Portfolio of Properties in Eugene, Oregon Principal Broker Listing Broker Table of Contents Summary…………………………………………………………………………………………………………1 Portfolio Overview.………………………………………………………………………………………….2 Portfolio Financials…….…………………………………………………………………………………….3 Properties.……………………………………………………………………………………………………….5 Community Highlights…………………………………………………………………………………….19 Additional Information/Appendix…………………………………………………………………..24 Disclaimer………………………………………………………………………………………………………25 Summary Thank you for taking the time to explore this portfolio. We hope you find all the information you are seeking inside this package. However, we are always available should you want any clarification or to ask any questions. Property addresses and financials are being withheld for the time being but can be accessed with the execution of a non-disclosure agreement. In this document, you will find we have provided you an overview of the portfolio followed by key financial data. After you have dived into the financials, you will read about each property and some of the things that make it great. After you make it through the properties, you will read about our wonderful area of Eugene Oregon. We believe this offering is unique in many ways and the portfolio offers a diversified stream of revenues while the properties are also located in great rental areas in our community. The investor who owns these properties is disciplined when making purchases, so these were given much deliberation. You will find a blend of typical houses or single-family residences, duplexes and multifamily properties. Some of these properties are also commercially zoned but have been used as residences. The properties zoned commercially offer flexibility in their use. They have been used as residences but that does not always have to be the case. One can opt to redevelop the property and create a more suitable or desired commercial property and pursue commercial opportunities. Other properties are on adjacent tax lots that also allow for redevelopment opportunities. Two of the properties are on adjacent lots AND located inside one of the Opportunity Zones of Eugene. The Opportunity Zones were introduced by President Trump when he signed into law the Tax Cuts and Jobs Act of 2017. The zones offer tax advantages aimed at capital gains if invested in according to the Act. 1 The properties in this portfolio have been carefully selected over time by a disciplined investor and are clustered in areas that are consistently buzzing with renters and centrally located to local attractions. They generate steady cash flow due to superior management and low vacancy rates. The properties are in prime areas in Eugene, Oregon with one property located in a residential section of Springfield, Oregon. The properties make fantastic rentals in a college town and all the properties are close to the University of Oregon and other prominent amenities located in Eugene. Below is a map that displays a portion of the Eugene/Springfield area. The markers on the map highlight the properties and/or important locations in the community. All the properties offer easy access to the University of Oregon and other major attractions. Portfolio Highlights Price $5.8 Million Current = $368,273 Cash Flow Pro Forma = $392,760 # of Properties 14 # of Units 29 Mix of houses, duplexes, Style and multi-family properties Current = 4.66% Cap Rate Pro Forma = 5.01% 2 Legend Red Marker = Portfolio Property Green Marker = University of Oregon Purple Marker = Matthew Knight Arena Blue Marker = Autzen Stadium Yellow Marker = South Eugene High School Pricing Summary Property Description Price $5,800,000 Property Address: Undisclosed Price per Unit $200,000 Zoning: Residential, Multifamily, Commercial Useage: Rentals No. of Properties: 14 No. of Units: 29 Value Indicators Current Pro Forma Scheduled Gross Income: $368,273 100.0% $392,760 100.0% Less Vacancy Loss: $18,414 5.0% $19,638 5.0% Effective Gross Income: $349,859 95.0% $373,122 95.0% Less Property Taxes: $35,324 9.6% $35,324 9.0% Less Management: $25,779 7.0% $27,493 7.0% Less Operating Expenses: $18,414 5.0% $19,638 5.0% Net Operating Income: $270,343 73.4% $290,667 74.0% Current GRM: 15.75 Pro Forma GRM: 14.77 Current Cap Rate: 4.66% Pro Forma Cap Rate: 5.01% 3 Address Property Type Zoning Units Bed/Bath Additional Details Lease Type Utilities Current Rent Pro Forma 577 Madison St Duplex C2 2 2+1, 2+1 Leased Water $1,667 $1,675 561 Madison St Duplex C2 2 2+1, 2+1 Leased Water $1,645 $1,670 511 & 539 Madison Multifamily R2 3 2+1, 1+1, Studio SFR and Duplex Leased Water $2,440 $2,440 2+1, 1+1, 1+1, 1+1, 527 Monroe St Multifamily R3 6 Leased Water $4,535 $4,610 1+1, 1+1, Studio 490 W 4th Ave Duplex C2 2 2+1, 2+1 Opportunity Zone Leased Water $1,635 $1,635 427 Washington St Multifamily C2 3 2+1, 1+1, 1+1 Opportunity Zone Leased Water $2,047 $2,375 1079 W 5th Ave SFR R1 1 4+1.5 Leased Tenant $1,695 $1,695 745 Polk St SFR C2 1 2+1 Leased Tenant $1,195 $1,195 90 N Grand SFR R1 1 3+2 Leased Tenant $1,440 $1,450 270 E 16th Ave SFR GO 1 4+1 AirBnB Rental AirBnB Utilities (Now) $2,250 $2,500 One unit is an AirBnB Rental. One 2 leased, 1 AirBnB, Water for building, 950 Patterson St Multifamily C2 4 4+1, 4+1, 2+1, 1+1 4-bed unit is going to be rented by $6,100 $7,325 1 advertised utilities for AirBnB the room & furnished 35 W 30th SFR R1 1 2+1 Leased Tenant $1,440 $1,440 830 W 28th Ave SFR R1 1 3+1 Leased Tenant $1,275 $1,395 672 Janus St SFR R1 1 3+2 Leased Tenant $1,325 $1,325 29 Scheduled Rental Income (Monthly) $30,689 $32,730 Scheduled Rental Income (Annually) $368,273 $392,760 As mentioned before, this portfolio generates a steady, consistent, and diversified stream of rents. The properties experience low vacancy rates and have excellent management in place. Two units have recently been converted to Airbnb rentals. Another 4-bedroom unit is currently furnished and is being leased by the room. Previous tenants had paid $1,800/month to occupy the entire unit and is currently being advertised for rent as of 11/09/2018. Two of the properties located in the Whiteaker neighborhood are within the newly defined Opportunity Zone and offer their own tax advantages and savings. The two properties are located on adjacent lots and offer redevelopment opportunities. 4 Property 1 – 577 Madison St, Eugene, OR 97402 The property is commercially zoned duplex with 2-bedroom, 1 bath units that rent for $925 and $750 each month. This property (like many in this portfolio) is in the Whiteaker neighborhood, which is home to many of Eugene’s breweries. The Whiteaker area offers ample nightlife, great restaurants, and a vibrant lifestyle, making it one of the hottest areas in Eugene. The property also sits directly adjacent to another in the portfolio with no setback restrictions and has a maximum building height of 120 feet. 5 Property 2 – 561 Madison St, Eugene, OR 97402 This property is a duplex that consists of two 2-bedroom, 1 bath units that rents for $895 and $775 per month. It’s another property in the Whiteaker and on the same street as the two other properties in this portfolio. Close to the vibrant nightlife, restaurants, and breweries in the Whiteaker neighborhood. 6 Property 3 – 511 & 539 Madison St, Eugene, OR 97402 This is a multifamily property consisting of one house which has 2 bedrooms and 1 bathroom, and a duplex consisting of a 1 bedroom, 1 bath unit and a studio unit. The rents per month are $960, $775, and $705, respectively. The property is in the Whiteaker neighborhood and is on the same street as two others in this portfolio. 7 Property 4 – 527 Monroe St, Eugene, OR 97402 This property is 6-unit apartment complex and sits on the edge of downtown and the Whiteaker. The complex has one two-bedroom unit, four 1-bedroom units, and one studio unit. The individual unit rents are $805, $795, $775, $760, $750, and $750 per month. The property is also tucked behind the Beergarden, which is a unique beer/restaurant like place that really captures the Eugene and Whiteaker lifestyle. There is a full menu of beers and ciders and a secluded and covered eating area outside where 6 of Eugene’s best food carts operate. The establishment also has live music throughout the year. 8 Property 5 – 490 W 4th Ave, Eugene, OR 97402 The property is a duplex consisting of two 2-bedroom, 1 bath units that rent for $885 and $750. This property is in the Opportunity Zone of Eugene and a property on the adjacent lot is also included in this portfolio sale, which gives it redevelopment and tax savings opportunities. 9 Property 6 – 427 Washington St, Eugene, OR 97401 This property is a multifamily property consisting of one 2-bedroom, 1 bath unit and two 1-bedroom, 1 bath units. The units rent for $900, $750, and $725, respectively. This property is in the Opportunity Zone of Eugene and a property on the adjacent lot is also included in this portfolio sale, which gives it redevelopment and tax savings opportunities. 10 Property 7 – 1079 W 5th Ave, Eugene, OR 97402 This property is a fully renovated 4-bedroom, 1.5 bath house that rents for $1,695/month. It is also centrally located in the Whiteaker in the neighborhood.