Castle in Cloverdal- 904 Felder Ave , Montgomery, AL 36106

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THE CASTLE IN CLOVERDALE MONTGOMERY, AL OFFERING MEMORANDUM THE CASTLE IN CLOVERDALE MONTGOMERY, AL

4 PROPERTY OVERVIEW 8 LOCATION OVERVIEW

11 FINANCIAL OVERVIEW

LISTED BY

AUSTIN GRAHAM CONNOR KERNS DAVID HARRINGTON ASSOCIATE ASSOCIATE EVP & NATIONAL DIRECTOR

D: (404) 445-1091 D: (404) 445-1090 D: (310) 295-1170 M: (407) 463-9752 M: (419) 733-5906 M: (310) 497-5590 E: [email protected] E: [email protected] E: [email protected] License No. SL3421373 (FL) License No. SL3417384 (FL) License No. 01320460 (CA)

BROKER OF RECORD KYLE MATTHEWS License No. 110253 (AL)

PROPERTY OVERVIEW OPPORTUNITY

The Castle in Cloverdale Apartments is one of the most unique and desirable places for renters in this area of Montgomery. It is located in the Old Cloverdale District of Midtown Montgomery, AL and is walking distance to all of the local restaurants and retail in this upscale part of town. With Alabama State University also just blocks away, this is an ideal location with very little surrounding competing rental properties.

The units have all been completely renovated with new bathrooms, kitchens, and appliances making this a unique historical place to live for renters without compromising their desire for new, quality living space. These upgrades, paired with the massive layout of the units, allows an owner to command top of the line rents from day one with close to 10% upside to capture as leases turn over.

PROPERTY DESCRIPTION

»» 12 Unit Building Built in 1930

»» Fully Renovated

»» 14,028 SF

»» 0.36 AC Lot

»» Unit Mix: (9) 1 BR+1 Bath, (3) 2 BR+1 Bath

»» Washer / Dryer Connections

»» WalkScore: 71 – Very Walkable

5 PHYSICAL DESCRIPTION

NO. OF UNITS YEAR BUILT APN GROSS SF AVG SF PER UNIT LOT SIZE

12 1930 10-04-19-1-009- 14,028 760 0.36 005.000 PARCEL MAP

6 3/27/2019 Google Maps

REGIONAL MAP

3/27/2019 Google Maps

https://www.google.com/maps/@32.3756636,-86.3121002,13.01z 1/1

https://www.google.com/maps/@32.3609811,-86.2953099,16.01z 1/1 LOCATION OVERVIEW

8 MONTGOMERY, AL

Montgomery is the capital of the U.S. state of Alabama and is the county seat of Montgomery County. Named for Richard Montgomery, it is located on the Alabama River, in the Gulf Coastal Plain. As of the 2010 Census, Montgomery had a population of 205,764. It is the second-largest city in Alabama, after DEMOGRAPHICS Birmingham. POPULATION 1-MILE 3-MILE 5-MILE In addition to housing many Alabama government agencies, Montgomery has 2010 Census 9,426 68,412 139,037 a large military presence due to Maxwell Air Force Base; public universities 2019 Estimate 8,795 63,780 131,780 Alabama State University, Troy University, and Auburn University at Montgomery; 2024 Projection 8,621 62,547 130,114 private colleges/ universities Faulkner University and Huntingdon College; high- HOUSEHOLDS 1-MILE 3-MILE 5-MILE tech manufacturing, including Hyundai Motor Manufacturing Alabama; and 2010 Census 3,523 26,640 54,783 cultural attractions such as the Alabama Shakespeare Festival and Montgomery 2019 Estimate 3,314 25,030 52,351 Museum of Fine Arts. 2024 Projection 3,263 24,625 51,848 INCOME 1-MILE 3-MILE 5-MILE Montgomery has won several national awards including being voted Best 2019 Average $76,409 $56,175 $56,483 Historic City by USA Today, being named an All-America City in 2014 by the Household Income National Civic League, being named a “Top City For Job Growth” in 2014 by ziprecruiter.com, and being named the happiest city in Alabama. Montgomery has also been recognized nationally for its successful, and ongoing downtown revitalization and new urbanism projects with Montgomery having been one of the first cities in the nation to implement Smart Code Zoning.

9 ALABAMA STATE UNIVERSITY O.4 MILES FROM SUBJECT PROPERTY

10 ALABAMA STATE UNIVERSITY

Alabama State University is located in historic Montgomery, Ala., on a beautiful 172-acre campus featuring lush landscaping, historic landmarks and both modern and traditional facilities that pay homage to the University’s proud past and bright future.

The campus is located only a short walk from the state capital, the state government complex and downtown Montgomery, making the downtown business and entertainment district, art galleries, state archives, museums and historical sites readily accessible to students.

ASU has experienced tremendous growth during the past few years, with the addition of a number of new campus buildings to accommodate increased enrollment and exciting new academic programs. The most recent construction includes The New ASU Stadium, the University’s $62 million football stadium which opened in November 2012, and the John Garrick Hardy Student Services Center, our 81,000-square-foot facility that is designed to be a one-stop shop for recreation and for transacting important student business.

Other new facilities include two expansive new co-ed residence halls, as well as a renovation and 46,000-square-foot addition to the University’s Library and Media facility, the Levi Watkins Learning Center, new baseball and softball fields and a football complex, which houses coaches’ offices, a state-of-the-art training and weight room, a film room and much more.

11 FINANCIAL OVERVIEW

12 INVESTMENT SUMMARY

904 Felder Ave Montgomery, AL 36106 Number of Units: 12 Year Built: 1930 APN: 10-04-19-1-009-005.000 Gross Sq. Ft.: 14,028 Average S.F. Per Unit: 760 Lot Size (Acres): 0.36 Density: 33

Offering CURRENT PRO FORMA MARKET Price/Unit Price/Foot Price Cap Rate GRM Cap Rate GRM Cap Rate GRM

$802,000 $66,833 $57.17 7.43% 7.79 7.25% 7.79 8.23% 7.19

UNIT MIX

Current Market Total Unit Unit Mix Avg. Rent Current Market Market Avg. SqFt Monthly Monthly Units Mix % P.S.F Avg Rent Rent Rent P.S.F Rent Rent

9 1+1 75% 950 $0.72 $686 $6,175 $750 $0.79 $6,750

3 2+1 25% 1,330 $0.60 $800 $2,400 $850 $0.64 $2,550

Scheduled Monthly Rent: $8,575 $9,300

Scheduled Yearly Rent: $102,900 $111,600 ANNUALIZED OPERATING DATA

Current Pro Forma Market Scheduled Gross Income: $102,900 $102,900 Current Rent $111,600 8% Upside Less Vacancy Reserve: $5,145 5.0% $5,145 5.0% $5,580 5.0% Gross Operating Income: $97,755 $97,755 $106,020 Expenses: $38,185 37.1% $39,601 38.48% $40,014 35.85% * Net Operating Income: $59,570 $58,154 $66,006 Loan Payments: $38,792 $38,792 $38,792 Pre-Tax Cash Flow: $20,778 12.7% $19,362 11.81% $27,214 16.59% ** Plus Principal Reduction: $10,292 $10,292 $10,292 Total Return Before Taxes: $31,071 18.95% $29,654 18.08% $37,506 22.87% ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment Laundry & Other income are 2016 Actual

PRO FORMA ANNUAL OPERATING EXPENSES

Pro % of SGI Current Per Unit Per Unit Market Per Unit % of SGI Forma* Property Taxes 3.650% x Sale Price x 20% 3.94% $3,853 $321 $5,269 $439 $5,269 $439 4.7% Off-Site Management 5.0% x GOI 5.00% $4,888 $407 $4,888 $407 $5,301 $442 4.8% Insurance T-12 Actual 9.72% $9,500 $792 $9,500 $792 $9,500 $792 8.5% Repairs & Maintenance $400 x Units 4.91% $4,800 $400 $4,800 $400 $4,800 $400 4.3% Landscaping/Pest Control T-12 Actual 2.46% $2,400 $200 $2,400 $200 $2,400 $200 2.2% Utilities T-12 Actual 9.75% $9,528 $794 $9,528 $794 $9,528 $794 8.5% Trash T-12 Actual 2.06% $2,016 $168 $2,016 $168 $2,016 $168 1.8% General Administration $100 x Units 1.23% $1,200 $100 $1,200 $100 $1,200 $100 1.1% Total Expenses 39.06% $38,185 $3,182 $39,601 $3,300 $40,014 $3,335 35.9% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $13,353 $1,113 13.0% Total Expense without Taxes $34,332 $2,861 33.36%

14 RENT ROLL

# Unit Mix Rent SF Market Rent

1 100 2+1 $800 1,330 $850

2 101 1+1 $650 950 $750

3 102 2+1 $800 1,330 $850

4 103 1+1 $650 950 $750

5 104 2+1 $800 1,330 $850

6 105 1+1 $750 950 $750

7 106 1+1 $650 950 $750

8 107 1+1 $750 950 $750

9 108 1+1 $675 950 $750

10 109 1+1 $650 950 $750

11 110 1+1 $650 950 $750

12 111 1+1 $750 950 $750

TOTALS $8,575 12,540 $9,300 12 AVERAGES $715 1,045 $775

15 2

3 1

16 SALES COMPARABLES

Number Of Property Address Sale Price Year Built Bldg SF Unit Mix Price Per Unit Price Per SF Cap Rate Sale Date Units

(9) 1+1 904 Felder Ave $802,000 1930 14,028 12 $66,833.33 $57.17 7.25% Current Montgomery, AL 36016 (3) 2+1

2637 The Meadows $2,750,000 1999 27,840 32 (32) 1+1 $85,937.50 $98.78 - 07/10/2018 1 Montgomery, AL 36116

(64) 1+1 100 McQueen Smith Rd $11,600,000 1988 134,296 152 (64) 2+2 $76,315.79 $86.38 5.93% 07/29/2016 2 Montgomery, AL 36066 (24) 3+2

500 Festival Pl (120) 1+1 $11,400,000 1996 176,000 184 $61,956.52 $64.77 6.07% 11/4/15 3 Montgomery, AL 36117 (64) 2+2

AVERAGES $74,736.60 $83.31 4.06%

17 1

3 4

18 RENT COMPARABLES

Property Year Built Units Building Size (SF) Unit Mix Unit Size (SF) Montly Rent

904 Felder Ave 1930 12 14,028 1+1 950 $686 Montgomery, AL 36016

550 Clay St 1984 62 50,000 1+1 750 $675 1 Montgomery, AL 36104

555 Mcdonough St 1964 60 63,016 1+1 650 $645 2 Montgomery, AL 36104

2845 Zelda Rd 1984 160 161,759 1+1 667 $695 3 Montgomery, AL 36106

4132 Carmichael Rd 1975 288 309,944 1+1 727 $680 4 Montgomery, AL 36106

AVERAGES $676

19 CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs ofThe Castle In Cloverdale Apartments located in 904 Felder Ave | Montgomery, AL 36016 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the MS of affairs of the Property or constitute an indication that there has been no change in the MS of affairs of the Property since the date this Offering Memorandum.

20 THE CASTLE IN CLOVERDALE MONTGOMERY, AL OFFERING MEMORANDUM

LISTED BY

AUSTIN GRAHAM CONNOR KERNS DAVID HARRINGTON ASSOCIATE ASSOCIATE EVP & NATIONAL DIRECTOR

BROKER OF RECORD KYLE MATTHEWS License No. 110253 (AL)