1245 s 4 st 1231 s 4 st - constant...

1245 S 4th St1231 S 4th St

Louisville, KY 40203

CAVALIER APARTMENTSLouisville, KYACT ID Y0530002

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in thismarketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with,or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent,product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenantlessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BECONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but wemake no representations or warranties, express or implied, as to the accuracy of the information. References to squarefootage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. Allrights reserved.

CAVALIER APARTMENTS

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INVESTMENT

OVERVIEW

PROPERTY OVERVIEW

CAVALIER APARTMENTS

PROPERTY OVERVIEW

Marcus & Millichap is honored to facilitate the sale of historic Cavalier Apartments, located in beautiful Old Louisville (KY). OldLouisville is a historic district and neighborhood in central Louisville between the University of Louisville and Downtown. It is thethird largest such district in the United States, and the largest preservation district featuring almost entirely Victorian Architecture. Itis also unique in that a majority of its structures are made of brick, and the neighborhood contains the highest concentration ofresidential homes with stained glass windows in the U.S.

Cavalier Apartments is a true representation of the historic charm of Old Louisville. The attention to detail of this 1920 constructedapartment building is impeccable. Current ownership has done a fantastic job of preserving the original features including masonrydetails, custom interior millwork, artful tile work, and ornate flooring throughout.

Cavalier provides a new owner the opportunity to acquire a solid asset in a dense, “hip” residential area. This asset will continue toexperience fantastic investment returns through minimal unit upgrades.

PROPERTY | AREA OVERVIEW

� 48 Units

� 6 completely updated units in separate building

� On site Laundry

� Close proximity to Downtown and University of Louisville

� Historic Old Louisville Neighborhood

� On Site Management and Maintenance

� Close to Beautiful Central Park – home of the famous St. James Court Art Show.

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SUBMARKET

MAYFLOWER APARTMENTS

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Old Louisville is a historic neighborhood in central Louisvillecomprising of about 1,200 acres. Block after block ofbeautiful Victorian Homes make it the largest Victoriandistrict in the United States. Just a 2 minute drive from theexpressway, it is conveniently nestled between ChurchillDowns and the University of Louisville and downtown.Some attractions to the area include the renowned annualSt. James Court Art Show , The Filson Historical Society,Louisville’s Central Park and the small castle-like ConradCaldwell House. Two of the city’s major 4-year universities(Spalding and University of Louisville) are adjacent to thishistorical District.

The Conrad Caldwell House is one of the manybeautifully preserved buildings of Old Louisville.Attracting many visitors, this museum holdsmany community events and tours. In 2014, theHouse was ranked as a top 10 Louisvilleattraction on TripAdvisor

SUBMARKET HIGHLIGHTS

MAYFLOWER APARTMENTS

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For the past 60 years, artists fromall over the country have met outsideCentral Park in Louisville for the St.James Court Art Show. The showbrings Community together andprovides funding for thebeautification of the area anddowntown.

A short walk fromOld Louisville is thelegendary Churchilldowns. The areastays busy with liveraces from April toNovember, andmuseum tours.

REGIONAL MAP

CAVALIER APARTMENTS

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LOCAL MAP

CAVALIER APARTMENTS

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AERIAL PHOTO

CAVALIER APARTMENTS

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Cavalier Apartments – 42 units

Royal Cavalier – 6 units

FLOOR PLANS

CAVALIER APARTMENTS

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1 Bd/1Ba 1 Bd/1Ba

FLOOR PLANS

CAVALIER APARTMENTS

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2 Bd/1Ba 1231 Address

PROPERTY PHOTOS

CAVALIER APARTMENTS

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6 Garage Spaces

PROPERTY PHOTOS

CAVALIER APARTMENTS

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Beautifully Landscaped Courtyard

Secure Single Point of Entry with Security Cameras

PROPERTY PHOTOS

CAVALIER APARTMENTS

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Wonderful Preservation from The Early 1900’s

PROPERTY PHOTOS

CAVALIER APARTMENTS

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CAVALIER APARTMENTS

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COMPARABLESMARKET

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

RENT COMPARABLES

CAVALIER APARTMENTS

1245 S 4TH ST, LOUISVILLE, KY, 40203

CAVALIER APARTMENTS


CAVALIER APARTMENTS


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PARK CHATEAU512 W ORMSBY AVE, LOUISVILLE, KY, 40203

OCCUPANCY: 76% | YEAR BUILT: 1950

1

Unit Type Units SF Rent Rent/SF

Studio 1 Bath 100 411 $626 $1.53

1 Bdr 1 Bath 28 454 $669 $1.48

Total/Avg. 128 433 $647.50 $1.51

NOTESAir Conditioning, Business Center, Cable Ready, Carpet, Ceiling Fans, Clubhouse, Controlled Access, Elevator, Fitness Center, Gated, Grill, Heating, High Speed Internet Access, Laundry Facilities, Lounge, Maintenance on site, Package Service ... Concessions: 0 Amenities: Air Conditioning, Business Center, Cable Ready, Carpet, Ceiling Fans, Clubhouse, Controlled Access, Elevator, Fitness Center, Gated, Grill, Heating, High Speed Internet Access, Laundry Facilities, Lounge, Maintenance on site, Package Service ...

URBAN FLATS735 S 2ND ST, LOUISVILLE, KY, 40202

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1 Bdr 1 Bath 24 510 $749 $1.47

2 Bdr 2 Bath 42 845 $926 $1.10

Total/Avg. 66 678 $837.50 $1.29


NOTESAir Conditioning, Alarm, Cable Ready, Carpet, Ceiling Fans, Clubhouse, Controlled Access, Dining Room, Dishwasher, Elevator, Fitness Center, Gated, Grill, Heating, Kitchen, Maintenance on site, Microwave, Package Service, Picnic Area ... Concessions: 0 Amenities: Air Conditioning, Alarm, Cable Ready, Carpet, Ceiling Fans, Clubhouse, Controlled Access, Dining Room, Dishwasher, Elevator, Fitness Center, Gated, Grill, Heating, Kitchen, Maintenance on site, Microwave, Package Service, Picnic Area ...

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

RENT COMPARABLES

FURLONG APARTMENTS

1500 OLEANDA AVE, LOUISVILLE, KY, 40215

FURLONG APARTMENTS


FURLONG APARTMENTS


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LOFTS OF BROADWAY419 FINZER ST, LOUISVILLE, KY, 40203


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Studio 1 Bath 83 724 $762 $1.06

Total/Avg. 83 724 $762.00 $1.06

NOTESAir Conditioning, Balcony, Dishwasher, Gated, Hardwood Floors, High Speed Internet Access, Kitchen, Laundry Facilities, Range, Refrigerator, Satellite TV, Storage Units, Vaulted Ceiling, Views, Washer/Dryer, Washer/Dryer Hookup ... Concessions: 0.5 Amenities: Air Conditioning, Balcony, Dishwasher, Gated, Hardwood Floors, High Speed Internet Access, Kitchen, Laundry Facilities, Range, Refrigerator, Satellite TV, Storage Units, Vaulted Ceiling, Views, Washer/Dryer, Washer/Dryer Hookup ...

STATION HOUSE1509 S 6TH ST, LOUISVILLE, KY, 40208

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Studio 1 Bath 1 $500

1 Bdr 1 Bath 18 540 $836 $1.55

2 Bdr 2 Bath 85 911 $1,018 $1.12

Total/Avg. 104 726 $784.67 $0.89


NOTESAir Conditioning, Alarm, Cable Ready, Cardio Machines, Clubhouse, Controlled Access, Dishwasher, Fitness Center, Free Weights, Gated, Heating, Kitchen, Laundry Facilities, Media Center/Movie Theatre, Microwave, Online Services, Oven, Pool, Range ... Concessions: 0 Amenities: Air Conditioning, Alarm, Cable Ready, Cardio Machines, Clubhouse, Controlled Access, Dishwasher, Fitness Center, Free Weights, Gated, Heating, Kitchen, Laundry Facilities, Media Center/Movie Theatre, Microwave, Online Services, Oven, Pool, Range ...

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

RENT COMPARABLES

THE CORNERSTONE LOFTS

236 E KENTUCKY ST, LOUISVILLE, KY, 40203





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THE CORNERSTONE LOFTS236 E KENTUCKY ST, LOUISVILLE, KY, 40203

OCCUPANCY: 96%

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1 Bdr 1 Bath 22 $351

2 Bdr 1 Bath 22 900 $659 $0.74

3 Bdr 1 Bath 7 1,000 $745 $0.75

Total/Avg. 51 950 $585.00 $0.50

NOTESHeating, Kitchen, Range Concessions: 0.6 Amenities: Heating, Kitchen, Range

HAMPTON PLACE1549 W MADISON ST, LOUISVILLE, KY, 40203


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1 Bdr 1 Bath 60 575 $523 $0.91

2 Bdr 1 Bath 77 817 $652 $0.80

3 Bdr 1.5 Bath 13 1,100 $894 $0.82

Total/Avg. 150 831 $689.67 $0.84

NOTESAir Conditioning, Wheelchair Accessible (Rooms) Concessions: 0.4 Amenities: Air Conditioning, Wheelchair Accessible (Rooms)

MAYFLOWER APARTMENTS425 W ORMSBY AVE, LOUISVILLE, KY, 40203

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Studio 1 Bath 48 470 $630 $1.35

1 Bdr 1 Bath 34 750 $725 $0.97

2 Bdr 1 Bath 12 1,042 $987 $0.95

3 Bdr 2 Bath 1 2,000 $1,318 $0.66

Total/Avg. 95 1,066 $915.00 $0.98


NOTESAir Conditioning, Fitness Center, Laundry Facilities, Wheelchair Accessible (Rooms) Concessions: 0.9 Amenities: Air Conditioning, Fitness Center, Laundry Facilities, Wheelchair Accessible (Rooms)

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

RENT COMPARABLES

UNIVERSITY PARK APARTMENTS

2207 JAMES PIRTLE CT, LOUISVILLE, KY, 40217





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UNIVERSITY PARK APARTMENTS2207 JAMES PIRTLE CT, LOUISVILLE, KY, 40217


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Studio 1 Bath 16 667 $597 $0.90

1 Bdr 1 Bath 118 655 $628 $0.96

2 Bdr 1 Bath 64 895 $738 $0.83

3 Bdr 2 Bath 26 1,163 $990 $0.86

Total/Avg. 224 845 $738.25 $0.89

NOTESAir Conditioning, Cable Ready, Dishwasher, High Speed Internet Access, Laundry Facilities, Range, Refrigerator, Tennis Court Concessions: 0 Amenities: Air Conditioning, Cable Ready, Dishwasher, High Speed Internet Access, Laundry Facilities, Range, Refrigerator, Tennis Court

WEISSINGER-GAULBERT APARTMENTS707 S 3RD ST, LOUISVILLE, KY, 40202


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Studio 1 Bath 25 300 $554 $1.85

1 Bdr 1 Bath 34 637 $703 $1.11

2 Bdr 2 Bath 22 1,014 $936 $0.93

3 Bdr 2 Bath 14 2,037 $1,604 $0.79

4 Bdr 3 Bath 1 2,275 $3,336 $1.47

Total/Avg. 96 1,253 $1,426.60 $1.23

NOTESAir Conditioning, Cable Ready, Dishwasher, Disposal, Fitness Center, Heating, Kitchen, Laundry Facilities, Range, Refrigerator, Vintage Building, Wi-Fi Concessions: 0.7 Amenities: Air Conditioning, Cable Ready, Dishwasher, Disposal, Fitness Center, Heating, Kitchen, Laundry Facilities, Range, Refrigerator, Vintage Building, Wi-Fi

THE ST. FRANCIS BUILDING233 W BROADWAY, LOUISVILLE, KY, 40202

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Studio 1 Bath 25 600 $552 $0.92

1 Bdr 1 Bath 25 675 $702 $1.04

2 Bdr 1 Bath 8 1,025 $944 $0.93

Total/Avg. 58 767 $732.67 $0.96


NOTESAir Conditioning, Cable Ready, Controlled Access, Dishwasher, Elevator, Gated, Heating, Island Kitchen, Kitchen, Laundry Facilities, Linen Closet, Pantry, Property Manager on Site, Range, Refrigerator, Security System, Vaulted Ceiling ... Concessions: 0.8 Amenities: Air Conditioning, Cable Ready, Controlled Access, Dishwasher, Elevator, Gated, Heating, Island Kitchen, Kitchen, Laundry Facilities, Linen Closet, Pantry, Property Manager on Site, Range, Refrigerator, Security System, Vaulted Ceiling ...

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

RENT COMPARABLES

CARDINAL VILLAGE

1800 S 2ND ST, LOUISVILLE, KY, 40208

CARDINAL VILLAGE


CARDINAL VILLAGE


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CARDINAL VILLAGE1800 S 2ND ST, LOUISVILLE, KY, 40208


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1 Bdr 1 Bath 78 575 $695 $1.21

Total/Avg. 78 575 $695.00 $1.21

CAVALIER APARTMENTS

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FINANCIAL

OVERVIEW

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

FINANCIALS

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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Property Cavalier ApartmentsProperty Address 1245 S 4th St and 1231 S 4th St

Louisville, KYNumber of Units 48 UnitsNet Rentable Area 34,500 SFYear Built 1920

Sales Price $2,000,000Sales Price per Unit $41,667 Unit

Year 1 NOI $142,934PROJECTED PRICING INDICATORS & RETURNS

PRICING

PROPERTY DESCRIPTION

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

UNIT MIX

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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No. of Rentable Total Jan-2017 Jan-2017 Jan-2017Units Square Rentable Market Market Total Market

Feet Sq. Ft. Rent/Unit Rent/SF Rent Potential1231 S 4th Street 6 Units 800 SF 4,800 SF $700.00 $0.88 SF $4,2001 BR 18 Units 650 SF 11,700 SF $600.00 $0.92 SF $10,8002 BR 24 Units 750 SF 18,000 SF $650.00 $0.87 SF $15,600Totals / Wtd. Averages 48 Units 719 SF 34,500 SF $637.50 $0.89 SF $30,600

Unit Type

12%

38%50%

Unit Mix

1231 S 4th Street 1 BR 2 BR

$0.83 SF

$0.84 SF

$0.85 SF

$0.86 SF

$0.87 SF

$0.88 SF

$0.89 SF

$0.90 SF

$0.91 SF

$0.92 SF

$0.93 SF

$540

$560

$580

$600

$620

$640

$660

$680

$700

$720

Unit Market Rent

Rent Rent SF

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

FINANCIALS

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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48 Units Trailing Year 134,500 SF 12 Months Dec-2017 % of

Actuals Projection EGI

RENTAL INCOME$367,200 $425,952 (6) $8,874 $12.35($31,500) ($56,920) -13.36% -$1,186 -$1.65$335,700 369,032 $7,688 $10.70($24,000) ($18,452) 5.00% -$384 -$0.53($24,000) ($18,452) -$384 -$0.53

Late Charges/NSF $0 $1,000 $21 $0.03Security Deposit Forfeiture $0 $1,000 $21 $0.03

$0 $1,500 $31 $0.04$1,530 $1,500 $31 $0.04

$0 $600 $13 $0.02TOTAL OTHER INCOME $1,530 $5,600 $117 $0.16

$313,230 $356,181 (100.0%) $7,420 $10.32

$22,308 $26,000 (1) (7.3%) $542 $0.75$15,650 $15,000 (4.2%) $313 $0.43$47,052 $48,000 (2) (13.5%) $1,000 $1.39$85,010 $89,000 (25.0%) $1,854 $2.58

$18,747 $18,000 (5.1%) $375 $0.52$55,314 $60,000 (5) (16.8%) $1,250 $1.74$16,731 $15,000 (4.2%) $313 $0.43

$0 $14,247 4.00% (3) (4.0%) $297 $0.41$1,586 $5,000 (1.4%) $104 $0.14

$0 $12,000 (4) (3.4%) $250 $0.35$92,378 $124,247 (34.9%) $2,588 $3.60

$177,388 $213,247 (59.9%) $4,443 $6.18

$135,842 $142,934 (40.1%) $2,978 $4.14

Going-In CAP$2,000,000 6.79% 7.15%

NET OPERATING INCOME RETURN

TOTAL EXPENSES

NET OPERATING INCOME

NOI/Sales Price

UtilitiesInsuranceReal Estate Taxes

Replacement & ReservesTOTAL CONTROLLABLE

On-Site PayrollRepairs & Maintenance

TOTAL NON-CONTROLLABLE

Contract Services

EFFECTIVE GROSS INCOME

EXPENSES

Washer/Dryer Rental & LaundryPet Fees

Garage Income (8 spots)

TOTAL ECONOMIC LOSS

Other Income

Gain (Loss)-to-Lease

Management Fee **General & Administrative

GROSS POTENTIAL RENTVacancy/Collection Allowance *

Notes Per Unit Per SF

All Units at Market Rent

Number of UnitsNet Rentable Area

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

FINANCIALS

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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(1) Reassed to Purchase Price. Rate = .013 x Purchase Price

(2) Landlord Currently Pays all Water, Sewer, Gas, and House Electric. Tenant Pays for Individual Electric.

(3) Currently Self Managed. Property Manager salary included in On-Site Payroll

(4) Capital Expenditures occurred in T12 Expenses. $250 per unit in Proforma Reserves

(5) 1 Part Time Maintenance and 1 Part Time Manager.

(6)Approx $100/Unit/Month increase after $4,000 Per Unit Capital Improvements (Cavalier units only). This includes new appliance package, landscape upgrades, security gate and plumbing upgrades.

Notes to Projected Year 1 Income/Expense

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

FINANCIALS

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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1 2 3 4 5 6 7 8 9 10Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026

All Units at Market Rent $425,952 $438,731 $451,892 $465,449 $479,413 $493,795 $508,609 $523,867 $539,583 $555,771Gain (Loss)-to-Lease ($56,920) ($6,581) ($5,649) ($4,654) ($4,315) ($3,950) ($3,560) ($3,143) ($2,698) ($2,223)

$369,032 $432,150 $446,244 $460,795 $475,098 $489,845 $505,049 $520,724 $536,885 $553,548

Vacancy/Collection Allowance * ($18,452) ($21,607) ($22,312) ($23,040) ($23,755) ($24,492) ($25,252) ($26,036) ($26,844) ($27,677)Office $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

($18,452) ($21,607) ($22,312) ($23,040) ($23,755) ($24,492) ($25,252) ($26,036) ($26,844) ($27,677)

$5,600 $5,768 $5,941 $6,119 $6,303 $6,492 $6,687 $6,887 $7,094 $7,307

$356,181 $416,310 $429,873 $443,874 $457,646 $471,844 $486,483 $501,575 $517,135 $533,177

Real Estate Taxes $26,000 $26,780 $27,583 $28,411 $29,263 $30,141 $31,045 $31,977 $32,936 $33,924Insurance $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572Utilities $48,000 $49,440 $50,923 $52,451 $54,024 $55,645 $57,315 $59,034 $60,805 $62,629

$89,000 $91,670 $94,420 $97,253 $100,170 $103,175 $106,271 $109,459 $112,743 $116,125

Repairs & Maintenance $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 $21,493 $22,138 $22,802 $23,486Marketing & Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0On-Site Payroll $60,000 $61,800 $63,654 $65,564 $67,531 $69,556 $71,643 $73,792 $76,006 $78,286General & Administrative $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572Management Fee $14,247 $16,652 $17,195 $17,755 $18,306 $18,874 $19,459 $20,063 $20,685 $21,327TBD $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Replacement & Reserves $12,000 $12,360 $12,731 $13,113 $13,506 $13,911 $14,329 $14,758 $15,201 $15,657

$124,247 $129,952 $133,894 $137,955 $142,112 $146,394 $150,805 $155,349 $160,030 $164,852

$213,247 $221,622 $228,314 $235,208 $242,282 $249,569 $257,076 $264,808 $272,773 $280,977

$142,934 $194,688 $201,559 $208,667 $215,364 $222,275 $229,407 $236,767 $244,362 $252,200

Fiscal Year Ending:

NET OPERATING INCOME

TOTAL EXPENSES

TOTAL ECONOMIC LOSS

GROSS POTENTIAL RENT

RENTAL INCOME

TOTAL CONTROLLABLE

TOTAL NON-CONTROLLABLE

EXPENSES

EFFECTIVE GROSS INCOME

TOTAL OTHER INCOME

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

FINANCIALS

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


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0 1 2 3 4 5 6 7 8 9 10Equity Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026

$142,934 $194,688 $201,559 $208,667 $215,364 $222,275 $229,407 $236,767 $244,362 $252,200 (2,173,000) 1,556,862 100,791 107,662 114,770 121,467 128,379 135,511 142,871 150,466 158,304

5 Yr Avg: 8.87% 6.58% 8.96% 9.28% 9.60% 9.91% 10.23% 10.56% 10.90% 11.25% 11.61% 5 Yr Avg: 18.42% 71.65% 4.64% 4.95% 5.28% 5.59% 5.91% 6.24% 6.57% 6.92% 7.29%

72.62% 6.73% 8.21% 9.76% 11.35% 13.01% 14.75% 16.57% 18.47% 20.45% 10 Yr IRR: 17.42% 12.78% 15.56% 16.81% 17.31% 17.53% 17.62% 17.62% 17.57% 17.51% 17.42%

10 Yr ROEX: 2.15 x 1.13 x 1.22 x 1.32 x 1.43 x 1.54 x 1.65 x 1.77 x 1.89 x 2.02 x 2.15 x

1 2 3 4 5 6 7 8 9 10Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026

8.00% $2,269,253 $2,386,872 $2,497,604 $2,595,999 $2,688,426 $2,775,259 $2,856,848 $2,933,520 $3,005,582 $3,073,3198.50% $2,258,796 $2,371,536 $2,476,823 $2,569,398 $2,655,651 $2,736,022 $2,810,919 $2,880,721 $2,945,781 $3,006,4259.00% $2,248,434 $2,356,381 $2,456,357 $2,543,300 $2,623,622 $2,697,828 $2,766,386 $2,829,726 $2,888,246 $2,942,3129.50% $2,238,167 $2,341,403 $2,436,200 $2,517,692 $2,592,316 $2,660,642 $2,723,197 $2,780,461 $2,832,874 $2,880,84010.00% $2,227,994 $2,326,599 $2,416,346 $2,492,563 $2,561,712 $2,624,431 $2,681,301 $2,732,851 $2,779,564 $2,821,87710.50% $2,217,913 $2,311,966 $2,396,788 $2,467,900 $2,531,789 $2,589,160 $2,640,649 $2,686,829 $2,728,223 $2,765,29811.00% $2,207,922 $2,297,503 $2,377,521 $2,443,691 $2,502,528 $2,554,800 $2,601,194 $2,642,329 $2,678,760 $2,710,98611.50% $2,198,021 $2,283,205 $2,358,538 $2,419,926 $2,473,910 $2,521,319 $2,562,892 $2,599,287 $2,631,092 $2,658,83012.00% $2,188,208 $2,269,070 $2,339,833 $2,396,593 $2,445,916 $2,488,690 $2,525,701 $2,557,644 $2,585,137 $2,608,724

Equity Multiple

Discount Rate

PRESENT VALUESFiscal Year Ending

Fiscal Year Ending

Present Values at Various Discount Rates & Holding Periods Leveraged Cash Flows & Reversion

RETURNS - Leveraged

Cash to Initial Equity Plus Principal Reduction

NOILeveraged Cash FlowNOI ReturnCash to Initial Equity

Internal Rate of Return

CAVALIER APARTMENTS

29

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

AERIAL

CARDINAL VILLAGE


CARDINAL VILLAGE


CARDINAL VILLAGE


30

Cavalier Apartments

DOWNTOWN LOUISVILLE

University of Louisville

MARKET OVERVIEW

CAVALIER APARTMENTS

Louisville Metro

Market HighlightsCentralized location� Approximately 60 percent of U.S. cities are within a one-day drive of the metro.

Major distribution center� Louisville’s strategic location in the country has made it a hub for the logistics and distribution industries.

The Derby� Every year, attention is focused on Louisville when it hosts the Kentucky Derby, the most acclaimed horse-

racing event in the world.

LOUISVILLE

The Louisville metro comprises seven counties in north-central Kentucky and five in southern Indiana. The OhioRiver passes through the region, providing a wide and vast flood plain, surrounded by hilly terrain at the metro’sperimeter. The Knobs region, in southern Louisville, hosts the Jefferson Memorial Forest and is largelyundeveloped. With few natural barriers to limit outward expansion, the metro has recorded 21 percent populationgrowth since 1990.

Geography

31

MARKET OVERVIEW

Interstates 64 and 65 run through Louisville, while I-71 has its southern terminus there. All three of thesehighways intersect just east of downtown, in an area referred to as “Spaghetti Junction.” I-264 and I-265 arebeltways for Louisville motorists, and construction has begun on more bridges to span the Ohio River and link thecities of Louisville and Jeffersonville.

Most air traffic in Louisville is handled at Louisville International Airport, which houses the UPS Worldport globalair hub. Additional air service is provided by Bowman Field and Clark Regional Airport. CSX, Norfolk Southernand regional carriers operate freight rail service. On the Ohio River, the McAlpine Locks and Dam assist maritimeshipping. More than 50 million tons of cargo pass through the locks annually. Regional transportation in andaround Louisville is offered by the Transit Authority of River City (TARC), which operates the area’s bus network.

Infrastructure

The Louisville Metro is:� 100 miles from Cincinnati� 115 miles from Indianapolis� 175 miles from Nashville� 260 miles from St. Louis

Airports� Louisville International Airport� Bowman Field and Clark Regional Airport

Major Roadways� Interstates 64, 65, 71, 264 and 265� U.S. 31, 42, 6 and 150

Rail� Freight – CSX and Norfolk Southern� Regional Freight – Paducah and Louisville Railway and Louisville and Indiana Railroad

Ports� Port of Louisville

Louisville is home to nearly 1.3 million residents residing within Indiana’s Harrison, Washington, Clark, Floyd andScott counties, as well as Kentucky’s Jefferson, Spencer, Oldham, Trimble, Meade, Nelson, Shelby, Hardin,Larue, Bullitt and Henry counties. Louisville in Kentucky is the region’s largest city with more than 617,400citizens, followed by Jeffersonville, Indiana, which has 46,000 residents.

Metro

Largest Cities in Metro by PopulationLouisville 617,400

Jeffersonville 46,000

New Albany 37,200

Jeffersontown 27,300

Clarksville 22,000

St. Matthews 17,800

* ForecastSources: Marcus & Millichap Research Services; U.S. Census Bureau; Experian

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MARKET OVERVIEW

Although the region’s economy has been historically dominated by the shippingand rail industries, contemporary Louisville boasts a well-diversified economyfocused on advanced manufacturing, logistics, life sciences and healthcare,among other industry sectors. The metropolitan area is headquarters to threeFortune 500 companies, including Humana, Yum Brands and Kindred Healthcare.In recent decades, the area has attracted numerous medical and healthcareorganizations. Louisville’s downtown medical research campus draws some of thenation’s top medical talent.

In line with the metropolitan area’s legacy in the transportation industry,Louisville’s economy still benefits from being centrally located in the United States.It is within a one-day drive of 60 percent of U.S. cities. The UPS Worldport globalair-freight hub at Louisville International Airport makes the region an important

player in global shipping and logistics. Automotive and appliance manufacturingare also part of Louisville’s economic fabric, as is the spirits industry. In addition,roughly one-third of all bourbon is produced in the area.

The Louisville economy is accelerating, with the region’s gross metropolitanproduct on the rise. GMP is forecast to grow by approximately 3.1 percent thisyear. Local retail sales will continue to increase this year, expanding by 4.5percent. This figure is slightly below the national average of 5.4 percent.

Economy

* ForecastSources: Marcus & Millichap Research Services; Bureau of Economic Analysis; Moody’s Analytics; U.S. Census Bureau; Port of Louisville

LOUISVILLE

CAVALIER APARTMENTS

Port of Louisville Quick Facts

A Foreign-Trade Zone

Intermodal transportation transfer to rail, truck or barge

Bulk commodity transfer terminal

Can handle more than 4 million tons of dry bulk commodities per year

On-site warehousing

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MARKET OVERVIEW

The Louisville metropolitan area provides a total of 650,000 jobs and over the last five years, nonfarmemployment grew at an annual pace of 2.2 percent. Through 2020, annual employment gains are expected toslow slightly to 1.5 percent.

Trade, transportation and utilities is the largest major employment sector in Louisville, accounting for 21 percentof all jobs, or nearly 139,000 positions. This segment of employment is expected to grow 1.1 percent annuallythrough 2020. Education and health services comprises the second-biggest share of local jobs with 89,200positions, or 14 percent of total metro employment. Jobs in this field are forecast to increase 2.6 percent annuallyover the next five years. The professional and business services, and the government sectors, each contributeanother 13 percent of employment. Louisville is also a major manufacturer of both automotive components andelectrical appliances. Jobs in manufacturing represent 12 percent of regional payrolls.

Through 2020, jobs in construction are projected to post the most robust growth of all major employment sectors,at an average of 4.1 percent expansion each year. All employment sectors are forecast to grow over the next fiveyears and nine of 11 of them will grow in excess of 1.0 percent annually during this time.

Labor

* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

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MARKET OVERVIEW

Louisville has evolved from a transportation- and logistics-dominated employment landscape to a more diversified economy. Still, some of the most important employers in themetropolitan area are in transportation services. UPS’ central hub at Louisville International Airport provides a dynamic shipping and distribution industry to the region. UPSalone employs more than 20,000 workers. Additionally, Amazon is rapidly expanding operations in the Louisville metro.

The metropolitan area’s lively healthcare industry is also a major source of Louisville residents’ income. Numerous private hospitals and health insurance providers abound inthe region. Humana, Northern Healthcare, KentuckyOne Health and the Baptist Healthcare System comprise some of the largest local names in these industries. Humanaitself provides more than 12,000 regional jobs. The continued expansion of Louisville’s downtown medical research campus will likely attract an even greater presence ofhealthcare firms into the area.

Among the metro’s 75,900 jobs in manufacturing, many stem from automotive and household appliance fabrication. Ford Motor Co. employs approximately 9,000 workers atits Kentucky Truck Plant and Louisville Assembly Plant. Meanwhile, another 6,000 local manufacturing jobs are provided by GE Appliances in Louisville, which has beenpurchased by Electrolux.

Employers

Major EmployersUnited Parcel Services

Humana Inc.

Norton Healthcare Inc.

KentuckyOne Health Inc.

Ford Motor Co.

GE Appliances

The Kroger Co.

Baptist Healthcare System Inc.

Catholic Archdiocese of Louisville

LG&E and KU Energy LLC

* ForecastSources: Marcus & Millichap Research Services; BLS; Moody’s Analytics; Experian

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MARKET OVERVIEW

The Louisville metro has a population of nearly 1.3 million residents, a figure that grew roughly 14 percent from 2000 to 2015. Over the next five years, the metro population isexpected to expand at a pace of 4.0 percent, adding a total of nearly 50,900 people.

The population in Louisville is slightly older than the national level. The metro’s median age, at 38.7 years, is above the U.S. median of 37.5 years. This older and more settledworkforce has helped boost Louisville’s homeownership rate above the national average. In the metro, roughly 68 percent of residents own their own homes, compared withjust 64 percent nationally.

The Louisville median household income stands at $52,400 annually, slightly below the U.S. median of $56,100 per year. That said, the metro median income is rising. By2019, the Louisville median income level is forecast to be nearly $60,000 per year.

Although Louisville’s education attainment levels fall below the national average, these figures are trending higher. Currently, 26.4 percent of residents 25 or older have alsoearned at least a bachelor’s degree, and 10 percent have earned a graduate or professional degree. The continued attraction of young professionals to Louisville’s growingmedical community will help boost these numbers in the coming years.

Demographics

LOUISVILLE

* ForecastSources: Marcus & Millichap Research Services; AGS; Experian; Moody’s Analytics; U.S. Census Bureau

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MARKET OVERVIEW

The Louisville metro offers residents a wide array of entertainment and cultural amenities. The most famous is the Kentucky Derby, which annually attracts horse-racingenthusiasts and visitors from all over the world. The Derby itself plays a large part in Louisville’s culture, and both Churchill Downs and the Kentucky Derby Museum are opento the public year-round.

Other popular museums in the metro include the Louisville Slugger Museum and Factory and the Frazier History Museum. Visual arts can be found at the Speed Art Museum,which houses works by some of the world’s most famous painters. Louisville is also home to a number of renowned estates and historical houses. Louisville Palace, Conrad’sCastle, Locust Grove and the Belle of Louisville steamboat are all popular attractions. The metro also provides a multitude of performing arts options. The Louisville Ballet,Louisville Orchestra, Bourbon Baroque, the Kentucky Opera and other organizations stage events across the city, from the Actors Theatre of Louisville to the Kentucky Centerand Brown Theatre. The metro also has a vast independent music scene. The Louisville Zoo and Renaissance Fun Park are both popular attractions for children. Additionally,nature lovers can spelunk in the region’s widely popular Louisville Mega Cavern, and hike or bike the many miles of trails.

Louisville prides itself as one of the best college sports towns in the world. The NCAA’s University of Louisville Cardinals are a major source of entertainment for residents,and the metro’s other sports options include teams in minor league baseball to indoor soccer.

* ForecastSources: Marcus & Millichap Research Services; National Association of Realtors; Moody’s Analytics; U.S. Census Bureau

Quality of Life

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PROPERTY NAME

MARKETING TEAM

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DEMOGRAPHICS

Source: © 2016 Experian

Created on January 2017

POPULATION 1 Miles 3 Miles 5 Miles� 2020 Projection

Total Population 18,660 124,189 262,821� 2015 Estimate

Total Population 18,783 125,343 264,501� 2010 Census

Total Population 18,061 122,223 258,433� 2000 Census

Total Population 18,032 127,951 269,510� Daytime Population

2015 Estimate 34,122 243,796 400,496HOUSEHOLDS 1 Miles 3 Miles 5 Miles� 2020 Projection

Total Households 9,466 54,786 115,147� 2015 Estimate

Total Households 9,474 54,857 115,012Average (Mean) Household Size 1.78 2.13 2.20

� 2010 CensusTotal Households 9,021 53,273 111,973

� 2000 CensusTotal Households 9,356 55,916 116,731

Growth 2015-2020 -0.08% -0.13% 0.12%HOUSING UNITS 1 Miles 3 Miles 5 Miles� Occupied Units

2020 Projection 9,466 54,786 115,1472015 Estimate 11,117 63,370 128,814Owner Occupied 1,540 21,682 55,902Renter Occupied 7,934 33,174 59,111Vacant 1,644 8,514 13,802

� Persons In Units2015 Estimate Total Occupied Units 9,474 54,857 115,0121 Person Units 57.37% 42.70% 39.18%2 Person Units 25.01% 29.04% 30.42%3 Person Units 8.48% 13.22% 14.22%4 Person Units 4.92% 8.20% 9.06%5 Person Units 2.07% 3.76% 4.15%6+ Person Units 2.16% 3.08% 2.97%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles� 2015 Estimate

$200,000 or More 1.16% 1.33% 1.89%$150,000 - $199,000 1.01% 1.51% 2.00%$100,000 - $149,000 4.12% 5.28% 6.89%$75,000 - $99,999 4.36% 6.45% 8.06%$50,000 - $74,999 8.72% 13.69% 15.61%$35,000 - $49,999 10.21% 12.78% 13.81%$25,000 - $34,999 13.53% 11.89% 12.11%$15,000 - $24,999 16.92% 16.19% 15.41%Under $15,000 39.97% 30.88% 24.23%

Average Household Income $35,057 $42,738 $50,429Median Household Income $20,860 $27,311 $33,477Per Capita Income $19,084 $19,451 $22,413POPULATION PROFILE 1 Miles 3 Miles 5 Miles� Population By Age

2015 Estimate Total Population 18,783 125,343 264,501Under 20 21.06% 24.76% 24.65%20 to 34 Years 35.43% 26.78% 24.03%35 to 39 Years 5.49% 6.24% 6.15%40 to 49 Years 10.42% 11.92% 12.36%50 to 64 Years 16.42% 19.42% 20.43%Age 65+ 11.18% 10.90% 12.38%Median Age 30.51 33.97 36.01

� Population 25+ by Education Level2015 Estimate Population Age 25+ 11,549 82,243 177,515Elementary (0-8) 4.28% 3.73% 3.46%Some High School (9-11) 15.09% 14.69% 12.44%High School Graduate (12) 23.49% 29.35% 29.17%Some College (13-15) 24.15% 23.80% 23.72%Associate Degree Only 4.76% 5.27% 5.80%Bachelors Degree Only 16.65% 13.12% 14.21%Graduate Degree 10.78% 8.92% 9.89%

� Population by Gender2015 Estimate Total Population 18,783 125,343 264,501Male Population 51.15% 49.57% 48.69%Female Population 48.85% 50.43% 51.31%

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IncomeIn 2016, the median household income for your selected geography is$20,860, compare this to the US average which is currently . Themedian household income for your area has changed by 6.74% since2000. It is estimated that the median household income in your areawill be $23,787 five years from now, which represents a change of14.03% from the current year.

The current year per capita income in your area is $19,084, comparethis to the US average, which is . The current year average householdincome in your area is $35,057, compare this to the US average whichis .

PopulationIn 2016, the population in your selected geography is 18,783. Thepopulation has changed by 4.16% since 2000. It is estimated that thepopulation in your area will be 18,660.00 five years from now, whichrepresents a change of -0.65% from the current year. The currentpopulation is 51.15% male and 48.85% female. The median age of thepopulation in your area is 30.51, compare this to the US averagewhich is . The population density in your area is 5,972.32 people persquare mile.

HouseholdsThere are currently 9,474 households in your selected geography. Thenumber of households has changed by 1.26% since 2000. It isestimated that the number of households in your area will be 9,466five years from now, which represents a change of -0.08% from thecurrent year. The average household size in your area is 1.78persons.

EmploymentIn 2016, there are 22,581 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that55.37% of employees are employed in white-collar occupations in thisgeography, and 44.13% are employed in blue-collar occupations. In2016, unemployment in this area is 11.64%. In 2000, the average timetraveled to work was 22.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:52.08% White, 41.29% Black, 0.05% Native American and 1.94%Asian/Pacific Islander. Compare these to US averages which are:White, Black, Native American and Asian/Pacific Islander. Peopleof Hispanic origin are counted independently of race.

People of Hispanic origin make up 2.51% of the current yearpopulation in your selected area. Compare this to the US average of .

PROPERTY NAME

MARKETING TEAM

CAVALIER APARTMENTS

HousingThe median housing value in your area was $149,450 in 2016,compare this to the US average of . In 2000, there were 1,790 owneroccupied housing units in your area and there were 7,565 renteroccupied housing units in your area. The median rent at the time was$363.

Source: © 2016 Experian

DEMOGRAPHICS

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Cavalier ApartmentsLouisville, KY

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