MILESTONE MANOR APARTMENTS | 379 ELM STREET GA 30314 CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Presented By:

678.808.2788 (O) | 404.936.9023 (M) [email protected] LICENSES: GA 341770, FL BK3376045

WWW.MULTIFAMILYATLANTA.COM 1. EXECUTIVE SUMMARY Offering Description SECTION 1 Investment Distinctions

2. FINANCIALS Historical Performance Projected Penetration Analysis SECTION 2 Investment Pro Forma Competition

TABLE OF CONTENTS

3. OVERVIEW Location Layout and Configuration SECTION 3 Access and Visibility Features and Amenities Capital Expenditures

4. MARKET SYNOPSIS Demographics Submarket Summary SECTION 4 Economic Indicators Market Trends EXECUTIVE SUMMARY E X E C U T I V E S U M M A R Y

O F F E R I N G F E A T U R E S INVESTMENT DISTINCTIONS Class: C 379 ELM STREET IS A STABILIZED 7- Zoning: R5 UNIT APARTMENT COMMUNITY LOCATED IN Discount-to-Replacement THE HIGHLY DESIRABLE NEIGHBORHOOD OF WEST Rent Type: Market Construction: Reinforced Concrete ATLANTA LOCATED AT 379 ELM ST, ATLANTA, GA Strategic Location 30314. HVAC: Central Units

Ceiling Height: 10 Feet +/- Major Corporate Demand Generators 379 ELM STREET IS NESTLED JUST WEST OF Roof: Gable, Asphalt Shingles

DOWNTOWN ATLANTA IN , CONVENIENTLY SITUATED NEAR Significant In-Place Cash Flow UNSURPASSED SHOPPING, DINING, AND L O C A T I O N ENTERTAINMENT OPTIONS. Strong Performance Trends Zip: 30314 ONCE A LARGELY ABANDONED INDUSTRIAL AREA, Value-Add Asset Submarket: West Midtown MF WEST MIDTOWN HAS SEEN LARGE AMOUNTS OF Submarket Cluster: Downtown/Midtown MF GENTRIFICATION AND INFILL, WITH AN ECLECTIC Highly Desired Investment Submarket Market: Atlanta MIX OF NEW LOFTS, RESTAURANTS, SHOPS, ART County: Fulton GALLERIES, SALONS AND PROFESSIONAL FIRMS. State: Georgia

N E T O P E R A T I N G I N C O M E ( C U R R E N T ) N E T O P E R A T I N G I N C O M E ( Y E A R 1 ) $46,499 P R I C E : T B D $48,823

T O T A L U N I T S O C C U P A N C Y R E N O V A T E D S T O R I E S 7 86% 2002 2

A V E R A G E U N I T S I Z E N U M B E R O F B U I L D I N G S A V E R A G E M A R K E T R E N T S I T E S I Z E 900 SF 1 $800 .23 Acres FINANCIALS OPERATING STATEMENT

I n c o m e C u r r e n t P e r U n i t P e r S F Y e a r 1

G r o s s P o t e n t i a l R e n t 9 9 , 0 0 0 1 4 , 8 5 0 1 6 . 5 0 1 0 3 , 9 5 0 L o s s / G a i n t o L e a s e ( 5 , 4 0 0 ) 0 0 . 0 0 0 G r o s s S c h e d u l e d R e n t 9 3 , 6 0 0 1 4 , 8 5 0 1 6 . 5 0 1 0 3 , 9 5 0 P h y s i c a l V a c a n c y ( 4 , 6 8 0 ) ( 7 4 3 ) ( 0 . 8 3 ) ( 5 , 1 9 8 ) T o t a l V a c a n c y ( $ 4 , 6 8 0 ) ( $ 7 4 3 ) ( $ 1 ) ( $ 5 , 1 9 8 ) E f f e c t i v e G r o s s I n c o m e $ 8 8 , 9 2 0 $ 1 4 , 1 0 8 $ 1 5 . 6 8 $ 9 8 , 7 5 3

E x p e n s e s C u r r e n t P e r U n i t P e r S F Y e a r 1

R e a l E s t a t e T a x e s 4 , 6 4 2 3 5 7 0 . 4 0 4 , 6 4 2 I n s u r a n c e 1 , 4 0 0 2 1 4 0 . 2 4 1 , 5 0 0 U t i l i t i e s - E l e c t r i c 1 9 , 3 3 5 2 , 8 5 7 3 . 1 7 2 0 , 0 0 0 U t i l i t i e s - W a t e r & S e w e r 9 , 2 6 9 1 , 3 2 9 1 . 4 8 9 , 3 0 0 U t i l i t i e s - G a s 1 , 4 7 9 2 1 4 0 . 2 4 1 , 5 0 0 T r a s h R e m o v a l 1 , 6 0 0 2 2 9 0 . 2 5 1 , 6 0 0 R e p a i r s & M a i n t e n a n c e 2 , 5 0 0 3 5 7 0 . 4 0 2 , 5 0 0 C a b l e T V 2 , 1 9 6 3 1 4 0 . 3 5 2 , 2 0 0 O p e r a t i n g R e s e r v e s 2 5 0 0 . 2 8 1 , 7 5 0 M a n a g e m e n t F e e 0 7 0 5 0 . 7 8 4 , 9 3 8

T o t a l E x p e n s e s $ 4 2 , 4 2 1 $ 7 , 1 3 3 $ 7 . 9 3 $ 4 9 , 9 3 0 E x p e n s e s a s % o f E G I 4 7 . 7 % 5 0 . 6 %

N e t O p e r a t i n g I n c o m e $ 4 6 , 4 9 9 $ 6 , 9 7 5 $ 7 . 7 5 $ 4 8 , 8 2 3

RENT ROLL

UNIT TYPE RENT/MONTH RENT/YEAR POTENTIAL RENT/YEAR

1 1 b e d / 1 b a t h * V a c a n t V a c a n t $ 1 0 , 2 0 0 2 2 b e d / 2 b a t h $ 7 5 0 $ 9 , 0 0 0 $ 1 0 , 2 0 0 3 2 b e d / 2 b a t h $ 7 5 0 $ 9 , 0 0 0 $ 1 0 , 2 0 0 4 2 b e d / 2 b a t h $ 7 5 0 $ 9 , 0 0 0 $ 1 0 , 2 0 0 5 2 b e d / 2 b a t h * - V e t e r a n $ 7 0 0 $ 8 , 4 0 0 $ 1 0 , 2 0 0 6 4 b e d / 2 b a t h $ 2 , 0 0 0 $ 2 4 , 0 0 0 $ 2 4 , 0 0 0 7 4 b e d / 2 b a t h $ 2 , 0 0 0 $ 2 4 , 0 0 0 $ 2 4 , 0 0 0

T o t a l : $ 6 , 9 5 0 $ 8 3 , 4 0 0 $ 9 9 , 0 0 0 COMPETITIVE PROPERTY SET

1 2 3

260 ELM ST NW 385 JOSEPH E LOWERY BLVD NW 15 BURBANK DR NW

Sales Price: $636,000 (7% Cap Rate) Sales Price: $625,000 (No Cap Rate) Sales Price: $340,000 (8.25% Cap Rate) Price/Unit: $79,500 Price/Unit: $52,083 Price/Unit: $56,666 Total # of Units: 8 Total # of Units: 12 Total # of Units: 6 1 bed Rents: $725 100% VACANT - NO OCCUPANCY 2 beds Rents: $625

4 5 5

2046 JOSEPH E BOONE BLVD 214 RANDOLPH ST 1171 SELLS AVE

Sales Price: $850,000 (8.4% Cap Rate) Sales Price: $1,540,000 (6.23% Cap Rate) Sales Price: $342,500 (7.6% Cap Rate) Price/Unit: $60,714 Price/Unit: $154,000 Price/Unit: $85,625 Total # of Units: 14 Total # of Units: 10 Total # of Units: 4 1 bed Rents: $795 1 bed Rents: $1090 1 bed Rents: $750 2 beds Rents: $1310 OVERVIEW D E T A I L S

379 ELM STREET CONSISTS OF 7 WELL MAINTAINED TWO AND FOUR BEDROOM UNITS IN WEST MIDTOWN adjacent to .

Downtown Atlanta is the central business district of Atlanta, Georgia, United States. The largest of the city's three commercial districts, Downtown is the location of many corporate or regional headquarters; city, county, state and federal government facilities; Georgia State University; sporting venues; and most of Atlanta's tourist attractions. Downtown measures approximately four square miles, and had 26,700 residents as of 2010. Similar to other central business districts in the United States, Downtown has recently undergone a transformation that included the construction of new condos and lofts, renovation of historic buildings, and arrival of new residents and businesses.

West Midtown, also known as Westside, is a colloquial area, comprising many historical neighborhoods located in Atlanta, Georgia. Once largely industrial, West Midtown is now the location of urban lofts, art galleries, live music venues, retail and restaurants.

n o

Atlanta's West Midtown is reinventing itself. Once largely industrial, this area of town is i now home to a lively selection of urban lofts, art galleries, live music venues, retail shops, t p restaurants and modern office space. i r c

Downtown is bound by North Avenue to the north, to the east, Interstate 20 to s the south, and Northside Drive to the west. This definition of Downtown Atlanta includes e

central areas like Five Points, the Hotel District and Fairlie-Poplar and outlying inner city D neighborhoods such as SoNo and . y t r e p o r P Emory University Hospital Midtown

Centennial Olympic Park Downtown Atlanta Piedmont Park Philips arena

Georgia Aquarium

Georgia Tech Fox Theatre

Mercedes-Benz Stadium

Georgia World Congress Center Elm Street Apartments

West Midtown SIGNIFICANT DEVELOPMENTS

WESTSIDE RESERVOIR PARK GEORGIA WORLD CONGRESS CENTER HOTEL WESTSIDE PARK IS A PROPOSED PARK IN THE CITY OF ATLANTA TO AN 800 - 1000 ROOM HOTEL BE LOCATED ON THE SITE OF THE PROPOSED FOR THE SOON TO BE FORMER BELLWOOD QUARRY. THE VACATED SPACE ON THE NORTH SIDE PARK IS BETWEEN JOHNSON ROAD 1 OF THE EXISTING GEORGIA DOME. AND DONALD LEE HOLLOWELL 2 THE PROJECT WOULD COST UP TO PARKWAY AND BETWEEN THE $250 MILLION AND INCREASE GWCC NEIGHBORHOODS OF BANKHEAD REVENUES BY UP TO $3 MILLION PER AND WEST MIDTOWN AND YEAR. IMMEDIATELY TO THE NORTHEAST OF THE NEIGHBORHOOD OF GROVE PARK.

FT. MCPHERSON TURNER FIELD REDEVELOPMENT REDEVELOPMENT REDEVELOPMENT GOALS INCLUDE THE SUMMERHILL AFFORDABLE HOUSING, SHOPPING, 3 REDEVELOPMENT PLANS ENVISION A MIX EDUCATION AND TRAINING. 4 OF STUDENT HOUSING, APARTMENTS, MCPHERSON IMPLEMENTING LOCAL RETAIL AND THE CONVERSION OF REDEVELOPMENT AUTHORITY, ALSO TURNER FIELD INTO A FOOTBALL KNOWN AS FORT MAC LRA, IS THE STADIUM AGENCY STEERING THE PARTIAL REDEVELOPMENT OF THE DECOMMISSIONED MILITARY BASE, WHICH CLOSED IN 2011. IN THE AREA

DOWNTOWN ATLANTA DOWNTOWN IS THE CITY’S BUSY WEST MIDTOWN CENTRAL BUSINESS DISTRICT. AT ITS HEART IS CENTENNIAL OLYMPIC WEST MIDTOWN, ALSO KNOWN AS PARK, WITH ITS CENTERPIECE WESTSIDE, IS A COLLOQUIAL AREA, FOUNTAIN OF RINGS AND REGULAR COMPRISING MANY HISTORICAL LUNCHTIME CONCERTS. NEARBY 1 NEIGHBORHOODS LOCATED IN SIGHTS INCLUDE THE COLLEGE 2 ATLANTA, GEORGIA. ONCE LARGELY FOOTBALL HALL OF FAME, THE INDUSTRIAL, WEST MIDTOWN IS AND THE NOW THE LOCATION OF URBAN CENTER FOR CIVIL AND HUMAN LOFTS, ART GALLERIES, LIVE MUSIC RIGHTS, WHICH HAS MULTIMEDIA VENUES, RETAIL AND RESTAURANTS. EXHIBITS. THERE ARE SEVERAL CASUAL, STUDENT-FRIENDLY EATERIES AROUND THE GEORGIA STATE UNIVERSITY CAMPUS.

MIDTOWN ATLANTA HARTSFIELD–JACKSON MIDTOWN IS A BUSY COMMERCIAL AREA ATLANTA INTERNATIONAL AND A VIBRANT ARTS HUB. THE HIGH MUSEUM OF ART SHOWS WORLD- AIRPORT RENOWNED WORKS IN A STRIKING HARTSFIELD–JACKSON ATLANTA MODERN BUILDING, WHILE MARGARET INTERNATIONAL AIRPORT, ALSO 3 MITCHELL HOUSE OFFERS TOURS OF THE KNOWN AS ATLANTA AIRPORT, 4 FORMER HOME OF THE “GONE WITH THE HARTSFIELD, OR HARTSFIELD– WIND” AUTHOR. IS A JACKSON, IS AN INTERNATIONAL HOTSPOT FOR COMEDY, BARS AND BIG- AIRPORT LOCATED 7 MILES SOUTH OF NAME SHOPS, WITH EATING OPTIONS ATLANTA'S CENTRAL BUSINESS RANGING FROM STREET FOOD TO FINE DISTRICT, IN THE U.S. STATE OF DINING. LARGE, LEAFY PIEDMONT PARK GEORGIA. OFFERS WALKING TRAILS. MARKET SYNOPSIS DEMOGRAPHICS

(1-MILE RADIUS) (3-MILE RADIUS) (5-MILE RADIUS)

2017 Total Population: 22,755 2017 Total Population: 160,446 2017 Total Population: 334,888 2022 Population: 23,673 2022 Population: 168,845 2022 Population: 351,258 Population Growth 2017-2022: 4.03% Population Growth 2017-2022: 5.23% Population Growth 2017-2022: 4.89% Average Age: 30.00 Average Age: 34.30 Average Age: 35.60

Households Households Households 2017 Total Households: 5,504 2017 Total Households: 69,228 2017 Total Households: 145,499 Household Growth 2017-2022: 5.16% Household Growth 2017-2022: 5.33% Household Growth 2017-2022: 4.78% Median Household Income: $29,504 Median Household Income: $47,474 Median Household Income: $51,824 Average Household Size: 2.10 Average Household Size: 1.80 Average Household Size: 2.00 2017 Average Household Vehicles: 1.00 2017 Average Household Vehicles: 1.00 2017 Average Household Vehicles: 1.00

Housing Housing Housing Median Home Value: $163,636 Median Home Value: $216,762 Median Home Value: $253,131 Median Year Built: 1974 Median Year Built: 1973 Median Year Built: 1967 METROPOLITAN OVERVIEW

The Atlanta metro encompasses 29 counties in northwestern Georgia. With few natural barriers to limit development, tremendous population growth over the past decade expanded the metro’s borders and the region now has a population of roughly 5.7 million people. Over the next five years, the region is expected to add nearly 500,000 residents. Meanwhile, new redevelopment projects in the downtown and midtown sections of Atlanta present a vast array of housing, entertainment and retail opportunities that are enticing residents back into the city and providing options for people moving to the metro.

HEAVY CONCENTRATION OF CORPORATE HEADQUARTERS: Atlanta ranks fifth in the nation in the number of Fortune 500 headquarters with 17 companies, including UPS, Delta Airlines, and Coca-Cola.

STRONG EMPLOYMENT GAINS: The metro ranks among the highest in the nation for job growth. Nearly 400,000 jobs were added in the last four years.

LOW COST OF LIVING AND DOING BUSINESS ATTRACTS EMPLOYERS: A pro-business environment and affordability helped Atlanta rise to second in the nation in job creation last year.

ECONOMY MAJOR AREA EMPLOYERS Gross metropolitan product (GMP) and retail sales Delta Airlines progress above national levels. The Home Depot AT&T The area serves as a financial hub for the WellStar Health Systems Southeast. The Federal Reserve Bank of Atlanta and UPS SunTrust Bank are housed locally. Northside Hospital Piedmont Healthcare Many companies favor Atlanta for low corporate Children's Healthcare of Atlanta taxes, its pro-business climate and access to Cox Enterprise national and global markets. Among the many Bank of America corporate headquarters are Home Depot, Aflac and Turner Broadcast Co. Other major firms include NCR, Mercedes Benz, Porsche and State Farm. ECONOMIC DRIVERS

QUALITY OF LIFE INVESTMENT TRENDS The Atlanta metro features a surging business environment and Buyers in the sub-$5 million tranche are dominating transaction velocity in modern infrastructure while providing entertainment and Atlanta. Restaurants and fast-food establishments remain a popular target, attractions. Affordable housing in the outer perimeters lowers the particularly in high-traffic locations with residential growth. Depending on locale average cost of living. The metro has several acclaimed cultural and tenant, these properties trade at mid-4 to mid-6 percent yields. institutions, including Zoo Atlanta and the High Museum of Art. More than 30 institutions of higher learning call Atlanta home, Out-of-state investors maintain a significant presence in the metro, most notably including Emory University, Georgia Institute of Technology, Georgia California and New York-based firms. These buyers target Gwinnett, North Cobb State University, and Spelman College, and Morehouse College. County and , eyeing recently built assets with 4 percent minimum Outdoor and sports enthusiasts will find plenty to enjoy. Mild yields. Local buyers remain active in the sub-$2 million space, attracted to weather year-round beckons residents to hike, paddle and bike on listings in Roswell/Alpharetta and Central Atlanta, the latter a popular locale for the many trails in and around Atlanta. Atlanta is home to smaller storefront retail trades. professional sports franchises in the NFL, MLB, NBA, MLS, and WNBA. Stout investor demand for retail properties in Atlanta placed upward pressure on prices during the previous 12 months. Metrowide, the average price climbed 8.3 percent to $315 per square foot. $1,600 MARKET TRENDS s t $1,200 n e R

e $800 g a r e v $400 A

$0 All Rentals Studio 1 Bed 2 Beds 3 Beds

increase in total basis point decrease increase in effective 2.3% employment Y-O-Y 12,800 120 in vacancy Y-O-Y 5.6% rents Y-O-Y units completed Y-O-Y • During the year ending in • Completions have risen • The heightened pace of • Metrowide increasing vacancy September, employers created considerably from the 9,200 completions outpaces did not hamper rent growth, 62,200 positions in Atlanta, an units added to stock in the absorption of 5,900 rentals, with the average effective rent increase of 2.3 percent. Hiring previous 12- month period. amplifying vacancy 120 basis climbing to $1,133 per month remains above the national rate Deliveries were widespread with points to 5.4 percent. during the last 12 months. In of growth. Midtown receiving roughly 2,400 the prior year, rent advanced units, the most among • A lack of deliveries and 7.0 percent. • Healthy job creation pushed submarkets. positive net absorption in West the unemployment rate down Marietta drove a 170-basis- • Rent growth was strongest in 60 basis points to a cyclical low • Several outlying submarkets point decrease in vacancy Class C apartments. Effective of 4.5 percent. Hiring was posted a cyclical record number during the last 12 months to 5.1 rent rose 7.3 percent to $805 primarily led by the professional of deliveries during the last four percent. Tightening vacancy per month during the last four and business services sector, quarters including Decatur and also spurred a 4.1 percent rise quarters. which added 29,200 positions. Sandy Springs. in effective rent. MARKET TRENDS

Economic growth and positive demographics support apartment demand Several bustling industries including financial services, technology, telecommunications and film propel Atlanta’s job growth rate above the national pace. As a result, numerous individuals are relocating to the metro in search of employment, keeping the pace of household formation strong. Elevated demand in 2018 supports net absorption topping 10,000 units for a second consecutive year, though heightened deliveries will outstrip overall apartment demand and place upward pressure on vacancy. Softening vacancy remains localized to areas with elevated completions, from Midtown up to Sandy Springs, and further additions in 2018 will likely keep the rate elevated. Despite higher vacancy, rents in Midtown and remain the highest in the market, pushing some residents into more affordable areas. As a result, more than $1 billion in development has been announced west of the Chattahoochee River, and demand for apartments here rises as units are delivered.

Diverse buyer pool targets Atlanta apartment assets. Both out-of-state and in-state buyers in search of apartment properties priced between $1 million and $10 million are primarily targeting complexes in suburban locations. South Fulton County, Clayton County and Cumberland draw attention from these investors and initial yields average in the high-6 percent to low-7 percent span. Institutional capital remains focused on the area inside Interstate 285, where thousands of units will come online this year. In the downtown area, units are anticipated to fill quickly amid the resurgence of the area, led primarily by off-campus students and faculty for Georgia State University, offering new opportunities for these institutional buyers. As the metro’s price per unit normalizes, existing Class A buildings typically trade at first-year returns in the mid-5 percent range, with initial yields closer to 5 percent for newly developed assets.

FORECAST

Elevated completions raise vacancy, lowering Atlanta one spot in this year’s ranking.

Job growth remains above the national pace this year as 57,000 workers are added to payrolls.

Deliveries stay heightened in 2018, with the majority of units slated to come online inside the perimeter, where more than 9,000 units will be added to inventory.

The vacancy rate rises from last year to 6.5 percent in 2018 as completions remain at their highest level since the early 2000s.

The average effective rent will increase again this year, albeit at the slowest pace since 2012. The average reaches $1,197 per month in 2018.

Vinings, Cumberland and Downtown Atlanta are areas of revitalization, and investors will take a keen look for both new assets and value-add opportunities. NATIONAL TRENDS

AVERAGE PRICE PER UNIT RANGE T I N U

R E P

E C I R P 678.808.2788 (O) | 404.936.9023 (M) [email protected] LICENSES: GA 341770, FL BK3376045

MULTIFAMILYATLANTA.COM MILESTONE MANOR 379 ELM ST ST, ATLANTA, GA 30314