PHOENIX, AZ OFFERING MEMORANDUM

Transcription

1 28 ON THOMAS E. THOMAS RD, PHOENIX, AZ OFFERING MEMORANDUM

2 Presented by: NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com Ryan Boyle SENIOR ASSOCIATE T C rboyle@northmarq.com NorthMarq Capital Alex Quenzler VICE PRESIDENT-PRODUCER T C aquenzler@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES THIS DOCUMENT/ HAS BEEN PREPARED BY NORTHMARQ MULTIFAMILY FOR ADVERTISING AND GENERAL INFORMATION ONLY. NORTHMARQ MULTIFAMILY MAKES NO GUARANTEES, REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, REGARDING THE INFORMATION INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF CONTENT, ACCURACY AND RELIABILITY. ANY INTERESTED PARTY SHOULD UNDERTAKE THEIR OWN INQUIRIES AS TO THE ACCURACY OF THE INFORMATION. NORTHMARQ MULTIFAMILY EXCLUDES UNEQUIVOCALLY ALL INFERRED OR IMPLIED TERMS, CONDITIONS AND WARRANTIES ARISING OUT OF THIS DOCUMENT AND EXCLUDES ALL LIABILITY FOR LOSS AND DAMAGES ARISING THERE FROM. THIS PUBLICATION IS THE COPYRIGHTED PROPERTY OF NORTHMARQ MULTIFAMILY AND/ OR ITS LICENSOR(S) ALL RIGHTS RESERVED.

3 TABLE OF CONTENTS PROPERTY INFORMATION... 4 RENT COMPARABLES FINANCIAL ANALYSIS SALES COMPARABLES... 30

4 28 ON THOMAS

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6 OFFERING Price $3,700,000 Price Per Unit $137,037 Price Per Square Foot $ Terms Cash - Fee Simple MECHANICAL Heating / Cooling Hot Water Electricity Water / Sewer Individual Roof Mounted Units Individual Paid by Tenant Partially Reimbursed by Tenant SITE DESCRIPTION Apartment Community 28 on Thomas Location E. Thomas Rd. Phoenix, AZ Total Units 27 Year Built 1959/2015 Net Rentable Square Feet 21,610 Number of Buildings 2 Number of Stories 2 Sub-market Central Phoenix Land Size.70 Acres Density Units Per Acre Parking 12 Uncovered Spaces 16 Covered Spaces CONSTRUCTION Style Garden Style Foundation Concrete Framing Block Exterior Painted Brick Roof Pitched Composite Shingle Parking Surface Asphalt PROPERTY TAXES Number of Parcels 2 Tax Parcel Number , Property Tax $7,423 6 NORTHMARQ MULTIFAMILY

7 PROPERTY SUMMARY UNIT TYPE # OF UNITS % OF COMPLEX SQUARE FEET RENT RENT / SF AVERAGE IN-PLACE RENT AVERAGE RENT / SF TOTAL RENT TOTAL AVERAGE RENT Studio % 660 $790 $1.20 $660 $1.00 $790 $660 1BD/1BA % 750 $875 $1.17 $753 $1.00 $14,000 $12,051 2BD/1BA % 850 $1,000 $1.18 $952 $1.12 $7,000 $6,665 2BD/2BA % 1,000 $1,100 $1.10 $965 $0.97 $3,300 $2,895 TOTAL / AVERAGE % 800 $929 $1.16 $825 $1.03 $25,090 $22,272 INFORMATION AS OF: 10/01/2018 UNIT MIX BREAKDOWN 2BD/2BA 11% Studio 4% 2BD/1BA 26% 1BD/1BA 59% 28 ON THOMAS APARTMENTS 7

8 ASSET HIGHLIGHTS > > Major capital improvements were already addressed by current owner. This provides new investors the opportunity to focus on operations. > > Strategically located in the heart of Metropolitan Phoenix s business and cultural center, the property is in the hub of Midtown and Uptown Phoenix. > > Close to three different major freeways (less than one mile to the I-10/Papago Freeway and the SR-51/Piestewa Freeway and three miles to the I-17/Black Canyon Freeway). > > The area around the property is comprised of a dense population and high employment demographics (180,000 residents and 215,000 employees within three miles). > > The asset features a beneficial position with frontage along Thomas Road, with an average of 60,000 vehicles going through the intersection of 12th/16th Street and Thomas Road on a daily basis. 8 NORTHMARQ MULTIFAMILY

9 HIGHLIGHTS VALUE-ADD OPPORTUNITIES > > Installation of landlord owned in-unit washer and dryer will generate additional income ($50-$75 rent premium). > > Improve utility reimbursement plan. Current owner charges $30 per month on average for utilities in addition to the rent. Similar properties charge up to $100. > > Installing additional covered parking spaces can generate additional ancillary income. > > Increase current asking rents - currently below submarket average. 28 ON THOMAS APARTMENTS 9

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11 PROPERTY PHOTOS 28 ON THOMAS APARTMENTS 11

12 AREA DESCRIPTION 28 on Thomas Apartments is located at East Thomas Road in the desirable Midtown Phoenix area. The property is situated immediately east of the southeast corner of Thomas Road and 12th Street with easy access to State Route 51 and Interstate-10. There is an abundance of manufacturing and warehousing employment nearby along Interstate-17, three miles west of the property, creating major housing demand in the area. 28 on Thomas is conveniently located near the Metro light rail with a station located just one and a half miles west at the intersection of Central Avenue and Thomas Road, providing easy access to Downtown Phoenix, Tempe and Mesa. Proximity to the light rail has historically been shown to improve property values as it encourages redevelopment and gentrification of the surrounding areas. The immediate neighborhood surrounding 28 on Thomas comprises a mixture of single-family homes, multifamily projects, and commercial developments. Neighborhood grocery store options include the AJ s Fine Foods-anchored Uptown Plaza at Central Avenue and Camelback Road and the Bashas -anchored shopping center at 7th Street and Missouri Avenue. Nearby hospitals within a four mile radius include VA Medical Center, HonorHealth John C. Lincoln Hospital, Phoenix Children s Hospital, St. Joseph s Hospital, and The Arizona Heart Hospital. There are a number of shopping centers surrounding 28 on Thomas including the JCPenney and Target anchored Christown Spectrum Mall, less than three miles northwest of the property, and the Old Navy and Best Buy-anchored Camelback Colonnade Shopping Center, less than two miles northeast. The upscale Biltmore Fashion Park is located at the intersection of 24th Street and Camelback Road, in the city s financial district, and features high-end stores and restaurants that include Saks Fifth Avenue, Macy s, J. Crew, Seasons 52 and True Food Kitchen. 28 on Thomas is minutes from Arizona State University and Grand Canyon University. Arizona State University has three campuses in the Phoenix Metropolitan Area that included an enrollment of over 90,000 undergraduates in Grand Canyon University (2018 on-campus enrollment: 20,500 and 2018 overall enrollment: 75,000) is aggressively growing their presence as an educational institution and is currently undergoing a campus expansion project that will include adding a variety of residence halls, classroom buildings, dining facilities and student amenities. 12 NORTHMARQ MULTIFAMILY

13 28 ON THOMAS AREA BREAKDOWN AREA INFORMATION 365,000 WORKFORCE SOURCE: COSTAR/ 5-MILE RADIUS 30,000 BUSINESSES SOURCE: COSTAR/ 5-MILE RADIUS 60,000 TRAFFIC COUNT SOURCE: COSTAR/ EAST & WEST ON THOMAS 35 AVERAGE AGE SOURCE: COSTAR/ 1-MILE RADIUS $315,000 SF HOME MEDIAN LIST PRICE SOURCE: TRULIA/85014 $44,250 MEDIAN HOUSEHOLD INCOME SOURCE: COSTAR/ 1-MILE RADIUS 8.5% POPULATION GROWTH SOURCE: COSTAR/ 1-MILE RADIUS 94% SUB-MARKET OCCUPANCY SOURCE: COSTAR/ 28 ON THOMAS SUBMARKET RENTS INCREASED OVER 33% SINCE 2015 SUBMARKET RENT PER UNIT SUBMARKET RENT PER SQUARE FOOT $1,112 $1.57 $834 $ ON THOMAS APARTMENTS 13

14 NUMBER OF JOBS IN THE AREA ±20,500 JOBS WITHIN A ONE MILE RADIUS FROM THE PROPERTY ±362,500 JOBS ±215,00 JOBS WITHIN A THREE MILE RADIUS FROM THE PROPERTY ±362,500 JOBS WITHIN A FIVE MILE RADIUS FROM THE PROPERTY ±215,000 JOBS ±20,500 JOBS 2 8 ON THOMAS 1 MILE 3 MILES N 14 NORTHMARQ MULTIFAMILY 5 MILES

15 MIDTOWN / UPTOWN PHOENIX Dynamic neighborhood with trendy shops and restaurants. 28 ON THOMAS 28 ON THOMAS APARTMENTS 15

16 Midtown Phoenix Light Rail Stations Phoenix Country Club Thomas Road 12th Street 2 8 ON THOMAS N 16 NORTHMARQ MULTIFAMILY

17 AREA HIGHLIGHTS 28 ON THOMAS IS WITHIN EASY ACCESS TO: > > Sky Harbor International Airport one of the top ten busiest airports in the nation with more than 100,000 passengers daily, over 31,000 employees & a daily economic impact of $90 million. > > Metrocenter Mall million square foot super-regional shopping mall in northwest Phoenix with over 100 retailers and restaurants. Currently being transformed by initiating a new Planned Urband Development (PUD) Zoning Overlay to accommodate a 2,700,000 square feet mixed-use environment, including office, medical and residential units. New 148,000 square feet Walmart Supercenter opened July > > Desert Ridge Marketplace - premier shopping and entertainment destination with over 110 retailers and restaurants. > > Arrowhead Towne Center - anchored by Macy s, Sears, Dillard s, JCPenney, and AMC Theatres and is home to 132 tenants. > > Paradise Valley Mall - anchored by Macy s, Sears, Dillard s, JCPenney, and Costco and is home to 160 tenants. > > Biltmore Fashion Park - over 600,000 square feet of luxury outdoor retail and dining. > > HonorHealth Deer Valley Medical Center - Magnet status 204-bed full service hospital. > > HonorHealth John C. Lincoln Medical Center - Magnet status 266-bed full service hospital. > > Banner Thunderbird Medical Center bed hospital ranked 6th best in Phoenix metro area. > > Abrazo Scottsdale Campus bed acute care hospital. > > Phoenix Children s Hospital bed hospital currently undergoing a $60M expansion project which will accommodate up to 100,000 patients per year (existing capacity is 22,000 patients). 28 ON THOMAS APARTMENTS 17

18 28 ON THOMAS IS WITHIN EASY ACCESS TO: > > Thunderbird School of Global Management - top ranked global business school with over 1,000 students enrolled (recently acquired by ASU). > > Midwestern University - top physician assistant program (#20) in the country with 3,000 students enrolled. > > Grand Canyon University - rapidly expanding educational institution with over 74,000 students enrolled. > > Arizona State University Main Campus largest in the nation with over 100,000 students enrolled. > > SkySong - a 1.2 million square foot mixed-use project with more than 1,000 employees and 50 companies. > > New $1.4 billion Phoenix Metro Light Rail connecting Tempe to Mesa, Downtown & Greater Phoenix. > > Downtown Phoenix - #1 employment center with over $3 billion in new development planned or underway. > > Camelback Corridor/Biltmore area - 12,400+ employees and over 100 companies (20th Street to 32nd Street along Camelback Road). > > South Scottsdale features dozens of restaurants and bars, the 1.6-million square foot Scottsdale Fashion Square Mall. > > Mill Avenue District (Downtown Tempe) unique urban environment with countless commercial, retail & office developments and over 30,000 workers. > > Tempe Town Lake & Beach Park over 6 million square feet in new development planned, under construction or recently completed including Marina Heights, a $600M, 20-acre, mixed-use development that will include five office buildings leased by State Farm, retail amenities and a 10-acre plaza to be constructed over the next four years. 18 NORTHMARQ MULTIFAMILY

19 AREA HIGHLIGHTS 2 8 ON THOMAS 9 Central Office Cooridor 6 7th Street 8 7 Thomas Road N 2 1 NOTED NEARBY LOCATIONS: 1. Melrose Marketplace 2. Fresh & Easy 3. Safeway 4. Basha s 5. Phoenix College 6. Encanto Golf Course 7. St. Joseph s Hospital & Medical Center 8. Park Central Shopping Center 9. Phoenix Country Club 10. Phoenix VA Medical Center 11. Steele Indian School Park 28 ON THOMAS APARTMENTS 19

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21 PHOENIX MSA REGIONAL MAP Wildlife World Zoo N Del E Web Hospital Luke Air Force Base Wigwam Golf Course Estrella Mountain Community College West Valley Hospital Cancer Treatment Center of America Phoenix Goodyear Airport Glendale Municipal Airport Gateway Pavillions Retail Center Avondale AutoMall Westgate City Center University of Phoenix Stadium Banner Estrella Medical Center Arrowhead Towne Center Peoria Stadium Desert Sky Mall Glendale Community College Canal Industrial Park Thunderbird School of Global Management Banner Thunderbird Medical Center Maryvale Golf Course Maryvale Baseball Park Freeport Industrial Center ASU - West Campus HonorHealth Deer Valley Hospital MetroCenter Mall Grand Canyon University Christown Spectrum Mall HonorHealth John C. Lincoln Hospital Phoenix VA Medical Center St. Joseph s Hospital SITE Downtown Phoenix Paradise Valley Community College Paradise Valley Hospital Biltmore Fashion Park Phoenix Children s Hospital Phoenix Sky Harbor Airport Paradise Valley Mall Scottsdale Sports Complex Scottsdale Quarter Kierland Scottsdale Commons Airport Papago Park / Zoo Gainey Ranch McCormick Ranch Salt River Fields at Talking Stick Scottsdale Fashion Square SkySong Tempe Marketplace Arizona State University 28 ON THOMAS APARTMENTS 21

22 Central Avenue Corridor 120,000+ employees 12,000+ employees 110 companies Paradise Valley Neighborhood Median Single Family Sale Price: $1.4M ($362/SF) Arcadia Neighborhood Median Single Family Sale Price: $1.1M ($331/SF) Arcadia Lite Single family residential prices range SITE N 22 NORTHMARQ MULTIFAMILY

23 BUCK & RIDER THE ESPLANADE E CAMPBELL AVE N 16TH ST E INDIAN SCHOOL RD MAPLE HOUSE REDEVELOPMENT SITE 385 bed hospital undergoing a $60M expansion project E THOMAS RD 28 ON THOMAS APARTMENTS 23

24 NO. PROPERTY YEAR BUILT UNITS UNIT SIZE AVG. SF PHYSICAL OCCUPANCY RENT/ UNIT NET RENT/ UNIT NET MANAGED BY S 28 on Thomas E. Thomas Rd. Phoenix, AZ % $929 $1.16 $929 $1.16 Owner The Phoenix 3633 N. 6th Ave. Phoenix, AZ Midtown 3626 N. 5th Ave. Phoenix, AZ Plaza E. Earll Dr. Phoenix, AZ % $1,003 $1.07 $1,003 $1.07 Owner % $1,101 $1.26 $1,101 $1.26 Shelton-Cook % $826 $1.36 $826 $1.36 ConAm Bonfire Apartments E. Mariposa Street Phoenix, AZ Revival on Indian School 930 W. Indian School Rd. Phoenix, AZ De Novo on Roanoke 67 E. Roanoke Ave Phoenix, AZ Coronado Flats 1335 E. Thomas Rd. Phoenix, AZ % $742 $1.08 $742 $1.08 Dunlap & Magee % $1,167 $1.11 $1,167 $1.11 P.B. Bell % $674 $1.42 $674 $1.42 On Q % $1,004 $1.26 $1,004 $1.26 Owner Average % $931 $1.20 $931 $ NORTHMARQ MULTIFAMILY

25 RENT COMPARABLES SITE 7 N 6 28 ON THOMAS APARTMENTS 25

26 28 on Thomas E. Thomas Rd. Phoenix, AZ WALK SCORE 49 The Phoenix 3633 N. 6th Ave. Phoenix, AZ WALK SCORE 57 OWNER: Anthony & Evelyn Giacone MANAGED BY: Owner UNIT TYPE UNITS SF TRANSIT SCORE 47 NET NET Studio $790 $1.20 $790 $1.20 1BD/1BA $875 $1.17 $875 $1.17 2BD/1BA $1,000 $1.18 $1,000 $1.18 2BD/2BA $1,100 $1.10 $1,100 $1.10 TOTAL/AVG $929 $1.16 $929 $1.16 S OWNER: Robson Associates MANAGED BY: Owner UNIT TYPE UNITS SF TRANSIT SCORE 55 NET NET Studio $745 $1.66 $745 $1.66 1BD/1BA $875 $1.22 $875 $1.22 2BD/2BA $975 $0.99 $975 $0.99 3BD/2BA $1,275 $1.06 $1,275 $1.06 TOTAL/AVG $1,003 $1.07 $1,003 $ Midtown 3626 N. 5th Ave. Phoenix, AZ WALK SCORE 73 Plaza E. Earll Dr. Phoenix, AZ WALK SCORE 60 OWNER: Capital Real Estate MANAGED BY: Shelton-Cook UNIT TYPE UNITS SF TRANSIT SCORE 56 NET NET 1BD/1BA $1,005 $1.41 $1,005 $1.41 2BD/1.5BA $1,065 $1.19 $1,065 $1.19 2BD/2BA $1,225 $1.17 $1,225 $1.17 3BD/2BA $1,265 $1.03 $1,265 $1.03 TOTAL/AVG $1,101 $1.26 $1,101 $ OWNER: ColRich MANAGED BY: ConAm UNIT TYPE UNITS SF TRANSIT SCORE 58 NET NET 1BD/1BA $825 $1.38 $825 $1.38 1BD/1.5BA $835 $1.19 $835 $1.19 TOTAL/AVG $826 $1.36 $826 $ NORTHMARQ MULTIFAMILY

27 RENT COMPARABLES DETAILS Bonfire Apartments E. Mariposa Street Phoenix, AZ WALK SCORE 79 Revival on Indian School 930 W. Indian School Rd. Phoenix, AZ WALK SCORE 75 OWNER: Marcher Holdings USA MANAGED BY: Dunlap & Magee UNIT TYPE UNITS SF TRANSIT SCORE 54 NET NET 1BD/1BA $700 $1.10 $700 $1.10 2BD/1.5BA $800 $1.05 $800 $1.05 TOTAL/AVG $742 $1.08 $742 $ OWNER: Mentor Properties MANAGED BY: P.B. Bell UNIT TYPE UNITS SF TRANSIT SCORE 51 NET NET 2BD/1BA $1,005 $1.10 $1,005 $1.10 2BD/1BA $1,217 $1.12 $1,217 $1.12 3BD/2BA $1,450 $1.00 $1,450 $1.00 TOTAL/AVG $1,167 $1.11 $1,167 $ De Novo on Roanoke 67 E. Roanoke Ave Phoenix, AZ WALK SCORE 68 Coronado Flats 1335 E. Thomas Rd. Phoenix, AZ WALK SCORE 52 OWNER: Dr. Paul Jone MANAGED BY: OWNER UNIT TYPE UNITS SF TRANSIT SCORE 58 NET NET Studio $546 $1.58 $546 $1.58 1BD/1BA $802 $1.34 $802 $1.34 TOTAL/AVG $674 $1.42 $674 $ OWNER: Adam Mills Loyd MANAGED BY: OWNER UNIT TYPE UNITS SF TRANSIT SCORE 56 NET NET Studio $1,005 $2.71 $1,005 $2.71 1BD/1BA $905 $1.29 $905 $1.29 2BD/1BA $1,006 $1.22 $1,006 $1.22 3BD/1BA $1,357 $1.34 $1,357 $1.34 TOTAL/AVG $1,004 $1.26 $1,004 $ ON THOMAS APARTMENTS 27

28 T-12 OPERATIONS OPERATING INCOME Monthly Scheduled Gross Rent $22,272 Annual Scheduled Gross Rent $267,263 Economic Vacancy 0.87% -$2,314 Net Rental Income $264,949 RUBS $8,803 Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $14,004 Gross Operating Income $287,755 OPERATING EXPENSES PER UNIT Property Taxes $275 $7,423 Insurance $200 $5,400 Maintenance & Repairs $654 $17,665 Turnover $109 $2,955 Contract Services $623 $16,814 Electricity $113 $3,058 Sewer and Water $127 $3,418 Other Utilities $388 $10,489 Payroll $500 $13,500 Management Fee 5.00%OF GOI $600 $16,195 Administrative Expenses $134 $3,631 TOTAL OPERATING EXPENSES $100,548 Operating Cost Per Unit $3,724 Operating Cost Per Sq Ft $4.65 NET OPERATING INCOME $187,207 Capital Reserve $300 $8,100 ADJUSTED NET OPERATING INCOME $179,107 UNIT TYPE UNITS SF MONTHLY RENT Studio $660 $660 1BD/1BA $753 $12,051 2BD/1BA $952 $6,665 2BD/2BA $965 $2,895 TOTAL/AVG $825 $22,272 T-9 ANNUALIZEDINCOME / T-9 ANNUALIZED EXPENSES WITH ADJUSTMENTS NOTES MONTHLY SCHEDULED GROSS RENT Based off of current rent roll dated 10/1/2018. NET RENTAL INCOME Monthly Scheduled Income multiplied by 12 months. OTHER INCOME Income based off T-9 profit and loss statement, annualized. GROSS OPERATING INCOME Net Rental Income plus RUBS and Other Income. RUBS Utility Income based off T-9 profit and loss statement, annualized. PROPERTY TAXES Based on 2018 property taxes per Maricopa County treasurer s office. MAINTENANCE & REPAIRS, TURNOVER, AND CONTRACT SERVICES Based on actual costs w/ T-9 expenses, annualized. ELECTRICITY, SEWER AND WATER, AND OTHER UTILITIES Based on actual numbers per T-9 annualized profit and loss statement PAYROLL AND MANAGEMENT FEE Benchmarked expense per lender s standards. ADMINISTRATIVE EXPENSES Based off T-9 annualized expense. 28 NORTHMARQ MULTIFAMILY

29 PRO FORMA PRO FORMA OPERATING INCOME Monthly Scheduled Gross Rent $25,090 Annual Scheduled Gross Rent $301,080 Physical Vacancy 5.00% -$15,054 Economic Vacancy 4.00% -$12,043 Net Rental Income $273,983 RUBS $9,067 Other Income $14,424 Gross Operating Income $297,474 PRO FORMA OPERATING EXPENSES PER UNIT Property Taxes $275 $7,423 Insurance $200 $5,400 Maintenance & Repairs $500 $13,500 Turnover $200 $5,400 Contract Services $150 $4,050 Electricity $117 $3,149 Sewer and Water $130 $3,521 Other Utilities $400 $10,803 Payroll $500 $13,500 Management Fee 5.00%OF GOI $551 $14,874 Marketing $75 $2,025 Administrative Expenses $150 $4,050 Capital Reserve $300 $8,100 TOTAL OPERATING EXPENSES $95,795 Operating Cost Per Unit $3,548 Operating Cost Per Sq Ft $4.43 PRO FORMA NET OPERATING INCOME $201,679 UNIT TYPE UNITS SF MONTHLY RENT Studio $790 $790 1BD/1BA $875 $14,000 2BD/1BA $1,000 $7,000 2BD/2BA $1,100 $3,300 TOTAL/AVG $929 $25,090 NOTES MONTHLY SCHEDULED GROSS RENTS Based off of market rent. PHYSICAL VACANCY 5% based on lender s underwriting. RUBS T-9 RUBS with 3% increase. NET RENTAL INCOME Annual Scheduled Gross Rent subtracted by physical and economic vacancy. PROPERTY TAXES Based on 2018 property taxes per Maricopa County treasurer s office. ECONOMIC VACANCY 4% based on lender s underwriting. OTHER INCOME T-9 income with 3% increase. GROSS OPERATING INCOME Net Rental Income plus RUBS and Other Income. MAINTENANCE & REPAIRS, TURNOVER, AND CONTRACT SERVICES Based on lender s benchmarked expenses. ELECTRICITY, SEWER AND WATER, AND OTHER UTILITIES Based on actual numbers per T-9 annualized profit and loss statement with 3% increase. PAYROLL AND MANAGEMENT FEE Benchmarked expense per lender s standards. ADMINISTRATIVE EXPENSES Based off benchmarked expenses 28 ON THOMAS APARTMENTS 29

30 NO. PROPERTY YEAR BUILT UNITS PRICE $/UNIT $/SF SALE DATE S S 28 on Thomas E. Thomas Rd. Phoenix, AZ / $3,700,000 $137,037 $ On Market W Turney Ave. Phoenix, AZ $1,875,000 $156,250 $ /9/ on Eighteen 3311 N 18th Street Phoenix, AZ / $2,900,000 $161,111 $ /19/ Campbell Avenue 2417 E Campbell Ave Phoenix, AZ / $3,150,000 $131,250 $ /1/ Pinchot Arms 2326 E Pinchot Ave. Phoenix, AZ $1,440,000 $120,000 $ /6/ Mode at 10th Street 4140 N 10th St. Phoenix, AZ $1,341,840 $134,184 $ /31/ Village N 28th St. Phoenix, AZ / $4,000,000 $160,000 $ /5/2018 Average 18 $142,833 $ NORTHMARQ MULTIFAMILY

31 SALES COMPARABLES SITE NN 28 ON THOMAS APARTMENTS 31

32 MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com Ryan Boyle SENIOR ASSOCIATE T C rboyle@northmarq.com Bill Hahn EXECUTIVE VICE PRESIDENT T C bhahn@northmarq.com NorthMarq Capital Alex Quenzler VICE PRESIDENT-PRODUCER T C aquenzler@northmarq.com James DuMars MANAGING DIRECTOR T C jdumars@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ