1

OFFERING MEMORANDUMOFFERING MEMORANDUM

JUNIPER COURT TOWNHOMES 16-Unit Complex | $940,000 | 339 SW H Street, Madras, OR 97741

22

EXCLUSIVELY LISTED BYEXCLUSIVELY LISTED BY

RON ROSS, CCIMPrincipal BrokerDirect 541.322.1230Cell 541.480.8884rross@compasscommercial.com

TERRY O’NEIL, CCIMBrokerDirect 541.848.4060Cell 541.408.1202toneil@compasscommercial.com

3

EXECUTIVE SUMMARY

FINANCIALS

PROPERTY OVERVIEW

MARKET OVERVIEW

CONFIDENTIALITY & DISCLAIMER

3

TABLE OF CONTENTS

4

Price $940,000

Cap Rate 7.0%

Price Per Door $58,750

Address 339 SW H Street, Madras, Or 97741

Tax Map/Lot 111311DB/3901

Lot Size 0.83 AC

Zoning Madras Multi-Family Residential - R2

Building Area 16,256 SF

Year Built 1976

Number Of Units 16

Number Of Stories 2 (Townhome-Style Units)

Number of Buildings 3 (2 Eight-Plexes & 1 Office/Laundry)

PROP

ERTY

SUM

MARY

4

EXECUTIVE SUMMARYEXECUTIVE SUMMARYTHE OFFERINGJuniper Court Townhomes is a 16-unit complex in a great Madras location. The property is in good condition, well managed, and nearly always full.

Built in 1976, this complex features 16 townhome-style units. Each townhome is comprised of two bedrooms and one and a half bathrooms. All the units are identical and approximately 980 square feet each. There are two 8-plex buildings and a separate office/laundry room building. Each unit has a wall AC unit and is heated by a combination of electric wall and baseboard heaters.

The property sits on a spacious parcel consisting of 0.83 acres. There are approximately 21 parking spaces and two convenient ingress and egress points. About one block from this property is the highly regarded Madras Bike and Skatepark established in 2005.

This is a true 7% cap rate property with good management in place and 100% occupied.

SALE PRICE

$940,000STABILIZED CAP RATE

7.0%

5

v

INVESTMENT HIGHLIGHTS

5

CONSISTENT MONTHLY CASH FLOW

100% OCCUPIED

GOOD PROPERTY MANAGEMENT IN PLACE

ONE BLOCK FROM MADRAS BIKE & SKATE PARK

TURNKEY OPERATION FOR NEW OWNER

ALL-TIME LOW MARKET VACANCY

TRUE 7% CAP RATE

16 TOWNHOME-STYLE UNITS

6

ANNUAL PROPERTY OPERATING DATAINCOMEPotential Rental Income $133,680

Less: Vacancy $6,684 5%Effective Rental Income $126,996

Plus: Other Income $1,134Gross Operating Income $128,130

EXPENSESManagement $9,805 7.65% 2019 ActualsWater/Sewer $10,731 8.38% 2019 ActualsGarbage $6,783 5.29% 2019 ActualsProperty Tax $11,171 8.72% 2019 ActualsInsurance $3,000 2.34% EstimatedElectric $2,443 1.91% 2019 ActualsUtilities (other) $961 0.75% 2019 ActualsLandscaping/Snow $2,710 2.12% 2019 ActualsRepairs & Maintenance $10,250 8.00% Pro-formaReserves* $4,485 3.50% Pro-formaTotal Expenses $62,338 48.65%

NET OPERATING INCOMEAverage Expense Ratio

INVESTMENT SUMMARYCap Rate

Sales PricePrice/Unit

Gross Rent Multiple

48.65%

7.3

7.00%$940,000$58,750

Current Rents

Current Rents

$65,792*The following information contained in the attached spreadsheets is solely for estimation purposes only. Broker has presented information obtained through various sources and that have not been fully verified. Expenses quoted are averages and estimates. Buyers and Buyer’s agents to verify any leases, rents, and expenses during inspection period upon accepted offer.

FINANCIALSFINANCIALS

6

77

RENT ROLLUNIT TYPE

ACTUALRENT/MO

MARKETRENT/MO

SECURITYDEPOSIT

A 2BD/1.5BA $660 $725 $399

B 2BD/1.5BA $700 $725 $2,000

C 2BD/1.5BA $700 $725 $2,000

D 2BD/1.5BA $770 $725 $2,000

E 2BD/1.5BA $700 $725 $2,000

F 2BD/1.5BA $750 $725 $2,500

G 2BD/1.5BA $685 $725 $1,500

H 2BD/1.5BA $700 $725 $2,500

I 2BD/1.5BA $660 $725 $1,000

J 2BD/1.5BA $685 $725 $1,000

K 2BD/1.5BA $660 $725 $393

L 2BD/1.5BA $750 $725 $3,000

M 2BD/1.5BA $700 $725 $2,000

N 2BD/1.5BA $660 $725 $700

O 2BD/1.5BA $660 $725 $600

P 2BD/1.5BA $700 $725 $2,000

TOTAL RENTS/MONTH $11,140 $11,600 $25,592

AVERAGE MONTHLY RENT/UNIT $696 $725

ANNUAL RENTS $133,680

8

PROPERTY OVERVIEWPROPERTY OVERVIEW

88

99

GREAT MADRAS LOCATIONMadras, Oregon is situated 43 miles from the dynamic, growing, and renowned community of Bend. It is 26 miles from Redmond and the Regional Airport, and 120 miles from Portland. It lies at the foot of the Cascade Mountain range with spectacular views and recreational opportunities abounding. The Daimler Trucks testing facility is currently undergoing a major expansion on over 270 acres at the Madras Airport. Other major employers include Warm Springs Tribal Government, Bright Wood Corporation, Deer Ridge Correctional Facility, Keith Manufacturing, St. Charles Hospital, and Erickson Air.

The Juniper Court Townhomes are located five blocks from downtown Madras providing access to restaurants, grocery, athletic facilities and more. Only one block away is the Madras Bike and Skate Park which is very popular among residents.

102

MADRAS, OREGONWith a population of over 6,800, Madras is a small town in Central Oregon 45 miles north of Bend. The community has a blend of industry, agriculture and recreation. Residents enjoy a variety of employment opportunities, including manufacturing, aviation, agriculture, retail, education, tourism and health care. Major employers include Daimler Trucks testing facility, Warm Springs Tribal Government, Bright Wood Corporation, Deer Ridge Correc-tional Facility, Keith Manufacturing, St. Charles Hospital, and Erickson Air.

LIFESTYLE DESTINATIONLocated in Central Oregon, Madras offers high desert scenery and panoramic views of the magnificent Cascade Mountain Range with many outdoor recreation opportunities including cycling, fishing, golf, hiking, rockhounding, and water sports with winter sports just a short drive away.

The city has an exceptional aquatic center, Performing Arts Center, extensive green spaces, skate park, trail system and a kids’ fishing pond. Nearby attractions include Indian Head Casino, Erickson Aircraft Collection, the Palisades at Lake Billy Chinook, the Metolius Wild & Scenic River, Lake Simtustus, Mt. Jefferson Wilderness area, and so much more. Madras was one of the premier viewing locations for the August 21, 2017 Total Solar Eclipse where approximately 100,000 visitors converged for the experience of a lifetime!

SOURCE: City of Madras

Madras Aquatic Center

Lake Billy Chinook

Erickson Aircraft Collection

MARKET OVERVIEWMARKET OVERVIEW

10

11

DAIMLER TRUCKS EXPANSION

MADRAS

POPULATION

6,944DAIMLER TRUCKS TEST FACILITY IN MADRAS, OREGONIn 2014, Daimler Trucks North America (DTNA) started a world-wide search for a site to build a state-of-the-art $18.7 million test facility. EDCO worked closely with DTNA throughout the extensive process, navigating site selection, tax incentives and expanding the local Enterprise Zone boundary, among other things. Billed as the High Desert Proving Grounds, DTNA chose Madras, Oregon for the 87-acre site which includes a 3.5-mile Durability Test Track, allowing engineers to simulate a typical vehicle’s million-mile lifespan in just six months. The facility opened in May 2017 – a timeline that would not have been possible without help from EDCO. This project was also awarded the 2016 Business Development Success Story of The Year by the Oregon Economic Development Association (OEDA).

SOURCE: EDCO 2018 Central Oregon Profile

12

ECONOMYCentral Oregon has a reputation for welcoming new and relocating businesses without sacrificing workforce, talent, quality healthcare, transportation or infrastructure. A driving force behind the region’s economic

performance is a collaborative and inclusive entrepreneurial community, demonstrated by the high number of new business registrations, which outpaces far larger cities. Bend, Oregon registered one new business for every 28

residents in 2017 – nearly twice the state average.

Given its size, Central Oregon boasts a high number of community resources and assets available to new and growing businesses, including the largest angel conference in the West, the Bend Venture Conference. Additionally, Oregon’s

overall business costs rank significantly lower than its neighbors to the north and south. Average electricity rates, natural gas rates, state and local sales tax rates and business tax climates in particular are significantly lower than other states in the Pacific Northwest.

2

CENTRAL OREGONCentral Oregon has led Oregon’s population growth over the last two decades and continues to be one of the fastest growing areas of the country. For ten consecutive years Central Oregon has led the state in job growth, creating a region that is characterized by dynamic small businesses and entrepreneurial activity. The area boasts strong clusters in high technology (software, hardware and energy), advanced manufacturing, biosciences, renewable energy, brewing and distilling, value-added food products and recreation equipment.

For most residents Central Oregon is a lifestyle choice, offering a friendly environment, year-round recreation options and world-class amenities. The region is served by Roberts Field, a commercial airport offering service at Redmond Municipal Airport.

Redmond Municipal Airport

Redmond Municipal Airport provides commercial air service with daily non-stop flights to Denver, Los Angeles, Phoenix, Portland, San Francisco, Salt Lake City, Seattle and Chicago via carriers American, Alaska, Allegiant, Delta, Sun Country, United and United Express. The airport is undergoing a $5.2 million expansion to meet the rising demand for transit in and out of the region.

12

13

LIFESTYLECentral Oregon offers a rare mix of city amenities and restful isolation, including the slower speed of a small town with a medical community and infrastructure not normally seen in a region of its size. Additionally, Central Oregon residents maintain a work/life balance that is difficult to achieve elsewhere.

EDUCATIONCentral Oregon is well-recognized for its high level of education, with some of the best K-12 public schools in the nation. Additionally, the region’s higher education opportunities abound. From Oregon State University-Cascades’ recent expansion to Central Oregon Community College’s four campuses in the region, there are opportunities for all to obtain a quality education.

30 GOLF COURSES

MILES OF TRAILS

THRIVING ARTS & CULTURE

300 DAYS OF SUNSHINE

33 BREWERIES & COUNTING

14

1 Mile 3 Miles 5 Miles Madras, OR Jefferson County2019 Population 4,704 10,043 12,172 6,999 24,246

2019 Daytime Population 4,825 11,090 12,336 9,028 23,122

2024 Population 4,947 10,608 12,841 7,387 25,615

2010-2018 Growth Rate 0.99% 1.10% 1.15% 1.10% 1.20%

2018-2023 Growth Rate 1.01% 1.10% 1.08% 1.08% 1.10%

2019 Median Age 35.0 37.8 38.9 36.9 41.5

2019 Households 1,702 3,714 4,257 2,525 8,702

2024 Households 1,783 3,914 4,488 2,658 9,215

2010-2018 Growth Rate 0.90% 1.03% 1.04% 1.01% 1.20%

2018-2023 Growth Rate 0.93% 1.05% 1.06% 1.03% 1.15%

2019 Avg. Household Size 2.76 2.68 2.72 2.75 2.68

2019 Avg. Household Income $52,991 $61,932 $63,892 $59,554 $66,761

2019 Med. Household Income $40,500 $46,847 $48,688 $45,438 $52,034

2019 Per Capita Income $19,213 $23,019 $24,137 $22,169 $24,633

2019 Avg. Home Value $166,096 $178,619 $189,153 $173,162 $253,825

2019 Housing Units 1,959 4,198 4,792 2,914 10,831

2019 Vacant Housing Units 257 484 535 389 2,129

2019 Owner Occupied Units 891 2,038 2,373 1,332 5,686

2019 Renter Occupied Units 811 1,676 1,884 1,193 3,016

2019 Population Age 18+ 3,409 7,464 9,261 5,169 18,775

High School Diploma 677 1,615 2,026 1,147 4,034

Bachelor’s Degree 395 835 1,007 540 2,150

Graduate/Professional Degree 136 376 499 227 981

2019 Businesses 254 427 465 379 689

2019 Employees 1,951 3,992 4,459 4,298 7,317

2019 Unemployment Rate 7.3% 7.1% 6.5% 8.2% 4.1%

POPU

LATIO

NIN

COME

HOUS

EHOL

DSHO

USIN

GED

UCAT

ION

LABO

R

DEMOGRAPHICS

Madras Demographic Map

Source: ©2019 Esri

July 24, 2019

©2019 Esri Page 1 of 1

15

Madras Demographic Map

Source: ©2019 Esri

July 24, 2019

©2019 Esri Page 1 of 1

1616

DISCLAIMER: This marketing package has been prepared by Compass Commercial Real Estate Services (Compass Commercial) in full cooperation with the Seller of the Property solely for the purposes of providing preliminary information to prospective purchasers. It is not intended as the sole source of property and operational data and should not be relied on in place of appropriate due diligence activities. Neither Compass Commercial nor its agents can guarantee accuracy and no liability is assumed for financial, operational, physical, or other information provided herein including, but not limited to, errors and omissions, transmittal of inaccuracies, prior sale, price adjustments, or removal from marketplace without notice. Any indicated value of this investment is based upon assumptions, projections and estimates, which are variable by nature and subject to changing economic conditions. The value of this investment to you will also depend on tax and other factors, which should be evaluated by your tax and legal experts or advisors. It is your responsibility to independently confirm information received about the property to your satisfaction and you are urged to seek advice from your own attorney, CPA, design consultant, franchise representative, and/or other qualified professionals in your investigation of this opportunity.

CONFIDENTIALITY: The enclosed information is to be treated as non-public confidential business information and is to be held in strict confidence by all prospective purchasers and/or their legal agents. In no event will prospective purchasers and/or their legal agents use or reproduce for distribution any of the enclosed information for any purposes other than analysis and evaluation of the proposed sale.

EXCLUSIVE: The property represented herein is exclusively listed for sale by Compass Commercial Real Estate Services. All negotiations for the purchase shall be conducted through Compass Commercial Real Estate Services.

16

CONFIDENTIALITY & DISCLAIMERCONFIDENTIALITY & DISCLAIMER

17

CONDITION OF SALEThe Juniper Court Townhomes are is being offered for sale on an

“as-is, where-is” basis.

Detailed due diligence information can be requested from the listing team. However, the marketing package has link to several of

the important online documents.

All property tours must be scheduled in advance through the Compass Commercial listing team.

OFFERING TERMSPlease submit offers via email to the listing team.

Interested parties must submit a written Letter of Intent (“LOI”) or a Purchase & Sales Agreement (“PSA”) outlining the terms and

conditions under which they propose to purchase the Property. Such terms must include the following:

• Purchase price• Company background and financial capability

• Source of capital (Equity/Debt)• Amount and form of earnest money deposit(s)

• Required contingency periods (inspection, financing, etc.), including any extension(s)

• Closing timeline

18

EXCLUSIVELY LISTED BYEXCLUSIVELY LISTED BY

JUNIPER COURT TOWNHOMES 339 SW H Street, Madras, OR 97741

RON ROSS, CCIMPrincipal BrokerDirect 541.322.1230Cell 541.480.8884rross@compasscommercial.com

TERRY O’NEIL, CCIMBrokerDirect 541.848.4060Cell 541.408.1202toneil@compasscommercial.com