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6028 Vanderbilt Drive

Mt. Morris, MI 48458

For Real-Time Property Information go to:

Vanderbilt.BerkadiaREA.com

152 Units Built: 1970 Market Pricing | |

| EXCLUSIVE MULTIFAMILY OFFERING a Berkshire Hathaway and Jefferies Financial Group company


For Real-Time Property Information visit:


CHARLEY HENNEGHAN

Associate Director

248.341.3303

[email protected]

KEVIN P. DILLON

Senior Managing Director

248.341.3309

[email protected]

CHRISTOPHER MONSOUR

Associate Director

248.341.3308

[email protected]

CARLY DIETZ

Director

248.341.3327

[email protected]

COREY KRUG

Director

248.341.3338

[email protected]

MICHIGAN OFFICE

28411 Northwestern Highway, Suite 300

Southfield, MI 48034

248.646.7701 | Fax: 248.646.0320


Pro Forma 12

Tax Analysis 15

Comparable Sale Properties 16

Comparable Rental Properties 21

Economic and Demographic Overview 25

Property Description 5

Aerials / Obliques 6

Location Map 8

Location Description 9

Site Plan 10

Property Photos 11

TABLE OF CONTENTS


Vanderbilt Town Homes is a 152-unit, garden-style townhome community located in the peaceful suburban city of Mt. Morris,

Michigan, approximately seven miles north of Downtown Flint. The property has easy access to Interstate 475, making it ideal for

commuters. Built in 1970, the property contains 19 two-story buildings with brick and siding exteriors and pitched roofs with

composition shingles. Situated on 10.15 acres of land with a density of 15.76 units per acre, Vanderbilt Town Homes

encompasses a desirable unit mix comprised of 76 two-bedroom units measuring 854 square feet each, and 76 three-bedroom

units spanning 1,024 square feet each, with an average unit size of 939 square feet. The property is lushly landscape with lots of

manicured grass areas, mature trees, trimmed shrubs, and plants.

This pet-friendly community offers amenities which include:

Playground

Extra storage

Plenty of convenient parking

On-site management

Emergency maintenance

Vanderbilt Town Homes feature spacious floor plans with unit amenities which typify those sought out by today's renters, including:

Kitchen with stove, refrigerator, dishwasher, double sink, disposal, and plenty of cabinet and counter space

Full-size bathroom with tub and shower,

Ceiling fans, carpeting, window coverings, and large closets

Private entrance, door side mailbox, and full-size basement

Washer / dryer connections, air conditioning / heating, cable TV ready, and high-speed Internet access

PROPERTY DESCRIPTION

Units: 152

Year Built: 1970

Metering: Indiv EG | WST Included

Parking: 1.84

Total SF: 150,240

Average Unit SF: 939±

Site Acreage: 10.15±

Parcel Number(s): 14-14-400-002

Type of Buildings: Two-Story, Garden Style

Roofs: Pitched / Shingles

Exterior: Combination

PROPERTY SUMMARY

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POINTS OF INTEREST AERIAL

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6028 VANDERBILT DRIVE

MT. MORRIS, MI 48458

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VANDERBILT TOWN HOMES

NEIGHBORHOOD QUICK FACTS

MT. MORRIS, MIDEMAND DRIVER

Hurley Medical Center

FROM THE

PROPERTY5.7mi

JOBS

SUPPORTED2.8k

HOSPITAL

BEDS443

NEIGHBORHOOD SHOPPING

Planet Fitness | NCG Cinemas | Dunham’s Sports

FROM THE

PROPERTY8.7mi

SF SHOPPING

DESTINATION472k

TOTAL

STORES 69

Courtland Center

NEIGHBORHOOD CONVENIENCES

Within a four-mile radius of the property

JOBS

SUPPORTED

STUDENTS

ENROLLED

1.2k

7.8k

DEMAND DRIVER

University of Michigan - Flint

FROM THE

PROPERTY5.5mi

PRIMARY EDUCATION

Dailey ES | Dolan MS | Beecher HS

STUDENTS

SERVED977SCHOOLS

AND CENTERS4JOBS

SUPPORTED 200

DEMAND DRIVER

General Motors Flint Assembly Plant

FROM THE

PROPERTY10.5mi

JOBS

SUPPORTED3.2k

PLANNED

INVESTMENT$45m

$93.1kCity Median Housing Unit Value

$22.7kCity Median Household Income

8.3%City Unemployment Rate (April 2018)

3.0kCity Population

40%City Renter Occupied Housing Units

BeecherCommunity

SchoolDistrict

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NEIGHBORHOOD DESCRIPTION

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Units Type Unit SF Total SF Market Rent

Monthly

Mkt Rent

Annual

Mkt Rent Rent/SF76 2 Bed / 1 Bath 845 64,220 $600 $45,600 $547,200 $0.7176 3 Bed / 1 Bath 1,024 77,824 $650 $49,400 $592,800 $0.63

152 935 142,044 $625 $95,000 $1,140,000 $0.67

Income

Berkadia

Stabilized

ProForma

Berkadia ProForma

Renovated & Stablized 2016 Annualized 2017 Annualized

Scheduled Market Rent $1,140,000 $1,140,000 $0 $0 Less: Loss-to-Lease 1.00% ($11,400) ($22,800) $0 $0 Less: Vacancy 5.00% ($57,000) ($79,800) $0 $0 Less: Concessions 3.00% ($34,200) ($34,200) $0 $0 Less: Non-Rev/Bad Debt/Adjust 4.00% ($45,600) ($34,200) $0 $0Net Rental Income $991,800 $969,000 $0 $0

Plus: Fee Income $22,500 $22,500 $0 $0 Plus: Other Income $15,200 $15,200 $0 $0Total Operating Income (EGI) $1,029,500 $1,006,700 $0 $0

Expenses Per Unit 2015 Annualized 2016 Annualized 2017 Annualized

Administrative $150 $22,800 $22,800 $0 $0Advertising & Promotion $50 $7,600 $7,600 $0 $0Payroll $1,000 $152,000 $152,000 $0 $0Repairs & Maintenance/Turnover $650 $98,800 $98,800 $0 $0Management Fee 6.00% $406 $61,770 $61,770 $0 $0Utilities $939 $142,731 $142,731 $0 $0Contracted Services $250 $38,000 $38,000 $0 $0Real Estate Taxes $308 $46,824 $46,824 $0 $0Insurance $290 $44,080 $44,080 $0 $0Replacement Reserve $300 $45,600 $45,600 $0 $0

Total Expenses $660,205 $660,205 $0 $0

Per Unit: $4,343 $4,343 $0 $0Per SF: $4.65 $4.65 $0.00 $0.00

Net Operating Income $369,295 $346,495 $0 $0

Less: Debt Service ($250,759) ($250,759) ($250,759) ($250,759)Projected Net Cash Flow $118,536 $95,736 ($250,759) ($250,759)Total Economic Loss 13.0% 15.0% #DIV/0! #DIV/0!Cash-on-Cash Return (Based on Stabilizd Value) 8.72% 7.04% -18.44% -18.44%Debt Service Coverage 1.47 1.38 0.00 0.00

Cap Rate Analysis Price $/Unit $/SF Cap Rate Cap Rate Cap Rate Cap RateStabilized Value $5,280,000 $34,737 $37.17 7.00% 6.56% 0.00% 0.00%

Operations 10-Yr Cash IRR 10-Yr Lev IRR GRM Yr-3 Cap

Stabilized Value 12.05% 23.48% 4.63 8.21%

Estimated Cost to

Renovate Unit Type # of Units

Interior

Per Unit Total Cost

Renovated Units 23 $0 $0Renovated Units - Permits Needed 16 $1,500 $24,000

Unrenovated Units 113 $10,000 $1,130,000152 $1,154,000

All FinancingTotal Loan

Amount

Down

Payment LTV

Monthly

Payment

Debt

Constant$3,960,000 $1,359,600 75% ($20,897) 6.3%

New First Mortgage (to be originated upon stabilization)LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs) Refi in Year (x)

75% $3,960,000 4.85% 30 ($20,897) 1.00% 0 0.0

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be

considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia.

CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors

and omissions. COPYRIGHT 2018. All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

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UNIT MIX AND PRO FORMA

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INCOME ASSUMPTIONS

▪ Scheduled Market Rent: The Market rents used in the Pro

Forma analysis for Vanderbilt Town Homes are based on a stabilized asset using current rent comps. Scheduled Market Rents total $1,140,000 annually or $.067 per square foot.

▪ Loss to Lease: The Loss to Lease represents the difference

between the Lease and market rents. The current Loss to Lease is projected at 1.0% for the duration of the 10-year analysis.

▪ Vacancy / Occupancy: According to Yardi Analytics; 2018 Q2

Occupancy for the Clio Multifamily Subarket is 98.9%, and 93% for the Northeast Flint Submarket. Based on recent trends and economic forecasts the occupancy should remain at or above 95% for the foreseeable future.

▪ Concessions: There are minimal Concessions currently being offered in the market, accordingly the property is underwritten with a 3.0% Concession factor.

▪ Non-Rev Units / Bad Debt / Adjustments: Is underwritten at

4.0% of the Scheduled Market Rent, where it remains through the 10-Year Cash Flow Projection.

▪ Year-One Rent Growth: Year-One Rent Growth is factored at 4.0% of the Sheduled Market Rent.

▪ Fee Income: The Fee Income category typically includes Late

Fee Income, Application Fee, Monthly Pet Fee, Non-Refundable Pet Fee, etc.. The Fee Income was underwritten at $22,500 annually or $148 per unit.

▪ Other Income: The Other Income category typically includes

Laundry, Parking Income, Other Misc Income, etc. Other income was underwritten at $15,200 annually or $100 per unit.

▪ Total Income: Total Operating Income Y1 is projected at

$1,029,500.

EXPENSE ASSUMPTIONS

▪ Administrative: Administrative Expense is projected to be

$22,800 or $150 per unit. This reflects an assumption based on a reasonable market cost comparison. Administrative expenses typically include Accounting, Auto Expense, Bank Charges, Internet, Legal, Legal-Professional Fees, Licenses & Permits, Office Expense, Prop. Assessments/Inspections, Telephone, Admin Expense, Office Supplies, Credit Checks, Postage, Legal & Collection, Telephone, Computer Programs, Employee Mileage, Office Expense, Cable and Internet, Site Manager Fee.

▪ Advertising & Promotion: Advertising & Promotion Expense is

projected to be $7,600 or $50 per unit. This reflects an assumption based on a reasonable market cost comparison.

▪ Payroll: Payroll Expense is projected to be $152,000or

$1,000 per unit. This reflects an assumption based on a reasonable market cost comparison. Payroll expenses typically include Bonuses, Labor - Salaries & Wages, Resident Mgr Fee, Outside Labor, Maintenance Payroll , Custodial Payroll , Grounds Payroll, Payroll Taxes, Workmans Comp.

▪ Repairs & Maintenance / Turnover: Repairs & Maintenance /

Turnover Expense is projected to be $98,800 or $650 per unit. This reflects an assumption based on a reasonable market cost comparison. Repairs & Maintenance Expenses typ ica l ly inc ludes Appliance Expense, Carpet/Vinyl Flooring, Decorating, Decorating Supplies, Plumbing and Heating, Supplies, Maintenance Charges, Custodial Charges, Heating & Cooling, Plumbing, Electrical, Supplies, Security, Other Services, Cleaning,Carpet Cleaning,Unit Cleaning, Janitorial Supplies, Redecorating – Painting, Redecorating - Window/Screen Repair, Redecorating Charges.

▪ Management Fee: Is factored at 6.0% of the Total Stabilized

Gross Effective Revenue.

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NOTES TO PRO FORMA

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▪ Utilities: Utility Expense is projected to be $142,731 or $939 per unit. This represents an increase calculated by factoring historic utility expenses prorated to reflect 95% stabilized occupancy. This line item typically includes Electricity, Gas, Water, Sewer, & Garbage Removal.

▪ Contracted Services: Contracted Service Expense is projected

to be $38,000 or $250 per unit. This reflects an assumption based on a reasonable market cost comparison. This line item typically includes Lawn & Snow Services, Grounds Services, Mowing, Pest Control.

▪ Real Estate Taxes: Vanderbilt Town Homes taxes were adjusted

to reflect the 2018 state equalized value. A detailed Property Tax Analysis is included in the following pages.

▪ Insurance: Insurance Expense is projected to be $44,080 or

$290 per unit. This reflects an assumption based on a reasonable market cost comparison.

▪ Replacement Reserves: A Replacement Reserve of $300 per

unit is factored into the Pro Forma.

▪ Net Operating Income (NOI): Projected FY1 Net Operating Income after replacement reserves is $369,295.

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NOTES TO PRO FORMA

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Vanderbilt Town Homes

6028 Vanderbilt Dr.

Mount Morris, MI 48458

2014 2015 2016 2017 2018

Parcel # 14-14-400-002

SEV $911,400 $959,000 $487,500 $598,800 $698,900

Taxable Value $911,400 $925,982 $487,500 $491,887 $698,900

TOTAL SEV $911,400 $959,000 $487,500 $598,800 $698,900

TOTAL TAXABLE VALUE $911,400 $925,982 $487,500 $491,887 $698,900

Millage Rates

Summer 11.5072 11.5072 11.5072 11.5072 11.4961

Winter 54.8772 55.3022 55.5003 55.5006 55.5009

TOTAL 66.3844 66.8094 67.0075 67.0078 66.9970

Total Taxes based on SEV $60,503 $64,070 $32,666 $40,124 $46,824

Total Taxes based on Taxable Value $60,503 $61,864 $32,666 $32,960 $46,824

Total $0 $2,206 $0 $7,164 $0

Property Tax Analysis

Property taxes were set based on Proposal A which passed in 1995. Taxes are now

paid based on the taxable value of the property multiplied by the millage

rate/$1000. The SEV or Assessed value indicate 50% of the fair market value of the

property. Taxes can only be increased based on the following formulas, 1) Annual

increase of CPI or 5% whichever is less, 2) The owners receive permits for

construction that increase the value of the property or 3) The property transfers or

sells, then the taxable value becomes uncapped and will be increased to the new

SEV or Assessed Value established in the year following the sale. In addition, the new

Property Taxes will be subject to a post sale adjustment. The Taxing Authority must

increase all multifamily properties in the municipality equally.

TAX ANALYSIS


COMPARABLE SALE PROPERTIES SUMMARY

PROPERTY UNITS BUILT SALE DATE PRICE PRICE / UNIT PRICE / SF AVG. SF UNIT MIXVanderbilt Town Homes6028 Vanderbilt DriveMt. Morris, MI 48458

152 1970 939 50% - 2 bed / 50% - 3 bed

Fountain Pointe6033 Fountain PointeGrand Blanc, MI 48439

468 1975 10/17 $22,175,000 $47,382 $50.70 935 1% - Studio / 27% - 1 bed 68% - 2 bed / 4% - 3 bed

Fox Hill Glens 2168 Fox Hill Drive Grand Blanc , MI 48439

322 1985 10/17 $20,121,750 $62,490 $59.37 1,053 4% - 1 bed / 93% - 2 bed 3% - 3 bed

Stonehenge Gates1171 RamsgateFlint, MI 48532

180 1978 10/17 $7,850,000 $43,611 $48.46 900 3% - Studio / 30% - 1 bed 67% - 2 bed

Rising Estates431 Avon CourtDavison, MI 48423

110 1965 02/17 $3,100,000 $28,182 $30.91 912 19% - 1 bed / 81% - 2 bed

Lux Apartments3033 Kettering HeightsFlint, MI 48507

46 1969 02/17 $1,671,750 $36,342 $49.85 729 100% - 1 bed

Totals / Averages* $34,250 $38.35 877

*does not include subject

Fountain Pointe Fox Hill Glens Stonehenge Gates Rising Estates Lux Apartments

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COMPARABLE SALE PROPERTIES SUMMARY

PROPERTY UNITS BUILT SALE DATE PRICE PRICE / UNIT PRICE / SF AVG. SF UNIT MIXVanderbilt Town Homes6028 Vanderbilt DriveMt. Morris, MI 48458

152 1970 939 50% - 2 bed / 50% - 3 bed

Flushing Valley300 West HenryFlushing, MI 48433

121 1974 12/16 $6,150,000 $50,826 $63.60 799 50% - 1 bed / 50% - 2 bed

The Villas7099 Granada DriveFlint Township, MI 48532

101 1972 12/16 $5,150,000 $50,990 $53.20 958 15% - 1 bed / 67% - 2 bed 18% - 3 bed

Lapeer Gardens 2324 Lapeer RoadFlint, MI 48503

176 1969 06/17 $1,025,000 $5,824 $6.41 909 1% - 1 bed / 99% - 2 bed

Country Club Manor1902 Woodslea DriveFlint, MI 48507

156 1968 11/16 $1,925,000 $12,340 $14.94 826 17% - 1 bed / 83% - 2 bed

Park West3901 Hammerberg RoadFlint, MI 48507

144 1966 09/16 $650,000 $4,514 $6.03 749 9% - 1 bed / 89% - 2 bed 1% - 3 bed / 1% - 4 Bed

Totals / Averages* $34,250 $38.35 877


Flushing Valley The Villas Lapeer Gardens Country Club Manor Park West

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Subject: Vanderbilt Town Homes



Park West

3901 Hammerberg Road

Flint, MI 48507

10.

Country Club Manor

1902 Woodslea Drive

Flint, MI 48507

9.

Lapeer Gardens

2324 Lapeer Road

Flint, MI 48503

8.

The Villas

7099 Granada Drive

Flint Township, MI 48532

7.

Flushing Valley

300 West Henry

Flushing, MI 48433

6.

Lux Apartments

3033 Kettering Heights

Flint, MI 48507

5.

Rising Estates

431 Avon Court

Davison, MI 48423

4.

Stonehenge Gates

1171 Ramsgate

Flint, MI 48532

3.

Fox Hill Glens

2168 Fox Hill Drive

Grand Blanc , MI 48439

2.

Fountain Pointe

6033 Fountain Pointe

Grand Blanc, MI 48439

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COMPARABLE SALE PROPERTIES MAP

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COMPARABLE SALE PROPERTIES

939Avg SF:

Market PricingPrice:

1970Built:

152Units:




– Subject

10/17Closed:

935Avg SF:

$50.70Price / SF:

$47,382Price / Unit:

$22,175,000Sold For:

1975Built:

468Units:

Fountain Pointe

6033 Fountain Pointe

Grand Blanc, MI 48439

10/17Closed:

1,053Avg SF:

$59.37Price / SF:


$20,121,750Sold For:

1985Built:

322Units:

Fox Hill Glens

2168 Fox Hill Drive

Grand Blanc , MI 48439

10/17Closed:

900Avg SF:

$48.46Price / SF:


$7,850,000Sold For:

1978Built:

180Units:

Stonehenge Gates

1171 Ramsgate

Flint, MI 48532

02/17Closed:

912Avg SF:

$30.91Price / SF:


$3,100,000Sold For:

1965Built:

110Units:

Rising Estates

431 Avon Court

Davison, MI 48423

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COMPARABLE SALE PROPERTIES

02/17Closed:

729Avg SF:

$49.85Price / SF:


$1,671,750Sold For:

1969Built:

46Units:

Lux Apartments

3033 Kettering Heights

Flint, MI 48507

12/16Closed:

799Avg SF:

$63.60Price / SF:


$6,150,000Sold For:

1974Built:

121Units:

Flushing Valley

300 West Henry

Flushing, MI 48433

12/16Closed:

958Avg SF:

$53.20Price / SF:


$5,150,000Sold For:

1972Built:

101Units:

The Villas

7099 Granada Drive

Flint Township, MI 48532

06/17Closed:

909Avg SF:

$6.41Price / SF:

$5,824Price / Unit:

$1,025,000Sold For:

1969Built:

176Units:

Lapeer Gardens

2324 Lapeer Road

Flint, MI 48503

11/16Closed:

826Avg SF:

$14.94Price / SF:


$1,925,000Sold For:

1968Built:

156Units:

Country Club Manor

1902 Woodslea Drive

Flint, MI 48507

09/16Closed:

749Avg SF:

$6.03Price / SF:

$4,514Price / Unit:

$650,000Sold For:

1966Built:

144Units:

Park West

3901 Hammerberg Road

Flint, MI 48507

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COMPARABLE RENTAL PROPERTIES SUMMARY

PROPERTY CITY

DISTANCE (MI)FROM SUBJECT UNITS BUILT OCCUPANCY SF ASKING RENT RENT / SF

Vanderbilt Town Homes Mt. Morris 152 1970 939 $625 $0.67

Morris Square Mt. Morris 2.47 96 1988 92.7% 946 $684 $0.72

Sugartree Mt. Morris 3.28 174 1974 85% 611 $546 $0.89

Mill Creek Clio 5.68 174 1975 100% 663 $522 $0.79

Pine Creek Clio 5.78 233 1975 98.7% 646 $513 $0.79

Pine Run Place Clio 5.80 88 1985 98.9% 914 $638 $0.70

Totals / Averages* 4.60 153 95% 710 $558 $0.79


Morris Square Sugartree Mill Creek Pine Creek Pine Run Place

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Subject: Vanderbilt Town Homes



Pine Run Place

2104 Plaza Drive West

Clio, MI 48420

5.

Pine Creek

11650 Plaza Drive

Clio, MI 48420

4.

Mill Creek

303 Smith Street

Clio, MI 48420

3.

Sugartree

9070 North Saginaw Road


2.

Morris Square

750 Jefferson Street


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COMPARABLE RENTAL PROPERTIES

$0.67Avg Rent / SF:

$625Avg Rent:

939Avg SF:

1970Built:

152Units:




– Subject

92.7%Occupancy:

$0.72Avg Rent / SF:

$684Avg Rent:

946Avg SF:

1988Built:

96Units:

Morris Square

750 Jefferson Street


85%Occupancy:

$0.89Avg Rent / SF:

$546Avg Rent:

611Avg SF:

1974Built:

174Units:

Sugartree

9070 North Saginaw Road


100%Occupancy:

$0.79Avg Rent / SF:

$522Avg Rent:

663Avg SF:

1975Built:

174Units:

Mill Creek

303 Smith Street

Clio, MI 48420

98.7%Occupancy:

$0.79Avg Rent / SF:

$513Avg Rent:

646Avg SF:

1975Built:

233Units:

Pine Creek

11650 Plaza Drive

Clio, MI 48420

98.9%Occupancy:

$0.70Avg Rent / SF:

$638Avg Rent:

914Avg SF:

1985Built:

88Units:

Pine Run Place

2104 Plaza Drive West

Clio, MI 48420

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COMPARABLE RENTAL ANALYSIS

TW

O B

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$800

$700

$600

$500

$400

$300

$200

$100

$0

Pine

Cre

ek |

$53

8

Mill

Cre

ek |

$58

6

Suga

rtre

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$590

Vand

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lt To

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Hom

es |

$60

0

Pine

Run

Pla

ce |

$61

8

Mor

ris

Squa

re |

$68

9

TH

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ED

$800

$700

$600

$500

$400

$300

$200

$100

$0

Vand

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lt To

wn

Hom

es |

$65

0

Pine

Run

Pla

ce |

$70

0

Mor

ris

Squa

re |

$76

3

Average$593

Average$717

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ECONOMIC AND DEMOGRAPHIC OVERVIEWBERKADIA

GENESEE COUNTY | MICHIGAN

INTRODUCTIONEncompassing approximately 650 square miles, Genesee County is

situated in the southeast portion of Michigan. Comprising the Flint,

MI Metropolitan Statistical Area (MSA), Genesee County is located

approximately 60 miles northeast of Lansing, 75 miles northwest

of Detroit, and 120 miles east of Grand Rapids. With a population

approaching 409,000 residents, Genesee County is the fourth-most-

populated metropolitan area in the state. The area is a dynamic region

that is home to a General Motors assembly plant and within proximity of

numerous institutions of higher learning and two international crossings.

According to the U.S. Census Bureau, Genesee County boasts

approximately 7,720 business establishments. The area’s economy is led

by services-related jobs, which account for more than half of the region’s

workforce. Other key employment segments include wholesale and

retail trade, manufacturing, inance, insurance, real estate, construction,

and transportation/warehousing. Approximately 59% of the county’s

residents work in white-collar positions.

$14.1b GMP

Investment Opportunity

Forward Thinking

Recreational Activities

This regional economy’s gross metropolitan product (GMP) was estimated at $14.1 billion in 2017, increasing 7.6% from 2014- IHS Global Insight

In 2016, over $503 million of total government investment and contracts were generated by the Flint and Genesee County Chamber of Commerce - Flint and Genesee County Chamber of Commerce

Genesee County municipalities Fenton, Clio, and Flushing receivedawards for “Greatest Innovation in Infrastructure and Technologyin 2016”- Genesee County Metropolitan Planning Commission, March 2017

Genesee County is home to 11,000 acres of woods, beaches, trails, and waters

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ECONOMIC AND DEMOGRAPHIC OVERVIEW

25




DEMOGRAPHICS

4th 40.1LARGEST METRO

IN MICHIGAN

MEDIAN AGE

OF RESIDENTS

CITY OF FLINT HAS A 76 COST OF LIVING INDEX

COMPARED TO 100 NATIONALLY

473.0k 82.5k 103.6k 91.0k $49.6k

According to Genesee

County Metro Alliance

Transportation Plan,

the county’s population

may grow to more

than 473,000 residents by 2035

30% of residents age

25 or older have earned

an associate degree or

higher

Approximately 59% of

Genesee County workers

are employed in white-

collar jobs

22% of the county’s

population is in the

key renter age group

between 18 and 35

The county’s median

household income

is projected to reach

$49,649 by 2023, up

10.7% from 2018

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METRO INDUSTRY BREAKDOWN

0 8,000 16,000 24,000 32,000

Information

Other Services

Construction

Financial Activities

Manufacturing

Leisure and Hospitality

Professional and Business Services

Government

Education and Health Services

Trade, Transportation, and Utilities

Industry Breakdown May-17 May-18

JOBGROWTH 700 jobscreated in the Professional and

Business Services sector

(Y-o-Y May '18)

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METRO EMPLOYMENT TRENDS

(12,000)

(8,000)

(4,000)

0

4,000

0%

4%

8%

12%

16%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Employment Trends

Unemployment Rate Jobs Added / Lost*Projected

MAY2018

MAY2018

4.7%

400 jobs

the metro's monthly

unemployment rate was

down 30 bps annually

were created metrowide, a

0.3% Y-o-Y increase

GENESEE COUNTY, MI

LARGEST EMPLOYERS

General Motors Corp. 7,500

Genesys Health Care System 3,500

McLaren Health Care Corporation 2,790

Hurley Medical Center 2,780

Mott Community College 1,430

Flint Community Schools 1,300

University of Michigan - Flint 1,200

Diplomat Pharmacy 1,120

Genesee County 950

State of Michigan 950

Sources: City of Flint 2017 CAFR; Genesee County 2017 CAFR; University of Michigan - Flint

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MANUFACTURING

HEALTH CARE

GENERAL MOTORS CORP.

HURLEY MEDICAL CENTER

General Motors Corp. is the largest employer in the region, supporting approximately 7,500

jobs. The company's manufacturing operations have a signiicant impact on the state, and over

20 industries supply billions of dollars in goods and services to GM's assembly and components

plants. Since 2009 GM has invested $2.8 billion in their Flint complex. The plant recently

completed a $600 million addition to their paint shop. General Motors is in the process of

investing $900 million to expand their body shop, signiicantly increasing production.

The region is home to multiple major medical centers that together support over 5,500 direct

jobs. Hurley Medical Center and McLaren Flint hospitals also conduct medical education and

research at their facilities. The health care industry has an economic impact of more than $2.2

billion in the region. Approximately 17 of every 100 jobs in the state are health care related. In

the metro area, 24,200 workers are employed in the health care and social assistance subsector,

accounting for 17% of all local jobs.

$2.8 billionInvested Since 2009

7,500Jobs Supported

$900 millionExpansion Underway

5,500Direct Jobs Supported

$2.2 billionEconomic Impact

$78 millionNew Cancer Facility

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EDUCATION

TOURISM

UNIVERSITY OF MICHIGAN - FLINT CAMPUS

DOWNTOWN FLINT

Genesee County is home to Baker College-Flint, University of Michigan-Flint, Mott Community

College, and Kettering University. A total of seven post-secondary institutions serve over

24,000 students and support more than 3,000 jobs in the region. In September 2016, UM-Flint

oicials approved $500 million in construction and renovation projects at its three campuses, which

include adding 65,000 square feet to Flint’s science building.

The latest tourism data indicate visitors spend $129 million on lodging annually in Genesee

County. Genesee County ofers restaurants, museums, sporting events, entertainment

destinations, 21 golf courses, and 11,000 acres of woods, waters, trails, and beaches. The region

welcomes over one million visitors every year. The area hosts many annual events attracting

thousands of visitors including the Flint Jazz Festival, Buckham Alley Fest, Back to the Bricks,

Bikes on the Bricks, Crim Festival of Races, and the Flint Art Fair.

24,000+Students Served

Countywide

3,000+Jobs Supported

$129 million+Annual Tourist Lodging

Expenditures

11,000 acresof Woods, Waters,

Trails, and Beaches

1.0 million+Annual Visitors

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CONSTRUCTION AND DEVELOPMENT

DOWNTOWN FLINT GENERAL MOTORS ASSEMBLY PLANT

$100 millionInvested Since 2006

400+ jobsRetained with Upcoming

Diesel Engine Production

4,000New Residents by 2022

$900 millionBody Shop Expansion

Currently about 1,300 people live in Downtown Flint, with 4,000 expected

within the next four years. Since 2006, approximately $100 million has been

poured into the redevelopment of Downtown Flint. Recent projects include:

n The Capitol Theatre reopened December 2017 following a $32 million

renovation

n The Health & Wellness District, a $32 million development

n The Dryden Building, home of iSource Worldwide’s headquarters, where 100

jobs were added following a $2.7 million capital investment

n Ferris Wheel Building, where a new innovation center and co-working space

opened in Spring 2017

General Motors is in the process of a $900 million expansion at its Flint assembly

plant, adding an 800,000-square-foot body shop north of GM Flint Metal

Center. The addition is expected to enable 50 more vehicles to be assembled,

in addition to the current 32 vehicles built every hour at Flint Assembly. The

expansion is expected to be complete in early 2019. Additionally, GM announced

in January 2018 that starting in late 2018 or early 2019, production of the 3.0L

turbo diesel engine will begin in the Flint engine plant, which will retain more

than 400 local jobs. In April 2018, “Project Fusion,” a proposed General Motors

plant, was revealed in the city of Burton. Initial information indicates the $45

million project may complete in 2019 and result in up to 800 new hires.

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CONSTRUCTION AND DEVELOPMENT

GENESYS HEALTH PARK FLINT RIVERFRONT

$500 millionCapital Investment

$36.8 millionInvestment

4,000New Jobs Generated

60-acreRecreation Area

The Genesys Health Park master plan calls for major developments that will

add up to nearly $500 million in Grand Blanc, Michigan through 2026. Some

of the proposed projects include an extension of Dort Highway, a veterans

hospital, Genesys Athletic Club, and a mixed-use center featuring retail stores,

restaurants, and hotels. In addition, the proposed Life Sciences Research and

Development Institute is expected to generate 4,000 high-paying jobs.

Following removal of two dams, Genesee County Parks and the Michigan

Department of Natural Resources will begin work on a $36.8 million

redevelopment of the Downtown Flint riverfront area. The project will transform

the area into greenspace with a walking bridge over the Swartz Creek and Flint

River, and the river banks will be lined with native rocks and plants. The 60-acre

project will provide county residents with increased recreation opportunities

along the Flint River upon completion in 2019.

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RENT / OCCUPANCY

EFFECTIVERENT

OCCUPANCYRATE

$733 93.1%in 1Q18, up 3.4% annually

through March 2018, in line with

the market’s ive-year average

The average unit in Genesee County rents for less than half the national

average. This is a relection of the county’s low median income for renting

households. At the end of the irst quarter of 2018, average efective rent in

the Genesee County apartment market was $733 per month, up 3.4% from

one year prior. Efective monthly rent is projected to increase to $757 by

year-end 2018, representing an annual increase of 4.0%. Since 2012, average

efective rent in this market has appreciated 16.7%.

The low median income and lack of white-collar employment provide little

incentive for developers to bring new product to Genesee County, especially

since rents are already so structurally low. However, the absence of new

construction has served as a silver lining for landlords, because occupancy

has remained healthy compared to the historical average. In March 2018, the

average occupancy rate in the apartment market was 93.1%, in line with the

market’s ive-year average. The average apartment occupancy rate is forecast

to rise 40 basis points through 2018, reaching 93.5% by year-end.$628

$652

$652

$671

$709

$728

$757

$400

$500

$600

$700

$800

88%

90%

92%

94%

96%

2012 2013 2014 2015 2016 2017 2018*

Occupancy & Ask Rent

Rent Occupancy*PROJECTED

GENESEE COUNTY APARTMENT MARKET

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EDUCATION

HIGHEREDUCATION

DEGREEPROGRAMS24,000+ 100+

students countywide ofered at UM-Flint

The University of Michigan-Flint (UM-Flint) is greater Flint’s primary institution of

higher learning, ofering more than 100 academic programs. UM-Flint serves 7,836

students with a capacity to grow and serve 10,000 students.

n Mott Community College is situated on 34 acres in central Flint. The college ofers

more than 100 associate degrees and certiicates to its 7,680 students.

n Baker College ofers over 100 career programs to more than 1,300 students at its

Flint campus.

n Kettering University is a highly regarded university ofering degree programs in

science, technology, engineering, and mathematics (STEM) ields, ranking among

the top midwestern universities in U.S. News and World Report’s "Best Colleges"

rankings. The university serves over 2,250 students. Of all universities in the U.S.,

Kettering University has the fourth-highest number of alumni who hold patents.

Other institutions of higher learning with campuses in Flint include Davenport

University, Northwood University, Spring Arbor University, and Rochester College.

Twenty-one school districts in the county serve a total of approximately 58,200

students. The districts include Grand Blanc Community Schools and the Flint

School District which are some of the largest school districts in the county.

UNIVERSITY OF MICHIGAN - FLINT

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TRANSPORTATION

FLINT MTABUS SERVICE

FNTAIRPORT5.5m 393.3k

passengers served annually passengers served in 2017

Genesee County’s prime location, just 60 minutes from the Canadian border,

has made the area popular with both residents and businesses. The county

is served by Interstates 69, 75, and 475, in addition to U.S. Route 23.

Amtrak provides intercity passenger-rail service to Genesee County

residents on the Blue Water line from Chicago to Port Huron at the border

of Canada. The Flint Mass Transportation Authority (MTA) provides bus

service, as does Greyhound Lines.

Air transportation is facilitated by Bishop International Airport (FNT). The

airport is used by numerous airlines including American Airlines, Allegiant

Air, Southwest Airlines, Delta Air Lines, and United Airlines, which provide

service to Chicago, Las Vegas, Minneapolis, Baltimore, Atlanta, and Orlando.

BISHOP INTERNATIONAL AIRPORT

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BY THE NUMBERS

TOTAL POPULATION

2010 425,790

2018* 408,892

2023* 401,026

Growth Rate (2018 - 2023) (1.9%)

TOTAL HOUSEHOLDS

2010 169,202

2018* 162,610

2023* 159,418

Growth Rate (2018 - 2023) (2.0%)

MEDIAN INCOME

2010 $43,346

2018* $44,847

2023* $49,649

Growth Rate (2018 - 2023) 10.7%

MEDIAN AGE

2010 37.9

2018* 40.1

2023* 40.6

MEDIAN HOME PRICE

May - 2017 $144,454

May - 2018 $204,817

Growth Rate Y-o-Y 41.8%

RENT VS. OWN

Average Mortgage Payment** $1,227

Efective Rent $733

Diference $494

*Projected**30-yr ixed; 20% down; 4.65% interest rate; 1.75% property taxes; $1,000 annual homeowner’s insurance

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Fortune/Money.CNN.com; Forbes; Moody’s; Wikipedia; Axiometrics; Mlive.com; Flint & Genesee Chamber of Commerce; Flint / Genesee County Growth Alliance; University of Michigan-Flint; The Flint Journal; Bishop International Airport; Crain’s Detroit Business; Michigan REALTORS; AreaVibes.com; ABC12.com; MLive Media Group; businessays.net; City of Flint; University of Michigan-Flint; Mass Transportation Authority; Michigan Health and Hospital Association; College Navigator; Genesee County; YARDI Matrix; Zillow.

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36


COREY KRUG

Director

248.341.3338

[email protected]

CARLY DIETZ

Director

248.341.3327

[email protected]

CHRISTOPHER MONSOUR

Associate Director

248.341.3308

[email protected]

KEVIN P. DILLON

Senior Managing Director

248.341.3309

[email protected]

CHARLEY HENNEGHAN

Associate Director

248.341.3303

[email protected]

DISCLAIMER & CONFIDENTIALITY AGREEMENT

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is

not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors

LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in

the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for

a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have 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 any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these

issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate

Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or

representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or

estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth

investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend

that prospective purchasers 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.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the

health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or

concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole

and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have

executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia© exclusive listings, please visit our website at Berkadia.com

All information contained herein is from sources deemed to be reliable; however, it is not guaranteed. Printed in the USA. All rights reserved.

Copyright 2018 © by Berkadia Proprietary Holding LLC

Berkadia© is a trademark of Berkadia Proprietary Holding LLC

Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial

Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. #843890. Berkadia Commercial Mortgage LLC conducts business

under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116.

This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada.

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