COUNTRY CLUB APARTMENTS 953 S. 23RD STREET, RICHMOND, IN 47374

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1 COUNTRY CLUB APARTMENTS 953 S. 23RD STREET, RICHMOND, IN Building Trust. Building Relationships. Building Value. presented by: Bart Weprin

2 Table Of Contents 1. PROPERTY INFORMATION 3 Executive Summary 4 Property Description 5 Property Details 6 Additional Photos 7 Additional Photos 8 2. LOCATION INFORMATION 9 Regional Map 10 Location Maps 11 Aerial Map FINANCIAL ANALYSIS 13 Financial Summary 14 Income & Expenses 15 Unit Mix Summary DEMOGRAPHICS 17 Demographics Report 18 Demographics Map ADVISOR BIOS Advisor Bio & Contact All materials and information received or derived from Weprin Realty, Inc. its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither Weprin Realty, Inc. its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. Weprin Realty, Inc. will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Weprin Realty, Inc. makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Weprin Realty, Inc. does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Weprin Realty, Inc. in compliance with all applicable fair housing and equal opportunity laws. 2

3 Building Trust. Building Relationships. Building Value. SECTION 1 PROPERTY INFORMATION

4 Executive Summary PROPERTY OVERVIEW Country Club Apartments consists of 312 garden style apartments, including 132 one-bedroom units and 180 two-bedroom units in a total of 25 buildings. Value-add opportunity! The property is currently approximately 38% occupied. Upside in renting out the vacant units. Current owner has spent over $1,500,000 in recent improvements including new roofs on 7 of the buildings. Owner estimates an additional $2 million is needed in updates and improvements to reach full potential. 170 units have been fully renovated, the remaining units need varying degrees of renovation. The property consists of two phases. Phase 1 was built between 1963 and 1968, consists of 178 units. These units have boiler heat and landlord pays gas, electric, water and sewer. Phase 2 was built between 1972 and 1975, consists of 134 units. These units have electric, tenant-paid heat, but landlord pays water and sewer. Half of the water lines have been replaced with copper. The water lines are underground for half of the property. All original windows. Currently 5 buildings need full rehab. Rents will be increased to $475 for one-bedrooms and $575 for two-bedrooms. PROPERTY SUMMARY Sale Price: $5,500,000 Number Of Units: 312 PROPERTY HIGHLIGHTS 312 Garden Style Units / $17,628 Per Unit Value-Add Opportunity / Currently 38% Occupied Recent Capital Improvements totaling over $1.5 MM. Lot Size: Acres 170 Units Fully Rehabbed / Remaining Units Need Rehab Price Per Unit: $17,628 Building Size: 267,725 SF Year Built: Market: East Central Indiana Sub Market: Richmond 4

5 Property Description PROPERTY DESCRIPTION Country Club Apartments consists of 312 garden style apartments, including 132 one-bedroom units and 180 two-bedroom units in a total of 25 buildings. Value-add opportunity! The property is currently approximately 38% occupied. Upside in renting out the vacant units. Current owner has spent over $1,500,000 in recent improvements including new roofs on 7 of the buildings. Owner estimates an additional $2 million is needed in updates and improvements to reach full potential. 170 units have been fully renovated, the remaining units need varying degrees of renovation. The property consists of two phases. Phase 1 was built between 1963 and 1968, consists of 178 units. These units have boiler heat and landlord pays gas, electric, water and sewer. Phase 2 was built between 1972 and 1975, consists of 134 units. These units have electric, tenant-paid heat, but landlord pays water and sewer. Half of the water lines have been replaced with copper. The water lines are underground for half of the property. All original windows. Currently 5 buildings need full rehab. Rents will be increased to $475 for one-bedrooms and $575 for two-bedrooms. LOCATION DESCRIPTION Country Club Apartments is located in Wayne County, Richmond, Indiana. Richmond is located in east central Indiana between Dayton, Ohio and Indianapolis. The property is situated five short minutes from a major retail corridor which is home to The Richmond Square Shopping Center. 5

6 Property Details PROPERTY NAME: PROPERTY ADDRESS: Country Club Apartments 953 S. 23rd Street Richmond, IN APN: LOT SIZE: BUILDING SIZE: Acres 267,725 SF BUILDING CLASS: B- PARKING SPACES: PARKING RATIO: YEAR BUILT: Off Street / Surface Ample Phase I, Phase II NUMBER OF STORIES: 2 NUMBER OF UNITS: 312 6

7 Additional Photos 7

8 Additional Photos 8

9 Building Trust. Building Relationships. Building Value. SECTION 2 LOCATION INFORMATION

10 Regional Map 953 S. 23rd Street 10

11 Location Maps 11

12 Aerial Map 12

13 Building Trust. Building Relationships. Building Value. SECTION 3 FINANCIAL ANALYSIS

14 Financial Summary INVESTMENT OVERVIEW 2017 YTD ANNUALIZED Price $5,500,000 Price per Unit $17,628 GRM 7.8 CAP Rate 5.0% Cash-on-Cash Return (yr 1) 4.99 % Total Return (yr 1) $274,285 Debt Coverage Ratio - OPERATING DATA 2017 YTD ANNUALIZED Gross Scheduled Income $708,420 Other Income - Total Scheduled Income $708,420 Vacancy Cost $0 Gross Income $708,420 Operating Expenses $434,135 Net Operating Income $274,285 Pre-Tax Cash Flow $274,285 FINANCING DATA 2017 YTD ANNUALIZED Down Payment $5,500,000 Loan Amount - Debt Service - Debt Service Monthly - Principal Reduction (yr 1) - 14

15 Income & Expenses INCOME SUMMARY 2017 YTD ANNUALIZED PER UNIT Rental Income $683,968 $2, Laundry $12,852 $41.19 Forfeited Deposits $11,600 $37.18 GROSS INCOME $708,420 $2, EXPENSE SUMMARY 2017 YTD ANNUALIZED PER UNIT Admin & General $50,596 $ Insurance $66,153 $ Maintenance & Repairs $69,536 $ Payroll & Benefits $14,336 $45.95 Real Estate Taxes $51,262 $ Utilities $182,252 $ GROSS EXPENSES $434,135 $1, NET OPERATING INCOME $274,285 $

16 Unit Mix Summary UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF 1 BED/ 1 BA $450 $ BED/ 1 BA $450 $ BED/ 1 BA w/ Den $475 $ BED /1 BA $500 $ BED /1 BA $500 $ BED /1 BA w/ Den ,080 $525 $0.49 Totals / Averages % 267,725 $149,650 $

17 Building Trust. Building Relationships. Building Value. SECTION 4 DEMOGRAPHICS

18 Demographics Report 1 MILE 3 MILES 5 MILES Total households 2,388 15,094 20,721 Total persons per hh Average hh income $46,639 $45,937 $49,572 Average house value $180,123 $136,566 1 MILE 3 MILES 5 MILES Total population 6,008 36,962 50,441 Median age Median age (male) Median age (female) * Demographic data derived from 2010 US Census 18

19 Demographics Map 1 Mile 3 Miles 5 Miles Total Population 6,008 36,962 50,441 Population Density 1,912 1, Median Age Median Age (Male) Median Age (Female) Total Households 2,388 15,094 20,721 # of Persons Per HH Average HH Income $46,639 $45,937 $49,572 Average House Value $180,123 $136,566 * Demographic data derived from 2010 US Census 19

20 Building Trust. Building Relationships. Building Value. SECTION 5 ADVISOR BIO

21 COUNTRY CLUB APARTMENTS 953 S. 23RD STREET, RICHMOND, IN Advisor Bio BART WEPRIN President Professional Background Bart Weprin serves as President and Managing Broker for Weprin Realty, Inc., specializing in the sale of multifamily, office and net lease properties throughout the United States. He has over 20 years of experience in commercial real estate. Weprin's success is based on the understanding that each property is more than facts and figures and each sale is more than a dollar value; it is about client service and building relationships. He knows that any given transaction must fit into the big picture for his clients and their life goals. Prior to establishing his own company, Weprin Realty, Inc., Bart spent 12 years as a Managing Director for Sperry Van Ness Commercial Real Estate consistently ranking among the top 15 sales advisors out of more than 800 nationwide. He has also served as a Senior Investment Associate with Marcus & Millichap in Cincinnati, Ohio. During his career, he has secured over 200 transactions valued at over $400 million Liberty One Drive Liberty Township, OH T C bart.weprin@weprinrealty.com Memberships & Affiliations A resident of Cincinnati/Dayton, Ohio, Weprin is the past president of the Ohio Commercial Real Estate Exchanges Association. He is a CCIM candidate and a licensed real estate broker in Ohio. Education Bart received his bachelor's degree in business from Ohio State University. 21