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Home , Macon City Auditorium, Mercer University

ASHLEY TOWERS 60 UNITS | MACON, GA Significant Upside Potential in Revitalized Downtown Macon

CHAPMAN’S RETREAT 82 UNITS | SPRING HILL, TN OFFERING SUMMARY

SITE CONSTRUCTION & UTILITIES

Number of Units 60 Exterior Brick

Rentable Square Feet 29,250 Roof Flat Average SF Per Unit 488 Parking Surface Asphalt ASHLEY TOWERS # of Apartment Buildings 1 Electricity Power Company Year Built 1951 Water & Sewer Macon Water Authority Acreage 0.58 Gas Georgia Natural Gas Density (Units Per Acre) 103.45

Access Type New Street

UNIT BREAKDOWN Type Units Unit SF Total SF

Studio 10 300 3,000 1BD/1BA 19 450 8,550 1BD/1BA B 20 500 10,000 2BD/1BA 10 700 7,000 2BD/1BA Corp 1 700 700 Total/Avgs 60 488 29,250

4 5 FLOOR PLANS

2BD/1BA 700 Sq. Ft.

Studio 300 Sq. Ft.

1BD/1BA 450 Sq. Ft.

1BD/1BA B FEATURES & 500 Sq. Ft. AMENITIES

• Cable TV / Satellite Ready • Laundry Room • Central Heat & Air • Gas Ranges • Refrigerators • Disposals • 2” Blinds • Ceiling Fans • Secured Building • 42 Parking Spots & Off-Street Parking Available • Fitness & Community Lounge Area • Built In Bookcases • Quiet Environment • Wi-Fi high speed internet connections ($10 per month access fee)

6 7 INVESTMENT RATIONALE

Ashley Towers is a 60-unit loft apartment building primed for value-add opportunities in Macon, GA. The HIGHLIGHTS downtown area has seen several new and recently renovated loft apartments with similar locations in the past 6 years, with top-of-the-market rental rates eclipsing $2,000 per month. Ashley Towers is currently 100% occupied and has seen minimal rent growth over the past 3 or 4 years. Additionally, the frst foor of the property includes INCREASING HOUSING DEMAND IN DOWNTOWN MACON: Macon’s downtown some vacant space with potential for improvement. All of these factors provide new ownership an exciting corridor has recently seen a resurgence in residential development of loft apartments, with six new or recently renovated lofts coming to market in the last several years. These amenity-rich lofts in opportunity to implement several value-add strategies in order to potentially increase rents at the property. desirable locations demonstrate the market’s willingness to pay a premium for upgraded amenities and new or like-new interiors. Macon’s Downtown area is rapidly transforming as new housing, entertainment, and business options become available. Development areas such as Hill and demand drivers such as Mercer , Robins ROOM TO GROW RENTS: Current rents at Ashley Towers sit $680 (for 1BD) and $1,440 (for Air Force Base, GEICO, and Navicent Health Medical Center also have contributed to the area’s revitalized 2BD) below top-of-the-market rents, while rents at Ashley Towers have not increased in several economy, while local government and private business capital have joined forces to ensure the city’s projects years and occupancy remains at 100%. This current economic landscape provides new ownership a are seen through to completion. prime opportunity to potentially increase rents.

INCREASE NOI VIA VALUE-ADD OPPORTUNITIES: New ownership will have the potential to increase Net Operating Income at Ashley Towers by renovating the property’s interiors and upgrading the property’s existing amenity package. Lofts with similar locations in Macon, GA are achieving rents anywhere from $360 to $1,140 more than Ashley Towers.

PARTNERSHIPS TO REVITALIZE THE CITY: Macon is being transformed by multiple partnerships between Bibb County government, , and a variety of for-proft and non-proft organizations that are working to attract new businesses, create new housing & infrastructure, and revitalize the downtown area

CLOSE PROXIMITY TO MACON’S LARGEST DEMAND DRIVERS: Ashley Towers provides its tenants convenient access to some of the area’s largest demand drivers, including: • Mercer University - A with 8,600+ students enrolled, Mercer University has been an active partner in rebuilding Macon and is located just 1 mile from the property • Ashley Towers offers its tenants convenient access to some of the area’s largest employers, including (16,000 jobs), GEICO (5,200 jobs), and Navicent Health (4,600 jobs) • The Shoppes at River Crossing - 750,000 SF shopping center with over 80 retail stores anchored by Dillard’s and Belk

10 11 DOWNTOWN MACON’S APARTMENT DEMAND

Macon’s downtown and areas surrounding Mercer University have recently seen a resurgence in residential development focusing on loft apartments. Macon’s bustling economy supports the growth, as do the variety of people – ranging from millennials to empty nesters – looking for walkable, amenity-rich housing.

Four such lofts were built between 2012 and 2018 and are achieving 1BD rents up to $1,350 and 2BD rents up to $2,250. Two other properties in the area, Dannenberg Lofts and Broadway Lofts, were built over 100 years ago but have recently been renovated and are achieving signifcantly higher rents than Ashley Towers, providing a convincing value-add model for new ownership. It is important to note that many of these properties pay for some, if not all, of the tenant’s utilities.

These amenity-rich lofts in desirable locations demonstrate the market’s willingness to pay a premium for upgraded

amenities and new or like-new interiors. LOFTS WITH SIMILAR LOCATIONS IN MACON, GA ARE ACHIEVING RENTS ANYWHERE FROM

$360 TO $1,140 AMENITY-RICH LOFT HOUSING MORE C ACHIEVING SIGNIFICANT RENTS THAN ASHLEY TOWERS WASHINGTON Amenities found in one or more of these downtown lofts include PARK A Clubhouse, Secured Access, Swimming Pool, Garages, Cyber Cafe, Fitness Center, Granite Countertops, Washer/Dryers In-Unit, Roof-Top DOWNTOWN Terrace, Utilities Included. E D F New ownership of Ashley Towers can upgrade the unit’s interiors, add a new amenity such as a Roof-Top Terrace (pictured), and/or update the MEDICAL CENTER B NAVICENT HEALTH existing Fitness Center/Lounge Area in order to potentially add value to the property. G

MERCER UNIVERSITY

PROPERTY UNITS YR BUILT AVG 1BD DIFFERENCE AVG 2BD DIFFERENCE

ASHLEY TOWERS 60 1951 $660 $810

LOFTS AT CAPRICORN 137 2018 $1,255 $595 $1,735 $925

LOFTS AT COLLEGE HILL 144 2015 $1,250 $590 $1,675 $865

LOFTS AT NAVICENT HEALTH 60 2017 $1,295 $635 $1,950 $1,140

LOFTS AT 401 CHERRY 38 2012 $1,350 $690 $1,750 $940

DANNENBERG LOFTS 69 1890/R2013 $1,020 $360 $1,405 $595

BROADWAY LOFTS 94 1911/R2002 $1,050 $390 $1,250 $440 12 13 MACON: A CITY UNITING FOR PROGRESS

Macon is bustling with growth and urban development thanks to the efforts of the Bibb County government, Mercer University, and a variety of for-proft and non-proft organizations working to attract new businesses, create new housing & infrastructure, and revitalize the city.

Macon is growing rapidly thanks to the recent emergence of new housing, restaurants, bars, nightclubs, and businesses taking root on the main streets of Macon’s Central Business District. To ensure the development progress continues, VIEW FROM ASHLEY TOWERS ROOFTOP the county has embarked on a strategic plan, “Forward Together,” which incorporates both government and private business capital to reshape and revitalize Macon.

SECOND STREET COLLEGE HILL CORRIDOR This collection of neighborhoods This $13 million project is improving between Mercer University and an area from East Macon through Downtown Macon has received ASHLEY downtown to make much-needed national recognition for economic and TOWERS improvements and upgrades along community development initiatives. The Second Street. The project is an College Hill Master Plan, which initially expansive and long-term economic began as Mercer University students’ development and neighborhood MERCER senior capstone project, received $5 revitalization undertaking that includes UNIVERSITY million in grant funding and has since DOWNTOWN building a bridge to link West Macon been leveraged into nearly $200 million with downtown, a new park, additional In the past few years, Mercer University in economic development activity. MACON city green space, new bike lanes and has partnered with many of the city Additional development in the area Macon recently launched the Downtown existing bike path connectors, additional revitalization efforts to build a stronger includes The Lofts at Capricorn (a $19 Challenge, a $3 million three-year landscaping, improved sidewalks, Macon. Specifc development the million loft project) and Mercer Music at program to fund community-driven irrigation systems, and more. University has been involved with near Capricorn (a recently renovated $1.35 projects launched by the Community the campus includes a pedestrian million music venue). bridge over Mercer University Drive that Foundation of . Selected connects Mercer’s football stadium and projects that have been chosen consist the main campus, a series of mixed-use Macon of improved streetscapes, a Downtown buildings featuring ground-foor retail Venture Fund to provide funding to with student housing above, and Mercer entrepreneurs, an entrance gate to Landing (a building encompassing Ocmulgee Heritage Trail, and a theater offce and retail space, apartments for production on Macon’s music history. undergraduates, and a 95-room Marriott TownPlace Suites hotel).”

14 15 MARKET SUMMARY

MACON, THE HEART GEORGIA OF GEORGIA

With 152,555 residents, Macon is the 4th-largest city in Georgia. A part of the Macon-Warner Robins CSA, a total of 417,473 people live in the area. Nicknamed “The Heart of Georgia”, Macon is home to numerous historical sites & museums and boasts strong education, healthcare, agriculture, and defense industries. Macon is a center of commerce and culture in central Georgia, and recent job growth (1.4%) and home price increase (2.6%) demonstrate the steady and constant growth of the market.

With Mercer University, Middle , and all located within city limits, Macon is a hub of education in Central Georgia. Mercer, along with , , and , is one of the only schools in the state to crack US News & World Report’s list for top National . Mercer boasts a full array of & majors as well as a Division 1 athletics program. Middle Georgia State has ~8,000 students and ~700 employees, while Wesleyan College was the frst women’s college in the state of Georgia as well as the birthplace of the frst collegiate sororities. Healthcare is another strong suit of Macon. Navicent Medical Center is the #3 hospital in the state of Georgia according to US News & World Report and has over 600 licensed beds. Coliseum Medical Center, across the from Downtown Macon, also provides 300+ beds.

18 19 MARKET SUMMARY LIFESTYLE

Despite its size, there is plenty to do in and around Macon. The Museum of Aviation at Robins AFB is the largest tourist attraction in the state outside of . The Hay House downtown, the Allman Brothers Band EMPLOYMENT Museum, and Ocmulgee National Monument are all popular historic attractions. Amerson River Park, Ocmulgee The largest employer in the area, by far, is Robins Air Force Base, with 24,500 jobs on site (16,000 Heritage Trail, and Lake Tobesofkee provide outdoor activities. Athletics are also popular in Macon, as the city civilian jobs). Following Robins is GEICO (5,200), Navicent (4,600 employees), Coliseum Health is home to the Georgia Sports Hall of Fame. Mercer University participates in Division 1 athletics, while there Systems (1,400), Mercer (937), YKK Inc. (600), Ricoh USA (575), Georgia Farm Bureau Federation are also minor league hockey and teams in the area. The International Cherry Blossom Festival lasts (525), Manufacturing (518), Haeco Manufacturing (410), and Bass Pro Shops Distribution 10 days each March and brings visitors from around the country to Macon. Music fans have several venues in (400). Tractor Supply Company, Kohl’s, Ryder, and Trane Company also have facilities in Macon. the area, including (9,252 capacity), (2,688), and The Grand Opera According to Sperling’s Best Places, Job Growth in Macon is expected to hit 34.97% in the next House (2,418). 10 years.

34.97% EXPECTED JOB GROWTH IN THE NEXT 10 YEARS SPERLING’S BEST PLACES

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