Parkwood Duplexes 1224 Parkwood Court, Moore, OK 73160

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1 Arkansas Oklahoma Kansas Parkwood Duplexes 1224 Parkwood Court, Moore, OK Mike Buhl CRRC-OKC Darla Knight CRRC-Tulsa Offering Highlights 23 Duplexes with 46 Units Offered at an 8 cap rate on actual numbers 1984 Construction All 2 Bedroom / 2 Bath with washer & dryer conn. Twenty-four units have 1-car garages Great location in the Moore School District and at the major intersection of 12th Street and Eastern One and one-half miles northeast of the new $25 million Central Park at Broadway and 4th Street, offering a recreation center, aquatic facility, farmers market and amphitheater Moore is a thriving city that has become a major center for retail development in Central Oklahoma Providing professional apartment brokerage and marketing services for over 31 years

2 Table of Contents Section 1 Disclaimer Photographs Neighborhood Map Submarket Map Aerial Map Property Description Unit Mix Interior Photographs Building Layout Pages Section 2 Purchase Price and Terms Financing Section 3 Operating Data Highlights Income & Expense Spreadsheet A Section 4 Rent Comps Sale Comps Section 5 Moore Facts Oklahoma City at a Glance Section 6 CRRC Contacts Oklahoma Broker Relationship Act

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4 This package has been prepared to provide summary information to prospective buyers and to establish an initial and preliminary level of interest in the property described herein. It is not intended to present all material information regarding the subject property, and is not a substitute for a complete and thorough due diligence investigation. Commercial Realty Resources has not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to the actual number of appliances being conveyed or any potential environmental problems that may exist and makes no warranty or representation whatsoever concerning these issues. The information contained in this package has been obtained from sources we believe to be reliable; however, Commercial Realty Resources and Seller have not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any proformas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. Commercial Realty Resources and Seller recommend that prospective buyers conduct an in-depth investigation of the physical and financial aspects of the property to determine if the property meets their needs and expectations. We also recommend that prospective buyers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. Commercial Realty Resources and Seller recommend that prospective buyers consult with qualified professionals regarding the presence of any molds, funguses, or other organisms that may adversely affect the property and the health of individuals. The material contained in this document is not to be copied and/or used for any purpose or made available without the express written consent of Commercial Realty Resources. 4

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7 Neighborhood Map 7

8 Submarket Map 8

9 Aerial Map Walgreens 9

10 Offering Description Parkwood Duplexes offer an excellent opportunity for an investor to acquire a portfolio of 23 adjacent duplexes in the thriving Moore community and within minutes of the new $25 million Central Park. The pricing is the best in the market at an 8 cap rate on actual in-place numbers. The property contains 46 units and was built in All of the units are 2 bedroom / 2 bath with washer and dryer connections and 24 have 1-car garages. The location is at the intersection of 12th Street and Eastern Avenue with direct access from both streets. There is a Walgreens Pharmacy adjacent to the property and a Crest Grocery store across the street. Parkwood is only minutes from the 14-screen Warren Theatre, Moore Medical Center, Moore High School and the numerous commercial and retail establishments along 19th and I-35. Offering Highlights: 23 Duplexes with 46 Units Offered at an 8 cap rate on actual numbers 1984 Construction All 2 Bedroom / 2 Bath with washer & dryer conn. Twenty-four units have 1-car garages Great location in the Moore School District and at the major intersection of 12th Street and Eastern One and one-half miles northeast of the new $25 million Central Park at Broadway and 4th Street, offering a recreation center, aquatic facility, farmers market and amphitheater Moore is a thriving city that has become a major center for retail development in Central Oklahoma Click on the links below for information about Central Park and The City of Moore;

11 Property Description: Parkwood Duplexes offer an excellent opportunity for an investor to acquire a portfolio of 23 adjacent duplexes in the thriving Moore community. Number of Units: Number of Buildings: 46 units. All of the units are 2 bedroom / 2 bath with washer and dryer connections and 24 have 1-car garages. 23 one-story duplex buildings Year Built: Apartment Features: 1984 construction (according to County Records) Kitchens are equipped with a stove, vent hood, refrigerator, dishwasher and disposal. Vaulted ceilings in living rooms. Property Amenities: The washer and dryer connections and 1-car garages are the primary amenities. Construction: Style: Exterior: One-Story Duplex Painted composite siding and wood trim Mechanical System: Roof: Electrical Metering: HVAC: Hot Water: Water: Gas: Pitched Roofs with composition shingles. Roofs are estimated to be 10-years old Individually Metered Individual electric HVAC Individual electric hot water tanks Individually Metered None Utilities: Tenants pay their own utilities Site/Land Area: 4.49 acres (according to County Records) Current Occupancy: Averages 95 to 100% 11

12 Real Estate Taxes: 23 Accounts 2015 Assessed Value: 241,090 Tax Rate per 1,000 : $ Tax Amount : $27,966 Assessment Ratio: 12% of Market Value Account Acreage PropertyAddress Assessed Tax Amount R NE 11TH ST 718 MOORE ,542 $ 1, R NE 11TH ST 719 MOORE ,757 $ 1, R NE 11TH ST 714 MOORE ,594 $ 1, R NE 11TH ST 710 MOORE ,835 $ 1, R NE 11TH ST 706 MOORE ,131 $ 1, R NE 11TH ST 702 MOORE ,546 $ 1, R NE 11TH ST 703 MOORE ,236 $ 1, R NE 11TH ST 707 MOORE ,621 $ 1, R NE 11TH ST 711 MOORE ,612 $ 1, R NE 11TH ST 715 MOORE ,432 $ 1, R PARKWOOD CT 1226 MOORE ,518 $ 1, R PARKWOOD CT 1215 MOORE ,440 $ 1, R PARKWOOD CT 1219 MOORE ,481 $ 1, R PARKWOOD CT 1223 MOORE ,172 $ 1, R PARKWOOD CT 1227 MOORE ,845 $ 1, R PARKWOOD CT 1222 MOORE ,120 $ 1, R PARKWOOD CT 1218 MOORE ,240 $ 1, R PARKWOOD CT 1214 MOORE ,981 $ 1, R PARKWOOD CT 1210 MOORE ,064 $ 1, R PARKWOOD CT 1206 MOORE ,633 $ 1, R PARKWOOD CT 1202 MOORE ,791 $ 1, R PARKWOOD CT 1207 MOORE ,944 $ 1, R PARKWOOD CT 1211 MOORE ,555 $ 1, ,090 $ 27,

13 U S No. Bdrm/Bth Washer /Dryer Sq.Ft. Garage Total Sq.Ft. Market Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr Bed / 2 Bath Yes - Conn. 874 No 19, , , Bed / 2 Bath Yes - Conn. 874 Yes - 1 Car 20, , , , , ,480 Total Square Footage obtained from County Assessor Records. Individual unit square footages are estimated. D R Distribution Ratio 2 Bed / 2 Bath 100% 13

14 Apartment Interiors 14

15 Apartment Interiors 15

16 Building Layout Building Layout with attached garage Building Layout with NO garage 16

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18 Purchase Price & Terms Purchase Price: $3,071,000 Terms of Sale: Cash Buyer to Obtain New Financing Price Per Duplex: $133,521 Price Per Net Rentable Sq. Ft. $76.39 Cap Rate: (Based on Actual)

19 EXISTING FINANCING Lender: NA Original Amount/Date: Current Balance/Date: NA NA Interest Rate: NA Interest Only Period: NA Payment: NA Amortization: NA Maturity Date: NA 19

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21 Financial Analysis Assumptions The Gross Potential Rent was calculated at $447,480 annually based on current Market Rents. We used a 94% economic occupancy and expenses projected at $3,910per unit per year. The stabilized Net Operating Income was determined to be $245,750. There is $12,541 of Loss-to-lease that an investor will capture going forward as leases are signed or renewed. Financing- New financing is projected to be a bank loan or financed through the small loan program of FNMA Adjustments Real Estate Taxes are adjusted to the Purchase Price Cap Rate- A cap rate of 8.0% was applied to the stabilized Net Operating Income. 21

22 Annual Property Operating Data Project: Parkwood Duplexes Price: $ 3,071,000 Run Date: 21-Apr-16 Location: 709 NE 11th Street, Moore, OK Per Unit: $ 66,761 Cap Rate on Proforma: 8.00% Number of Units: 46 Per Foot: $ Cash-On-Cash on Proforma: 15.40% Net Rentable S.F. 40,204 Mortgage Balances: $ 2,456,800 Avg. Unit Size: 874 Equity Requirement: $ 614,200 20% No. Type Bdrm/Bth Washer /Dryer Sq.Ft. Garage Total Sq.Ft. Market Rent Rent/Sq.Ft. Gross/Mo. Gross/Yr Bed / 2 Bath Yes - Conn. 874 No 19, , , Bed / 2 Bath Yes - Conn. 874 Yes - 1 Car 20, , , , , , Proforma Proposed New Loan Annualized INCOME Per Unit Gross Potential - 447,480 9,728 Current Bal. Apr-16 $ 2,456,800 Loss-to-Lease - 12, Original Bal. Apr-16 $ 2,456,800 Vacancy and Credit Loss - 6.0% 26, Maturity 10 Effective Rental Income - 397, ,090 8,872 Amortization 30 Laundry & Other Income - 17,304-17, Interest Rate 4.600% RUBS Income Constant 6.152% Gross Operating Income - 414, ,590 9,252 Debt Service $ 151,136 EXPENSES Debt Coverage Ratio 1.63 R E Taxes - 36,274-42, I.O. Debt Service $ 113,013 Insurance - 31,240-31, Gas Electricity - 3,903-3, Water / Sewer - 2,068-2, Trash Pest Control , Make Ready 8,851 8, Maintenance / Repairs - 4,760-10, Landscaping - 2,579-5, Wages & Payrol Taxes - 28,876-36, Management Fee - 15, % 21, Advertising - 3,175-3, Administration - 10,530-2, Capital / Replacement Reserves , Total Operating Expenses - 147, ,841 Per Unit - 3,213-3,910 Per Sq Ft Net Operating Income - 267, ,750 5,342 Debt Service ,136 3,286 Cash Flow - 267,174-94,614 2,057 Real Estate Tax Information: 2015 Assessed Value: 241,090 Rate/$1000: 116 Value: $ 2,009, Account: Rose Rock Investments LLC Tax Amount: $ 27,966 Tax Dist: 0 Per Unit: $ 43,676

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24 RENT COMPS In order to estimate market rents for Parkwood, four apartment communities were selected as most competitive. Each property has been chosen due to its similarity with regard to quality, location, age, or amenities. While each property may not be directly comparable in all aspects, collectively they represent the rental market for Parkwood. Rental Rates are based on market rates only and do not include any concessions or specials. Sun Tree Park 1112 SE 14th Street, Moore, OK Units Built in 1984 Chalet Apartments 120 NE 21st Street, Moore, OK Units Built in 1969 The Edge of Moore 1200 NW 10th Street, Moore, OK Units Built in Sequoyah Street Moore, OK Hayden s Landing Apartments 921 NE 12th Street, Moore, OK Units Built in

25 Rent Comps at a Glance Sun Tree Park 1112 SE 14th Street, Moore, OK Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft ,000 $785 $

26 Rent Comps at a Glance Chalet Apartments 120 NE 21st Street, Moore, OK Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft $800 to $850 $0.89 to $

27 Rent Comps at a Glance The Edge of Moore 1200 NW 10th Street, Moore, OK Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft $725 $

28 Rent Comps at a Glance 1304 Sequoyah Street Moore, OK Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft $825 $

29 Rent Comps at a Glance Hayden s Landing Apartments 921 NE 12th Street, Moore, OK Floor Plans & Pricing Beds Bath Sq. Ft. Rent Rent Per Sq. Ft $600 $ $720 $

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31 Sold Comparison Property Address: 1326 Commerce Drive, Norman Size and Age: 8-units, Built in 2004 Price: $1,245,000 Price Per Unit: $155,625 Closing Date: 02/2016 Total Square Footage: 9,414 Commerce Duplexes Property Address: 1020 Rambling Oaks, Norman Size and Age: 19-units, Built in 1984 Price: $1,150,000 Price Per Unit: $60,526 Closing Date: 06/2015 Total Square Footage: 17,251 Rambling Oaks Property Address: 8810 Fairfield Greens, Midwest City Size and Age: 20-units, Built in 1980 Price: $2,000,000 Price Per Unit: $100,000 Closing Date: 10/2014 Total Square Footage: 27,281 Fairfield Greens Property Address: Cedar Springs Lane, OKC Size and Age: 16-units, Built in 1974 Price: $1,432,500 Price Per Unit: $89,531 Closing Date: 12/2013 Total Square Footage: 23,202 Cedar Springs 30

32 Sold Comparison Property Address: 800 Chowning, Edmond, OK Size and Age: 30 Duplexes with 60-units, Built in 1979 Price: $3,300,000 Price Per Unit: $55,000 Price SF: $55.03 Closing Date: 07/2012 Total Square Footage: 59,967 The Cottages 31

33 Sale Comp Summary -Not all sales are directly comparable to the subject property, but are provided to show the range of values for smaller investment packages. Property Price/Unit Overall Price No. Unit Year Built Commerce Duplexes $155,625 $1,245, Rambling Oaks $60,526 $1,150, Fairfield Greens $100,000 $2,000, Cedar Springs $89,531 $1,432, The Cottages $55,000 $3,300, Average $74,207 $9,127, Subject Property $66,761 $3,071, $170,000 $150,000 $130,000 $110,000 $90,000 $70,000 Price per Unit Average $50,000 $30,000 $10,000 $155,625 Commerce Duplexes $60,526 $100,000 $89,531 Rambling Oaks Fairfield Greens Cedar Springs The Cottages Parkwood Duplexes $55,000 $66,761 32

34 Sale Comp Map 33

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36 Click below to view Moore Economic Quick Facts 35

37 Click below to view Oklahoma City at a Glance 36

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39 Mike Buhl CRRC Oklahoma City th Avenue SW, Suite 100 Norman, OK Darla Knight CRRC Tulsa 4137 S. Harvard, Suite E Tulsa, OK darla@crrc.us 38

40 OKLAHOMA REAL ESTATE COMMISSION What You Need to Know About Broker Services A real estate broker may work with one or both parties to a real estate transaction. The Oklahoma Broker Relationships Law (Title 59, Oklahoma Statutes, ) allows a real estate firm to provide brokerage services to both parties to the transaction. This could occur when a firm has contracted with a seller to sell their property and a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer on the property, the firm must now provide a written notice to both the buyer and seller that the firm is now providing brokerage services to both parties to the transaction. Oklahoma real estate brokers have mandatory duties and responsibilities to all parties in a real estate transaction. These duties and responsibilities shall be described and disclosed in writing prior to signing a contract to sell, purchase, lease, option or exchange real estate. These duties and responsibilities are to: Treat all parties with honesty and exercise reasonable skill and care. Receive all written offers and counteroffers, reduce offers or counteroffers to a written form upon request of any party to a transaction and present timely all written offers and counteroffers (unless specifically waived in writing by a party). Timely account for all money and property received by the broker. Disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act. Comply with all requirements of The Oklahoma Real Estate License Code and all applicable statutes and rules. Keep confidential information received from a party or prospective party confidential unless written consent is granted by the party, the disclosure is required by law, or the information is public or becomes public as the results of actions from a source other than the broker. Confidential information includes: o That a party is willing to pay more or accept less than what is being offered o That a party or prospective party is willing to agree to financing terms different from those offered o The motivating factors of the party or prospective party purchasing, selling, leasing, optioning or exchanging the property o Any information specifically designated as confidential by the party unless such information is public. A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerage services. These duties and responsibilities shall also be described and disclosed in writing prior to signing a contract to sell, purchase, lease, option and exchange real estate. These duties are to: Inform the party in writing when an offers is made that the party will be expected to pay certain costs, brokerage services costs and approximate amount of the costs. Keep the party informed regarding the transaction. If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker shall provide written disclosure to the party for whom the broker is providing services. The disclosure shall include a description of those steps in the transaction that the broker will not provide and state that the broker assisting the other party in the transaction is not required to provide assistance with these steps in any manner. Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by the broker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract to purchase, option or exchange real estate. Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerage services to a landlord under a property management agreement, the services provided to the tenant by the broker shall not be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to in writing; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care. For more information, visit This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission. OREC BROKER SERVICES INFORMATION ( )