FOR MORE INFORMATION:Joseph ChaplikPresident/Principal Broker

(503) 546-9390jchaplik@josephbernard.net

OAK MANOR APARTMENTS2288-2376 Northgate Ave NE, Salem, OR 9730144 units

$4,800,000

PROPERTY ANALYSIS

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BUILDING

Price: $4,800,000Units: 44Price/Unit: $109,091Building Sq Ft: 32,856Price/Sq Ft: $146.09Cap Rate: 5.83%Pro Forma Cap Rate: 7.48%Year Built: 1970*Lot Size: 1.48 acresCounty: Marion

OAK MANOR APARTMENTS2288-2376 Northgate Ave NE, Salem, OR 97301

INVESTMENT SUMMARY

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DESCRIPTION

Oak Manor is a 44 unit apartment community located in North Salem, just off I-5. The building hasundergone numerous upgrades including new flooring and the kitchens feature newercountertops, cabinetry and appliances. The pool has been remodeled in addition to upgradedequipment. Tenants benefit from the convenient parking options, seasonal pool, on-site laundryfacilities and secure common grass area.

Oak Manor is located within the North Gateway Urban Renewal Area, where strategicinfrastructure investments have been made to improve economic vitality, livability and safety forresidents and employees in the area.

* Renovated in 2016

HIGHLIGHTS

• Well managed, turnkey opportunity• North Salem location• Upgraded interiors• New exterior paint• New windows• 2 onsite laundry rooms• Seasonal pool• Ample parking• Onsite management office• Common area lounge/game room• Nearby access to major freeways

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FINANCIAL ANALYSIS

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Scheduled Monthly Rents

Units Type Est. SFCurrent Average

RentMonthly Income Rent at Market Monthly Income

40 1 BD/1 BA 575 $755 $30,200 $925 $37,000

4 2 BD/1.5 BA 825 $936 $3,744 $1,050 $4,200

44 $33,944 $41,200

Scheduled Gross Income $407,328 $494,400

• Less: Vacancy (3%) -$12,220 -$14,832

Effective Gross Income $395,108 $479,568

• Plus: 2018 Laundry Income +$5,092 1 +$5,092

• Plus: 2018 Fee Income +$18,616 1 +$18,616

Effective Annual Income $418,816 $503,276

Estimated Expenses

Current Budget

%EGI Per/Unit Amount %EGI Per/Unit Amount1 Taxes 7.85% $705 $31,012 6.47% $705 $31,0121 Insurance 1.48% $133 $5,862 1.22% $133 $5,8621 Utilities 6.23% $559 $24,608 5.13% $559 $24,6081 Professional Management 3.00% $269 $11,853 3.00% $327 $14,3871 On-site Management 3.00% $269 $11,853 3.00% $327 $14,3871 Maintenance & Repairs 5.00% $449 $19,742 4.12% $449 $19,7422 Turnover Reserves 1.67% $150 $6,600 1.38% $150 $6,6001 Landscaping 1.59% $143 $6,270 1.31% $143 $6,2702 Administrative 1.67% $150 $6,600 1.38% $150 $6,6002 Pool 0.41% $37 $1,606 0.33% $37 $1,6062 Capital Reserves 3.34% $300 $13,200 2.75% $300 $13,200

Total Est. Annual Expenses 35.23% $3,164 $139,207 30.08% $3,279 $144,274of EGI Per Unit of EGI Per Unit

Investment Summary

Current Projected

Net Operating Income (NOI) $279,610 $359,002

Cap Rate 5.83% 7.48%

Debt Service $200,986 $200,986

Cash Flow $78,624 $158,016

Cash Return 4.68% 9.41%

Footnotes

1. Actual 2018 annualized2. Budget* Current loan is with Opus Bank at 3.9% for 10 years, due 2027.

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Proposed Financing

Down Payment $1,680,000Down Payment % 35%Debt Service $200,986Loan Amount $3,120,000Interest Rate 5.00%*Term 5 yr fixed/30 yr am

EXTERIOR PHOTOS

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INTERIOR PHOTOS

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PROPERTY PHOTOS

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SOLD COMPARABLES

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Oak Manor2288-2376 Northgate Ave NESalem, OR 97301

Subject Property

Year Built: 1970

Price: $4,800,000

Cap Rate:5.48%

Units: 44

Price/Unit: $109,091

Sq Ft: 32,856

Price/Sq Ft: $146.09

Newcastle Place Apartments4770 Conser Way NESalem, OR 97305

Sale Date: 1/4/19

Year Built:

Price: $9,308,250

Cap Rate:

Units: 54

Price/Unit: $172,375

Sq Ft: 66,999

Price/Sq Ft: $138.93

Brookside Terrace749-759 Church St NESalem, OR 97301

Sale Date: 12/19/18

Year Built: 1967

Price: $695,000

Cap Rate:5.75%

Units: 5

Price/Unit: $139,000

Sq Ft: 6,534

Price/Sq Ft: $106.37

Millbrook Terrace761-783 Church St NESalem, OR 97301

Sale Date: 2/25/19

Year Built:

Price: $1,325,000

Cap Rate:

Units: 11

Price/Unit: $120,455

Sq Ft: 25,728

Price/Sq Ft: $51.50

Amelia Apartments502-540 Locust St NESalem, OR 97301

Sale Date: 9/5/18

Year Built:

Price: $1,890,000

Cap Rate:

Units: 18

Price/Unit: $105,000

Sq Ft: 18,432

Price/Sq Ft: $102.54

DPP Apartments3654-3664 47th Ave NESalem, OR 97305

Sale Date: 5/7/18

Year Built: 1979

Price: $1,070,000

Cap Rate:5.80%

Units: 12

Price/Unit: $89,167

Sq Ft: 10,800

Price/Sq Ft: $99.07

7

RENT COMPARABLES

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Ridgecreek Manor2401-2475 Wayside Terrace

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $700 690 $1.01

2 BD $915 850 $1.08

Willamette Estates3900 Santiam Pass Way

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $972 695 $1.40

2 BD $1,284 1,041 $1.23

4225-4265 Hawthorne Ave NE

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $961 728 $1.32

2 BD $1,087 952 $1.14

Autumn Chase Apartments3211-3343 Autumn Chase Way

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $807 715 $1.13

2 BD $982 969 $1.01

SUBJECT PROPERTY – Oak Manor

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Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $755 575 $1.31

2 BD $936 825 $1.13

RENT COMPARABLES

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North Park Apartments4356 25th Ave NE

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $854 750 $1.14

2 BD $959 896 $1.07

Sandalwood Apartments3963 Etta Dr NE

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $827 648 $1.28

2 BD $957 910 $1.05

Cascade Pointe3760 32nd Pl NE

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $750 638 $1.18

2 BD $931 753 $1.24

Salem Parkway Apartments2540 Hyacinth St NE

Avg Rent: Avg Sq Ft: Rent/Sq Ft:

1 BD $750 535 $1.40

2 BD $902 735 $1.23

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AWARDS & RECOGNITIONS

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America's Fastest Growing Private Companies

Fastest Growing Private 100 Companies

Top 40 Business Leader Under 40

Investment Broker of the Year

Commercial Real Estate POWERLIST

Top Corporate Philanthropy

Top Commercial Real Estate Firm

All Star Award for Advertising and Marketing Excellence

Oregon Ethics in Business

CONTACT INFO

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FOR MORE INFORMATION:Joseph Chaplik

President/Principal Broker(503) 546-9390

jchaplik@josephbernard.net

Oregon Washington Arizona Southern Arizona

5200 SW Macadam Ave, Suite 300

Portland, OR 97239

4400 NE 7th Ave, Suite 275

Vancouver, WA 98662

9927 E Bell Rd,Suite 130

Scottsdale, AZ 85260

One South Church Ave,Suite 1200

Tucson, AZ 85701

(503) 546-9390 (360) 255-0255 (480) 305-5600 (520) 428-0850

The information contained in this package has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we make noguarantee, warranties or representation, expressed or implied, as to the accuracy. It is the buyers’ sole responsibility to independently confirm itsaccuracy and completeness and bears all risk for any discrepancies. Any projections, square footage, age, opinions, assumptions, or estimates used arefor example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax andother factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independentinvestigation of the property to determine your satisfaction and the suitability of the property for your needs. Parties that receive this information fromoutside of Joseph Bernard, LLC representatives will not be recognized. Owner is a licensed real estate Broker in the state of Oregon.