boho omdraft 051618r

5/24/2018 Boho Omdraft 051618r

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THE FUTURE OF MULTIFAMILY IS AT BOHO4WNOW

A CBRE SOUTHEAST MULTIFAMILY OPPORTUNITY


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www.cbremarketplace.com/boho4w


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01 .QUICK LOOK 7

02 .INVESTMENT NUMBERS 11

03 .INVESTMENT STORY

Demographic of the Future 21

Location of the Future 29

Property of the Future 45

04 .PROPERTY 57

05 . MULTIFAMILY MARKET 77

CONTENTS


DRAFT / 05-16-14


4/864 / BOHO4W

COMMUNICATION

All communication, inquiries and requests should be

addressed to the CBRE Team, as representatives of the Seller.

Management at the property should not be contacted directly.

PROPERTY VISITS

Interested investors are required to schedule a time to meet

with the CBRE team to tour the asset and discuss the merits

of the offering. Please contact a member of the marketing

team with any questions.

DOCUMENT CENTER

Investors agreeing to the terms and conditions set forth in

the condentiality agreement can expect an invitation to a

password protected document center containing electronic

forms of the offering memorandum, operating statements,

rent roll, and other information that should be useful in your

evaluation of the property.

For questions regarding the document center please contact

Rhonda Masterson at 404.923.1430.


MALCOLM McCOMB

404.923.1421

[email protected]

PAUL BERRY404.923.1425

[email protected]

KEVIN GEIGER

404.923.1422

[email protected]

JOHN WHITLOW

404.923.1423

[email protected]

COLLEEN HENDRIX

404.923.1455

[email protected]

CBRE ATLANTA

3280 Peachtree Road NE

Suite 1400

Atlanta, Georgia 30305

404.504.7900main

404.923.1560fax

www.cbre.com/mhg

CBRE CONTACTS

A CBRE SOUTHEAST MULTIFAMILY OPP


5/86501. QUICK LOOK /

RTUNITY


6/866 / BOHO4W

01.QUICK LOOK



BOHO4W is a visionary new property adjacent

to Historic Fourth Ward Park (H4WP) on the

BeltLines Eastside Trail. It is also a forward-

thinking investment that is poised to outperform

the market. From its location in the fast evolving

Old Fourth Ward, to its cutting edge fiber to the

unit (FTTU) broadband infrastructure, BOHO4W

is positioned to seize the future.

I look to the future because thats where

Im going to spend the rest of my life.

~ George Burns


PROPERTY SUMMARY

Units 276

Rentable SF (gross) 246,464

Rentable SF (heated) 232,234

Average Unit Size (gross) 893

Average Unit Size (heated) 841

Year Completed 2014

Current Average Rent (5/4/14) $1,534

Current Average Rent/SF (heated) $1.82

% Leased (5/4/14) 56%

477 WILMER STREET NE ATLANTA, GA 30308


8/868 / BOHO4W

Demographic

of the Future

Location

of the Future

Product

of the Future

What if the countrys rental population

is about to change dramatically, is your

asset an exact match for the way the

new population wants to live?

To understand the power of BOHO4W, it

is important to understand how rapidly the

future of multifamily will be changing.

In a shor t 11 years, Generation Y, the

cohort between ages 10 and 32, will

account for 75% of the workforce.

BOHO4W understands what this game-

changing demographic group wants

and BOHO4W delivers.

What if the same property is also

in the sweet spot of an extensive

urban renewal project, one that will

supercharge growth for decades?

Core Neighborhood

The Old Fourth Ward (O4W) neighborhood,

once considered edgy, has reached core

status in recent years. Anchored by Virginia

Highlands and Inman Park, this pocket is

rock solid with demand.

Location Inection Point

Atlantas BeltLine is still in its infancy.

While the Eastside Trail and Historic Fourth

Ward Park have served as the catalyst for a

remarkable transformation, more is yet to

come. Its still early in terms of getting in

on the action. Demand is about to surge.

Superior Site

BOHO4W got in early and secured oneof the best locations along the BeltLine,

a spot surrounded by authentic amenities

and situated on the front row of Historic

Fourth Ward Park (H4WP).

Later developments will have to stake

claims on lesser locations, if they can

secure land at all.

What if you invest in a new propertythat has a technology advantage soahead-of-the-game, that it will deliver

a better resident profile, increase rents,and reduce turnover for years to come?

Gigabit Internet Speed:100x Faster than Cable

BOHO4Ws investment in FTTU broadband

infrastructure allows BOHO4W to deliver

content faster than any property in Atlanta.

It is a rare rst-mover advantage that hashelped BOHO4W attract the right target

residents from the start. Whats more,

the technology competitive advantage

supports higher rents and better retention.

Forward-Looking Design of Unit Interiors

Residents live large with well-designed,open oorplans with quality storage space

incorporated in each unit. They also

appreciate details like skyline and H4WP

views, granite and quartz countertops, 9and 10 ceiling heights, and other upscale

nishes.

Spectacular Amenities that BuildCommunity

BOHO4W is the only property on the

BeltLine with a pool overlooking Historic

Fourth Ward Park. A pool cabana room,

art studio and outdoor lounge area offer

plenty of social spaces.



BOHO4W

Single Family Homesand Townhomes

$450,000-$700,000RalphM

cGill

Blvd

Glen Iris Drive

NorthAv

enue

Highland DogTraining

Ponce CityMarket

GA PowerEquipment Yard

Downtown: 118,000 Jobs Midtown: 81,000 Jobs

Single Family Homes$250,000-$450,000

The MasqueradeConcert Venue

Whole FoodsMarket

FreedomP

arkway

Single Family Homes$500,000-$1.3M

Historic Old 4thWard Park

Future Entranceto Beltline

BOHO4W

Single Family Homesand Townhomes

$450,000-$700,000RalphM

cGill

Blvd

Glen Iris Drive

NorthAv

enue

Highland DogTraining

Ponce CityMarket


Downtown: 118,000 Jobs Midtown: 81,000 Jobs


The MasqueradeConcert Venue

Whole FoodsMarket

FreedomP

arkway

Single Family Homes$500,000-$1.3M


Future Entranceto Beltline

BOHO4W is located on the Historic Fourth Ward Park, overlooking the parks amphitheater,

lake and walking trails. The property is walkable to Ponce City Market, the Eastside Trail

of the Atlanta BeltLine, and many restaurants, barsand nightlife.

AERIAL IN PRODUCTION - FPO


10/8610 / BOHO4W

02.INVESTMENT NUMBERS


11/861102. INVESTMENT NUMBERS /

Investment SummaryPROPERTY SUMMARY

Units 276

Rentable SF (gross) 246,464

Rentable SF (heated) 232,234

Average Unit Size (gross) 893

Average Unit Size (heated) 841

Year Completed 2014

Current Average Rent (5/4/14) $1,534

Current Average Rent/SF (heated) $1.82

% Leased (5/4/14) 56%

UNIT MIX SUMMARY

Gross / Rentable SF Net / Heated SF

Floorplan Unit Type # Units % of Mix Current Rent Total Rent Unit Area Total Area Rent/SF Unit Area Total Area Rent/SF

A1 1BR - 1BA 70 25.4% $1,304 $91,290 687 48,090 $1.90 637 44,590 $2.05

A1b 1BR - 1BA 6 2.2% 1,438 8,625 904 5,424 1.59 854 5,124 1.68

A2 1BR - 1BA 94 34.1% 1,383 129,955 780 73,320 1.77 730 68,620 1.89

A2b 1BR - 1BA 8 2.9% 1,563 12,500 1,038 8,304 1.51 988 7,904 1.58

A3 1BR - 1BA 1 0.4% 1,540 1,540 885 885 1.74 823 823 1.87

A5 1BR - 1BA 20 7.2% 1,672 33,440 972 19,440 1.72 922 18,440 1.81

A6 1BR - 1BA 2 0.7% 2,143 4,285 1,012 2,024 2.12 972 1,944 2.20

B1 2BR - 2BA 16 5.8% 1,745 27,915 1,057 16,912 1.65 1,007 16,112 1.73

B2 2BR - 2BA 24 8.7% 1,905 45,710 1,215 29,160 1.57 1,153 27,672 1.65

B3 2BR - 2BA 10 3.6% 1,821 18,210 1,164 11,640 1.56 1,124 11,240 1.62

B4 2BR - 2BA 15 5.4% 1,891 28,370 1,193 17,895 1.59 1,143 17,145 1.65

B5 2BR - 2BA 10 3.6% 2,153 21,525 1,337 13,370 1.61 1,262 12,620 1.71

Total 276 100.0% $1,534 $423,365 893 246,464 $1.72 841 232,234 $1.82


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STABILIZED PRO FORMA MONTHLY REVENUE

FY1 FY2 FY3

Current Market Rents $423,365 $440,299 $457,911

Rent Increase (Market) 4.0% 4.0% 4.0%

Scheduled Market Rents $440,299 $457,911 $476,228

Loss to Lease 2.0% 2.0% 2.0%

Gross Potential Rent $431,493 $448,753 $466,703

Vacancy Loss 5.0% 5.0% 5.0%

Concessions 0.0% 0.0% 0.0%

Bad Debt Loss 0.3% 0.3% 0.3%

Non-Revenue Units 0.8% 0.8% 0.8%

Net Rental Income $405,421 $421,672 $438,575

Utility Reimbursements 19,279 3.0% 3.0%

Parking & Storage Income 6,250 3.0% 3.0%

Broadband Income 11,183 3.0% 3.0%

Other Income 9,795 3.0% 3.0%

Total Income $451,929 $469,575 $487,914

ANNUAL EXPENSES PER UNIT

FY1 FY2 FY3

Payroll $1,241 $1,272 $1,304

Gas & Electric 302 309 317 Water & Sewer 685 702 719

Trash Removal 204 209 214

Repairs & Maintenance 250 256 263

Turnover Related 175 179 184

Landscaping 115 118 121

Marketing & Advertising 250 256 263

General & Administrative 200 205 210

Broadband Service 660 677 693

Controllable Expenses $4,082 $4,184 $4,288

Management Fee 491 510 530

Taxes 2,736 2,804 2,874

Insurance 190 195 200

Total Operating Expenses $7,499 $7,693 $7,892

Replacement Reserves 150 175 200

Total Expenses $7,648 $7,868 $8,092

Financial Analysis


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1302. INVESTMENT NUMBERS /

STABILIZED PRO FORMA

FY1 FY1/Unit FY2 FY3 FY4 FY5 FY6 FY7 FY8

Current Market Rents $5,080,377 $18,407 $5,283,592 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787

Rent Increase (Market) 203,215 736 211,344 219,797 200,016 207,016 214,262 221,761 229,523

Scheduled Market Rents $5,283,592 $19,143 $5,494,935 $5,714,733 $5,914,748 $6,121,764 $6,336,026 $6,557,787 $6,787,310

Loss to Lease (105,672) (383) (109,899) (114,295) (103,508) (107,131) (110,880) (114,761) (118,778)

Gross Potential Rent 5,177,920 18,761 5,385,037 5,600,438 5,811,240 6,014,634 6,225,146 6,443,026 6,668,532

Vacancy Loss (258,896) (938) (269,252) (280,022) (290,562) (300,732) (311,257) (322,151) (333,427)

Concessions - - - - - - - - -

Bad Debt Loss (12,945) (47) (13,463) (14,001) (14,528) (15,037) (15,563) (16,108) (16,671)

Non-Revenue Units (41,023) (149) (42,253) (43,521) (44,827) (46,171) (47,557) (48,983) (50,453)

Net Rental Income $4,865,056 $17,627 $5,060,069 $5,262,894 $5,461,323 $5,652,694 $5,850,769 $6,055,784 $6,267,981

Utility Reimbursements 231,343 838 238,283 245,432 252,795 260,379 268,190 276,236 284,523

Parking & Storage Income 75,000 272 77,250 79,568 81,955 84,413 86,946 89,554 92,241

Broadband Income 134,201 486 138,227 142,374 146,645 151,044 155,576 160,243 165,050

Other Income 117,544 426 121,070 124,702 128,444 132,297 136,266 140,354 144,564

Total Income $5,423,144 $19,649 $5,634,900 $5,854,970 $6,071,161 $6,280,827 $6,497,746 $6,722,170 $6,954,359

Payroll $342,514 $1,241 $351,077 $359,854 $368,850 $378,071 $387,523 $397,211 $407,142

Gas & Electric 83,280 302 85,362 87,496 89,683 91,926 94,224 96,579 98,994

Water & Sewer 188,988 685 193,713 198,556 203,519 208,607 213,823 219,168 224,647

Trash Removal 56,304 204 57,712 59,154 60,633 62,149 63,703 65,295 66,928Repairs & Maintenance 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019

Turnover Related 48,300 175 49,508 50,745 52,014 53,314 54,647 56,013 57,414

Landscaping 31,800 115 32,595 33,410 34,245 35,101 35,979 36,878 37,800

Marketing & Advertising 69,000 250 70,725 72,493 74,305 76,163 78,067 80,019 82,019

General & Administrative 55,200 200 56,580 57,995 59,444 60,930 62,454 64,015 65,615

Broadband Service 182,160 660 186,714 191,382 196,166 201,071 206,097 211,250 216,531

Controllable Expenses $1,126,546 $4,082 $1,154,710 $1,183,577 $1,213,167 $1,243,496 $1,274,583 $1,306,448 $1,339,109

Management Fee 135,579 491 140,872 146,374 151,779 157,021 162,444 168,054 173,859

Taxes 754,999 2,736 773,874 793,221 813,051 833,378 854,212 875,567 897,457Insurance 52,440 190 53,751 55,095 56,472 57,884 59,331 60,814 62,335

Total Operating Expenses $2,069,564 $7,498 $2,123,207 $2,178,267 $2,234,469 $2,291,778 $2,350,570 $2,410,884 $2,472,759

Replacement Reserves 41,400 150 48,300 55,200 56,580 57,995 59,444 60,930 62,454

Total Expenses $2,110,964 $7,648 $2,171,507 $2,233,467 $2,291,049 $2,349,773 $2,410,015 $2,471,814 $2,535,213

Net Operating Income $3,312,180 $12,001 $3,463,393 $3,621,502 $3,780,112 $3,931,054 $4,087,731 $4,250,356 $4,419,146


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14 / BOHO4W

Financial AnalysisThe market appeal of BOHO4W is demonstrated by its incredibly strong lease-up.

Move-ins averaging nearly 29 units/month since February 2014

Rising Lease rates throughout lease-up period

Higher Loss-to-Lease on early move-ins as a result of increasing Market Rents.

OCCUPIED UNITS

Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL %Jan. '14 12 925 $1,496 $1,409 $1.52 ($88) -5.9%

Feb. '14 23 913 $1,576 $1,468 $1.61 ($108) -6.9%

Mar. '14 25 878 $1,523 $1,441 $1.64 ($82) -5.4%

April '14 31 873 $1,505 $1,457 $1.67 ($48) -3.2%

Through May 3, 2014 6 834 $1,514 $1,473 $1.77 ($41) -2.7%

FUTURE MOVE-INS

Move-In Date # Units Avg Size (SF) Avg Market Rent Avg Actual Rent Avg Actual Rent/SF Avg LTL LTL %

May '14 30 862 $1,476 $1,445 $1.68 ($31) -2.1%

June '14 14 858 $1,448 $1,418 $1.65 ($30) -2.1%

July '14 9 854 $1,428 $1,399 $1.64 ($29) -2.0%

Aug. '14 1 972 $1,459 $1,459 $1.50 $0 0.0%

LosstoLease

onEarlyMove-ins

DuetoRisingMarketREnts 5.9%

6.9%

5.4%

3.2%

2.2% 2.1% 2.0%

0.0%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Jan. '14 Feb. '14 Mar. '14 April '14 May '14 June '14 July '14 Aug. '14

LosstoLease(%

ofcurrentmarketrent)

Move-In Date


15/86



16/86

16 / BOHO4W

Non Revenue Units

Non-Revenue Units currently consist of two model units and four

employee discount units.

NON REVENUE UNITS

Unit Type Use CurrentMarket Rent Discount

Model Units

2113 B2 Model $1,850 100%

2116 A2 Model $1,325 100%

Employee Units

2105 A3 Courtesy Ofcer $1,540 $755

2216 A2 Employee $1,330 100%

2313 B2 Employee $1,840 100%2318 A2 Employee $1,335 100%

FY1 projections assume that employee units are discontinued.

Utility Reimbursement Income

Residents pay for valet trash collection and reimburse the property

for their water/sewer consumption.

FY1 Utility Reimbursement Income is projected using a 95% recapture

ratio of gross water/sewer expenses, plus $18/unit monthly valet trashcollection fee.

UTILITY REIMBURSEMENT INCOME

Collection%

Monthly/Unit Monthly Annual

Annual/Unit

Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600

Billing Fee $5.25 $1,449 $17,388 $63

Total ReimbursableWater/Sewer

$55.25 $15,249 $182,988 $663

Water/SewerReimbursements

95% $47.50 $13,110 $157,320 $570

Billing Fee 100% $5.25 $1,449 $17,388 $63

Valet Trash Collection 95% $18.00 $4,720 $56,635 $205

Total Utility Reimbursement Income $231,343 $838

Underwriting Notes

INCOME CATEGORIES

Current Market Rents

As of the May 5, 2014 rent roll, current market rents at BOHO4W were

$1,534 per unit ($1.82 per heated SF / $1.72 per gross SF). Monthly

Market Rent totals $423,365 as of the 5/5/2014 rent roll.

Rent Increase

Market Rent growth of 4.0% is projected in FY1 through FY3, and 3.5%

thereafter. Resulting FY1 market rent is $1,595/unit and $1.90 per

heated SF).

Loss To Lease

Loss to Lease represents the difference between Market Rent and actual

rent. As a result of projected Market Rent increases, FY1 Loss to Lease is

projected to equal 2% of projected Market Rent. This results in projected

Gross Potential Rent (GPR) of $1,563 per month ($1.86 per SF).

Vacancy Loss

Vacancy Loss equal to 5% of Gross Potential Rent is projected

throughout the analysis period.

Concessions

The property has offered limited up-front concessions on an as-needed

basis during construction. Upfront concessions were only offered to

residents whose unit was not ready by the move-in date. Only two

units have recurring concessions totaling $106 per month:

Unit 2208 Concession of $56/month was offered to offsetresidents storage fees.

Unit 2501 Concession of $50/month offered due to leasingbanner on building exterior covering window.

Bad Debt Loss

Bad Debt Loss of 0.25% of GPR is projected throughout the analysis

period.


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the propertys broadband service provider. The property receives a 5%

revenue share of upgrade charges.

This stabilized pro forma projects that the property begins charging

residents $40/month for the base 50Mbps internet service. The Flats

at Ponce City Market currently charges $40/month for 20Mbps internetservice. FY1 Broadband Income is projected as follows:

BROADBAND INCOME

ServiceMonthly

RatePene-

trationTotal

Monthly Annual RoyaltyAnnualIncome

PerUnit

Base Internet(50 Mbps), TV

$40.00 95% $10,488 $125,856 N/A $125,856 $456

Ultimate Internet(100 Mbps)

$29.99 35% 2,897 34,764 5% 1,738 6

Gigabit Internet(1Gbps) $99.99 30% 8,279 99,350 5% 4,968 18

HBO $18.99 10% 524 6,289 5% 314 1

Digital TV Package $39.99 20% 2,207 26,489 5% 1,324 5

Total $134,201 $486

Parking/Storage Income

The property does not currently charge residents for parking. There is

opportunity to implement a reserved parking program particularly in

the podium building front ing Old 4th Ward Park. The Flats at Ponce

City Market charges residents $75/month for parking. FY1 projections

assume 50 reserved spaces at a monthly rate of $50.

FY1 projections assume 50 storage units at an average monthly rent of

$75.

PARKING AND STORAGE INCOME

Monthly Rate # Spaces Monthly Annual Annual/Unit

Reserved Parking $50.00 50 $2,500 $30,000 $109

Storage Units $75.00 50 $3,750 $45,000 $163

Total $75,000 $272

Broadband Income

Thus far during lease-up, the property has offered basic internet

(50 Mbps) and a basic TV channel line-up included in monthly rent.

Residents have the option to upgrade internet service (to 100 Mbps

or 1Gbps), TV package and to add VoIP telephone through Hotwire,

Other Income

Other Income includes application fees, pet fees and rent, month-to-month fees, transfer fees, etc. FY1 Other Income is projected as shown in the table below:

OTHER INCOME

Fee/Rate Quantity Monthly Annual Annual/Unit Assumptions

MTM $150 12 $1,800 $21,600 $78 12 per month

Washer/Dryer 25 100 2,500 30,000 109 Property to provide W/D sets in 100 units

Admin Fees 125 138 1,438 17,250 63 50% turnover

Application Fees 50 159 661 7,935 29 50% turnover, 1.15 applicants per move-in

Pet Fee (NR) 350 35 1,006 12,075 44 25% of turned units have pets

Pet Rent 10 69 690 8,280 30 25% of units have pets

Termination fee (1 month rent) 1,534 6 767 9,204 33 6 terminations/year

Transfer fee 500 8 333 4,000 14 8 transfers/year

Late/NSF Fee 50 48 200 2,400 9 4 per month

Damage Fees 100 48 400 4,800 17 4 per month

Total $5,495 $117,544 $426


18/86

18 / BOHO4W

Water & Sewer

This line item represents gross water and sewer expenses before

resident reimbursements. Residents reimburse the property based upon

submeter readings of actual consumption. This line item also includes

third-party billing fees paid by the property, which are then passed

through to residents.

WATER/SEWER EXPENSE

Monthly/Unit Monthly Annual Annual/Unit

Water/Sewer Expense - Units $50.00 $13,800 $165,600 $600

Water/Sewer Expense - Common Areas $500 $6,000 $22

Billing Fee $5.25 $1,449 $17,388 $63

Total $15,749 $188,988 $685

Trash RemovalThis line item represents net trash collection expenses before resident

reimbursements. Residents are charged a monthly trash collection fee

of $18, which is billed as income.

FY1 Trash Collection expenses are based upon a monthly expense

of $17/unit.

Repairs And Maintenance

FY1 Repairs and Maintenance are projected at $250/unit, in line with

market levels for new Class AA midrise properties.

Turnover Related

Turnover expenses are projected at $175/unit, based upon a cost of $350

to turn each unit and a 50% turnover ratio.

Landscaping

This category includes landscaping contract and supplies FY1 Landscaping

and Contract Services expense is projected based on a monthly

landscaping contract of $1,900 and annual expenses of $5,000

for seasonal color and $4,000 for mulch.

Marketing And Advertising

Projected Marketing and Advertising expenses reect stabilized

operations, which are lower than during initial lease-up. FY1 Marketing

and Advertising expenses are projected at $69,000 ($250/unit).

Underwriting Notes

EXPENSE CATEGORIES

Payroll

FY1 Payroll expenses project a stabilized stafng level of 3 ofce and

3 maintenance personnel. FY1 Payroll expense is projected as shown in

the table below.

The rates shown below are based upon predominant wage rates in

metro Atlanta and do not represent the actual wage rates paid to

current staff at BOHO4W.

PAYROLL

Position Salary Bonus Burden@24% Total

Manager $55,000 $5,500 $14,521 $75,021

Leasing Consultant (2) $72,000 $14,400 $20,736 $107,136

Subtotal - Ofce $127,000 $19,900 $35,257 $182,157

Maintencance Supervisor $55,000 $14,400 $20,736 $72,292

Maintenance Technician $43,000 $3,300 $13,992 $56,519

Housekeeper $24,000 $2,580 $10,939 $31,546

Subtotal - Maintenance $122,000 $20,280 $45,667 $160,357

Total Payroll $249,000 $40,180 $80,924 $342,514

Electricity

Electricity expenses include vacant unit and common area utility

expenses.

FY1 Electricity expense is projected based on common area expense

of $6,250/month and a monthly vacant unit expense of $50/unit (and

5% vacancy rate).


19/86


Projected FY1 Real Estate Tax expense for BOHO4W is based upon a

projected Fair Market Value of $155,000 per unit ($184 per heated SF).

On a per-unit basis, the projected stabilized FMV for BOHO4W is above

the top end of the comparable range. On a per-SF basis, the projectedFMV is 24% above the top end of the range.

FY1 Real Estate Tax expense is projected as follows:

REAL ESTATE TAXES

Total Per Unit Per SF

Fair Market Value $42,780,000 $155,000 $184

Assessment Ratio 40%

Assessed Value $17,112,000 $62,000 $74Millage Rate 0.044121

Real Estate Tax $754,999 $2,736 $3

Insurance

FY1 Insurance expense is projected at $190/unit ($0.23 per heated SF),

in line with market levels for newly-built Class AA midrise Atlanta

properties.

Replacement Reserves

Replacement Reserves are projected at $150/unit in FY1, $175/unit

in FY2, $200/unit in FY3, and ination-adjusted thereafter.

General & Administrative

FY1 G&A expenses are projected in line with typical levels for stabilized

Class AA properties, at $55,200 ($200/unit).

Broadband Service

Hotwire is the property s broadband service provider. The property pays$55/unit per month for ber optic broadband services.

Management Fee

A Management Fee equal to 2.5% of Total Income is projected.

Real Estate Taxes

Real Estate Taxes are based upon the Fair Market Value of the property

as of January 1 of each year. The FMV is determined by the countys

board of assessors.

The Georgia Constitution stipulates that ad valorem real estate taxes

shall be uniform upon the same class of subjects within the territorial

limits of the authority levying the tax.

The table below illustrates the 2013 FMV values for stabilized Class A

and AA properties in the Old 4th Ward and Inman Park.

REAL ESTATE TAX COMPARABLES

Property # Units 2013 FMV FMV/Unit FMV/SF UnderAppeal

AMLI Old 4th Ward 337 $51,726,200 $153,490 $147 Y

AMLI Parkside 301 39,133,400 130,011 143 N

Block Lofts 244 32,194,000 131,943 134 N

Mariposa Lofts 253 36,467,500 144,140 148 N

Highland Walk 350 36,500,000 104,286 108 N

North Highland Steel 240 30,000,000 125,000 132 N

Total / Avg 1,725 $226,021,100 $131,027 $135


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20

Demographic of the Future

Location of the FutureProperty of the Future

03.INVESTMENT STORY


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2103. INVESTMENT STORY /


The Future

Starts with YGeneration Y, the generation also known as Millennials,

(now age 10 to 32) will be taking over the workforce

and taking hold of the future of multifamily.

Source:U.S. Census and F orbes, Why You Cant Ignore Millenials

Today, Gen Y Represents 34%of the Workforce

In 11 Years, Gen Y will be 75%of the Workforce

While I take inspiration from the past,like most Americans, I live for the future.

~ Ronald Reagan


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Gen Y Lives, Works and Plays

in Different Ways than Previous Generations

22/ BOHO4W

Gen Y values unique, authentic experiences.

They appreciate products and places that have evolved

organically; and they are put off by mass marketing.

The Old Fourth Ward (O4W) neighborhood and BOHO4Ws

one-of-a-kind characteristics appeal to this cohorts strong

desire for unique, authentic experiences.

American,

mass-marketed brands

imported brands

from around the world

unique,local craft beers

Grandparents Parents Gen Y

The growth of Generation Y and its impact on all sectors of

commercial real estate could be the singular most dominant

trend for many years. This group lives, works, and plays in

different ways than previous generations... (Generation Y)

will be very good for real estate.

~ Urban Land Institute Emerging Trends in Real Estate 2014


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three networks on new color TVs

and vinyl records

cable TV, VCRs, DVDs

and CD players

live, uninterrupted, FAST streamsof HULU, Netflix, HBO GO, Twitch,

Spotify and Pandora

Grandparents Parents Gen Y

Gen Ys choices for home entertainment are limitless

and they are addicted to speed.

BOHO4W is the only apartment community that can

meet their standards for Internet speed. With gigabit

speeds 100x faster than cable, BOHO4W can delivereverything on the Internet instantly.

1GB


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Gen Y Location

Wish ListBesides living in an exciting, young city like Atlanta, most new professionals

have a list of urban lifestyle experiences they want to embrace.

Wish List Item BOHO4W Delivers

Location in the center of the city P 1.4 miles from the heart of Midtown1.5 miles from Downtown

Near creative and high-tech workspaces PMidtown is now a creative meccafor innovative companies in high-techand creative professions

P Ponce City Market, a short walk,adding 484,000 SF of ofce spacewith cutting-edge tech rms likeMailChimp, Cardlytics, and Athena Health

Authentic, organic restaurants,

bars and nightlife at your doorstepP 28+ unique, local restaurants within 1 milePThe Masquerade, a live music venue,

adjacent to H4WPP 1.4 miles from the historic Fox Theatre

Parks and green spaces nearby P Backyard is Historic Fourth Ward ParkPAdjacent to the BeltLines Eastside Trail,

a 2.2-mile pathway for pedestrians andbikes

PPiedmont Park, the citys largest park,is 1.3 miles north

P Freedom Park, 1.3 miles east

Access to mass transit P1.5 miles from North Avenue MARTAstation

P Less than 1 mile from Atlanta Streetcar line

24/ BOHO4W


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26/ BOHO4W

(A Curbed Atlanta reader) points to a trend...

That the BeltLines allure will become so strong, so attractive to older buyers

looking for a hip alternative to their suburban or suddenly too-large ITP(Inside the Perimeter) homes, that single homebuyers and younger families

will be totally priced out.

~ Excerpt from Curbed Atlanta Editorial

Is The BeltLines Success Stiff-Arming Young Atlantans? - April 2014


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Gen Y Leads the Way

for Everyone ElseYoung adults are the early adopters of urban living, but other groups,

especially empty nesters, are following quickly behind. In the same

way that young people led the way with smartphones and tablets,

young adults are leading the way on new, walkable urban lifestyles.

STAGES IN ADOPTION OF URBAN LIFESTYLES

Young adults move to affordable intown neighborhoods,

helping to gentrify new areas of the city

The business community responds by creating more living

and amenity options in hot re-discovered areas.

Established groups like empty nesters begin to see the light.They follow young people into the now thriving area,

driving up demand and prices.

Demand for a location on the BeltLine may start with Y,

but it doesnt stop there!

As the Old Fourth Ward neighborhood quickly gentries, the area has

begun to see a migration of not only young adults, but also of their

baby boomer parents. Both groups want to be a part of the in-town

BeltLine action.


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28/ BOHO4W

Sunbelt GrowthEverything about BOHO4Ws location is changing

and trending up from the popularity of the Sunbelt

and growth of Atlanta rents to the emergence of the BeltLine

and development of creative new workplaces nearby.

Change is the law of life. And thosewho look only to the past or the presentare certain to miss the future.

~John F. Kennedy

A look at the numbers on domestic

migration undermines the claim that most

Americans prefer to live in and near the

dense Northeastern urban cores. People

simply continue to vote with their feet.Since 2000, more than 300,000 people

have moved to Atlanta, Dallas, Houston,

and Charlotte; in contrast a net over two

million left New York and 1.4 million have

deserted the LA area while over 600,000

net departed Chicago and almost as many

left the San Francisco Bay region.

~ U.S. News, March 2014, Forget What the Pundits Tell You:Coastal Cities are Old News - its the Sunbelt thats Booming


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Location of the Future


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30 / BOHO4W

CNBCnamed Atlanta #6

on its list of 10 Best

Cities for Todays College

Graduates April 30, 2014


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Atlanta MomentumIn Multifamily, Atlanta is Leading Rent Growth vs. Top U.S. Markets

Atlanta is a Top 10 Destination for 20-34 Year-Old Migration,

Ahead of other Sunbelt and Technology Hubs such as Houston,

Denver, Seattle, San Jose and San Francisco

Source:CBRE-EA

Source:ULI, Emerging Trends 2014

8.7% 8.7%

7.3%7.0%

6.5%

5.5%5.2%

4.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Atlanta Dallas Denver Houston D.C. SanFrancisco

Se attl e S an J ose

Fiv

eYearHistoricalMillennialGrowth

Forbes named Atlanta to its

list of The Best Cities For

New College Grads In 2013

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2014RentGrowthvs.PreviousYear


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32 / BOHO4W

North

Avenue

Ponce City MarketMailChimp, Cardlytics, Athena Health

Dub's Fish Camp, H&F Burger,Honeysuckle Gelato, Simply SeoulKitchen

The MasqueradeConcert VenueP

once

DeL

eonAv

enue

Emory University/CDC/VA Medical CenterEMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAF

WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)

CDC (6,000 JOBS)

4th and Swift

Dancing Goats Coffee

Gekko Sushi and Lounge

North

Avenue

Ponce City MarketMailChimp, Cardlytics, Athena Health

Dub's Fish Camp, H&F Burger,Honeysuckle Gelato, Simply SeoulKitchen

The MasqueradeConcert VenueP

once

DeL

eonAv

enue

Emory University/CDC/VA Medical CenterEMORY UNIVERSITY (13,400 STUDENTS + 12,500 FACILITY/STAF

WOODRUFF HEALTH SCIENCES CENTER (7,250 JOBS)CHILDRENS HEALTHCARE OF ATLANTA (2,500 JOBS)

CDC (6,000 JOBS)

4th and Swift

Dancing Goats Coffee

Gekko Sushi and Lounge

Micro LocationIn addition to BOHO4Ws sunbelt and Atlanta location, its thriving

micro-location is what makes the property so unique.

L ti f th F t


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Glen Iris Drive

Ralph McGill Boulevard

FreedomParkway Highland Dog

Training Center

Future Beltline Entrance


Carter Center Museumand Library

)

Inman QuarterMF Sushi, Bartaco,

Ford Fry's New Restaurant

Inman Park Single Family Homesand Townhomes

$450,000-$700,000

Inman Park Condos$250,000+

East Avenue Townhomes$450,000-$700,000


Bantam Pub

Freedom Park

Two Urban Licks

, , ,

Highland Bakery, Pure Taqueria

Parish

SerpasRathbun's


N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,

Highland Bakery, Pure Taqueria

Glen Iris Drive

Ralph McGill Boulevard

FreedomParkway Highland Dog

Training Center

Future Beltline Entrance


Carter Center Museumand Library

)

Inman QuarterMF Sushi, Bartaco,

Ford Fry's New Restaurant

Inman Park Single Family Homesand Townhomes

$450,000-$700,000

Inman Park Condos$250,000+

East Avenue Townhomes$450,000-$700,000


Bantam Pub

Freedom Park

Two Urban Licks

N Highland Avenue RestaurantsSotto Sotto, Fritti, Barcelona Wine Bar,

Highland Bakery, Pure TaqueriaParish

SerpasRathbun's


BOHO4WBOHO4W



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34 / BOHO4W

Micro LocationThe Atlanta BeltLine

BOHO4W is adjacent to one of the countrys boldest

urban projects, the Atlanta BeltLine. This $2.8 billion

sustainable redevelopment project will provide a

network of public parks, multi-use trails and transit tied

together by a 22-mile trail around the city.

The Eastside Trail, a 2.2 mile path from Piedmont Park

to Old Fourth Ward, was completed in October 2012,

and this year will attract a million visitors, the same

number who comes to the Georgia Aquarium.

For BOHO4W now, the BeltLine is a key amenity that

drives demand, increases exposure, and adds value.

In the future, the Beltline calls for light rail lines with

45 neighborhood stops and connections to the citys

MARTA rail system and the Atlanta Streetcar.

The best way to predict the future

is to create it.

~ Peter Drucker

Interesting Fact

The Atlanta BeltLine all started

with a masters thesis written in 1999

by then-Georgia Tech architectureand city planning student Ryan Gravel.



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The Atlanta BeltLine is the most comprehensive transportation

and economic development effort ever undertaken in the City

of Atlanta and among the largest, most wide-ranging urban

redevelopment programs currently underway in the UnitedStates. The Atlanta BeltLine is a sustainable redevelopment

project that will provide a network of public parks, multi-use

trails and transit along a historic 22-mile railroad corridor

circling downtown and connecting many neighborhoods

directly to each other.


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36 / BOHO4W



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Micro LocationHistoric Forth Ward Park

BOHO4W is on the front row of Historic Fourth Ward Park

(H4WP) and is the only apartment community with direct

access to the park from the pool, which overlooks the

lake and lawn. The 17-acre urban park, a $25 million

investment along Atlantas BeltLine, earned the Urban

Land Institutes Project of the Year award in 2013.

Park Amenities

Two playgrounds

Open lawn space

2-acre lake

Splash pad water feature

Open-air amphitheater

Wide walkways for walkers and runners

Skatepark


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38 / BOHO4W

Micro LocationPonce City Market

BOHO4W is a short walk across the park to the largest

adaptive reuse project in Atlantas history: Ponce City

Market. The 16-acre, nearly $300 million mixed-use

development restored the 1.1 million square foot

former Sears Roebuck distribution center. Nearing

completion, the project serves as an urban centerpiece

that combines 356,000 square feet of retail and

restaurants with 484,000 square feet of ofce space

and 259 residential ats.

Project Highlights

Central Food Hall with food stallsand sit-down restaurants

Rooftop deck offering miniature golf,

games, city views, food and drinkservices

Bridge connection from the BeltLine

offering bike valet with shower roomand tire repair

Beer garden along the BeltLine



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40 / BOHO4W



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Micro Location28+ Authentic, Local Restaurantsand Bars within One Mile

BOHO4W residents are within walking distance of a wide range

of authentic, local restaurants.

barcelona wine bar


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42 / BOHO4W

Micro LocationWith ve grocery stores within one mile, there is no difculty

for residents who prefer to grab one meal at a time.

Kroger

Whole Foods

Savi Provisions

Publix

Trader Joes

Entertainment and Cultural Amenities

The Masquerade (0.3 miles)

7 Stages Theatre (0.7 miles)

Landmark Midtown Art Cinema (0.8 miles)

Plaza Theater (0.8 miles)

Horizon Theater (0.8 miles)

Landmark Midtown Art Cinema (1.1 miles)

Fox Theatre (1.2 miles)

Dads Garage (1.7 miles)

Woodruff Arts Center (2.7 miles)

High Museum (2.7 miles)

The Carter Center (1.2 miles)



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BOHO4W offers residents Fision,

Fiber Optics by Hotwire

Basic Package

$60.00/mo. (currently included in rent)

for 50 Mbps Internet + 20 TV Channels

Internet Upgrades:

Ultimate: +$29.99/mo (100 Mbps) Gigabit:+$99.99/mo (1 Gbps)

44 / BOHO4W

Gigabit Internet Speed:100x Faster than CableBOHO4W is the only apartment community in Atlanta to offer

gigabit speed, and the only property on the BeltLine.

The developers of BOHO4W recognized how valuable

Internet speed is to Gen Y and the propertys renter pool,

and installed ber optic cable to all units (Fiber to the Unit,

or FTTU). By future-proong the propertys infrastructure,

BOHO4W is uniquely capable of handling tomorrows

demands.

Top 3 Most Important Apartment Amenities:

#1 In-unit washing machine

#2 Bathroom not shared

#3 Fast Internet

Benefits to the Resident Internet speeds over 100x faster than typical cable

Access to high-speed Internet anywhere on the property,

and at H4WP

Faster downloadson Hulu, Twitch, Spotify - everything

residents like

More efcient uploads of large les like photos and renderings

(ideal for working from home)

The clearest, sharpest pictureavailable

3-D images that jump off the screen

Instant Replayon anything residents have watched in the

last 7 hours without a replay box

Wired at move-in: theres no waiting for the cable guy ever

Source:Multifamily Executive, What Residents Want

Property of the Future


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3 secondsto download 100 songs

(vs. 2.75 minutes to download

100 songs w/20Mbs)

< 3 secondsto download a TV show

(vs. 2.5 minutes w/20Mbs)

7 secondsto download an HD movie

(vs. 5.5 minutes w/20Mbs)

Internet Speed Comparison8MB/secondaverage internet speed offered by cable companies

25MB/secondInternet speed offered in maximum premium packages

by cable companies

50MB/secondMinimum speed offered at BOHO4W

1,000 MB= 1 gigabit/secondfastest residential Internet speed and offered at BOHO4W

The Gigabit Difference

1GB


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46 / BOHO4W

As BOHO4W is the only property in Atlanta to offer gigabit

Internet speed, the first mover on fiber broadband will

capture a number of significant quantifiable benefits.

Attract a BetterResident Profilefrom the Start

Avoid CostlyRetrofitting

in the Future

Earn aSubmarket

CompetitiveAdvantage

Enjoy Higher

Renewal Rates28% less likelyto move

Generate

IncreasedIncome+15%

FirstMover

Advantage



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Importance of Above-Average Broadband Increases

with Rent up to $2,500


Gigabit Internet Speed:Benefits to the Investor

01. Better Resident Profile from the Start

Residents who pay more rent care more about faster speeds.

By being the rst mover, BOHO4W will capture a healthy share

of this most desirable prole.

BOHO4Ws initial 71 occupants earn on average over $78,000

per year. At a 30% rent-to-income ratio, the average resident

could afford $1,950/month, which is more than $400 higher

than BOHO4Ws current average rent.

02. Submarket Competitive Advantage

70% of property owners and managers said faster ber networks

increased word-of-mouth marketing. 59% said ber increased

closing and occupancy rates.

03. Increased Income

Renters will pay 15% more in rent for ber-connected homes.

04. Higher Renewal Rates

Residents in buildings with ber are less likely to move away

than are users of other broadband technologies. 13% with ber

said they were likely to move vs. 18% with other technology.

68% of property owners and managers said they had higher

satisfaction and fewer complaints with ber.

05. Avoid Costly Retrofitting

At BOHO4W, ber to the unit architecture is already in place,

negating the need for costly future retrotting.

Source:BroadbandCommunities

Source:BroadbandCommunities, What Fiber Broadband Can Do for Your Communityand MDU Residents Crave Fiber If They Know About It

47%

62%

63%

74%

100%

75%

44%

0% 20% 40% 60% 80% 100% 120%

$200 - $500

$501 -$1,000

$1,001 - $1,500

$1,501 - $2,000

$2,001 - $2,500

$2,501 - $3,000

Above $3,000

Residents Citing Importance of Bandwidth

Monthly

Rent


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48 / BOHO4W

The Demand forUltra-High-Speed Internet

will Grow Dramatically

Like the demand for smart phones and

other disruptive new technologies, the

demand for ultra-high-speed Internet

services will soon dominate. BOHO4Ws

immediate position as the only apartment

in Atlanta that is offering gigabit speed

will allow the property to scoop up

surging demand.

Adoption Curve

for New Technology Products

SECTION IN PRODUCTION

include resident case studies

RESIDENT PROFILE 1

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RESIDENT PROFILE 1


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SPREAD IN PRODUCTION - FPO



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50 / BOHO4W

With its forward-looking design of unit interiors, desirable amenities

that build community, and fiber to the unit (FTTU) broadband

infrastructure, BOHO4W is ideally positioned for the future.



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Forward-Looking

Design of Unit InteriorsLeveraging recent trends of smaler unit sizes, individual unitsat BOHO4W allow residents to live large with well-designed,

open oorplans. Residents value the amount of quality storage

space incorporated in each unit. The developer paid particular

attention to include:

Abundant 42 upper cabinets

Built-in desk area with upper cabinets and drawers

Island storage cabinets and built-in shelving

Counter-height seating at kitchen island

Food pantry

Built-in shelving in living area

Bathroom cabinets and linen closet

Oversized walk-in closets w/double doors

The units at BOHO4W also feature enduring desirable

characteristics such as:

H4WP and skyline views

Balconies that allow residents to step outside

and see the activity around them

Attractive kitchens with granite or quartz countertops

Faux wood ooring

Stainless steel or black appliances

(See page x for more details on unit interiors)

The future belongs to those whoprepare for it today.

~ Malcolm X


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Spectacular Amenities

that Build CommunityBOHO4W is the only property with a pool deck overlookingHistoric Fourth Ward Park. Residents appreciate the seamless

access from the pool, to the park and BeltLine.

Other thoughtful features include:

Outdoor grilling, dining and lounge area

Pool cabana room

Fitness center and spin/yoga room

with group exercise classes

Art studio to spur creativity

Wall of Social to keep residents connected

Cyber caf and conference room

(See page x for more details on amenities)

52 / BOHO4W



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54 / BOHO4W

The future is something that everyonereaches at the rate of 60 minutes anhour, whatever he does, whoever he is.

~ C.S. Lewis



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The future is coming fast, and investors who adapt ahead of the curve will reap the biggest

rewards. In its visionary development, BOHO4W leverages some of the most important

emerging trends in real estate today. The propertys alignment with real estates future will

help BOHO4W outperform the market year after year.


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56 / BOHO4W

04.PROPERTY INFORMATION


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5704. PROPERTY INFORMATION /

Property Description

ADDRESS

477 Wilmer Street NE

Atlanta, GA 30308

LOCATION

BOHO4W is located on the Historic Fourth Ward Park, overlooking

the parks amphitheater, lake and walking trails. The property is

walkable to Ponce City Market, the Eastside Trail of the Atlanta

BeltLine, and many restaurants, barsand nightlife.

SITE LAYOUT

BOHO4W is composed of four 5-story residential buildings.

A midrise podium-style building on the west side of Wilmer Street

fronts the Historic Fourth Ward Park. An above-grade parking

structure serves the midrise wrap-style buildings on the west

side of Wilmer.

LAND AREA

Approximately 3.7 acres according to Fulton County Tax Assessor

records, for a density of 75 units per acre.

ZONING

MRC-3-C Mixed Residential Commercial District

ACCESS/VISIBILITY/SIGNAGE

Property access, signage and visibility are excellent. BOHO4W

occupies a highly visible site from the Historic Fourth Ward Park.

The property fronts Glen Iris Drive, Rankin Street and Dallas Street.

Glen Iris provides quick access to North Avenue two blocks to the

north and to Inman Park to the south.

PARKING

Abundant parking is provided by the parking deck (307 spaces)and podium (78 spaces), providing a total of 385 spaces,

or 1.39 per unit and 1.10 per bedroom.


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58 / BOHO4W

Property Description

UTILITIES

Residents pay their electric bill directly to the utility provider and

reimburse the property for water/sewer consumption through a

submetering system. Residents also reimburse the property for

trash collection.

Utili ty/Service ProviderSeparatelyMetered

ResidentsPay Directly

ResidentsReimburseProperty

Electricity Georgia Power Yes Yes No

Water/Sewer City of Atlanta Yes No Yes

Natural Gas N/A N/A N/A N/ACable TV Hotwire N/A Yes No

Internet Hotwire N/A Yes No

Telephone Hotwire N/A Yes No

Trash Collection N/A No Yes

JURISDICTION & TAXES

Jurisdiction Fulton County / City of Atlanta

Tax ID Number14 -0018-0005-092-314 -0018-0005-035-2

Assessment Ratio 40% of Fair Market Value

Tax Year Calendar

Taxes Due By October 15

FLOOD ZONE

Panel Number 13121C0263G

Date Sept. 18, 2013

Flood Zone Flood Zone X

Flood Insurance Required No

BUILDING DESCRIPTION


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BUILDING DESCRIPTION

Year Completed 2014

Total Residential Units 276

Residential Rentable SF 246,464 (232,234 heated)

Average Unit Size (SF) 893 (841 heated)

Building Style Midrise wrap and podium

No. of Floors 5 story structures

Structural Framing Wood frame

First Floor Concrete slab

Exterior MaterialsBrick, stone, stucco, HardiePlank lap siding,

steel balcony railings

Windows Single-hung, tilt sash, vinyl frame windows

Roof StructurePitched roof with wood truss support system,

plywood decking

Roof Covering Asphalt shingles and TPO membrane

FoundationCast-in-place concrete perimeter footings

and slab on grade

MECHANICAL/ELECTRICAL/PLUMBING

Elevators 3 elevators (hydraulic)

HVAC

Each apartment is cooled and heated by a package systemelectric heat pump HVAC unit. Heat exchanger and air

handler units are located in interior closets, with exteriorpad mounted condenser units.

Water HeaterElectric-powered water heater units located

in mechanical closets within each unit

ElectricalSeparately metered circuit breaker panel in each unit,

copper wiring

Plumbing Supply CPVC

Plumbing Outlet PVC

Water Meter Each unit is individually metered

Fire ProtectionAll units are sprinklered and have hard-wired smoke

detectors with battery backup


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60 / BOHO4W


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Community Amenities

BOHO4W offers unsurpassed amenities, including:

50 Mbps internet package included with rent,

speeds up to 1Gbps available

High-speed WiFi access at all amenities and the park

Resort-style salt water swimming pool overlooking

Historic Fourth Ward Park (only community with pool

deck overlooking park)

Pool deck offers abundant seating areas, gas grilling

stations and staircase providing park access

State-of-the-art tness center with strength training

and cardio equipment

Separate fully-equipped spin room

Pool cabana with at screen TVs and full kitchen

Resident art studio

Cyber cafe with Mac workstations, conference room,

at screen TVs

Pet spa with washing stations


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62 / BOHO4W

Grandparents


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64 / BOHO4W

Resident art studio


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66 / BOHO4W

FLOORPLANS AVAILABLE IN THE DOCUMENT CENTER



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Unit Interiors

BOHO4W offers a wide variety of thoughtfully-

designed floorplans, maximizing usable living space

and offering generous storage. All include high-end

finishes with 9 and 10 ceiling heights.

KITCHENS

Choice of 3 nish packages with either quartz

or granite countertops

Large undermount single-bowl stainless steel sink

with goose neck faucet

Stainless steel or black ENERGY STAR appliances

with built-in microwave and radiant top stove

Designer cabinetry with 42 upper cabinets,

contemporary brushed nickel hardware

and choice of light or dark nish

Tile backsplash

Brushed nickel track lighting

Pendant lighting over island

Vinyl wood plank ooring

Abundant storage all oorplans have pantry closet

Large islands with seating and storage shelves

in many oorplans

Built-in desk with under-cabinet lighting

in select oorplans


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68 / BOHO4W

Resident art studio

Unit Interiors

BATHROOMS

Vinyl plank ooring

Linen closets

Floorplans feature garden tub or stand-up shower

Custom tiled shower and tub surround

Contemporary brushed nickel plumbingand lighting xtures

LIVING AREAS

10 ceiling heights for rst oor units,

9 on other oors

Vinyl plank ooring in kitchens, living roomsand entries

Washer/dryer connections in all units; stackable

washer/dryer units provided; full-size washer/dryerunits provided in about 50% of units

2 faux wood blinds

Large walk-in closets

Built in desks and bookselves (select units)

Private patios and decks ground oor units withbrownstone-style steps providing street access


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Resident art studio


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72 / BOHO4W

Site Plan

REQUEST NATIVE FILE OF THE ABOVE FILE PULLED FROM WEB. VECTOR PREFERRED (.AI, EPS, PDF).

PRECEDING AERIAL WILL BE HI-REZ AND LABELED.

REQUEST FOR NATIVE FILE



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05.MULTIFAMILY MARKET

Intown Atlanta


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7705. MULTIFAMILY MARKET /

Intown AtlantaOutperforming Overall MetroAtlanta #4 in Projected Rent Growth Over Next 5 Years

(Top 20 Markets by Inventory)

Downtown/Midtown to Outperform Metro Atlanta

in 5-Year Projected Rent Growth

Source:CBRE-EA 4Q-2013

3.6%

3.4%

3.3%

3.2%

3.1%

3.0%

2.8%

2.8%

2.6%

2.6%

2.6%

2.5%

2.5%

2.5%

2.4%

2.4%

2.4%

2.4%

2.3%

1.7%

1.6%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

Boston

Orange County

San Diego

Atlanta

Los Angeles

Detroit

Dallas

New York

Nation

Philadelphia

Denver

Tampa

Washington, DC

Miami

Minneapolis

Oakland

Chicago

Houston

Phoenix

Seattle

San Francisco

3.1%

3.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Atlanta Downtown/Midtown

5-YearAnnu

alizedEffectiveRent

Growth

Rent Comparables


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Rent ComparablesNew properties along the Beltline in Old 4th Ward and Inman Park have been met with overwhelming demand. BOHO4Ws

orientation towards 1BR floorplans and FTTU broadband access ideally positions the property to appeal to the affluent Millennial

renter-by-choice.

COMPETITIVE RENT SET

Property Year Built # Units Occupancy Average Unit Size Average Asking Rent Average Rent/SF

Ivy Hall 2011 110 98.0% 1,181 $1,800 $1.52

Flats at Ponce City Market 2014 259 Initial Lease-Up 921 $1,794 $1.95

SkyHouse South 2013 320 Initial Lease-Up 786 $1,762 $2.24

AMLI Ponce Park 2014 305 Pre-leasing 870 $1,574 $1.81

Post Parkside 2000 188 97.0% 885 $1,516 $1.71

AMLI Old 4th Ward 2008 337 99.0% 1,046 $1,457 $1.39

131 Ponce Midtown 2014 280 Pre-leasing 769 $1,453 $1.89

AMLI Parkside 2010 301 97.0% 896 $1,426 $1.59

Biltmore at Midtown 2002 276 97.0% 766 $1,343 $1.75

Total/Avg 2,376 97.6% 902 $1,553 $1.72

BOHO4W 2014 276 Initial Lease-Up 841 $1,534 $1.82

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5

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7

8

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RENT COMP MAP IN PRODUCTION - FPO


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Rent Comparables


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Rent Comparables

1 Bedroom Floorplans1 BR floorplans compose 73% of the units at BOHO4W. Average nominal monthly rent at BOHO4W is below the competitive set

average. BOHO4W is a comparative value, considering that 50 Mbps internet is included in BOHO4W rent, a faster speed than

is available at competitor properties.

BOHO4W RENTS VS. COMPETITIVE SET

Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF

SkyHouse South 158 709 $1,660 $2.34

Flats at Ponce City Market 138 833 $1,600 $1.92

Ivy Hall 48 961 $1,567 $1.63

AMLI Ponce Park 231 852 $1,543 $1.81

Post Parkside 98 834 $1,374 $1.65

Biltmore at Midtown 121 776 $1,343 $1.73131 Ponce Midtown 220 667 $1,320 $1.98

AMLI Parkside 114 745 $1,246 $1.67

AMLI Old 4th Ward 187 868 $1,228 $1.42

Total/Avg 1,315 790 $1,425 $1.80

BOHO4W 201 734 $1,401 $1.91

BOHO4W

SkyHouse SouthFlats at Ponce City Market

Ivy HallAMLI Ponce Park

131 Ponce Midtown

AMLI ParksideAMLI Old 4th Ward

Post ParksideBiltmore at Midtown

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

600 700 800 900 1,000 1,100

EffectiveRent

Unit Size (SF)

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Rent Comparables


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Rent Comparables

2 Bedroom FloorplansAt $1,890, average 2BR rents at BOHO4W are below the competitive set average, and trail 6 of the 9 properties in the competitive

set. Average 2BR rents at Ponce City Market are $575 higher than at BOHO4W, and do not include the $40 monthly internet fee

(for 20 Mbps) or $75/space parking fee charged at that property.

BOHO4W RENTS VS. COMPETITIVE SET

Property Units Avg. SF Avg. Eff. Rent Avg. Eff. $/SF

Flats at Ponce City Market 73 1,316 $2,465 $1.87

Post Parkside 32 1,315 $2,268 $1.73

SkyHouse South 68 1,002 $2,195 $2.19

Ivy Hall 57 1,386 $2,008 $1.45

131 Ponce Midtown 52 1,172 $1,997 $1.70

Biltmore at Midtown 48 1,199 $1,901 $1.59

AMLI Old 4th Ward 150 1,269 $1,742 $1.37

AMLI Ponce Park 74 924 $1,671 $1.81

AMLI Parkside 154 1,072 $1,629 $1.52

Total/Avg 708 1,169 $1,903 $1.63

BOHO4W 75 1,131 $1,890 $1.67

BOHO4W

Flats at Ponce City Market

SkyHouse South

AMLI Ponce Park

131 Ponce Midtown Ivy Hall

AMLI Parkside

AMLI Old 4th Ward

Biltmore at Midtown

Post Parkside

$1,500

$1,700

$1,900

$2,100

$2,300

$2,500

$2,700

800 900 1,000 1,100 1,200 1,300 1,400 1,500

EffectiveRent

Unit Size (SF)


Relevant Sales Transactions


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Relevant Sales TransactionsStrong apartment performance, healthy employment growth, and dynamic infill submarkets have pushed recent Class AA

Atlanta apartment pricing well above the $200,000/unit threshold.

192 West Paces92 West Paces Ferry RdAtlanta, GA 30305

2Elle of Buckhead235 Pharr RoadAtlanta, GA 30305

3Heights at Stillhouse3151 Stillhouse Creek DriveAtlanta, GA 30339

4

1160 Hammond1160 Hammond DriveAtlanta, GA 30328

MULTIFAMILY SALES COMPARABLES

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SALES COMP MAP IN PRODUCTION - FPO

Relevant Sales Transactions


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Relevant Sales TransactionsMULTIFAMILY SALES COMPARABLES

Property Sale Date Sale Price Price/Unit Price/SFYearBuilt

Units Seller Buyer

92 West Paces92 West Paces Ferry RdAtlanta, GA 30305

April 2014 $73,150,000 $348,333 $355 2014 210 Preserve Properties Prudential

Elle of Buckhead235 Pharr RdAtlanta, GA 30305

Jan. 2014 $106,600,000 $285,760 $309 2013 373 JLB Partners MetLife

Heights at Stillhouse3151 Stillhouse Creek DriveAtlanta, GA 30339

Feb. 2014 $71,500,000 $236,755 $219 2013 302 Worthing Southeast Bell Partners

1160 Hammond1160 Hammond DriveAtlanta, GA 30328

UnderContract

$80,300,000 $232,754 $246 2014 345 Northwood Ravin Associated Estates



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CONFIDENTIALITY, NOTICES & DISCLAIMER


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CONFIDENTIALITY, NOTICES & DISCLAIMER

CBRE Group, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate) engaging in a broad range ofcommercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund managementand development. At times different Af filiates may represent various clients with competing interests in t he same transaction. For example, this Memorandum maybe received by our Aff iliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the proper ty describedin this Memorandum (the Property) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledgethat possibility and agree that neither CBRE Group, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the

sale or purchase of the Prop erty. In all instances, however, CBRE Group, Inc. will act in the best interest of the client(s) it represents in the transac tion describedin this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeroror prospective offeror, but rather will conduct its b usiness in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in thetransaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in t he acquisitionof 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 Propertyor 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 apurchase of real property. All financial projections and information are provided for general reference purposes only and are based on assump tions relating to thegeneral economy, market conditions, competition and other factors beyond the control of the O wner and CBRE Group, Inc. Therefore, all projections, assumptionsand other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements areapproximations. 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. T hese summaries do not purport to be complete nornecessarily accurate descriptions of the full agreements referenced. Interested parties are expec ted to review all such summaries and other documents of whatevernature independently and not rely on the contents of t his Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed orimplied, 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 receiptof this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Proper ty in evaluating a possible purchase ofthe 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 terminatediscussions 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 commitmentor obligation to any entity reviewing this Memorandum or making an of fer to purchase the Proper ty unless and until written agreement(s) for the purchase of theProperty have been fully executed, delivered and approved by the Owner and any conditions to the Owners 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 strictestconfidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the O wner or CBREGroup, Inc. 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 CBRE Group, Inc.

Purchaser acknowledges that CBRE is acting on behalf of O wner as exclusive broker in connection with the sale, and also acknowledges that CBRE is not the agentof the Purchaser. Purchaser agrees to pay all brokerage commissions, finders fees, and other compensation to which any broker (except CBRE) finder or otherperson may be entitled in connec tion with the sale of the Prop erty if such claim or claims for commissions, fees or other comp ensation are based in whole or inpart on dealings with Purchaser or any of its representatives; and Purchaser agrees to indemnify and hold harmless CBRE and Owner, their respective affiliates,successors, and assigns, employees, officers, and directors against and from any loss, liability or expense, including reasonable attorneys fees arising out of anyclaim or claims by any broker, finder or similar agent for commissions, fees, or other compensation for bringing about any sale of the propert y to Purchaser if suchclaim or claims are based in whole or in part on dealings with Purchaser or any of its representatives.

DISCLAIMER 2014 CBRE Group, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE Group, Inc. does not doubt itsaccuracy, CBRE Group, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm itsaccuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance ofthe property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and youradvisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.


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