cambridge court apartments - loopnet...number of stories 2 development density 22.0 units/acre (132...

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Add Value 132 Unit Multifamily Sale | A Superior Add Value Property With Above Market Proforma Cap Rates & Double Digit COC Returns Superior Affordable C/B-Multifamily Strong Cash Flow Property | Limited Sales or For Sale Inventory in Area | Built 1970 | Fully Upgraded 2000/Partially 2006/2017 | Market Rate Property a Mix of Market Affordable Housing Vouchers w/Tenant Waiting List | Financing Options: Assumable $6,255,000 Non-Recourse Loan at 4.37%+ to 10.31.2022. New Fannie Mae Non-Recourse Financing Available at 75% LTV, 5.15% Rate w/ 2 years of I/O, Yield Maintenance.

CAMBRIDGE COURT APARTMENTS46 –110 DODGE STREET ROCHESTER, NEW YORK

OFFERING & CONDITIONSDWG Capital Group (“DWG”) and NEC a New York licensed real estate broker are pleased to present

Cambridge Court Apartments, a 132 Unit Multifamily offering

This Offering Memorandum has been prepared by DWG/NEC for use by a limited number of recipients. All

information contained herein has been obtained from sources other than DWG/NEC, and neither Owner nor

DWG/NEC, nor their respective equity holders, officers, employees and agents make any representations or

warranties, expressed or implied, as to the accuracy or completeness of the information contained herein.

Further, the Offering Memorandum does not constitute a representation that no change in the business

or affairs of the property or the Owner has occurred since the date of the preparation of the Offering

Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely

the responsibility of the recipient. DWG/NEC and Owner and their respective officers, directors, employees,

equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of

the information contained in this Offering Memorandum. Additional information and an opportunity to inspect

the property will be made available upon written request to interested and qualified prospective investors.

Owner and DWG/NEC each expressly reserve the right, at their sole discretion, to reject any or all expressions

of interest or offers regarding the property and/or terminate discussions with any entity at any time with or

without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering

Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner,

a written agreement for the purchase of the property has been fully executed, delivered and approved by

Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. The

recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information,

except for such information contained in the Offering Memorandum, which is a matter of public record, or

is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and

consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the

Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose

its contents to any other person, firm, or entity without the prior written authorization of DWG/NEC and the

Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering

Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or DWG/NEC

or for any purpose other than use in considering whether to purchase the property. The Recipient and the need

to know parties agree to keep this Offering Memorandum and all confidential information contained herein

permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above.

If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such

negotiations, the Recipient will return this Offering Memorandum to DWG/NEC.

JUDD DUNNINGPRESIDENT | PARTNER

[email protected]

ANDREW T. KNIGHTNY Lic. #10311206075 / NY NECB Corp. #4800708

ED PETTI – FINANCINGNew York, NY [email protected]

MARTIN SHEINBEINDWG AND LEGION CAPITAL ANALYST

[email protected]

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TABLE OF CONTENTSOverview and Offering Procedures 4

Investment Highlights 8

Financial Analysis 15

Property Overview 26

Market Overview 30

Location Overview 36

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PROPERTY OVERVIEWProperty Type Add Value Multi-Family - Garden/Low Rise

Address 46–110 Dodge Street

City and State Rochester, NY 14620

Year Built 1970

Renovations Full and Partial: 2000 / 2006 / 2016

Recent Renovations $160,000+ since June 2017

Number of Units 132

Average Unit Size 770 SF

Total Number of Buildings 11

Unit Mix 4 Three Bedrooms, 86 Two Bedrooms, 42 One Bedrooms

Number of Stories 2

Development Density 22.0 Units/Acre (132 Units / 6 Acres)

Net Rentable Area (NRA) 101,970 SF

Gross Building Area (GBA) 124,124 SF

Parking Total 198 (Surface) Parking Spaces 1.5 per Unit

Rental Type Market Rate Property Leased via Solid Mix of Market Tenants and Monroe County Affordable Vouchers

PRICING OVERVIEWValuation Price $9,300,000 Market Sale*

Price Per Unit $70,455 or Market Sale*

As Is Income/In Place 2017 $539,000 / 2016 $600,000 (*Per Sellers P and L)

Proforma NOI Approx. $715,000 to $735,000 (18 to 24 months)

Proforma Cap Rate See Pricing Matrix*

Year-1 Cash-On-Cash Return (Including I/O) See Pricing Matrix*

Year-1 Cash-On-Cash Return (Amortizing) See Pricing Matrix*

Assumable Debt $6,255,000 Non-Recourse Loan at 4.37%+ to 10.31.2022 In Place & Available. Contact: Tim Looney [email protected] . 1% assumption fee.

Proposed New Debt (*after 450,000 Defeasance) CCRE/Berkeley Point 5.15% Rate, 75% LTV, 2 Years I/O and Yield Maintenance Contact: Ed Petti [email protected]

* See Pricing Matrix on page 5. 4

5Date of Analysis: 6/1/18

PRICING OVERVIEWPRICING MATRIXVALUE ADD WITH ASSUMABLE IN-PLACE FINANCINGAssumable Loan Balance/Terms: $6,255,000 Non-Recourse Loan 4.37%+ to 10.31.2022. 1% Assumption Fee.

Purchase Price$8,300,000

$62,879 /unit$8,550,000

$64,773 /unit $8,800,000

$66,667 /unit $9,050,000

$68,561 /unit$9,300,000

$70,455 /unit

Res

idua

l Cap

Rat

e

6.50% 23.45% / 2.16x 20.36% / 1.97x 17.60% / 1.82x 15.13% / 1.68x 12.89% / 1.56x

6.75% 21.25% / 2.02x 18.19% / 1.84x 15.48% / 1.69x 13.04% / 1.57x 10.83% / 1.46x

7.00% 19.07% / 1.88x 16.07% / 1.72x 13.39% / 1.58x 10.99% / 1.46x 8.81% / 1.36x

7.25% 16.93% / 1.76x 13.96% / 1.60x 11.33% / 1.48x 8.96% / 1.37x 6.82% / 1.27x

7.50% 14.80% / 1.64x 11.88% / 1.50x 9.28% / 1.38x 6.95% / 1.28x 4.84% / 1.19x

7.75% 12.70% / 1.53x 9.82% / 1.40x 7.26% / 1.29x 4.96% / 1.19x 2.88% / 1.11x

8.00% 10.60% / 1.43x 7.76% / 1.30x 5.23% / 1.20x 2.97% / 1.11x 0.92% / 1.03x


$62,879 /unit$8,550,000

$64,773 /unit$8,800,000

$66,667 /unit$9,050,000

$68,561 /unit$9,300,000

$70,455 /unit

Yr 1 Cash-on-Cash Return 7.30% 6.66% 6.12% 5.67% 5.27%

Avg. Cash-on-Cash Return 10.83% 9.88% 9.08% 8.41% 7.83%

Yr. 1 Cap Rate 6.91% 6.71% 6.52% 6.34% 6.16%

Yr. 2 Stabilized Cap Rate 8.46% 8.21% 7.98% 7.76% 7.55%

Notes:

The Proforma assumes a new owner will spend $2,750 per unit in upgrades as units turn with 1/3 of the site upgraded in Year 1 and the remainder of the site upgraded by end of Year 2. We assume units achieve on average rental premiums of $100/month as confirmed by in place management as achievable with high levels of demand.

» Sellers expenses were adjusted as follows to market as follows:

» General & Administrative was increased from $100 to $150 per unit

» Marketing from $75 to $125 per unit

» Payroll was increased from $900 to $1000 per unit to market

» Repairs and Maintenance (Including turns) was increased from $275 to $500

» Insurance from 175 to 400 to local market levels

» Concessions were added in a 1%

» Loss to Lease 3%

» Vacancy of 3% was applied

» We assume a tax reassessment occurs in 2021 (per Monroe County discussions) with the assessed value increasing by approximately 51% as based on county wide sale averages

» Loan defeasance cost approximately $450,000+

6Date of Analysis: 6/1/18

PRICING OVERVIEWPRICING MATRIXVALUE ADD WITH NEW DEBT


$62,879 /unit$8,550,000

$64,773 /unit $8,800,000

$66,667 /unit $9,050,000

$68,561 /unit$9,300,000

$70,455 /unit

Res

idua

l Cap

Rat

e

6.50% 21.73% / 4.76x 19.86% / 4.28x 18.23% / 3.88x 16.81% / 3.55x 15.53% / 3.27x

6.75% 21.17% / 4.54x 19.30% / 4.08x 17.68% / 3.70x 16.25% / 3.38x 14.97% / 3.12x

7.00% 20.63% / 4.34x 18.76% / 3.90x 17.13% / 3.53x 15.70% / 3.23x 14.43% / 2.98x

7.25% 20.10% / 4.15x 18.23% / 3.73x 16.60% / 3.38x 15.17% / 3.09x 13.90% / 2.85x

7.50% 19.59% / 3.97x 17.71% / 3.57x 16.08% / 3.23x 14.65% / 2.96x 13.38% / 2.73x

7.75% 19.09% / 3.81x 17.21% / 3.42x 15.58% / 3.10x 14.14% / 2.84x 12.87% / 2.61x

8.00% 18.60% / 3.65x 16.71% / 3.28x 15.08% / 2.97x 13.65% / 2.72x 12.37% / 2.51x


$62,879 /unit$8,550,000

$64,773 /unit$8,800,000

$66,667 /unit$9,050,000

$68,561 /unit$9,300,000

$70,455 /unit



Yr. 1 Cap Rate 6.91% 6.71% 6.52% 6.34% 6.16%


Notes:

The Proforma assumes a new owner will spend $2,750 per unit in upgrades as units turn with 1/3 of the site upgraded in Year 1 and the remainder of the site upgraded by end of Year 2. We assume units achieve on average rental premiums of $100/month as confirmed by in place management as achievable with high levels of demand.

» Sellers expenses were adjusted as follows to market as follows:

» General & Administrative was increased from $100 to $150 per unit

» Marketing from $75 to $125 per unit

» Payroll was increased from $900 to $1000 per unit to market

» Repairs and Maintenance (Including turns) was increased from $275 to $500

» Insurance from 175 to 400 to local market levels

» Concessions were added in a 1%

» Loss to Lease 3%

» Vacancy of 3% was applied

» We assume a tax reassessment occurs in 2021 (per Monroe County discussions) with the assessed value increasing by approximately 51% as based on county wide sale averages

OFFERING PROCEDURESTour Schedule: Please contact Judd Dunning (jdunning@

dwg-re.com) or Karsh Bhagi ([email protected]) to

schedule a tour. Under no circumstances are Investors

allowed to visit the Property without approval from DWG/

NEC. Failure to adhere to this request will be taken into

consideration by the Seller when offers are selected. Offer

Due Date: TBD. Strong Offers Sent In Early with Clean

Terms May Be Considered Prior.

Best & Final: Upon review of the initial offers submitted, if

appropriate, a select group of Investors will be notified of

their participation within the Best and Final Round.

Terms and Conditions: The Property is offered on an “as

is” basis, subject to the existing rent.

Approvals: Approval shall not be unnecessarily withheld

from legitimate Investors.

Selection and Criteria: The prospective Investor will be

selected by the Owner, in its sole and absolute discretion,

on the basis of a complement of factors, including, but not

limited to purchase price; the Investor’s financial strength/

balance sheet capacity; level of discretion to invest funds;

ability to close in a timely fashion; experience in closing

similar transactions; reputation within the industry and the

extent to which due diligence is completed.

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INVESTMENT HIGHLIGHTS

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SOLID TENANCY AND ADD VALUE COMMUNITYHaving recently undergone ownership restructuring, Cambridge Court is now prime to be repositioned and prosper within a submarket that boasts significant employers and renowned economic drivers. During the Property’s recent management change, the Seller commenced aggressive re-tenanting by evicting problem tenants and invested approx. $160,000 in capital improvements the last year which focused on, among other items, make-ready improvements of vacant units. Cambridge Court Apartment was built in 1970 and full renovated over 2000 to 2006 and then recently improved, it features 132 studio, one, two, and three-bedroom units that will immediately create upside for an Investor entering the Rochester market or seeking to increase the economies of scale across an existing local portfolio. The area market has very limited sales available and lies within a tight apartment market. A new Investor can easily step in and focus on completing the current lease-up process and increase rents by approx. $100 per unit for minimal $2,750 a unit investment without deploying significant capital to reposition the asset and garner above market IRR and COC returns in approx. 12 to 24 months.

SOME LIFTING COMPLETED / MODERATE LIFTING FOR ADD VALUERECENT CAPITAL IMPROVEMENTS CAMBRIDGE COURT APARTMENTS Roofing $14,670 Replaced roofs on building 110-108 $38,100. Replaced roof on buildings

84, 82, 80 & 78 $30,255. Repaired Roofs on remaining buildings.

Plumbing $7,000 Added new cleanouts to several buildings.

Tile $2,800 Phase 1 Installation of tile in units and breezeways $2,400. Phase 1 Installation of tile in units.

Painting $26,100 Preparation, siding repairs, priming and painting of all exterior buildings.

Hot Water Heater $2,640 Replaced water heaters in several buildings.

Parking Lot $1,700 Parking lot repair.

Boilers $18,550 Repair or replaced boilers in several buildings.

Laundry Upgrade $9,600 Drywall, Preparation & Paint each laundry facility.

Approximate Total $153,815


*More Pictures in Diligence Warroom Available9

University of Rochester

OUTSTANDING, DRIVER-HEAVY LOCATION SURROUNDED BY MAJOR EMPLOYERS

The Rochester, NY MSA is located in the western portion of the state. The MSA is comprised of six counties, and is anchored by the City of Rochester. The counties are Livingston, Monroe, Ontario, Orleans, Wayne and Yates. The MSA contains three major cities; Rochester, Canandaigua and Geneva. The site is just 3 miles from Downtown Rochester.

Located in the Northwest quadrant of Rochester in Monroe County, this complex has easy access to from the 390/490 and is minutes from the central business district. Cambridge Court exemplifies convenience and is surrounded by several of the region’s most notable and impactful economic drivers. Rochester Regional Health, Xerox, Top Markets LLC, Frontier Communications are some of the area’s biggest employers. Also recently developed in the area at cost of $200 million, “CityGate” is the greater area’s newest mixed-use project. The 45-acre destination center is anchored by a 156,000 square foot CostCo that opened in June 2015 and is expected to create more than 1,000 permanent local jobs. Cambridge Court is a working class community with great demand that also feeds off the region’s educational prowess.

Two renowned higher education institutions, the University of Rochester and the Rochester Institute of Technology or “RIT”, sit within a four mile radius of the Property. Combined, the two schools enroll over 28,000 students and employ nearly 13,000 faculty and staff. Strong Memorial Hospital, the University of Rochester’s primary teaching hospital and school of medicine, sits less than a mile northwest of Rochester Highlands and offers 739 beds and employs 9,500 physicians and staff.

CityGate

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490

490

Downtown

Rochester

Genese

e R

iver

Inner Loop

W Main St

390

Chill Ave

31

Mt R

eed B

lvd

West Ave

Lyell Ave

Lake A

ve

Lake A

ve

Jay St

Downtown

Rochester

Genese

e R

iver

Inner Loop

W Main St

Chill Ave

Mt R

eed B

lvd

West Ave

Lyell Ave

Jay St

Lyell AveLyell Ave

Greater Rochester International Airport$800M Economic Impact22-Gate TerminalServes 2.4M Passengers Annually

CAMBRIDGE COURT APARTMENTS

University of Rochester$1.9B Economic ImpactLargest Employer in Rochester11,100 Students, 4,600 Faculty and Staff$2.2B Endowment154-Acre Main Campus

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ADD VALUE AND MARK-TO-MARKET OPPORTUNITYCambridge Court is strategically tenanted by primary Housing Vouchers with standard tenants which represents a tremendous future opportunity for an Investor to capture untapped rental income upon stabilization. Based on DWG’s survey of nearby market-rate properties, average effective rents at Cambridge Court lag the market by $100 or more once upgraded. Cambridge Court’s position as the value option within the submarket, combined with the approx. $160,000 in recently completed capital improvements, will allow a new investor to realize material rent gains in the near future. DWG’s Analysis assumes an average rent increase of $100 following stabilization. With its surrounding competition set, the solid traditional structure of the Cambridge Court makes its product type prime for market performance once re-repositioned.


Glennbrook Manor Apartments

Hamlet Court Apartments

Westview Commons

Apartments

Imperial South Apartments

Cambridge Court Apartments

3 MILES TO DOWNTOWN

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$500

$600

$700

$800

$900

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Asking Rent Effective Rent

86.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

0

25

50

75

100

125

150

175

200

225

250

Completions Occupancy

Projected

Rochester Rental Trends

11.1% Effective Rent Growth Since 2011

Projected

Rochester Supply and Occupancy Trends

Occupancy Expected to Remain Above 94%

LOCAL MARKET TRENDS

TIGHT APARTMENT MARKET Last quarter and forward, occupancy in the Central Rochester submarket remains robust at 96.8%, bolstered by the submarket’s prominent educational and medical institutions. The Greater Rochester MSA boasts the 9th lowest vacancy rate out of the 82 metros tracked by REIS/CoStar nationwide and new construction within the submarket has and will continue to be muted. REIS/CoStar expects attractive underlying fundamentals will keep submarket occupancy above 95% over the next five years. Forecasts project that rents will increase by an additional 7% through 2021.

Over the past ten years the Rochester apartment market inventory increased slightly by 3.2% while households nominally expanded by 1.5%. These trends have resulted in stable market conditions where there is balance in prevailing apartment supply/demand conditions. This is evident by the positive absorption (6.3% change), moderate decrease in the vacancy rate (-2.7% change) and considerable increase of the actual average rent (23.2% change) over this time period. Over the past ten years the market had a compound annual growth rate (CAGR) of 0.40% per year. Vacancy is 2.7% in 2018

The Rochester market has a total apartment inventory of 37,514 units with 999 units vacant indicating a current vacancy rate of 2.7%. There were 177 units added in the last year. Over the past four quarters the Rochester apartment market has experienced a moderate increase of supply and nominally contracted households. These key factors had a compounded adverse impact that resulted in positive net absorption, decrease of vacancy rates and increase of actual rent achieved in the market.

The Rochester apartment market demonstrates strong fundamentals. Analysis of supply and demand trends indicate the market is currently in a state of balance with no evidence to prove this will change any time soon. There are no observed weaknesses of the market that stand out.

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MONROE COUNTY/ROCHESTER TAX ASSESSOR’S PROPERTY ANALYSISThe total assessment for the Cambridge Court subject property is $3,300,000 or $25,000/Unit. There are no exemptions in place.

Total taxes for the property are $137,173 or $1,039/Unit at a rate of approx. $51 dollars per $1,000 in value.

Monroe County assessed taxes not at time of sale but upon anniversaries of assessment based upon market value. The next assessment shall be in 2020. Future tax rates increases and assessed value are based on averaged by citywide averages aka “Market Value”. Estimates from the tax assessment office have been reported that with a new sale at full asking price, that tax rates for the

subject property when reassessed in 2020 shalll very possibly remain below market sale price at approximately $5,000,000+. (*Buyer to do own diligence)

The property applied tax date starts every July 2018 for City and School at $39.45 per 1000 as of 3.15.18 and the County every January 2021 is $11.78 per $1000 as of today with new billing at 1/1/21. For more info contact Rochester Assessment Division. City Tax Office Rochester, City Hall Rochester, NY (585) 428-7221.

According to the staff representative at the County Assessor’s Office, real estate taxes for the subject property are current as of the date of this report.


Lake Ontario

New York

Monroe County

46–110 Dodge St, Rochester, NY 14606 Final Roll of 5/1/2017

Municipality (SWIS Code) Parcel ID Total Assessed Value Land Assessed Value

Rochester (261400) 105.69 – 3.001 $3,300,000 $193,100

Property Class (Code) School District (Code) Lot Size (Sqft) (Front x Depth) Acres

Apartment (411) Rochester (261400) 1,205.55 x0224.67 6.00

Site #1 Non-Residential, Apartment (411) Roll Year 2017

Utilities Water Supply Floor Area Sewer Type

Gas & elec Comm/public 124,124 Sqft Comm/public

Non-Residential Buildings

Building # — Section # GFA x # Identical # Stories / Basement Year Built

1 — 1 2 — 1

3,348 Sqft x 11 3,968 Sqft x 22

2.0 / NA 2.0 / NA

1970 1970

Commercial Uses

# — Use Code Size / # Units # — Use Code Size / # Units

1 — Walk-up apt 124,124 Sqft / Units

Source: County Assessor’s Office — Rochester Assessment Division

FINANCIAL ANALYSIS

PROPERTY PROFORMA VALUATION

PRICING MATRIX RANGE$8,300,000 to $9,300,000

DWG SALE GUIDANCE: Market Rate Sale Based on Cash on Cash/IRR

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Purchase Price (At Medan Analysis Price / See Pricing Matrix)

$8,800,000

Price Per Unit $66,667

Cap Rate — Year-1 Proforma 6.72

Cap Rate — Year-1 Proforma 7.98

Year-1 Cash-On-Cash Return (Including I/O) 9.42

Year-1 Cash-On-Cash Return (Amortizing) 11.47

New Debt Analysis Proposed New Debt — Agency

Loan to Value 75% $6,600,000

Equity Required $2,739,000

10-Year Treasury 2.81%

Spread 234 bps

All-In Rate (2 Years IO) 5.15 %

Amortization Period 30 years

Loan Term 10 years

Monthly Payment $36,008

Annual Payment $4,32,453

Reversion Analysis

Holding Period 10-Year Hold

Next Year NOI (including reserve expense) $2,208,774

Sale Cap 7.5%

Sale Price $12,085, 921

Sale Price Per Unit $91,500

Transaction Costs (%) 2.00%

Transaction Costs $241,718

Net Residual Proceeds $11,844,282

Principal Balance $5,732,611

Distributable Cash Flow From Sale $6,111,592

IRR 16.6%

FINANCIAL ANALYSISVALUATION SUMMARY / NEW FINANCING (ASSUMES IN-PLACE LOANS DEFEASED TERMS)

FINANCIAL ANALYSIS

Property Information

Year Built 1970

Style Garden

Asset Type Core Plus

# of Stories 2

# of Buildings 11 Residential

Units per Building 12.00

Acres 6.00 ac

Units per Acre (Density) 22.00

# of Parking Spaces 198

Parking/Units Ratio 1.50x

Net Rentable Square Feet 101,646 SqFt

No. of Units 132 units

Average SqFt per Unit 770 SqFt

Average Rent per SqFt $1.03 PSF

Purchase Price $8,800,000

Price per Unit $66,667 / Unit

Price per SqFt $86.57 PSF

INVESTMENT SUMMARYVALUE ADD WITH NEW DEBT

Reversion AnalysisYear of Sale Year 10

NOI Used for Sale Year 11

Reversion Cap Rate 7.25%

Purchase Cap Rate 6.52%

Purchase/Reversion Spread 0.73%

Forward 12 NOI (incl. reserve exp.) $876,229

Reversion Price $12,085,921

Reversion Price per Unit $91,560

Reversion Price per SqFt $118.90

Cost of Sale (%) 2.00%

Cost of Sale -$241,718

Net Residual Proceeds $11,844,202

Principal Balance at Sale -$5,732,611

Distributable Cash Flow from Sale $6,111,592

Avg. Annual Value Appreciation 3.73%

Rent Growth (Yr 1,2,3,4,5) 0.0%, 3.0%, 3.0%, 3.0%, 3.0%

Expense Growth 2.00%

New Debt AssumptionsOrigination Date 6/1/18

Loan Amount $6,600,000

Loan to Value 75.00%

Estimated Loan to Cost 70.67%

10 Yr Treasury 2.81%

Spread 2.34%

Interest Rate 5.15%

Amortization 30 years

Years of I/O 2 years

Loan Term 10 years

Monthly Payment $36,038

Annual Payment $432,453

Fully Amortized DSCR on Proforma NOI 1.33x

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Cash Flow SummaryYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Terminal Value $0 $0 $0 $9,541,757 $0

Less : Cost of Sale $0 $0 $0 ($190,835) $0

Less : Loan Repayment $0 $0 $0 ($5,822,449) $0

Plus : Annual Cash Flow $194,178 $322,842 $349,981 $285,436 $0

Levered Cash Flow ($3,171,494) $194,178 $322,842 $349,981 $3,813,910 $0

Levered IRR 11.33%

Levered Equity Multiple 1.48x % Profit from CF/Residual 76.35% / 23.65%

Unlevered Annual Cash Flow $573,330 $701,995 $729,134 $664,589 $0

Unlevered Cash Flow ($9,436,652) $573,330 $701,995 $729,134 $10,015,511 $0

Unlevered IRR 6.84%

Unlevered Equity Multiple 1.27x % Profit from CF/Residual 103.32% -/ 3.32%

DSCR 1.62x 1.96x 2.03x 1.86x

Yield on Cost (Unleveraged Return) 6.08% 7.44% 7.73% 106.13%

Cash on Cash Return 6.12% 10.18% 11.04% 9.00%

Purchase/Reversion Price Per Unit $66,667 Purchase

$72,286 Reversion

FINANCIAL ANALYSISINVESTMENT SUMMARYVALUE ADD WITH NEW DEBT

Returns SummaryLevered IRR 11.33%

Unlevered IRR 6.84%

Levered Equity Multiple 1.48x

Unlevered Equity Multiple 1.27x

% Profit from CF/Residual 76.35%/23.65%

Avg. CoC 9.08%

Yield on Cost (Stbl’d, Yr 1) 6.08%

Average Annual Return 11.90%

Total Accumulation of Wealth $4,680,911

YE 2017 Cap Rate 5.90%

Proforma Yr 1 Cap Rate 6.52%

Sources & UsesUses Cost Per Unit % of Total

Purchase Price $8,800,000 $66,667 94.23%

Capital Expenditures $363,000 $2,750 3.89%

Loan Assumption Fee & Costs

$97,652 $740 1.03%

Closing Costs $132,000 $1,000 1.50%

Due Diligence $44,000 $333 0.50%

Total Uses $9,436,652 $71,490 100.00%

Sources Cost Per Unit % of Total

Debt $6,265,157 $47,463 66.39%

Equity $3,171,494 $24,026 33.61%

Total Sources $9,436,652 $71,490 100.00%

CapEx BudgetCapEx Item Per SqFt Per Unit

Premium Interior Upgrade 132 Units $363,000 $3.57 $2,750

Deferred Maintenance $0 $0.00 $0

Ext Paint, Gutters, & Stucco Repair

$0 $0.00 $0

Other $0 $0.00 $0

Pool $0 $0.00 $0

Office, Equipment & Model $0 $0.00 $0

Landscaping $0 $0.00 $0

Contingency $0 0.00% $0

Subtotal CapEx Budget $363,000 $3.57 $2,750

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FINANCIAL ANALYSISPROFORMA CASHFLOWVALUE ADD WITH NEW DEBT

Unit MixType # of Units % of Total Avg. SqFt Total SqFt Asking Rent Monthly Annual Rent PSF

1BR/1BA 42 31.82% 654 27,468 $710 $29,820 $357,840 $1.09

2BR/1BA 86 65.15% 823 70,778 $825 $70,950 $851,400 $1.00

3BR/1BA 4 3.03% 850 3,400 $910 $3,640 $43,680 $1.07

Totals & Averages 132 100% 770 101,646 $791 $104,410 $1,252,920 $1.03

Property TaxesYear 1 2018

Year 2 2019

Year 3 2020

Year 4 2021

Year 5 2022

Year 6 2023

Year 7 2024

Year 8 2025

Year 9 2026

Year 10 2027

Year 11 2028

Assessed Value $3,300,000 $3,300,000 $3,300,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000

Assessed Value Per Unit $7,841 $7,841 $7,841 $7,841 $7,841 $7,841 $7,841 $7,841 $7,841 $7,841 $7,841

Assesment Ratio 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Tax Rate 0.05134 0.0524 0.0534 0.0545 0.0556 0.0567 0.0578 0.0590 0.0602 0.0614 0.0626

Growth % 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%

Tax on Real Property $169,422 $172,810 $176,267 $272,412 $277,860 $283,418 $289,086 $294,868 $300,765 $306,780 $312,916

Add’tl Assessments (Personal, etc.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Annual Property Taxes $169,422 $172,810 $176,267 $272,412 $277,860 $283,418 $289,086 $294,868 $300,765 $306,780 $312,916

20

FINANCIAL ANALYSIS

Historical ProformaActual 2016 Actual 2017 Year 1 - 2018 Year 2 - 2019 Year 3 - 2020 Year 4 - 2021 Year 5 - 2022 Year 6 - 2023 Year 7 - 2024 Year 8 - 2025 Year 9 - 2026 Year 10 - 2027 Year 11 - 2028

Rental Increase (% of Prior Year) N/A -0.85% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Value-add: Premium Interior, Avg Increase $100.00 $103.00 $106.09 $109.27 $112.55 $115.93 $119.41 $122.99 $126.68 $130.48 $134.39 Value-add: Premium Interiors Upgraded 44 132 132 132 132 132 132 132 132 132 132Vacancy (% of GPR) 0.00% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Rent Concessions (% of GPR) 0.00% 0.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Bad Debt (% of GPR) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Loss to Lease (% of GPR) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Other Income Growth (% of Prior Year) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Growth (% of Prior Year) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%IncomeGross Potential Rent $1,121,618 $1,112,135 $1,252,920 $1,290,508 $1,329,223 $1,369,100 $1,410,172 $1,452,478 $1,496,052 $1,540,934 $1,587,162 $1,634,776 $1,683,820Value-add Premium 52,800 163,152 168,047 173,088 178,281 183,629 189,138 194,812 200,656 206,676 212,876Less: Vacancy Loss -37,588 -38,715 -39,877 -41,073 -42,305 -43,574 -44,882 -46,228 -47,615 -49,043 -50,515Less: Rent Concessions -12,529 -12,905 -13,292 -13,691 -14,102 -14,525 -14,961 -15,409 -15,872 -16,348 -16,838Less: Bad Debt -12,529 -12,905 -13,292 -13,691 -14,102 -14,525 -14,961 -15,409 -15,872 -16,348 -16,838Less: Loss to Lease -37,588 -38,715 -39,877 -41,073 -42,305 -43,574 -44,882 -46,228 -47,615 -49,043 -50,515Net Rental Income $1,121,618 $1,112,135 $1,205,486 $1,350,419 $1,390,932 $1,432,660 $1,475,639 $1,519,908 $1,565,506 $1,612,471 $1,660,845 $1,710,670 $1,761,990Other Income: Repair & Cleaning 31,952 19,825 20,221 20,626 21,038 21,459 21,888 22,326 22,772 23,228 23,692 24,166 24,650Other Income: Late Fee 12,555 18,425 18,794 19,169 19,553 19,944 20,343 20,750 21,165 21,588 22,020 22,460 22,909Other Income: Misc Income 12,147 8,901 9,079 9,260 9,446 9,634 9,827 10,024 10,224 10,429 10,637 10,850 11,067Effective Gross Income $1,178,272 $1,159,285 $1,253,580 $1,399,474 $1,440,968 $1,483,697 $1,527,697 $1,573,008 $1,619,667 $1,667,715 $1,717,194 $1,768,147 $1,820,616Avg Increase/Decrease in Collections N/A -1.61% 8.13% 11.64% 2.96% 2.97% 2.97% 2.97% 2.97% 2.97% 2.97% 2.97% 2.97%Effective Rental Income PSF $0.92 $0.91 $1.03 $1.06 $1.09 $1.12 $1.16 $1.19 $1.23 $1.26 $1.30 $1.34 $1.38ExpensesGeneral & Administrative 9,458 7,761 19,800 20,196 20,600 21,012 21,432 21,861 22,298 22,744 23,199 23,663 24,136Marketing 0 0 16,500 16,830 17,167 17,510 17,860 18,217 18,582 18,953 19,332 19,719 20,113Professional Fees 6,451 3,612 3,300 3,366 3,433 3,502 3,572 3,643 3,716 3,791 3,866 3,944 4,023Payroll 119,810 119,742 132,000 134,640 137,333 140,079 142,881 145,739 148,653 151,627 154,659 157,752 160,907Repairs & Maintenance 77,932 35,829 66,000 67,320 68,666 70,040 71,441 72,869 74,327 75,813 77,330 78,876 80,454Trash 11,526 14,757 14,520 14,810 15,107 15,409 15,717 16,031 16,352 16,679 17,012 17,353 17,700Contract Services 6,495 9,816 9,900 10,098 10,300 10,506 10,716 10,930 11,149 11,372 11,599 11,831 12,068Utilities - Gas & Electric 96,366 82,102 85,800 87,516 89,266 91,052 92,873 94,730 96,625 98,557 100,528 102,539 104,590Utilities - Water 30,428 33,328 33,000 33,660 34,333 35,020 35,720 36,435 37,163 37,907 38,665 39,438 40,227Property Mgmt Fee 35,450 34,779 37,607 41,984 43,229 44,511 45,831 47,190 48,590 50,031 51,516 53,044 54,618Property Taxes 153,093 195,792 169,422 172,810 176,267 272,412 277,860 283,418 289,086 294,868 300,765 306,780 312,916Insurance 34,061 62,645 52,800 53,856 54,933 56,032 57,152 58,295 59,461 60,651 61,864 63,101 64,363Other 0 0 0 0 0 0 0 0 0 0 0Total Operating Expenses $581,068 $600,163 $640,649 $657,087 $670,634 $777,084 $793,055 $809,359 $826,002 $842,992 $860,336 $878,041 $896,115Per Unit Expenses $4,402 $4,547 $4,853 $4,978 $5,081 $5,887 $6,008 $6,132 $6,258 $6,386 $6,518 $6,652 $6,789Net Operating Income ( Loss ) $597,204 $559,122 $612,930 $742,387 $770,334 $706,613 $734,642 $763,648 $793,664 $824,723 $856,858 $890,106 $924,501Avg Increase/Decrease in NOI N/A -6.38% 9.62% 21.12% 3.76% -8.27% 3.97% 3.95% 3.93% 3.91% 3.90% 3.88% 3.86%Avg Increase/Decrease in Expenses N/A 3.29% 6.75% 2.57% 2.06% 15.87% 2.06% 2.06% 2.06% 2.06% 2.06% 2.06% 2.06%Replacements 39,600 40,392 41,200 42,024 42,864 43,722 44,596 45,488 46,398 47,326 48,272Debt Service 315,352 345,565 432,453 432,453 432,453 432,453 432,453 432,453 432,453 432,453 432,453Asset Management Fee 0 0 0 0 0 0 0 0 0 0 0Cash Flow After Debt & Reserves $257,979 $356,430 $296,681 $232,136 $259,325 $287,474 $316,616 $346,782 $378,008 $410,327 $443,777DSCR 1.94x 2.15x 1.78x 1.63x 1.70x 1.77x 1.84x 1.91x 1.98x 2.06x 2.14xYield on Cost (Unleveraged Return) 6.14% 7.52% 7.81% 7.12% 7.41% 7.71% 8.02% 8.34% 8.68% 9.02% 9.38%Cash on Cash Return 9.42% 13.01% 10.83% 8.48% 9.47% 10.50% 11.56% 12.66% 13.80% 14.98% 16.20%Cap Rate on Purchase Price (After Reserves) 6.34% 5.90% 6.52% 7.98% 8.29% 7.55% 7.86% 8.18% 8.51% 8.85% 9.21% 9.58% 9.96%Estimated Value (Reversion Cap Rate) $7,691,094 $7,165,824 $7,908,007 $9,682,693 $10,057,024 $9,166,743 $9,541,757 $9,930,023 $10,331,977 $10,748,070 $11,178,769 $11,624,554 $12,085,921Estimated Value Per Unit (Reversion Cap Rate) $58,266 $54,287 $59,909 $73,354 $76,190 $69,445 $72,286 $75,227 $78,273 $81,425 $84,688 $88,065 $91,560

PROFORMA & HISTORICALVALUE ADD WITH NEW DEBT

21

Valuation Price $9,300,000 Market Sale via Pricing Matrix

Price Per Unit $74,555 or Market Sale via Pricing Matrix

As Is Income/In Place 2017 $539,000 / 2016 $600,000 (*Per Sellers P and L)

Proforma NOI Approx. $715,000 to $735,000 (18 to 24 months)

Proforma Cap Rate See Matrix

Year-1 Cash-On-Cash Return (Including I/O) See Matrix

Year-1 Cash-On-Cash Return (Amortizing) See Matrix

Proposed Debt With New Proposed CCRE/Berkeley Point 5.15% Rate, 80% LTV, 2 Years I/O and Yield Maintenance Contact: Ed Petti [email protected]*

PRICING MATRIXVALUE ADD WITH NEW DEBT


$62,879 /unit$8,550,000

$64,773 /unit $8,800,000

$66,667 /unit $9,050,000

$68,561 /unit$9,300,000

$70,455 /unit

Res

idua

l Cap

Rat

e

6.50% 23.45% / 2.16x 20.36% / 1.97x 17.60% / 1.82x 15.13% / 1.68x 12.89% / 1.56x

6.75% 21.25% / 2.02x 18.19% / 1.84x 15.48% / 1.69x 13.04% / 1.57x 10.83% / 1.46x

7.00% 19.07% / 1.88x 16.07% / 1.72x 13.39% / 1.58x 10.99% / 1.46x 8.81% / 1.36x

7.25% 16.93% / 1.76x 13.96% / 1.60x 11.33% / 1.48x 8.96% / 1.37x 6.82% / 1.27x

7.50% 14.80% / 1.64x 11.88% / 1.50x 9.28% / 1.38x 6.95% / 1.28x 4.84% / 1.19x

7.75% 12.70% / 1.53x 9.82% / 1.40x 7.26% / 1.29x 4.96% / 1.19x 2.88% / 1.11x

8.00% 10.60% / 1.43x 7.76% / 1.30x 5.23% / 1.20x 2.97% / 1.11x 0.92% / 1.03x


$62,879 /unit$8,550,000

$64,773 /unit$8,800,000

$66,667 /unit$9,050,000

$68,561 /unit$9,300,000

$70,455 /unit



Yr. 1 Cap Rate 6.91% 6.71% 6.52% 6.34% 6.16%


Underwriting Footnotes:

The new Proforma assumes a new owner will spend $2,750 per unit in upgrades as units turn with 1/3 of the site upgraded in Year 1 and the remainder of the site upgraded by end of year 2. We assume units achieve on average rental premiums of $100/month as confirmed by in place management as achievable with high levels of demand. Sellers expenses were adjusted as follows to market as follows: General & Administrative was increased from $100 to $150 per unit, Marketing from $75 to $125 per unit, Payroll was increased from $900 to $1,000 per unit to market, Repairs and Maintenance (Including turns) was increased from $275 to $500, Insurance from $175 to $400 to local market levels, Concessions were added in at 1%, Loss to Lease 3%, and Vacancy of 3% was applied. We assume a tax reassessment occurs in 2021 (per Monroe County discussions) with the assessed value increasing by approximately 51% as based on county wide sale averages.

FINANCIAL ANALYSIS

*Assumes current in-place defeased as terms

FINANCIAL ANALYSIS

2016 AND 2017 PROFIT & LOSS

MARCH 2018 RENT ROLL

SELLER RECENT FINANCIALS

22

23

FINANCIAL ANALYSISMARCH 2018 RENT ROLL SUMMARY

GRAND TOTALS

Column AmountMarket rent $104,410.00

Recurring charges $93,990.50

Recurring credits $1,130.00

SUMMARY BY BED/BATH

Occupancy Unit Size Market RentBed/Bath No. of Units Vacant Occupied % Occupied Total Average Total Average Avg. Per Size

1 Bed/1 Bath 42 6 36 85.71% 27,475 654 $29,820.00 $710.00 $1.09

2 Bed/1 Bath 86 7 79 91.86% 70,775 823 $70,950.00 $825.00 $1.00

3 Bed/1 Bath 4 0 4 100.00% 3,400 850 $3,640.00 $910.00 $1.07

Totals and Averages 132 13 119 90.15% 101,650 770 $104,410.00 $790.98 $1.03

SUMMARY BY PROPERTY

Occupancy Unit Size Market RentProperty No. of Units Vacant Occupied % Occupied Total Average Total Average Avg. Per Size

Cambridge Court 132 13 119 90.15% 101,650 770 $104,410.00 $790.98 $1.03

Totals and Averages 132 13 119 90.15% 101,650 770 $104,410.00 $790.98 $1.03

Note: Site now fully economically leased with only 6 vacancies that already have deposits down and a waiting list.

24

FINANCIAL ANALYSIS2016 PROFIT & LOSSORDINARY INCOME/EXPENSES

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Totals

Income5122 Rental Income 93,808.00 94,824.41 96,041.00 98,177.40 95,256.27 94,045.25 90,896.00 92,817.00 94,828.00 91,497.00 93,627.00 89,194.50 1,121,617.89

5300 Repair & Cleaning 4,023.69 1,819.19 832.69 2,580.00 4,028.65 2,718.88 2,303.00 3,903.00 1,158.33 3,097.00 2,226.00 3,261.88 31,952.31

5180 Late Fee 2,175.00 1,025.00 750.00 1,025.00 1,000.00 1,025.00 825.00 725.00 1,025.00 975.00 950.00 1,055.00 12,555.00

5400 Misc income 3,473.91 679.00 596.00 1,040.00 515.00 605.00 410.00 1,789.26 718.00 665.50 1,608.07 47.00 12,146.74

Total 5000 Income 103,480.60 98,347.60 98,219.69 102,822.40 100,799.92 98,394.13 94,434.00 99,234.26 97,729.33 96,234.50 98,411.07 93,558.38 1,181,665.88

Total Income 103,480.60 98,347.60 98,219.69 102,822.40 100,799.92 98,394.13 94,434.00 99,234.26 97,729.33 96,234.50 98,411.07 93,558.38 1,181,665.88

Gross Profit 103,480.60 98,347.60 98,219.69 102,822.40 100,799.92 98,394.13 94,434.00 99,234.26 97,729.33 96,234.50 98,411.07 93,558.38 1,181,665.88

Expense6275 Management Fees 3,104.42 2,950.43 2,946.59 3,084.67 3,024.00 2,951.82 2,833.02 2,977.03 2,931.88 2,887.04 2,952.33 2,806.75 35,449.98

6280 Legal Expenses 555.00 799.46 165.00 0.00 160.00 270.00 110.00 0.00 911.82 1,187.00 680.00 220.00 5,058.28

6270 Professional Fees - Other 375.31 633.00 384.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,392.41

Total 6270 Professional Fees 4,034.73 4,382.89 3,495.69 3,084.67 3,184.00 3,221.82 2,943.02 2,977.03 3,843.70 4,074.04 3,632.33 3,026.75 41,900.67

6311 Office Supplies 31.85 61.32 225.68 248.64 436.24 270.00 129.88 82.06 0.00 663.20 769.63 359.88 3,278.38

6330 Telephone and Internet 424.63 87.00 115.24 124.65 114.89 172.76 249.16 439.68 297.52 87.00 87.00 87.00 2,286.53

6345 Dues & Subscriptions 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 2,700.00

Total 6100 Administrative Expenses 4,716.21 4,756.21 4,061.61 3,682.96 3,960.13 3,889.58 3,547.06 3,723.77 4,366.22 5,049.24 4,713.96 3,698.63 50,165.58

6450 Gas & Electric 11,407.99 11,789.96 9,226.85 13,414.17 8,041.83 4,544.97 4,961.96 4,192.39 3,307.64 6,560.24 9,262.17 9,655.39 96,365.56

6451 Water 2,227.34 2,422.47 2,138.63 2,492.65 2,475.42 2,395.10 2,898.81 2,850.89 3,230.49 2,335.26 2,770.48 2,190.51 30,428.05

Total 6400 Utilities 13,635.33 14,212.43 11,365.48 15,906.82 10,517.25 6,940.07 7,860.77 7,043.28 6,538.13 8,895.50 12,032.65 11,845.90 126,793.61

Operating and Maintenance6510 Janitorial & Cleaning Contract 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6519 Exterminating Supplies & Ser. 0.00 1,296.00 0.00 0.00 0.00 0.00 0.00 915.84 686.88 2,941.92 0.00 654.00 6,494.64

6525 Garbage & Trash Removal 923.58 916.15 887.58 917.92 1,001.18 937.75 1,264.04 909.86 940.88 1,321.97 755.01 750.01 11,525.93

6541 Repairs Materials 5,967.60 5,483.89 5,642.42 4,692.90 5,829.69 5,907.46 6,769.33 8,685.65 7,434.01 6,891.07 7,978.13 6,649.37 77,931.52

Total 6500 Operating and Maintenance 6,891.18 7,696.04 6,530.00 5,610.82 6,830.87 6,845.21 8,033.37 10,511.35 9,061.77 11,154.96 8,733.14 8,053.38 95,952.09

Taxes And Insurance6710 Property Taxes 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 12,757.71 153,092.52

6720 Liability Insurance 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 2,838.42 34,061.04

Total 6700 Taxes And Insurance 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 15,596.13 187,153.56

Total 6000 Expenses 40,838.85 42,260.81 37,553.22 40,796.73 36,904.38 33,270.99 35,037.33 36,874.53 35,562.25 40,695.83 41,075.88 39,194.04 460,064.84

6391 Security Deposit Refund 610.00 583.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,193.00

66000 Payroll Expenses 9,431.76 8,660.08 10,789.16 8,637.15 9,773.19 8,553.50 8,964.80 9,102.85 15,970.22 10,708.88 9,843.21 9,375.00 119,809.80

Total Expense 50,880.61 51,503.89 48,342.38 49,433.88 46,677.57 41,824.49 44,002.13 45,977.38 51,532.47 51,404.71 50,919.09 48,569.04 581,067.64

Net Ordinary Income 52,599.99 46,843.71 49,877.31 53,388.52 54,122.35 56,569.64 50,431.87 53,256.88 46,196.86 44,829.80 47,491.98 44,989.34 600,598.24

5410 Interest 0.77 1.10 0.19 0.02 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 2.10

Total Other Income 0.77 1.10 0.19 0.02 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 2.10

Net Other Income 0.77 1.10 0.19 0.02 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 2.10

Net Income 52,600.76 46,844.81 49,877.50 53,388.54 54,122.35 56,569.64 50,431.89 53,256.88 46,196.86 44,829.80 47,491.98 44,989.34 600,600.34

25

FINANCIAL ANALYSIS2017 PROFIT & LOSSORDINARY INCOME/EXPENSES

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Totals

Income5122 Rental Income 89,592.00 88,871.00 91,054.00 93,907.00 91,870.00 92,867.00 94,514.00 92,409.52 96,822.13 94,779.97 92,494.00 92,954.00 1,112,134.62

5300 Repair & Cleaning 2,133.00 0.00 2,095.00 2,906.26 520.11 0.00 2,127.22 2,038.74 1,888.38 1,031.79 4,609.25 475.00 19,824.75

5180 Late Fee 975.00 950.00 875.00 950.00 1,100.00 1,025.00 2,025.00 2,025.00 2,700.00 2,375.00 1,725.00 1,700.00 18,425.00

5400 Misc income 45.00 295.16 350.00 1,387.00 395.00 295.00 397.50 2,600.05 221.00 456.00 2,355.00 104.00 8,900.71

Total 5000 Income 92,745.00 90,116.16 94,374.00 99,150.26 93,885.11 94,187.00 99,063.72 99,073.31 101,631.51 98,642.76 101,183.25 95,233.00 1,159,285.08

Total Income 92,745.00 90,116.16 94,374.00 99,150.26 93,885.11 94,187.00 99,063.72 99,073.31 101,631.51 98,642.76 101,183.25 95,233.00 1,159,285.08

Gross Profit 92,745.00 90,116.16 94,374.00 99,150.26 93,885.11 94,187.00 99,063.72 99,073.31 101,631.51 98,642.76 101,183.25 95,233.00 1,159,285.08

Expense6275 Management Fees 2,782.35 2,703.48 2,831.22 2,974.51 2,816.55 2,825.61 2,971.91 2,972.20 3,048.95 2,959.28 3,035.50 2,856.99 34,778.55

6280 Legal Expenses 135.00 125.00 230.00 355.00 299.46 165.00 320.00 102.50 264.00 306.00 225.06 485.00 3,012.02

6270 Professional Fees - Other 0.00 0.00 0.00 0.00 0.00 600.00 0.00 0.00 0.00 0.00 0.00 0.00 600.00

Total 6270 Professional Fees 2,917.35 2,828.48 3,061.22 3,329.51 3,116.01 3,590.61 3,291.91 3,074.70 3,312.95 3,265.28 3,260.56 3,341.99 38,390.57

6311 Office Supplies 41.03 796.50 239.24 31.85 0.00 225.68 115.13 40.50 150.10 120.11 211.88 0.00 1,972.02

6330 Telephone and Internet 246.02 246.02 266.95 272.87 246.66 246.66 246.66 254.95 282.04 282.04 252.33 246.02 3,089.22

6345 Dues & Subscriptions 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 225.00 2,700.00

Total 6100 Administrative Expenses 512.05 1,267.52 731.19 529.72 471.66 697.34 586.79 520.45 657.14 627.15 689.21 471.02 7,761.24

6450 Gas & Electric 13,399.87 9,280.89 7,199.68 9,830.77 7,118.84 3,847.82 4,563.99 4,129.43 3,188.70 2,665.48 7,170.45 9,706.28 82,102.20

6451 Water 2,288.72 2,227.34 2,422.47 1,670.92 4,008.75 2,872.75 3,061.28 3,075.59 2,780.88 2,835.18 3,241.59 2,842.48 33,327.95

Total 6400 Utilities 15,688.59 11,508.23 9,622.15 11,501.69 11,127.59 6,720.57 7,625.27 7,205.02 5,969.58 5,500.66 10,412.04 12,548.76 115,430.15

Operating and Maintenance6510 Janitorial & Cleaning Contract 121.00 0.00 390.00 500.00 480.00 40.00 672.00 235.00 0.00 0.00 450.00 0.00 2,888.00

6519 Exterminating Supplies & Ser. 810.00 114.48 228.96 0.00 1,296.00 0.00 0.00 1,587.60 919.08 531.36 854.28 585.90 6,927.66

6525 Garbage & Trash Removal 1,176.44 1,176.44 1,196.52 1,048.56 1,227.27 1,066.81 1,850.09 1,250.41 1,229.85 1,096.90 1,192.24 1,245.92 14,757.45

6541 Repairs Materials 1,960.10 2,299.65 2,014.33 1,967.60 5,483.82 4,642.62 3,119.84 4,395.80 3,608.36 1,771.51 2,468.40 2,096.51 35,828.54

Total 6500 Operating and Maintenance 4,067.54 3,590.57 3,829.81 3,516.16 8,487.09 5,749.43 5,641.93 7,468.81 5,757.29 3,399.77 4,964.92 3,928.33 60,401.65

Taxes And Insurance6710 Property Taxes 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 16,315.97 195,791.64

6720 Liability Insurance 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 5,220.44 62,645.28

Total 6700 Taxes And Insurance 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 21,536.41 258,436.92

Total 6000 Expenses 44,721.94 40,731.21 38,780.78 40,413.49 44,738.76 38,294.36 38,682.31 39,805.39 37,233.37 34,329.27 40,863.14 41,826.51 480,420.53

6391 Security Deposit Refund

66000 Payroll Expenses 9,755.57 10,998.45 9,975.40 9,431.76 8,660.08 10,789.16 8,863.23 8,843.68 10,834.68 10,394.55 10,847.53 10,348.19 119,742.28

Total Expense 54,477.51 51,729.66 48,756.18 49,845.25 53,398.84 49,083.52 47,545.54 48,649.07 48,068.05 44,723.82 51,710.67 52,174.70 600,162.81

Net Ordinary Income 38,267.49 38,386.50 45,617.82 49,305.01 40,486.27 45,103.48 51,518.18 50,424.24 53,563.46 53,918.94 49,472.58 43,058.30 559,122.27

5410 Interest 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02

Total Other Income 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02

Net Other Income 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02

Net Income 38,267.51 38,386.50 45,617.82 49,305.01 40,486.27 45,103.48 51,518.18 50,424.24 53,563.46 53,918.94 49,472.58 43,058.30 559,122.29

PROPERTY OVERVIEW

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SERVICESLaundry Facilities

Maintenance on site

Property Manager on Site

Courtesy Patrol

24 Hour Availability

FEATURESHigh Speed Internet Access

Air Conditioning

Heating

Smoke Free

Wheelchair Accessible (Rooms)

PROPERTY OVERVIEWTypical Living Room

Typical Kitchen / Dining Room Laundry FacilitiesTypical Bedroom

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PROPERTY OVERVIEWUNIT MIXUnit Types Units % of

TotalSF Total SF In-Place Rent Avg Rent/

PSFTotal Rent Pro-forma

RentsPro-forma Rent/SF

Pro-forma Total Rent

1 Bedroom 42 32% 660 27,720 $710 $1.08 $357,840.00 $810 $1.23 $408,240.00

2 Bedroom 86 65.20% 825 70,950 $825 $1.00 $851,400.00 $925 $1.12 $954,600.00

3 bedroom 4 3% 825 3,300 $910 $1.10 $43,680.00 $1,010 $1.22 $48,480.00

TOTAL/AVERAGE 132 100% 770 101,970 $815 $1.06 $1,252,920.00 $915.00 $1.19 $1,411,320.00

FLOOR PLANS1 BEDROOM APARTMENT 660 Square feet

2 BEDROOM APARTMENT 825 Square feet

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PROPERTY CONSTRUCTIONBasic Construction Masonry and Wood

Foundation Poured concrete slab

Framing Masonry and wood

Exterior Walls Masonry and cedar shingles

Roof Type Pitched Asphalt shingle roof

Roof Cover Sealed membrane

Insulation Exact type unknown, assumed adequate (R-type) and to code for both walls and ceilings.

Plumbing Each bathroom includes a toilet, sink, and a shower/tub kit with wall-mounted showerhead. Kitchens include a sink, and garbage disposal. There are common laundry rooms in each building.

Air Conditioning Thru-wall window units

Heating Central gas-fired boiler system located in the boiler room; one boiler for every four units. Each unit has its own thermostat

Hot Water There is a central gas-fired hot water heater in the laundry room for each building

Lighting Each unit has adequate lighting (Fluorescent lights and incandescent lighting fixtures)

Electrical Each unit is separately metered

Interior Walls Drywall

Ceilings Painted and medium textured finish on gypsum board.

Windows Windows are single pane aluminum sliders with vertical blinds.

Doors Exterior doors are typically metal with peepholes. Interior doors are hollow, painted wood

Flooring Floor coverings for bath and kitchen areas are vinyl. The floor coverings in living areas are wall to wall carpeting.

Elevators No elevators

Project Amenities There are common area laundry units in each building and adequate parking.

Laundry The project offers common area laundry in each building

Countertops The subject’s units include laminate (plastic-coated synthetic with smooth surface) countertops.

Cabinets Typical wood cabinetry

Landscaping Typical landscaping. Plantings throughout the property include mowed lawn, shrubs and hedges.

PROPERTY OVERVIEW

Deferred Maintenance: Deferred maintenance is measured as the cost of repairing or restoring the item to new or reasonably new condition. Based on our interview with the property manager and the onsite inspection by the field appraiser, no observable deferred maintenance exists. Ownership representatives indicated that the property owners intend to repaint the exterior of the buildings which is anticipated to cost between $20,000 to $40,000; this figure is covered by the replacement reserves we conclude to within our income approach.

PCA: The appraisers reviewed a Property Condition Assessment report and an Phase I Environmental Site Assessment report prepared by Partner Assessment Corporation, dated July 21, 2015; no impact to value was noted nor were any critical immediate need items listed. Therefore, it is our opinion that their findings do not affect the value concluded within this report.

Hazardous Materials: This appraisal assumes that the improvements are constructed free of all hazardous waste and toxic materials, including (but not limited to) asbestos. Please refer to the Assumptions and Limiting Conditions section regarding this issue.

ADA Compliance: This analysis assumes that the subject complies with all ADA requirements. Please refer to the Assumptions and Limiting Conditions section regarding this issue.

Conclusion: The subject improvements are in average condition for their age and for the surrounding neighborhood. The interiors have Class B standard finishes, comparable to most other properties in the immediate area. The roofs are reportedly in good condition with no roof leaks reported. The property has an average design and average curb appeal.

MARKET OVERVIEW

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2

RENT COMPARABLES MAPMARKET OVERVIEW

1 3 42

Glennbrook Manor Apartments Imperial South Apartments Westview Commons Apartments Hamlet Court Apartments

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COMP 1Address 40 Hazelhurst Dr

City, State, ZIP Rochester, NY 14606

Design Garden

Number Units 290

Year Built 1972

Net Rentable Area 195,170

Average Unit Size 673

Rent Type Market

Unit Mix

Description Size Avg Rent $/SF $/SF (YR)

1 Bedroom 610 $811 $1.33 $16

2 Bedroom 869 $963 $1.11 $13

1 3 42

Glennbrook Manor Apartments Imperial South Apartments Westview Commons Apartments Hamlet Court Apartments

RENT COMPARABLESCAMBRIDGE COURT APARTMENTSUnit Types Units % of

TotalSF Total SF In-Place Rent Avg Rent/

PSFTotal Rent Pro-forma

RentsPro-forma Rent/SF

Pro-forma Total Rent

1 Bedroom 42 32% 660 27,720 $710 $1.08 $357,840.00 $810 $1.23 $408,240.00

2 Bedroom 86 65.20% 825 70,950 $825 $1.00 $851,400.00 $925 $1.12 $954,600.00

3 bedroom 4 3% 825 3,300 $910 $1.10 $43,680.00 $1,010 $1.22 $48,480.00

TOTAL/AVERAGE 132 100% 770 101,970 $815 $1.06 $1,252,920.00 $915.00 $1.19 $1,411,320.00

COMP 2Address 1577 Elmwood Ave


Design Garden

Number Units 72

Year Built 1965



Rent Type Market Rent

Unit Mix


Studio 390 830 $2.13 $25.54

1 Bedroom 665 $935 $1.41 $17

2 Bedroom 840 $1,035 $1.23 $15

COMP 3Address 350 Westview Commons Blvd


Design Garden

Number Units 200

Year Built 1992

Net Rentable Area

Average Unit Size

Rent Type Market Rent

Unit Mix


1 Bedroom 944 $1,041 $1.10 $13

2 Bedroom 1230 $1,041 $0.85 $10.16

COMP 4Address 86 Hamlet Ct


Design Garden

Number Units 184

Year Built 1962



Rent Type Market

Unit Mix


1 Bedroom 667 $805 $1.21 $14

2 Bedroom 900 $880 $0.98 $12

MARKET OVERVIEW

RENT COMPARABLES SUMMARYRENT SUMMATION TABLEComparable SUBJECT Comp 1 Comp 2 Comp 3 Comp 4Name Cambridge Court Glenbrook Manor Imperial South Westview Commons Hamlet Court Apartments

Address 46 Dodge Street 40 Hazelhurst Dr 1577 Elmwood Ave 350 Westview Commons Blvd 86 Hamlet Ct

City Rochester Rochester Rochester Rochester Rochester

State NY NY NY NY NY

Zip 14606 14606 14620 14624 14624

Design Garden Garden Garden Garden Garden

# Units 132 290 72 200 184

NRA 101,970 1972 51,480 176,912

Year Built 1970 195,170 1965 1992 1962

SF/Unit 770 673 753 972

Rent/Unit $815 $887 $985 $1,041 $842

Rent/SF $1.06 $1.22 $1.32 $0.98 $1.10

1 BD avg $710 $811 $935 $1,041 $805

2 BD avg $825 $963 $1,035 $1,041 $880

3 BD avg $910 – – – –

MARKET OVERVIEW

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3

SUBJECTAddress 46–110 Dodge St

City Rochester

Year Built 1970

Units 132

Building SF 124,124

Sale Price $8,800,000+ (See Matrix)

Price/Unit $66,667 – $72,348

Sale Date TBD

1 2 4

Cambridge Court Apartments East End Apartments Blueberry Hill Apartments Brighton Colony Apartments Penbrooke Meadows Apartments

SALES COMPARABLES

Comp 4Address 351 Penbrooke Drive

City Penfield

Year Built NY

Units 352

Building SF 294,150

Sale Price $20,700,000

Price/Unit $58,800

Sale Date 7/1/15

Comp 3Address 205 Wintergreen Way

City Rochester

Year Built 1972

Units 84

Building SF 146,690 SF


Price/Unit $84,524

Sale Date 5/25/16

Comp 2Address 15 Still Moon Crescent

City Rochester

Year Built 1995

Units 336



Price/Unit $104,482

Sale Date 3/5/17

Comp 1Address 325 Alexander St

City Rochester

Year Built 1900

Units 52



Price/Unit $67,308

Sale Date 10/9/17

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3

4

2

MARKET OVERVIEW

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MARKET OVERVIEW

$500

$600

$700

$800

$900

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Asking Rent Effective Rent

86.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

0

25

50

75

100

125

150

175

200

225

250

Completions Occupancy

Projected

Rochester Rental Trends

11.1% Effective Rent Growth Since 2011

Projected

Rochester Supply and Occupancy Trends

Occupancy Expected to Remain Above 94%

CENTRAL ROCHESTER APARTMENT MARKET (REIS/COSTAR)The Rochester Submarket, as described by REIS, is comprised of 5,949 units. As of 4Q16, effective rents averaged $779, equating to an annual increase of 2.4%, while occupancy stood strong at 96.8%.

RENT TRENDSGiven the submarket’s proven location and expanding rental demand, effective rents have continued to grow in Rochester. The submarket has seen solid rent growth in recent years, recording a 11.1% increase in effective rents over the last five years. Rents are projected to grow 6.8% through 2021, continuing the trend of remarkably consistent rent growth documented by REIS since 2000.

OCCUPANCY TRENDS4Q16 occupancy across the submarket averaged 96.8%, marking the fifth consecutive year occupancy has been above 96%. According to REIS, occupancy is projected to average 95.1% through 2021, with limited new supply being delivered to the submarket during that time (396 total units).

SUPPLY AND DEMAND TRENDSBased on REIS’s identified supply of properties under construction, the Rochester submarket delivered 236 new units in 2016. With an average of 80

new units per year expected to come online from 2017 to 2021, the supply-demand balance continues to remain in favor of owners. Net absorption has continued its positive trend with 140 net units being absorbed in Central Rochester during the 12 month period ending 4Q16.

National Cap Rates

LOCATION OVERVIEW

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ROCHESTER MARKET OVERVIEWAs the third largest urban area in New York, Rochester stands as one of the Northeast’s most desirable places to live and work given its status as a business and cultural center. Rochester is the county seat for Monroe County, and is the center of the larger metropolitan area encompassing Monroe, Genesee, Livingston, Ontario, Orleans, and Wayne Counties. One of the earliest centers for manufacturing, trade, and technology in the nation, Rochester benefits from a diverse economy that includes an expanding technology and manufacturing sector and has emerged as one of the nation’s preeminent hubs for advanced photonics.

EMPLOYMENT As of December 2016, Rochester’s unemployment rate stood at 4.7% and the greater Rochester MSA has achieved full employment in 15 of the previous 17 months. According to the Rochester Democrat and Chronicle, the “Rochester Economy will move back to a pre-recession level” in 2017. Per REIS, employment in Rochester exceeded 529,000 in 2016 and is expected to approach total employment of 550,000 by 2021.

POPULATION Rochester is New York’s third largest metropolitan area with an estimated population of 1.08 million residents. Residents are drawn to Rochester by its affordable housing and future growth will be driven by increased development and burgeoning university enrollment.

Company # of Full-Time EmployeesUniversity of Rochester 26,673

Rochester Regional Health System 15,540

Wegmans Food Markets Inc. 13,839

Xerox Corp. 6,575

Paychex Inc. 4,129

Rochester Institute of Technology 3,918

The Lifetime Healthcare Companies 3,530

Sutherland Global Services Inc. 3,080

Top Markets 2,895

YMCA of Greater Rochester 2,425

Harris Corp.’s RF Communications Division 2,100

Eastman Kodak Co. 2,000

Monroe Community College 1,717

Finger Lakes Racing Association Inc. 1,657

Finger Lakes Health 1,653

JPMorgan Chase & Co. 1,560

Hillside Family of Agencies 1,528

Frontier Communications Corp. 1,520

Hurlbut Care Communities 1,500

Lifetime Assistance Inc. 1,495

Source: Rochester Business Journal 2016

LOCATION OVERVIEW

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EDUCATION Home to multiple world renowned higher learning institutes, Rochester benefits from an annual enrollment of more than 105,000 students across 19 colleges and universities. Local institutions such as Rochester Institute of Technology, University of Rochester, Monroe Community College, St. John Fisher College, State University College at Brockport, and Nazareth College of Rochester, are a major reason Lumosity ranked Rochester the 7th “Brainiest” large metro in the nation.

UNIVERSITY OF ROCHESTER Over 11,100 students are enrolled at the University of Rochester’s 154-acre main campus. The University employs over 4,600 faculty and staff. As one of the country’s top-tier research universities and the largest employer in Rochester, the University generates over $1.9 billion annually for the regional economy. A record $2.2B endowment during 2015 helped the University of Rochester solidify its ranking as the 26th best value school in the nation, according to U.S. News & World Report. The campus is in the midst of several major construction projects including the new $50 million Wegmans Hall and a $9.1 million renovation to the Frederick Douglass Building. The four-story, 58,000 square foot Wegmans Hall will offer lab and classroom space, collaborative work zones, faculty and staff offices, and an auditorium while the renovated Frederick Douglass Building will serve as a new student center with dedicated student gathering and event space, dining center, and multiple meeting rooms.

ROCHESTER INSTITUTE OF TECHNOLOGY For more than 20 years, the Rochester Institute of Technology (“RIT”) has ranked 2nd or higher for academic reputation among Northern universities, according to U.S News & World Report. RIT enrolls over 18,600 students at its 1,300-acre main campus and offers more than 200 academic programs across nine colleges. With over 3,800 faculty and staff, RIT generates an estimated annual economic impact of $1.3 billion. Recent improvements include the completion of the new $26 million, 78,000 square foot state-of-the-art Institute Hall, a $7.2 million overhaul of the existing Woodward Swimming Pool to create the new three-story Campus Center, and the new $38 million, 112,400 square foot multi-purpose Gene Polisseni Center.

MONROE COMMUNITY COLLEGE Monroe Community College, ranked in the top 3% of U.S. community colleges for most associate degrees and certificates awarded, offers more than 100 degree and certificate programs and enrolls more than 15,000 students. MCC generates an estimated annual economic impact of $710 million for Monroe County and employs nearly 1,700 faculty and staff at its two campuses. As with other colleges and universities in Rochester, Monroe Community College has recently completed a number of construction projects. Future plans include a new 255,000 square foot, $72 million downtown Rochester campus, and a new 90,000 square foot Interdisciplinary Learning Commons.

ROCHESTER INSTITUTE OF TECHNOLOGY

UNIVERSITY OF ROCHESTER

LOCATION OVERVIEW

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LOCATION OVERVIEWTECHNOLOGY AND HEALTHCARE Home to a highly skilled workforce with technological know-how, Rochester has emerged as a technology and photonics hub for companies seeking an East Coast complement to Silicon Valley. Nationally recognized companies operating in Rochester include, Eastman Kodak Company, Xerox Corporation, and Bausch + Lomb. The Rochester Regional Health System along with The Lifetime Healthcare Companies and the Strong Memorial Hospital provide considerable employment opportunities and will fortify long-term growth throughout Rochester.

STRONG MEMORIAL HOSPITAL Part of the University of Rochester School of Medicine, the Strong Memorial Hospital is upstate New York’s premier teaching and research hospital, offering both routine and specialized medical procedures. The Facility boasts 830 beds, a regional trauma and burn center, innovative transplant programs, and a dedicated Neonatal Intensive Care Unit (NICU). Many of the Hospital’s clinical programs consistently rank among the best in the nation according to U.S. News & World Report, and Strong Memorial Hospital has earned the National Research Corporation’s “Consumer Choice Award” every year since the award’s inception in 1997.

EASTMAN BUSINESS PARK Eastman Business Park is located in northwestern Rochester and sits on a 1,200-acre technology and industrial campus. With more than 1.5 million square feet of manufacturing, laboratory and warehouse space, EBP is home to more than 60 companies. New York State has committed and invested more than $90 million to attract new companies and transform EBP into a diverse hub for research, development, and high tech manufacturing. The Park’s most notable new tenants include AIM Photonics (American Institute for Manufacturing Integrated Photonics), a $600 million federally funded joint venture research institute, as well as leading photonics firms, Photonica and Avogy. Projections call for AIM Photonics to create thousands of net new jobs while Photonica and Avogy are expected to support a combined 1,400 new jobs.

STRONG MEMORIAL HOSPITAL

RETAIL Along with its abundant downtown restaurants, boutiques and shops, Rochester offers its residents and guests numerous shopping, dining, and entertainment experiences. The Metro’s major malls include The Marketplace Mall, The Mall at Greece Ridge, and Eastview Mall.

CITYGATE CityGate is Rochester’s newest mixed-use development at a cost of $200 million. Phase I of the 500,000 square foot multi-phase development was completed in summer 2015 and includes a 156,000 square foot CostCo. Construction is underway on Phase II of the 45-acre shopping, dining, and housing development and soon to come retailers include a 27,000 square foot REI. Additional plans call for nearly 300 residential units overlooking the Erie Canal, a 150-room hotel, 52,000 square foot of retail space, 50,000 square foot of office space, and a 90,000 square foot parking garage.

THE MARKETPLACE MALL The Marketplace Mall is located three miles south of downtown Rochester and adjacent to Interstate 390, which funnels traffic from every interstate in the region directly by the mall. With approximately 1.1 million square foot of retail space, and over 140 stores, The Marketplace Mall is one of Rochester’s premier shopping destinations. Nationally recognized tenants include Macy’s, JCPenney, Sears, and Dick’s Sporting Goods.

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TRANSPORTATION GREATER ROCHESTER INTERNATIONAL AIRPORT The Greater Rochester International Airport is located four miles southwest of the City of Rochester and serves as an important component connecting Western New York with other parts of the nation and the world. The 380,000 square foot terminal has 22 passenger gates and services nearly 2.4 million passengers annually. The Airport generates an estimated economic impact of $800 million annually.

PUBLIC TRANSIT Through its subsidiary, Regional Transit Service, the Rochester-Genesse Regional Transportation Authority provides local bus service in Rochester. With over 450 buses and more than 900 employees, RTS services over 18 million passengers annually.

ROADWAYS Rochester is well served by a large network of interstate freeways and state highways. Interstate 90, known as the New York State Thruway, is located south of the CBD and provides convenient access to the City of Rochester via three exits. I-390 and I-590 encircle the inner suburbs on Rochester forming the “Outer Loop”. Interstate-490 services those traveling east/west through the Western Expressway and the Eastern Expressway, both of which connect with the City’s “Inner Loop”.

RECREATION Situated on the southern shore of Lake Ontario, the Rochester metro is part of New York’s Finger Lakes region, which Money Magazine ranked as one of the 10 best places to vacation. Residents of Rochester, along with the nearly 2 million annual visitors, enjoy access to a vast array of diverse wilderness areas, scenic trails and parks, world-class wineries, and recreational activities.

OAK HILL COUNTRY CLUB Oak Hill Country Club, which hosted the 2013 PGA Championship, is ranked in the top 20 best golf courses according to Golf Digest’s 2016 report. Located less than 4 miles from the Property, Oak Hill is one of the 62 golf courses within a 45-mile radius of Rochester. Golf.com recently ranked Rochester as the #10 best golf city in the country and #1 for golf affordability.

BUCKLAND PARK Rochester is home to more than 3,500 acres of nationally recognized parks which offer visitors breathtaking views and affordable recreational activities. Located a short walk from Rochester Highlands, Buckland Park offers guests access to a variety of amenities including scenic hiking trails, baseball and multi-use fields, playgrounds, tennis courts, and basketball courts.

LOCATION OVERVIEW

GREATER ROCHESTER INTERNATIONAL AIRPORT

OAK HILL COUNTRY CLUB

BUCKLAND PARK

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ONTARIO BEACH PARK Ontario Beach Park spans 39 acres along the northwest edge of Rochester and is a popular destination for outdoor enthusiasts and nature lovers alike. The Park, which contains one of the Great Lakes’ best natural sand beaches, offers fishing, boating, volleyball courts, basketball courts, picnicking, and picturesque views.

CULTURE AND ENTERTAINMENT Seldom seen in cities of a comparable size, Rochester is home to an abundance of cultural and entertainment options. Downtown Rochester features museums and cultural centers as well as numerous options for shopping and dining.

EASTMAN THEATRE The 2,326-seat Eastman Theatre is considered Rochester’s preeminent performance space. Part of the University of Rochester’s Eastman School of Music, the Theatre is the primary concert hall for Eastman’s orchestras, wind ensembles, jazz ensembles, and chorale. Recent major renovations include the addition of box seats, expansion of the lobby, and construction of the new Eastman East Wing, which features the 222-seat Hatch Recital Hall, faculty teaching studios, rehearsal room and a recording studio.

THE STRONG — NATIONAL MUSEUM OF PLAY As one of the largest history museums in the United States, The Strong encompasses 285,000 square feet and houses the world’s largest and most comprehensive collection of historical materials related to play. The Strong’s National Museum of Play is one of the leading museums serving families in the US and is home to the International Center for the History of Electronic Games, The National Toy Hall of Fame, and the World Video Game Hall of Fame.

GEVA THEATRE CENTER The Geva Theatre Center is a professional theater company based in the heart of downtown Rochester. Featuring over 700 seats between its Wilson Stage and Fielding Stage, GTC hosts multiple musical and theatrical productions each year. Since opening in 1972, Geva has generated over $200 million in economic activity for the community and has an estimated annual economic impact of more than $10 million.

LOCATION OVERVIEW

ONTARIO BEACH PARK

THE STRONG — NATIONAL MUSEUM OF PLAY

EASTMAN THEATRE

GEVA THEATRE CENTER

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MARKETING AWARENESSDWG Capital Group’s unsurpassed local market knowledge and deep experience in the real estate investment arena enables us to help clients make smart decisions when it comes to selling or marketing their investment properties. We work with our clients to develop a well thought-out, asset-specific strategy,and ensure each phase of the process is properly delivered. Sophisticated internal and external marketing plans help our clients reach the widest possible buyer base, ranging from small businesses, private investors and developers to publicly traded corporations & global institutional investors.

MARKETING TIMELINEThe timing of how materials are distributed to potential purchasers of the property is crucial. The project team will ensure a frequent but paced delivery of marketing materials, using various methods of communication in order to maximize the chances of reaching a potential buyer. A customized timeline will be developed which provides a firm delivery schedule and description of the type of tool utilized. This defines the method and frequency of listing distribution and provides ownership with a clear understanding of the marketing activity taking place on the project.

MARKET ANALYSISUnderstanding the dynamics of the local market is critical in communicating market and submarket subtleties to buyers during the sales. Our Team is prepared to discuss all aspects of a thorough analysis in addition to broader economic trends to educate buyers during the decision making process. The project team will perform an investment analysis on the property to obtain a clear understanding of asset value. Investment strategies and yield parameters can vary significantly among buyers, as different values and opinions are placed on the assumptions inherent within any cash flow analysis. The analysis will be tailored to a set of investment objectives of the target buyer, whether they are driven by IRR or other capital-allocation constraints.

“Experienced Brokers that also Invest and Develop Themselves. Bringing Active Experience to every sale or debt and equity assignment we carefully accept.

THAT’S DWG.”

“Don’t simply hire the BIGGEST.

Hire the BEST seasoned advisory for the assignment.”

“THE BOTTOM LINE? Tens of Thousands of Apartment Units and Millions of SF of Office, Retail, Industrial, Development, (from 3m to 180m) Sold, Purchased or Developed.”

Our clients benefit from BEST-IN-CLASS services and seamless results across the globe, every time.

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JUDD DUNNINGPRESIDENT | PARTNER

[email protected]

KARSH BHAGIASSISTANT

[email protected]

ANDREW T. KNIGHTNY Lic. #10311206075 / NY NECB Corp. #4800708

ED PETTI – FINANCINGNew York, NY [email protected]

MARTIN SHEINBEINDWG AND LEGION CAPITAL ANALYST

[email protected]

cambridge court apartments - loopnet...number of stories 2 development density 22.0 units/acre (132...

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