timberlake townhomes - loopnet · county montgomery county number of units 48 units year built...

TIMBERLAKE TOWNHOMES 48 UNITS | CLARKSVILLE, TENNESSEE

Cash Flowing Asset with Value-Add Potential

TENNESSEE TRANSACTION TEAM

LEADBRAD BOSTONASSOCIATE+1 615 301 [email protected]

ROBBIE O’BRYANDIRECTOR+1 615 301 [email protected]

OFFERING TERMSProperty is offered on an all-cash basis.

DATA ACCESSHistorical Financial and Property information is available at: multifamily.cushwake.com

OFFERING PROCESSSend offers via email to:

BRAD BOSTON

[email protected]

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.

DIRECTIONS FROM NASHVILLE INTERNATIONAL AIRPORT

Follow signs to I-40 West. Merge onto I-40 West then take exit 215B to merge onto TN-155 North/Briley Parkway. In 35.2 miles, take exit 18A to merge onto I-24 West toward Clarksville then take exit 8 for TN-237/Rossview Road. Turn left onto TN-237 West/Rossview Road then turn left onto Dunbar Cave Road. In 3.3 miles turn right onto Timberlake Drive.

1033 DEMONBREUN STREET SUITE 600, NASHVILLE, TN 37203PHONE: +1 615 301 2800FAX: +1 615 301 2957multifamily.cushwake.com

TABLE OF CONTENTS

INVESTMENT SUMMARY / PG. 01

PROPERTY DESCRIPTION / PG. 09

LOCATION OVERVIEW / PG. 15

APARTMENT MARKET / PG. 25

FINANCIAL ANALYSIS / PG. 31

TIMBERLAKE TOWNHOMES

1 INVESTMENT SUMMARY

INVESTMENT SUMMARY

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TIMBERLAKE TOWNHOMESAddress 230, 240, & 270 Timber Court,

283 & 287 Dunbar Cave Road, 1861, 1871, &1881 Waters Edge, Clarksville, TN 37043

County Montgomery County

Number of Units 48 Units

Year Built 1993-1995

Rentable Area 48,752 SF

Avg. Unit Size 1,016 SF

Site Size 4.46 Acres

Avg. Market Rent $659 (09/30/18)

Avg. Market Rent/SF $0.65

Occupancy 100%

OFFERING HIGHLIGHTS

1QUALITY, WELL-MAINTAINED ASSET Timberlake Townhomes is an exceptionally well-built property featuring brick exteriors. Future ownership can expect low maintenance expenses.

2CLOSE PROXIMITY TO ECONOMIC DRIVERS The property is located just 3 miles from over 22,500 jobs and 10 minutes from 7 major employers, as well as downtown Clarksville.

3VALUE-ADD CANDIDATEThe asset will benefit from a value-add initiative to generate additional annual income and bridge the gap between the property and new construction.

4EXPANDING EDUCATION NEARBYAustin Peay State University (APSU) is located just 7 minutes from the property. APSU is one of the fastest growing universities in the state and experienced a 52% increase in enrollment between 2001 and 2010.

5CASH-FLOWING WITH UPSIDETimberlake Townhomes monthly rents trail the submarket average rent by approximately $68, presenting an opportunity to further boost NOI by 10%.

The Cushman & Wakefield Southeast Multifamily Advisory Group is pleased to present the exclusive listing of the 48-unit Timberlake Townhomes located in Clarksville, Montgomery County, Tennessee. This asset is part of the booming Clarksville MSA, one of the top metros for job growth in Middle Tennessee. Built between 1993 and 1995, Timberlake Townhomes offers an outstanding opportunity to invest in a fully occupied, cash flowing asset with significant upside. The asset’s position just west of Interstate-24 offers residents access to all of Nashville’s major job hubs.



1. QUALITY, WELL-MAINTAINED ASSET 2. CLOSE PROXIMITY TO ECONOMIC DRIVERS

ARCHITECTURALLY APPEALING AND SOLIDLY STRUCTURED

Timberlake Townhomes is an exceptionally well-built property featuring brick exteriors. Future ownership can expect low maintenance expenses.

The property features ample parking, beautiful greenspaces, quiet neighborhood setting, easy access to premier retail and schools, and same level entrance on select units. Timberlake Townhomes also feature private patios and balconies.

270 Timber Court 1881 Waters Edge

240 Timber Court

AMENITY PACKAGE

• Ceiling Fans

• Closet Shelving

• Entry Closets

• Back Patios or Balconies

• Fully Equipped Kitchens

• Individual HVAC

• Linen Closets

• Plush Carpeting

• Separate Dining Areas

• Washer and Dryer Connections

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2. CLOSE PROXIMITY TO ECONOMIC DRIVERS

HANKOOK TIRE PLANT

TRANE MANUFACTURING PLANTGOVERNOR’S SQUARE MALL

UNPARALLELED LOCATION

The property is located just 3 miles from over 22,500 jobs and 10 minutes from 7 major employers, as well as downtown Clarksville.

NEARBY RETAIL

Governor’s Square Mall is only a few minutes from the property. Popular retail in the mall include Dick’s Sporting Goods, Sears, Ross Dress for Less, JCPenney, Dillards, Old Navy, Belk and Best Buy. Adjacent to the mall is a Target and Bed Bath & Beyond.

Clarksville’s strategic location is proximate to major trucking corridors and I-24. Middle TN is one of only five U.S. regions to be fully served by 6 major interstate legs.



3. VALUE-ADD CANDIDATE 4. EXPANDING EDUCATION NEARBY

VALUE-ADD PROVEN IN SUBMARKET

The asset will benefit from a value-add initiative to generate additional annual income and bridge the gap between the property and new construction.

Timberlake Townhomes offers the opportunity to capitalize on a submarket-proven value-add program. New ownership can invest approximately $4,500 per unit into the 48 units to achieve an impressive $100 average market rent premium. The property also features a 5,000 SF basement in one of the buildings that could be converted into storage units for additional monthly income. Year Built 1995

# of Units 66

UPGRADED FEATURES:

• Wood-Look Vinyl Flooring

• Tile Backsplash

• New Door Hardware

• Stainless Steel Appliances

• Ceiling Fans

• Faux Granite Countertops

PREACHER’S MILL COURT

$225-$500Premium Achieved


# of Units 48

PROPOSED UPGRADES:

• Wood-Style Vinyl Flooring

• New Interior Paint Scheme

• Upgraded Cabinetry

• Black or Stainless Steel Appliances

• Brushed Nickel Hardware


$100Proposed Premium

$4,500Cost of Upgrades

26% Return on Investment

270 Timber Court

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4. EXPANDING EDUCATION NEARBY

STRATEGIC EXPANSION PLAN

Austin Peay State University (APSU) is located just 7 minutes from the property. APSU is one of the fastest growing universities in the State of Tennessee and experienced a 52% increase in enrollment between 2001 and 2010. The University plan now expects the school to grow to 13,000 students by the year 2020, and to 15,000 students by 2025.

9,4

01

10,1

88

10,7

23

10,8

73

10,5

97

10,3

99

10,1

11

10,0

99

10,3

44

10,4

63

13,0

00

15,0

00

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020(F)

2025(F)

APSU ENROLLMENT TRENDS

Source: Austin Peay State University

AUSTIN PEAY STATE UNIVERSITY

In 2013, APSU implemented a Master Plan that identified 21 projects to increase the University's capacity for academic and student services, and to improve existing infrastructure. Since the completion of the 2013 Master Plan, APSU has gained new leadership, including President Alisa White. White has approved a new Strategic Plan, with a goal to grow enrollment to 15,000 students.

The school has also acquired major land parcels, including the Jenkins & Wynne Ford and Honda car dealerships and Barnes & Noble and currently has no plans for additional student housing.

52% Enrollment Increase between 2001-2010

15,000 Projected Enrollment

by 2025



5. CASH-FLOWING WITH UPSIDE

$0.64 $0.65

$0.70 $0.70 $0.70

$0.80

$0.91$0.95

$1.09

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Raleigh CourtTownhomes

TimberlakeTownhomes

Oak Arbor Cumberland Manor Parkway Place Preacher's MillCourt Townhomes

Sango Place Highland Park CobblestoneClarksville

PER SQUARE FOOT RENTS IN THE SUBMARKET

STRONG PROPERTY PERFORMANCE

Timberlake Townhomes monthly rents trail the submarket average rent by approximately $68, presenting an opportunity to further boost NOI by 10%.

STRONG PERFORMANCE METRICS

The property yielded over $280k in Total Collections in year-end September 2018. In addition, the property has consistently been 100% occupied.

NATURAL RENT GROWTH ACHIEVABLE

Timberlake Townhomes has one of the lowest per square foot rents in the submarket. In addition to potential value-add premiums, ownership has the opportunity to naturally increase collections significantly through second generation leases, as proven in the marketplace.

$0.44Below Top of Market

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9 INVESTMENT SUMMARYPROPERTY DESCRIPTION

PROPERTY DESCRIPTION

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PROPERTY SUMMARYNumber of Units 48 Units


Stories 2 Stories

Net Rentable Area 48,752 SF

Average Unit Size 1,016 SF

SITE

Address230, 240, & 270 Timber Court, 283 & 287 Dunbar Cave Road, 1861, 1871, & 1881 Waters Edge, Clarksville, TN 37043


Size/Density 4.46 Acres / 10.76 Units per Acre

LocationN side of Dunbar Cave Rd, about 0.5 miles E of Wilma Rudolph Blvd. The property is just 10 minutes SE of Interstate-24.

UTILITIESSERVICE/UTILITY SOURCE/COMPANY PAID BY*

Electric Clarksville Electric Service Resident

Water/Sewer Clarksville Gas & Water Resident

Trash Removal Waste Industries Property

UNIT MIX SUMMARYTYPE # UNITS % UNITS SIZE (SF)*

2BR-1BA 32 67% 986 SF

2BR-1.5BA 12 25% 1,050 SF

2BR-1.5BA 4 8% 1,150 SF

Total / Avg. 48 Units 1,016 SF Avg.

*Unit sizes are based on rent roll.



COMMUNITY AMENITIES• Ample Parking

• Close Proximity to Major Employers

• Close Proximity to Retail and Education

• Professionally Landscaped

• Same Level Entrances *

UNIT FEATURES• Ceiling Fans

• Fully Equipped Kitchens

• Linen Closets and Pantries

• Plush Carpeting

• Private Patios / Balconies

• Separate Dining Areas

• Tile Flooring

• Washer & Dryer Connections

• White Appliances

* Select Units

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15 INVESTMENT SUMMARYLOCATION OVERVIEW

LOCATION OVERVIEW

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CLARKSVILLE: SOLID GROWTH IN NORTHERN TENNESSEE

• Third Lowest Tax Burden (Tennessee) , WalletHub 2017

• #76County for Investment Coming in to Tennessee, Smart Asset 2017

• #19 U.S. City for Job Growth in 2016, 24/7 Wall St./MSN.com

• #6 Deal of the Year in Tennessee (Google Data Center), Southern Business Development Magazine 2016

• Tennessee Named State of the Year, Southern Business & Development 2016

• Top City for Millennials, Money Magazine

2014

• #6 Place Millennials are Moving for Bigger Paychecks, Time 2014

• #5 Fastest Growing City in the Nation, U.S. Census Bureau 2013

• #2 Fastest Growing Metropolitan Statistical Area in the Nation, U.S. Census Bureau 2013

• #1 Best Place to Retire, Bankrate 2013

• Tennessee Named State of the Year, Business Facilities, 2014 and 2013

CLARKSVILLEby the numbers

AwArds And AccolAdes

MSA Population - 2017 285,042

MSA Population - 2010 273,948

Unemployment Rate (August 2018) 4.6%

Key Industries: Manufacturing, Health Care, Education, Defense

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CLARKSVILLE: SOLID GROWTH IN NORTHERN TENNESSEE

Clarksville, the fifth largest city in Tennessee, is situated in northern Tennessee, just eight miles south of the Kentucky border and 45 miles northwest of Nashville. Clarksville is the county seat of Montgomery County, TN and the principal city of the Clarksville Metropolitan Statistical Area which consists of four counties, two in Tennessee (Montgomery and Stewart) and two in Kentucky (Christian and Trigg).

The picturesque, riverfront city is situated at the merger of the Cumberland and Red Rivers and is home to Austin Peay State University, The Leaf-Chronicle (the oldest newspaper in Tennessee), and is 10 miles south of Fort Campbell, United States Army base.

A favorable business climate, quality workforce, central location, and proximity to Nashville make the Clarksville metro area attractive to new and expanding businesses. According to Moody’s Analytics, expansion in

the Clarksville economy is expected to continue, supported by a healthy manufacturing sector and rising incomes. Gains in consumer-driven industries and construction are firm, and growth in average hourly earnings ranks among the best in the state.

New businesses such as Hankook Tires, LG Electronics, and a Google data center are bringing more workers to the Clarksville area and supporting growth in average household incomes.

CLARKSVILLE, TENNESSEE



AUSTIN PEAY STATE UNIVERSITY (APSU)

Nestled in downtown Clarksville, TN, Austin Peay State University (APSU) is one of the fastest growing universities in the State of Tennessee and is a stable contributor to the region’s economy with an economic impact of more than $333M annually.

AUSTIN PEAY STATE UNIVERSITY CAMPUS

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APSU’S BROWNING ADMINISTRATION BUILDING

ABOUT AUSTIN PEAY STATE UNIVERSITY

• $333M Annual economic impact

• Established 1927

• APSU Campus size is 169 acres

• 9,835 Undergraduates

• 888 Postgraduates

• 550 Academic Staff

• 629 Administrative Staff

• Named for Clarksvillian and former Tennessee Governor Austin Peay

• APSU’s enrollment increased 52 percent between 2001 and 2010

• Enrollment is forecast to be 13,000 by 2020 and 15,000 by 2025

• APSU offers 20 graduate degrees, more than 45 undergraduate degrees, and several associate degrees

• Construction is underway on a new $21.3M, 46,000-SF Art and Design Building.

• In 2016, APSU announced a 25-year partnership with Fortera Credit Union to rename Governors Stadium to Fortera Stadium

• APSU opened a $6.7M Maynard Mathematics and Computer Science Building in 2014

• The Sundquist Science Complex features more than 180K SF of classroom, laboratory, and research

• APSU has an accelerated bachelor’s in professional studies, allowing students with an Associate of Applied Science degree to complete a bachelor’s degree in 14 months.

• APSU boasts two Centers of Excellence - the Center of Excellence for the Creative Arts and the Center of Excellence for Field Biology

DAYMAR COLLEGE

OTHER HIGHER EDUCATION INSTITUTIONS

Clarksville offers diverse choices for higher and continuing education with eight institutions in addition to Austin Peay State University.

Other local educational facilities include: Bethel University, Daymar Institute, Miller-Motte Technical College, Clarksville campus of Nashville State Community College, North Central Institute, Tennessee College of Applied Technology, Tennessee Rehabilitation Center, and Troy University.

Tennessee Promise is both a scholarship and mentoring program to increase the number of students that attend college in the state. Students may use the scholarship at any of the state’s community colleges, colleges of applied technology or other eligible institutions offering an associate’s degree program.

CLARKSVILLE-MONTGOMERY COUNTY SCHOOL SYSTEM (CMCSS)

Annual enrollement is 33,050 pre-kindergarten through twelfth grade students in the number one ranked school system in the Sate of Tennessee for academic growth.

• CMCSS is the seventh largest school district in Tennessee.

• CMCSS opened its 39th school, Oakland Elementary, in 2015.

• The district has a 94% graduation rate.

• Employs 4,000 staff.



FORT CAMPBELL PROVIDES STABILITY

Home to the Screaming Eagles, of the 101st Airborne - the Army’s only Air Assault Division, Fort Campbell encompasses 105,068 acres (164 square miles) on the Kentucky-Tennessee boarder between the towns of Hopkinsville, Kentucky and Clarksville, Tennessee.

• The base supports the third largest military population in the Army and the seventh largest in the Department of Defense. Approximately 26,500 soldiers live on base. (Active duty officers 1,884; active duty enlisted 20,511; family members 40,491; retirees 112,629; civilian employees 3,921.)

• Fort Campbell supplies the metro area with a high-quality workforce: The post has created a national model for transitioning military personnel and their spouses into civilian careers, improving the quality of the labor pool and keeping the Clarksville region an attractive location for new employers as a result.

• The possibility of increased defense spending by the current administration adds upside to the outlook, as it could mean more soldiers and funding for infrastructure updates for the post.

NIGHT STALKERS AT FORT CAMPBELL

RECENT ECONOMIC ANNOUNCEMENTS• Google is building a $600M data center in Clarksville and creating 70

to 100 new jobs. Construction started earlier this year.

• Hankook Tire will finish construction in 2017 on its 1.5M-SF, $800M manufacturing facility in Clarksville Business Park that created 1,800 new jobs.

• LG Electronics is building a $250M facility and create 600 jobs starting in 2019.

• In-mold labeling manufacturer Verstraete IML USA is investing $20M and creating 59 new jobs as part of a new facility.

• Manufacturer Nam Yang USA opened a $3M, 16,000-SF facility in 2016 with 10 new jobs.

• Esquire Wire, Inc. recently invested $1.8M and created 60 new jobs.

• In 2016, Clarksville’s Gateway Medical Center became part of Tennova Healthcare, one of Tennessee’s largest health networks. Gateway’s name also changed to Tennova Healthcare - Clarksville. The hospital has 281 beds and employs more than 1,150.

• Manufacturer Akebono Brake Corp. invested in an $48.4M expansion in 2015 with more than 65 new jobs.

• Shiloh Industries invested $20M in a new die casting plant in late 2014, and added 150 new jobs.

GOOGLE $600M DATA CENTER

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MANUFACTURING PAYROLLS GROWING

Motor vehicle parts manufacturing accounts for one-quarter of factory jobs in the Clarksville area, and factory payrolls are growing thanks to firm auto sales and gains in machinery production.

Hankook Tires chose Clarksville for its first North American manufacturing facility. The company is wrapping up construction on its 1.5M-SF, $800M plant that will have more than 1,800 new jobs as output ramps up.

South Korean appliance maker LG Electronics Inc. is building its first U.S. washing machine factory in Clarksville. The plant is expected to open by 2019 and will bring 600 high-paying jobs.

In-mold labeling manufacturer Verstraete IML USA is investing $20M and creating 59 jobs as part of a new facility.

Source: Clarksville Area Chamber of Commerce and Clarksville Montgomery County Industrial Development Board

EMPLOYER JOBS

Clarksville-Montgomery County Schools 4,000

Tennova Healthcare 1,150

Trane Company 1,100

City of Clarksville 1,050

Austin Peay State University 860

Montgomery County Government 850

EMPLOYER JOBS

Agero 750

Convergys 600

Akebono 500

Jostens, Printing & Publishing Div. 400

Bridgestone Metalpha USA, Inc. 375

Hendrickson Trailer Suspensions Systems 320

EMPLOYER JOBS

Letica 315

Florim USA 287

Nyrstar 242

Hollingsworth Oil 145

MW/MB LLC 101

Rivers End Trading Company 90

TENNOVA HEALTHCARE NETWORK

CLARKSVILLE TOP EMPLOYERS

HANKOOK TIRE CLARKSVILLE PLANT



ARTS/CULTURE/RECREATION

Tourism accounted for an influx of $211M into the Clarksville economy in 2016. The city’s RiverWalk is among numerous parks and outdoor recreation venues, and the area is rich in historic sites and museums, as well as numerous shopping and dining attractions. A view of downtown shows why Clarksville is often referred to as a city of spires. The historic courthouse withstood a major tornado in 1999 to remain one of the most majestic courthouses in Tennessee today. Numerous tourism focal points include:

LIBERTY PARK & CLARKSVILLE MARINA

• Cumberland RiverWalk & McGregor Park: The McGregor Park RiverWalk featues one mile of walking trails, picnic areas, a boat ramp into the Cumberland River, the As the River Flows Museum, and more attractions on more than 15 acres.

• Clarksville Blueway - the city’s rivers have various public access points throughout for canoe, kayak, tube, and paddle board enthusiasts.

• Clarksville Greenway - a 4.6-mile path along a former railway allows walking, biking, and skating.

• Roxy Theatre, built in 1947, is located on a corner of the Public Square in the historic downtown section of Clarksville and has been used as a backdrop for numerous photo shoots, films, and documentaries.

• Clarksville City Arboretum - situated along the Cumberland River in Fairgrounds Park and contains more than 30 species of trees.

• Port Royal State Park was the site of one of the earliest colonial communities and trading posts in Middle Tennessee, and now houses numerous trails, including the Trail of Tears National Historic Trail.

• Customs House Museum and Cultural Center is the second-largest museum in the State of Tennessee with more than 35,000 SF of exhibits.

• Fort Defiance Park & Interpretive Center features a well-preserved 1862 Civil War fort, museum, and walking trails.

• Beachaven Vineyards & Winery hosts daily tours and wine tastings.

• Clarksville Speedway, locally owned on more than 82 acres, it houses two tracks: a 1/4-mile banked clay oval dirt track, and 1/8-mile two-lane drag strip.

• Don F. Pratt Memorial Museum was established in 1956 as a division museum for the 101st Airborne Division of the U.S. Army and is located at Fort Campbell.

• Dunbar Cave State Park encompasses 110 acres and is one of the most visited parks in Tennessee.

• Liberty Park & Clarksville Marina is home to scenic plazas, playgrounds, and walkways, and provides local boaters with first-class, permanent dock space.

• Rotary Park is a 111.3-acre nature park frequented by hikers and bicyclists.

DOWNTOWN CLARKSVILLE AND HISTORIC COURTHOUSE

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DOWNTOWN CLARKSVILLE


25 INVESTMENT SUMMARYAPARTMENT MARKET

APARTMENT MARKET

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TIMBER COURT TOWNHOMESRENT COMPARABLES

# UNITS YEAR BUILT OCCUPANCY AVG. SF MKT. RENT EFF. RENTPROPERTY

RENT COMPARABLESEFF. RENT/SF

48S Timberlake Townhomes 1993-1995 100% 1,016 $659 $659 $0.65

74Highland Park1 2006 96% 885 $845 $845 $0.95

23Oak Arbor2 2008 100% 1,000 $703 $703 $0.70

72Cobblestone Clarksville3 1997 96% 600 $654 $654 $1.09

40Raleigh Court Townhomes4 1996 100% 1,050 $675 $675 $0.64

84Sango Place5 1994 90% 758 $706 $687 $0.91

132Cumberland Manor6 1997 100% 911 $639 $639 $0.70

40Parkway Place7 1995 95% 900 $632 $632 $0.70

66Preacher's Mill Court Townhomes8 1995 95% 1,200 $962 $962 $0.80

TOTAL / AVG 66 1998 97% 913 $727 $725 $0.79

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RENT COMPARABLES SUMMARY

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423

5

6

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TIMBER COURT TOWNHOMES


48,752

48

100%

270 Timber Court Clarksville, TN 37043 Montgomery County

Total Units:Year Built:Rentable Area (SF): Occupancy:

1993-1994

Managed by Private Company/Management

UNIT TYPE # UNITS SIZE (SF) EFF. RENT EFF. RENT/SFMKT. RENT

UNIT MIX

2BR-1BA 32 986 $654 $0.66$654

2BR-1.5BA 12 1,050 $662 $0.63$662

2BR-1.5BA 4 1,150 $694 $0.60$694

48TOTAL / AVG 1,016 $659 $0.65$659

HIGHLAND PARK

65,500Rentable Area (SF):

180 Cave RoadClarksville, TN 37043

Total Units: 74

Montgomery County

Occupancy: 96%

Year Built: 2006

Managed by Byers & Harvey Inc.

1


UNIT MIX

2BR-2BA 64 875 $845 $0.97$845

2BR-2BA 10 950 $845 $0.89$845

74TOTAL / AVG 885 $845 $0.95$845

OAK ARBOR


785 Cherrybark LaneClarksville, TN 37040

Total Units: 23

Montgomery County

Occupancy: 100%

Year Built: 2008

Managed by Reliant Realty Property Management

2


UNIT MIX

2BR-1.5BA 23 1,000 $703 $0.70$703

23TOTAL / AVG 1,000 $703 $0.70$703

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COBBLESTONE CLARKSVILLE


2430 Whitfield RoadClarksville, TN 37040

Total Units: 72

Montgomery County

Occupancy: 96%

Year Built: 1997

Managed by GVA Management

3


UNIT MIX

1BR-1BA 72 600 $654 $1.09$654

72TOTAL / AVG 600 $654 $1.09$654

RALEIGH COURT TOWNHOMES


2313 Raleigh CourtClarksville, TN 37043

Total Units: 40

Montgomery County

Occupancy: 100%

Year Built: 1996

Managed by Cider Mill Investment Group

4


UNIT MIX

2BR-1.5BA 40 1,050 $675 $0.64$675

40TOTAL / AVG 1,050 $675 $0.64$675


SANGO PLACE


124 Ballygar StreetClarksville, TN 37043

Total Units: 84

Montgomery County

Occupancy: 90%

Year Built: 1994

Managed by Anderson Real Estate Group

5


UNIT MIX

0BR-1BA 32 550 $605 $1.10$655

1BR-1BA 5 600 $675 $1.13$675

1BR-1BA 10 750 $650 $0.87$650

1BR-1BA, Deluxe 5 800 $825 $1.03$825

2BR-1BA 13 850 $725 $0.85$725

2BR-1.5BA, TH 13 1,000 $755 $0.76$755

3BR-1.5BA, TH 6 1,250 $850 $0.68$850

84TOTAL / AVG 758 $687 $0.91$706

CUMBERLAND MANOR


1121 Riverwood PlaceClarksville, TN 37040

Total Units: 132

Montgomery County

Occupancy: 100%

Year Built: 1997

Managed by Broad Management (NY)

6


UNIT MIX

1BR-1BA 32 655 $540 $0.82$540

2BR-2BA 76 924 $648 $0.70$648

3BR-2.5BA 24 1,211 $744 $0.61$744

132TOTAL / AVG 911 $639 $0.70$639




SANGO PLACE


124 Ballygar StreetClarksville, TN 37043

Total Units: 84

Montgomery County

Occupancy: 90%

Year Built: 1994

Managed by Anderson Real Estate Group

5


UNIT MIX

0BR-1BA 32 550 $605 $1.10$655

1BR-1BA 5 600 $675 $1.13$675

1BR-1BA 10 750 $650 $0.87$650

1BR-1BA, Deluxe 5 800 $825 $1.03$825

2BR-1BA 13 850 $725 $0.85$725

2BR-1.5BA, TH 13 1,000 $755 $0.76$755

3BR-1.5BA, TH 6 1,250 $850 $0.68$850

84TOTAL / AVG 758 $687 $0.91$706

CUMBERLAND MANOR


1121 Riverwood PlaceClarksville, TN 37040

Total Units: 132

Montgomery County

Occupancy: 100%

Year Built: 1997

Managed by Broad Management (NY)

6


UNIT MIX

1BR-1BA 32 655 $540 $0.82$540

2BR-2BA 76 924 $648 $0.70$648

3BR-2.5BA 24 1,211 $744 $0.61$744

132TOTAL / AVG 911 $639 $0.70$639


PARKWAY PLACE


1233-1245 Parkway PlaceClarksville, TN 37042

Total Units: 40

Montgomery County

Occupancy: 95%

Year Built: 1995

Managed by Private Company/Management

7


UNIT MIX

2BR-1BA 40 900 $632 $0.70$632

40TOTAL / AVG 900 $632 $0.70$632

PREACHER'S MILL COURT TOWNHOMES


800 Hidden Spring DriveClarksville, TN 37042

Total Units: 66

Montgomery County

Occupancy: 95%

Year Built: 1995

Managed by Volunteer Properties

8


UNIT MIX

2BR-1.5BA 33 1,200 $825 $0.69$825

2BR-1.5BA 33 1,200 $1,099 $0.92$1,099

66TOTAL / AVG 1,200 $962 $0.80$962

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TWO BEDROOMTIMBER COURT TOWNHOMES

RANKED BY RENT PER UNIT /SFSIZE (SF) EFF. RENT RENT /SFPROPERTY UNIT TYPE

Highland Park 875 $845 $0.97 2BR-2BA

Preacher's Mill Court Townho 1,200 $1,099 $0.92 2BR-1.5BA


Sango Place 850 $725 $0.85 2BR-1BA

Timberlake Townhomes 986 $754 $0.76 2BR-1BA

Sango Place 1,000 $755 $0.76 2BR-1.5BA, TH

Timberlake Townhomes 1,050 $762 $0.73 2BR-1.5BA

Oak Arbor 1,000 $703 $0.70 2BR-1.5BA

Parkway Place 900 $632 $0.70 2BR-1BA

Cumberland Manor 924 $648 $0.70 2BR-2BA


Preacher's Mill Court Townho 1,200 $825 $0.69 2BR-1.5BA


Raleigh Court Townhomes 1,050 $675 $0.64 2BR-1.5BA



TOTAL / AVG 1,020 $755 $0.74

TWO BEDROOM

SIZE (SF) EFF. RENT RENT /SF

RANKED BY RENT PER UNITPROPERTY UNIT TYPE

Preacher's Mill Court Townho 1,200 $1,099 $0.92 2BR-1.5BA



Preacher's Mill Court Townho 1,200 $825 $0.69 2BR-1.5BA



Sango Place 1,000 $755 $0.76 2BR-1.5BA, TH


Sango Place 850 $725 $0.85 2BR-1BA

Oak Arbor 1,000 $703 $0.70 2BR-1.5BA


Raleigh Court Townhomes 1,050 $675 $0.64 2BR-1.5BA



Cumberland Manor 924 $648 $0.70 2BR-2BA

Parkway Place 900 $632 $0.70 2BR-1BA

TOTAL / AVG 1,020 $755 $0.74

= Proposed Value-Add Rents = Current Effective Rents


31 INVESTMENT SUMMARYFINANCIAL ANALYSIS


FINANCIAL ANALYSIS

CUSHMAN & WAKEFIELD


32

TIMBERLAKE TOWNHOMESTIMBER COURT & WATERS EDGE

Units: 48

Year Built: 1993, 1994, 1995

Total Area (SF): 48,752

Site Size (Acres): 4.46

Density (Units Per Acre): 10.76

Occupancy (As of Sep 30, 2018): 100.0%

UNIT TYPE

# OF UNITS

SIZE SQ. FT.

TOTAL SQ. FT.

MARKET RENT

MARKETRENT/SQ. FT.

MONTHLY RENT

VALUE-ADD RENT

VALUE-ADD RENT/SQ. FT.

MONTHLY RENT

2 BR / 1 BA 32 986 31,552 $654 $0.66 $20,915 $754 $0.76 $24,115

2 BR / 1.5 BA 12 1,050 12,600 $662 $0.63 $7,940 $762 $0.73 $9,140

2 BR / 1.5 BA 4 1,150 4,600 $694 $0.60 $2,775 $794 $0.69 $3,175

TOTALS / AVERAGES 48 1,016 48,752 $659 $0.65 $31,630 $759 $0.75 $36,430

Value Add Cost (48 units at $3,500 / Unit) $168,000 2 BR Units $100 Monthly Premium $4,800

Additional Capital Needs $50,000 Annual Premium $57,600

Total Cost $218,000 ROI 26.42%

MARKET RENT / LEASE RENT

230 Timber Court

Clarksville, Tennessee 37043

Montgomery County

UNIT MIX LEASE RENT AFTER UPGRADES

VALUE-ADD / CAPITAL NEEDS

VALUE-ADD ASSUMPTIONS & SUMMARY

RETURN ON INVESTMENTVALUE-ADD RENT PREMIUMS

2 BR100%

Address 270 Timber Court, Clarksville, TN 37043


Number of Units 48 Units


Rentable Area 48,752 SF

Site Size 4.46 Acres

Density 10.76 Units per Acre

Occupancy* 100%

*As of September 30, 2018

TIMBER COURT & WATERS EDGE

Units: 48

Year Built: 1993, 1994, 1995

Total Area (SF): 48,752

Site Size (Acres): 4.46

Density (Units Per Acre): 10.76

Occupancy (As of Sep 30, 2018): 100.0%

UNIT TYPE

# OF UNITS

SIZE SQ. FT.

TOTAL SQ. FT.

MARKET RENT

MARKETRENT/SQ. FT.

MONTHLY RENT

VALUE-ADD RENT

VALUE-ADD RENT/SQ. FT.

MONTHLY RENT

2 BR / 1 BA 32 986 31,552 $654 $0.66 $20,915 $754 $0.76 $24,115

2 BR / 1.5 BA 12 1,050 12,600 $662 $0.63 $7,940 $762 $0.73 $9,140

2 BR / 1.5 BA 4 1,150 4,600 $694 $0.60 $2,775 $794 $0.69 $3,175

TOTALS / AVERAGES 48 1,016 48,752 $659 $0.65 $31,630 $759 $0.75 $36,430

Value Add Cost (48 units at $3,500 / Unit) $168,000 2 BR Units $100 Monthly Premium $4,800

Additional Capital Needs $50,000 Annual Premium $57,600

Total Cost $218,000 ROI 26.42%

MARKET RENT / LEASE RENT

230 Timber Court

Clarksville, Tennessee 37043

Montgomery County

UNIT MIX LEASE RENT AFTER UPGRADES

VALUE-ADD / CAPITAL NEEDS

VALUE-ADD ASSUMPTIONS & SUMMARY

RETURN ON INVESTMENTVALUE-ADD RENT PREMIUMS

2 BR100%


33 INVESTMENT SUMMARYFINANCIAL ANALYSIS

TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH

INCOME1 Scheduled Market Rent $368,512 $7,677 $30,709 $373,340 $7,778 $31,112 $379,560 $7,908 $31,6302 Pro Forma Upgrade Premium 0 0 0 0 0 0 28,800 600 2,4003 Gain/(Loss) to Lease 0 0.0% 0 0 0.0% 0 (817) -0.2% (68)

Total Gross Potential $368,512 $7,677 $30,709 $373,340 $7,778 $31,112 $407,543 $8,490 $33,9624 Vacancy 0 0.0% 0 0 0.0% 0 (20,377) -5.0% (1,698)5 Bad Debt/Write-Offs 0 0.0% 0 0 0.0% 0 (2,038) -0.5% (170)6 Concessions 0 0.0% 0 0 0.0% 0 (408) -0.1% (34)

Net Rental Income $368,512 $7,677 $30,709 $373,340 $7,778 $31,112 $384,721 $8,015 $32,0607 Other Income 0 0 0 0 0 0 13,680 285 1,140

Total Other Income $0 $0 $0 $0 $0 $0 $13,680 $285 $1,140

Total Operating Income $368,512 $7,677 $30,709 $373,340 $7,778 $31,112 $398,401 $8,300 $33,200

EXPENSES8 Utilities 2,882 60 240 2,882 60 240 2,940 61 2459 Trash Removal 4,859 101 405 4,859 101 405 4,956 103 413

10 Pest Control Expense 791 16 66 791 16 66 807 17 67

Subtotal Utilities 8,532 178 711 8,532 178 711 8,703 181 72511 Landscaping 2,134 44 178 2,134 44 178 2,176 45 18112 Repairs & Maintenance 15,019 313 1,252 15,019 313 1,252 29,251 609 2,438

Subtotal Repairs & Maintenance 17,153 357 1,429 17,153 357 1,429 31,428 655 2,61913 General & Administrative 0 0 0 0 0 0 4,800 100 40014 Advertising 0 0 0 0 0 0 2,400 50 20015 Property Management Fee 0 0.0% 0 0 0.0% 0 23,904 6.0% 1,99216 Real Estate Taxes 36,741 765 3,062 36,741 765 3,062 51,754 1,078 4,31317 Property Insurance 20,219 421 1,685 20,219 421 1,685 12,000 250 1,00018 Capital Reserves 13,200 275 1,100 13,200 275 1,100 13,200 275 1,100

Total Operating Expenses $95,845 $1,997 $7,987 $95,845 $1,997 $7,987 $148,188 $3,087 $12,349

NET OPERATING INCOME $272,668 $5,681 $22,722 $277,495 $5,781 $23,125 $250,212 $5,213 $20,851

18 Capital Reserves for the Actuals column has been normalized to $275 per unit.

SEPTEMBER 2018 T-12 ACTUAL

SEPTEMBER 2018 T-9 INCOME / T-12 EXPENSES

CUSHMAN & WAKEFIELDPRO FORMA

CUSHMAN & WAKEFIELD


34

1 Scheduled Market RentThe Scheduled Market Rent of $379,560, or $31,630 per month, is based on the current market rent shown on the Rent Roll dated 9-30-18.

2 Pro Forma Upgrade PremiumThe pro forma assumes the property will begin upgrades in Year 1. Proposed upgrades are expected to take approximately 2 years to complete. The anticipated gain through rent premiums for the upgrades is expected to be around $28,800/year throughout the course of the upgrade period.

3 Gain/(Loss) to LeaseThe pro forma assumes Gain/(Loss) to Lease to be -0.2% of Scheduled Market Rent.

4 VacancyThe pro forma assumes vacancy equivalent to -5.0% of the Gross Potential Income.

5 Bad Debt/Write-OffsThe pro forma assumes Bad Debt/Write-Offs of -0.5% of pro forma Gross Potential Income.

6 ConcessionsPro forma assumes concessions of -0.1% of Gross Potential Income.

7 Other IncomeThe Other Income figure of $13,680 includes processing fees, vending income, application and late fees, etc.

HISTORICAL & PRO FORMA INCOME FOOTNOTES8 Utilities

The Pro forma assumes Utilities of $245 per month.

9 Trash RemovalThe monthly figure of $413 covers Trash Removal.

10 Pest Control ExpenseThe Pro forma sets the Pest Control Expense expense at $67 per month.

11 LandscapingThe Pro forma sets the monthly Landscaping expense at $181.

12 Repairs & MaintenanceThe Repairs & Maintenance figure of $609 per unit covers all supplies for general and preventative maintenance.

13 General & AdministrativeThe General & Administrative expense is based upon $100 per unit. This figure covers all office expenses, including leasing charges (background checks, etc.), as well as any miscellaneous charges.

14 AdvertisingThe Pro forma Advertising expense of $200 per month includes one (1) half-page ad in an apartment publication as well as printing of brochures and other marketing materials.

15 Property Management FeeThe Property Management Fee is a percentage of the Total EGI. The percentage range is between 3% and 5% for most properties, depending on its age, condition, and location. The Pro forma Management Fee is 6.0% of Total Operating Income.

16 Real Estate TaxesTaxes were calculated as follows based on the 2017 assessed value. The next reassessment for Montgomery County is in 2019.

17 Property InsuranceThe Pro forma Property Insurance is assumed to be $250/unit.

18 Capital ReservesThe pro forma Capital Reserves are based on a typical $275/unit.

HISTORICAL & PRO FORMA EXPENSE FOOTNOTES

PROPERTY TAXESState Tennessee 2017 Tax Value $2,131,000County Montgomery County Assessed Value $852,400 City Clarksville Millage Rate 43.099 mills

Real Property Tax $36,738 Tax Assessment Ratio 40% Pro Forma Taxable Value $3,002,000 Tax Parcel ID Number(s) Multiple Assessed Value $1,200,800

2017 Millage Rate 43.099 Pro forma Real Property Tax $51,754

CUSHMAN & WAKEFIELD’S SOUTHEAST MULTIFAMILY ADVISORY GROUP

REGIONAL TRANSACTION LEADERS

CONFIDENTLY GLOBAL, EXPERTLY LOCAL.

The Cushman & Wakefield Southeast Multifamily Advisory Group has built a reputation as one of the most dynamic, professional, and hands-on multifamily teams in the industry. With offices located throughout the Southeast, our team is strategically positioned to serve clients across the spectrum of multifamily investments, from institutional to professional equity to private capital investors. Our long-standing super regional approach to the 9 states and 33 markets ensures the team’s coverage and execution model provides clients greater market intelligence and wider market exposure when selling their assets.

REGIONAL LOCATIONSATLANTA • BIRMINGHAM • CHARLOTTE

LOUISVILLE • NASHVILLE • NEW ORLEANS • RALEIGHLOUISIANA

LARRY SCHEDLERPRINCIPALLARRY G. SCHEDLER & ASSOCIATES, INC.

MIKE KEMETHERVICE CHAIR

ALABAMA, MISSISSIPPI & FLORIDA PANHANDLEJIMMY ADAMSEXECUTIVE MANAGING DIRECTOR

CRAIG HEYDIRECTOR

JOSH JACOBSDIRECTOR

NORTH & SOUTH CAROLINA

WATSON BRYANTEXECUTIVE DIRECTOR

MARC ROBINSONVICE CHAIR

TAI COHENDIRECTOR

JORDAN MCCARLEYEXECUTIVE MANAGING DIRECTOR

GEORGIA PROFESSIONAL EQUITY

JOSHUA GOLDFARBVICE CHAIR

TRAVIS PRESNELLDIRECTOR


TENNESSEEROBBIE O’BRYANDIRECTOR

ROBERT STICKELEXECUTIVE MANAGING DIRECTOR

SOUTHEASTLEADERSHIP TEAMMARC ROBINSONVICE CHAIR

JOSHUA GOLDFARBVICE CHAIR

CHRIS SPAINVICE CHAIR

GEORGIA PRIVATE CAPITAL

NATHAN SWENSONSENIOR DIRECTOR

TYLER AVERITTEXECUTIVE MANAGING DIRECTOR

KENTUCKY

CRAIG COLLINSEXECUTIVE VICE PRESIDENTCOMMERCIAL KENTUCKY, INC.


SOUTHEAST INSTITUTIONAL

JORDAN MCCARLEY, NC & SCEXECUTIVE MANAGING DIRECTOR

ALEX BROWN, SOUTHEASTSENIOR DIRECTOR

ROBERT STICKEL, GA & TNEXECUTIVE MANAGING DIRECTOR

*Market share reflects property volume percent of broker-attributed sales reported to CoStar for AL, Northwest FL, GA, KY, LA, MS, NC, SC and TN

$15 BILLIONIN LAST 5 YEARS

$4.8 BILLIONCLOSED IN 2017

MOST ACTIVESOUTHEAST FIRM 2014-2017*

#1 +34.6% YOY GROWTHIN SALES VOLUME

33.5% #1 MARKET SHARE SOUTHEAST 2017-YE

CONFIDENTIALITY STATEMENTThis Offering Memorandum (OM) was prepared by Cushman & 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 “Target Housing” 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 Owner’s 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 Broker’s 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 & 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 & 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 and/or 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.

©2018 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.

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