36 ALMON30 Unit Multifamily Investment Opportunity | 36 Almon Church Rd. Covington, Georgia 30014

COMMUNICATIONColliers International is exclusively representing the seller in the disposition of 36 Almon. All communications, inquiries, and requests should be addressed to the Colliers International team, as representatives of the seller. Management at the Property should not be directly contacted.

PROPERTY VISITSInterested investors are required to schedule a time to meet with the Colliers team to tour the asset and discuss the merits of the offering. Please contact team members to schedule a tour.

Team

ALEX TANJGAAssociate+1 404 877 9289alex.tanjga@colliers.com

WILL MATHEWSManaging Director | Platform Leader+1 404 877 9285will.mathews@colliers.com

DISCLAIMERThis Offering Memorandum is provided for the sole purpose of allowing a potential investor to evaluate whether there is interest in proceeding with further discussions regarding a possible purchase of or investment in the subject property (the “Property”).

The potential investor is urged to perform its own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Brochure or any materials, statements or information contained herein or otherwise provided. Neither Colliers International, nor any of its partners, directors, officers, employees and brokers (“Brokers”), make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this Offering Memorandum or the Property or any materials, statements (including financial statements and projections) or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition, quality or fitness of the Property, or assumes any responsibility with respect thereto. Such materials, statements and information have in many circumstances been obtained from outside sources, and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given.This Offering Memorandum is provided subject to errors, omissions, prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice. The contents hereof are confidential and are not to be reproduced or distributed to any person or entity without the prior written consent of Brokers or used for any purpose other than initial evaluation as indicated above.

EXECUTIVE SUMMARY.........................05

INVESTMENT RATIONALE....................06

PROPERTY OVERVIEW.........................08

MARKET OVERVIEW............................10

MARKET ANALYSIS.............................14

FINANCIAL OVERVIEW.........................18

TABLE OF CONTENTS

ADDRESS 36 Almon Church Rd Covington, GA 30014

PURCHASE PRICE TBD by Market

UNITS 30

YEAR BUILT 1965; Renovated 2016-2018

LAND AREA (ACRES) ±23

NET RENTABLE AREA (SF) 27,000

AVG UNIT SIZE (SF) 900

AVG IN-PLACE RENT/UNIT $597

AVG RENT/PSF $0.66

OCCUPANCY 100%

executive summaryexecutive summaryColliers International is pleased to announce 36 Almon, an exceptional

and rare opportunity to purchase an asset with substantial organic

upside in a growing community that has unlimited future upside.

36 Almon is a 15 duplex, 30-unit multifamily community, is conveniently

located right next to I-20 allowing the residents ease of access through

the city of Covington and the state of Georgia. This ideal location is

minutes away from downtown Covington which is exploding with new

businesses such as the Covington Town Center Plaza which will contain

250,000 SF of class A office space, two Hilton hotels and 200,00 SF of

retail. It is also located less than 10-minutes from Newton Plaza, a

270,000 SF plaza containing Kroger, Big lots, and Planet Fitness.

Along with its proximity to some of Covington’s most popular shopping

and dining locations, 36 Almon, is also less than a 10-minute drive

from some of the biggest companies that have brought substantial

investment into Covington including Shire Pharmaceuticals, Facebook,

and Three Ring Studios to name a few.

With its great location and access to major highways, being minutes

away from top retail and dining, and in a city that is booming with

new businesses, this makes 36 Almon a rare opportunity to acquire

a desirable asset in a market with very strong fundamentals for the

present and future.

investment highlightsinvestment highlights

Rare Opportunity36 Almon, located in Covington, Georgia, consists of 30 units of income producing properties that sits on 22.79 acres, zoned R-4.

This is a one of a kind opportunity for an investor to buy into a growing community that has

unlimited future upside.

Organic upsideThe average rents at 36 Almon are $597 which is $191 below the market average. The next investor has the ability to organically

raise the rents by a minimum of $191 dollars per unit due to the amount of Cap Ex current ownership has invested.

Growing Market RentYear over year, the 1-3 Star market rents in Covington have increased by 7.1% or $62 in a year. The next investor should see this

as a positive and a trend that should continue.

Connecting Location36 Almon is located less than half a mile from I-20, allowing ease of access throughout the state and country.

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investment highlightsinvestment highlights

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job creation in newton county

Exploding MarketCovington has been exploding due to all the new business coming to the city. To name a few Shire Pharmaceuticals (1.2B

investment), Three Ring Studios (120m investment), Facebook (750M Investment with potential of reaching 42B). These strong

company additions have helped propel the average household income in Covington from 2016 to 2017 by 21.9% or $32,793 to

$39,959. The next investor should see this as a huge positive and invest in the City of Covington as well as 36 Almon.

BUILDING SPECIFICATIONS

UNITS 30

NUMBER OF BUILDINGS 15

STORIES 1

YEAR BUILT 60’s & 70’s

GROSS SQUARE FOOTAGE 1,800 SF/building

NET RENTABLE AREA 27,000 SF

PARKING SPACES 60 SURFACE SPACE | 2 PER UNIT

SITE INFORMATION

ADDRESS 36 Almon Church Rd Covington, GA 30014

PROPERTY TYPE/SUBTYPE Multifamily, Low-rise

SITE SIZE ± 23 Acres

SUBMARKET Newton County MF

MARKET Atlanta

TAX DETAILS

JURISDICTION NEWTON COUNTY

PARCEL NUMBERS 0024000000057000

ZONING

ZONING Multifamily R-4

FLOOD ZONE AE and X

property detailsproperty details

UTILITIES

ELECTRICITY Snapping shoals emc

NATURAL GAS Retailer of choice , no gas required

WATER/SEWER Septic/ newton county water and sewer

CABLE/INTERNET Comcast

TRASHTennant responsibility but curbside available

CONSTRUCTION

BUILDING STYLE 9 Slab And 6 Crawls

CONSTRUCTION Wood Frame

EXTERIOR MATERIALS (SIDING) Brick

ROOF Shingle

EXTERIOR DOORS Yes/Screen And Metal Clad

WINDOWSYes/ All New Therma Paine Vinly Clad Metal

UNIT DETAILS

LIGHTING Yes

CEILING HEIGHTS 8

BALCONIES/PORCHES No

KITCHEN APPLIANCES Stove And Microwave

CLOSET SPACE Yes

CABINETS & COUNTERTOPS Yes

BATHROOM FIXTURES Yes

WASHER & DRYER No, Hook Ups In All Units

FIREPLACES No

CONSISTANT FINISH LEVELS IN ALL UNITS?

Yes

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property detailsproperty details

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COVINGTON, GAmarket overviewmarket overview

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Covington, GA is an Atlanta suburb, located 35 miles east of the city. The population in Covington currently stands at 111,000 people with an average household income of $72,000.

Facebook is building a $750 million data center campus with a potential investment of up to $42 Billion over the next 20 years. Facebook proposed a 416 acre data center campus 40-min outside of Atlanta in Covington. The California based company expects to invest $40 billion over the next two decades in Covington creating 500 jobs. The initial $750 million invest investment will create up to 100 tech jobs.

Piedmont Healthcare purchased Newton Medical Center in 2017 and has invested heavily in ER and specialist services. Piedmont Newton hospital is a 97 bed, community hospital located in Covington, GA offering 24-hr emergency services. The hospital staffs over 600 employees and medical staff of over 250 physicians.

“Hollywood Of the South”: With over 126 productions, 178 Screen Plays, and 1,034 Television episodes filmed in the City of Covington, no wonder it is called the Hollywood of the South and that is expected to grow.

Covington was the site for the popular television shows Dukes of Hazzard, the Heat of The Night, and The Vampire Diaries. Covington has become a popular tourist destination for long time fans of these shows. Fans often take tours of the town to experience the town their favorite shows were shot in. Tourists drawn to this film town increased spending from 2002 to 2012 by $60 million.

Three Ring Studios - The largest studio in the nation broke ground in 2018 and is set to complete in 2020 bringing Covington more than 1,700 jobs and national attention. Three Ring Studios is constructing a 160- acre, 400,000 square foot sound stage. The total project is expected to cost $120 million.

Triple Horse Studios - Founded in 1991 by Producer/Director Karl Hortsmann, was found to create an environment that breads creativity, imagination, and content creation. The studio includes sound stages, scenic operations, cameras, lighting, and grip equipment departments as well as post-production division featuring screening rooms, editorial, sound, foley, visual effects, color grade, and finishing.

Recently a bioscience firm Shire opened a $1.2 billion plasma manufacturing facility in 2018 that employs 1,500 people. Shire is a global biotechnology leader in rare diseases, currently employing 900 fulltime workers in Covington, GA. The site is expected to add additional roles in manufacturing, quality, engineering, maintenance, utilities, warehouse, and a variety of support and facility roles.

Nisshinbo Automotive Manufacturing Inc., will invest $72 million in the expansion of their facility creating 100 jobs. The company is a Japan-based leading manufacturer of environmentally friendly brake pads.

AVERAGE HOUSEHOLD INCOME IN 2019

$72,000

111,000CURRENT POPULATION 2019

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demand driversdemand drivers

market overviewmarket overview

.14

“Hollywood Of the South”With over 126 productions, 178 Screen Plays, and 1034 Television

episodes filmed in the City of Covington, no wonder it is called

the Hollywood of the South and that is expected to grow.

Three Ring Studios - The largest studio in the nation broke

ground in 2018 and is set to complete in 2020 bringing Covington

more jobs and national attention.

Triple Horse Studios - Before there was Three Ring Studios,

there was Triple Horse Studios, which has generated hundreds

of millions of dollars for Newton County and the City of Covington

before the construction of Three Ring Studios.

Transportation Hub/Connecting LocationAirports - Covington Municipal Airport is a 5,500ft paved

runway that is less than a 35 minute drive from Hartsfield

Jackson International Airport. CMA provides quicker access

to Covington and Newton county without the congestion of

Hartsfield Jackson International Airport.

Railroads - Norfolk Southern and CSX have rail lines running

through Covington, which employs many workers from the city.

Roads - Located right off of I-20, Almon Church Apartments,

allows the residents ease of access all over the state and

country.

Economic Impact of “Hollywood of the South”In 2016, tourism in Newton County generated $129.02 million in

direct tourist spending, which was an increase of over $3 million

dollars from 2015! The economic impact of film tourism last

year also supported local payroll in excess of $23 million, and

generated $3.70 million in local tax revenues. Not to mention,

Newton County residents saw a significant tax break per

household as a result of taxes generated by tourism economic

activity.

Downtown CovingtonDowntown Covington was named one of the Prettiest Small

Towns in Georgia by Southern Living Magazine in 2017, and it

was voted Best Town Square in Atlanta by the readers of The

Atlanta Journal-Constitution in 2018.

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Oxford College of

Covington Square

Covington Municipal Airport

36 ALMON

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rent comparablesrent comparables# Property Year Built # Units Occupancy Average SF Average Rent Average RPSF

36 Almon 1965; (R) 2016-2018 30 100.0% 900 $597 $0.66

1 Salem Terrace* 1977/2002 70 85.7% 736 $840 $1.14

2 Willows East 1968 24 91.7% 900 $725 $0.81

3 Village Townhomes of Oxford 1983 40 82.5% 1,025 $800 $0.78

Average 45 86.6% 887 $788 $0.91

1

2

3

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36 ALMON

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

Mar

ket R

ent Salem Terrace

Village Townhomes of Oxford

Willows East

36 Almon Church rd

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Mar

ket R

ent p

er S

F

Salem Terrace

Willows East

Village Townhomes of Oxford

36 Almon Church rd

*Asking rents on renovated units

# of Units

Size (SF) Market Rate

Unit Type Unit Total Total PSF

2 BR / 1 BA 30 900 27,000 $597 $0.66

Total/Average 30 900 27,000 $597 $0.66

# of Units

Size (SF) Market Rate

Unit Type Unit Total Total PSF

1 BR / 1 BA 20 600 12,000 $715 $1.19

2 BR / 1 BA 40 770 30,800 $890 $1.16

2 BR / 1 BA 10 870 8,700 $890 $1.02

Total/Average 70 736 51,500 $840 $1.14

Address 36 Almon Church Rd Covington, GA 30014

built 1965

occupancy 100%

Address 3400 Salem RdCovington, GA 30016

built 1977/2002

occupancy 85.7%

2 BR100%

2 BR71%

1 BR29%

1

rent comparablesrent comparables

SALE

M T

ERRA

CE

# of Units

Size (SF) Market Rate

Unit Type Unit Total Total PSF

2 BR / 1 BA 24 900 21,600 $725 $0.81

Total/Average 24 900 21,600 725 $0.81

Address 1204-1216 Lakeview Dr NWConyers, GA 30012

built 1968

occupancy 91.7%

2br100%

2

WIL

LOW

S EA

ST

consolidated

# of Units

Size (SF) Market Rate

Unit Type Unit Total Total PSF

2 BR / 1.5 BA 40 1,025 41,000 $800 $0.78

Total/Average 40 1,025 41,000 $800 $0.78

Address 481 Moore stOxford, GA 30054

built 1983

occupancy 82.5%

2br100%

3

VILL

AGE

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FORD

36 A

LMON

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$ TOTAL $ PER UNIT $ PER SF % OF EGR

OPERATING REVENUE POTENTIAL MARKET RENT $ 282,585 $ 9,419 $ 10.47 100.00%

EFFECTIVE GROSS REVENUE $ 282,585 $ 9,419 $ 10.47 100.00%

OPERATING EXPENSES % OF EGR REPAIR & MAINTENANCE $ 18,000 $ 600 $ 0.67 6.37% CONTRACT SERVICES $ 9,000 $ 300 $ 0.33 3.18% PERSONNEL $ 24,000 $ 800 $ 0.89 8.49% ADMINISTRATIVE EXPENSES $ 2,250 $ 75 $ 0.08 0.80% OTHER UTILITIES $ 1,563 $ 52 $ 0.06 0.55% INSURANCE $ 12,065 $ 402 $ 0.45 4.27% REAL ESTATE TAXES $ 29,781 $ 993 $ 1.10 10.54% PROPERTY MANAGEMENT FEE $ 8,478 $ 283 $ 0.31 3.00% OTHER OPERATING EXPENSES $ 867 $ 29 $ 0.03 0.31%

TOTAL OPERATING EXPENSES $ 106,003 $ 3,533 $ 3.93 37.51%

NET OPERATING INCOME

NET OPERATING INCOME (BEFORE RESERVES) $ 176,581 $ 5,886 $ 6.54 62.49%

REPLACEMENT RESERVES $ 6,000 $ 200 $ 0.22 2.12% NET OPERATING INCOME (AFTER RESERVES) $ 170,581 $ 5,686 $ 6.32 60.36%

year 1 pro formayear 1 pro forma

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income & expense notesincome & expense notes

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INCOME

Gross Potential Rent The Year 1 pro forma has projected rent to grow to $785 per unit per month, based on comparable properties in the market. Going forward we forecast rent to grow by 3% annually.

EXPENSES

GROWTH ASSUMPTION Expenses are assumed to grow at a rate of 2.5% annually.

UtilitiesUtilities include the cost of electricity for common areas, electric for vacant units, water/sewer for vacant units, gas/propane, water/sewer, and garbage removal. The total utilities are projected to total $52/unit or $1,563 for Year 1.

Maintenance & RepairsMaintenance and repairs is a consolidation of the cost of all repairs and supplies necessary to maintain the property including grounds/landscaping. Year 1 Pro forma projection for R&M is $600/unit or $18,000 annually.

PayrollPayroll is the consolidation of leasing, administrative, and maintenance salaries, as well as the associated employee benefits. Pro forma payroll expense is $800/unit or $24,000 annually.

ADMIN/OFFICEAdmin/Office expenses include property management software fees, telephone bill, office supplies, as well as other miscellaneous costs. Pro forma administrative expenses are assumed to be $75/unit or $2,250 annually.

InsuranceInsurance expenses include property and general liability insurance. The pro forma projects total insurance expenses to be $402/unit or $12,065 annually.

Property Taxes

Property taxes encompass real estate taxes for Newton County, Georgia. The tax identifier of the property is parcel number 0024000000057000, and the most recent millage rate is $35.453 per $1000 of value. *Please note, it is always necessary to get an independent opinion from a tax attorney when making purchase-oriented tax assumptions.

Management FeesPro forma property management fees are projected to be 3% of the effective gross revenue, which is historically competitive with third party management firms.

Replacement ReservesPro forma replacement reserves are assumed to be $200/unit or $6,000 annually. This figure is considered to be market for assets of this vintage and location.

36 ALMONALEX TANJGAAssociate+1 404 877 9289alex.tanjga@colliers.com

WILL MATHEWSManaging Director | Platform Leader+1 404 877 9285will.mathews@colliers.com

ATLANTAPromenade, Suite 800 | 1230 Peachtree Street NEAtlanta, GA 30309-3574 | United Statestel +1 404 888 9000