www.cbremarketplace.com/boho4w 01. QUICK LOOK 7 02. INVESTMENT NUMBERS 11 03. INVESTMENT STORY Demographic of the Future 21 Location of the Future 29 Property of the Future 45 04. PROPERTY 57 05. MULTIFAMILY MARKET 77 CONTENTS THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW DRAFT / 05-16-14 4 / BOHO4W COMMUNICATION All communication, inquiries and requests should be addressed to the CBRE Team, as representatives of the Seller. Management at the property should not be contacted directly. PROPERTY VISITS Interested investors are required to schedule a time to meet with the CBRE team to tour the asset and discuss the merits of the offering. Please contact a member of the marketing team with any questions. DOCUMENT CENTER Investors agreeing to the terms and conditions set forth in the confdentiality agreement can expect an invitation to a password protected document center containing electronic forms of the offering memorandum, operating statements, rent roll, and other information that should be useful in your evaluation of the property. For questions regarding the document center please contact Rhonda Masterson at 404.923.1430. www.cbremarketplace.com/boho4w MALCOLM McCOMB 404.923.1421 malcolm.mccomb@cbre.com PAUL BERRY 404.923.1425 paul.berry@cbre.com KEVIN GEIGER 404.923.1422 kevin.geiger@cbre.com JOHN WHITLOW 404.923.1423 john.whitlow@cbre.com COLLEEN HENDRIX 404.923.1455 colleen.hendrix@cbre.com CBRE ATLANTA 3280 Peachtree Road NE Suite 1400 Atlanta, Georgia 30305 404.504.7900 main 404.923.1560 fax www.cbre.com/mhg CBRE CONTACTS A CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY 5 01. QUICK LOOK / A CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY 6 / BOHO4W 01. QUICK LOOK 7 01. QUICK LOOK / BOHO4W is a visionary new property adjacent to Historic Fourth Ward Park (H4WP) on the BeltLines Eastside Trail. It is also a forward- thinking investment that is poised to outperform the market. From its location in the fast evolving Old Fourth Ward, to its cutting edge ber to the unit (FTTU) broadband infrastructure, BOHO4W is positioned to seize the future. I look to the future because thats where Im going to spend the rest of my life.
~ George Burns THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW PROPERTY SUMMARY Units 276 Rentable SF (gross) 246,464 Rentable SF (heated) 232,234 Average Unit Size (gross) 893 Average Unit Size (heated) 841 Year Completed 2014 Current Average Rent (5/4/14) $1,534 Current Average Rent/SF (heated) $1.82 % Leased (5/4/14) 56%
477 WILMER STREET NE - ATLANTA, GA 30308 8 / BOHO4W Demographic of the Future Location of the Future Product of the Future What if the countrys rental population is about to change dramatically, is your asset an exact match for the way the new population wants to live? To understand the power of BOHO4W, it is important to understand how rapidly the future of multifamily will be changing. In a short 11 years, Generation Y, the cohort between ages 10 and 32, will account for 75% of the workforce. BOHO4W understands what this game- changing demographic group wants and BOHO4W delivers. What if the same property is also in the sweet spot of an extensive urban renewal project, one that will supercharge growth for decades? Core Neighborhood The Old Fourth Ward (O4W) neighborhood, once considered edgy, has reached core status in recent years. Anchored by Virginia Highlands and Inman Park, this pocket is rock solid with demand. Location Infection Point Atlantas BeltLine is still in its infancy. While the Eastside Trail and Historic Fourth Ward Park have served as the catalyst for a remarkable transformation, more is yet to come. Its still early in terms of getting in on the action. Demand is about to surge. Superior Site BOHO4W got in early and secured one of the best locations along the BeltLine, a spot surrounded by authentic amenities and situated on the front row of Historic Fourth Ward Park (H4WP). Later developments will have to stake claims on lesser locations, if they can secure land at all. What if you invest in a new property that has a technology advantage so ahead-of-the-game, that it will deliver a better resident prole, increase rents, and reduce turnover for years to come? Gigabit Internet Speed: 100x Faster than Cable BOHO4Ws investment in FTTU broadband infrastructure allows BOHO4W to deliver content faster than any property in Atlanta. It is a rare frst-mover advantage that has helped BOHO4W attract the right target residents from the start. Whats more, the technology competitive advantage supports higher rents and better retention. Forward-Looking Design of Unit Interiors Residents live large with well-designed, open foorplans with quality storage space incorporated in each unit. They also appreciate details like skyline and H4WP views, granite and quartz countertops, 9 and 10 ceiling heights, and other upscale fnishes. Spectacular Amenities that Build Community BOHO4W is the only property on the BeltLine with a pool overlooking Historic Fourth Ward Park. A pool cabana room, art studio and outdoor lounge area offer plenty of social spaces. 9 01. QUICK LOOK / BOHO4W Single Family Homes and Townhomes $450,000-$700,000 R a l p h
M c G i l l
B l v d Glen Iris Drive N o r t h
A v e n u e Highland Dog Training Ponce City Market GA Power Equipment Yard Downtown: 118,000 Jobs Midtown: 81,000 Jobs Single Family Homes $250,000-$450,000 The Masquerade Concert Venue Whole Foods Market Fre e d o m P a rk w a y Single Family Homes $500,000-$1.3M Historic Old 4th Ward Park Future Entrance to Beltline BOHO4W Single Family Homes and Townhomes $450,000-$700,000 R a l p h
M c G i l l
B l v d Glen Iris Drive N o r t h
A v e n u e Highland Dog Training Ponce City Market GA Power Equipment Yard Downtown: 118,000 Jobs Midtown: 81,000 Jobs Single Family Homes $250,000-$450,000 The Masquerade Concert Venue Whole Foods Market Fre e d o m P a rk w a y Single Family Homes $500,000-$1.3M Historic Old 4th Ward Park Future Entrance to Beltline BOHO4W is located on the Historic Fourth Ward Park, overlooking the parks amphitheater, lake and walking trails. The property is walkable to Ponce City Market, the Eastside Trail of the Atlanta BeltLine, and many restaurants, barsand nightlife. AERIAL IN PRODUCTION - FPO 10 / BOHO4W 02. INVESTMENT NUMBERS 11 02. INVESTMENT NUMBERS / Investment Summary PROPERTY SUMMARY Units 276 Rentable SF (gross) 246,464 Rentable SF (heated) 232,234 Average Unit Size (gross) 893 Average Unit Size (heated) 841 Year Completed 2014 Current Average Rent (5/4/14) $1,534 Current Average Rent/SF (heated) $1.82 % Leased (5/4/14) 56%
FY1 FY2 FY3 Current Market Rents $423,365 $440,299 $457,911 Rent Increase (Market) 4.0% 4.0% 4.0% Scheduled Market Rents $440,299 $457,911 $476,228 Loss to Lease 2.0% 2.0% 2.0% Gross Potential Rent $431,493 $448,753 $466,703 Vacancy Loss 5.0% 5.0% 5.0% Concessions 0.0% 0.0% 0.0% Bad Debt Loss 0.3% 0.3% 0.3% Non-Revenue Units 0.8% 0.8% 0.8% Net Rental Income $405,421 $421,672 $438,575 Utility Reimbursements 19,279 3.0% 3.0% Parking & Storage Income 6,250 3.0% 3.0% Broadband Income 11,183 3.0% 3.0% Other Income 9,795 3.0% 3.0% Total Income $451,929 $469,575 $487,914
ANNUAL EXPENSES PER UNIT
FY1 FY2 FY3 Payroll $1,241 $1,272 $1,304 Gas & Electric 302 309 317 Water & Sewer 685 702 719 Trash Removal 204 209 214 Repairs & Maintenance 250 256 263 Turnover Related 175 179 184 Landscaping 115 118 121 Marketing & Advertising 250 256 263 General & Administrative 200 205 210 Broadband Service 660 677 693 Controllable Expenses $4,082 $4,184 $4,288 Management Fee 491 510 530 Taxes 2,736 2,804 2,874 Insurance 190 195 200 Total Operating Expenses $7,499 $7,693 $7,892 Replacement Reserves 150 175 200 Total Expenses $7,648 $7,868 $8,092 Financial Analysis 13 02. INVESTMENT NUMBERS / STABILIZED PRO FORMA
FY1 FY1/Unit FY2 FY3 FY4 FY5 FY6 FY7 FY8 Current Market Rents $5,080,377 $18,407 $5,283,592 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787 Rent Increase (Market) 203,215 736 211,344 219,797 200,016 207,016 214,262 221,761 229,523 Scheduled Market Rents $5,283,592 $19,143 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787 $6,787,310 Loss to Lease (105,672) (383) (109,899) (114,295) (103,508) (107,131) (110,880) (114,761) (118,778) Gross Potential Rent 5,177,920 18,761 5,385,037 5,600,438 5,811,240 6,014,634 6,225,146 6,443,026 6,668,532 Vacancy Loss (258,896) (938) (269,252) (280,022) (290,562) (300,732) (311,257) (322,151) (333,427) Concessions - - - - - - - - - Bad Debt Loss (12,945) (47) (13,463) (14,001) (14,528) (15,037) (15,563) (16,108) (16,671) Non-Revenue Units (41,023) (149) (42,253) (43,521) (44,827) (46,171) (47,557) (48,983) (50,453) Net Rental Income $4,865,056 $17,627 $5,060,069 $5,262,894 $5,461,323 $5,652,694 $5,850,769 $6,055,784 $6,267,981 Utility Reimbursements 231,343 838 238,283 245,432 252,795 260,379 268,190 276,236 284,523 Parking & Storage Income 75,000 272 77,250 79,568 81,955 84,413 86,946 89,554 92,241 Broadband Income 134,201 486 138,227 142,374 146,645 151,044 155,576 160,243 165,050 Other Income 117,544 426 121,070 124,702 128,444 132,297 136,266 140,354 144,564 Total Income $5,423,144 $19,649 $5,634,900 $5,854,970 $6,071,161 $6,280,827 $6,497,746 $6,722,170 $6,954,359 Payroll $342,514 $1,241 $351,077 $359,854 $368,850 $378,071 $387,523 $397,211 $407,142 Gas & Electric 83,280 302 85,362 87,496 89,683 91,926 94,224 96,579 98,994 Water & Sewer 188,988 685 193,713 198,556 203,519 208,607 213,823 219,168 224,647 Trash Removal 56,304 204 57,712 59,154 60,633 62,149 63,703 65,295 66,928 Repairs & Maintenance 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019 Turnover Related 48,300 175 49,508 50,745 52,014 53,314 54,647 56,013 57,414 Landscaping 31,800 115 32,595 33,410 34,245 35,101 35,979 36,878 37,800 Marketing & Advertising 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019 General & Administrative 55,200 200 56,580 57,995 59,444 60,930 62,454 64,015 65,615 Broadband Service 182,160 660 186,714 191,382 196,166 201,071 206,097 211,250 216,531 Controllable Expenses $1,126,546 $4,082 $1,154,710 $1,183,577 $1,213,167 $1,243,496 $1,274,583 $1,306,448 $1,339,109 Management Fee 135,579 491 140,872 146,374 151,779 157,021 162,444 168,054 173,859 Taxes 754,999 2,736 773,874 793,221 813,051 833,378 854,212 875,567 897,457 Insurance 52,440 190 53,751 55,095 56,472 57,884 59,331 60,814 62,335 Total Operating Expenses $2,069,564 $7,498 $2,123,207 $2,178,267 $2,234,469 $2,291,778 $2,350,570 $2,410,884 $2,472,759 Replacement Reserves 41,400 150 48,300 55,200 56,580 57,995 59,444 60,930 62,454 Total Expenses $2,110,964 $7,648 $2,171,507 $2,233,467 $2,291,049 $2,349,773 $2,410,015 $2,471,814 $2,535,213 Net Operating Income $3,312,180 $12,001 $3,463,393 $3,621,502 $3,780,112 $3,931,054 $4,087,731 $4,250,356 $4,419,146 14 / BOHO4W Financial Analysis The market appeal of BOHO4W is demonstrated by its incredibly strong lease-up. Move-ins averaging nearly 29 units/month since February 2014 Rising Lease rates throughout lease-up period Higher Loss-to-Lease on early move-ins as a result of increasing Market Rents. OCCUPIED UNITS Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL % Jan. '14 12 925 $1,496 $1,409 $1.52 ($88) -5.9% Feb. '14 23 913 $1,576 $1,468 $1.61 ($108) -6.9% Mar. '14 25 878 $1,523 $1,441 $1.64 ($82) -5.4% April '14 31 873 $1,505 $1,457 $1.67 ($48) -3.2% Through May 3, 2014 6 834 $1,514 $1,473 $1.77 ($41) -2.7% FUTURE MOVE-INS Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL % May '14 30 862 $1,476 $1,445 $1.68 ($31) -2.1% June '14 14 858 $1,448 $1,418 $1.65 ($30) -2.1% July '14 9 854 $1,428 $1,399 $1.64 ($29) -2.0% Aug. '14 1 972 $1,459 $1,459 $1.50 $0 0.0% L o s s
t o
L e a s e
o n
E a r l y
M o v e - i n s
D u e
t o
R i s i n g
M a r k e t
R E n t s 5.9% 6.9% 5.4% 3.2% 2.2% 2.1% 2.0% 0.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Jan. '14 Feb. '14 Mar. '14 April '14 May '14 June '14 July '14 Aug. '14 L o s s
t o
L e a s e
( %
o f
c u r r e n t
m a r k e t
r e n t ) Move-In Date 15 02. INVESTMENT NUMBERS / 16 / BOHO4W Non Revenue Units Non-Revenue Units currently consist of two model units and four employee discount units. NON REVENUE UNITS Unit Type Use Current Market Rent Discount Model Units 2113 B2 Model $1,850 100% 2116 A2 Model $1,325 100% Employee Units 2105 A3 Courtesy Offcer $1,540 $755 2216 A2 Employee $1,330 100% 2313 B2 Employee $1,840 100% 2318 A2 Employee $1,335 100% FY1 projections assume that employee units are discontinued. Utility Reimbursement Income Residents pay for valet trash collection and reimburse the property for their water/sewer consumption. FY1 Utility Reimbursement Income is projected using a 95% recapture ratio of gross water/sewer expenses, plus $18/unit monthly valet trash collection fee. UTILITY REIMBURSEMENT INCOME Collection % Monthly/ Unit Monthly Annual Annual/ Unit Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600 Billing Fee $5.25 $1,449 $17,388 $63 Total Reimbursable Water/Sewer $55.25 $15,249 $182,988 $663 Water/Sewer Reimbursements 95% $47.50 $13,110 $157,320 $570 Billing Fee 100% $5.25 $1,449 $17,388 $63 Valet Trash Collection 95% $18.00 $4,720 $56,635 $205 Total Utility Reimbursement Income $231,343 $838 Underwriting Notes INCOME CATEGORIES Current Market Rents As of the May 5, 2014 rent roll, current market rents at BOHO4W were $1,534 per unit ($1.82 per heated SF / $1.72 per gross SF). Monthly Market Rent totals $423,365 as of the 5/5/2014 rent roll. Rent Increase Market Rent growth of 4.0% is projected in FY1 through FY3, and 3.5% thereafter. Resulting FY1 market rent is $1,595/unit and $1.90 per heated SF). Loss To Lease Loss to Lease represents the difference between Market Rent and actual rent. As a result of projected Market Rent increases, FY1 Loss to Lease is projected to equal 2% of projected Market Rent. This results in projected Gross Potential Rent (GPR) of $1,563 per month ($1.86 per SF). Vacancy Loss Vacancy Loss equal to 5% of Gross Potential Rent is projected throughout the analysis period. Concessions The property has offered limited up-front concessions on an as-needed basis during construction. Upfront concessions were only offered to residents whose unit was not ready by the move-in date. Only two units have recurring concessions totaling $106 per month: Unit 2208 Concession of $56/month was offered to offset residents storage fees. Unit 2501 Concession of $50/month offered due to leasing banner on building exterior covering window. Bad Debt Loss Bad Debt Loss of 0.25% of GPR is projected throughout the analysis period.
17 02. INVESTMENT NUMBERS / the propertys broadband service provider. The property receives a 5% revenue share of upgrade charges. This stabilized pro forma projects that the property begins charging residents $40/month for the base 50Mbps internet service. The Flats at Ponce City Market currently charges $40/month for 20Mbps internet service. FY1 Broadband Income is projected as follows: BROADBAND INCOME Service Monthly Rate Pene- tration Total Monthly Annual Royalty Annual Income Per Unit Base Internet (50 Mbps), TV $40.00 95% $10,488 $125,856 N/A $125,856 $456 Ultimate Internet (100 Mbps) $29.99 35% 2,897 34,764 5% 1,738 6 Gigabit Internet (1Gbps) $99.99 30% 8,279 99,350 5% 4,968 18 HBO $18.99 10% 524 6,289 5% 314 1 Digital TV Package $39.99 20% 2,207 26,489 5% 1,324 5 Total $134,201 $486 Parking/Storage Income The property does not currently charge residents for parking. There is opportunity to implement a reserved parking program particularly in the podium building fronting Old 4th Ward Park. The Flats at Ponce City Market charges residents $75/month for parking. FY1 projections assume 50 reserved spaces at a monthly rate of $50. FY1 projections assume 50 storage units at an average monthly rent of $75. PARKING AND STORAGE INCOME Monthly Rate # Spaces Monthly Annual Annual/Unit Reserved Parking $50.00 50 $2,500 $30,000 $109 Storage Units $75.00 50 $3,750 $45,000 $163 Total $75,000 $272 Broadband Income Thus far during lease-up, the property has offered basic internet (50 Mbps) and a basic TV channel line-up included in monthly rent. Residents have the option to upgrade internet service (to 100 Mbps or 1Gbps), TV package and to add VoIP telephone through Hotwire, Other Income Other Income includes application fees, pet fees and rent, month-to-month fees, transfer fees, etc. FY1 Other Income is projected as shown in the table below: OTHER INCOME Fee/Rate Quantity Monthly Annual Annual/Unit Assumptions MTM $150 12 $1,800 $21,600 $78 12 per month Washer/Dryer 25 100 2,500 30,000 109 Property to provide W/D sets in 100 units Admin Fees 125 138 1,438 17,250 63 50% turnover Application Fees 50 159 661 7,935 29 50% turnover, 1.15 applicants per move-in Pet Fee (NR) 350 35 1,006 12,075 44 25% of turned units have pets Pet Rent 10 69 690 8,280 30 25% of units have pets Termination fee (1 month rent) 1,534 6 767 9,204 33 6 terminations/year Transfer fee 500 8 333 4,000 14 8 transfers/year Late/NSF Fee 50 48 200 2,400 9 4 per month Damage Fees 100 48 400 4,800 17 4 per month Total $5,495 $117,544 $426 18 / BOHO4W Water & Sewer This line item represents gross water and sewer expenses before resident reimbursements. Residents reimburse the property based upon submeter readings of actual consumption. This line item also includes third-party billing fees paid by the property, which are then passed through to residents.
WATER/SEWER EXPENSE Monthly/Unit Monthly Annual Annual/Unit Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600 Water/Sewer Expense - Common Areas $500 $6,000 $22 Billing Fee $5.25 $1,449 $17,388 $63 Total $15,749 $188,988 $685 Trash Removal This line item represents net trash collection expenses before resident reimbursements. Residents are charged a monthly trash collection fee of $18, which is billed as income. FY1 Trash Collection expenses are based upon a monthly expense of $17/unit. Repairs And Maintenance FY1 Repairs and Maintenance are projected at $250/unit, in line with market levels for new Class AA midrise properties. Turnover Related Turnover expenses are projected at $175/unit, based upon a cost of $350 to turn each unit and a 50% turnover ratio. Landscaping This category includes landscaping contract and supplies FY1 Landscaping and Contract Services expense is projected based on a monthly landscaping contract of $1,900 and annual expenses of $5,000 for seasonal color and $4,000 for mulch. Marketing And Advertising Projected Marketing and Advertising expenses refect stabilized operations, which are lower than during initial lease-up. FY1 Marketing and Advertising expenses are projected at $69,000 ($250/unit). Underwriting Notes EXPENSE CATEGORIES Payroll FY1 Payroll expenses project a stabilized staffng level of 3 offce and 3 maintenance personnel. FY1 Payroll expense is projected as shown in the table below. The rates shown below are based upon predominant wage rates in metro Atlanta and do not represent the actual wage rates paid to current staff at BOHO4W. PAYROLL Position Salary Bonus Burden @24% Total Manager $55,000 $5,500 $14,521 $75,021 Leasing Consultant (2) $72,000 $14,400 $20,736 $107,136 Subtotal - Offce $127,000 $19,900 $35,257 $182,157 Maintencance Supervisor $55,000 $14,400 $20,736 $72,292 Maintenance Technician $43,000 $3,300 $13,992 $56,519 Housekeeper $24,000 $2,580 $10,939 $31,546 Subtotal -Maintenance $122,000 $20,280 $45,667 $160,357 Total Payroll $249,000 $40,180 $80,924 $342,514 Electricity Electricity expenses include vacant unit and common area utility expenses. FY1 Electricity expense is projected based on common area expense of $6,250/month and a monthly vacant unit expense of $50/unit (and 5% vacancy rate). 19 02. INVESTMENT NUMBERS / Projected FY1 Real Estate Tax expense for BOHO4W is based upon a projected Fair Market Value of $155,000 per unit ($184 per heated SF). On a per-unit basis, the projected stabilized FMV for BOHO4W is above the top end of the comparable range. On a per-SF basis, the projected FMV is 24% above the top end of the range. FY1 Real Estate Tax expense is projected as follows: REAL ESTATE TAXES Total Per Unit Per SF Fair Market Value $42,780,000 $155,000 $184 Assessment Ratio 40% Assessed Value $17,112,000 $62,000 $74 Millage Rate 0.044121 Real Estate Tax $754,999 $2,736 $3 Insurance FY1 Insurance expense is projected at $190/unit ($0.23 per heated SF), in line with market levels for newly-built Class AA midrise Atlanta properties. Replacement Reserves Replacement Reserves are projected at $150/unit in FY1, $175/unit in FY2, $200/unit in FY3, and infation-adjusted thereafter. General & Administrative FY1 G&A expenses are projected in line with typical levels for stabilized Class AA properties, at $55,200 ($200/unit). Broadband Service Hotwire is the propertys broadband service provider. The property pays $55/unit per month for fber optic broadband services. Management Fee A Management Fee equal to 2.5% of Total Income is projected. Real Estate Taxes Real Estate Taxes are based upon the Fair Market Value of the property as of January 1 of each year. The FMV is determined by the countys board of assessors. The Georgia Constitution stipulates that ad valorem real estate taxes shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax. The table below illustrates the 2013 FMV values for stabilized Class A and AA properties in the Old 4th Ward and Inman Park. REAL ESTATE TAX COMPARABLES Property # Units 2013 FMV FMV/Unit FMV/SF Under Appeal AMLI Old 4th Ward 337 $51,726,200 $153,490 $147 Y AMLI Parkside 301 39,133,400 130,011 143 N Block Lofts 244 32,194,000 131,943 134 N Mariposa Lofts 253 36,467,500 144,140 148 N Highland Walk 350 36,500,000 104,286 108 N North Highland Steel 240 30,000,000 125,000 132 N Total / Avg 1,725 $226,021,100 $131,027 $135 20 Demographic of the Future Location of the Future Property of the Future 03. INVESTMENT STORY 21 03. INVESTMENT STORY / Demographic of the Future The Future Starts with Y Generation Y, the generation also known as Millennials, (now age 10 to 32) will be taking over the workforce and taking hold of the future of multifamily. Source: U.S. Census and Forbes, Why You Cant Ignore Millenials Today, Gen Y Represents 34% of the Workforce In 11 Years, Gen Y will be 75% of the Workforce While I take inspiration from the past, like most Americans, I live for the future.
~ Ronald Reagan Gen Y Lives, Works and Plays in Different Ways than Previous Generations 22 / BOHO4W Gen Y values unique, authentic experiences. They appreciate products and places that have evolved organically; and they are put off by mass marketing. The Old Fourth Ward (O4W) neighborhood and BOHO4Ws one-of-a-kind characteristics appeal to this cohorts strong desire for unique, authentic experiences. American, mass-marketed brands imported brands from around the world unique, local craft beers Grandparents Parents Gen Y The growth of Generation Y and its impact on all sectors of commercial real estate could be the singular most dominant trend for many years. This group lives, works, and plays in diferent ways than previous generations... (Generation Y) will be very good for real estate.
~ Urban Land Institute Emerging Trends in Real Estate 2014 23 03. INVESTMENT STORY / Demographic of the Future three networks on new color TVs and vinyl records cable TV, VCRs, DVDs and CD players live, uninterrupted, FAST streams of HULU, Netix, HBO GO, Twitch, Spotify and Pandora Grandparents Parents Gen Y Gen Ys choices for home entertainment are limitless and they are addicted to speed. BOHO4W is the only apartment community that can meet their standards for Internet speed. With gigabit speeds 100x faster than cable, BOHO4W can deliver everything on the Internet instantly. 1GB Gen Y Location Wish List Besides living in an exciting, young city like Atlanta, most new professionals have a list of urban lifestyle experiences they want to embrace. Wish List Item BOHO4W Delivers Location in the center of the city P 1.4 miles from the heart of Midtown 1.5 miles from Downtown Near creative and high-tech workspaces P Midtown is now a creative mecca for innovative companies in high-tech and creative professions P Ponce City Market, a short walk, adding 484,000 SF of offce space with cutting-edge tech frms like MailChimp, Cardlytics, and Athena Health Authentic, organic restaurants, bars and nightlife at your doorstep P 28+ unique, local restaurants within 1 mile P The Masquerade, a live music venue, adjacent to H4WP P 1.4 miles from the historic Fox Theatre Parks and green spaces nearby P Backyard is Historic Fourth Ward Park P Adjacent to the BeltLines Eastside Trail, a 2.2-mile pathway for pedestrians and bikes P Piedmont Park, the citys largest park, is 1.3 miles north P Freedom Park, 1.3 miles east Access to mass transit P 1.5 miles from North Avenue MARTA station P Less than 1 mile from Atlanta Streetcar line 24 / BOHO4W 25 03. INVESTMENT STORY / Demographic of the Future 26 / BOHO4W (A Curbed Atlanta reader) points to a trend... That the BeltLines allure will become so strong, so attractive to older buyers looking for a hip alternative to their suburban or suddenly too-large ITP (Inside the Perimeter) homes, that single homebuyers and younger families will be totally priced out.
~ Excerpt from Curbed Atlanta Editorial Is The BeltLines Success Stiff-Arming Young Atlantans? - April 2014 27 03. INVESTMENT STORY / Demographic of the Future Gen Y Leads the Way for Everyone Else Young adults are the early adopters of urban living, but other groups, especially empty nesters, are following quickly behind. In the same way that young people led the way with smartphones and tablets, young adults are leading the way on new, walkable urban lifestyles. STAGES IN ADOPTION OF URBAN LIFESTYLES Young adults move to affordable intown neighborhoods, helping to gentrify new areas of the city The business community responds by creating more living and amenity options in hot re-discovered areas. Established groups like empty nesters begin to see the light. They follow young people into the now thriving area, driving up demand and prices. Demand for a location on the BeltLine may start with Y, but it doesnt stop there! As the Old Fourth Ward neighborhood quickly gentrifes, the area has begun to see a migration of not only young adults, but also of their baby boomer parents. Both groups want to be a part of the in-town BeltLine action. 28 / BOHO4W Sunbelt Growth Everything about BOHO4Ws location is changing and trending up from the popularity of the Sunbelt and growth of Atlanta rents to the emergence of the BeltLine and development of creative new workplaces nearby. Change is the law of life. And those who look only to the past or the present are certain to miss the future.
~ John F. Kennedy A look at the numbers on domestic migration undermines the claim that most Americans prefer to live in and near the dense Northeastern urban cores. People simply continue to vote with their feet. Since 2000, more than 300,000 people have moved to Atlanta, Dallas, Houston, and Charlotte; in contrast a net over two million left New York and 1.4 million have deserted the LA area while over 600,000 net departed Chicago and almost as many left the San Francisco Bay region. ~ U.S. News, March 2014, Forget What the Pundits Tell You: Coastal Cities are Old News - its the Sunbelt thats Booming 29 03. INVESTMENT STORY / Location of the Future 30 / BOHO4W CNBC named Atlanta #6 on its list of 10 Best Cities for Todays College Graduates April 30, 2014 31 03. INVESTMENT STORY / Location of the Future Atlanta Momentum In Multifamily, Atlanta is Leading Rent Growth vs. Top U.S. Markets Atlanta is a Top 10 Destination for 20-34 Year-Old Migration, Ahead of other Sunbelt and Technology Hubs such as Houston, Denver, Seattle, San Jose and San Francisco Source: CBRE-EA Source: ULI, Emerging Trends 2014 8.7% 8.7% 7.3% 7.0% 6.5% 5.5% 5.2% 4.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Atlanta Dallas Denver Houston D.C. San Francisco Seattle San Jose F i v e
Y e a r
H i s t o r i c a l
M i l l e n n i a l
G r o w t h Forbes named Atlanta to its list of The Best Cities For New College Grads In 2013 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 2 0 1 4
R e n t
G r o w t h
v s .
P r e v i o u s
Y e a r 32 / BOHO4W Glen Iris Drive N o r t h
A v e n u e Ralph McGill Boulevard F r e e d o m P a r k w a y Ponce City Market MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger, Honeysuckle Gelato, Simply Seoul Kitchen Highland Dog Training Center The Masquerade Concert Venue Future Beltline Entrance GA Power Equipment Yard Carter Center Museum and Library P o n c e
D e
L e o n
A v e n u e Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF) WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS) CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS) CDC (6,000 JOBS) Inman Quarter MF Sushi, Bartaco, Ford Fry's New Restaurant Inman Park Single Family Homes and Townhomes $450,000-$700,000 Inman Park Condos $250,000+ East Avenue Townhomes $450,000-$700,000 Single Family Homes $250,000-$400,000 4th and Swift Dancing Goats Coffee Gekko Sushi and Lounge Bantam Pub Freedom Park Two Urban Licks N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Parish Serpas Rathbun's Historic Old 4th Ward Park N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Glen Iris Drive N o r t h
A v e n u e Ralph McGill Boulevard F r e e d o m P a r k w a y Ponce City Market MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger, Honeysuckle Gelato, Simply Seoul Kitchen Highland Dog Training Center The Masquerade Concert Venue Future Beltline Entrance GA Power Equipment Yard Carter Center Museum and Library P o n c e
D e
L e o n
A v e n u e Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF) WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS) CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS) CDC (6,000 JOBS) Inman Quarter MF Sushi, Bartaco, Ford Fry's New Restaurant Inman Park Single Family Homes and Townhomes $450,000-$700,000 Inman Park Condos $250,000+ East Avenue Townhomes $450,000-$700,000 Single Family Homes $250,000-$400,000 4th and Swift Dancing Goats Coffee Gekko Sushi and Lounge Bantam Pub Freedom Park Two Urban Licks N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Parish Serpas Rathbun's Historic Old 4th Ward Park BOHO4W BOHO4W Micro Location In addition to BOHO4Ws sunbelt and Atlanta location, its thriving micro-location is what makes the property so unique. 33 03. INVESTMENT STORY / Location of the Future Glen Iris Drive N o r t h
A v e n u e Ralph McGill Boulevard F r e e d o m P a r k w a y Ponce City Market MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger, Honeysuckle Gelato, Simply Seoul Kitchen Highland Dog Training Center The Masquerade Concert Venue Future Beltline Entrance GA Power Equipment Yard Carter Center Museum and Library P o n c e
D e
L e o n
A v e n u e Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF) WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS) CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS) CDC (6,000 JOBS) Inman Quarter MF Sushi, Bartaco, Ford Fry's New Restaurant Inman Park Single Family Homes and Townhomes $450,000-$700,000 Inman Park Condos $250,000+ East Avenue Townhomes $450,000-$700,000 Single Family Homes $250,000-$400,000 4th and Swift Dancing Goats Coffee Gekko Sushi and Lounge Bantam Pub Freedom Park Two Urban Licks N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Parish Serpas Rathbun's Historic Old 4th Ward Park N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Glen Iris Drive N o r t h
A v e n u e Ralph McGill Boulevard F r e e d o m P a r k w a y Ponce City Market MailChimp, Cardlytics, Athena Health Dub's Fish Camp, H&F Burger, Honeysuckle Gelato, Simply Seoul Kitchen Highland Dog Training Center The Masquerade Concert Venue Future Beltline Entrance GA Power Equipment Yard Carter Center Museum and Library P o n c e
D e
L e o n
A v e n u e Emory University/CDC/VA Medical Center EMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAFF) WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS) CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS) CDC (6,000 JOBS) Inman Quarter MF Sushi, Bartaco, Ford Fry's New Restaurant Inman Park Single Family Homes and Townhomes $450,000-$700,000 Inman Park Condos $250,000+ East Avenue Townhomes $450,000-$700,000 Single Family Homes $250,000-$400,000 4th and Swift Dancing Goats Coffee Gekko Sushi and Lounge Bantam Pub Freedom Park Two Urban Licks N Highland Avenue Restaurants Sotto Sotto, Fritti, Barcelona Wine Bar, Highland Bakery, Pure Taqueria Parish Serpas Rathbun's Historic Old 4th Ward Park BOHO4W BOHO4W AERIAL IN PRODUCTION - FPO 34 / BOHO4W Micro Location The Atlanta BeltLine BOHO4W is adjacent to one of the countrys boldest urban projects, the Atlanta BeltLine. This $2.8 billion sustainable redevelopment project will provide a network of public parks, multi-use trails and transit tied together by a 22-mile trail around the city. The Eastside Trail, a 2.2 mile path from Piedmont Park to Old Fourth Ward, was completed in October 2012, and this year will attract a million visitors, the same number who comes to the Georgia Aquarium. For BOHO4W now, the BeltLine is a key amenity that drives demand, increases exposure, and adds value. In the future, the Beltline calls for light rail lines with 45 neighborhood stops and connections to the citys MARTA rail system and the Atlanta Streetcar. The best way to predict the future is to create it. ~ Peter Drucker Interesting Fact The Atlanta BeltLine all started with a masters thesis written in 1999 by then-Georgia Tech architecture and city planning student Ryan Gravel. 35 03. INVESTMENT STORY / Location of the Future The Atlanta BeltLine is the most comprehensive transportation and economic development efort ever undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in the United States. The Atlanta BeltLine is a sustainable redevelopment project that will provide a network of public parks, multi-use trails and transit along a historic 22-mile railroad corridor circling downtown and connecting many neighborhoods directly to each other. 36 / BOHO4W 37 03. INVESTMENT STORY / Location of the Future Micro Location Historic Forth Ward Park BOHO4W is on the front row of Historic Fourth Ward Park (H4WP) and is the only apartment community with direct access to the park from the pool, which overlooks the lake and lawn. The 17-acre urban park, a $25 million investment along Atlantas BeltLine, earned the Urban Land Institutes Project of the Year award in 2013. Park Amenities Two playgrounds Open lawn space 2-acre lake Splash pad water feature Open-air amphitheater Wide walkways for walkers and runners Skatepark 38 / BOHO4W Micro Location Ponce City Market BOHO4W is a short walk across the park to the largest adaptive reuse project in Atlantas history: Ponce City Market. The 16-acre, nearly $300 million mixed-use development restored the 1.1 million square foot former Sears Roebuck distribution center. Nearing completion, the project serves as an urban centerpiece that combines 356,000 square feet of retail and restaurants with 484,000 square feet of offce space and 259 residential fats. Project Highlights Central Food Hall with food stalls and sit-down restaurants
Rooftop deck offering miniature golf, games, city views, food and drink services
Bridge connection from the BeltLine offering bike valet with shower room and tire repair
Beer garden along the BeltLine 39 03. INVESTMENT STORY / Location of the Future 40 / BOHO4W 41 03. INVESTMENT STORY / Location of the Future Micro Location 28+ Authentic, Local Restaurants and Bars within One Mile BOHO4W residents are within walking distance of a wide range of authentic, local restaurants. barcelona wine bar 42 / BOHO4W Micro Location With fve grocery stores within one mile, there is no diffculty for residents who prefer to grab one meal at a time. Kroger Whole Foods Savi Provisions Publix Trader Joes Entertainment and Cultural Amenities The Masquerade (0.3 miles) 7 Stages Theatre (0.7 miles) Landmark Midtown Art Cinema (0.8 miles) Plaza Theater (0.8 miles) Horizon Theater (0.8 miles) Landmark Midtown Art Cinema (1.1 miles) Fox Theatre (1.2 miles) Dads Garage (1.7 miles) Woodruff Arts Center (2.7 miles) High Museum (2.7 miles) The Carter Center (1.2 miles) 43 03. INVESTMENT STORY / Location of the Future BOHO4W ofers residents Fision, Fiber Optics by Hotwire Basic Package $60.00/mo. (currently included in rent) for 50 Mbps Internet + 20 TV Channels Internet Upgrades: Ultimate: +$29.99/mo (100 Mbps) Gigabit: +$99.99/mo (1 Gbps) 44 / BOHO4W Gigabit Internet Speed: 100x Faster than Cable BOHO4W is the only apartment community in Atlanta to offer gigabit speed, and the only property on the BeltLine. The developers of BOHO4W recognized how valuable Internet speed is to Gen Y and the propertys renter pool, and installed fber optic cable to all units (Fiber to the Unit, or FTTU). By future-proofng the propertys infrastructure, BOHO4W is uniquely capable of handling tomorrows demands. Top 3 Most Important Apartment Amenities: #1 In-unit washing machine #2 Bathroom not shared #3 Fast Internet Benefits to the Resident Internet speeds over 100x faster than typical cable Access to high-speed Internet anywhere on the property, and at H4WP Faster downloads on Hulu, Twitch, Spotify - everything residents like More effcient uploads of large fles like photos and renderings (ideal for working from home) The clearest, sharpest picture available 3-D images that jump off the screen Instant Replay on anything residents have watched in the last 7 hours without a replay box Wired at move-in: theres no waiting for the cable guy ever Source: Multifamily Executive, What Residents Want 45 03. INVESTMENT STORY / Property of the Future 3 seconds to download 100 songs (vs. 2.75 minutes to download 100 songs w/20Mbs) < 3 seconds to download a TV show (vs. 2.5 minutes w/20Mbs) 7 seconds to download an HD movie (vs. 5.5 minutes w/20Mbs) Internet Speed Comparison 8MB/second average internet speed ofered by cable companies 25MB/second Internet speed ofered in maximum premium packages by cable companies 50MB/second Minimum speed ofered at BOHO4W 1,000 MB= 1 gigabit/second fastest residential Internet speed and ofered at BOHO4W The Gigabit Diference 1GB 46 / BOHO4W As BOHO4W is the only property in Atlanta to ofer gigabit Internet speed, the rst mover on ber broadband will capture a number of signicant quantiable benets. Attract a Better Resident Prole from the Start Avoid Costly Retrotting in the Future Earn a Submarket Competitive Advantage Enjoy Higher Renewal Rates 28% less likely to move Generate Increased Income +15% First Mover Advantage Importance of Above-Average Broadband Increases with Rent up to $2,500 47 03. INVESTMENT STORY / Property of the Future Gigabit Internet Speed: Benefits to the Investor 01. Better Resident Prole from the Start Residents who pay more rent care more about faster speeds. By being the frst mover, BOHO4W will capture a healthy share of this most desirable profle. BOHO4Ws initial 71 occupants earn on average over $78,000 per year. At a 30% rent-to-income ratio, the average resident could afford $1,950/month, which is more than $400 higher than BOHO4Ws current average rent. 02. Submarket Competitive Advantage 70% of property owners and managers said faster fber networks increased word-of-mouth marketing. 59% said fber increased closing and occupancy rates. 03. Increased Income Renters will pay 15% more in rent for fber-connected homes. 04. Higher Renewal Rates Residents in buildings with fber are less likely to move away than are users of other broadband technologies. 13% with fber said they were likely to move vs. 18% with other technology.
68% of property owners and managers said they had higher satisfaction and fewer complaints with fber. 05. Avoid Costly Retrotting At BOHO4W, fber to the unit architecture is already in place, negating the need for costly future retroftting. Source: BroadbandCommunities Source: BroadbandCommunities, What Fiber Broadband Can Do for Your Community and MDU Residents Crave Fiber If They Know About It 47% 62% 63% 74% 100% 75% 44% 0% 20% 40% 60% 80% 100% 120% $200 - $500 $501 -$1,000 $1,001 - $1,500 $1,501 - $2,000 $2,001 - $2,500 $2,501 - $3,000 Above $3,000 Residents Citing Importance of Bandwidth M o n t h l y
R e n t 48 / BOHO4W The Demand for Ultra-High-Speed Internet will Grow Dramatically Like the demand for smart phones and other disruptive new technologies, the demand for ultra-high-speed Internet services will soon dominate. BOHO4Ws immediate position as the only apartment in Atlanta that is ofering gigabit speed will allow the property to scoop up surging demand. Adoption Curve for New Technology Products SECTION IN PRODUCTION include resident case studies RESIDENT PROFILE 1 cusamus estem fugitis eossi sinit ex et RESIDENT PROFILE 1 cusamus estem fugitis eossi sinit ex et RESIDENT PROFILE 1 cusamus estem fugitis eossi sinit ex et SPREAD IN PRODUCTION - FPO 49 03. INVESTMENT STORY / Property of the Future 50 / BOHO4W With its forward-looking design of unit interiors, desirable amenities that build community, and ber to the unit (FTTU) broadband infrastructure, BOHO4W is ideally positioned for the future. 51 03. INVESTMENT STORY / Property of the Future Forward-Looking Design of Unit Interiors Leveraging recent trends of smaler unit sizes, individual units at BOHO4W allow residents to live large with well-designed, open foorplans. Residents value the amount of quality storage space incorporated in each unit. The developer paid particular attention to include: Abundant 42 upper cabinets Built-in desk area with upper cabinets and drawers Island storage cabinets and built-in shelving Counter-height seating at kitchen island Food pantry Built-in shelving in living area Bathroom cabinets and linen closet Oversized walk-in closets w/double doors The units at BOHO4W also feature enduring desirable characteristics such as: H4WP and skyline views Balconies that allow residents to step outside and see the activity around them Attractive kitchens with granite or quartz countertops Faux wood fooring Stainless steel or black appliances (See page x for more details on unit interiors) The future belongs to those who prepare for it today. ~ Malcolm X Spectacular Amenities that Build Community BOHO4W is the only property with a pool deck overlooking Historic Fourth Ward Park. Residents appreciate the seamless access from the pool, to the park and BeltLine. Other thoughtful features include: Outdoor grilling, dining and lounge area Pool cabana room Fitness center and spin/yoga room with group exercise classes Art studio to spur creativity Wall of Social to keep residents connected Cyber caf and conference room (See page x for more details on amenities) 52 / BOHO4W 53 03. INVESTMENT STORY / Property of the Future 54 / BOHO4W The future is something that everyone reaches at the rate of 60 minutes an hour, whatever he does, whoever he is.
~ C.S. Lewis 55 03. INVESTMENT STORY / Property of the Future The future is coming fast, and investors who adapt ahead of the curve will reap the biggest rewards. In its visionary development, BOHO4W leverages some of the most important emerging trends in real estate today. The propertys alignment with real estates future will help BOHO4W outperform the market year after year. 56 / BOHO4W 04. PROPERTY INFORMATION 57 04. PROPERTY INFORMATION / Property Description ADDRESS 477 Wilmer Street NE Atlanta, GA 30308 LOCATION BOHO4W is located on the Historic Fourth Ward Park, overlooking the parks amphitheater, lake and walking trails. The property is walkable to Ponce City Market, the Eastside Trail of the Atlanta BeltLine, and many restaurants, barsand nightlife. SITE LAYOUT BOHO4W is composed of four 5-story residential buildings. A midrise podium-style building on the west side of Wilmer Street fronts the Historic Fourth Ward Park. An above-grade parking structure serves the midrise wrap-style buildings on the west side of Wilmer. LAND AREA Approximately 3.7 acres according to Fulton County Tax Assessor records, for a density of 75 units per acre. ZONING MRC-3-C Mixed Residential Commercial District ACCESS/VISIBILITY/SIGNAGE Property access, signage and visibility are excellent. BOHO4W occupies a highly visible site from the Historic Fourth Ward Park. The property fronts Glen Iris Drive, Rankin Street and Dallas Street. Glen Iris provides quick access to North Avenue two blocks to the north and to Inman Park to the south. PARKING Abundant parking is provided by the parking deck (307 spaces) and podium (78 spaces), providing a total of 385 spaces, or 1.39 per unit and 1.10 per bedroom. 58 / BOHO4W Property Description UTILITIES Residents pay their electric bill directly to the utility provider and reimburse the property for water/sewer consumption through a submetering system. Residents also reimburse the property for trash collection.
Utility/Service Provider Separately Metered Residents Pay Directly Residents Reimburse Property Electricity Georgia Power Yes Yes No Water/Sewer City of Atlanta Yes No Yes Natural Gas N/A N/A N/A N/A Cable TV Hotwire N/A Yes No Internet Hotwire N/A Yes No Telephone Hotwire N/A Yes No Trash Collection N/A No Yes JURISDICTION & TAXES Jurisdiction Fulton County / City of Atlanta Tax ID Number 14 -0018-0005-092-3 14 -0018-0005-035-2 Assessment Ratio 40% of Fair Market Value Tax Year Calendar Taxes Due By October 15
FLOOD ZONE Panel Number 13121C0263G Date Sept. 18, 2013 Flood Zone Flood Zone X Flood Insurance Required No
59 04. PROPERTY INFORMATION / BUILDING DESCRIPTION Year Completed 2014 Total Residential Units 276 Residential Rentable SF 246,464 (232,234 heated) Average Unit Size (SF) 893 (841 heated) Building Style Midrise wrap and podium No. of Floors 5 story structures Structural Framing Wood frame First Floor Concrete slab Exterior Materials Brick, stone, stucco, HardiePlank lap siding, steel balcony railings Windows Single-hung, tilt sash, vinyl frame windows Roof Structure Pitched roof with wood truss support system, plywood decking Roof Covering Asphalt shingles and TPO membrane Foundation Cast-in-place concrete perimeter footings and slab on grade
MECHANICAL/ELECTRICAL/PLUMBING Elevators 3 elevators (hydraulic) HVAC Each apartment is cooled and heated by a package system electric heat pump HVAC unit. Heat exchanger and air handler units are located in interior closets, with exterior pad mounted condenser units. Water Heater Electric-powered water heater units located in mechanical closets within each unit Electrical Separately metered circuit breaker panel in each unit, copper wiring Plumbing Supply CPVC Plumbing Outlet PVC Water Meter Each unit is individually metered Fire Protection All units are sprinklered and have hard-wired smoke detectors with battery backup
60 / BOHO4W 61 04. PROPERTY INFORMATION / Community Amenities BOHO4W ofers unsurpassed amenities, including: 50 Mbps internet package included with rent, speeds up to 1Gbps available High-speed WiFi access at all amenities and the park Resort-style salt water swimming pool overlooking Historic Fourth Ward Park (only community with pool deck overlooking park)
Pool deck offers abundant seating areas, gas grilling stations and staircase providing park access State-of-the-art ftness center with strength training and cardio equipment Separate fully-equipped spin room Pool cabana with fat screen TVs and full kitchen Resident art studio Cyber cafe with Mac workstations, conference room, fat screen TVs Pet spa with washing stations 62 / BOHO4W Grandparents 63 04. PROPERTY INFORMATION / 64 / BOHO4W Resident art studio 65 04. PROPERTY INFORMATION / 66 / BOHO4W FLOORPLANS AVAILABLE IN THE DOCUMENT CENTER www.cbremarketplace.com/boho4w 67 04. PROPERTY INFORMATION / Unit Interiors BOHO4W ofers a wide variety of thoughtfully- designed oorplans, maximizing usable living space and ofering generous storage. All include high-end nishes with 9 and 10 ceiling heights. KITCHENS Choice of 3 fnish packages with either quartz or granite countertops Large undermount single-bowl stainless steel sink with goose neck faucet Stainless steel or black ENERGY STAR appliances with built-in microwave and radiant top stove Designer cabinetry with 42 upper cabinets, contemporary brushed nickel hardware and choice of light or dark fnish Tile backsplash Brushed nickel track lighting Pendant lighting over island Vinyl wood plank fooring Abundant storage all foorplans have pantry closet Large islands with seating and storage shelves in many foorplans Built-in desk with under-cabinet lighting in select foorplans 68 / BOHO4W Resident art studio Unit Interiors BATHROOMS Vinyl plank fooring Linen closets Floorplans feature garden tub or stand-up shower Custom tiled shower and tub surround Contemporary brushed nickel plumbing and lighting fxtures LIVING AREAS 10 ceiling heights for frst foor units, 9 on other foors Vinyl plank fooring in kitchens, living rooms and entries Washer/dryer connections in all units; stackable washer/dryer units provided; full-size washer/dryer units provided in about 50% of units 2 faux wood blinds Large walk-in closets Built in desks and bookselves (select units) Private patios and decks ground foor units with brownstone-style steps providing street access 69 04. PROPERTY INFORMATION / 70 / BOHO4W Resident art studio 71 04. PROPERTY INFORMATION / 72 / BOHO4W Site Plan REQUEST NATIVE FILE OF THE ABOVE FILE PULLED FROM WEB. VECTOR PREFERRED (.AI, EPS, PDF). PRECEDING AERIAL WILL BE HI-REZ AND LABELED. REQUEST FOR NATIVE FILE 73 04. PROPERTY INFORMATION / AERIAL IN PRODUCTION - FPO 74 / BOHO4W 75 04. PROPERTY INFORMATION / 76 / BOHO4W 05. MULTIFAMILY MARKET 77 05. MULTIFAMILY MARKET / Intown Atlanta Outperforming Overall Metro Atlanta #4 in Projected Rent Growth Over Next 5 Years (Top 20 Markets by Inventory) Downtown/Midtown to Outperform Metro Atlanta in 5-Year Projected Rent Growth Source: CBRE-EA 4Q-2013 3.6% 3.4% 3.3% 3.2% 3.1% 3.0% 2.8% 2.8% 2.6% 2.6% 2.6% 2.5% 2.5% 2.5% 2.4% 2.4% 2.4% 2.4% 2.3% 1.7% 1.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Boston Orange County San Diego Atlanta Los Angeles Detroit Dallas New York Nation Philadelphia Denver Tampa Washington, DC Miami Minneapolis Oakland Chicago Houston Phoenix Seattle San Francisco 3.1% 3.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Atlanta Downtown/Midtown 5 - Y e a r
A n n u a l i z e d
E f f e c t i v e
R e n t
G r o w t h Rent Comparables New properties along the Beltline in Old 4th Ward and Inman Park have been met with overwhelming demand. BOHO4Ws orientation towards 1BR oorplans and FTTU broadband access ideally positions the property to appeal to the afuent Millennial renter-by-choice. COMPETITIVE RENT SET Property Year Built # Units Occupancy Average Unit Size Average Asking Rent Average Rent/SF Ivy Hall 2011 110 98.0% 1,181 $1,800 $1.52 Flats at Ponce City Market 2014 259 Initial Lease-Up 921 $1,794 $1.95 SkyHouse South 2013 320 Initial Lease-Up 786 $1,762 $2.24 AMLI Ponce Park 2014 305 Pre-leasing 870 $1,574 $1.81 Post Parkside 2000 188 97.0% 885 $1,516 $1.71 AMLI Old 4th Ward 2008 337 99.0% 1,046 $1,457 $1.39 131 Ponce Midtown 2014 280 Pre-leasing 769 $1,453 $1.89 AMLI Parkside 2010 301 97.0% 896 $1,426 $1.59 Biltmore at Midtown 2002 276 97.0% 766 $1,343 $1.75 Total/Avg 2,376 97.6% 902 $1,553 $1.72 BOHO4W 2014 276 Initial Lease-Up 841 $1,534 $1.82 78 / BOHO4W 1 2 3 4 5 6 7 8 9 79 05. MULTIFAMILY MARKET / RENT COMP MAP IN PRODUCTION - FPO Rent Comparables 1 Bedroom Floorplans 1 BR oorplans compose 73% of the units at BOHO4W. Average nominal monthly rent at BOHO4W is below the competitive set average. BOHO4W is a comparative value, considering that 50 Mbps internet is included in BOHO4W rent, a faster speed than is available at competitor properties. BOHO4W RENTS VS. COMPETITIVE SET Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF SkyHouse South 158 709 $1,660 $2.34 Flats at Ponce City Market 138 833 $1,600 $1.92 Ivy Hall 48 961 $1,567 $1.63 AMLI Ponce Park 231 852 $1,543 $1.81 Post Parkside 98 834 $1,374 $1.65 Biltmore at Midtown 121 776 $1,343 $1.73 131 Ponce Midtown 220 667 $1,320 $1.98 AMLI Parkside 114 745 $1,246 $1.67 AMLI Old 4th Ward 187 868 $1,228 $1.42 Total/Avg 1,315 790 $1,425 $1.80 BOHO4W 201 734 $1,401 $1.91 BOHO4W SkyHouse South Flats at Ponce City Market Ivy Hall AMLI Ponce Park 131 Ponce Midtown AMLI Parkside AMLI Old 4th Ward Post Parkside Biltmore at Midtown $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 600 700 800 900 1,000 1,100 E f f e c t i v e
R e n t Unit Size (SF) 80 / BOHO4W Rent Comparables 2 Bedroom Floorplans At $1,890, average 2BR rents at BOHO4W are below the competitive set average, and trail 6 of the 9 properties in the competitive set. Average 2BR rents at Ponce City Market are $575 higher than at BOHO4W, and do not include the $40 monthly internet fee (for 20 Mbps) or $75/space parking fee charged at that property. BOHO4W RENTS VS. COMPETITIVE SET Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF Flats at Ponce City Market 73 1,316 $2,465 $1.87 Post Parkside 32 1,315 $2,268 $1.73 SkyHouse South 68 1,002 $2,195 $2.19 Ivy Hall 57 1,386 $2,008 $1.45 131 Ponce Midtown 52 1,172 $1,997 $1.70 Biltmore at Midtown 48 1,199 $1,901 $1.59 AMLI Old 4th Ward 150 1,269 $1,742 $1.37 AMLI Ponce Park 74 924 $1,671 $1.81 AMLI Parkside 154 1,072 $1,629 $1.52 Total/Avg 708 1,169 $1,903 $1.63 BOHO4W 75 1,131 $1,890 $1.67 BOHO4W Flats at Ponce City Market SkyHouse South AMLI Ponce Park 131 Ponce Midtown Ivy Hall AMLI Parkside AMLI Old 4th Ward Biltmore at Midtown Post Parkside $1,500 $1,700 $1,900 $2,100 $2,300 $2,500 $2,700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 E f f e c t i v e
R e n t Unit Size (SF) 81 05. MULTIFAMILY MARKET / Relevant Sales Transactions Strong apartment performance, healthy employment growth, and dynamic inll submarkets have pushed recent Class AA Atlanta apartment pricing well above the $200,000/unit threshold. 1 92 West Paces 92 West Paces Ferry Rd Atlanta, GA 30305 2 Elle of Buckhead 235 Pharr Road Atlanta, GA 30305 3 Heights at Stillhouse 3151 Stillhouse Creek Drive Atlanta, GA 30339 4 1160 Hammond 1160 Hammond Drive Atlanta, GA 30328 MULTIFAMILY SALES COMPARABLES 82 / BOHO4W SALES COMP MAP IN PRODUCTION - FPO Relevant Sales Transactions MULTIFAMILY SALES COMPARABLES Property Sale Date Sale Price Price/Unit Price/SF Year Built Units Seller Buyer 92 West Paces 92 West Paces Ferry Rd Atlanta, GA 30305 April 2014 $73,150,000 $348,333 $355 2014 210 Preserve Properties Prudential Elle of Buckhead 235 Pharr Rd Atlanta, GA 30305 Jan. 2014 $106,600,000 $285,760 $309 2013 373 JLB Partners MetLife Heights at Stillhouse 3151 Stillhouse Creek Drive Atlanta, GA 30339 Feb. 2014 $71,500,000 $236,755 $219 2013 302 Worthing Southeast Bell Partners 1160 Hammond 1160 Hammond Drive Atlanta, GA 30328 Under Contract $80,300,000 $232,754 $246 2014 345 Northwood Ravin Associated Estates
83 05. MULTIFAMILY MARKET / 84 / BOHO4W CONFIDENTIALITY, NOTICES & DISCLAIMER CBRE Group, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE Group, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Group, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE Group, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owners obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE Group, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE Group, Inc. Purchaser acknowledges that CBRE is acting on behalf of Owner as exclusive broker in connection with the sale, and also acknowledges that CBRE is not the agent of the Purchaser. Purchaser agrees to pay all brokerage commissions, finders fees, and other compensation to which any broker (except CBRE) finder or other person may be entitled in connection with the sale of the Property if such claim or claims for commissions, fees or other compensation are based in whole or in part on dealings with Purchaser or any of its representatives; and Purchaser agrees to indemnify and hold harmless CBRE and Owner, their respective affiliates, successors, and assigns, employees, officers, and directors against and from any loss, liability or expense, including reasonable attorneys fees arising out of any claim or claims by any broker, finder or similar agent for commissions, fees, or other compensation for bringing about any sale of the property to Purchaser if such claim or claims are based in whole or in part on dealings with Purchaser or any of its representatives. DISCLAIMER 2014 CBRE Group, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE Group, Inc. does not doubt its accuracy, CBRE Group, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. THE FUTURE OF MULTIFAMILY IS AT BOHO4W NOW www.cbremarketplace.com/boho4w A NORTH AMERICAN PROPERTIES DEVELOPMENT