Turtle Rock Apartments | 1932-1936 2nd St NE, Center Point, AL 35215

OFFERING MEMORANDUM

WHO WE ARE

Red Rock Realty Group is a full-service commercial and residential sales, leasing, development, and investment company based in Birmingham, Alabama. Our real estate professionals are experts in nearly every type of property, with a focus on multi-family management, development, and brokerage. Our professionals work throughout the state of Alabama, and, in some cases, out of state.

BROKERAGE TEAM

Bo GreshamRed Rock Realty GroupManaging Brokerbgresham@redrockrg.com

cell: 205.266.4716office: 205.930.1798

Jimmy PritchettRed Rock Realty GroupAssociate Brokerjpritchett@redrockrg.com

cell: 256.466.6716office: 205.930.1782*Property tours by appointment only.

04Executive Summary

05PropertyDetails

06PropertyPhotos

08 LocationOverview

09MarketSummary

10CompletedWork

11Financials& Pro Forma

12Rent Comps

14Sales Comps

The information contained in the following Investment Offering is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Red Rock Realty Group and should not be made available to any other person or entity without the written consent of Red Rock Realty Group. This Investment Offering has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Red Rock Realty Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal Regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained win this Investment Offering has been obtained from sources we believe to be reliable; however, Red Rock Realty Group has not verified, and will not verify, any of the information contained herein, nor has Red Rock Realty Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CONFIDENTIALITY AND DISCLAIMER

TABLE OF CONTENTS

EXECUTIVE SUMMARY

Red Rock Realty Group is pleased to present the exclusive listing of the 19 unit , 31 bed Turtle Rock Apartments in Center Point, Alabama. This property has been renovated and stabilized with market rents, making this a great investment for immediate cash flow.

4| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | EXECUTIVE SUMMARY

LOCATIONThe Turtle Rock Apartments have a location that is central to Center Point and near many restaurants and retailers. Center Point is just north of I-59 and I-459, making it easy for residents to access the entire Birmingham metro area.

RENOVATIONS16 of the 19 units at Turtle Rock have been completely renovated. Finishes include new appliances, lighting, cabinetry, and flooring. Exterior improvements like the installation of new condensing units and a privacy wall were also completed.

STABILIZED INVESTMENT OPPORTUNITY

This property has been stabilized, following the renovation of units. The apartments are currently 95% occupied. Low costs for repairs and maintenance are expected thanks to the replacement of HVAC systems, faucets, toilets, etc.

PRICING: $775,000

PRICE PER UNIT: $40,789

STABILIZED CAP RATE: 8.6%

UNITS: 19 units, 12 2BR/1BA and 7 1BR/1BAYEAR BUILT: 1978TOTAL SF: 14,372SITE ACREAGE: 1.24PARCEL #: 12 00 18 4 004 017.000

EXTERIOR: Vinyl walls with wood decking and stairsFENCING: 400’ steel privacy/security wall

FRAMING: Wood FrameFOUNDATION: SlabROOFS: Shingled GableRENTS: $575-$650

HVAC: Electric heat pumpWATER: ElectricLAUNDRY: Washer and dryer connections in each unit

PROPERTY DETAILS

5| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | PROPERTY DETAILS

PROPERTY PHOTOS

6| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | PROPERTY PHOTOS

PROPERTY PHOTOS

7| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | PROPERTY PHOTOS

LOCATION OVERVIEW

The Turtle Rock Apartments have a location that is central to Center Point, just off of Center Point Parkway/SR 75. There are many restaurants and retailers located along the parkway, including a Walmart Neighborhood Market that is less than half a mile from the apartments. Ruffner Mountain Nature Reserve is a nearby attraction that provides a place for tenants to enjoy outdoor activities. Turtle Rock is just 10 miles from Birmingham-Shuttlesworth International Airport and approximately 13.4 miles from downtown, making all that downtown Birmingham has to offer just a twenty minute drive away.

8| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | LOCATION OVERVIEW

Cen

ter P

oint

Par

kway

/ SR

75

BIRMINGHAM MARKETAs one of the major economic centers of Alabama and one of the signature cities

of the southeast, Birmingham has done an impressive job of adapting to the new

demands of the 21st century. The city that once built a reputation as the

“Pittsburgh of the South” thanks to a robust steel manufacturing industry is now a

hip community attracting entrepreneurs, artists, and innovative personalities.

Birmingham remains one of the most active business hubs in the region, with

headquarters for everything from banks to biotech firms operating in the city. The

dining, nightlife, and entertainment scenes have all grown rapidly in recent years,

and just about everyone in town has an opinion about where to find the best

brewery. Gorgeously preserved historic buildings and a pervasive attitude of

down-home hospitality have kept Birmingham’s famous southern charm intact as

well, creating a unique environment where the best elements of the traditional and

the modern complement each other. The surrounding hills and forests provide

beautiful scenery as well as unlimited opportunities for outdoor exploration on the

weekends.

9| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | MARKET SUMMARY

COMPLETED WORKAT TURTLE ROCK SINCE 2017

10| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | COMPLETED WORK

PLUMBING

— New sink and faucet in kitchens and bathrooms

— New hot water heaters

— New toilets

HEALTH AND SAFETY

— Hardwired smoke detectors in hallways of each unit in both buildings and added to each bedroom in building 1932

GROUNDS

— 400’ steel privacy/security wall supported by concrete secured posts

— Cluster mailbox unit conveniently located by the driveway

UNIT INTERIORS (16 of 19 units)

— All walls repaired and painted

— New countertops

— Replaced doors where necessary

— New door and cabinet hardware

— New kitchen cabinets where necessary

ELECTRICAL

— All new light fixtures

— New switch and outlet covers

— Rewiring completed where needed

HVAC

— New HVAC units (16 of 19) installed and caged

T-4 FINANCIALS(JANUARY 2020 - APRIL 2020)

PRO FORMA(ANNUALIZED)

INCOME TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH

Rental Income $36,680.82 $1,930.57 $9,170.21 $120,690 $6,352.11 $10,057.50

Concessions ($2,569.32) ($135.23) ($642.33) $0 $0 $0

TOTAL INCOME $34,111.50 $1,795.34 $8,527.88 $120,690 $6,352.11 $10,057.50

PROPERTY EXPENSES

Landscaping $740 $38.95 $185 $2,400 $126.32 $200

Vacancy Prep $299.95 $15.79 $74.99 $1,800 $94.74 $150

Misc. R&M $6,139.87 $323.15 $1,534.97 $8,640 $454.74 $720

Fire Dues $2,484.50 $130.76 $621.13 $4,800 $252.63 $400

Pest Control $216 $11.37 $54 $720 $37.89 $60

Water/Sewer $3,788.87 $199.41 $947.22 $10,200 $536.84 $850

Electric $1,154.32 $60.75 $288.58 $2,400 $126.32 $200

Trash Removal $528 $27.79 $132 $1,584 $83.37 $132

TOTAL PROPERTY EXPENSES $15,351.51 $807.97 $3,837.89 $32,544 $1,712.84 $2,712

ADMINISTRATIVE EXPENSES

Property Taxes $6,348.13 $334.11 $1,587.03 $6,473 $340.68 $539.42

Property Insurance $1,854 $97.58 $463.50 $5,385 $283.42 $448.75

Management Fees $3,155.98 $166.10 $789 $8,448.30 $444.65 $704.03

Misc. Expenses $353 $18.58 $88.25 $1,200 $63.16 $100

TOTAL ADMINISTRATIVE EXPENSES $11,711.11 $616.37 $2,927.78 $21,506.30 $1,131.91 $1,792.19

TOTAL OPERATING EXPENSES $27,062.62 $1,424.34 $6,765.67 $54,050.30 $2,844.75 $4,504.19

NOI $7,048.88 $371 $1,762.21 $66,639.70 $3,507.35 $5,553.31

11| OFFERING MEMORANDUM | TURTLE ROCK APARTMENTS | T-4 FINANCIALS & PRO FORMA

RENTAL COMPS

12| OFFERING MEMORANDUM | PARK PLACE APARTMENTS | RENTAL COMPS

1 | Upland Apartments

107 25th Ct NW, Birmingham, AL 35215

2 | Parkway Mirage

1819 Centerbrook Ct, Birmingham, AL 35215

3 | Valley Brook Apartments

2969 Galant Dr, Birmingham, AL 35215

4 | Raintree Apartments

2318 Raintree Ct, Birmingham, AL 35215

TURTLE ROCK CURRENT RENTSUNIT TYPE AVG SQ FT AVG MKT RENT

1/1 578 $575

1/1 842 $575

2/1 770 $650

13| OFFERING MEMORANDUM | PARK PLACE APARTMENTS | RENT COMPS

RENT COMPARABLESPROPERTY UNIT TYPE AVG SQ FT AVG MKT RENT

ONE BEDROOMS

Upland Apartments 1/1 560 $650

Parkway Mirage 1/1 750 $672

Valley Brook Apartments 1/1 700 $606

Raintree Apartments 1/1 675 $610

TWO BEDROOMS

Upland Apartments 2/1 940 $673

Parkway Mirage 2/1 860 $700

Valley Brook Apartments 2/1 850 $705

Raintree Apartments 2/1 975 $7251

2 3 4

14| OFFERING MEMORANDUM | PARK PLACE APARTMENTS | SALES COMPS

SALES COMPARABLESPROPERTY SALE DATE SALE PRICE PRICE/UNIT # UNITS

1900 28th St Ensley, Birmingham, AL

Mar 2020 $475,000 $43,182 11

137 58th St N, Birmingham, AL

Nov 2017 $622,000 $62,200 10

Colonial Square 1389 Hueytown Rd, Hueytown, AL

Jun 2019 $458,850 $45,885 10

828 Old Trail Rd, Birmingham, AL

Oct 2019 $665,000 $33,250 20

2 31