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CYPRESS PLACE 8 Units | Ludowici, GA (Savannah, GA MSA)

OFFERING MEMORANDUM

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CONFIDENTIALITY AGREEMENT

INVESTMENT CONTACTS

GEORGE BACON

MANAGING DIRECTOR

P +1 904 394 2612

M +1 904 487 8171

GBACON@MULTIFAMILY-PARTNERS.COM

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 Cy-

press Place (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 infor-

mation which prospective investors may require to evaluate a purchase of real proper-

ty. All financial projections and information are provided for general reference purpos-

es only and are based on assumptions relating to the general economy, market condi-

tions, competition and other factors beyond the control of the Owner and Multifamily

Partners, LLC. 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 Multifamily Partners, LLC, 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 con-

tents, 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 investiga-

tions 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 ex-

pressions of interest or offers to purchase the Property, and/or to terminate discus-

sions 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 Owner’s

obligations therein have been satisfied or waived. Owner is a licensed broker in the

State of Georgia.

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 Multifamily Partners, LLC. 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 Multifamily Partners, LLC.

If after reviewing this Memorandum, you have no further interest in purchasing the

Property, kindly return this Memorandum to Multifamily Partners, LLC.

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CONTENTS

INVESTMENT SUMMARY

PROPERTY DESCRIPTION

PROPERTY/MARKET PHOTOS

AERIAL MAP

FINANCIAL ANALYSIS

LOCATION OVERVIEW

RECENT ECONOMIC NEWS

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INVESTMENT SUMMARY

THE OFFERING Cypress Place is an 8-unit multifamily property located in one of

the fastest growing areas of Georgia. Cypress Place is located ap-

proximately 15 miles (20 mins) from the main entrance Gate 1 of

Fort Stewart, the largest Army installation east the Mississippi Riv-

er. Fort Stewart has an economic impact of $5.6 billion and total

employment of 31,557 active duty and civilian employees. Lu-

dowici is a suburb of Hinesville, GA and located in Long County,

one of the fastest growing counties in Georgia boasting a 32%

population growth between 2010 and 2018. Additionally, the high

growth market of Savannah, GA, home to the fastest growing con-

tainer port in the United States, is an easy 45 minutes from Long

County.

Currently, 50% of the units are achieving market rent. New own-

ership will benefit from bringing all units up to market levels in-

creasing total returns. The low maintenance concrete block

building has benefited from major recent capital improvements

including a new 40-year metal roof installed in 2019. New PEX

plumbing, new tankless water heaters in all units, new vinyl sid-

ing, and new HVAC units in all units were installed in 2017. The

property is currently managed by a local third-party management

company who would stay in-place offering a truly “turnkey” in-

vestment opportunity with cash flow day one.

PROPERTY SUMMARY

Address: 415 W Cypress St

Ludowici, GA 31316

Long County

Year Built: 1960

Number of Units: 8

Current Occupancy (as of 12/16/2019): 88%

Property Type: Garden

Approximate Rentable Area: 4,000

Buildings: 1 Building

1 Story

Site Size (Acres): 0.26

Density (Units Per Acre): 30.77

Parcel ID Number: L02 085

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PROPERTY DESCRIPTION

Cypress Place

Property Summary Unit Features

Address: 415 W Cypress St • Eat in Kitchens

Ludowici, GA 31316 • New Faux Wood Vinyl Flooring

Long County • Stainless Steel Appliances (Select Units)

Year Built: 1960

Number of Units: 8

Current Occupancy (as of 12/16/2019): 88%

Property Type: Garden

Approximate Rentable Area: 4,000

Buildings: 1 Buildings

1 Story

Site Size (Acres): 0.26

Density (Units Per Acre): 30.77

Parcel ID Number: L02 085

Unit Mix Community Amenities

Unit Type # of Units Size Sq. Ft. Total Sq. Ft. Rent Rent/Sq. Ft. Monthly Rent • Ample Off Street/Parking

1 BD / 1 BA 8 500 4,000 $550 $1.10 $4,400 • Desirable Long County School System

Totals/Averages 8 500 4,000 $550 $1.10 $4,400 • 15 minutes to Ft. Stewart (Largest Employer)

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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MARKET PHOTOS

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SUBJECT

AERIAL MAPS

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AERIAL MAPS

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FINANCIAL ANALYSIS—PROFORMA

Market Rent $6,600 $52,800

Rental Assistance Income 0.00% 0

Gain/Loss to Lease -0.50% (264)

Concessions/Discounts 0.00% 0

Economic Potential Revenue 6,567 52,536

Vacancy Loss -5.00% (2,627)

Bad Debt-NET -0.50% (263)

Non Revenue Units 0.00% 0

Effective Gross Income $6,206 $49,647

Operating Expenses

Maintenance and Repair 250 2,000

Make Ready 250 2,000

Contract Services 135 1,840

Controllable Expenses 730 5,840

Utilities 555 4,440

Management Fee 496 3,972

Insurance 234 1,873

Property Tax 151 1,210

Total Expenses $2,167 $17,335

Expense Ratio (% of EGI) 35%

Net Operating Income $4,039 $32,312

Debt Service 29,583

Cash Flow 61,895

Per UnitInvestor

Underwriting

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LOCATION OVERVIEW

LOGISTICS / MANUFACTURING

Proximity to the Port of Savannah offers multiple avenues for growth in coming

years. Several major retailers, including Target and Home Depot, have distribution

hubs at the port and are expected to expand capacity in the coming years as the U.S.

economy continues to expand. Low business costs and easy access to intermodal

transport will allow the metro area to win its share of logistics operations connecting

the port to much of the eastern seaboard. The port’s industrial users will also benefit

from the current strength of the economy, and the increase in traffic will aid

businesses in industries such as construction and hospitality.

Cargo volumes at the port will also increase as a result of new opportunities in

foreign trade. Farming Powerhouses in South America will ship more fresh produce

in the coming years as nations exploit intensive techniques and multiple growing

seasons, and Hinesville is primed to benefit from the increase in traffic. Hinesville will

also benefit from business-jet maker Gulfstream Aerospace Corp’s decision to

manufacture two new models in neighboring Savannah.

SAVANNAH MSA DEMAND DRIVERS The Port of Savannah is one of the fastest growing container

ports in the United States. The Port of Savannah handled 8.6

percent of the U.S. containerized cargo volume and 10 per-

cent of all U.S. containerized exports in FY2018. A secured,

dedicated container terminal owned and operated by the

Georgia Ports Authority (GPA), Garden City Terminal is the

fourth largest container port in the U.S. and the largest single

-terminal operation in North America.

Anticipating the changing pace of trade not only in the South-

east and Midwest but in overseas markets, the Georgia

Ports Authority will invest $1.3 billion in expansion pro-

jects over the next decade to accommodate the projected

growth in global trade. To accommodate the larger traffic

necessary to keep up with demand, the Army Corps of Engi-

neers are working to increase the depth of the Savannah

Harbor as part of the Savannah Harbor Expansion Project

(SHEP). These expansion projects, together with numerous

others identified under the GPA’s long-term strategic devel-

opment plan, will increase throughput capacity from 4.5 mil-

lion containers to 6.5 million by 2024 as well as increase the

number of ship to shore cranes from 22 to 30.

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LOCATION OVERVIEW

HEALTHCARE

The Lewis Ashmore Medical Park promotes quality health care in the

community by showcasing Liberty Regional Medical center and Lib-

erty Regional Medical Office Building. The hospital and its FastTrack

emergency care see nearly 20,000 patients a year. The 70,000 sq. ft.,

2-story medical center has 25 in-patient rooms and eight out-patient

rooms. The in-patient rooms, labor/delivery/postpartum/recovery

rooms and pediatric rooms are on the second floor to give patients

more privacy. All the diagnostic areas, out-patient services, emergen-

cy, administrative offices, gift shop, dining room, and classrooms are

on the first floor. Liberty Regional Medical Center operates the Emer-

gency Medical Services in both Liberty and Long counties. A 66-bed,

long-term facility, Coastal Manor, provides 24-hour nursing care for

residents while offering some of the comforts of home. It recently

opened a 42-bed Alzheimer’s patients’ wing.

Liberty Regional Medical Center

MILITARY

The most significant development in the county is Fort Stewart,

which is the largest Army installation east of the Mississippi River.

The base covers more than 280,000 acres, and includes parts of Lib-

erty, Long, Bryan, Evans, and Tattnall counties. The reservation is

about 39 miles across from east to west, and 19 miles from north to

south. Fort Stewart’s main residents are members of the U.S. 3rd

Infantry Division. The base is close to two significant deep-water

ports: Savannah and Charleston, as well as featuring tank, field artil-

lery, helicopter gunnery and small arms ranges, which operate sim-

ultaneously throughout the year.

Fort Stewart and Hunter Army Airfield, as of 8/21/2019, has more

than 20,000 military members and employs over 4,000 civilians,

making it one of the largest employers in Coastal Georgia. The base

also has an estimated annual economic impact of $4.9 billion.

Ft Stewart is the largest Army base east of

the Mississippi River.

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RECENT ECONOMIC NEWS

• Georgia Named “Top State

for Business” by Area Devel-

opment for the sixth year in

a row. Governor Brain P.

Kemp responded “This an-

nouncement serves as a

powerful testament to what

we all know to be true:

Georgia is the best place to

live, work, and raise a fami-

ly. Our efforts to cut red

tape and ensure our busi-

ness environment leads the nation continue to lure world-

class companies to the Peach State from every corner of the

map.”

• Gulfstream Aerospace Corp., one of the area’s largest em-

ployers, announced in November that it will be expanding its

Savannah, GA facilities through a $500 million, seven-year

plan to ensure adequate capacity to meet expected future

demand. The expansion will result in 1,000 new jobs, a more

than 15 percent increase from current employees of approxi-

mately 5,500.

• In FY2019, the Savannah, GA port-related activities are credited for ap-

proximately $5 billion in investments and 12,00 jobs across the state of

Georgia.

• In 2020, the Georgia Ports Authority (GPA) will expanded the Garden City

Terminal by adding six new ship-to-shore cranes, bringing the total num-

ber of cranes to 36, more than any other terminal in North America. GPA

plans to further expand the crane fleet with 12 new cranes by 2027.

• GPA is continuing to expand its rail infrastructure and offerings to help

with growing demand. Already expanded offerings include Norfolk South-

ern and CSX carriers to the Midwest.

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CYPRESS PLACE

10752 DEERWOOD PARK BLVD S | SUITE 100 | JACKSONVILLE, FL 32256

PHONE: 904.394.2612 | MOBILE: 904.487.8171

WWW.MULTIFAMILY-PARTNERS.COM