OFFERING MEMORANDUM Receivership Sale...Property Details RECEIVERSHIP SALE 1 | PROPERTY INFORMATION...

KW COMMERCIAL

3505 Columbia Parkway

Cincinnati, OH 45226JENNIFER DONATHANSenior Investment [email protected] #2004004706

Receivership Sale

OFFERING MEMORANDUM

PRESENTED BY:

CINCINNATI, OH

OFFERING MEMORANDUM

www.kwcommercial.com 2

KW COMMERCIAL

3505 Columbia Parkway

Cincinnati, OH 45226

JENNIFER DONATHANSenior Investment [email protected] #2004004706

Confidentiality & Disclaimer

OFFERING MEMORANDUM

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Keller Williams Advisor's Realty in compliance with allapplicable fair housing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

PRESENTED BY:

CINCINNATI, OH

http://www.kwcommercial.com


PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

PROPERTY DETAILS

COMPLETE HIGHLIGHTS

ADDITIONAL PHOTOS

ADDITIONAL PHOTOS

1PROPERTY INFORMATION

RECEIVERSHIP SALE

RECEIVERSHIP SALE

PROPOSAL FOR COMMERCIAL SERVICES

OFFERING MEMORANDUM


Executive Summary

RECEIVERSHIP SALE 1 | PROPERTY INFORMATION

PROPERTY FEATURES

Receivership Sale

36 Units - Project Based Section 8

Waiting List

Excellent Location



PROPERTY OVERVIEWRECEIVERSHIP SALE - Jennifer M. Donathan, SeniorInvestment Advisor for KW Commercial is pleased to presentan excellent opportunity to acquire a project based section 8complex in E. Walnut Hills part of the Cincinnati submarket.The property is under a HAP contract that was renewed in2013 for a 20 year term. The offering consists of 18 onebedroom / one bath units and 18 studios. Owners pays allutilities per the HAP contract and there is $0 utilityallowance. Tenants are required to pay a minimum of $25per month despite their monthly income or lack of incomeand most tenants pay between $200 - $300/month. Alltenants have a proven disability or handicap. The mostrecent REAC score was 27C received in February 2017.Since then, the property was placed in a court orderreceivership and many of the issues noted in the REACreport have been cured by the Receiver. The property isbeing offered for sale free and clear and contingent uponcourt approval.

LOCATION OVERVIEWExcellent location! The offering is for 36 units located in theepicenter of the revitalization and renewal of East WalnutHills. It’s strategic location in relation to its short distance tobooming downtown Cincinnati is what makes this area sodesirable to renters, investors and community leaders. Theapartments are situated among diverse housing includingluxury housing and class "A/B" single family housing, fewmulti-family complexes and commercial. The housingoptions offer residents urban living in modernized historicbuildings. Walnut Hills is home to Walnut Hills High School ahighly coveted school that draws out of towners to move intothe Cincinnati school district. The property is 2 blocks fromEden Park, 2 miles to downtown Cincinnati and less than 1mile to I-71.

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Property Description




Property Details



PROPERTY NAME: Receivership Sale

STREET ADDRESS: 2361-2363 Kemper Lane

CITY, STATE, ZIP: Cincinnati, OH 45206

APN: 067-0001-0086-00

LOT SIZE: 0.45 AC

BUILDING SIZE: 20,336 SF

BUILDING CLASS: C

ZONING: Multi-family

PARKING SPACES: 36

YEAR BUILT: 1970

NUMBER OF STORIES: 3

FOUNDATION: Poured concrete

WALLS: Brick , drywall

NUMBER OF UNITS: 36


Complete Highlights


PROPERTY HIGHLIGHTS

• Receivership Sale

• 36 Units - Project Based Section 8

• Waiting List

• Excellent Location




Additional Photos



LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATION

RECEIVERSHIP SALE

RECEIVERSHIP SALE


OFFERING MEMORANDUM

2361-2363 Kemper Lane

Regional Map

RECEIVERSHIP SALE 2 | LOCATION INFORMATION




Location Maps



Aerial Map




FINANCIAL ANALYSIS

3 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

UNIT MIX SUMMARY

3FINANCIAL ANALYSIS

RECEIVERSHIP SALE

RECEIVERSHIP SALE


OFFERING MEMORANDUM

INVESTMENT OVERVIEW 2017 BUDGET (EXPENSES ESTIMATED AT 60% OF INCOME)

Price $1,080,000

Price per Unit $30,000

GRM 3.9

CAP Rate 9.6%

Cash-on-Cash Return (yr 1) 17.44 %

Total Return (yr 1) $63,785

Debt Coverage Ratio 1.83

OPERATING DATA 2017 BUDGET (EXPENSES ESTIMATED AT 60% OF INCOME)

Gross Scheduled Income $275,832

Other Income -

Total Scheduled Income $275,832

Vacancy Cost $13,791

Gross Income $262,040

Operating Expenses $158,134

Net Operating Income $103,906

Pre-Tax Cash Flow $47,084

FINANCING DATA 2017 BUDGET (EXPENSES ESTIMATED AT 60% OF INCOME)

Down Payment $270,000

Loan Amount $810,000

Debt Service $56,822

Debt Service Monthly $4,735

Principal Reduction (yr 1) $16,701

Financial Summary

RECEIVERSHIP SALE 3 | FINANCIAL ANALYSIS



INCOME SUMMARY 2017 BUDGET (EXPENSES ESTIMATED AT 60% OF INCOME) PER SF

Rent Schedule Effective 8/1/17 Actuals $275,832 $13.56

Vacancy 5% -$13,791 -$0.68

GROSS INCOME $262,041 $12.89

EXPENSE SUMMARY 2017 BUDGET (EXPENSES ESTIMATED AT 60% OF INCOME) PER SF

Real Estate Taxes Actual $19,330 $0.95

Property Management 10% (est) $26,204 $1.29

Insurance $350/unit (est) $12,600 $0.62

Utilities, Repairs, Maintenance, all other expenses (est) $100,000 $4.92

GROSS EXPENSES $158,134 $7.78

NET OPERATING INCOME $103,906 $5.11

Income & Expenses




Unit Mix Summary


UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT

Large 1 Bed/1 Bath 6 16.7 $721

1 Bed/1 Bath 12 33.3 $706

Studio 18 50.0 $566

Totals / Averages 36 100% 0 $22,986 $0 $0



DEMOGRAPHICS

4 | DEMOGRAPHICS

DEMOGRAPHICS MAP

4DEMOGRAPHICS

RECEIVERSHIP SALE

RECEIVERSHIP SALE


OFFERING MEMORANDUM


* Demographic data derived from 2010 US Census

Demographics Map

RECEIVERSHIP SALE 4 | DEMOGRAPHICS

ETHNICITY 1 MILE 3 MILES 5 MILES

% HISPANIC 1.8% 1.6% 2.3%

RACE 1 MILE 3 MILES 5 MILES

% WHITE 36.6% 57.6% 64.8%

% BLACK 60.5% 37.5% 30.4%

% ASIAN 1.2% 2.3% 1.7%

% HAWAIIAN 0.0% 0.1% 0.1%

% INDIAN 0.2% 0.1% 0.1%

% OTHER 0.0% 0.4% 0.6%

POPULATION 1 MILE 3 MILES 5 MILES

TOTAL POPULATION 13,471 149,317 317,222

MEDIAN AGE 36.5 32.6 33.6

MEDIAN AGE (MALE) 33.1 31.6 32.6

MEDIAN AGE (FEMALE) 38.5 33.9 34.9

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

TOTAL HOUSEHOLDS 7,002 65,849 139,544

# OF PERSONS PER HH 1.9 2.3 2.3

AVERAGE HH INCOME $41,505 $50,396 $55,289

AVERAGE HOUSE VALUE $170,837 $196,312 $208,753


OFFERING MEMORANDUM Receivership Sale...Property Details RECEIVERSHIP SALE 1 | PROPERTY INFORMATION...

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