LEICESTER LIVING 109 Leicester Court, Detroit, Michigan 48202 BEFORE AFTER OPPORTUNITY SUMMARY

• 109 Leicester, Detroit, MI. 48202 (6 units, 1000 sf each, Rent $1000 per unit)

• This will be a newly remodeled apartment complex, featuring 2-bedroom, 1-bathroom apartments - located in Detroit’s North End neighborhood, just south of the Historic East Boston Edison neighborhood. The home is perfect for a young couple with small children; or two to three young professionals looking for comfortable urban living.

• The spacious apartment is on the upper level and is over 1000 square feet. This unit will have beautiful refurbished hardwood floors along with a brand new bathroom and kitchen with dishwasher, instant water heaters and all LED lighting.

• The exterior will provide urban farming areas (6 raised garden beds), bike racks and rainwater capturing systems. Private gated off-street parking for at least 1 car per unit is included. Plenty of additional street parking is available. The house also comes with a state-of-the-art security system and on-demand security patrol.

• Only a few steps from Woodward Ave and walking distance to the QLINE Rail, it is also perfectly located between the entrances to I-75 to the east or the Lodge freeway to the west; a 10 minute drive to Downtown Detroit (20 minute bike ride); 5 minute drive to Midtown Detroit (10-minute bike ride); 15-20 minute drive to Royal Oak / Ferndale.Water and security are included in the rent.

• The tenant is responsible for gas and electric utility costs. The security deposit is equal to one month's rent. There is a $50 application fee. This is a pet-friendly building! The fee per dog is $50/month, however cats are allowed at no additional charge. Lawn maintenance and snow removal are included. A shared washer and dryer is available in the basement of the building along with plenty of storage.

• Complete renovation will cost $300k by Rebound Design Build starting July 2017. LEICESTER LIVING

LEICESTER LIVING LEICESTER LIVING LEICESTER LIVING LOCATION The North End, sometimes written Northend, is a neighborhood in central Detroit Michigan. It is located along the Woodward Corridor, an avenue stretching from Downtown to Pontiac that is often referred to as the city's main street. It is a mixed neighborhood with some very good housing, for example, on Arden Park Boulevard, but also large tracts of low income, and as of 2014, abandoned housing.

The North End's boundaries are generally defined as I-94 (Edsel Ford Freeway) to the south, Woodward Ave. to the west and I-75 (Chrysler Freeway) to the east. While its northern border is sometimes defined as Euclid Street, more generally it extends to the border of Highland Park between Webb/Woodland Streets.

The North End was originally part of Hamtramck Township, but was annexed by the City of Detroit in 1891. Along with the rest of Detroit, it experienced a cultural and economic boom in the 1920s and 1930s, due to the success of the automotive industry, and the district continued to experience growth. Many Motown musicians came from the North End, including Smokey Robinson, Diana Ross, the Four Tops and Aretha Franklin.

The neighborhood began to see an economic downturn in the 1950s. I-75 was built in 1959, dividing the North End from the city center and also destroying the African American neighborhoods of Paradise Valley and Black Bottom. Marygrove College professor Frank D. Rashid has noted that Detroit's vibrant entertain- ment district Paradise Valley had eventually stretched as far as the North End.

LEICESTER LIVING NORTH END DEVELOPMENT PLAN 1. 109 Leicester 6 unit residential luxury apartments 2. 130 Kenilworth, Detroit, MI. 48202 (4 units, Rent $900 each) 3. 9405 John R., 5 newly rehab commercial storefronts all occupied. 4. 9429 Brush 6 unit residential luxury apartments 50% complete 5. 506 Westminster, (4 units, Currently for rent $900 each) 6. 505 Westminster 6 Row Houses, construction scheduled for June 2017 7. Former grocery store being converted to banquet hall and community space. 8. North End Christian CDC Urban Farming 9. 4 Unit Rowhouse, $80k rehab invested in 2016, all rented at $900 each. 10. North End Career Center, by Vanguard CDC has redeveloped an aban- doned 7,00 square foot, adding 3,000 sf. 11. 15,000 sf. Commercial Building being converted to Artist Coalition Space 2018 12. 5 story residential apartments currently being converted to 45 market rate units 13. Community Non-Profit has rehabbed a 6000 s.f. building for perform- ing arts. 14. Vanguard’s Innovative Project grant from the Kresge Foundation to create a plan for the enhancement of Delores Bennett Park. beginning in 2017. 15. Vanguard CDC new residential cluster project adjacent Bennett Park. 16. Bradby Park Club House and park being renovated by Stafford House and DTE 17. Vanguard CDC new residential condos project behind their home office. 18. Herman Kiefer Hospital complex and neighborhood a $143 million in- vestment for a small hotel and indoor skate park. Ron Castellano’s plan for a walkable commercial campus 2018. 19. The former Tried Stone Missionary Baptist Church In February of 2015, the old church was sold to Central Detroit Christian CDC for $3,000. $2MM Rehab 20. 24 New Steel Container Residential Project, Rebound Design Building / FMG joint venture. 21. 4 New Retail below and 8 residential units above. Project by Strafford House 22. 3 New Retail below and 6 residential units above. Project by Strafford House 23. QLINE Home Stop, (light rail system) COMPS COMPS

LEICESTER LIVING 130 Kenilworth, Detroit, MI. 48202 (4 units, Rent $900 each) This is a newly remodeled 2-bedroom, 1-bathroom apartment located in Detroit’s North End neigh- borhood located just south of the Historic East Boston Edison neighborhood. The spacious apart- ment is on the upper level and is over 900 square feet. This unit features beautiful refurbished hardwood floors along with a brand new bathroom and kitchen with dishwasher. Complete Renovation $150k by Rebound Design Build July 2016

506 Westminster, Detroit, MI. 48202 (4 units, Currently for rent $900 each) This is a newly remodeled 3-bedroom, 1-bathroom apartment located in Detroit’s North End neigh- borhood located just south of the Historic East Boston Edison neighborhood. The spacious apart- ment is on the upper level and is over 900 square feet. This unit features beautiful refurbished hardwood floors along with a brand new bathroom and kitchen with dishwasher. Complete Renovation $170k by Rebound Design Build April 2017

50 Westminster, Detroit, MI. 48202 (6 units, Currently for rent $1,250 each) COMPS This is a newly remodeled 2-bedroom, 2-bathroom apartment located in Detroit’s North End neigh- borhood located just south of the Historic East Boston Edison neighborhood. The spacious apart- ment is on the upper level and is over 1,250 square feet. This unit features beautiful refurbished hardwood floors along with a brand new bathroom and kitchen with dishwasher.

56 W Bethune St, Detroit, MI 48202 ($1600 / month 1,280 sqft) Spacious, modern, New Center Area Condo. 2 Bedrooms, 1.5 bath attached 2-car garage, 10-foot ceilings, Jetted tub, mbr balcony. Located in close proximity to Henry Ford Hospital main campus, DMC Hospital, Wayne State University, the Detroit Cultural and Museum district and downtown Detroit. 1 block away from an M-1 Rail station. Available for rent starting 7/1/17.Tenant responsible for gas and electric.

LEICESTER LIVING 10210 Byron St, Detroit, MI 48202 ($1300/month 1,000 sqft)

Move into a completely renovated 3 bedroom 1.5 bath apartment in a historic neighborhood of Detroit, located just one street off of Boston Edison. This unit is just seconds away from the Lodge freeway, a few blocks off of Woodward, and you are only minutes from Henry Ford Hospital, New Center, and Downtown.

120 Seward St, Detroit, MI. 48202 (2 units, Currently for rent $1000 each) ]Must See Beautiful Condo Suite In New Center Area. This Elegant Building Is Located 1 Block West Of Woodward Ave. And New M1 Rail, Walking Distance From The Historic Fisher Theatre. Close To Motown Museum, New Detroit Redwings/Pistons Arena, Minutes From Downtown And Midtown. Close Access To Highways.

214 E Philadelphia St, Detroit, MI 48202 ($800 per month) COMPS 2 beds 1 bath 950 sqft . This is a townhouse/flat which is part of a 4 unit house. The unit boasts large living space with high ceilings. Beautifully renovated with modern conveniences. Beautiful laminate floors and new plush carpeting. New appliances and newly remodeled kitchen and full bath. Beautiful historical fireplace and plenty of closet space.

LEICESTER LIVING FINANCIALS TOTAL PROJECT COST: $320,450

ACQUISITION PER UNIT TOTAL Land $833 $5,000 TOTAL $60,308 $361,850 Building $5,000 $30,000 Misc. Acquisition Costs $- $- SUBTOTAL $5,833 $35,000

CONSTRUCTION Construction Costs $37,237 $223,423 Contractor General Conditions $3,724 $22,342 Contractor Profit & O/H $3,724 $22,342 Construction Contingency $3,724 $22,342 SUBTOTAL $48,408 $290,450

PROFESSIONAL FEES Design Architect $500 $3,000 Real Estate Attorney $250 $1,500 Accounting $50 $300 SUBTOTAL $800 $4,800

DEVELOPMENT COSTS Liability Insurance $500 $3,000 Legal Fees $250 $1,500 SUBTOTAL $750 $4,500

OTHER COSTS Appraisal $100 $600 Marketing/Rent-up $417 $2,500 Soft Cost Contingency $417 $2,500 SUBTOTAL $933 $5,600

FINANCING Title & Recording $250 $1,500 SUBTOTAL $250 $1,500

DEVELOPER FEE Developer Fee $833 $5,000 Consultant Fee $2,500 $15,000 SUBTOTAL $3,333 $20,000

LEICESTER LIVING INCOME

RESIDENTIAL BEDROOMS BATH UNITS PER UNIT SQ/FT PRICE/SQ FT PER UNIT TOTALRENT 2 1 6 1000 1 $1000 $6000

TOTAL UNITS: 6 TOTAL MONTHLY INCOME FOR UNITS: $6000 MISC INCOME (STORAGE UNITS) $1800 TOTAL & GROSS MONTHLY INCOME $7800

TOTAL ANNUAL GROSS POTENTIAL INCOME $93,600 LESS RESIDENTIAL VACANCY ALLOWANCE $7200 ANNUAL EFFECTIVE GROSS INCOME (EGI) $86,400

PROJECTED ANNUAL PERCENTAGE INCREASE IN INCOME: 2%

LEICESTER LIVING OPERATING COSTS

PART A. ADMINISTRATION PER UNIT TOTAL What utilities will the owner pay? Water & sewerage, common area electric. Account(Internal) $29 $175 Advertising (Internal) $50 $300 What utilities / costs will the residential tenants pay? Legal (Internal) $13 $75 Unit Gas, Electric, Cable and Internet Management Fee (Internal) $83 $500 Total Administrative Costs $175 $1,050 What expenses will the commercial tenants pay? PART B Unit Gas, Electric, Submetered Water, Cable and Internet OPERATING PER UNIT TOTAL Electricity (Common Areas) $17 $100 Water/Sewer (Unit and Common Area, Commercial Unit Submetered) $33 $200 Gas (By Tenant) $17 $100 Security $17 $100 Total Operating Expenses $83 $500

PART C. MAINTENANCE PER UNIT TOTAL Grounds ( commercial & residential) $50 $300 Repairs ( commercial & residential) $33 $200 Snow Removal $17 $100 Total Maintenance Expenses $100 $600

Real Estate Taxes $67 $400 Insurance $33 $200 Total Fixed Expenses $100 $600

TOTAL PROJECT EXPENSES: $3,400 $20,400

LEICESTER LIVING PRO-FORMA

Projected Annual Percentage Increase in Income: 2% Projected Annual Percentage Increase in Expenses 2% Projected Annual Vacancy Rate Percentage: Residential 8% Projected Annual Vacancy Rate Percentage: Commercial 10% Projected Annual Percentage Increase in Replacement Reserves: 0%

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 Rental Income $93,600 $95,472 $97,381 $99,329 $101,316 Rental Income $114,098 $116,380 $118,707 $121,082 $123,503 Non-rental Income $- $- $- $- $- Non-rental Income $- $- $- $- $- Total Income** $93,600 $95,472 $97,381 $99,329 $101,316 Total Income** $114,098 $116,380 $118,707 $121,082 $123,503 Less Vacancy Amount $7,200 $7,344 $7,491 $7,641 $7,794 Less Vacancy Amount $8,777 $8,952 $9,131 $9,314 $9,500 Effective Gross Income $86,400 $88,128 $89,891 $91,688 $93,522 Effective Gross Income $105,321 $107,428 $109,576 $111,768 $114,003 Less Operating Expenses*** $20,400 $20,808 $21,224 $21,649 $22,082 Less Operating Expenses*** $24,867 $25,365 $25,872 $26,390 $26,917 Net Income $66,000 $67,320 $68,666 $70,040 $71,441 Net Income $80,454 $82,063 $83,704 $85,378 $87,086 Less Replacement Reserve $5,000 $5,000 $5,000 $5,000 $5,000 Less Replacement Reserve $5,000 $5,000 $5,000 $5,000 $5,000 Net Operating Income $61,000 $62,320 $63,666 $65,040 $66,441 Net Operating Income $75,454 $77,063 $78,704 $80,378 $82,086 Less Debt Service $- $- $- $- $- Less Debt Service $- $- $- $- $- Cash Flow $61,000 $62,320 $63,666 $65,040 $66,441 Cash Flow $75,454 $77,063 $78,704 $80,378 $82,086 Debt Coverage Ratio N/A N/A N/A N/A N/A Debt Coverage Ratio N/A N/A N/A N/A N/A

YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 Rental Income $103,342 $105,409 $107,517 $109,667 $111,861 Non-rental Income $- $- $- $- $- Total Income** $103,342 $105,409 $107,517 $109,667 $111,861 Less Vacancy Amount $7,949 $8,108 $8,271 $8,436 $8,605 Effective Gross Income $95,393 $97,300 $99,246 $101,231 $103,256 Less Operating Expenses*** $22,523 $22,974 $23,433 $23,902 $24,380 Net Income $72,869 $74,327 $75,813 $77,330 $78,876 Less Replacement Reserve $5,000 $5,000 $5,000 $5,000 $5,000 Net Operating Income $67,869 $69,327 $70,813 $72,330 $73,876 Less Debt Service $- $- $- $- $- Cash Flow $67,869 $69,327 $70,813 $72,330 $73,876 Debt Coverage Ratio N/A N/A N/A N/A N/A

LEICESTER LIVING SOURCE OF FUNDS

SOURCE NAME/TERM AMOUNT First Mortgage $361,850 $2,210,000 Equity Investor Cash Injection $540,000 TOTAL $361,850 $2,750,000

NAME ALL USES AMOUNT Acquisition $35,000 Rehab (+site work & contingency) $290,450 Development costs $4,500 Professional fees (legal/archi/consulting) $4,800 Financing Costs $1,500 Reserves $- Developer Fee $20,000 survey/title/taxes/appraisal/Envtal $5,600 TOTAL $361,850

LEICESTER LIVING THE TEAM OWNER, DEVELOPER, ETC

Rebound Construction, LLC. Steven L. Harris, AIA, LEED GA 9413 John R Street, Detroit, MI 48202, USA Telephone: 313.415.5566 Email: [email protected]

Steven Harris has undertaken a broad range of projects, all of which are grounded in smart design, mindful of healthy living, and universal design. Steven's diverse body of work includes upscale private residences, chic nightclubs, luxurious retail spaces and impressive corporate offices. Many of his projects have been featured in local publications. His design practice is the culmination of formal education and a diverse interest in art, architecture, textiles and the environment. Mr. Harris has written several publications for Community Devel- opment Corporations and the City of Detroit's New Urbanism Design Concepts.

Rebound Construction undertakes residential interior design projects, commercial spaces as well as single room projects. We can help you with space planning, color counseling, kitchen and bath remodeling, historic preservation, and all aspects of green design and healthy living: organic, non-toxic, sustainable and fair trade materials, energy and resource conservation, air and water purification, natural furnishings and fabrics and much more.

LEICESTER LIVING APPENDIX REHAB DETAIL

LEICESTER LIVING REHAB DETAIL LEICESTER LIVING 109 Leicester Court, Detroit, Michigan 48202