Downtown Kennesaw
This is a Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner ), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. Any site plans, financial projections, and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Avalon Real Estate Partners, LLC. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or Avalon Real Estate Partners, LLC, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. Avalon Real Estate Partners, LLC is representing the Seller, not the Purchaser, in this transaction and will be paid by the Seller, not the Purchaser. Any cooperating Broker shall have written exclusive authorization from Purchaser and co-op commission, if any, to be paid by purchaser. 2
THE OPPORTUNITY 57 acres available. Fully entitled for 850 residential units. Conceptual plan includes: 238 townhomes 610 apartments (senior and market surface parked) Retail Hotel Storage Office SPLOST project will widen Cherokee Street to 5 lanes and connect to Downtown Kennesaw via a new pedestrian path. Fully funded and scheduled 2Q-2019. Convenient to new Big Shanty I-75 interchange, with direct access to new Northwest Corridor Express Lanes. Very close to Kennesaw State, a growing university with more than 35,000 students. Site is being marketed for the sale of the entire site, or the seller will consider offers for different components (for-sale, senior multi-family, market multi-family, retail). Zoning, DRI, and due diligence info can be provided upon request. 3
SPECIAL DISTRICTS, PER ZONING * Special Districts explained in more detail on the following page. ZONING IS NOT SITE PLAN SPECIFIC. 4
SPECIAL DISTRICTS & USES The site is zoned by special districts, whose approximate outlines are shown on the map. The zoning is not site plan specific. Residential is capped at 850 units, but product mixes are flexible. Quantities shown on the district map are as drawn on the latest plan dated 07/25/2018 and are conceptual. District 4: 1.28 acres of mixed use small commercial District 1: (+ 23 acres) 388 Multifamily Units, Retail, Office, Storage, Hotel District 6: 38 townhomes on 4.84 acres District 2: 222 multifamily units on 9.1 acres District 3: 200 townhomes on 13.4 acres District 5: 3.34 acres of greenspace 5
EASTPARK VILLAGE LOCATION Nearby Points of Interest WEST22 Student Housing Kennesaw State University Burnt Hickory Brewery Pinetree Country Club Downtown Kennesaw 10+ restaurants Multi-use path to downtown. Construction to commence 2Q19. Big Shanty -- access to Northwest Corridor Express Lanes Revival on Main Multifamily 97% occupied 1 BR renting $2.03/sf 2 BR renting $1.70/sf 6
Senior/55+ Multifamily Market There are few 55+ multifamily projects delivering in this submarket. The closest senior multifamily is Overture Barrett, and Greystar has reported this is a top performing asset. Demographics also point to an affluent 55+ population in the submarket. Senior Multifamily Recent Comps Facility Address Development Land Price Acreage Units Price/Acre Price/unit Notes Rent/ SQFT Sterling Estates of West Cobb Dogwood Forest of Acworth Overture Powers Ferry Marietta Sterling Estates $5,547,700 27.0 197 $205,394 $28,161 Quoted rents are detached cottages, sans initiation fee. Acworth Solomon $5,922,000 8.8 181 $674,487 $32,718 Under Construction. NA Cumberland Greystar $5,440,000 + 5 171 $1,088,000 $31,813 Overture Barrett Kennesaw Greystar $5,038,200 8.1 190 $622,000 $26,517 Close pending LDP. Contract price - $32,000/door. A top performing asset for the company. $3.57 $2.95 $2.35 Household Income by Age Under 45 Age 45-54 Age 55-64 Age 65-74 Age 75+ Household Totals 12,942 5,630 4,351 2,619 1,598 % of Total Households 47.69% 20.74% 16.03% 9.65% 5.89% Income $75,000 - $99,999 1,917 894 593 390 158 Income $100,000 - $124,999 1,278 779 528 274 107 Income > $125,000 1,940 1,678 1,235 552 227 32% of households are aged 55+ 47% have household incomes over $75,000 / year 34% have household incomes over $100,000 / year 7
Multifamily Market This is an unprecedented opportunity to acquire fully entitled multifamily land in Downtown Kennesaw. As of October 28, 2018 there are no other approved multifamily zonings in or around Downtown Kennesaw. Revival on Main, built 2016 in Downtown Kennesaw (250 apartments and 11,000 square feet of retail space) rents 1 bedrooms for $2.03/SF and 2 bedrooms for $1.70. These apartments are 97% occupied. REVIVAL ON MAIN RENTS SF RENT $/SF 1 BR 780 $1,550 $1.99 1 BR 638 $1,480 $2.32 1 BR 638 $1,370 $2.15 1 BR 853 $1,500 $1.76 AVG 727 $1,475 $2.03 2 BR 1055 $1,650 $1.56 2 BR 1055 $1,635 $1.55 2 BR 1076 $2,265 $2.11 2 BR 1141 $1,915 $1.68 2 BR 1141 $1,875 $1.64 2 BR 1141 $1,925 $1.69 2 BR 1115 $1,900 $1.70 AVG 1103 $1,881 $1.70 Revival on Main, Kennesaw 97% occupied 8
Comparable For-Sale Subdivisions Townhomes in nearby communities support the vision of Eastpark Village. Apart from these communities, there are very few new forsale opportunities in such proximity to KSU and Downtown Kennesaw. (1) Terraces at Depot Park Fortress Builders 38 20 3 story townhomes Average sale prices - low $300s Recently opened for sales 11 homes closed in first quarter open for sales (3Q18) (2) Village at Fullers Chase Traton 28 20 3 story townhomes Advertising from low-mid $300s. Has not opened for sales yet. (3) Cantrell Crossing Kerley 70 20 3 story townhomes Coming Soon Pricing not released (4) Prichard Park Piedmont Residential Neighborhood is Coming Soon Planned for 30 THs and 56 condos on 4.85 acres Terraces at Depot Park townhomes 9
Kennesaw Demographics Support Mixed-Use Development Walkable downtowns are catalysts for new development and population growth, attracting everyone from millennials to downsizing empty nesters. Downtown Kennesaw is no different, with a growing and walkable town center home to museums, shopping and over 10 restaurants. Woodstock and Marietta are two sought after submarkets with well established and bustling town centers. Both markets have seen notable development activity in this cycle, including new restaurants and retail as well as high end townhomes and new apartments. Below is a comparison of Kennesaw demographics to Marietta and Woodstock. Kennesaw features favorable demographics to both, indicating a population that can support more restaurants, retail, and housing stock. DEMOGRAPHIC COMPARISON Kennesaw Woodstock Marietta 2018 Q3 Pop 74,174 59,285 60,403 2018 Q3 HHs 26,796 21,702 23,229 2018 Q3 Pop Age 20-64 63% 79% 78% 2018 Q3 Pop Age 65+ 6,638 7,170 7,187 2018 Q3 Average Age 35 37 36 2018 Q3 Average HH Income $87,859 $94,391 $72,427 HHs with incomes over $100k 32% 36% 23% Renter percentage 33% 27% 49% More rooftops than Marietta and Woodstock, with a slightly younger population overall, and with high incomes. (3 mile radius searched) Fountain in Marietta Square Downtown Woodstock 1 0
Site Pictures looking north over District 1 and District 6 WEST 22 (Student Housing) 11
Site Pictures looking south towards downtown Kennesaw, over total site 12
Site Renderings (Video animations can be viewed here) 13
Location Map 14