BARCLAY EAST APARTMENTS LEXINGTON, KENTUCKY 521 E Main St. Lexington, KY 40508 CONFIDENTIAL OFFERING MEMORANDUM 2 BUILDINGS | 30-UNIT CONFIDENTIALITY & DISCLAMER 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. SPECIAL COVID - 1 9 N O T I C E All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.) BROKER OF RECORD: COLBY HAUGNESS BARCLAY EAST APARTMENTS LEXINGTON, KENTUCKY PRODUCED BY: PATRICK MULLOWNEY JR. Associate Cincinnati Office Tel: (513) 878-7754 Fax: (513) 878-7710 [email protected] License: OH SAL.2019003754 JOEL M. DUMES Senior Vice President Investments Cincinnati Office Tel: (513) 878-7720 Fax: (513) 878-7710 [email protected] License: OH SAL.2003013045, KY 63818 STANTON R. FALK Senior Vice President Investments Cincinnati Office Tel: (513) 878-7721 Fax: (513) 878-7710 [email protected] License: OH SAL.2012001364 BROKER OF RECORD: COLBY HAUGNESS TABLE OF CONTENTS INVESTMENT01 OVERVIEW LEXINGTON, 02KENTUCKY OVERVIEW PROPERTY03 DESCRIPTION PRICING & 04FINANCIAL ANALYSIS RENT 05COMPARABLES SALES06 COMPARABLES DEMOGRAPHIC07 & MARKET OVERVIEW INVESTMENT OVERVIEW01 INVESTMENT OFFERING BARCLAY EAST APARTMENTS PRICE: MARKET BID NET OPERATING INCOME: $138,305 INTEREST OFFERED 100 Percent Fee-Simple interest in a 30-unit garden-style housing community built in 1965 located at 521 E Main Street Lexington, Kentucky. TERM OF SALE The property is being offered free and clear of any debt. PROPERTY TOURS Under normal circumstances, purchasers are encouraged to tour the subject property prior to evaluating the opportunity. However, due to COVID- 19, we recommend purchasers to submit an offer prior to requesting a tour. Please do not contact the management company without prior approval. All property tours must be coordinated through the listing agent. 6 INVESTMENT OFFERING BARCLAY EAST 30 APARTMENTS UNITS The Barclay East Apartments is a 30-unit, garden-style housing community built in 1965, located in Lexington, Kentucky. This offering represents an opportunity to 1965 acquire an apartment community located in the heart of Lexington with strong YEAR BUILT historical occupancy. The Barclay East Apartments is nestled in the Woodland Park submarket of Lexington and adjacent to East Main Street which sees over 35,000 car’s per day. This year, the Barclay East Apartments completely replaced the roof as well as 750 added a fresh coat of paint to the exteriors. AVG UNIT SF The Barclay East Apartments offers a range of amenities that include a laundry facility, off-street parking, and each unit includes a balcony that overlooks the central courtyard. Some of the units have been updated; however, the major upside 22,500 opportunity comes from renovating the interiors and pushing rents to market. TOTAL SF DOWNTOWN LEXINGTON $699 AVG. RENT/UNIT 100% OCCUPANCY SUBJECT PROPERTY LEXINGTON, KY 521 E Main St. Marcus & Millichap makes no representations as to the accuracy of the information contained herein. Buyer must verify all information and bears all risk for any inaccuracies. 7 INVESTMENT HIGHLIGHTS BARCLAY EAST APARTMENTS 30-UNIT GARDEN STYLE HOUSING COMMUNITY One apartment community constructed in 1965 consisting of 30- 1 units with 60-bedrooms and 30-baths. MINUTES FROM THE UNIVERSITY OF KENTUCKY The University of Kentucky continues to be one of Kentucky’s greatest economic engines, accounting for over $2.7 billion in 2 economic impact. In Fayette County alone, over 1,900 jobs were created because of the University. DESIRABLE LOCATION Located in a highly desirable neighborhood that has seen a 7.1 percent population growth since 2010, more than the national 3 average growth rate of 4.5 percent. UPSIDE POTENTIAL As an incoming buyer, there is an opportunity to renovate/upgrade the existing units. Currently the rental rates 4 are $50 to $150 below market. EXCEPTIONAL TENANT AMENITIES Tenant amenities include off-street parking, an individual 5 balcony for each unit, full kitchens and a laundry facility. Marcus & Millichap makes no representations as to the accuracy of the information contained herein. Buyer must verify all information and bears all risk for any inaccuracies. 8 BARCLAY EAST APARTMENTS Marcus & Millichap makes no representations as to the accuracy of the information contained herein. Buyer must verify all information and bears all risk for any inaccuracies. 9 Gary Brewer Jr. Amazon & UPS Golf Course Fulfillment Center Georgia-Pacific Corporation CHI Saint Joseph Health Schneider Hospital & Office Park The Red Mile Electric Trane Corporate Horse Track Campus Baptist Health Lexington Downtown Lexington Lexmark International Griffin Gate Country Club Galls Transylvania Corporate HQ University Lexington Legends SUBJECT PROPERTY JM Minor-League Smucker Large Industrial & Manufacturing Area Large Industrial & Bryan Station Manufacturing Area Middle School Large Office & Industrial Area Graham Packaging Fredrick Douglass High School 183,653 Residents | 267,184 Employees $75,264 Average Household Income Auto Dealerships Dense Industrial Area DENSE Amazon BUSINESS AREA Fulfillment Center Lexmark International, INC Downtown Financial District J M Smucker CO Rupp Arena BARCLAY EAST APARTMENTS REDMILE Gaming UK Children's & Racing Health Dense Lafayette Senior Industrial Area High School Medical Area Fayette Mall Baptist Health Lexington University of Kentucky University of Kentucky Number of Residents: 183,653 Residents Kentucky State Government Enrollment: 30,200 Toyota Motor Manufacturing Number of Employees: 267,184 Employees Transylvania University Fayette County Public Schools Number of Households: 67,331 Households Enrollment: 1,100 Amazon.com Average Household Income: $75,264 Lafayette Senior High School Conduent Average Work Commute: 18 Minutes Enrollment: 2,440 11 Veterans Medical Center LEXINGTON, KENTUCKY OVERVIEW02 LEXINGTON OVERVIEW Not only is Lexington known for its horse farms There are several hospitals located in the and thoroughbred racetracks like