| EXCLUSIVE MULTIFAMILY OFFERING DAVID OAKLEY Senior Vice President 205.918.0785 [email protected] DAVID ETCHISON Senior Associate 205.918.0785 [email protected] 5800 Eagle Circle | Montgomery, AL 36116 ROYCE EMERSON 392 Units | Built: 1986 | $15,000,000 Senior Associate 205.918.0785 [email protected] Attractive Double-Digit Cash-on-Cash Returns Superior Unit Mix and Amenities Value-Add Opportunity through Interior Upgrad Employment Growth Outpacing National Average For Real-Time Property Information go to: eaglelanding.hpapts.com DAVID OAKLEY Attractive Double-Digit Cash-on-Cash Returns Senior Vice President 205.918.0785 Superior Unit Mix and Amenities [email protected] DAVID ETCHISON Value-Add Opportunity through Interior Upgrad Senior Associate 205.918.0785 Employment Growth Outpacing National Average [email protected] ROYCE EMERSON Senior Associate 205.918.0785 [email protected] For Real-Time Property Information Scan QR code or go to: eaglelanding.hpapts.com Alabama Office 2120 16th Avenue South Suite 101 HENDRICKS & PARTNERS IS NOW HENDRICKS-BERKADIA Birmingham, Alabama 35205 To find out more visit HendricksBerkadia.com/merger Phone: 205.918.0785 Fax: 205.918.0786 hendricksberkadia.com apartmentupdate.com THE ASSET The Opportunity 1 Property Summary 3 Upgraded Units 5 Location Description 6 Location Map 8 Aerials 9 Floor Plans 12 Property Photos 13 VALUATION Financial Analysis 16 Notes to Pro Forma 23 MARKET POSITIONING Comparable Rental Properties 25 Comparable Sale Properties 30 APPENDIX Economic & Demographic Profile 32 Demographics 37 EAGLE LANDING eaglelanding.hpapts.com THE OPPORTUNITY Hendricks-Berkadia is pleased to announce the exclusive opportunity to acquire Eagle Landing, a 392-unit garden style apartment community in the rejuvenated Eastern submarket of Montgomery, Alabama. Investors have the opportunity to purchase a well-positioned multifamily asset that received over $1,500,000 in renovations in the past two years. This solid "B" quality community boasts an average floor plan size of 992 square feet with washer/dryer connections in every unit. With stabilizing operations and continuing the already proven value-add interior upgrade program, Eagle Landing is poised to experience strong rental demand and consistent future income growth. In a submarket dominated by 1970’s communities, Eagle Landing’s 1986 brick construction sets it apart as a premier asset among the competition. Eagle Landing, a gated and fenced community, in the heart in the thriving Eastern submarket of Montgomery, AL will continue to realize pent up demand from the strong work force housing. Positive Trending Property Operations – Eagle Landing has seen increases in occupation and rent collection in the Q1 of 2013. The positive trends are continuing and Eagle Landing is primed to see continued income growth. Superior Unit Mix – Eagle Landing has a marketable unit mix of one-, two- and three-bedroom units to accommodate a variety of household sizes. With a bigger variety of units than the competition, Eagle Landing will see continued organic rent growth. With the minor interior upgrades or property updates, Eagle Landing could also see further rent growth Year One. Exceptional Double-Digit Cash Yield - Investors can take advantage of attractive agency financing, and interest only debt options that are currently available. Based on the recent collections and the projected future earnings, Eagle Landing will deliver above average cash-on-cash returns to investors. Significant Value-Add Opportunity – Ability to increase rental income through interior unit upgrades such as hardwood flooring, new lighting packages, cabinet and hardware upgrades, and other minor cosmetic finishes. EAGLE LANDING 1 eaglelanding.hpapts.com THE OPPORTUNITY Close Proximity to Demand Drivers – Located in close proximity to downtown Montgomery, Alabama State Capital, the Hyundai Motor Manufacturing plant, Maxwell Air Force base, and other major employment - all with easy access to major interstates. Excellent Apartment Market Fundamentals Positive Rent Growth: For fiscal year 2013, fair market rents, as defined by the U.S. Department of Housing & Urban Development (HUD) ranged from $629 for efficiency units to $1,291 for four-bedroom units in the Montgomery MSA. Compared to five years earlier, fair market rents have risen by a range of 11.7% to 26.8%, depending on unit type. Sustainable Employment: Over the year ended in April of 2013, the Montgomery MSA recorded an employment gain of 1.3%, equating to the addition of 2,100 jobs. This marked the metro area’s strongest employment growth rate for any April since 2007. According to Moody’s, employment growth in Montgomery will rise to 2.7% in 2014 as a net total of 4,600 jobs are added to local payrolls. Constant Demand: From 1990 to 2013, the population of the Montgomery MSA rose from 305,175 to 383,358, an increase of 25.6%. By 2018, the area’s population is projected to rise to 397,969, up by an annual average of 0.75% over the next five years, compared to 0.68% nationally. The median age for the metro area is 36.2 years, with 21.3% of residents within the key renter demographic of 20 to 34 years of age, slightly above the national share of 20.6%. EAGLE LANDING 2 eaglelanding.hpapts.com PROPERTY SUMMARY Address 5800 Eagle Circle Montgomery, AL 36116 Number of Units 392 Total Year Built 1984-1986 Total Rentable Square Footage 388,800 Average Square Footage 992 Acreage +/- 23.16 Parking 690 Spaces 1.72 Spaces per Unit Number of Buildings 49, Two-Story Rental Buildings Structure Wood Frame Reinforced Concrete Roofs Pitched Asphalt/Fiberglass 20 Buildings Have New Roofs* (*within the last 18 months) Exterior Brick & Masonite Exterior Patio/Balconies Wood Decking / Concrete Unit Interiors Ceiling Fans in Select Units Washer/Dryer in Select Units Washer/Dryer Connections in All Units Balconies/Patios Vinyl and Carpet Flooring Fireplaces Walk-In Closets Central A/C Heating High Speed Internet Cable TV Available Kitchens Built-In Microwaves in Select Units Frost Free Refrigerators w/Ice Makers Electric Ovens/Stoves w/Vent Hood Dishwashers Garbage Disposal Stainless-Steel Sink Stained Walnut Cabinetry Bathrooms Vinyl Flooring Walnut Wood Cabinetry EAGLE LANDING 3 eaglelanding.hpapts.com PROPERTY SUMMARY Plumbing Copper & PVC Wiring Copper HVAC Central Heating & Air with Individual Exterior Ground-Mounted Units Community Amenities Multi-Functional Area-Basketball, Volleyball, Four Square, Etc. Business Center Onsite Three Swimming Pools Three Playgrounds Fitness Center Courtyard Clubhouse 392 Exterior Storage Units Gated / Controlled Access Public Transportation Freeway Access Schools Montgomery School District Brewbaker Elementary Brewbaker Intermediate Brewbaker Junior High School Brewbaker Tech Magnet High Utilities Utility/Service Provider Separately Metered Residents Pay Residents Reimburse Directly Property Electricity Alabama Power Yes Yes No Gas N/A No N/A N/A Water/Sewer Montgomery Water No No No Works Cable/Internet Knology & AT&T Yes Yes No Trash Advanced Disposal No No No EAGLE LANDING 4 eaglelanding.hpapts.com UPGRADED UNITS Eagle Landing has fully upgraded 50 units (13% of units) and STANDARD has leased upgraded units at an average $50 premium above the then-current effective street rents. Of the 392 units at Eagle Landing 280 have received partial or full renovations, bringing total interior renovation cost to $700,000. Fully upgraded interiors include new black appliances, vinyl flooring, counter top restoration, new cabinet doors, new lighting fixtures, and new carpet. Costs to implement the upgrade are approximately $2,950 per unit. With the recent completion of the comprehensive clubhouse / leasing office / amenity package upgrade, the property is now ideally positioned to accelerate the unit interior upgrade program and to get more aggressive on the premium charged for renovated units. RENOVATION COST SUMMARY Upgrades Average Cost Appliances $1,500 Fixtures/Hardware $250 UPGRADE Flooring $1,200 Total $2,950 The average upgraded unit rental premium achieved to date has been $50 in excess of the base rent for a non-upgraded unit of the same floor plan type. At $2,950/unit upgrade cost this premium generates a 20% ROI. Since the completion of the major renovations, the demand for the newly renovated interiors has increased significantly. EAGLE LANDING 5 eaglelanding.hpapts.com LOCATION DESCRIPTION Eagle Landing is located at 5800 Eagle Circle in Montgomery, AL, conveniently situated near U.S. Highway 80 and Interstate Highway 85, the major east-west freeway traversing Montgomery. Neighborhood shopping, services, and conveniences include Walmart, Target, Walgreens, CVS, Winn-Dixie, Publix, Texas Roadhouse, and Red Lobster. Additional retail and dining is located nearby at Eastdale Mall, a 964,717-square foot enclosed center anchored by Sears, Dillard’s, and JCPenney. This shopping destination currently hosts over 80 different retailers including Montgomery’s only ice skating rink. Also close by is The Shoppes at EastChase, a premier 400,000-square-foot lifestyle center as well as an additional 500,000-square-foot power center component featuring Dillards, Kohls, and Target. This newly built shopping venue features an impressive list of other national retailers such as Ann Taylor, Banana Republic, Williams-Sonoma, Cost Plus World Market, and Pier 1 Imports. Eagle Landing is strategically located to take advantage of the city’s major demand generators, many of which are within close proximity to