THE VILLAS APARTMENTS

THE VILLAS APARTMENTS OFFERING MEMORANDUM | 2905 3rd Ave SW Atlanta | GA 30315

Paul Khansari | Associate Broker

RE/MAX CENTER

[email protected]

404.429.3621

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

2905 3rd Ave SW Atlanta | GA 30315 (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 information which prospective investors may require to evaluate a purchase of

real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy,

market conditions, competition and other factors beyond the control of the Owner and REMAX Center. 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 REMAX Center, 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 contents, 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 investigations 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 expressions of interest or offers to purchase the Property, and/or to

terminate discussions 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.

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 REMAX Center. 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 REMAX Center.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to REMAX Center.

Paul Khansari | Associate Broker RE/MAX [email protected] 404.429.3621 02

OFFERING MEMORANDUM | 2905 3rd Ave SW Atlanta | GA 30315

CONFIDENTIALITY AGREEMENT

Property Summary

Photos

Location Maps

Location Overview

Site Plan

Floor Plans

Financials

Market Overview

Demographics

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TABLE OF CONTENTS



PROPERTY SUMMARY

Paul Khansari with REMAX Center has been retained as the exclusivemarketing advisor in the sale of The Villas Apartments, a 40-unit Value Add opportunity located at 2905 3rd Ave SW in Atlanta, Georgia 30315. Completed in 1969, the property is well-positioned off US Hwy-98 (20,000 ADTC) within minutes of bustling downtown Atlanta.

ADDRESS 2905 3rd Ave SWAtlanta, Georgia 30315

YEAR BUILT 1969

NUMBER OF UNITS 40

PROPERTY TYPE CLASS C

BUILDINGS 4 (1 vacant building requires rehab)

RENTABLE AREA 36,678 Sq. Ft.

PARCEL ID NUMBER 14-0093-0003-117-8

* Parcel Designated as Tax Benefit "Qualified Opportunity Zone”



PROPERTY PHOTOS



REGIONAL MAP OF PROPERTY

DOWNTOWNATLANTA

AirportAirport

PROPERTY

DISTANCE TO:

Downtown Atlanta..................... 7 MILESAtlanta Aiport.............................. 4.5 MILESEast Point Transit Station.......... 3 MILESI-85................................................. 1 MILE

PROPERTYPROPERTY



AERIAL MAP OF PROPERTY

East Point TransitStation Metro


PROPERTYPROPERTY

Paul Khansari | Associate RE/MAX CENTER - Johns Creek, GA [email protected] 404.429.3621 08

OFFERING MEMORANDUM | Ave Atlanta | GA 30315

AERIAL MAP OF PROPERTY





PARCEL MAP



HIGHLIGHTS / AMENITIES

COMMUNITY AMENITIES:

Leasing office

Potential laundry room area

Ceramic tile tub surrounds

Window blinds

Separate dining room area

All kitchens equipped with stove and fridge

Mature landscaping

Property is fenced

HIGHLIGHTS:

Property is located in Federal Opportunity Zone which offers attractive tax incentives.

A great Value-Add investment in a sub-market positioned for rapid development due to Atlanta BeltLine Strategic Implementation Plan.

Additional 12 apartments available by rehabilitation of a vacant building. Additional repositioning possible by modernizing 28 units.

Conveniently located just few minutes from I-85/75 interchange at Cleveland Avenue.

Within walking distance of Marta buses.

Within 5 Mile radius of Atlanta International Airport

Within 6 Mile radius of GA State University, GA Tech, Capital Building, Court House and Fulton County Government system



FLOOR PLANS

ROOM TYPE AREA

A011 6224

ROOM TYPE AREAA011 3482





FLOOR PLANS

ROOM TYPE AREA

A011 6224






FLOOR PLANS

ROOM TYPE AREA

A011 6224





FLOOR PLANS





FLOOR PLANS

ROOM TYPE AREA

A011 6224




Paul Khansari | Associate RE/MAX CENTER - Johns Creek, GA [email protected] 404.429.3621 12

OFFERING MEMORANDUM | 2905 SW 3rd Ave Atlanta | GA 30315

FEDERAL OPPRTUNITY ZONE MAP

2905 SW 3rd Ave



PROFORMA Annual

PROFORMADescription Amount 1BR 2BR Monthly Annual

Units

Income

Gross Market Income $403,200 Rent

Loss to Lease -$4,032 1.00%

Sub-Total $399,168

Vacancy -$19,958 5.00%

Bad Debt -$3,992 1.00%

Net Market Income $375,218

Water Income $21,600

Total Proforma lncome $396,818

Expenses (Based on T12)

A/C $5,050

Insurance $11,000

Landscape Maintenance $1,960

Management $11,905

Phone expense $1,436

Professional Service $3,725

Repairs and Maintenance $14,000

Salary * $20,889

Supplies $10,000

Trash Pick up $3,473

Utilities $50,900

Property Tax $6,681

Total Expenses $141,019

Net Income $255,799

Modernizing + Rehab

1 (12 Units) $240,000

Modernizing Building 2,3,4 (28 Units) $224,000

Total Rehab $464,000

Property Value

Cap US$ Value US$

5.50% $4,650,890 $464,000 $4,186,890

6.00% $4,263,316 $464,000 $3,799,316

6.50% $3,935,368 $464,000 $3,471,368

7.00% $3,654,271 $464,000 $3,190,271

* Part time Leasing Agent and Maintenance

PROFORMA

Rehab Building

Modernizing + Rehab

12

$700

$50 $60

00$20,0

$7,000 $8,750

0

28

$90 $33,600 $403,200

$2,266 $27,192



SOLD COMPARABLES

Address CityDistance (Miles)

Sale Status Sale Price Sale Date Size SF Price/SFAcres (AC)

Units Price/Unit Year Blt

1232 E Washington Ave East Point 2.3 Sold 7,500,000$ 06/01/2017 98,950 75.80$ 14.74 100 75,000$ 1972846 Willingham Dr Atlanta 1.8 Sold 1,296,000$ 12/20/2017 17,712 73.17$ 1.29 24 54,000$ 1959

1871 W Vesta Ave East Point 3.8 Sold 815,000$ 04/16/2018 12,600 64.68$ 0.63 15 54,333$ 19692959 Forrest Hills Dr SW Atlanta 0.9 Under Contract 1,700,040$ 31,000 54.84$ 1.33 34 50,001$ 19621701 Hawthorne Ave (Part of Mul -Property Sale) College Park 3.9 Sold 750,725$ 05/24/2018 14,582 51.48$ 0.87 14 53,623$ 19723494 Madison St (Part of Mul -Property Sale) College Park 3.5 Sold 1,126,087$ 05/24/2018 26,560 42.40$ 1.12 21 53,623$ 19611884-1910 Center Ave East Point 3.7 For Sale 11,832 -$ 0.80 17 -$ 1960

The Villas Apartments 2905 3rd Ave SW Atlanta, GA 30315

The Villas Apartments Atlanta 0.00 For Sale N/A For Sale 36,678 40 19692.61

Address CityDistance (Miles)

Sale Status Sale Price Sale Date Size (SF) Price/SF Lot (AC) Units Price/Unit Year Blt

Gardens at Washington Park I Atlanta 6.6 Sold $5,585,788.00 9/1/2018 73,306 $76.20 2.50 72 $77,580.39 1965

1232 E Washington Ave East Point 2.4 Sold $7,500,000.00 6/1/2017 98,950 $75.80 14.74 100 $75,000.00 1972

3300 College St Atlanta 4.4 Sold $1,400,000.00 10/4/2018 19,686 $71.12 0.20 20 $70,000.00 1960

Townhomes at Hapeville Atlanta 0.6 Sold $1,850,000.00 11/23/2018 31,000 $59.68 1.33 34 $54,411.76 1962

The Villas Apartments Atlanta 0.0 For Sale 36,678 2.61 40 1969

The Villas Apartments 2905 3rd Ave SW Atlanta, GA 30315Address City

Distance (Miles)

Sale Status Sale Price Sale Date Size (SF) Price/SF Lot (AC) Units Price/Unit Year Blt

Gardens at Washington Park I Atlanta 6.6 Sold $5,585,788 9/1/2018 73,306 $76.20 2.50 72 $77,580 1965

1232 E Washington Ave East Point 2.4 Sold $7,500,000 6/1/2017 98,950 $75.80 14.74 100 $75,000 1972

3300 College St Atlanta 4.4 Sold $1,400,000 10/4/2018 19,686 $71.12 0.20 20 $70,000 1960

Townhomes at Hapeville Atlanta 0.6 Sold $1,850,000 11/23/2018 31,000 $59.68 1.33 34 $54,412 1962

The Villas Apartments Atlanta 0.0 For Sale 36,678 2.61 40 1969

PROPERTY NAME RATING DISTANCE YR BUILT UNITS AVG UNIT SIZE/SF 1 BD 2BD RENT/SF

Lakewood Forest Apartments 2 1.4 1969 80 835 $755 $832 $0.95

Park South Apartments 2 3.2 1966 36 990 $910 $0.91

Chez Moi 1 0.8 1967 28 831 $700 $800 $0.90

Clifton Royale 2 3.9 1964 33 740 $800 $900 $1.15

Southwood Vista 2 8.2 1947 80 1003 $1,039 $1,201 $1.12

Harrington Park 2 6.5 1968 220 970 $795 $889 $0.86

Average 1964 80 895 $682 $922 $0.98

The Villas Apartment 2 0 1969 40 900 $540 $656 $0.70



RENT COMPARABLES

Market Rent Per Unit & Rent Growth Market Rent Per Unit By Bedroom

-28.6% LOWERTHAN AVERAGE

FORECASTFORECAST



MARKET OVERVIEW

Downtown Atlanta Just 7 Miles Away

Fulton County is in the process of two major developments: Aerotropolis and the redevelopment of Fort McPherson. Both developments will enhance South Fulton’s economic landscape by generating white- and blue-collar jobs, and as a byproduct expanding development opportunities, retail and restaurant sites, and small business ventures in the area for years to come.

Fulton County is home to Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport and a major passenger and shipping hub, Porsche Cars of North America, Delta Airlines, Chick fil-A, Inc., Atlanta Metro Studios, Tyler Perry Studios, EUE/Screen Gems Movie Studios, Christian City, Georgia Science and Technology Park at Fort McPherson that includes a 488 acre redevelopment that will house an international center of innovation and knowledge in bio-science research.

The Georgia International Convention Center, Georgia’s second largest convention center, is located just miles from the airport and is proven to be a high-demand destination for large meetings and conferences.

Woodward Academy, the nation’s largest independent school and a renowned educational facility, has been serving students since 1900 and is located on a 75-acre campus in Fulton. We are also home to Arlington Christian Academy and Landmark Christian Academy. South Fulton proudly boasts of being home to the Fairburn campuses of both Georgia Military College and Brenau College.

Fulton is one of the safest major communities in the Atlanta area boasting a phenomenal list of assets that include serene sights and destinations as well as celebrated restaurants and lively city centers.

MARKET OVERVIEW FULTON


OOFFERING MEMORANDUM | 2905 3rd Ave SW Atlanta | GA 30315

MARKET OVERVIEW FULTON

Covering more than 300 square miles, Fulton contains a unique mix of urban and suburban. It is the second-largest of Atlanta’s apartment submarkets in terms of inventory, but due to the lower median household income, about 54% of the projects here are 1 & 2 Star assets, compared with a 20% share for Atlanta as a whole. As renter interest has returned to the urban core, this submarket has seen a flurry of renovation projects, which has pushed vacancy higher as construction moves in. More than 3,000 units are currently under renovation, more than making up for limited ground-up construction.

Porsche Cars North America (PCNA), the first business to commit to Aerotropolis, is locating its U.S. headquarters on approximately 26 acres of the site, encompassing approximately 120,000-square-feet and housing up to 450 employees.

In addition: 488-acre Fort McPherson will be turned into Science Park, Employment Center and Live, Work, Learn and Play community containing 3.5 million-square-feet of labs and office space, 1,747 units of residential development, and a campus-style collaborative environment.

Bars show deviation from

Fulton CountyPaul Khansari | Associate Broker RE/MAX [email protected] 404.429.3621 18


FULTON 5 MI DEMOGRAPHICS

Average Household Income

$27,035$45,419


FULTON 5MI DEMOGRAPHICS


$27,035$45,419

Bars show deviation from

Fulton CountyPaul Khansari | Associate Broker RE/MAX CENTER18


FULTON 5MI DEMOGRAPHICS


$27,035$45,419


3 MILES

5 MILES

2018 Summary 3 Miles 5 MilesPopulation 55,082 174,601

Households 21,601 65,931

Families 12,050 37,183

Average Household Size 2.52 2.55

Owner Occupied Housing Units 7,711 23,504

Renter Occupied Housing Units 13,890 42,428

Median Age 35.6 34.2

Average Household Income $45,419 $49,420

2023 Summary 3 Miles 5 MilesPopulation 57,284 181,624

Households 22,396 68,495

Families 12,550 38,695

Average Household Size 2.53 2.56

Owner Occupied Housing Units 8,559 25,802

Renter Occupied Housing Units 13,837 42,694

Median Age 36.5 35.0

DEMOGRAPHICSOFFERING MEMORANDUM | 2905 3rd Ave SW Atlanta | GA 30315

For more information contact:Paul Khansari | Associate Broker

RE/MAX CENTER

[email protected] 404.429.3621

THE VILLAS APARTMENTS

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