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  • KW COMMERCIAL

    3505 Columbia Parkway

    Cincinnati, OH 45226JENNIFER DONATHANSenior Investment Advisor0: [email protected] #2004004706

    Montgomery Road Apartments

    OFFERING MEMORANDUM

    PRESENTED BY:

    NORWOOD, OH

    OFFERING MEMORANDUM

  • Each Office Independently Owned and Operated kwcommercial.com 2

    KW COMMERCIAL

    3505 Columbia Parkway

    Cincinnati, OH 45226

    Confidentiality & Disclaimer

    JENNIFER DONATHANSenior Investment Advisor0: [email protected] #2004004706

    All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sourcesare provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of theproperty for any party’s intended use or any and all other matters.

    Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy orcompleteness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, thatmay be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters ofsignificance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.

    EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

    Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections andinvestigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by theparty including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercialmakes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercialdoes not serve as a financial advisor to any party regarding any proposed transaction.

    All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party withan attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by theparty with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmentalrequirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. Allproperties and services are marketed by Keller Williams Advisor's Realty in compliance with all applicable fair housing and equal opportunity laws.

    We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. Itis submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We includeprojections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisorsshould conduct your own investigation of the property and transaction.

    OFFERING MEMORANDUM

    PRESENTED BY:

    NORWOOD, OH

    http://www.kwcommercial.com

  • PROPERTY INFORMATION

    1 | PROPERTY INFORMATION

    EXECUTIVE SUMMARY

    PROPERTY DESCRIPTION

    PROPERTY DETAILS

    ADDITIONAL PHOTOS

    ADDITIONAL PHOTOS

    1PROPERTY INFORMATIONMONTGOMERY ROAD APARTMENTS

    OFFERING MEMORANDUM

  • Each Office Independently Owned and Operated kwcommercial.com 4

    OFFERING SUMMARY

    SALE PRICE: $825,000

    NUMBER OF UNITS: 13

    CAP RATE: 7.51%

    NOI: $61,977

    LOT SIZE: 0.13 Acres

    YEAR BUILT: 1936

    BUILDING SIZE: 8,757 SF

    MARKET: Southwest Ohio

    SUBMARKET: Norwood

    PRICE / SF: $94.21

    PROPERTY HIGHLIGHTS• Complete Renovation - Turnkey

    • Rents Below Market - Value Add Opportunity

    • Attractive & Desirable Rental Market

    • Some Tenants Are Xavier Students

    Executive Summary

    MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION

    http://www.kwcommercial.com

  • Each Office Independently Owned and Operated kwcommercial.com 5

    PROPERTY OVERVIEW

    Jennifer M. Donathan, Senior Investment Advisor for KWCommercial is pleased to present for sale 5144 Montgomery Roadin Norwood Ohio. The property is in the final stages of extensivehigh end renovations. The 8,757 sf building has been improvedwith new roof, gutters, fascia board, windows, kitchen cabinets,appliances, granite counter tops, refinished hardwood floors, newbathroom vanity, tub/shower combo with ceramic tile, new lightfixtures, new balconies, new gas boiler, new hot water tank, new a/c units etc. Most tenants are upper classmen/graduate studentsattending the nearby Xavier University. The property consists of 13large one bedroom, one bath units with onsite laundry and somebalconies. The owner pays for heat, water and trash and tenantspay for electric. Heat is provided by a new gas boiler.The property is turnkey and is ready for a new owner. There is stillsome value add opportunity by raising the rents to $800/month foradditional annual income of approximately $10,000+/-.

    LOCATION OVERVIEW

    The complex is located in Norwood Ohio. Norwood is one ofCincinnati’s up and coming hot spots with signs of the urbanrenaissance and revitalization happening on every corner.Norwood features homes and buildings of gorgeous architecturebuilt in the early 1900’s. Many investors have taken notice andbuildings that were once is disrepair are now being restored totheir original glory. Developers have taken notice of the desirablelocation and new luxury apartments and condos are beingdeveloped, sold and leased all over Norwood. Norwood is home toXavier University and Rookwood Commons & Pavilion along withmany notable eateries & retailers including J. Alexander, Bravo,Taste of Belgium, Buca di Beppo, PF Changs, Jos A. Banks,Whole Foods, Victoria’s Secret and dozens more. The complex isless than 1 mile from the Norwood Lateral which leads to I-71 orI-75 Cincinnati’s 2 major interstates.

    Property Description

    MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION

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  • Each Office Independently Owned and Operated kwcommercial.com 6

    SALE PRICE $825,000

    LOCATION INFORMATION

    Building Name Montgomery Road Apartments

    Street Address 5144 Montgomery Road

    City, State, Zip Norwood, OH 45212

    County/Township Hamilton

    Market Southwest Ohio

    Submarket Norwood

    Cross Streets Montgomery Road & Sherman

    BUILDING INFORMATION

    Building Size 8,757 SF

    NOI $61,977

    Cap Rate 7.51%

    Price / SF $94.21

    Year Built 1936

    Occupancy % 100%

    Tenancy Multiple

    Number Of Floors 3

    Average Floor Size 2,919 SF

    Load Factor Yes

    PROPERTY DETAILS

    Property Type Multifamily

    Property Subtype Low-Rise/Garden

    Lot Size 0.13 Acres

    APN# 651-0010-0001-00

    Submarket Norwood

    Property Details

    MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION

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  • Each Office Independently Owned and Operated kwcommercial.com 7

    Additional Photos

    MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION

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  • Each Office Independently Owned and Operated kwcommercial.com 8

    Additional Photos

    MONTGOMERY ROAD APARTMENTS 1 | PROPERTY INFORMATION

    http://www.kwcommercial.com

  • LOCATION INFORMATION

    2 | LOCATION INFORMATION

    REGIONAL MAP

    LOCATION MAPS

    AERIAL MAP

    2LOCATION INFORMATIONMONTGOMERY ROAD APARTMENTS

    OFFERING MEMORANDUM

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    Montgomery RoadApartments

    Regional Map

    MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION

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  • Each Office Independently Owned and Operated kwcommercial.com 11

    Location Maps

    MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION

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  • Each Office Independently Owned and Operated kwcommercial.com 12

    Montgomery RoadApartments

    Aerial Map

    MONTGOMERY ROAD APARTMENTS 2 | LOCATION INFORMATION

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  • FINANCIAL ANALYSIS

    3 | FINANCIAL ANALYSIS

    FINANCIAL SUMMARY

    INCOME & EXPENSES

    RENT ROLL

    UNIT MIX SUMMARY

    3FINANCIAL ANALYSISMONTGOMERY ROAD APARTMENTS

    OFFERING MEMORANDUM

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    INVESTMENT OVERVIEW 2019

    Price $825,000

    Price per Unit $63,461

    GRM 7.3

    CAP Rate 7.5%

    Cash-on-Cash Return (yr 1) 6.29 %

    Total Return (yr 1) $31,459

    Debt Coverage Ratio 1.26

    OPERATING DATA 2019

    Gross Scheduled Income $113,400

    Other Income -

    Total Scheduled Income $113,400

    Vacancy Cost $5,670

    Gross Income $107,730

    Operating Expenses $45,753

    Net Operating Income $61,977

    Pre-Tax Cash Flow $12,975

    FINANCING DATA 2019

    Down Payment $206,250

    Loan Amount $618,750

    Debt Service $49,002

    Debt Service Monthly $4,083

    Principal Reduction (yr 1) $18,484

    Financial Summary

    MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS

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    INCOME SUMMARY 2019

    Gross Scheduled Rents $113,400

    Gross Income $113,400

    EXPENSE SUMMARY 2019

    Real Estate Taxes $6,949Insurance $3,679Water/Sewer $6,240Mowing/Landscaping $1,800Advertising $420Electric/Gas $7,320Maintenance/Repairs $10,885Management Fees 7% $7,620Legal $840

    Gross Expenses $45,753

    Net Operating Income $61,977

    Income & Expenses

    MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS

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    UNIT

    NUMBER

    UNIT

    BED

    UNIT

    BATH

    UNIT

    SIZE (SF)

    CURRENT

    RENT

    CURRENT

    RENT (PER SF)

    MARKET

    RENT

    MARKET

    RENT/SF

    1 1 1 700 $750 $1.07 $800 $1.14

    2 1 1 700 $700 $1.00 $800 $1.14

    3 1 1 700 $750 $1.07 $800 $1.14

    4 1 1 700 $750 $1.07 $800 $1.14

    5 1 1 700 $650 $0.93 $800 $1.14

    6 1 1 700 $800 $1.14 $800 $1.14

    7 1 1 700 $700 $1.00 $800 $1.14

    8 1 1 700 $750 $1.07 $800 $1.14

    9 1 1 700 $700 $1.00 $800 $1.14

    10 1 1 700 $700 $1.00 $800 $1.14

    11 1 1 700 $750 $1.07 $800 $1.14

    12 1 1 700 $750 $1.07 $800 $1.14

    13 1 1 700 $700 $1.00 $700 $1.00

    Totals/Averages 9,100 $9,450 $1.04 $10,300 $1.13

    Rent Roll

    MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS

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    UNIT TYPE COUNT % TOTAL SIZE (SF) MARKET RENT MARKET RENT/SF

    one bed / one bath 13 100.0 700 $800 $1.14

    Totals/Averages 13 100% 9,100 $10,400 $1.14

    Unit Mix Summary

    MONTGOMERY ROAD APARTMENTS 3 | FINANCIAL ANALYSIS

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