OFFERING MEMORANDUM | INVESTMENT PROPERTY

10917 BERNARD AVENUE BERNARD APARTMENTS , OH

8 UNIT APARTMENT BUILDING | FOR SALE AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies of the state of affairs of the Property or the owner of the The Owner expressly reserved the right, at its sole discretion, with many subsidiaries and/or related entities (each an Property (the “Owner”), to be all-inclusive or to contain all to reject any or all expressions of interest or offers to “Affiliate”) engaging in a broad range of commercial real or part of the information which prospective investors may purchase the Property, and/or to terminate discussions with estate businesses including, but not limited to, brokerage require to evaluate a purchase of real property. All financial any entity at any time with or without notice which may services, property and facilities management, valuation, projections and information are provided for general arise as a result of review of this Memorandum. The Owner investment fund management and development. At times reference purposes only and are based on assumptions shall have no legal commitment or obligation to any entity different Affiliates may represent various clients with relating to the general economy, market conditions, reviewing this Memorandum or making an offer to purchase competing interests in the same transaction. For example, competition and other factors beyond the control of the the Property unless and until written agreement(s) for the this Memorandum may be received by our Affiliates, Owner and CBRE, Inc. Therefore, all projections, assumptions purchase of the Property have been fully executed, delivered including CBRE Investors, Inc. or Trammell Crow Company. and other information provided and made herein are subject and approved by the Owner and any conditions to the Those, or other, Affiliates may express an interest in the to material variation. All references to acreages, square Owner’s obligations therein have been satisfied or waived. property described in this Memorandum (the “Property”) footages, and other measurements are approximations. may submit an offer to purchase the Property and may be Additional information and an opportunity to inspect the By receipt of this Memorandum, you agree that this the successful bidder for the Property. You hereby Property will be made available to interested and qualified Memorandum and its contents are of a confidential nature, acknowledge that possibility and agree that neither CBRE, prospective purchasers. In this Memorandum, certain that you will hold and treat it in the strictest confidence and Inc. nor any involved Affiliate will have any obligation to documents, including leases and other materials, are that you will not disclose this Memorandum or any of its disclose to you the of any Affiliate in the sale or purchase of described in summary form. These summaries do not contents to any other entity without the prior written the Property. In all instances, however, CBRE, Inc. will act in purport to be complete nor necessarily accurate descriptions authorization of the Owner or CBRE, Inc. You also agree that the best interest of the client(s) it represents in the of the full agreements referenced. Interested parties are you will not use this Memorandum or any of its contents in transaction described in this Memorandum and will not act expected to review all such summaries and other documents any manner detrimental to the interest of the Owner or in concert with or otherwise conduct its business in a way of whatever nature independently and not rely on the CBRE, Inc. that benefits any Affiliate to the detriment of any other contents of this Memorandum in any manner. offeror or prospective offeror, but rather will conduct its If after reviewing this Memorandum, you have no further business in a manner consistent with the law and any Neither the Owner or CBRE, Inc, nor any of their respective interest in purchasing the Property, kindly return this fiduciary duties owed to the client(s) it represents in the directors, officers, Affiliates or representatives make any Memorandum to CBRE, Inc. transaction described in this Memorandum. representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its This is a confidential Memorandum intended solely for your contents, and no legal commitment or obligation shall arise limited use and benefit in determining whether you desire to by reason of your receipt of this Memorandum or use of its express further interest in the acquisition of the Property. contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible This Memorandum contains selected information pertaining purchase of the real property. to the Property and does not purport to be a representation

© 2020 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

BERNARD APARTMENTS | OFFERING MEMORANDUM 2 TABLE OF CONTENTS: FOR ADDITIONAL INFORMATION:

EXECUTIVE FRED HERRERA SUMMARY Senior Vice President 04 +1 216 363 6408 [email protected]

PROPERTY JENNA GAUNTNER 05 OVERVIEW Associate +1 216 363 6450 [email protected] 07 2020 PRO FORMA

WEST BLVD 08 NEIGHBORHOOD

CLEVELAND 11 OVERVIEW

950 Main Ave Suite 200 Cleveland, OH 44113 www.cbre.com/cleveland

BERNARD APARTMENTS | OFFERING MEMORANDUM 3 EXECUTIVE SUMMARY

THE OFFERING

Bernard Apartments, located in Cleveland’s neighborhood, is an 8-unit building apartment building originally constructed in 1927 and heavily renovated in 2019. Renovations include a new roof, windows, doors, electrical, hot water tanks, and furnaces. Of the 8 units, there are two 1-bedroom, four 2-bedroom, and two 3-bedroom units. The property is situated on the corner of Bernard and West 110th, one block south of Lorain Avenue and three blocks east of West 117th. Located just 6 miles from , West Boulevard is in the heart of Cleveland’s dense suburban neighborhoods, including Lakewood, West Park, Birdtown, and Kamms Corner. Popular among people of all ages, these neighborhoods offer a plethora of nightlife, music, arts, and entertainment and are located in close proximity to I-71, I-90, I-480, the Detroit Shoreway, and SR-2.

PROJECTED TOTAL INCOME CAP RATE $65,420.60 9.75%

PROJECTED TOTAL EXPENSES ASKING PRICE $27,859.66 $385,204

PROJECTED TOTAL NOI PRICE PER UNIT $37,560.94 $48,155 PER UNIT

BERNARD APARTMENTS | OFFERING MEMORANDUM 4 PROPERTY OVERVIEW

10917 BERNARD AVE, ADDRESS CLEVELAND, OH 90 71 PARCEL NUMBER 018-10-080 1.0 Mile 2.1 Miles 6.0 Miles ZONING 2F-B1 (Two Family)

BUILDING / STORIES 1 / 2 SR 2 80 480 0.16 AC SITE SIZE 3.2 Miles 11.2 Miles 4.8 Miles

TOTAL RENTABLE AREA 7,420 SF

AVERAGE UNIT SIZE 927.5 SF

AVERAGE MONTHLY $700.00 RENT

CURRENT LEASED 88% OCCUPANCY

STRENGTHS • New roof, windows, doors, electrical, furnaces • Value-add opportunity • Close proximity to Lakewood and downtown Cleveland

BERNARD APARTMENTS | OFFERING MEMORANDUM 5 PROPERTY PHOTOS

BERNARD APARTMENTS | OFFERING MEMORANDUM 6 2020 PROFORMA

TYPE SF QTY. $/MO MONTHLY TOTAL ANNUAL TOTAL 1-Bed 710 2 $600 $1,200 $14,400 2-Bed 950 4 $700 $2,800 $33,600 GROSS GROSS 3-Bed 1,100 2 $800 $1,600 $19,200 POTENTIAL POTENTIAL Totals 7,420 8 $700 $5,600 $67,200

INCOME MONTHLY ANNUAL PER UNIT PER SF % OF PGR Potential Gross Rental Income $5,600.00 $ 67,200.00 $8,400.00 $9.06 100.00% Vacancy/Concession Loss (5%) $280.00 $3,360.00 $420.00 $0.45 5.00% Projected Net Rental Income $5,320.00 $63,840.00 $7,980.00 $8.60 95.00% Application Fees $ 12.37 $148.40 $18.55 $0.02 0.22% INCOME Damages $ 68.02 $816.20 $102.03 $0.11 1.21%

2020 PROFORMA 2020 Late Charge $ 51.33 $616.00 $77.00 $0.08 0.92% Projected Total Income $ 5,451.72 $65,420.60 $8,177.58 $8.82 97.35%

EXPENSES MONTHLY ANNUAL PER UNIT PER SF % OF PGR Real Estate Taxes $616.09 $7,393.04 $924.13 $1.00 11.00% Property Insurance $184.67 $2,216.00 $277.00 $0.30 3.30% Gas - - - - 0.00% Electric $30.00 $360.00 $45.00 $0.05 0.54% Water & Sewer $450.00 $5,400.00 $675.00 $0.73 8.04% Dumpster / Trash Services $160.00 $1,920.00 $240.00 $0.26 2.86% Snow Removal - - - - 0.00% Landscaping $66.67 $800.00 $100.00 $0.11 1.19% Maintenance & Repairs $247.33 $2,968.00 $371.00 $0.40 4.42% EXPENSES Decorating & Turnover (30% TO @ $700) $140.00 $1,680.00 $210.00 $0.23 2.50% 2020 PROFORMA 2020 Legal / Accounting $66.67 $800.00 $100.00 $0.11 1.19% Advertising & Promotion $46.67 $560.00 $70.00 $0.08 0.83% Management (3% of PTI) $163.55 $1,962.62 $245.33 $0.26 2.92% Reserves for Replacements $150.00 $1,800.00 $225.00 $0.24 2.68% Total Expense of Operation $2,321.64 $27,859.66 $3,482.46 $3.75 41.46% NOI Before Debt Service $ 3,130.08 $ 37,560.94 $ 4,695.12 $5.06 55.89%

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK. 7 WEST BOULEVARD NEIGHBORHOOD OVERVIEW

HISTORY Annexed to the City of Cleveland in both 1873 and 1903, the West Boulevard neighborhood is named after the thoroughfare running north to south, originally designed to connect Edgewater Park (North) to Brookside Park (South). Known for their historic appeal and generous tree lawns, most of the homes in the West Boulevard neighborhood were built prior to 1939, however, there was an influx in homes built between the 1940’s and late 1960’s.

CULTURE & NIGHTLIFE The historic feel of the neighborhood greatly compliments the diverse and dense suburban culture and bustling nightlife as the area is surrounded by numerous amenities including 50+ bars and restaurants, 3 markets, and numerous shops. The neighborhood boasts a healthy mix of households with 50% of the population being homeowners and 50% renting their homes.

CONNECITVITY TO JOBS, EDUCATION, & HEALTHCARE While West Boulevard is highly walkable, downtown Cleveland offers numerous job opportunities and is easily accessible via personal car, bus or the rapid. The city is home to numerous top-ranking universities, including Baldwin Wallace, Case Western Reserve, and Cleveland State. Healthcare is also covered as Cleveland is home to the #1 concentrated area of hospitals and medical research centers in the nation. Source: . August 4, 1909

$63,705 316,457 $11,062 193,189 140,922 38.7 AVERAGE HH POPULATION AVERAGE HOUSING EMPLOYEES HOUSEHOLDS MEDIAN AGE INCOME VALUE

#1 OF 35 - DIVERSE NEIGHBORHOODS IN CLEVELAND

#13 OF 33 - NEIGHBORHOODS WITH THE LOWEST COST OF LIVING IN CLEVELAND

#17 OF 35 - BEST NEIGHBORHOODS FOR YOUNG PROFESSIONALS IN CLEVELAND Source: Niche.com Source: Statistical Atlas 8 WEST BOULEVARD TRADE MAP

MADISON AVE

LAKEWOOD Opening soon W 110 W

Birdtown 110 W

TH TH ST 9,924 ST WESTERN AVE BEREA RD 135,376 90 WESTOWN SQUARE

126,177 LORAIN AVE •20,812

TRISKETT RD

W 105 105 W W

WEST BLVD

TH TH W 117 W

W 117 W WEST BOULEVARD

ST ST

10

TH TH

ST ST

71

BERNARD APARTMENTS | OFFERING MEMORANDUM 9 LOCAL CLEVELAND NEIGHBORHOODS

Lakewood Edgewater Detroit Shoreway

Source: Cleveland State University, NODIS

BERNARD APARTMENTS | OFFERING MEMORANDUM 10 CLEVELAND MARKET OVERVIEW

2,073,482 861,491 31 5 $119 BILLION $45 MILLION POPULATION HOUSEHOLDS NUMBER OF COLLEGES/ NUMBER OF ANNUAL GROSS ANNUAL CULTURAL UNIVERSITIES FORTUNE 500 DOMESTIC PRODUCT DISTRICT ECONOMIC HEADQUARTERS IMPACT

31.5% 10,040,817 4,763 35,700 $54,092 5 WORKFORCE WITH CLE ANNUAL NUMBER OF NUMBER OF HIGH- MEDIAN HOUSEHOLD MAJOR HEALTH BACHELOR'S DEGREE OR PASSENGERS RESTAURANTS/BARS TECH WORKERS INCOME SYSTEMS HIGHER

COST OF LIVING INDEX – 72.61 TRENDS CULTURE % PLAYHOUSE 29 CLEVELANDERS ONLY CAPITAL DEVELOPMENTS $8 BILLION INVESTED SQUARE SECOND BEST MUSEUM IN BELOW NEED TO MAKE NATIONAL IN DOWNTOWN OVER IS THE SECOND AMERICA LARGEST BUSINESS INSIDER, 2016 AVERAGE 2 10 YEARS $535 MILLION $47,150/YEAR COMPLETED IN 2019 THEATER DISTRICT TO BUY A HOME WITH A OUTSIDE OF NYC MEDIAN VALUE OF $165,805 DOWNTOWN POPULATION CLEVELAND INCREASED 102% SINCE ORCHESTRA MAJOR ATTRACTIONS 2000 POPULATION "THE FINEST IN ESTIMATED TO BE OVER AMERICA" CLEVELAND AQUARIUM 20,000 RESIDENTS BY THE –THE NEW YORK ZOO END OF 2020 TIMES, 2015 CHRISTMAS STORY HOUSE CUYAHOGA VALLEY NATIONAL PARK $25.03 5.1% RECREATION & ENTERTAINMENT GREAT LAKES SCIENCE CENTER AVERAGE HOURLY WAGE3 UNEMPLOYMENT RATE3 CLEVELAND METROPARKS LAKE METRO PARKS $1,019 1,061,100 18 RESERVATIONS SPANNING MORE THAN MGM NORTHFIELD PARK AVERAGE WEEKLY WAGE3 CIVILIAN LABOR FORCE3 23,000 ACRES WITH MORE THAN 300 MILES OF TRAILS, 8 GOLF COURSES, 8 LAKEFRONT PARKS AND THE CLEVELAND METROPARKS ZOO. ACCESS TO YOUNG TALENT WITH +25 MAJOR COLLEGES PUBLIC SQUARE AND UNIVERSITIES WITHIN THE NORTHEAST ROCK AND ROLL HALL OF FAME REGION, AND 400 MORE SCHOOLS WITHIN A 200-MILE AREA 2016 “NATIONAL GOLD MEDAL AWARD FOR EXCELLENCE” – AMERICAN AROUND THE REGION. ACADEMY FOR PARKS AND RECREATION ADMINISTRATION BERNARD APARTMENTS CLEVELAND RANKINGS

10917 BERNARD AVENUE, CLEVELAND, OH U.S. Cities that are Easy to Explore on #4 of the 25 Cities Where Pay Goes Foot Furthest Matador Network, 2019 Glassdoor, 2015 & 2016

Top 50 Meeting Destinations in the #1 of the Best Cities to Go Car-Free U.S. USA Today, 2016 Cvent, 2019 Cleveland is one of the “Top Student 10 Best Places to Get a Fresh Start in Travel Destinations for 2019.” 2019 Teach & Travel Livability Cuyahoga Valley Scenic Railroad 10 Great Stops Along the Great Lakes ranked #5 of the 10 Most Beautiful USA Today, 2018 Vintage Train Routes in America HouseBeautiful, 2016 Best of the World List National Geographic Traveler’s, 2018 10 Forward-Thinking American Cities Huffington Post, 2016 Coolest Place You've Never Thought to Visit 14 Places in America You Have to Visit Travel +Leisure, 2018 SmarterTravel, 2016

#12 of the 14 High Tech Cities to Live #14 of the 2016 Best Food Cities in in America Dice.com, 2017 Time, 2016

#9 of the 25 Best Cities for Jobs America’s 20 Most Cultured Cities Glassdoor, 2017 Travel + Leisure, 2016

Most Affordable Winter Destinations #12 of the America’s 20 Most Cultured SmarterTravel, 2017 Cities Travel +Leisure, 2015 15 best places to live in the U.S. FRED HERRERA JENNA GAUNTNER Timeout.com 2016 #7 of Trulia’s Most Affordable Cities Senior Vice President Associate Trulia, 2015 +1 216 363 6408 +1 216 363 6450 [email protected] [email protected]

BERNARD APARTMENTS | OFFERING MEMORANDUM 12