NORTHGATE APARTMENTS & rd AVE N, LINDSTROM MN 55045

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1 NORTHGATE APARTMENTS & rd AVE N, LINDSTROM MN OFFERED BY: KIRK KENNEALLY COLDWELL BANKER BURNET

2 NORTHGATE APARTMENTS EXCLUSIVELY OFFERED BY: Kirk Kenneally Coldwell Banker Burnet

3 DISCLOSURE AFFILIATED BUSINESSES Coldwell Banker Burnet, a subsidiary of Realogy Holdings Corp., is part of the NRT LLC family of real estate brokerage companies and has a business relationship with the following companies: Guaranteed Rate Affinity, LLC; Castle Edge Insurance Agency, Inc.; Burnet Title, LLC; Cartus Corporation; American Home Shield Corporation; and other NRT LLC Real Estate Brokerage Companies and franchisees. DISCLAIMER While we have obtained this information from reliable sources, it is our recommendation that you complete a thorough due diligence investigation and verification of facts. This includes but is not limited to: sq ft, age, structure, mechanical, Federal, State and local compliance, condition, lease terms, and current and projected financials.

4 THE OFFERING OFFERING PRICE: $1,600,000 or $72,727 p/door Northgate Apartments consists of two adjacent 11-unit apartment buildings in Lindstrom MN. The properties have been extremely well taken care of and kept in good repair. With under-market rents, this is a great value add for any new or seasoned investor! The properties were built in the 1970s and are of sturdy brick construction. All of the units have historically been fully occupied with the lack of rental options in Lindstrom. There are 15-2 Bedroom, 1 Bath apartments and 7-1Bedroom, 1 Bath apartments. There are a total of eight detached single car garage units Located 35 Miles NE of the Twin Cities and 10 Miles W from Wisconsin.

5 13060 & rd AVE N, LINDSTROM MN Property Address & rd AVE N, LINDSTROM MN Number of Units 22 ( 15 2BR S & 7 1BR S ) Number of Buildings Square Footage per Building 8,900 Number of Stories 2 2 (11 UNITS PER BUILDING) Year Built 1970 & 1972 Lot Size 1.43 Acres Parcel Number & GREAT WALKABILITY- 2 BLOCKS FROM DOWNTOWN LINDSTROM ON SITE LAUNDRY (2 WASHERS & 2 DRYERS PER BUILDING) 8 GARAGES & PLENTY OF OFF STREET PARKING HEATED SIDEWALKS-FOR THE MN WINTERS SHARED PATIO County Roof Chisago Flat LOTS OF GREEN SPACE PROPERTY DETAILS & FEATURES

6 FINANCIAL ANALYSIS NORTHGATE APARTMENTS IN PLACE CAP RATE : 6.61% WITH RENTS PUSHED TO MARKET, CAP RATE: 7.73%

7 rd Ave N Built in 1970 (2 BR space was used for the common laundry and storage) Apartment Rent and garage Lease end/type Tenant Term 1A 2BR $ Oct 31 -yr garage 2 BR 10+ years 1B 2BR $ May 31 - yr 2 BR 2A 2BR $ Dec 31 -m-m 2 BR 2B 2BR $ Oct 31 -yr 2 BR 3A 1BR $ Aug 31 - yr 1 BR 3B 1BR $ Aug 31 - yr 1BR 4A 1BR $ May 31 - yr $655 starting June 1 1BR 4B 1BR $ July 31 yr 1BR 5A 2BR $ may 31 - yr $755 starting June 1 2 BR 5B 2BR $ June 30 - yr Marketing for July 1 2 BR 6A 2BR $ Oct 31 -yr Not updated 2 BR 20+ years rd Ave Built in 1972 (1 BR space was used for the common laundry and storage) 1A 2BR $ Caretaker/Manager garage 2 BR 5+ years 1B 2BR $ Oct 31 - yr garage 2 BR 2A 2BR $ Nov 30 - yr 2 BR 2B 2BR $ Oct 31 m-m garage 2 BR 5+ years 3A 1BR $ Oct 31 -yr Needs some updates 1 BR 10+ years 3B 1BR $ Nov 30 - yr 1BR 4A 1BR $ Oct 31 m-m June 30th Moveout - Apt needs updating garage 1BR 10+ years 5A 2BR $ Sept 30 m-m garage 2 BR 5B 2BR $ May 31 - yr $745 Starting June 1 2 BR 5+ years 6A 2BR $ Nov 30 - yr 2 BR 6B 2BR $ Oct 31 - yr Not updated garage 2 BR 20+ years AVERAGE RENTS: 2 BR S : $ BR S: $ MARKET RENTS: 2 BR S : $ BR S: $ Total $14, RENT ROLL Rent includes: Trash, Sewer, Water and Hot Water Baseboard Heat. Tenant pays electric which includes the AC. 1) Market Potential Rents reflects brokers opinion of market rent. 2) Avg rent calculated does not factor in Caretaker rent discount.

8 Gross Rental Income: $178,680 (Less) Vacancies and Bad Debt: 3.00% $ 5, Coin Income $ 2, Storage income $ - - Parking Income stalls $ - - Total Adjusted Gross Income: $ 176, EXPENSES: Monthly % of Gross Annual Notes Property Taxes 1, % $ 20, Owner Insurance % $ 5, Owner Utilities 1, % $ 23, Owner Trash % $ 2, Owner Management Fee % $ 9, Market Estimate Maintenance/Supplies % $ 7, Owner Other % $ 2, Owner Total Expenses $ 5, % $ 70, NET OPERATING INCOME (Before Debt Service) $ 105, CAP Rate: 6.61% OPERATING STATEMENT 2017 Notes:1) Vacancy factor based on historic experience and market trends. 2) Laundry income based on historic experience/ broker opinion.

9 Gross POTENTIAL Rental Income: $216,000 (Less) Vacancies and Bad Deb 3.00% $ 6, Coin Income $ 2, Storage income $ - - Parking Income stalls $ - - Total Adjusted Gross Income: $ 212, EXPENSES: Monthly % of Gross Annual Notes Property Taxes 1, % $ 20, Owner Insurance % $ 5, Owner Utilities 1, % $ 23, Owner Trash % $ 2, Owner Management Fee % $ 11, Market Estimate Maintenance/Supplies 2, % $ 25, Estimate with turns Other % $ 2, Owner Total Expenses $ 7, % $ 90, NET OPERATING INCOME (Before Debt Service) $ 122, CAP RATE 7.73% PRO-FORMA With Rents pushed to Market Rate This operating pro forma is provided to assist potential investors with a general overview of the property. Broker and the Seller make no representations or warranties as to the completeness or accuracy of the information contained herein: no legal obligations or commitment shall arise by reason of this pro forma or it's contents. All potential buyers are encouraged to conduct their own investigation to satisfy themselves

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14 SET UP A TOUR Please respect the owner's desire that the management or the employees at this property are not to be disturbed and that all visits to the property be scheduled through Broker (Kirk Kenneally) Tours can be scheduled on the preferred tour dates below from 10am-3pm: Thur- May 17 th Mon, Wed, Fri May 21 st, 23 rd, 25 th Wed & Fri May 30 th, Jun 1 st Buyers and Brokers are welcome and encouraged to tour the property prior to submitting offers. Please Contact: Kirk Kenneally Coldwell Banker Burnet Kirk.Kenneally@cbburnet.com