berkshire arms · 2020. 12. 8. · jimmy adams executive vice chair +1 205 518 9281...

BERKSHIRE ARMS104 Units | Mobile, AL | LIHTC Asset in Qualified Contract Period

TABLE OF CONTENTS

Investment Summary . . . . . . . . . . . . . . . . 01

Property Description . . . . . . . . . . . . . . 09

Location Overview. . . . . . . . . . . . . . .11

Apartment Market . . . . . . . . . . . . 17

Financial Analysis . . . . . . . . . . 25

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:

JIMMY ADAMS [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.

QUALIFIED CONTRACT PRICE$3,688,377

CONTACT US

2000 SOUTHBRIDGE PARKWAYSUITE 410, BIRMINGHAM, AL 35209PHONE: +1 205 518 9280FAX: +1 205 383 2660multifamily.cushwake.com

GULF STATES TEAM

ANDREW BROWNDIRECTOR+1 205 518 [email protected]

PARKER CALDWELLASSOCIATE+1 205 518 [email protected]

JIMMY ADAMSEXECUTIVE VICE CHAIR+1 205 518 [email protected]

CRAIG HEYMANAGING DIRECTOR+1 205 518 [email protected]

BERKSHIRE ARMS

1 INVESTMENT SUMMARY

INVESTMENT SUMMARY

104 UNITS

1955 YEAR BUILT

$0.68 AVG MKT RENT/SF

$716 AVG MKT RENT

110,240 RENTABLE SF

85.6% OCCUPANCY

11 ACRES

1060 AVG UNIT SF

Mobile, AL 4021 SEABREEZE RD N, 36609

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OFFERING HIGHLIGHTS

1AFFLUENT MIDTOWN LOCATION Situated in the heart of Mobile’s rapidly expanding Midtown, a retail/employment core, Berkshire Arms offers quick access to Downtown and The Port of Mobile.

2PROXIMATE TO MAJOR RETAIL HUB Berkshire Arms residents are within minutes of over 12.1M SF of quality retail space and entertainment options.

3BOOMING MOBILE ECONOMY Mobile is emerging as the US Gulf Coast’s dominant corridor for aerospace and shipping trades, two industries currently experiencing excellent growth nationwide.

4LIMITED NEW COMPETITIVE SUPPLY A significant lack of upcoming construction in Mobile will keep vacancy levels low and spur further rent growth.

The Cushman & Wakefield Southeast Multifamily Advisory Group is pleased to present the OM for the 104-unit Berkshire Arms apartment community located in Mobile, AL. This asset sits within a well-performing multifamily submarket, which has demonstrated excellent rent and occupancy trends over the past 5 years. Located just one mile south of Airport Blvd and two miles west of the I-65 interchange, residents experience convenient access to all of Mobile’s employment opportunities, retail amenities, and leisure activities. Berkshire Arms offers an outstanding opportunity to invest in an exiting-LIHTC asset with strong capitalization potential.

BERKSHIRE ARMS


1. AFFLUENT MIDTOWN LOCATION 2. PROXIMATE TO MAJOR RETAIL HUB

EXCELLENT CONNECTIVITY TO EMPLOYMENT

Situated in the heart of Mobile’s rapidly expanding Midtown, a retail/employment core, Berkshire Arms offers quick access to Downtown and The Port of Mobile.

Midtown Mobile is one of the more affluent areas in the MSA, boasting some of the metro’s top household incomes and home prices on the market. Centralized around a mass of quality retail and The Country Club of Mobile, Midtown attracts a quality demographic that will absorb quality rent space.

Economic growth has been profound in the submarket, capturing a high percentage of Mobile’s commercial projects over the last 5 years (36%). The bulk of this activity has been specifically high-end renovation campaigns, with a substantial lack of land available for new development.

HOUSEHOLD INCOME HEAT MAP

MIDTOWN MOBILE

THE SHOPPES AT BEL AIR - RENOVATIONS

MOBILE CENTRAL RETAIL HUB Midtown Mobile serves as the area’s most popular retail hub. Along with The Shoppes at Bel Air, the area features a mass of big box retail centers such as Mobile Festival Centre (640K SF), Springdale Mall (685K SF), and Pine Brook Shopping Center (186K SF).

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2. PROXIMATE TO MAJOR RETAIL HUB

UPSCALE LOCATION WITH 12.1M+ SF OF RETAIL

Berkshire Arms sits within minutes of 12.1M+ SF of quality retail space and entertainment options.

12.1M+ SFTotal Retail Space in

Midtown

RETAIL

1Shoppes at Bel Air (1.345M SF)Target, Belk, Dillards, Starbucks

2Springdale Mall (685K SF)Sam’s Club, Michaels, Marshalls, Ulta

3 Walmart

4Mobile Festival Centre (640K SF)Bed Bath & Beyond, Academy Sports, Home Depot, hhgregg, Ross

5Pinebrook Center (186K SF) Fresh Market, DSW, TJ Maxx, Whole Foods

6 Publix

7McGowin Park (650K SF)Best Buy, Costco, Dick’s Sporting Goods

EMPLOYMENT

8Springhill Medical Center 1,200 Total Jobs

9AltaPointe1,350 Total Jobs

RECREATION

10 Country Club of Mobile

11 Spring Hill College & Golf Course

12University of South Alabama16,055 Total Enrollees

$350K-$3M+Average Home Prices on Market Near Spring Hill

152K VPDCombined Traffic thru

Airport Blvd/I-85

1

2

3

4

56

7

8

9

10

1112

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2015

PANAMA CANAL EXPANSION

$5B project brought considerable new business to Mobile

AMAZON SORTING CENTER

362K SF, $30M sorting center created 1,000+ jobs

WALMART

2.6M SF distribution center will create 750+ jobs

CONTINENTAL MOTORS

275K SF, $75M manufacturing facility will create 450 jobs

LENZING

$293M project, 163 Jobs

AUSTAL

$500M contract for next 4 years

AIRBUS PLANT

$600M plant development opens, boasting 210,000 SF of industrial space

MOBILE AEROPLEX EXPANSION

Aeroplex receives $56M of capital investment, 300 jobs

SHOPPES AT BEL AIR

$15M capital investment to revamp shopping mall

KIMBERLY CLARK

$75M plant project coming

2016

2018

2019

COASTAL HUB FOR SHIPPING & AEROSPACE

Mobile is emerging as the US Gulf Coast’s dominant corridor for aerospace and shipping trades, two industries currently experiencing excellent growth nationwide.

The city boasts the coast’s major workforces, such as Austal, University of South Alabama, Airbus, and BAE Systems. The recent Panama Canal expansion is anticipated to bring a wealth of continued business to the Port of Mobile. The largest city between New Orleans and Tampa, Mobile is primed for continued population and economic growth in tandem with these industries.

2017

3. BOOMING MOBILE ECONOMY

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MAJOR DEVELOPMENTS HITTING THE MARKET

Local economic momentum is paving the way for major development projects that are enhancing the financial landscape of Mobile.

On January 16, 2019, Airbus broke ground on its new A220 Final Assembly Line. Once fully operational, the assembly line will more than double its current output (4 per month) which will position Mobile as the fourth largest producer of commercial aircraft in the world.

Airbus & Bombardier | $600M | 2020

• Bombardier Inc., in partnership with Airbus, added passenger jets to its portfolio at its Mobile plant in 2018.

• The new $500 million facility is expected to be completed by 2020 and create 600 new jobs.

Continental Motors | 450 jobs | 2020

• Continental Motors Group is developing a $75 Million manufacturing facility in Mobile.

• Located in the Mobile Aeroplex, the 250,000 square foot facility will create approximately 450 jobs.

Shoppes at Bel Air | $15M | 2016

• The Shoppes at Bel Air was unveiled in October 2016, located in the heart of Midtown Mobile.

• The project, initially Bel Air Mall, was revamped by ownership and now represents one of the most attractive retail hubs in the entire city.

Amazon | 362,000 SF | 1,000+ jobs | 2017

• Amazon opened a $30 Million sorting facility in Mobile.

• Located a few miles south of Tillman’s Corner along I-10 the plant is 362,000 SF.

• The facility has created over 1,000 jobs.

Walmart | 2,600,000 SF | 750+ jobs | 2018

• A $135 Million, 2.6 million SF Walmart distribution center was built in Mobile.

• Will directly create 750+ jobs.

• The Walmart development is a major catalyst for the Mobile market, as total container traffic in the Port of Mobile is estimated to continue its strong growth patterns.

MOBILE'S MAJOR DEVELOPMENTS

MOBILE AEROPLEX AIRBUS2,000 Jobs

CONTINENTAL MOTORS $25M, 450 Jobs

SHOPPES AT BEL AIR1,685,000 SF Retail

$30M PROJECT $30M PROJECT 1K+ JOBS1K+ JOBS

$127M PROJECT $127M PROJECT 750+ JOBS750+ JOBS

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LACK OF CONSTRUCTION BOOSTING RENTS

A significant lack of upcoming construction in Mobile will keep vacancy levels low and spur further rent growth.

Only three properties have been delivered to the Mobile market since 2016 (Highland at Spring Hill, Meridian at The Port, and Old Shell Lofts) comprising of only 602 units. Currently there are zero projects in the works for Mobile County.

Mobile currently ranks #10 in the entire country with the highest Demand/Supply Ratio (cities with the highest job growth compared to the number of new multifamily units permitted). Supply will remain constrained for 2019 and 2020 as there are no conventional multifamily developments underway in the Mobile market. A lack of substantial development will help to spur rent growth and keep vacancy levels low.

DELIVERY SINCE 2014

0

100

200

300

400

500

600

700

2014 2015 2016 2017 2018 2019 2020 2021

4. LIMITED COMPETITIVE NEW SUPPLY

APARTMENT DELIVERIES SINCE 1997

DELIVERED

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SUPPLY CONSTRAINED SUBMARKET WITH RENT GROWTH

The supply constraints in Mobile have led to a burgeoning West Mobile submarket. With recent multifamily developments targeting downtown and the CBD, the West Mobile submarket has experienced superb rent growth.

The West Mobile multifamily submarket has experienced considerable growth since Q1 2012 that is expected to continue for the next investor. The submarket has maintained a steady 91%+ occupancy rate in tandem with booming effective rental rates, raising more than 17% from $661 to $774.

SUBMARKET RENT GROWTH

80%

82%

84%

86%

88%

90%

92%

94%

$650

$670

$690

$710

$730

$750

$770

$790

Q12012

Q12013

Q12014

Q12015

Q12016

Q12017

Q12018

Q12019

Q32019

Submarket Effective Rent Submarket Occupancy

17%Effective Rent Growth since Q1 2012

91%Average Occupancy since Q1 2012

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9 INVESTMENT SUMMARYPROPERTY DESCRIPTION

PROPERTY DESCRIPTION

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PROPERTY SUMMARYNumber of Units 104 Units

Year Built 1955

Net Rentable Area 110,240 SF

Average Unit Size 1,060 SF

SITEAddress 4021 Seabreeze Rd N, Mobile AL, 36609

County Mobile County

Size/Density 11.0 Acres / 9.5 Units per Acre

UTILITIESSERVICE/UTILITY PAID BY

HVAC/Hot Water/Cooking Resident

Water/Sewer Property

Trash Removal Property

Cable/Internet & Phone Resident

Pest Control Property

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

2 BR / 1 BA - TH 52 50% 1000 SF

3 BR / 1 BA - TH 52 50% 1120 SF

Total / Avg. 104 Units 1,060 SF Avg.

*Unit sizes are based on the rent roll.

COMMUNITY AMENITIES• Parking

• Property Manager On Site

• Landscaping

• Swimming Pool

• Laundry Facility

• Emergency Maintenance

UNIT FEATURES• Window Coverings

• Kitchen

• Air Conditioning

• Heating

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11 INVESTMENT SUMMARYLOCATION OVERVIEW

MOBILE: CENTER OF GULF COAST AEROSPACE CORRIDOR

LOCATION OVERVIEW

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MOBILE: CENTER OF GULF COAST AEROSPACE CORRIDOR

Mobile is one of Alabama’s largest cities and a significant port on the Gulf of Mexico. The city’s well established water, rail, air, and highway systems makes it a natural distribution center, and this infrastructure has been a catalyst for economic growth.

Mobile is an economic focal point for a surrounding 80-mile region and is the largest gulf coast city between New Orleans and Tampa, positioned 23 miles east of Mississippi and 35 miles west of Florida.

The Mobile MSA is made up of Mobile and Baldwin Counties. Baldwin County is Alabama’s undisputed “King of Growth.” Between 2000 and 2018, the Baldwin County population increased 50%+, more than triple the national growth rate of 16.6%. The county is projected to become the 4th largest in Alabama by 2020.

DOWNTOWN MOBILE

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MAJOR EMPLOYERS

Mobile boasts many major employers. The University of South Alabama’s education and Healthcare Systems are the largest employer in the area. The school has a $3B annual economic impact on the region.

AUSTAL USA HIRES 1,000

Australia-based shipbuilder Austal USA recently completed $100M in expansion and improvements to its Mobile shipyard. Already one of Mobile’s largest employers, Austal added 3,200 more employees for a total of 4,000 jobs in less than four years. Austal’s Mobile River Complex is now considered one of the most modern and innovative shipyards on the continent, with facilities that include a 700,000 SF module manufacturing facility, 59,000 SF assembly bay, and 108,000 SF office complex.

In January 2019, the US Navy awarded the yard at $16.3M contact to conduct extended industrial post-delivery availability work.

AIRBUS WILL HAVE GENERATIONAL INFLUENCE

Mobile’s Airbus facility is a prolific economic anchor and regional employment solidifier for generations to come. The Mobile Airbus Facility was the first U.S. – based production facility for the company. Opened in 2015, Airbus now manufactures A319 and A320 jets at its 1,700-acre Mobile Aeroplex at Brookley, a former AFB site on Mobile Bay.

In January 2019, Airbus broke ground on the company’s new A220 aircraft manufacturing facility. This project created 432 full time jobs for the area. Secretary of the Alabama Department of Commerce, Greg Canfield, called Airbus’ new manufacturing facility a, “powerful catalyst for sustained growth in an industrial sector” for Mobile. This project was completed in May 2020, the 270,000 square foot facility has officially begun the production of the A220 aircraft.

Airbus’s recent expansion in Mobile is one catalyst that could see the company seize the title of world’s largest commercial plane manufacturer. In Q2 2019, Airbus delivered 150% more planes than Boeing, seeing the largest uptick in orders from the A320 (built in Mobile).

AUSTAL USA’S MOBILE SHIPYARD

COMPANY JOBS

Mobile County Public School System 7,500

University of South AL & Medical Facilities 6,000

Infirmary Health System 5,000

Austal 4,000

City of Mobile 2,300

CPSI 1,950

County of Mobile 1,670

AM/NS Calvert 1,600

Providence Hospital 1,540

Springhill Medical Center 1,300

AltaPointe 1,170

Outokumpu Stainless 900

Evonik Industries 800

Source - Mobile Area Chamber of Commerce

TOP EMPLOYERS

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THE PORT OF MOBILE

The Port of Mobile serves as the region’s economic backbone and currently ranks among the nation’s largest in terms of trade tonnage. With an estimated economic impact of $22.4 billion, the port is a key reason businesses like Austal and Airbus have recently set roots in Mobile. The port is responsible for 134,608 direct and indirect jobs in the state with a direct and indirect tax impact of $486.9 million.

The port encompasses a 4K-acre waterfront site with 4M SF of warehouse and open yards on the central Gulf Coast. Over the past decade, the AL State Port Authority has invested more than $700M in a capital expansion program establishing new port facilities including a new container terminal, a new steel terminal, expansion at McDuffie coal terminal, a new rail ferry terminal, new warehouses, and a new turning basin. Recently, a $400M project was announced to widen Mobile shipping channel in order to better host fit New Panamax ships which can carry around 12,500 containers. In addition to this the U.S. Army Corps allocated $274 million to used in expansion of the port.

PORT OF MOBILE

Pinto Island Terminal is a $100 million import terminal is capable of handling annually in excess of five million tons of semi-finished steel slab. The 20-acre terminal consists of 1,000 feet of deep water dock dredged to 45 feet, as well as an automated barge loading system positioned between the ship berth and the shoreline.

4,000Acre Waterfront Site

$700MCapital Expansion Program

4M SFWarehouse & Open Yards

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BALDWIN IS ALABAMA’S FASTEST GROWING COUNTY

With a land mass larger than Rhode Island, Baldwin County is the largest and fastest growing county in the state of Alabama.

Residents flock to Baldwin County for its sought after quality of life – access to beaches, protected wildlife areas, and superior educational system. The Baldwin County school system is the fifth largest in Alabama. The 45-school system pegs the growth rate at 500 students per year, about the size of one new elementary school annually. Baldwin County has sustained a 21% population growth rate since the 2018 census.

DOWNTOWN MOBILE

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MOBILE’S RETAIL

The junction of I-65 and Airport Blvd represents the premier retail destination for the western side of Mobile. This interstate and highway crossroad is a major economic center for one of the nicest areas in Mobile.

THE SHOPPES AT BEL AIR

To the east of I-65 sits The Shoppes at Bel Air, a super-regional shopping mall. Home to over 130 stores, the mall is anchored by Target, Belk, Dillards, and JCPenney. The mall has a total of 1.3M SF of retail space. Texas De Brazil opened a location in the mall in 2018.

Across from the mall is a large concentration of Big-Box retailers: Wal-Mart, Sam’s Club, Best Buy, and Lowe’s.

AIRPORT BOULEVARD RETAIL

To the west of I-65 several retail destinations line Airport Blvd. Festival Centre is home to an Academy Sports and Home Depot. A TJ Maxx, Fresh Market and DSW are located in McGregor Square (167K SF). Next door, the Pinebrook Shopping Center (200K SF) features a Whole Foods (opened in 2015), Books-A-Million and a PetSmart. TRANSPORTATION

Two major interstate highways converge in Mobile. Interstate 10 runs northeast to southwest and Interstate 65 runs north. It is also severed by many major highway systems that radiate from Mobile traveling east, west and north. The area is also served by Mobile Regional Airport and Brookley Aeroplex.

In 2019 the Downtown Airport at Brookley Air Field opened. At the time of opening the $8 million terminal had two gates, but had plans to expand. The city hopes to move all passenger services to Brookley with it being more accessible for those coming from Baldwin County. Brookley Aeroplex also serves corporate, cargo and private aircraft.

The other airport in Mobile is the Mobile Regional Airport. It has direct connections to four major hub airports. It is served by United Airlines, Delta, and American Eagle.

THE SHOPPES AT BEL AIR

DOWNTOWN MOBILE

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17 INVESTMENT SUMMARYAPARTMENT MARKET

APARTMENT MARKET

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BERKSHIRE ARMSRENT COMPARABLES

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

RENT COMPARABLESEFF. RENT/SF

104Berkshire ArmsS 1955 86% 1,060 $716 $714 $0.67

675Estates at Lafayette Square1 1972 92% 1,070 $923 $923 $0.86

452Hamptons at Pine Bend2 1979 96% 942 $678 $678 $0.72

384Windsor Place3 1982 96% 1,084 $824 $814 $0.75

587Yester Oaks4 1972 89% 1,022 $763 $763 $0.75

130Barrington Park5 1975 87% 946 $764 $764 $0.81

248Cimarron Ridge6 1980 92% 696 $723 $672 $0.97

224Autumn Woods7 1973 95% 879 $714 $714 $0.81

253Sandpiper Townhomes8 1974 95% 1,189 $839 $835 $0.70

TOTAL / AVG 340 1974 92% 987 $772 $764 $0.77

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RENT COMPARABLES SUMMARY

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110,240Rentable Area (SF):

4021 N Seabreeze RoadMobile, AL 36609

Total Units: 104

Mobile County

Occupancy: 86%

Year Built: 1955

Managed by The Walden Group (fka Schorr Investments)

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

UNIT MIX

2BR-1BA, TH 52 1,000 $652 $0.65$645

3BR-1BA, TH 52 1,120 $775 $0.69$787

104TOTAL / AVG 1,060 $714 $0.67$716

ESTATES AT LAFAYETTE SQUARE


900 Downtowner BoulevardMobile, AL 36609

Total Units: 675

Mobile County

Occupancy: 92%

Year Built: 1972

Managed by Foshee Management Company

1


UNIT MIX

1BR-1BA 104 688 $782 $1.14$782

1BR-1BA 4 803 $801 $1.00$801

1BR-1BA, TH 57 805 $791 $0.98$791

1BR-1BA 11 860 $906 $1.05$906

2BR-1BA 36 947 $891 $0.94$891

2BR-1BA 52 1,002 $861 $0.86$861

2BR-1.5BA, TH 135 1,130 $937 $0.83$937

2BR-1.5BA, TH 6 1,211 $936 $0.77$936

2BR-2BA 32 1,045 $943 $0.90$943

2BR-2.5BA, TH 76 1,276 $1,027 $0.80$1,027

3BR-1.5BA, TH 61 1,284 $1,002 $0.78$1,002

3BR-2BA 8 1,257 $1,047 $0.83$1,047

3BR-2.5BA, TH 93 1,371 $1,043 $0.76$1,043

675TOTAL / AVG 1,070 $923 $0.86$923

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HAMPTONS AT PINE BEND


1030 Montlimar DriveMobile, AL 36609

Total Units: 452

Mobile County

Occupancy: 96%

Year Built: 1979

Managed by Foshee Management Company

2


UNIT MIX

1BR-1BA 88 695 $570 $0.82$570

1BR-1BA, TH 88 750 $595 $0.79$595

2BR-1BA 58 1,008 $685 $0.68$685

2BR-1BA 57 1,014 $680 $0.67$680

2BR-1.5BA, TH 60 1,050 $745 $0.71$745

2BR-2BA 21 1,006 $735 $0.73$735

2BR-2BA 20 1,008 $740 $0.73$740

3BR-2BA, TH 60 1,300 $840 $0.65$840

452TOTAL / AVG 942 $678 $0.72$678

WINDSOR PLACE


3661 Airport BoulevardMobile, AL 36608

Total Units: 384

Mobile County

Occupancy: 96%

Year Built: 1982

Managed by Provence Real Estate LLC

3


UNIT MIX

1BR-1BA, TH 96 800 $700 $0.88$708

1BR-1BA 56 995 $751 $0.75$769

2BR-1.5BA, TH 76 1,100 $818 $0.74$830

2BR-1.5BA, TH 32 1,200 $837 $0.70$862

2BR-2BA 76 1,304 $905 $0.69$913

2BR-2.5BA, TH 36 1,220 $869 $0.71$856

3BR-2BA, TH 4 1,500 $1,193 $0.80$1,195

3BR-2BA 8 1,575 $1,205 $0.77$1,202

384TOTAL / AVG 1,084 $814 $0.75$824

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YESTER OAKS


146 Yester Oaks DriveMobile, AL 36608

Total Units: 587

Mobile County

Occupancy: 89%

Year Built: 1972


4


UNIT MIX

1BR-1BA, TH 288 822 $682 $0.83$682

2BR-1BA 12 1,000 $704 $0.70$704

2BR-1.5BA, TH 158 1,120 $769 $0.69$769

2BR-1.5BA, TH 82 1,220 $779 $0.64$779

2BR-2BA 1 1,270 $867 $0.68$867

3BR-2.5BA, TH 46 1,585 $1,238 $0.78$1,238

587TOTAL / AVG 1,022 $763 $0.75$763

BARRINGTON PARK


442 Cottage Hill RoadMobile, AL 36606

Total Units: 130

Mobile County

Occupancy: 87%

Year Built: 1975

Managed by ROCO Real Estate

5


UNIT MIX

1BR-1BA 24 637 $650 $1.02$650

2BR-1BA 49 978 $720 $0.74$720

2BR-2BA 47 959 $800 $0.83$800

3BR-2.5BA, TH 10 1,472 $1,090 $0.74$1,090

130TOTAL / AVG 946 $764 $0.81$764

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CIMARRON RIDGE


6427 Grelot RoadMobile, AL 36695

Total Units: 248

Mobile County

Occupancy: 92%

Year Built: 1980

Managed by Alexander Properties Group, Inc. (Atl)

6


UNIT MIX

1BR-1BA 81 548 $595 $1.09$651

1BR-1BA, R 7 548 $672 $1.23$660

1BR-1BA 37 657 $675 $1.03$700

1BR-1BA, R 7 657 $714 $1.09$735

1BR-1BA 39 669 $665 $0.99$700

1BR-1BA, R 5 669 $681 $1.02$745

2BR-2BA 30 917 $758 $0.83$825

2BR-2BA 32 917 $759 $0.83$825

2BR-2BA, R 6 917 $745 $0.81$875

2BR-2BA, R 4 917 $758 $0.83$875

248TOTAL / AVG 696 $672 $0.97$723

AUTUMN WOODS


101 Foreman RoadMobile, AL 36608

Total Units: 224

Mobile County

Occupancy: 95%

Year Built: 1973

Managed by Sealy Management Company, Inc.

7


UNIT MIX

1BR-1BA 48 610 $614 $1.01$614

2BR-2BA 100 870 $711 $0.82$711

3BR-2BA 76 1,060 $779 $0.73$779

224TOTAL / AVG 879 $714 $0.81$713

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SANDPIPER TOWNHOMES


4950 Government BoulevardMobile, AL 36693

Total Units: 253

Mobile County

Occupancy: 95%

Year Built: 1974


8


UNIT MIX

1BR-1BA, TH 44 850 $676 $0.80$652

2BR-1.5BA, TH 15 1,050 $771 $0.73$778

2BR-1.5BA, TH 59 1,100 $788 $0.72$799

2BR-1.5BA, TH 61 1,200 $820 $0.68$829

3BR-1.5BA, TH 20 1,550 $954 $0.62$964

3BR-2.5BA, TH 20 1,350 $961 $0.71$967

3BR-2.5BA, TH 23 1,450 $983 $0.68$999

4BR-2.5BA, TH 11 1,650 $1,128 $0.68$1,140

253TOTAL / AVG 1,189 $835 $0.70$839

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

Estates at Lafayette Square 1,257 $1,047 $0.83 3BR-2BA

Windsor Place 1,500 $1,193 $0.80 3BR-2BA, TH

Yester Oaks 1,585 $1,238 $0.78 3BR-2.5BA, TH

Estates at Lafayette Square 1,284 $1,002 $0.78 3BR-1.5BA, TH

Windsor Place 1,575 $1,205 $0.77 3BR-2BA


Barrington Park 1,472 $1,090 $0.74 3BR-2.5BA, TH

Autumn Woods 1,060 $779 $0.73 3BR-2BA

Sandpiper Townhomes 1,350 $961 $0.71 3BR-2.5BA, TH

Berkshire Arms 1,120 $775 $0.69 3BR-1BA, TH


Hamptons at Pine Bend 1,300 $840 $0.65 3BR-2BA, TH


TOTAL / AVG 1,375 $1,008 $0.73

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THREE BEDROOM

SIZE (SF) EFF. RENT RENT /SF

RANKED BY RENT PER UNITPROPERTY UNIT TYPE

Yester Oaks 1,585 $1,238 $0.78 3BR-2.5BA, TH

Windsor Place 1,575 $1,205 $0.77 3BR-2BA

Windsor Place 1,500 $1,193 $0.80 3BR-2BA, TH

Barrington Park 1,472 $1,090 $0.74 3BR-2.5BA, TH

Estates at Lafayette Square 1,257 $1,047 $0.83 3BR-2BA






Hamptons at Pine Bend 1,300 $840 $0.65 3BR-2BA, TH

Autumn Woods 1,060 $779 $0.73 3BR-2BA


TOTAL / AVG 1,375 $1,008 $0.73

CUSHMAN & WAKEFIELD

CUSHMAN & WAKEFIELD

BERKSHIRE ARMS

24

BERKSHIRE ARMS

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

Estates at Lafayette Square 947 $891 $0.94 2BR-1BA

Estates at Lafayette Square 1,045 $943 $0.90 2BR-2BA


Barrington Park 959 $800 $0.83 2BR-2BA

Estates at Lafayette Square 1,130 $937 $0.83 2BR-1.5BA, TH

Cimarron Ridge 917 $759 $0.83 2BR-2BA

Cimarron Ridge 917 $758 $0.83 2BR-2BA, R


Autumn Woods 870 $711 $0.82 2BR-2BA




Windsor Place 1,100 $818 $0.74 2BR-1.5BA, TH



Hamptons at Pine Bend 1,008 $740 $0.73 2BR-2BA




Hamptons at Pine Bend 1,050 $745 $0.71 2BR-1.5BA, TH

Yester Oaks 1,000 $704 $0.70 2BR-1BA


Windsor Place 1,304 $905 $0.69 2BR-2BA

Yester Oaks 1,120 $769 $0.69 2BR-1.5BA, TH


Yester Oaks 1,270 $867 $0.68 2BR-2BA





TOTAL / AVG 1,065 $800 $0.76

TWO BEDROOM

SIZE (SF) EFF. RENT RENT /SF

RANKED BY RENT PER UNITPROPERTY UNIT TYPE





Windsor Place 1,304 $905 $0.69 2BR-2BA

Estates at Lafayette Square 947 $891 $0.94 2BR-1BA


Yester Oaks 1,270 $867 $0.68 2BR-2BA













Hamptons at Pine Bend 1,050 $745 $0.71 2BR-1.5BA, TH





Autumn Woods 870 $711 $0.82 2BR-2BA

Yester Oaks 1,000 $704 $0.70 2BR-1BA




TOTAL / AVG 1,065 $800 $0.76

CUSHMAN & WAKEFIELD

BERKSHIRE ARMS

25 INVESTMENT SUMMARYFINANCIAL ANALYSIS

FINANCIAL ANALYSIS

CUSHMAN & WAKEFIELD

BERKSHIRE ARMS

26

BERKSHIRE ARMS

Units: 104

Year Built: 1955 Total Area (SF): 110,240

Site Size (Acres): 11.00

Density (Units Per Acre): 9.45

Occupancy (As of Sep 30, 2020): 85.6%

UNIT TYPE

# OF UNITS

SIZE SQ. FT.

TOTAL SQ. FT.

MARKET RENT

MARKETRENT/SQ. FT.

MONTHLY RENT

ANNUAL RENT

# UNITS OCCUPIED LEASE RENT

LEASE RENT/SQ. FT.

2 BR / 1 BA - TH 52 1,000 52,000 $645 $0.65 $33,540 $402,480 50 $652 $0.65

3 BR / 1 BA - TH 52 1,120 58,240 $787 $0.70 $40,924 $491,088 39 $775 $0.69

TOTALS / AVERAGES 104 1,060 110,240 $716 $0.68 $74,464 $893,568 89 $706 $0.67

COMMENTS

TYPE OF SERVICE

Electric

Water & Sewer

Natural Gas

Trash Removal

n/a

n/a

n/a

n/a

UTILITIES

PROVIDER SEPARATELYMETERED

LEASE RENTMARKET RENT

4021 Seabreeze Rd N

Mobile, Alabama 36609

Mobile

UNIT MIX

Yes

No

No

n/a

Tenant

Property

-

-

-

-

None.PAID BY MONTHLY FEE

Common Areas

Property

2 BR50%

3 BR50%

11/16/20202:50 PM p3

BERKSHIRE ARMS

27 INVESTMENT SUMMARYFINANCIAL ANALYSIS

TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTHINCOME

1 Scheduled Market Rent $867,792 $8,344 $72,316 $893,568 $8,592 $74,4642 Gain/(Loss) to Lease (18,585) -2.1% (1,549) 0 0.0% 0

Total Gross Potential $849,207 $8,165 $70,767 $893,568 $8,592 $74,4643 Vacancy (94,401) -11.1% (7,867) (44,678) -5.0% (3,723)

Non-Revenue Units (2,052) -0.2% (171) (1,787) -0.2% (149)

Down Units (22,912) -2.7% (1,909) 0 0.0% 04 Bad Debt/Write-Offs (47,029) -5.5% (3,919) (26,807) -3.0% (2,234)5 Concessions (6,854) -0.8% (571) (8,936) -1.0% (745)

Net Rental Income $675,959 $6,500 $56,330 $811,360 $7,802 $67,613

Other Income 10,279 99 857 13,000 125 1,083

Total Other Income $10,279 $99 $857 $13,000 $125 $1,083

Total Operating Income $686,238 $6,598 $57,187 $824,360 $7,927 $68,697

EXPENSES

Electric - Common Area $6,775 $65 565 $6,911 $66 576

Electric - Vacant 11,719 113 977 11,953 115 996

Natural Gas 588 6 49 600 6 50

Water/Sewer 66,864 643 5,572 68,201 656 5,683

Trash Removal 23,336 224 1,945 23,803 229 1,984

Telephone/Internet Expense 6,845 66 570 6,982 67 582

Subtotal Utilities 116,127 1,117 9,677 118,450 1,139 9,871

Repairs & Maintenance 143,214 1,377 11,935 67,600 650 5,633

Subtotal Repairs & Maintenance 143,214 1,377 11,935 67,600 650 5,633

Payroll & Burden 144,288 1,387 12,024 124,800 1,200 10,400

General & Administrative 55,664 535 4,639 26,000 250 2,167

Advertising 6,578 63 548 6,760 65 563

Professional Fees 27,952 269 2,329 28,080 270 2,3406 Property Management Fee 20,114 2.9% 1,676 28,853 3.5% 2,4047 Real Estate Taxes 39,197 377 3,266 39,197 377 3,2668 Property Insurance 65,405 629 5,450 57,972 557 4,8319 Capital Reserves 31,200 300 2,600 31,200 300 2,600

Total Operating Expenses $649,739 $6,247 $54,145 $528,911 $5,086 $44,076

NET OPERATING INCOME $36,499 $351 $3,042 $295,449 $2,841 $24,621

CUSHMAN & WAKEFIELDPRO FORMA

Unless otherwise noted on the footnotes page, Cushman & Wakefield Pro forma figures are based on a 2.0% increase over the respective September 2020 T-12 Actual figure.

SEPTEMBER 2020 T-12 ACTUAL

11/16/20202:50 PM p1

CUSHMAN & WAKEFIELD

BERKSHIRE ARMS

28

HISTORICAL & PRO FORMA INCOME FOOTNOTES

1 Scheduled Market RentThe Scheduled Market Rent of $893,568, or $74,464 per month, is based on the current market rent shown on the Rent Roll dated 9-30-20.

2 Gain/(Loss) to LeaseThe pro forma assumes Gain/(Loss) to Lease to be 0.0% of Scheduled Market Rent.

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

4 Bad Debt/Write-OffsThe pro forma assumes Bad Debt/Write-Offs of -3.0% of pro forma Gross Potential Income.

5 ConcessionsPro forma assumes concessions of -1.0% of Gross Potential Income.HISTORICAL & PRO FORMA EXPENSE FOOTNOTES

6 Property Management FeeThe pro forma Management Fee is 3.5% of Total Operating Income.

7 Real Estate Taxes

8 Property InsuranceThe subject property is located in Flood Zone(s) X.The pro forma Property Insurance is assumed to be $557/unit.

9 Capital ReservesThe pro forma Capital Reserves are based on a typical $300/unit.

Property TaxesState Alabama 2019 Tax Value $2,900,100County Mobile Assessed Value $580,020City 0 Millage Rate 63.500 mills

Real Property Tax $36,831Tax Assess Ratio 20% Fee & Interest $2,366Tax Parcel ID (s) 0 $028 08 38 4 001 064 28 08 38 4 001 083 Personal Prop/Bus Tax $028 08 38 4 001 063 28 08 38 4 004 076 2019 Total Property Taxes $39,197

11/16/20202:50 PM p2

* Market share reflects broker-attributed sales reported to CoStar for the Top-10 most active brokerage firms for AL, Northwest FL, GA, KY, LA, MS, NC, SC and TN. AR & TX excluded as expansion territories.

MOST ACTIVESOUTHEAST FIRM 2014-2020*

#1 42.5% #1 MARKET SHARE SOUTHEAST YTD 2020*

$1.74B RECORD-BREAKING THIRD QTR 2020

$21 BILLIONIN LAST 4 YEARS

$7.2 BILLIONCLOSED IN 2019

ATLANTA MIKE KEMETHERExecutive Vice Chair

TRAVIS PRESNELLSenior Director

GEORGIATAYLOR BIRDDirector

NELSON ABELSDirector

ATLANTA PRIVATE CAPITALTYLER AVERITTExecutive Vice Chair

NATHAN SWENSONManaging Director

KENTUCKYMIKE KEMETHERExecutive Vice Chair

CRAIG COLLINSSenior Director, Commercial Kentucky Inc.

LOUISIANAMIKE KEMETHERExecutive Vice Chair

LARRY SCHEDLERPrincipal, Larry G. Schedler & Associates, Inc.

GULF STATES & ARKANSASJIMMY ADAMSExecutive Vice Chair

CRAIG HEYManaging Director

ANDREW BROWNDirector

MARTIN BYNUMDirector

CAROLINAS PRIVATE CAPITALWATSON BRYANTVice Chair

PAUL MARLEYSenior Director

BROOKS COLQUITTDirector

CAROLINASJORDAN MCCARLEYExecutive Vice Chair

MARC ROBINSONExecutive Vice Chair

TAI COHENSenior Director

TEXASJOHN CARRDirector

BEN FULLERDirector

SUNBELT INSTITUTIONALMARC ROBINSONExecutive Vice Chair

ROBERT STICKELExecutive Vice Chair

ALEX BROWNManaging Director

CHRIS SPAINVice Chair

SUNBELT MULTIFAMILY ADVISORY GROUP

29Brokers

11States

1Team

65Team Members

LOUISVILLE

RALEIGH

NASHVILLE

BIRMINGHAM

DALLAS

ROGERS

HOUSTON

AUSTIN

CHARLOTTE

CHARLESTONATLANTA

SAN ANTONIO

AUGUSTA

NEW ORLEANS

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.

©2020 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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