6 Complete OM - Cape Landing
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Transcript of 6 Complete OM - Cape Landing
CAPE LANDING 288 RESIDENTIAL UNITS MYRTLE BEACH SC
(PHASE II POTENTIAL 886 ACRES 126 UNITS)
Cushman amp Wakefield is excited to present the exclusive listing of the 288-unit 1998-built Cape Landing apartments nestled next to the rapidly growing Market Common District in Myrtle Beach SC Located in a strong market with solid rent fundamentals Cape Landing offers a superior value-add opportunity in addition to the ability to build a 126-unit Phase II The property is also located in a well-established neighborhood offering an outstanding school system and high-end retail
INVESTMENT OFFERING
INVESTMENT SUMMARY
Address 3851 Cape Landing Drive
Myrtle Beach SC 29588
County Horry County
Site Size 298 Acres
Year Built 1998
Residential Units 288 Units
Net Residential Area 268632 SF
Avg Unit Size 933 SF
Avg Market Rent $870
Avg Market RentSF $096
Occupancy 97
As of 07132016 Includes 886 acres entitled for additional 126 units
TOUR DATESProperty Tours are to be scheduled Tuesdays through Thursdays directly with Brokers 72 hours in advance
DATA ACCESS
Historical Financial and Property
information is available at
multifamilycushwakecom
OFFERING PROCESS
Send offers via email to
WATSON BRYANT
watsonbryantcushwakecom
Offers should be in the form of
a Letter of Intent (LOI) and at
minimum include Price Earnest
Money Due Diligence Time
Period and Closing Period
CUSHMAN amp WAKEFIELD
440 S Church Street Suite 250 Charlotte NC 28202Phone 7049167151Fax 7048370590multifamilycushwakecom
AtlanticOcean
Gree
n Se
a Rd
S
Elm St
Pee D
ee R
d S
Choppee Rd
Pee Dee Hwy
Brunson Spring Rd
Cultra Rd
Broad St
N Kings Hwy
S Kings Hwy
Ocea
n Hwy
N Fr
aser
St
Veterans Hwy
Carolina Bays Pkwy
Waccamaw NationalWildlife Refuge
Broadway atthe Beach
Myrtle BeachIntrsquol Airport
TangerOutlet
Coastal GrandMall
CoastalCentre
Myrtle BeachMall
TangerOutlet
GardenCity
Loris
Socastee
Conway
SurfsideBeach
Murrel lsInlet
Forestbrook
RedHil l
Briarcl i f feAcres
AtlanticBeach
Litt le River
North MyrtleBeach
Bucksport
Aynor
MyrtleBeach
378
701
501
17
17
701
701
50122
908
51
9
9
905
905
90
544
707
90
31
31
904
261
410
319
22
BUS17
9
BRANDON WHITESELL
Vice Chair4048535200brandonwhitesellcushwakecom
CO-LEAD
WATSON BRYANT
Managing Director7049167157
watsonbryantcushwakecom
MARC ROBINSON
Vice Chair7049167152marcrobinsoncushwakecom
CO-LEAD
ALEX BROWN
Associate Director4048535274alexbrowncushwakecom
JORDAN MCCARLEY
Executive Managing Director7049167151jordanmccarleycushwakecom
PAUL MARLEY
Senior Associate 7049167158paulmarleycushwakecom
JUSTIN VAN LEUVAN
Brokerage Associate6786872167justinvanleuvancushwakecom
TELLY FATHALY
Senior DirectorEquity Debt amp Structured Finance4048535280tellyfathalycushwakecom
TABLE OF CONTENTS
EXECUTIVE SUMMARY PG 1
PROPERTY DESCRIPTION PG 13
AREA OVERVIEW PG 26
APARTMENT MARKET PG 32
FINANCIAL ANALYSIS PG 43
1 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
1 The area is witnessing a surge in single-family development with
8 new developments (1000 units) currently under construction with prices ranging from $200000 to $380000
2 Myrtle Beach is forecasted to post 12 rent growth through
2020 as population growth (over 71000) is expected to vastly outpace the current multifamily pipeline of just 581 units
3 Cape Landing is located in a highly desirable
community with an award winning school system and the most popular Myrtle Beach retail destinations within a three-mile drive
4 Cape Landing offers market supported value-add (competitors obtaining $64 to $90 premiums) in addition to the opportunity to build a 126-unit second phase
5 Total employment is expected
to grow by more than 27000 through 2020 as Average HHIrsquos are expected to rise to $93622
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
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刀䔀吀䄀䤀䰀
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䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
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伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
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夀 㜀
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
Cushman amp Wakefield is excited to present the exclusive listing of the 288-unit 1998-built Cape Landing apartments nestled next to the rapidly growing Market Common District in Myrtle Beach SC Located in a strong market with solid rent fundamentals Cape Landing offers a superior value-add opportunity in addition to the ability to build a 126-unit Phase II The property is also located in a well-established neighborhood offering an outstanding school system and high-end retail
INVESTMENT OFFERING
INVESTMENT SUMMARY
Address 3851 Cape Landing Drive
Myrtle Beach SC 29588
County Horry County
Site Size 298 Acres
Year Built 1998
Residential Units 288 Units
Net Residential Area 268632 SF
Avg Unit Size 933 SF
Avg Market Rent $870
Avg Market RentSF $096
Occupancy 97
As of 07132016 Includes 886 acres entitled for additional 126 units
TOUR DATESProperty Tours are to be scheduled Tuesdays through Thursdays directly with Brokers 72 hours in advance
DATA ACCESS
Historical Financial and Property
information is available at
multifamilycushwakecom
OFFERING PROCESS
Send offers via email to
WATSON BRYANT
watsonbryantcushwakecom
Offers should be in the form of
a Letter of Intent (LOI) and at
minimum include Price Earnest
Money Due Diligence Time
Period and Closing Period
CUSHMAN amp WAKEFIELD
440 S Church Street Suite 250 Charlotte NC 28202Phone 7049167151Fax 7048370590multifamilycushwakecom
AtlanticOcean
Gree
n Se
a Rd
S
Elm St
Pee D
ee R
d S
Choppee Rd
Pee Dee Hwy
Brunson Spring Rd
Cultra Rd
Broad St
N Kings Hwy
S Kings Hwy
Ocea
n Hwy
N Fr
aser
St
Veterans Hwy
Carolina Bays Pkwy
Waccamaw NationalWildlife Refuge
Broadway atthe Beach
Myrtle BeachIntrsquol Airport
TangerOutlet
Coastal GrandMall
CoastalCentre
Myrtle BeachMall
TangerOutlet
GardenCity
Loris
Socastee
Conway
SurfsideBeach
Murrel lsInlet
Forestbrook
RedHil l
Briarcl i f feAcres
AtlanticBeach
Litt le River
North MyrtleBeach
Bucksport
Aynor
MyrtleBeach
378
701
501
17
17
701
701
50122
908
51
9
9
905
905
90
544
707
90
31
31
904
261
410
319
22
BUS17
9
BRANDON WHITESELL
Vice Chair4048535200brandonwhitesellcushwakecom
CO-LEAD
WATSON BRYANT
Managing Director7049167157
watsonbryantcushwakecom
MARC ROBINSON
Vice Chair7049167152marcrobinsoncushwakecom
CO-LEAD
ALEX BROWN
Associate Director4048535274alexbrowncushwakecom
JORDAN MCCARLEY
Executive Managing Director7049167151jordanmccarleycushwakecom
PAUL MARLEY
Senior Associate 7049167158paulmarleycushwakecom
JUSTIN VAN LEUVAN
Brokerage Associate6786872167justinvanleuvancushwakecom
TELLY FATHALY
Senior DirectorEquity Debt amp Structured Finance4048535280tellyfathalycushwakecom
TABLE OF CONTENTS
EXECUTIVE SUMMARY PG 1
PROPERTY DESCRIPTION PG 13
AREA OVERVIEW PG 26
APARTMENT MARKET PG 32
FINANCIAL ANALYSIS PG 43
1 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
1 The area is witnessing a surge in single-family development with
8 new developments (1000 units) currently under construction with prices ranging from $200000 to $380000
2 Myrtle Beach is forecasted to post 12 rent growth through
2020 as population growth (over 71000) is expected to vastly outpace the current multifamily pipeline of just 581 units
3 Cape Landing is located in a highly desirable
community with an award winning school system and the most popular Myrtle Beach retail destinations within a three-mile drive
4 Cape Landing offers market supported value-add (competitors obtaining $64 to $90 premiums) in addition to the opportunity to build a 126-unit second phase
5 Total employment is expected
to grow by more than 27000 through 2020 as Average HHIrsquos are expected to rise to $93622
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
TOUR DATESProperty Tours are to be scheduled Tuesdays through Thursdays directly with Brokers 72 hours in advance
DATA ACCESS
Historical Financial and Property
information is available at
multifamilycushwakecom
OFFERING PROCESS
Send offers via email to
WATSON BRYANT
watsonbryantcushwakecom
Offers should be in the form of
a Letter of Intent (LOI) and at
minimum include Price Earnest
Money Due Diligence Time
Period and Closing Period
CUSHMAN amp WAKEFIELD
440 S Church Street Suite 250 Charlotte NC 28202Phone 7049167151Fax 7048370590multifamilycushwakecom
AtlanticOcean
Gree
n Se
a Rd
S
Elm St
Pee D
ee R
d S
Choppee Rd
Pee Dee Hwy
Brunson Spring Rd
Cultra Rd
Broad St
N Kings Hwy
S Kings Hwy
Ocea
n Hwy
N Fr
aser
St
Veterans Hwy
Carolina Bays Pkwy
Waccamaw NationalWildlife Refuge
Broadway atthe Beach
Myrtle BeachIntrsquol Airport
TangerOutlet
Coastal GrandMall
CoastalCentre
Myrtle BeachMall
TangerOutlet
GardenCity
Loris
Socastee
Conway
SurfsideBeach
Murrel lsInlet
Forestbrook
RedHil l
Briarcl i f feAcres
AtlanticBeach
Litt le River
North MyrtleBeach
Bucksport
Aynor
MyrtleBeach
378
701
501
17
17
701
701
50122
908
51
9
9
905
905
90
544
707
90
31
31
904
261
410
319
22
BUS17
9
BRANDON WHITESELL
Vice Chair4048535200brandonwhitesellcushwakecom
CO-LEAD
WATSON BRYANT
Managing Director7049167157
watsonbryantcushwakecom
MARC ROBINSON
Vice Chair7049167152marcrobinsoncushwakecom
CO-LEAD
ALEX BROWN
Associate Director4048535274alexbrowncushwakecom
JORDAN MCCARLEY
Executive Managing Director7049167151jordanmccarleycushwakecom
PAUL MARLEY
Senior Associate 7049167158paulmarleycushwakecom
JUSTIN VAN LEUVAN
Brokerage Associate6786872167justinvanleuvancushwakecom
TELLY FATHALY
Senior DirectorEquity Debt amp Structured Finance4048535280tellyfathalycushwakecom
TABLE OF CONTENTS
EXECUTIVE SUMMARY PG 1
PROPERTY DESCRIPTION PG 13
AREA OVERVIEW PG 26
APARTMENT MARKET PG 32
FINANCIAL ANALYSIS PG 43
1 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
1 The area is witnessing a surge in single-family development with
8 new developments (1000 units) currently under construction with prices ranging from $200000 to $380000
2 Myrtle Beach is forecasted to post 12 rent growth through
2020 as population growth (over 71000) is expected to vastly outpace the current multifamily pipeline of just 581 units
3 Cape Landing is located in a highly desirable
community with an award winning school system and the most popular Myrtle Beach retail destinations within a three-mile drive
4 Cape Landing offers market supported value-add (competitors obtaining $64 to $90 premiums) in addition to the opportunity to build a 126-unit second phase
5 Total employment is expected
to grow by more than 27000 through 2020 as Average HHIrsquos are expected to rise to $93622
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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䈀
䄀䌀
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䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
TABLE OF CONTENTS
EXECUTIVE SUMMARY PG 1
PROPERTY DESCRIPTION PG 13
AREA OVERVIEW PG 26
APARTMENT MARKET PG 32
FINANCIAL ANALYSIS PG 43
1 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
1 The area is witnessing a surge in single-family development with
8 new developments (1000 units) currently under construction with prices ranging from $200000 to $380000
2 Myrtle Beach is forecasted to post 12 rent growth through
2020 as population growth (over 71000) is expected to vastly outpace the current multifamily pipeline of just 581 units
3 Cape Landing is located in a highly desirable
community with an award winning school system and the most popular Myrtle Beach retail destinations within a three-mile drive
4 Cape Landing offers market supported value-add (competitors obtaining $64 to $90 premiums) in addition to the opportunity to build a 126-unit second phase
5 Total employment is expected
to grow by more than 27000 through 2020 as Average HHIrsquos are expected to rise to $93622
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
1 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS
1 The area is witnessing a surge in single-family development with
8 new developments (1000 units) currently under construction with prices ranging from $200000 to $380000
2 Myrtle Beach is forecasted to post 12 rent growth through
2020 as population growth (over 71000) is expected to vastly outpace the current multifamily pipeline of just 581 units
3 Cape Landing is located in a highly desirable
community with an award winning school system and the most popular Myrtle Beach retail destinations within a three-mile drive
4 Cape Landing offers market supported value-add (competitors obtaining $64 to $90 premiums) in addition to the opportunity to build a 126-unit second phase
5 Total employment is expected
to grow by more than 27000 through 2020 as Average HHIrsquos are expected to rise to $93622
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 2
EXECUTIVE SUMMARY | CAPE LANDING
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
3 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
THE MARKET COMMON
bull Located adjacent to the Market Common District which is anchored by the 114-acre Market Common development
bull The Market Common is a mixed-use lifestyle center featuring 43 high-end retail shops and 11 restaurants
bull The Market Common has served as a catalyst for new residential growth in the area
bull There are 8 new residential developments in various stages of construction with homes ranging from the $200rsquos to the $380rsquos
LOCATED IN THE PATH OF HIGH END RESIDENTIAL DEVELOPMENT
NEW RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION
COMMUNITY OF UNITS HOME VALUES
1 Cresswind 400 From mid $200000rsquos
2 The Reserve at Market Common 108 From $216000
3 Emmens Preserve Montrose West 35 $200000rsquos to $280000rsquos
4 Highlands Withers Preserve 80 $200000rsquos to $300rsquo000rsquos
5 Sanctuary Withers Preserve 74 $200000 to $380000
6 Estates at Withers Preserve 100 From $299000
7 Balmoral Market Common 100 From $332000
8 Monarch Estates at Emmens Preserve 100 From $200000
TOTAL 997 Units NA
Estimated number of units
17
CAPE LANDING
THE COMMON MARKET
12
8
76
5
3
4
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
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SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 4
EXECUTIVE SUMMARY | CAPE LANDING
LOCATED IN THE PATH OF HIGH-END RESIDENTIAL DEVELOPMENT
NEARBY DEVELOPMENT - MARKET COMMON
The Market Common a 114-acre lifestyle center is located less than 2 miles from Cape Landing The Market Common is a place where you can experience exceptional shopping and dining in a beautifully-designed village setting From the nationrsquos most celebrated names in retail
to ice cream and pizza for the kids and from one-of-a-kind restaurants to the most comfortable movie theater at the beach The Market Common is a true area destination
- E V E N T S - - S H O P - - D I N E - - L I V E -
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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㜀㠀
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㜀㘀
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䈀
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䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䠀圀
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䐀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
5 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
AVERAGE HHI EXPECTING 19 GROWTH
Population job growth and household formation are expected to vastly outpace multifamily supply additions The muted multifamily supply pipeline includes just 581 new market rate units with 276 units currently under construction and 305 units in the planning process
The muted supply pales in comparison to the expected population growth Between Q1-2016 and 2020 the Myrtle Beach market is forecasted to add 71510 new residents 27510 new jobs and 35760 new households In addition Average HHI is expected to rise from $78870 to $93622 ndash a 19 growth
As a result average asking rent is expected to continue its upward trajectory Average asking rent in Myrtle Beach has risen every year since 2010 and is expected to rise an additional 12 through 2020
00
20
40
60
80
100
120
140
160
$700
$750
$800
$850
$900
$950
$1000
Vacan
cy
Avg
Ask
ing
Re
nt
Avg Asking Rent Vacancy
EXCELLENT FUNDAMENTALS TO SUPPORT STRONG RENT GROWTH
RENT GROWTH
0
200
400
600
800
1000
1200
1400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Un
its
De
live
red
MYRTLE BEACH PIPELINE
12 Rent growth through 2020
581 Units under construction or planned
27510 new jobs by 2020
vs
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 6
EXECUTIVE SUMMARY | CAPE LANDING
HIGHLY RANKED ASSIGNED SCHOOLS
bull Located in an award winning school system with 41 area schools recently receiving a Palmetto Gold or Silver Award
bull The assigned schools are all highly ranked on GreatSchoolsorg with both the Elementary and Middle Schools receiving a 910 star ranking
bull Located within close proximity of upscale retail centers including Market Common Coastal Grand Mall and Tanger Outlets
bull The popular 220-acre Grand Park is a multi-million dollar sports facility with 7 multipurpose fields 2 youth fields a 6-tunnel batting cage and 3 towers for concessions and restrooms
EXCELLENT SCHOOL SYSTEM amp UPSCALE SHOPPING
LAKEWOOD ELEMENTARY
SOCASTEE HIGH
FORESTBROOK MIDDLE
Lakewood ElementaryForestbrook MiddleSocastee High
THE MARKET COMMON amp GRAND PARK SITE PLAN
THE MARKET COMMON
GRAND PARK
GRAND PARK COMPLEX
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
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夀 㜀
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䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
7 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NEARBY RETAIL CENTERS
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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㜀㠀
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㜀㘀
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䈀
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䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䠀圀
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䐀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 8
EXECUTIVE SUMMARY | CAPE LANDING
ADDITIONAL RENT GROWTH
Cape Landing offers significant value-add upside substantiated by the market with additional high-end competition providing an additional rent growth runway
bull Value-add submarket competitors are achieving premiums between $64 and $90 for their upgraded units
VALUE-ADD COMPETITORS
FLINTLAKE CLAYPOND COMMONS
Premiums on Upgraded Units
$90 $64
Upgrade Finishes bull Stainless Steel Appliances
bull Faux-Wood Flooring
bull New Lighting Packages
bull New Plumbing Fixtures
bull New Cabinetry
bull New Carpet
bull Black Appliances
bull Faux-Wood Flooring
bull Refinished Countertops
bull New Lighting Packages
bull Two-Tone Paint
SIGNIFICANT VALUE-ADD UPSIDE
FLINTLAKEINTERIOR UPGRADES
CLAYPOND COMMONSINTERIOR UPGRADES
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
9 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
$874
$998 $1003
$1047
$1076
$1209
$700
$800
$900
$1000
$1100
$1200
$1300
Cape Landing(1998)
SubmarketAverage (2004)
Alta Surf (2007) Latitude at theCommons
(2009)
Waterleaf atPalmetto Pointe
(2015)
Residences atthe Market
Common (2009)
126-UNIT PHASE II OPPORTUNITY
DELTA TO A+ COMPETITION - ORGANIC RENT GROWTH RUNWAY
$124 below submarket average
$129 to $335 below top-of-the-line competition
PHASE II(886 ACRES ENTITLED FOR AN ADDITIONAL
126 UNITS)
PHASE I
PHASE II
886 ACRES FOR ADDITIONAL UNITS
Cape Landing offers an additional value creation opportunity with the possibility of developing a second phase The investment opportunity includes 886 acres of adjacent land entitled for an additional 126 units
bull New high-end competitors are achieving average rents between $129 and $335 higher than Cape Landing
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
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SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 10
EXECUTIVE SUMMARY | CAPE LANDING
BOOMING amp DIVERSIFIED MYRTLE BEACH ECONOMY
130000
140000
150000
160000
170000
180000
190000
200000
$65000
$70000
$75000
$80000
$85000
$90000
$95000
$100000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(P)
2018(P)
2019(P)
2020(P)
To
tal E
mp
loym
en
t
Ave
rag
e H
ou
seh
old
Inco
me
Avg Household Income Total Employment
RAPIDLY EXPANDING ECONOMY BECOMING INCREASINGLY DIVERSIFIED
bull A huge increase in the number of retirees is driving job
gains in the healthcare industry which is projected to
grow at twice the national rate over the next decade
bull Tourism employment has rebounded the number of
tourists has risen 25 since 2009
bull Overall population gains are projected to be three
times higher than the national average through 2020
bull Average household Income is expected to increase
from $78870 in 2016 to $93622 by 2020 an increase
of 19
bull Anchor industry Leisure and Hospitality comprises 25
of total employment with Healthcare burgeoning
bull Total employment has benefited as well with more
than 27000 new jobs to be added by 2020
MYRTLE BEACH AVG HOUSEHOLD INCOME VS TOTAL EMPLOYMENT
00
05
10
15
20
25
30
35
40
YO
Y P
op
ulat
ion
Gro
wth
20
14-1
5SOUTHEAST POPULATION GROWTH 2014-15
2ND FASTEST GROWING MSA IN THE NATION
27510projected new jobs
to be added by 2020
19projected increase in average household income by 2020
For the second year in a row the Myrtle Beach MSA is the second fastest growing metro area in the nation From July 2014-2015 the population increased 35
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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夀 㜀
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
11 | OFFERING MEMORANDUM
CAPE LANDING | EXECUTIVE SUMMARY
NORTHWEST VIEW
䈀爀漀愀搀眀愀礀 愀琀 琀栀攀 䈀攀愀挀栀 刀椀瀀氀攀礀猀 䄀焀甀愀爀椀甀洀Ⰰ 䨀漀攀猀 䌀爀愀戀 匀栀愀挀欀Ⰰ 䴀愀爀最愀爀椀琀愀瘀椀氀氀攀Ⰰ 圀攀琀 圀椀氀氀椀攀猀Ⰰ 匀甀渀最氀愀猀猀 䠀甀琀 㐀 䌀嘀匀 倀栀愀爀洀愀挀礀 㔀 圀愀氀洀愀爀琀 一攀椀最栀戀漀爀栀漀漀搀 䴀愀爀 䴀愀爀欀攀琀 㐀㘀Ⰰ㔀㘀㐀 匀䘀⤀
吀栀攀 䴀愀爀欀攀琀 䌀漀洀洀漀渀 㐀 䄀爀挀攀猀⤀ 倀漀琀琀攀爀礀 䈀愀爀渀Ⰰ 吀漀洀洀礀 䈀愀栀愀洀愀Ⰰ 倀䘀 䌀栀愀渀最猀Ⰰ 䄀渀琀栀爀漀瀀漀氀漀最椀攀Ⰰ 吀甀瀀攀氀漀 䠀漀渀攀礀 䌀愀昀攀Ⰰ 䈀愀爀渀攀猀 一漀戀氀攀 䌀漀愀猀琀愀氀 䜀爀愀渀搀 䴀愀氀氀 䈀攀氀欀Ⰰ 伀氀搀 一愀瘀礀Ⰰ 䌀栀椀挀欀ⴀ昀椀氀ⴀ䄀Ⰰ 䐀椀氀氀愀爀搀猀Ⰰ 䨀䌀 䨀䌀倀攀渀渀攀礀Ⰰ 䠀漀洀攀䜀漀漀搀猀Ⰰ 䨀漀猀 䄀 䈀愀渀欀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䠀漀洀攀 䐀攀瀀漀琀Ⰰ 唀䰀吀䄀Ⰰ 䰀漀昀琀
刀䔀吀䄀䤀䰀
㘀 䠀漀爀爀礀 䜀攀漀爀最攀琀漀眀渀 吀攀挀栀渀椀挀愀氀 䌀漀氀氀攀最攀㜀 倀愀氀洀攀琀琀漀 匀挀栀漀漀氀 漀昀 䰀攀愀爀渀椀渀最 愀渀搀 匀甀挀挀攀猀猀
䔀䐀唀䌀䄀吀䤀伀一
㠀 䴀礀爀琀氀攀 䈀攀愀挀栀 䤀渀琀攀爀渀愀琀椀漀渀愀氀 䄀椀爀瀀漀爀琀 㤀 䜀爀愀渀搀 倀愀爀欀 刀攀挀爀攀愀琀椀漀渀愀氀 䌀漀洀瀀氀攀砀 圀漀爀氀搀 吀漀甀爀 䜀漀氀昀 䰀椀渀欀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
圀䈀吀嘀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
Ⰰ 一䔀圀 䠀伀䴀䔀匀 䬀 ⴀ 㠀 䬀
吀䄀一䜀䔀刀 伀唀吀䰀䔀吀匀㔀 䴀䤀 䘀刀伀䴀 匀唀䈀䨀䔀䌀吀
㐀
㔀㘀
㜀 㠀
㤀
匀漀挀愀猀琀
攀攀 䈀
氀瘀搀
䤀渀琀爀愀挀漀愀猀琀愀氀 圀愀琀攀爀眀愀礀
倀愀氀洀
攀琀琀
漀 倀
漀椀渀
琀攀 䈀
氀瘀搀
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
匀愀礀攀䈀爀漀漀欀 吀漀眀渀 䌀攀渀琀攀爀 吀愀爀最攀琀Ⰰ 䴀愀爀猀栀愀氀氀猀Ⰰ 倀攀琀挀漀Ⰰ 唀䰀吀䄀Ⰰ 刀愀挀欀 刀漀漀洀 匀栀漀攀猀Ⰰ 匀琀愀爀戀甀挀欀猀 匀漀甀琀栀 匀琀爀愀渀搀 䌀漀洀洀漀渀猀 䰀漀眀攀猀Ⰰ 䬀漀栀氀猀Ⰰ 伀昀昀椀挀攀 䐀攀瀀漀琀Ⰰ 刀伀匀匀 匀琀攀椀渀 䴀愀爀琀Ⰰ 倀攀琀匀洀愀爀琀Ⰰ 䰀漀眀攀猀 䘀漀漀搀猀Ⰰ 䴀挀䄀氀椀猀琀攀爀猀 䐀攀氀椀Ⰰ 匀栀漀攀 䐀攀瀀琀
刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 12
EXECUTIVE SUMMARY | CAPE LANDING
SOUTHEAST VIEW
匀甀爀昀猀椀搀攀 䌀漀洀洀漀渀猀 圀愀氀洀愀爀琀Ⰰ 刀椀琀攀 䄀椀搀Ⰰ 䌀䄀吀伀Ⰰ 䜀一䌀Ⰰ 匀甀戀眀愀礀Ⰰ 䄀爀戀礀猀 㐀 䈀漀渀攀昀椀猀栀 䜀爀椀氀氀
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刀䔀吀䄀䤀䰀
㔀 䈀甀爀最攀猀猀 䔀氀攀洀攀渀琀愀爀礀 匀挀栀漀漀氀
䔀䐀唀䌀䄀吀䤀伀一
㘀 匀漀甀琀栀 匀琀爀愀渀搀 刀攀挀爀攀愀琀椀漀渀 䌀攀渀琀攀爀 㜀 圀椀氀搀 圀愀琀攀爀 圀栀攀攀氀猀
伀吀䠀䔀刀 倀伀䤀一吀匀 伀䘀 䤀一吀䔀刀䔀匀吀
㠀 匀漀甀琀栀 匀琀爀愀渀搀 䴀攀搀椀挀愀氀 䌀攀渀琀攀爀 Ⰰ 䔀洀瀀氀漀礀攀攀猀 䈀攀搀猀 㤀 䄀稀愀攀氀愀 䰀愀欀攀猀 倀爀漀昀攀猀猀椀漀渀愀氀 倀愀爀欀
䴀䄀䨀伀刀 䔀䴀倀䰀伀夀䔀刀匀
䄀吀䰀䄀一吀䤀䌀 伀䌀䔀䄀一
䠀伀䴀䔀 嘀䄀䰀唀䔀匀 唀倀 吀伀 㔀 䬀
㐀
㔀㘀㜀
㠀
㤀
䐀椀挀欀 倀漀渀搀 刀搀
倀愀氀洀攀琀琀漀
倀漀椀渀琀攀 䈀氀瘀搀
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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夀 㜀
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䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
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㜀㤀㜀
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㜀㘀
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㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
13 | OFFERING MEMORANDUM
PROPERTY DESCRIPTION
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
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SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 14
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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㜀㠀
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䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
15 | OFFERING MEMORANDUM
PROPERTY SUMMARY - RESIDENTIALNumber of Units 288 Units
Year Completed 1998
Year(s) Renovated 2015 (clubhouse)
Stories 3 Stories
Net Rentable Area 268632 SF
Average Unit Size 933 SF
SITE
Address 3851 Cape Landing Drive Myrtle Beach SC 29588
County Horry County
SizeDensity Phase I (288 Units) 2097 Acres 1373 Units per Acre
Phase II (126 Potential Units) 886 Acres 1422 Units per Acre
Location Property accessible to the east from Northgate
Boulevard or from Palmetto Pointe Boulevard The two
parcels of land in addition to the developed multifamily
buildings consist of a mixture of undeveloped land and
a lake
Parking 631 Total Spaces 219 per Unit
UTILITIES
SERVICEUTILITY SOURCECOMPANY PAID BY
HVACHot WaterCooking Electric Santee Cooper Resident
WaterSewer Grand Strand Water amp Sewer Billed by NWP
Resident
Trash Removal Billed by NWP Resident ($12 month)
CableInternet amp Phone HTC Resident
Pest Control Lanes Pest Control Resident ($350 month)
WS charged to each unit by calculating number of occupants per unit
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
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㜀㤀㜀
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㜀㠀
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㜀㘀
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䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 16
PROPERTY DESCRIPTION | CAPE LANDING
IMPROVEMENTS
Buildings 14 Buildings 3 Others Clubhouse Leasing Office and
Maintenance Buildings
Structures Wood-frame buildings on slab on grade foundation
subfloors are plywood with gypcrete on top exteriors
consist of vinyl siding and Clubhouse amp Office Exterior
is stucco
Roofs Pitched with Wood Frame Truss Finished with
plywood sheathing a waterproof membrane and ashalt
composition shingles
Breezeways Painted T 1-11 paneling along covered breezeways and
painted wood trim with concrete base flooring - stairs
are wood
Fenestration Unit entry doors are paneled insulated steel and
windows are horizontal sliders with aluminum frames
SYSTEMS
HVAC
ElectricGas
Plumbing
Life Safety
Heat Pump with AC Condensing Unit on roof
All electric
PVC (Both Supply amp Waste) and Individual Electric
Water Heaters (40 gal)
Buildings are not sprinklered Units are equipped with
hard-wired smoke detectors with battery back-up
Property served by 4 hydrants and fire extinguishers in
units or breezeways
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
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䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
17 | OFFERING MEMORANDUM
COMMUNITY AMENITIES
bull Elegant Clubhouse
bull Swimming Pool w Sundeck
bull 2 Gas Grilling Stations
bull Picnic Pavilion w Charcoal
Grills
bull 24-Hour Fitness Center
bull Relaxing Sauna
bull Executive Business Center
bull Clubroom w Billards Table amp
Flat Screen TV
bull Beach Volleyball Court
bull 24-Hour Emergency
Maintenance
bull Complimentary Poolside WiFi
bull Coffee Bar
bull Playground
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
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㜀㤀㜀
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㜀㠀
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㜀㘀
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㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 18
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
19 | OFFERING MEMORANDUM
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 20
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
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㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
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㜀㘀
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䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
21 | OFFERING MEMORANDUM
RESIDENCE FEATURES
bull Full sized WasherDryer
bull Resurfaced Countertops
bull Updated Cabinetry
bull Ceiling Fans
bull Faux-Wood Flooring
bull 2rdquo Blinds
bull Crown Molding
bull Spacious Bedrooms
bull Premium Carpet
bull Private Patio Balcony
bull Pantry Storage
bull Dishwasher
bull Wood-Burning Fireplaces
bull Double Basin Stainless Steel
Sink
bull Disposal
bull Walk-in Closets
Select Units
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
㜀㤀
㜀㤀㔀
㜀㤀㜀
㜀㤀㤀㜀㤀㠀
㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 22
PROPERTY DESCRIPTION | CAPE LANDING
INTERIORS
Finish 8rsquo Ceilings with crown molding painted walls and ceilings carpeted
living areas vinyl entry kitchen and bathroom floors window
blinds paneled interior doors ceiling fans (select units) private patio
or balcony and exterior storage closets Select units have walk-in
closets entryway coat closets pantry and linen closets wood-burning
fireplaces in 153 units washer amp dryer connections in every unit
(except the 15 handicap units)
Kitchens Laminate wood cabinets laminate counter tops frost-free refrigerator
with icemaker electric rangeoven with overhead vent hood
dishwasher double-basin stainless steel sink with disposal
Bathrooms Base vanity cabinet laminate countertop with drop-in porcelain sink
porcelain commode fiberglass tub shower with fiberglass surround
oversized - vanity mirror medicine cabinet and Hollywood lighting
Renovations Clubhouse was renovated in 2015 Unit upgrade details two inch
(2rdquo) blinds - 85 units resurfaced countertops - 101 units crown
molding - 73 units baseboards - 17 units faux-wood flooring - 91
units premium carpet - 42 units cabinets - 80 units
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
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SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
23 | OFFERING MEMORANDUM
UNIT MIX SUMMARYTYPE NAME SIZE (SF) RENTSQ FT
1BR 1BA (HC) The Cape 695 $110
1BR 1BA The Cape 695 $109
1BR 1BA The Hatteras 744 $105
2BR 2BA The Seagrass 883 $099
2BR 2BA The Palmetto 1108 $085
3BR 2BA The Driftwood 1356 $079
Total Avg 288 933 Avg $096 SF Avg
(HC) Handicapped Unit
TH
E C
AP
E |
1 B
ED
RO
OM
1
BA
TH
| 6
95
SF
TH
E H
AT
TE
RA
S |
1 B
ED
RO
OM
1
BA
TH
| 7
44
SF
TH
E S
EA
GR
AS
S |
2 B
ED
RO
OM
2 B
AT
H |
88
3 S
F
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
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㜀㤀㔀
㜀㤀㜀
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㜀㠀
㠀㔀
㜀㜀
㜀㘀
㜀㘀㔀
㜀㘀㠀
㜀㘀㤀
䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 24
PROPERTY DESCRIPTION | CAPE LANDING
TH
E P
AL
ME
TTO
| 2
BE
DR
OO
M 2 B
AT
H |
110
8 S
F T
HE
DR
IFT
WO
OD
| 3
BE
DR
OO
M 2 B
AT
H |
13
56
SF
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
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䈀
䄀䌀
䔀
䘀
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䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
吀 䈀伀唀䰀䔀嘀䄀刀䐀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䐀刀䤀嘀䔀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
唀匀
䠀圀
夀 㜀
㜀㠀㔀
㜀㠀㤀
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䈀
䄀䌀
䔀
䘀
䜀
䤀
䠀
䐀
䄀 伀䘀䘀䤀䌀䔀
䈀 䌀䰀唀䈀䠀伀唀匀䔀
䌀 倀伀伀䰀
䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | PROPERTY DESCRIPTION
25 | OFFERING MEMORANDUM
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䐀 䴀䄀䤀䰀 䬀䤀伀匀䬀
䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀 䌀䤀刀䌀䰀䔀
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
䜀 䴀䄀䤀一吀䔀一䄀一䌀䔀 䈀䰀䐀䜀
䠀 嘀伀䰀䰀䔀夀䈀䄀䰀䰀 䌀伀唀刀吀
䤀 倀䤀䌀一䤀䌀 䄀刀䔀䄀
䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 26
PROPERTY DESCRIPTION | CAPE LANDING
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
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SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | AREA OVERVIEW
27 | OFFERING MEMORANDUM
AREA OVERVIEW
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
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䔀 刀䔀吀䔀一吀䤀伀一 倀伀一䐀
䘀 吀䔀一一䤀匀 䌀伀唀刀吀
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䌀䄀倀䔀 䰀䄀一䐀䤀一䜀
SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 28
AREA OVERVIEW | CAPE LANDING
倀䄀䰀䴀䔀吀吀伀 倀伀䤀一
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SITE MAP
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
3 | OFFERING MEMORANDUM
MYRTLE BEACHby the Numbers
MYRTLE BEACH ldquoGRAND STRANDrdquo
AccolAdes
MSA Population - 2014 (Horry Georgetown amp Brunswick Counties)
478441
MSA Population - 2010 436880
Total Employment Level 154212
Unemployment Rate (Nov 2015) 66
Cost of Living Index 101
Cost of Business Index 82
Key Industries Tourism Retirement and Healthcare
Primary Growth Sectors LeisureHospitality Healthcare and Education
bull Top 20 Southern Cities for Jobs Right NowZipRecruiter
bull 5 States with the Best Regulatory EnvironmentForbes Magazine
bull 9 Most Tax-Friendly States Kiplinger
bull 2 Top States for Doing Business AreaDevelopment Magazine
bull 8 States with Best Business Climate BusinessFacilities Magazine
bull Top 25 Destinations in US TripAdvisor
bull 50 Coolest Things in America Yahoo Travel(Myrtle Beachrsquos Apache Pier)
bull 3 Best Family Vacations in the USA US Newsamp World Report
bull 10 Best Golf Destinations USA Today
bull Best Place to Kick Back ConventionSouthMagazine
bull 10 Best Beaches for Families Family VacationCritic
bull Top 10 Most Searched for Travel DestinationsYahoo
bull Top East Coast Beaches Flipkeycom
Source 2016 Myrtle Beach Regional EconomicDevelopment Corporation wwwmbredcorg
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 30
AREA OVERVIEW | CAPE LANDING
MYRTLE WAVES WATER PARKMYRTLE BEACH SC - THE GRAND STRANDStrategically located in northeast South Carolina between Charleston and Wilmington NC the coastal resort city serves as a hub of the Grand Strand a complex of beach towns and barrier islands stretching 60 miles from Little River to Georgetown SC Myrtle Beach a world-famous tourist destination is home to thousands of new residents each year and for the second year in a row the Myrtle Beach MSA is the second fastest growing metro in the nation according to the US Census Bureau From July 2014-2015 the population increased 35
Myrtle Beach is the heart of South Carolinarsquos booming $19B tourism industry which has helped fuel the growth of the arearsquos permanent population The city is home to Myrtle Waves one of the largest water parks on the eastern seaboard the Carolina Opry the Myrtle Beach Boardwalk US Myrtle Beach State Park Hard Rock Park and more than 90 golf courses Per the SC Department of Parks Recreation amp Tourism golf generates more income than any other recreational activity in the state The region hosts 14M visitors annually Since 2009 the number of tourists visiting Myrtle Beach has risen by 25 many of which are traveling from farther away as is evident in increased traffic at Myrtle Beach International Airport The airport which recently opened its new $118M 274K SF terminal is on pace to receive a record number of passengers this year thanks to low airfares Further the addition of more Allegiant Air flights since 2013 has extended the cityrsquos reach into new markets
BOOMING RETIREMENT DESTINATIONThe features that make the metro area a prime tourist destination also make it an ideal place to retire Residents age 65 and older account for nearly a quarter of Myrtle Beachrsquos population Increasing demand for health services will drive strong job gains in healthcare forecasted by Moodyrsquos to grow at approximately double the national rate during the next decade Moodyrsquos also forecasts overall population gains in Myrtle Beach to be three times greater than the national average which will support above-average growth in other service-based industries
RECENT ECONOMIC NEWSbull 2015 McLeod Health Systems broke
ground on the $20M Phase I of a planned 43-acre healthcare campus
bull 2015 Canadian-based manufacturerAccent Stainless Steel broke ground onits $31M 50K SF American HQ with 65high-skilled jobs
bull 2015 STARTEK Inc added 300additional jobs to its existing350-employee staff at its new $10Mcustomer support center
bull 2015 Medical life safety systemsprovider Star Life Safety announced
a new office with 36 jobs reflecting a $470K capital investment
bull 2015 Little Spider Creations a specialtyprop and set production companybased in Denver CO will invest $265Mand add 35 jobs
bull 2015 Worksman Cycles announced a$25M expansion with 50 new jobs
bull 2013-present The Myrtle Beach MSAranked as the second fastest growingMSA in the nation
bull 2013 Frontier Communications openeda call center with 116 new jobs
HORRY COUNTYrsquoS FOCUS ON ECONOMIC GROWTHStrategically located in the Southeastrsquos Aviation Corridor Horry County is a prime location for businesses in the aerospace and aviation industry and is home to the Pittsburgh Institute of Aeronautics Myrtle Beach campus The 460-acre International Technology amp Aerospace Park (ITAP) located on the former Myrtle Beach AFB adjacent to the airport was developed as a future base for aerospace industries The Myrtle Beach Regional Economic Development Corp is currently focused on attracting corporate headquarters to ITAP and other development-ready sites
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
MCLEOD HEALTH CAROLINA FOREST
CAPE LANDING | AREA OVERVIEW
HEALTHCARE BURGEONING ECONOMIC DRIVERThree outstanding hospital systems serve the Myrtle Beach region Grand Strand Regional Medical Center Tidelands Georgetown Memorial Hospital and McLeod Loris Health
Grand Strand Medical Center is a 301-bed Level II Traumer Center and has been recognized by The Joint Commission as a Top Perform in Key Quality Measures for Heart Attack Heart Failure Pneumonia and Surgical Care The hospital was the second in the nation to achieve disease specific care certification for sepsis by The Joint CommissionTidelands Georgetown Memorial Hospital is a 131-bed advanced primary stroke center an accredited chest pain center and a Joint Commission-certified joint replacement center Conway Medical Center recently opened two new surgical suites at its 210-bed inpatient facility
McLeod Health Systems broke ground in 2015 on Phase I of the 43-acre McLeod Seacoast Carolina Forest campus on International Drive The $20M Phase I of the development will include an emergency center medical office physical therapy and rehabilitation services and medical specialists
NOTABLE EDUCATIONAL ACHIEVEMENTSMore than $500M has been invested in the Horry County School District over the past decade The system has produced (1) National Merit Scholarship semifinalists and winners (2) eight National Blue Ribbon Schools of Excellence (3) SAT scores 33 points above the state average and (4) the highest-performing International Baccalaureate program in the state - 94 of students seeking IB diplomas received them
Coastal Carolina University (10263 enrolled) and Horry-Georgetown Technical College (6969 enrolled) offer training and educational advancement in more than 60 fields of study Webster University provides workers with an alternative educational opportunity to complete their graduate degrees
31 | OFFERING MEMORANDUM
COASTAL CAROLINA UNIVERSITY
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 32
AREA OVERVIEW | CAPE LANDING
EMPLOYER JOBS
Horry County School District 5473
Walmart Stores 2623
Horry County Government 2178
Coastal Carolina University 1582
Conway Medical Center 1400
Grand Strand Medical Center 1200
Food Lion Stores 1040
EMPLOYER JOBS
McLeod Loris Health 940
Blue CrossBlue Shield 837
City of Myrtle Beach 830
National Golf Management 800
Horry Telephone Cooperative 684
Wyndham Vacation Ownership 650
City of North Myrtle Beach 612
EMPLOYER JOBS
Lowersquos Building Supply 603
Kingston Plantation 550
Bi-Lo Stores 468
Ocean Lakes Campground 450
Santee Cooper Electric 340
Grand Strand Electric 301
Source Myrtle Beach Regional Economic Development Corporation wwwmbredcorg
CONWAY MEDICAL CENTER GRAND STRAND REGIONAL MEDICAL CENTER
DOUGLAS COUNTY TOP EMPLOYERS
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
33 | OFFERING MEMORANDUM
APARTMENT MARKET
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 34
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
35 | OFFERING MEMORANDUM
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
8
1
9
2
345
6
7
CAPE LANDING
PROPERTY OFUNITS
YEARBUILT OCCUPANCY APPROX
SQ FTEFFRENT
EFF RENTPER SQ FT
Cape Landing 288 1998 97 933 $874 $094
1 River Landing 340 2002 96 971 $782 $0812 Flintlake 272 1997 96 1146 $989 $0863 Latitude at the Commons 288 2009 92 956 $1047 $1104 Palmetto Pointe 320 1999 97 879 $936 $1065 Ivystone at Palmetto Pointe 664 2002 99 1033 $871 $0846 Claypond Commons 188 2000 98 723 $811 $1127 Waterleaf at Palmetto Pointe 216 2015 95 916 $1076 $1178 Alta Surf 216 2007 99 966 $1003 $104
9 Residences at the MarketCommon 125 2009 98 961 $1209 $126
AVERAGES 292 2004 97 970 $998 $103
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 36
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Claypond Commons Studio 384 $639 $166
Claypond Commons 1 BR 1 BA 600 $819 $137
Claypond Commons 1 BR 1 BA 578 $749 $130
Palmetto Pointe 1 BR 1 BA 652 $850 $130
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Residences at the MarketCommon Studio 642 $824 $128
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Palmetto Pointe 1 BR 1 BA 736 $899 $122
Alta Surf 1 BR 1 BA 761 $885 $116
Alta Surf 1 BR 1 BA 833 $910 $109
Cape Landing 1 BR 1 BA 695 $743 $107
Latitude at the Commons 1 BR 1 BA 816 $863 $106
Latitude at the Commons 1 BR 1 BA 780 $827 $106
Flintlake 1 BR 1 BA 810 $859 $106
Cape Landing 1 BR 1 BA 744 $775 $104
Cape Landing 1 BR 1 BA (HC) 695 $721 $104
River Landing 1 BR 1 BA 685 $648 $095
River Landing 1 BR 1 BA 771 $698 $091
AVERAGES 719 $831 $117
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 1 BR 1 BA 950 $1167 $123
Residences at the MarketCommon 1 BR 1 BA 819 $1007 $123
Waterleaf at Palmetto Pointe 1 BR 1 BA PH II 708 $915 $129Alta Surf 1 BR 1 BA 833 $910 $109Palmetto Pointe 1 BR 1 BA 736 $899 $122Alta Surf 1 BR 1 BA 761 $885 $116Latitude at the Commons 1 BR 1 BA 816 $863 $106Flintlake 1 BR 1 BA 810 $859 $106Palmetto Pointe 1 BR 1 BA 652 $850 $130Latitude at the Commons 1 BR 1 BA 780 $827 $106Residences at the MarketCommon Studio 642 $824 $128
Claypond Commons 1 BR 1 BA 600 $819 $137Cape Landing 1 BR 1 BA 744 $775 $104Claypond Commons 1 BR 1 BA 578 $749 $130Cape Landing 1 BR 1 BA 695 $743 $107Cape Landing 1 BR 1 BA (HC) 695 $721 $104River Landing 1 BR 1 BA 771 $698 $091River Landing 1 BR 1 BA 685 $648 $095Claypond Commons Studio 384 $639 $166
AVERAGES 719 $831 $117
(HC) Handicap Unit
RANKED BY RENT PER SQUARE FOOT
ONE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
37 | OFFERING MEMORANDUM
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118
Latitude at the Commons 2 BR 2 BA 1060 $1199 $113
Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112
Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111
Latitude at the Commons 2 BR 2 BA 1096 $1199 $109
Alta Surf 2 BR 2 BA 1064 $1060 $100
Claypond Commons 2 BR 2 BA 890 $878 $099
Alta Surf 2 BR 2 BA 1140 $1115 $098
Cape Landing 2 BR 2 BA 883 $857 $097
Palmetto Pointe 2 BR 1 BA 943 $915 $097
Claypond Commons 2 BR 2 BA 890 $853 $096
Palmetto Pointe 2 BR 2 BA 1040 $999 $096
Flintlake 2 BR 2 BA 1145 $1055 $092
Claypond Commons 2 BR 1 BA 890 $779 $088
Cape Landing 2 BR 2 BA 1108 $949 $086
Flintlake 2 BR 2 BA 1086 $929 $086
Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085
River Landing 2 BR 2 BA 950 $769 $081
River Landing 2 BR 2 BA 1035 $819 $079
AVERAGES 1049 $1058 $100
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Residences at the MarketCommon 2 BR 2 BA 1295 $1669 $129
Residences at the MarketCommon 2 BR 2 BA 1235 $1580 $128
Latitude at the Commons 2 BR 2 BA 1260 $1484 $118Latitude at the Commons 2 BR 2 BA 1060 $1199 $113Latitude at the Commons 2 BR 2 BA 1096 $1199 $109Waterleaf at Palmetto Pointe 2 BR 2 BA PH II 1050 $1175 $112Alta Surf 2 BR 2 BA 1140 $1115 $098Waterleaf at Palmetto Pointe 2 BR 2 BA PH I 968 $1075 $111Alta Surf 2 BR 2 BA 1064 $1060 $100Flintlake 2 BR 2 BA 1145 $1055 $092Palmetto Pointe 2 BR 2 BA 1040 $999 $096Cape Landing 2 BR 2 BA 1108 $949 $086Flintlake 2 BR 2 BA 1086 $929 $086Palmetto Pointe 2 BR 1 BA 943 $915 $097Claypond Commons 2 BR 2 BA 890 $878 $099Cape Landing 2 BR 2 BA 883 $857 $097Claypond Commons 2 BR 2 BA 890 $853 $096Ivystone at Palmetto Pointe 2 BR 2 BA 1000 $850 $085River Landing 2 BR 2 BA 1035 $819 $079Claypond Commons 2 BR 1 BA 890 $779 $088River Landing 2 BR 2 BA 950 $769 $081
AVERAGES 1049 $1058 $100
RANKED BY RENT PER UNIT
TWO BEDROOM
RANKED BY RENT PER SQUARE FOOT
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 38
APARTMENT MARKET | CAPE LANDING
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111
Palmetto Pointe 3 BR 2 BA 1276 $1199 $094
Cape Landing 3 BR 2 BA 1356 $1125 $083
Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
Flintlake 3 BR 25 BA (TH) 1508 $1150 $076
River Landing 3 BR 2 BA 1456 $994 $068
AVERAGES 1316 $1162 $089
PROPERTY UNITTYPE
APPROXSQ FT
EFFRENT
RENT PERSQ FT
Waterleaf at Palmetto Pointe 3 BR 2 BA PH II 1252 $1395 $111Waterleaf at Palmetto Pointe 3 BR 2 BA PH I 1161 $1295 $112Palmetto Pointe 3 BR 2 BA 1276 $1199 $094Flintlake 3 BR 25 BA (TH) 1508 $1150 $076Cape Landing 3 BR 2 BA 1356 $1125 $083River Landing 3 BR 2 BA 1456 $994 $068Ivystone at Palmetto Pointe 3 BR 2 BA 1200 $975 $081
AVERAGES 1316 $1162 $089
(TH) Townhome
RANKED BY RENT PER SQUARE FOOT
THREE BEDROOM
RANKED BY RENT PER UNIT
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
39 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF1 BR 1 BA (HC) 15 695 $721 $1041 BR 1 BA 57 695 $743 $1071 BR 1 BA 60 744 $775 $1042 BR 2 BA 48 883 $857 $0972 BR 2 BA 60 1108 $949 $0863 BR 2 BA 48 1356 $1125 $083TOTALAVG 288 932 $874 $094
(HC) Handicap Unit
Electric Tenant Water and Sewer Tenant
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Upgraded Interiors AvailableWasher amp Dryer ConnectionsPrivate Patio BalconyWood Vinyl FlooringCustom Accent Wall Colors AvailableWalk-In Closet(s)Linen ClosetWood Burning FireplaceExterior StorageClubhouseSwimming Pool w WiFi
Fitness Center w SaunaSand Volleyball CourtBoat RV Parking AvailablePlaygroundTennis CourtsLakeside GazeboBBQ amp Picnic AreaLaundry FacilityCyber CafeBilliards Room
UTILITIES
Natural Gas Property (Common Area Only) Trash Removal Tenant ($12month)
COMMENTS
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
Cape Landing3851 Cape LandingMyrtle Beach SC 29588Horry County
1998Year Built288Total UnitsGardenProperty Type268632 SFTotal Area (SF)97OccupancyGreystarManagement
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 52 685 $648 $0951 BR 1 BA 52 771 $698 $0912 BR 2 BA 96 950 $769 $0812 BR 2 BA 96 1035 $819 $0793 BR 2 BA 44 1456 $994 $068TOTALAVG 340 972 $782 $081
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses LRO for daily pricing and is currently not offering any leasingspecials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterDetached Garages AvailableFitness CenterGrill Picnic AreaLaundry RoomPlaygroundSwimming PoolTennis Courts
Volleyball CourtCeiling FansBuilt-In MicrowavesWasherDryer ConnectionsDishwasher amp Disposal8 CeilingsWhite AppliancesFrieze CarpetingSunrooms Available
UTILITIES
COMMENTS
200 River Landing BoulevardMyrtle Beach SC 29579Horry County
River Landing
2002Year Built340Total UnitsGardenProperty Type330336 SFTotal Area (SF)96OccupancyRE Carroll ManagementManagement
1
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 40
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 810 $859 $1062 BR 2 BA 114 1086 $929 $0862 BR 2 BA 46 1145 $1055 $0923 BR 25 BA (TH) 64 1508 $1150 $076TOTALAVG 272 1147 $989 $086
(TH) Townhome
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property does not use daily pricing software and is currently not offering anyleasing specials They began upgrading units last year to include new carpetsstainless steel appliances new lighting and plumbing fixtures wood vinyl flooringand new cabinetry Upgraded units are being charged a $90 premium on top of therates listed above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseTwo Swimming Pools with WiFiDetached Garages AvailableBusiness CenterFitness CenterStorage Units AvailableGrill Picnic AreaTwo Car Care Centers
Full-Size WD ConnectionsDishwasher amp DisposalCeiling FansVaulted Ceilings (Select Units)Walk-In Closets (Select Units)Upgraded Units (Select Units)Accent Walls AvailableBreakfast Bar (Select Units)
UTILITIES
COMMENTS
650 West Flintlake CourtMyrtle Beach SC 29579Horry County
Flintlake
1997Year Built272Total UnitsGarden ampamp THProperty Type311866 SFTotal Area (SF)96OccupancyDrucker amp FalkManagement
2
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 72 780 $827 $1061 BR 1 BA 60 816 $863 $1062 BR 2 BA 72 1060 $1199 $1132 BR 2 BA 72 1096 $1199 $1092 BR 2 BA 12 1260 $1484 $118TOTALAVG 288 957 $1047 $110
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses Yieldstar for daily pricing and is not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming PoolOutdoor CabanaStainless Steel GrillsBusiness CenterFitness CenterBilliard and Entertainment RoomComplimentary BicyclesDetached Garages Available
9 CeilingsBlack AppliancesBuilt-In MicrowavesWalk-In ClosetsWasherDryer ConnectionsPendant LightingFaux Wood FlooringMaple CabinetryPatioBalcony with Storage
UTILITIES
COMMENTS
2222 Crow LaneMyrtle Beach SC 29577Horry County
Latitude at the Commons
2009Year Built288Total UnitsGardenProperty Type275472 SFTotal Area (SF)92OccupancyChartwell HoldingsManagement
3
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTSCOMMENTS
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
41 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 68 652 $850 $1301 BR 1 BA 72 736 $899 $1222 BR 1 BA 60 943 $915 $0972 BR 2 BA 108 1040 $999 $0963 BR 2 BA 12 1276 $1199 $094TOTALAVG 320 880 $936 $106
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is currently not offering any leasing specials
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseDog ParkFitness CenterLaundry FacilitySwimming PoolTennis CourtPicnic AreaBusiness CenterCar Care Center
9 CeilingsBlack AppliancesWalk-In ClosetsCeilings FansDishwasher amp DisposalFull-Size WasherDryer ConnectionsPatio BalconyBuilt-In MicrowaveFireplace (Select Units)
UTILITIES
COMMENTS
3919 Carnegie AvenueMyrtle Beach SC 29588Horry County
Palmetto Pointe
1999Year Built320Total UnitsGardenProperty Type281540 SFTotal Area (SF)97OccupancyJMG RealtyManagement
4
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
2 BR 2 BA 552 1000 $850 $0853 BR 2 BA 112 1200 $975 $081TOTALAVG 664 1034 $871 $084
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials Trash and pest control areincluded in the rental rates shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Swimming Pools (2)ClubhouseFitness CenterWasherDryer HookupsPrivate BalconyPatioCeiling Fans
Faux-Wood Flooring8 CeilingsWhite AppliancesBuilt-In MicrowaveDishwasher amp Disposal
UTILITIES
COMMENTS
305 Brookfield DriveMyrtle Beach SC 29588Horry County
Ivystone at Palmetto Pointe
2002Year Built664Total UnitsGardenProperty Type686400 SFTotal Area (SF)99OccupancyPowers PropertiesManagement
5
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 42
APARTMENT MARKET | CAPE LANDING
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 20 384 $639 $1661 BR 1 BA 10 578 $749 $1301 BR 1 BA 62 600 $819 $1372 BR 1 BA 11 890 $779 $0882 BR 2 BA 67 890 $853 $0962 BR 2 BA 18 890 $878 $099TOTALAVG 188 724 $811 $112
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Property
The company is not using any daily pricing software They have upgraded 17 of theunits and and are obtaining $64 rent premiums The upgraded units include newblack appliances two-tone paint faux-wood flooring refinished countertops andupgraded lighting fixtures
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseSwimming Pool with Sun DeckBusiness CenterClothes Care CenterPlaygroundHealth HubPup Town ParkPicnic amp Grilling AreasLake with Fountain
Upgraded Units Available8 CeilingsPrivate Patio BalconyFully Equipped KitchensFaux-Wood FlooringWalk-In ClosetsWasherDryer ConnectionsExtra StorageSix-Panel Doors (Select Units)
UTILITIES
COMMENTS
101 Rexford CourtMyrtle Beach SC 29579Horry County
Claypond Commons
2000Year Built188Total UnitsGardenProperty Type136100 SFTotal Area (SF)98OccupancyHamilton PointManagement
6
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA PH II 84 708 $915 $1292 BR 2 BA PH I 36 968 $1075 $1112 BR 2 BA PH II 72 1050 $1175 $1123 BR 2 BA PH I 12 1161 $1295 $1123 BR 2 BA PH II 12 1252 $1395 $111TOTALAVG 216 921 $1076 $117
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property uses daily pricing software and is currently not offering any leasingspecials The property was constructed in two phases (2010 amp 2015) and is fullyleased up All units come with a washer and dryer
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
ClubhouseBusiness CenterOutdoor Cabana with FireplaceOutdoor GrillsFitness CenterComplimentary BicyclesFree WiFi in Amenity Areas9 Ceilings (15 on Top Floor)
Upgraded CabinetryBlack AppliancesBuilt-In MicrowaveFaux-Wood FlooringDishwasher amp DisposalCeiling FansWalk-In ClosetsGarden Soaking Tub
UTILITIES
COMMENTS
3815 Maypop CircleMyrtle Beach SC 29588Horry County
Waterleaf at Palmetto Pointe
2015Year Built216Total UnitsGardenProperty Type197868 SFTotal Area (SF)95OccupancyNHEManagement
7
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
FEATURES AND AMENITIES
UTILITIES
UTILITIES
COMMENTS
COMMENTS
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | APARTMENT MARKET
43 | OFFERING MEMORANDUM
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
1 BR 1 BA 48 761 $885 $1161 BR 1 BA 48 833 $910 $1092 BR 2 BA 60 1064 $1060 $1002 BR 2 BA 60 1140 $1115 $098TOTALAVG 216 966 $1003 $104
Electric Tenant Water and Sewer TenantNatural Gas NA Trash Removal Tenant
The property is currently offering $199 off the first months rent for all units on the thirdfloor $299 for all units on the second floor and $399 for all units on the first floorThese concessions have not been factored into the pricing shown above All utilitiesare paid separate of the rental rates by tenants
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Car Care CenterClubhouseDetached GaragesBilliards and Game RoomSwimming PoolFitness CenterCar Care CenterBusiness CenterPet ParkGourmet Kitchens
Black AppliancesCrown MoldingWalk-In ClosetsDesigner Maple Cabinetry9 CeilingsCeiling FansDishwasher amp DisposalsWasherDryer ConnectionsBuilt-In MicrowavesBuilt-In Computer Desks (Select Units)
UTILITIES
COMMENTS
101 Breakers DriveMyrtle Beach SC 29579Horry County
Alta Surf
2007Year Built216Total UnitsGardenProperty Type208752 SFTotal Area (SF)99OccupancyEller ResidentialManagement
8
UNIT TYPE OF UNITS SIZE SF EFF RENT EFF RENTSF
Studio 16 642 $824 $1281 BR 1 BA 52 819 $1007 $1231 BR 1 BA 14 950 $1167 $1232 BR 2 BA 28 1235 $1580 $1282 BR 2 BA 15 1295 $1669 $129TOTALAVG 125 961 $1209 $126
Electric Tenant Water and Sewer PropertyNatural Gas NA Trash Removal Property
The property is not currently offering any leasing specials While watersewer andtrash removal services are included in the rental rates paid they have beenexcluded from the effective rents shown above
UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIES
Parking GaragesElevators24 Hour Ambassador ServiceFitness CenterLounge Area with HammocksTwo On-Site SpasSwimming Pool with Lazy RiverVolleyball NetTwo Hot Tubs
Ping Pong TablesTrack LightingWasherDryer IncludedWalk-In ClosetsBreakfast Bar or IslandKitchen PantryMicrowave OvenCable amp Internet Ready
UTILITIES
COMMENTS
4017 Deville StreetMyrtle Beach SC 29577Horry County County
Residences at the Market Common
2009Year Built125Total UnitsMidriseProperty Type120165 SFTotal Area (SF)98OccupancyOwner ManagedManagement
9
UNIT MIX AND RENTAL RATES UNIT MIX AND RENTAL RATES
FEATURES AND AMENITIESFEATURES AND AMENITIES
UTILITIESUTILITIES
COMMENTS COMMENTS
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 44
APARTMENT MARKET | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | FINANCIAL ANALYSIS
45 | OFFERING MEMORANDUM
FINANCIAL ANALYSIS
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 46
FINANCIAL ANALYSIS | CAPE LANDING
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | FINANCIAL ANALYSIS
47 | OFFERING MEMORANDUM
CAPE LANDING 3851 Cape Landing DriveMyrtle Beach SC 29588Horry County
Year Built 1998Number of Units 288 Property Type GardenApproximate Rentable Area 268632Buildings 14 BuildingsStories 3 StoriesSite Size (Acres) 2983Density (Units Per Acre) 965Occupancy (As of 7132016) 97Management Greystar
UNIT MIX AND RENTAL RATESUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
UTILITIESPROVIDER
COMMENTS
TYPE PAID BYElectric Tenant
Water and Sewer TenantNatural Gas NA
Trash Removal Tenant ($12month)
The property uses Yieldstar for daily pricing and is not currently offering any leasing specials Watersewer usage is billed to the tenants based on a per occupant allocation Tenants pay an additional $12 monthly fee for trash removal services
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 48
FINANCIAL ANALYSIS | CAPE LANDING
UNIT MIX CHARTUNIT TYPE OF UNITS SIZE SQ FT TOTAL SQ FT MARKET RENT RENTSQ FT MONTHLY RENT
1 BR 1 BA (HC) 15 695 10425 $705 $101 $105681 BR 1 BA 57 695 39615 $757 $109 $431521 BR 1 BA 60 744 44640 $784 $105 $470452 BR 2 BA 48 883 42384 $870 $099 $417622 BR 2 BA 60 1108 66480 $946 $085 $567353 BR 2 BA 48 1356 65088 $1069 $079 $51316
TOTALSAVERAGES 288 933 268632 $870 $096 $250577(HC) Handicapped Unit
1 BR 1 BA (HC)5
1 BR 1 BA20
1 BR 1 BA21
2 BR 2 BA16
2 BR 2 BA21
3 BR 2 BA17
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CAPE LANDING | FINANCIAL ANALYSIS
49 | OFFERING MEMORANDUM
INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH1 Scheduled Gross Income $2952008 $10250 $246001 $2952168 $10251 $246014 $3097135 $10754 $2580952 Concessions Loss-to-Lease (6163) (21) (514) 20859 72 1738 (30971) (108) (2581)3 Delinquency (1) (18392) (64) (1533) (18392) (64) (1533) (15486) (54) (1290)
Gross Operating Income $2927453 $10165 $243954 $2954635 $10259 $246220 $3050678 $10593 $2542234 Vacancy (139115) (483) (11593) (85628) (297) (7136) (154857) (538) (12905)5 Non-Revenue Units (15230) (53) (1269) (17602) (61) (1467) (10441) (36) (870)
Effective Gross Income $2773108 $9629 $231092 $2851405 $9901 $237617 $2885381 $10019 $2404486 Other Income (1) 347569 1207 28964 347569 1207 28964 352512 1224 29376
Total Operating Income $3120677 $10836 $260056 $3198974 $11108 $266581 $3237893 $11243 $269824
EXPENSES7 Repairs and Maintenance (2) $216000 $750 $18000 $216000 $750 $18000 $216000 $750 $180008 Salaries and Wages 383332 1331 31944 383332 1331 31944 356250 1237 296889 Utilitiesa Electric 57861 201 4822 57861 201 4822 57900 201 4825b Natural Gas 517 2 43 517 2 43 516 2 43c Water and Sewer 83337 289 6945 83337 289 6945 86400 300 7200d Trash Removal 24315 84 2026 24315 84 2026 24360 85 2030
10 General and Administrative 112039 389 9337 112039 389 9337 100800 350 840011 Advertising 38942 135 3245 38942 135 3245 39000 135 325012 Property Management Fee 86800 301 7233 86800 301 7233 86561 301 721313 Real Estate Taxes (3) 169361 588 14113 169361 588 14113 169361 588 1411314 Property Insurance 56191 195 4683 56191 195 4683 72000 250 600015 Capital Reserves 72000 250 6000 72000 250 6000 72000 250 6000
Total Operating Expenses $1300696 $4516 $108391 $1300696 $4516 $108391 $1281148 $4448 $106762$1354710
NET OPERATING INCOME $1819982 $6319 $151665 $1898278 $6591 $158190 $1956745 $6794 $163062The MHA Proforma includes a 3 increase in the current market rents(1) The T1 Underwriting uses T3 Annualized Delinquency and Other Income levels(2) T3 and T1 Underwritings use proforma Repairs and Maintenance levels(3) Actual 2015 Taxes are used above The taxes will readjust upon sale based upon the sales price (per SC state law)
JUNE 2016 T-3 INCOME T-12 EXPENSES
MHAPROFORMA
JUNE 2016 T-1 INCOME T-12 EXPENSES
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CUSHMAN amp WAKEFIELD | 50
FINANCIAL ANALYSIS | CAPE LANDING
1 Scheduled Gross Income
2 Concessions
3 Delinquencies
4 Vacancies
5 Non-Revenue Units
6 Other Income
7 Repairs and Maintenance
8 Salaries and Wages
Title Salary Subtotal Property Manager 1 $50000 $50000
Assistant Manager 2 $40000 $80000Head Maintenance 1 $50000 $50000Maintenance Assistant 2 $40000 $80000Part-time Labor 1 $25000 $25000Subtotal 7 $285000Total 7 $356250The total Salaries and Wages figure applies a 25 factor to the subtotal above to account for employee benefits
PROFORMA SALARIES AND WAGES
The Scheduled Gross Income in the Cushman amp Wakefield Proforma includes a3 increase in the current market rates The Gross Potential Income with thismarket rate increase is $258095 per month
The proforma assumes leasing concessions equivalent to approximately 100 ofthe Scheduled Gross Income
The proforma assumes a delinquency rate of 050 to account for alluncollected rent
The proforma assumes a 5 vacancy This level is consistent with the propertyshistorical performance
The proforma assumes there is one (1) non-revenue unit
The other income figure of $352512 includes pet fees laundry income utilityreimbursements application and late fees etc
The $750 per unit expense figure in the proforma covers all turnover charges aswell as supplies for lawn care general preventative maintenance landscapingetc
The Salaries and Wages figure is calculated as follows
9 Utilities
10 General and Administrative
11 Advertising
12 Property Management Fee
13 Real Estate Taxes
Actual 2015 Appraised Value $12989570Actual 2015 Assessed Value 6 $779374District 630 02145 $167176County Fees $2185Total Taxes $169361
14 Property Insurance
15 Capital Reserves
a) Electric The proforma sets the monthly electrical expense at $4825 Tenantsare responsible for their own electricity therefore the electrical expense willcover common areas and the leasing office b) Natural Gas The proforma sets the natural gas expense at $43
c) Water and Sewer The proforma sets the monthly water and sewer expense at$7200 or $25 per unit per month d) Trash Removal The monthly expense of $2030 covers the monthly rubbishremoval
The Property Management Fee is a percentage of the Total EGI Thepercentage range is between 3 and 5 for most properties depending on itsage condition and location The proforma for Cape Landing assumes a 300Management Fee
Cape Landing is located in Horry County Actual 2015 Taxes are used in theunderwritings and are shown below Per SC state law the taxes may reassessupon sale based on the ultimate sales price A 25 ATI exemption can beutilized to lower the reassessed value to 75 of the purchase price Additionaldetails for the ATI exemption are available upon request
Proforma insurance amount of $250 per unit covers casualty and propertyinsurance
The $250 per unit is based on the market average given the condition of theproperty This figure represents the lowest capital reserve amount that a lenderis willing to accept in the current marketplace
The General and Administrative expense is based upon $350 per unit This figurecovers all office expenses including leasing charges (background checks etc)as well as any miscellaneous charges
The proforma Advertising expense of $3250 per month includes all materialsnecessary for marketing the property
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety
CONFIDENTIALITY STATEMENT
This Offering Memorandum (OM) was prepared by Cushman amp Wakefield
(Broker) and has been reviewed by the Owner The OM is confidential
furnished solely for the purpose of considering the acquisition of the Property
described herein and is not to be used for any other purpose or made
available to any other person without the express written consent of Broker
An opportunity to inspect the Property will be made available to qualified
prospective purchasers
The information contained herein has been obtained from sources deemed
reliable and we have no reason to doubt its accuracy However no warranty or
representation expressed or implied is made by the Owner or Broker or any
related entity as to the accuracy or completeness of the information contained
herein including but not limited to financial information and projections and
any engineering and environmental information Prospective purchasers should
make their 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 Property and the existence
or absence of any potentially hazardous materials used in the construction
or maintenance of the building(s) or located at the land site including but
not limited to lead-based products (for compliance with ldquoTarget Housingrdquo
regulation for multifamily housing constructed prior to 1978) asbestos etc
The Owner and Broker expressly reserve the right at their sole discretion to
reject any or all expressions of interest or offers to purchase the Property and
or terminate discussions with any party at any time with or without notice The
Owner shall have no legal commitment or obligation to any purchaser unless
a written agreement for the purchase of the Property has been delivered
approved and fully executed by the Owner and any conditions to the Ownerrsquos
obligations thereunder have been satisfied or waived Broker is not authorized
to make any representations or agreements on behalf of the Owner Broker
represents the Owner in this transaction and makes no representations
expressed or implied as to the foregoing matters The depiction of any
persons entities signs logos or properties (other than Brokerrsquos client and
the Property) is incidental only and not intended to connote any affiliation
connection association sponsorship or approval by or between that which is
incidentally depicted and Broker or its client
This OM is the property of Cushman amp Wakefield and may be used only by
parties approved in writing by Broker The information is privately offered and
by accepting this OM the party in possession hereon agrees (i) to return it to
Cushman amp Wakefield immediately upon request of Broker or the Owner and
(ii) that this OM and its contents are of a confidential nature and will be held
and treated in the strictest confidence No portion of this OM may be copied
or otherwise reproduced andor disclosed to anyone without the written
authorization of Broker and Owner The terms and conditions set forth above
apply to this OM in its entirety