www.svnoakrealty.com Investment Highlights Exceptional unit mix great for long-term tenants; featuring large two- and three-bed units. The property is located within walking distance of the University of Arkansas – Little Rock (UALR), a university that has a student population of around 7,000. Extensive capital improvements inside and out. 6310 Colonel Glenn Dr. Average household income of $57,264 and a Little Rock, AR 72204 median age of 34 within a five-mile radius. SUBMISSIONS SVN OAK REALTY ADVISORS 4812 E. 81st St. Ste. 301 OAK REALTY ADVISORS Tulsa, OK 74137 OFFERING PROCEDURE Offers will be responded to upon receipt. Any initial offer should be submitted in the form of a non-binding letter dictating specific terms, including (1) purchase price, (2) amount of earnest money, (3) length of due diligence and (4) financing timeframe. Additionally, all offers must be accompanied with the purchasers’ qualifications to close the transaction. Raymond Lord | Sr. Managing Director Garrett Huie | Associate Advisor P. 918-201-2005 P. 918-201-2005 DISCLAIMER/CONFIDENTIALITY STATEMENT The material contained in the offering memorandum is confidential, furnished solely for the purpose of considering the acquisition of M. 918-850-1779 M. 918-557-6897 the property described herein, and is not to be used for any other purpose or made available to any other person without the express [email protected] [email protected] written consent of SVN Oak Realty Advisors. The information contained herein has been obtained from sources that we deem to be reliable, and we have no reason to doubt its accuracy. However, neither the seller, broker or any related entity make any warranty or representation, expressed or implied, as the accuracy or completeness of the information contained herein, included but not limited to, Benjamin Davis | Managing Director Jason Turner | Associate Advisor financial information and projections, and any engineering and environmental information. Prospective purchasers should make their P. 918-201-2005 P. 918-201-2005 own investigations, projections and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the property, including such engineering inspections as they deem necessary to determine the condition of the M. 918-740-6288 M. 918-284-1614 property and the existence or absence of any potential hazardous materials used in the construction or maintenance of the buildings or [email protected] [email protected] located at the land site, included but not limited to, lead-based products (for compliance with “target housing” regulation for multifamily housing constructed prior to 1978), asbestos, etc. Broker represents seller in this transaction and makes no representations, expressed or implied, as to the foregoing matters. All Sperry Van Ness® offices are independently owned and operated. SVN Oak Realty 2 TABLE OF CONTENTS Offering Summary 4 At-A-Glance | Area Map | Vicinity Map Property Description 8 Property Details | Amenities | Unit Mix Investment Summary 13 Investment Rationale | Capital Improvements Rental Comparables 16 Rent Comp Map | Rent Comp Summary | Rent Comp Ranking Sales Comparables 28 Sales Comp Map | Sales Comp Summary Demographics and Market Summary 31 Business Summary | Demographics and Market Highlights | Top Employers Marketing Team 37 Marketing Team SVN Oak Realty 3 OFFERING SUMMARY 6310 Colonel Glenn Dr. Little Rock, AR 72204 YEAR BUILT NUMBER OF UNITS TOTAL NET RENTABLE SF OCCUPANCY MARKET OCCUPANCY 1967/2020 141 130,322 95% 91.2% SVN Oak Realty 4 AT-A-GLANCE Location Review • The property is located off Colonel Glenn Drive, a high-traffic road located in Little Rock, Arkansas. • The University of Arkansas – Little Rock is located less than one mile from the property. • Little Rock is the headquarters of Dillard’s, Windstream Communications, Acxiom, Stephens Inc., University of Arkansas for Medical Sciences, Heifer International, Winrock International and the Clinton Foundation. Other corporations, such as Dassault Falcon Jet, LM Wind Power, Simmons Bank, Euronet Worldwide, AT&T, and Entergy have large operations in the city. • State government is a large employer, with many offices downtown. Two major Interstate highways, Interstate 30 and Interstate 40, meet in Little Rock, with the Port of Little Rock serving as a shipping hub. Key Factors • Recent capital improvements of over $1.4M have been invested in the property, which includes new roof, HVAC, flooring, and property sign and gate. • Average household income of $57,264 and a median age of 34 within a five-mile radius. • The overall community has received a large capital infusion during the current ownership addressing most of the major components from a construction and mechanical perspective. Conclusion • With the above considerations, Bradford Estates is an excellent opportunity for an investor looking to capitalize on a property that has a terrific combination of value-add potential and stability. SVN Oak Realty 5 AREA MAP 65 Kavanaugh Blvd. Reservoir Rd. 10 365 NORTH A r C k a a LITTLE ROCK n Cantrell Rd. n s t a E. 13th St. r s e ll R R i d v . e r T r a Evergreen Dr. il Allsopp park N. Mississippi St. 30 H St. AR K A NS N. Ro A dney S R Pa Kavanaugh Blvd. IV r ER ha Ca m ntre 70 ll R R S. University Ave. d. d. Lee Ave. W. Markham St. 10 N. Van Buren St. W. Markham St. 708 W. Markham St. W. 3rd St. RIVER N. Hughes St. MARKET W. 7th St. LITTLE ROCK 630 W. 7th St. Scott St. W. 12th St. Cumberland St. E. 9th St. W. 12th St. S. Battery St. k Rd. Par W. 14th St. le S. Pine St. 630 y o B Collge St. S. University Ave. Fair Park Blvd. S. Woodrow St. Boyle Park W. 28th St. Wright Ave. E. 17th St. John Barrow Rd. Barrow John S. Cedar St. 708 Asher Ave. Barber St. S. Chester St. Main St. 708 30 E. Roosevelt Rd. W. 36th St. 5 S. Arch St. 365 Doctor M.L.K., Jr. Dr. Doctor M.L.K., Jr. 708 Mabelvale Pkwy. Mabelvale 440 SVN Oak Realty 6 C a nt rel l Rd. Cantrell Rd. S. Pine St. Pine S. Fair Park Blvd. Park Fair W. 28th St. 708 VICINITYBoyle Park MAP . d R k r a N. University Ave. University N. P e l y o B Mabelvale Pkwy. Mabelvale W. 36th S t. 7 5 708 SVN Oak Realty PROPERTY DESCRIPTION SVN Oak Realty 8 PROPERTY DETAILS Construction Tenant Qualifications Exterior – Brick with siding Three-times income Roof – TPO 2015 – 2019 (with 15-year warranty) 12-month rental history Parking lot – Asphalt Employment verification Stories – 2 No prior judgments from previous landlords in the last five years Stairs – Steel with stone insert No prior evictions in the last five years (if on housing, approval if it was Landings – Concrete prior to being on housing and it was only for non-payment of rent) Background and credit to check for prior evictions and balances owed Mechanical to prior landlords as well as out-of-state background information Electrical – Individually metered Staffing Water – Each unit has separate gas hot water heater (approximately nine units have been converted to electric) Full-time property manager HVAC – Each unit has separate gas furnace and separate Part-time assistant leasing agent electric condensers for air Full-time maintenance worker Gas – One meter for complex Property porter Site Characteristics Number of acres – 7.37 Net development density – 19.13 Number of buildings – 17 County – Pulaski Parcel ID – 44L-128-01-005-00 Billing Electric – Owner Water – Owner Sewer – Owner Trash – Owner Gas – Owner SVN Oak Realty 9 UNIT MIX Unit Mix Detail Unit Rent Rates Type No Units Unit SF Total SF Average Rent Rent Per SF Monthly Annual 1 Bed/1 Bath 4 639 2,556 $678 $1.06 $2,712 $32,544 2 Bed /1 Bath 114 873 99,522 $635 $0.73 $72,390 $868,680 3 Bed/2.5 Bath 23 1,228 28,244 $857 $0.70 $19,711 $236,532 Total/Average 141 924 130,322 $672 $0.73 $94,813 $1,137,756 1 BED 3 BED 3% 16% 2 BED 81% SVN Oak Realty 10 AMENITIES COMMUNITY AMENITIES • New on-site laundry facility • Gated community • Central courtyard garden • On-site leasing office • Covered parking • Walking distance to University of Arkansas – Little Rock APARTMENT FEATURES • Modern gray interior paint with white accents • Tiled tub surrounds • Vinyl flooring* • Stainless refrigerators • Dishwasher • Gas oven range • Carpet stairs in townhome units *In some units. SVN Oak Realty 11 SVN Oak Realty 12 INVESTMENTINVESTMENT SUMMARY SUMMARY SVN Oak Realty 13 INVESTMENT RATIONALE ACTUAL AND PROFORMA FINANCIAL ANALYSIS INVESTMENT ANALYSIS INCOME 2020 T-2 Annualized Per Unit Per SF % of Gross Annual Per Unit Per SF % of Gross PURCHASE PRICE Gross Potential Income 1,137,756.00 $8,069.19 $8.73 100.00% $1,137,756 $8,069.19 $8.73 100.00% Less Vacancy $(99,066.42) $(702.60) $(0.76) -8.71% $(56,888) $(403.46) -$0.44 -5.00% $6,500,000.00 Less Concessions $- $- $- 0.00% $(14,222) $(100.86) -$0.11 -1.25% Cap Rate Total Rental Income $1,005,056.46 $7,128.06 $7.71 88.34% $1,066,646 $7,564.87 $8.18 93.75% 8.62% Economic Occupancy 88.34% 93.75% FINANCING Other Income $33,633.12 $238.53 $0.26 2.96% $42,666 $302.59 $0.33 3.75% Effective Gross Income $1,038,689.58 $7,366.59 $7.97 91.29% $1,109,312 $7,867.46 $8.51 97.50% Loan Amount $4,875,000.00 75% OPERATIONAL EXPENSES 2020 T-2 Annualized Per Unit Per SF % of Gross Annual Per Unit Per SF % of Gross Rate Administrative $41,547.58 $294.66 $0.32 4.00% $44,372 $314.70 $0.34 4.00% 2.90% Advertising $2,115.00 $15.00 $0.02 0.20% $24,000 $170.21 $0.18 2.16% Term / Amortization Contract Services $- $- $- 0.00% $32,000 $226.95 $0.25 2.88% 10 Year / 30 Year Payroll $109,465.80 $776.35 $0.84 10.54% $130,000 $921.99 $1.00