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Offering Memorandum Premier Multi Family Investment Opportunity

Woodside Apartments, Mt. Pleasant MI

Rem Murray rem@hscre.com Mobile: 586.212.3454

Barry Landau barry@hscre.com Mobile: 248.495.5666

30054 Orchard Lake Rd. Farmington Hills, MI 48334

248.538.4800 www.hscre.com

Exclusive Marketing Agent

Executive Summary

Howard Schwartz Commercial Real Estate, LLC is pleased to present the disposition of the multi family apartment community located on Flynn Lane in Mount Pleasant, MI. The subject property is within one half mile of Central Michigan University and across from Mt. Pleasant High School. The property is comprised of 20 buildings, each apartment having their own individual entrances. The spacious complex allows for large, open common area for tenants to enjoy leisure activities. Each unit is individually metered for electricity and gas allowing an investor to pass these costs on to the tenant. Additionally there are six vacant lots on the property which allows an investor the ability to construct twenty-five more units. This stabilized asset has tremendous value by raising rental rates to market rate and by building the additional units. Centrally located in the lower peninsula of Michigan, Mount Pleasant is a regional centre for healthcare, commerce, retail, casino gaming and tourism, and most importantly, higher education. Mount Pleasant is strategically located along the Route 127 Corridor and is the County Seat of Isabelle County. While it is the second largest employer, Central Michigan anchors the local economy. The University is one of the 100 largest public universities in the country and is well known for its programs in journalism, music and teacher education. The University helps the local economy by creating jobs and driving demand for local businesses and housing. The University is also growing in prestige and importance, most notably, the university added a Medical School in 2013 and currently continues academic expansion. With a student body growing in size, and with the addition of more graduate students, the multi-family sector is poised to capitalize on increased demand throughout Isabelle County.

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The information contained in this offering memorandum has been received from sources deemed to be reliable. It is being furnished to a prospective purchaser of the property solely as a guideline for the actual performance of the investment. A prospective purchaser is advised to undergo their own due diligence with regards to the current and future performance of this investment. Information contained in this offering is subject to errors, change, withdraw without notice. In no event shall a prospective purchaser have any claims against the seller, Howard Schwartz Commercial Real Estate, LLC. or any of their affiliates with regards to the marketing or sale of the property.

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Property Amenities

Common area Amenities

Ample Parking

Park Like Setting

Well Maintained Landscape

Spacious Open Areas

Unit amenities

Large Modern Units

Gas & Electric Utilities Paid By Tenant

Laundry in Each Unit

Individual Entrances

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Current Unit Mix

Number of Units Bedrooms

& Bathrooms

Square Feet

Price Per Month

80 2 / 1 900 $650

4 (ADA Compliant)

1 / 1 810 $600

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Property Photos

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Property Photos

Property Address 1510 Flynn Lane, Mount Pleasant, Michigan

Assessor’s Parcel Number 170001432500, 170001433300, 170001432200, 170001433400, 170001433800, 170001430300, 170001430400, 170001430500, 170001431000

Zoning Multi Family

Site Description

Number of Units 84

Number of Buildings 20

Number of Stories Bi-Level

Year Built 2001

Rentable Square Feet Approximately 900 Square Feet per Unit

Lot Size 7.82 Acres

Type of Ownership Fee Simple

Landscaping Updated Landscaping

Topography Mostly Flat

Utilities

Water Landlord

Phone Tenant

Electric Tenant

Gas Tenant

Construction

Foundation Concrete

Framing Wood

Exterior Vinyl Siding

Parking Surface Asphalt

Roof Pitched Shingle

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Property Summary

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Pro Forma

Gross Potential Rent $753,600.00

Damages Income $7,200.00

Vacancy Factor/ Collections (6%) ($45,216.00)

Total Income $715,584.00

Expenses

Accounting Fees $7,000.00

Inspection Fees $3,000.00

Insurance $12,000.00

*Property Tax ( based on uncapped values) $157,000.00

Professional Fees $1,000.00

Repairs & Maintenance $46,000.00

Utilities – Electric & Gas $4,250.00

Utilities – Water $26,000.00

Trash Removal $4,100.00

Management Fee (4%) $30,144.00

Reserve for Replacement ($200/Unit) $16,800.00

Total Expenses $307,294.00

NET OPERATING INCOME $408,290.00

*Calculation taken from the city of Mt. Pleasant website

Market Rents

Number of Units Bedrooms

& Bathrooms

Square Feet

Market Rent

80 2/1 900 $750.00

4 1/1 810 $700.00

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Financial Analysis

Acquisition Price $5,100,00

Cap Rate 8.0%

Down Payment (25%) $1,275,000

Loan Amount (75% LTV) $3,825,000

Interest Rate 4.75%

Term 25 Years

Loan Payment (Annually) $261,685

NOI $408,290

Cash Flow $146,605

Cash on Cash (Year 1) 11.5%

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303 304 305

SOLD

SOLD 310

338

334 333

332 325

303 - Vacant Land 325- Vacant Land

304- Vacant Land 333 - Vacant Land

305 - Vacant Land 322 - Vacant Land

310 - 8 Buildings 334 – 6 Buildings

338 – 6 Buildings

Parcel Aerial

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Area Amenities

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Area Amenities

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Typical Two Bedroom Unit

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RENT COMP ADDRESSES

Canterbury East: 1517 Canterbury Trail

Park Place: 1401 E. Bellows Street

Yorkshire Commons: 1251 E. Broomfield Street

Dover Court: 1441 E. Broomfield Street

Stonecrest Apartment: 2880 Isabella Road

Rent Comps

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Canterbury East: 1517 Canterbury Trail

•$850.00 •2 Bedroom/ 2 Bathroom •942 Square Feet

Park Place: 1404 E. Bellows Street

•$675.00 •2 Bedroom/ 1 Bathroom •837 Square Feet

Yorkshire Commons: 1251 E. Broomfield Street

•$770.00 •2 Bedroom/ 2 Bathroom •910 Square Feet

Dover Court: 1441 E. Broomfield Street

•$727.00 •2 Bedroom/ 1 Bathroom •872 Square Feet

Stonecrest Apartment: 2880 Isabella Road

•$867.00 •2 Bedroom / 2 Bathroom •987 Square Feet

Rent Comps