CINCINNATI, OH OFFERING MEMORANDUM

Transcription

1 Cincinnati Marketplace OFFERING MEMORANDUM

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

3 TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 MARKET OVERVIEW Section 4 DEMOGRAPHIC ANALYSIS

4 PRICING AND FINANCIAL ANALYSIS Cincinnati Marketplace

5 PRICING AND FINANCIAL ANALYSIS OFFERING SUMMARY Major Tenants Tenant Name Big Lots Champions Bar & Grill Cincinnati GI CosmoProf Empress Chili The Gymnastics Center Pirate's Den United States Post Office Major Employers Price $5,350,000 Down Payment 35% $1,872,500 Price per Square Foot (GLA) $44.01 Gross Leasable Area (GLA) 121,566 Year Built 1984 Lot Size Acres VITAL DATA CAP Rate - Current 9.00% Net Operating Income - Current $481,727 Net Cash Flow After Debt Service - Current $243,817 Total Return - Current 16.99% / $318,150 CAP Rate - 95% Occupied 14.81% Net Operating Income - 95% Occupied $792,392 Net Cash Flow After Debt Service - 95% Occupied $554,482 Total Return - 95% Occupied 33.58% / $628,815 Company Local Employees Tenable Protective Svcs Inc 950 Kroger 886 Mercy Frncscan Hosp Wstn Hills 886 Mreto 700 Meyer Tool Inc 670 Larosas Inc 515 McDonalds 438 ABM 400 College of Mount St Joseph 400 KAO USA Inc 400 Target 377 Carestar Inc 350 Demographics 1-Mile 3-Miles 5-Miles 2014 Total 14,958 96, ,373 Population 2019 Total 14,843 96, ,066 Population 2014 Total 6,401 39,875 81,495 Households 2019 Total 6,375 40,267 81,968 Households Median HH Income $46,492 $45,560 $43,223 Per Capita Income (based on Total Population) Average (Mean) HH Income $26,705 $26,268 $25,223 $62,345 $63,274 $62,192 1

6 PRICING AND FINANCIAL ANALYSIS FINANCING Proposed Financing First Trust Deed Loan Amount $3,477,500 Interest Rate 4.75% Amortization 25 Years Debt Coverage Ratio

7 PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per SF 95% Occupied Per SF Real Estate Taxes (1) $77,561 $0.64 $77,561 $0.64 Insurance (2) $21,000 $0.17 $21,000 $0.17 CAM (2) Utilities $20,000 $0.16 $20,000 $0.16 Repairs & Maintenance $25,000 $0.21 $25,000 $0.21 Water/Sewer $20,000 $0.16 $20,000 $0.16 Snow & Ice Removal $10,000 $0.08 $10,000 $0.08 Landscaping $10,000 $0.08 $10,000 $0.08 Cleaning/Lot Sweeping $10,000 $0.08 $10,000 $0.08 TOTAL CAM $95,000 $0.78 $95,000 $0.78 Management Fee (3) $28,137 $0.23 $26,460 $0.22 TOTAL EXPENSES $221,698 $1.82 $220,021 $1.81 Tenants (% OF GLA) Comments (1) Real Estate Taxes based on Hamilton County Auditor's valuation of $3,060,390. (2) Owner approximated expenses based on 2015 and 2016 averages. (3) Management Fee calculated as 4% of EGI. 3

8 PRICING AND FINANCIAL ANALYSIS INCOME & EXPENSES Gross Leasable Area (GLA) 121,566 SF Base Rent Current Per SF 95% Occupied Per SF Occupied Space $595,399 $7.57 $880,039 $7.24 Vacant Space at Market Rents (42,928 SF) $284,640 $6.63 GROSS POTENTIAL RENT $880,039 $7.24 $880,039 $7.24 Expense Reimbursements Real Estate Taxes $44,054 $0.36 $71,442 $0.59 Insurance $11,928 $0.10 $19,343 $0.16 CAM $52,044 $0.43 $85,591 $0.70 GROSS POTENTIAL INCOME $988,065 $8.13 $1,056,415 $8.69 Vacancy/Collection Allowance (% of GPR) 32.3% / $284,640 $2.34 5% / $44,002 $0.36 EFFECTIVE GROSS INCOME $703,425 $5.79 $1,012,413 $8.33 Total Expenses $221,698 $1.82 $220,021 $1.81 NET OPERATING INCOME $481,727 $3.96 $792,392 $6.52 4

9 PRICING AND FINANCIAL ANALYSIS TENANT SUMMARY Cincinnati Marketplace Cincinnati, Ohio Lease Lease Current Annual Tenant Sq. Ft. % of GLA Commencement Expiration Annual Rent Rent/SF Tax Reimb Ins Reimb CAM Reimb Mgt Fee Options Inline Space Expense Reimbursements Big Lots 36, % 2/21/1994 1/31/2026 $200,574 $5.50 $23,267 $6,300 $23,704 $0 (3) 5 Year RE Tax, Ins, CAM inc 2/1/2022 1/31/2026 $218,808 $6.00 opt 2/1/2026 1/31/2031 $227,925 $6.25 opt 2/1/2031 1/31/2036 $237,042 $6.50 opt 2/1/2036 1/31/2041 $246,159 $6.75 Champion's Bar and Grill 3, % 12/1/ /30/2021 $32,960 $10.30 $2,042 $553 $2,501 $0 RE Tax, Ins, CAM inc 12/1/ /30/2018 $33,949 $10.61 inc 12/1/ /30/2019 $34,967 $10.93 inc 12/1/ /30/2020 $36,016 $11.26 inc 12/1/ /30/2021 $37,097 $11.59 Pirate's Den 8, % 8/1/ /31/2021 $74,800 $8.50 $5,615 $1,520 $6,877 $0 RE Tax, Ins, CAM inc 1/1/ /31/2020 $79,200 $9.00 inc 1/1/ /31/2021 $83,600 $9.50 Empress Chili 2, % 9/1/2011 8/31/2017 $21,600 $9.00 $1,531 $415 $1,876 $0 RE Tax, Ins, CAM The Gymnastics Center 10, % 10/1/2011 1/31/2018 $60,390 $5.50 $7,005 $1,897 $8,581 $0 RE Tax, Ins, CAM United States Post Office 3, % 12/1/ /30/2022 $44,000 $13.75 $0 $0 $0 $0 (1) 5 Year None inc 12/1/ /30/2022 $45,600 $14.25 opt 12/1/ /30/2027 $47,880 $14.96 Endoscopy Center West 4, % 11/1/1994 MTM $59,875 $12.50 $0 $0 $2,880 CAM Cincinnati GI 4, % 4/1/2014 3/31/2019 $50,000 $12.50 $2,552 $691 $3,126 $0 RE Tax, Ins, CAM Golf Shop 1, % 5/15/2014 MTM $24,000 $6.00 $0 $0 $0 None CosmoProf 3, % 12/5/ /31/2019 $27,200 $8.50 $2,042 $553 $2,501 (1) 5 Year RE Tax, Ins, CAM opt 1/1/ /31/2024 $30,400 $9.50 Former Big Lots Space 28, % $144,640 $5.00 $18,457 $4,997 $22,606 $0 RE Tax, Ins, CAM Vacancy 2, % $20,000 $10.00 $1,276 $345 $1,563 $0 RE Tax, Ins, CAM Vacancy 2, % $20,000 $10.00 $1,276 $345 $1,563 $0 RE Tax, Ins, CAM Vacancy 1, % $16,000 $10.00 $1,021 $276 $1,250 $0 RE Tax, Ins, CAM Vacancy 1, % $16,000 $10.00 $1,021 $276 $1,250 $0 RE Tax, Ins, CAM Vacancy 3, % $32,000 $10.00 $2,042 $553 $2,501 $0 RE Tax, Ins, CAM Vacancy 1, % $16,000 $10.00 $1,021 $276 $1,250 $0 RE Tax, Ins, CAM Vacancy 2, % $20,000 $10.00 $1,276 $345 $1,563 $0 RE Tax, Ins, CAM Occupied Space 78, % $595,399 $44,054 $11,928 $52,044 $0 Vacant Space 42, % $284,640 $27,389 $7,416 $33,547 $0 Total GLA 121, % $880,039 $71,442 $19,343 $85,591 $0 5

10 PRICING AND FINANCIAL ANALYSIS TENANT & LEASE SUMMARY Tenant Name: Big Lots, Inc. Lease Commencement: 2/1/1994 Lease Expiration: 1/31/2026 Gross Leasable Area (GLA): 36,486 Original Term: Option Term: 10 Years 5 Years Pro Rata Share of Project: 30% Headquartered: Columbus, OH No. of Locations: 1,442 Web Site: Founded in 1967 and based in Columbus, OH, Big Lots, Inc. is a closeout retailer with about 1,450 domestic stores that sell brand-name closeouts and discounted food, furniture, home goods, electronics, toys, seasonal and general merchandise. Big Lots offers brand-name products from 3,000 manufacturers. The Company originated as Consolidated Stores but changed its name in 2001 after selling off the KB Toys subsidiary and converting all of its closeout stores to the Big Lots banner. Recently, Big Lots signed a new ten year lease at Cincinnati Marketplace for a larger space than they previously occupied. This lease is NNN in nature with a CAM cap of $0.65/SF for the first five years and $0.75/SF for the next five years. The build-out has commenced and should be completed in summer Per the lease, no other general merchandise discount store, liquidator, close-out store, stores selling furniture or dollar store operations may be permitted in the Shopping Center. Lease Summary Base Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF Current - 1/31/2022 $200, $16,715 $5.50 2/1/2022-1/31/2026 $218, $18,234 $6.00 Option Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF 2/1/2026-1/31/2031 $227, $18, $6.25 2/1/2031-1/31/2036 $237, $19, $6.50 2/1/2036-1/31/2041 $246, $20, $6.75 6

11 PRICING AND FINANCIAL ANALYSIS TENANT & LEASE SUMMARY Tenant Name: CosmoProf Lease Commencement: 12/5/2000 Lease Expiration: 12/31/2019 Gross Leasable Area (GLA): 3,200 Original Term: Option Term: 5 Years 5 Years Pro Rata Share of Project: 3% Headquartered: Denton, TX No. of Locations: 1,040 Web Site: With approximately 1,040 stores operating either as CosmoProf or Armstrong McCall, CosmoProf is one of the largest chains of beauty supply stores in the country offering products to beauty professionals. CosmoProf stores are operated by Sally Beauty Holdings through their Beauty System's Group. CosmoProf operates under a NNN lease at Cincinnati Marketplace and reimburses for taxes, insurance and CAM. Lease Summary Base Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF Current - 12/31/2019 $27, $2,267 $8.50 Option Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF 1/1/ /31/2024 $30, $2, $9.50 7

12 PRICING AND FINANCIAL ANALYSIS TENANT & LEASE SUMMARY Tenant Name: United States Postal Service Lease Commencement: 12/1/2012 Lease Expiration: 11/30/2022 Gross Leasable Area (GLA): 3,200 Original Term: Option Term: 10 Years 5 Years Pro Rata Share of Project: 3% Headquartered: Web Site: Washington, DC The Post Office Department was created in 1792 and since has been transformed a number of times, most recently in 1971 to the U.S. Postal Service which is an agency of the U.S. Government. The United States Postal Service has over 600,000 employees and operates the largest civilian vehicle fleet in the world. The Western Hills post office located at Cincinnati Marketplace is operating under a gross lease. Lease Summary Base Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF Current - 11/30/2017 $44, $3,667 $ /1/ /30/2022 $45, $3,800 $14.25 Option Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF 12/1/ /31/2027 $47, $3, $

13 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 3670 Werk Road Cincinnati, OH Price $5,350,000 Down Payment 35% $1,872,500 Gross Leasable Area (GLA) 121,566 Price/SF $44.01 CAP Rate - Current 9.00% CAP Rate - 95% Occupied 14.81% Lot Size Acres Year Built 1984 Annualized Operating Data Income Base Rent Current 95% Occupied Occupied Space $595,399 $880,039 Vacant Space at Market Rents (42,928 SF) $284,640 Gross Potential Rent $880,039 $880,039 Expense Reimbursements $108,026 $176,376 Gross Potential Income $988,065 $1,056,415 Vacancy/Collection Allowance 32.3% / $284,640 5% / $44,002 Effective Gross Income $703,425 $1,012,413 Financing FIRST TRUST DEED Loan Amount $3,477,500 Interest Rate 4.75% Amortization 25 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. Total Expenses $221,698 $220,021 Net Operating Income $481,727 $792,392 Debt Service $237,910 $237,910 Debt Coverage Ratio Net Cash Flow After Debt Service 13.02% / $243, % / $554,482 Principal Reduction $74,333 $74,333 Total Return 16.99% / $318, % / $628,815 Expenses Real Estate Taxes (1) $77,561 $77,561 Insurance (2) $21,000 $21,000 CAM (2) Utilities $20,000 $20,000 Repairs & Maintenance $25,000 $25,000 Water/Sewer $20,000 $20,000 Snow & Ice Removal $10,000 $10,000 Landscaping $10,000 $10,000 Cleaning/Lot Sweeping $10,000 $10,000 TOTAL CAM $95,000 $95,000 Management Fee (3) (% of EGI) 4.0% / $28, % / $26,460 TOTAL EXPENSES $221,698 $220,021 EXPENSES/SF $1.82 $1.81 9

14 PROPERTY DESCRIPTION Cincinnati Marketplace

15 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights 65 Percent Occupied, 121,566 Square Foot Shopping Center Situated in Dense Retail Corridor in Cincinnati, OH Stabilized Cap Rate of 14.81% at 95 Percent Occupancy Heavily Populated Area; 14,958 Residents Within One Mile, 96,598 Within Three Miles and 202,373 Within Five Miles Big Lots (S&P B1 Rated) Occupies 30% of GLA with Long Term Lease Through 2026 Big Lots Currently Building Out and Moving into Larger Space Within Center Showing Commitment to Site Signalized Entrance to Center From Glenway Avenue - Main Thoroughfare on West Side of Cincinnati with 27,562 Vehicles Per Day Adjacent to Target, Home Depot, Kroger, Bed Bath & Beyond, Michaels and Many Other National Retailers Significant Upside Opportunity Through Extending Monthto-Month Tenants and Filling 35% Vacant GLA Marcus & Millichap is pleased to present Cincinnati Marketplace, a shopping center located in Cincinnati, Ohio. Cincinnati Marketplace measures 121,566 square feet and is currently 65 percent occupied. 30 percent of the GLA is occupied by Big Lots who signed a new 10 year lease in As part of the lease, Big Lots will move to a new, larger space in the property. Buildout is currently underway with Big Lots expecting to open to new location by June This will leave open Big Lots' former 28,928 square foot space which provides for significant upside potential along with some small shop vacancy as well. Cincinnati Marketplace is located on Glenway Avenue, a well-traveled road in the densely populated Western Hills area of Cincinnati. Within five miles of the property, there are over 202,000 residents. Cincinnati Marketplace has two ingress/egress points. One is from Werk Road and the other is a signalized entrance from Glenway Avenue. The nearby intersection of Werk Road and Glenway Avenue sees 47,037 vehicles per day. Because of the high traffic counts and strong demographics, many retailers are in the immediate vicinity including Home Depot, Target, Dillard's, Kroger, Michael's, Bed Bath & Beyond and Toys R Us among many others. The property is offered at a 9% cap rate on in place income. At the proposed financing, this equates to a 13.02% cash on cash return. Upon lease up, these numbers increase to 14.81% and 29.61%, respectively. 11

16 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Cincinnati Marketplace Property Address 3670 Werk Road Cincinnati, OH Assessor's Parcel Number Zoning Neighborhood Shopping Center Site Description Number of Stories 1 Year Built 1984 Gross Leasable Area (GLA) 121,566 SF Lot Size Acres Type of Ownership Fee Simple Landscaping Minimal Grass & Shrubbery Topography Mostly Flat Construction Foundation Exterior Parking Surface Roof Poured Concrete Mixed Materials Asphalt Rubber Membrane Mechanical HVAC Fire Protection Utilities Roof Mounted To Code City Services 12

17

18

19

20

21

22 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 18

23 PROPERTY DESCRIPTION SITE PLAN 19

24 PROPERTY DESCRIPTION SHORT RANGE AERIAL the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 20

25 PROPERTY DESCRIPTION LONG RANGE AERIAL the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any 21

26 MARKET OVERVIEW Cincinnati Marketplace

27 MARKET OVERVIEW CINCINNATI Market Highlights Diversified economy Growth in services industries has lessened the metro s dependence on manufacturing and transportation. Attractive business, living environment Companies are drawn to the region s low cost of doing business, while employees can enjoy an affordable place to live. Central distribution point Half of the U.S. population and 30 major markets are within a one-day drive. An abundance of higher education There are 250 colleges and universities within a 200- mile radius. Geography The Cincinnati metro is located in the southwestern corner of Ohio and extends into northern Kentucky and southeastern Indiana, covering 3,343 square miles. Ohio counties in the metro are: Hamilton, Brown, Warren, Butler and Clermont. The counties in Indiana include Dearborn, Ohio and Franklin, while Kentucky counties are Campbell, Grant, Boone, Gallatin, Pendleton, Bracken and Kenton. The Ohio River runs through the area, establishing the border between Ohio and Kentucky. The terrain is hilly, with bluffs and low ridges along the river. Cincinnati OH-KY-IN Metro 23

28 MARKET OVERVIEW CINCINNATI Metro The Cincinnati metro is a unique 15-county region located within portions of Ohio, Kentucky and Indiana that maintains a population of more than 2.1 million. Cincinnati is the largest city in the metro with 299,400 residents and the third-most populous in Ohio. The highest rates of growth are occurring in outlying portions of the metro. Largest Cities In Metro by Population Infrastructure Cincinnati is known for its premier business support services. Most recognizable is the Cincinnati/Northern Kentucky International Airport (CVG). CVG provides easy access to major business and leisure destinations, as half of the United States is within a one-hour flight. The region s central location makes it ideal for transporting goods via the extensive highway network, rail system, air or barge down the Ohio River. The area is well-served by interstate freeways and major highways. CSX, Conrail and Norfolk Southern provide freight service, while Amtrak offers passenger rail. Nearly 12 million tons of goods pass through the Port of Cincinnati annually. Regional bus service is provided by the Southwest Ohio Regional Transit Authority and the Transit Authority of Northern Kentucky. Cincinnati 299,400 Hamilton 63,200 Middletown 49,300 Fairfield 43,100 Covington 41,800 Mason 31,600 Airports Cincinnati/Northern Kentucky Int l. Airport Four regional airports Major Roadways Interstates 71, 74, 75, 275 and 471 Highways 22, 27, 50, 52 and 127 Rail Freight - CSX, Conrail, Norfolk Southern Passenger - Amtrak Port Port of Cincinnati The Cincinnati Metro is: 100 miles from Indianapolis 100 miles from Louisville 235 miles from Detroit 250 miles from Cleveland 250 miles from Chicago * Forecast Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Experian 24

29 MARKET OVERVIEW CINCINNATI Economy The economy of the Cincinnati metro is fluctuating. The gross metropolitan product (GMP) grew 1.6 percent in 2015 and is forecast to rise 3.1 percent this year as retail sales are expected to jump 2.7 percent. In addition, annual employment growth of 1.3 percent is projected over the next five years and residential permitting activity remains; more than 1,000 permits issued last year. The area s traditional employment bases in aerospace, automotive, chemistry and financial services will continue to contribute to the metro s economic landscape going forward. An excellent transportation system; lower property, corporate and state taxes; and state tax credit initiatives are major incentives that draw companies. Various new employment sectors will also position the metro favorably into the future. Growth in the technology sector has become a significant contributor to the region s economy. Hundreds of area firms are engaged in high-tech research, employing thousands of people. An increased presence in the fields of consumer products and creative services, information technology, and life sciences will provide high-quality jobs to Cincinnati residents as these sectors continue to grow. The advanced-energy sector is receiving state incentives for energy capital investments in production facilities and manufacturing capabilities. Research is being conducted in biomass, fuel cell, solar and wind energy. The metro s access to hundreds of relatively close institutions of higher learning will continue to support research and growth in this sector. * Forecast Sources: Marcus & Millichap Research Services, Bureau of Economic Analysis, Moody s Analytics, U.S. Census Bureau, Fortune 25

30 MARKET OVERVIEW CINCINNATI Labor The Cincinnati metro provides nearly 1 million jobs to workers skilled in a wide range of occupations. Quality of life and diverse job opportunities make it easy for area companies to attract and retain employees. The abundance and skill of workers are key assets in the Cincinnati metro. Local colleges and universities train and equip professionals to enter the labor pool. Universities also serve as major players in technology research and innovation. The University of Cincinnati s Vontz Center of Molecular Studies and the Hamilton County Business Center, a hotbed for high-tech startups, have attracted many technology professionals to the region. Several of the top 100 information technology companies now have area operations. Once a manufacturing-dominated employment base, the region now focuses on trade, transportation and utilities, which provides 20 percent or 213,100 area jobs. The professional and business services, and education and health services segments account for 17 percent and 15 percent, respectively. During the next five years, all employment categories except for manufacturing will increase, with the strongest gain projected in construction, which will expand nearly 5.2 percent annually during this time, with the addition of more than 12,000 workers. * Forecast Sources: Marcus & Millichap Research Services, BLS, Moody s Analytics 26

31 MARKET OVERVIEW CINCINNATI Employers Cincinnati remains one of the nation s primary industrial and commercial centers, with a major port on the Ohio River. Distribution of raw materials and manufactured goods serves as the city s chief economic activity, led by GE Aviation and AK Steel Corp. The regional airport and Cincinnati s water port provide access to domestic and international markets, which attracts large distribution facilities, including Toyota Motor Sales, Levi Strauss and Gap Inc. Cincinnati houses 10 Fortune 500 headquarters, includingprocter&gamble,macy sandkroger.there is healthy diversity among major employers, which represent aviation, financial services and healthcare. The American Financial Group, US Bank, and Fifth Third Bank lead the banking and financial services sector, while Mercy Health Partners is one of the largest employers in Cincinnati s expanding healthcare industry. Cincinnati s Children s Hospital Medical Center has recently been ranked the third-best Children s Hospital in the nation. Major Employers Kroger Co. University of Cincinnati Proctor & Gamble Cincinnati Children s Hospital Medical Center Health Alliance Greater Cincinnati Inc. TriHealth Inc. Wal-Mart Mercy Health Partners Fifth Third Bank GE Aviation Cincinnati is also a regional hub for education with nearly 20 institutions of higher learning located nearby. The University of Cincinnati is one of the metro s biggest employers, supporting roughly 17,000 jobs. * Forecast Sources: Marcus & Millichap Research Services, BLS, Moody s Analytics, Experian 27

32 MARKET OVERVIEW CINCINNATI Demographics The Cincinnati population is expected to grow 3.2 percent over the coming five years, reflecting a total gain of nearly 70,000 residents. Household expansion will also occur at a pace of 3.6 percent during this time, generating additional demand for housing. Cincinnati s median age, at 37.6 years, is on par with the U.S. national median of 37.5 years. Roughly 60 percent of the metro s population is considered working age, and this trend is expected to remain unchanged during the next five years. Educational attainment in the region exceeds the national average, with nearly 89 percent of all adults having completed high school compared with 86 percent nationally. Nearly 30 percent of local residents age 25 and older have attained at least a bachelor s degree, and nearly 11 percent also have earned a graduate or professional degree. The median household income in the metro, at $57,300 per year, is above the national median. Higher incomes and affordable home prices have increased the homeownership rate in the area to more than 67 percent. The median price of homes in Cincinnati stands at $146,200, well below the national median. Cincinnati s relatively affordable cost of living draws companies and residents to the metro. * Forecast Sources: Marcus & Millichap Research Services, AGS, Experian, Moody s Analytics, U.S. Census Bureau 28

33 MARKET OVERVIEW CINCINNATI Quality of Life Cincinnati offers a wide range of cultural and entertainment activities. The Cincinnati Symphony Orchestra is one of the country s finest orchestras. Riverbend, an outdoor concert facility located on the banks of the Ohio River, provides entertainment throughout the summer. The city also boasts a summer opera program, a world-famous zoo and botanical garden, a planetarium and a ballet company. More than 100 museums and galleries are located in the metro. There are several entertainment corridors, including Mount Adams and the expanding Main Street district, where numerous restaurants and clubs can be found. For the sports enthusiast, Cincinnati offers professional baseball, football, hockey, soccer, tennis, volleyball, car racing and horse racing. In addition, there are many golf courses and parks. Two amusement parks are within a short distance of the city, and skiing is available at Perfect North Slopes 30 minutes from downtown Cincinnati in Indiana. A number of universities have main campuses in the area, including the University of Cincinnati, Xavier University and Northern Kentucky University. Miami University is located in nearby Oxford. * Forecast Sources: Marcus & Millichap Research Services, Economy.com, National Association of Realtors, U.S. Census Bureau The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision. 29

34 DEMOGRAPHIC ANALYSIS Cincinnati Marketplace

35 DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 15,278 98, , Population 14,941 96, , Population 14,958 96, , Population 14,843 96, , Households 6,640 41,036 85, Households 6,380 39,792 81, Households 6,401 39,875 81, Households 6,375 40,267 81, Average Household Size Daytime Population 6,104 21,400 50, Owner Occupied Housing Units 67.11% 60.59% 55.75% 2000 Renter Occupied Housing Units 28.98% 33.66% 37.08% 2000 Vacant 3.91% 5.75% 7.16% 2014 Owner Occupied Housing Units 69.22% 63.85% 61.17% 2014 Renter Occupied Housing Units 30.78% 36.15% 38.83% 2014 Vacant 7.35% 10.45% 12.56% 2019 Owner Occupied Housing Units 69.21% 63.69% 61.28% 2019 Renter Occupied Housing Units 30.79% 36.31% 38.72% 2019 Vacant 7.84% 11.07% 13.21% $ 0 - $14, % 14.3% 16.9% $ 15,000 - $24, % 13.1% 13.0% $ 25,000 - $34, % 12.9% 12.4% $ 35,000 - $49, % 13.8% 13.4% $ 50,000 - $74, % 17.9% 16.8% $ 75,000 - $99, % 11.8% 11.4% $100,000 - $124, % 7.2% 7.0% $125,000 - $149, % 3.6% 3.6% $150,000 - $199, % 2.8% 3.1% $200,000 - $249, % 1.1% 1.0% $250, % 1.5% 1.5% 2014 Median Household Income $46,492 $45,560 $43, Per Capita Income $26,705 $26,268 $25, Average Household Income $62,345 $63,274 $62,192 Demographic data 2012 by Experian. 31

36 DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 miles Population In 2014, the population in your selected geography is 202,372. The population has changed by -5.78% since It is estimated that the population in your area will be 202,066 five years from now, which represents a change of 0.15% from the current year. The current population is 47.83% male and 52.16% female. The median age of the population in your area is 35.7, compare this to the Entire US average which is The population density in your area is 2, people per square mile. Households There are currently 81,495 households in your selected geography. The number of households has changed by -4.51% since It is estimated that the number of households in your area will be 81,968 five years from now, which represents a change of 0.58% from the current year. The average household size in your area is 2.45 persons. Income In 2014, the median household income for your selected geography is $43,223, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 11.65% since It is estimated that the median household income in your area will be $50,609 five years from now, which represents a change of 17.08% from the current year. The current year per capita income in your area is $25,222, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $62,191, compare this to the Entire US average which is $74,533. Race & Ethnicity The current year racial makeup of your selected area is as follows: 72.78% White, 22.66% Black, 0.06% Native American and 0.93% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 2.50% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 51,256 owner occupied housing units in your area and there were 34,094 renter occupied housing units in your area. The median rent at the time was $399. Employment In 2014, there are 50,681 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 61.43% of employees are employed in white-collar occupations in this geography, and 38.72% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.69%. In 2000, the average time traveled to work was 26.1 minutes. Demographic data 2012 by Experian. 32

37 DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2012 by Experian. Number of people living in a given area per square mile. 33

38 DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2012 by Experian. The number of people employed in a given area per square mile. 34

39 DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2012 by Experian. Average income of all the people 15 years and older occupying a single housing unit. 35

40 OFFERING MEMORANDUM Offices Throughout the U.S and Canada