Offering Memorandum...PONCE DE LEON QUADRAPLEX # EXECUTIVE SUMMARY OFFERING SUMMARY MAJOR EMPLOYERS...

PONCE DE LEON QUADPLEXAtlanta, GA

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap 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 in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

PONCE DE LEON QUADRAPLEX

Atlanta, GA

ACT ID X0230777

TABLE OF CONTENTS

SECTION


INVESTMENT OVERVIEW 01

FINANCIAL ANALYSIS 02

SALES/ON-MARKET COMPARABLES 03

RENT COMPARABLES 04

MARKET OVERVIEW 05


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Cnn 10,029

Coca-Cola 9,667

Grady Health System 9,360

Dbhdd 8,561

Rfps Management Company II LP 5,900

Msouth Equity Partners 5,688

Apartmentime Com LLC 4,000

Msg 3,500

AT&T 3,339

Emory University 3,106

Hughes Spalding Childrens Hosp 3,000

Turner Broadcasting System Inc 2,936

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 19,856 156,343 369,584

2010 Census Pop 18,024 142,745 338,759

2015 Estimate HH 11,077 74,563 170,111

2010 Census HH 10,039 67,351 154,670

Median HH Income $67,176 $58,592 $50,455

Per Capita Income $63,048 $47,409 $41,460

Average HH Income $112,509 $97,005 $87,514

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

4 1 Bed/1 Bath 775

4 Total 3,100

VITAL DATA

Price $850,000 CURRENT PRO FORMA

Down Payment 100% / $850,000 CAP Rate Contact Agent Contact Agent

Loan Amount $0 GRM Contact Agent Contact Agent

Loan Type Proposed NewNet Operating Income

Contact Agent Contact Agent

Interest Rate / Amortization 0.00% / 0 YearsNet Cash Flow After Debt Service

Contact Agent Contact Agent

Price/Unit $212,500 Total Return Contact Agent Contact Agent

Price/SF $274.00

Number of Units 4

Rentable Square Feet 3,100

Year Built 1925

Lot Size 0.13 acre(s)

5


#

OFFERING SUMMARY

▪ Great Opportunity to Purchase Real Estate in a Highly Desirable Neighborhood

▪ Convenient Access to Major Interstates, Services, Nightlife, and Business Centers

▪ Excellent Conversion/Re-Positioning Opportunity

INVESTMENT HIGHLIGHTS

The Bergeron Group of Marcus & Millichap is pleased to present for sale the Ponce de Leon Quadraplex located at 1084 Ponce de Leon Avenue NE, Atlanta, GA 30306.

Ponce de Leon Avenue is famously known to Atlanta residents as a pathway to many retail/commercial amenities that provide the surrounding communities with an

abundance of entertainment options and highly sought after services (i.e. Ponce City Market, Freedom Parkway, Krog Street Market, nightlife/bars/restaurants, The Fox

Theatre, Midtown Business District, and much more). The quadraplex includes four one-bedroom/one-bath units of varying layouts. From the second floor balcony,

tenants can enjoy the hustle and bustle of the streets below and get an amazing view of the Downtown/Midtown skyline. Currently, only one unit is being leased to a

tenant.

This investment is ideally suitable for a prudent investor who is seeking to acquire real estate in a vibrant, market-appreciating neighborhood of Atlanta. For this

neighborhood, executives, managers and professionals make up 74.5% of the workforce; the average rental cost in this neighborhood is $1,240 and is higher than 69.5%

of the neighborhoods in Georgia; and average household income is $64,660. The property is also within the zoning limits of some of the best public schools in Atlanta (i.e.

Springdale Park Elementary, Kennedy Middle School, Inman Middle School and Grady High School).

For more details about the property, neighborhood of the property, and/or pricing, please contact listing agent.

INVESTMENT OVERVIEW

6


#

PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Property Ponce de Leon Quadraplex

Price $850,000

Property Address 1084 Ponce De Leon Ave NE, Atlanta, GA

SITE DESCRIPTION

Year Built/Renovated 1925

Lot Size 0.13 acre(s)

7

Downtown View from Unit 3

PONCE DE LEON QUADPLEX

8

Living Room – Unit 2


9

Kitchen – Unit 2


10

Bedroom - Unit 2


11

Bathroom – Unit 2


12

Washer/Dryer – Unit 1


13

Bathroom – Unit 3


14

Main Living Space – Unit 3


15

REGIONAL MAP


16

LOCAL MAP


17

AERIAL PHOTO


18


19

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

20

FINANCIAL ANALYSIS


21

RENT ROLL DETAIL

FINANCIAL ANALYSIS


OPERATING STATEMENT

22

FINANCIAL ANALYSIS


PRICING DETAIL

23

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.1 billion

total national

volume in 2016

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING


24


25

SALES/ON-MARKET

COMPARABLES

8


SALES COMPARABLES MAP

26


(SUBJECT)

Greenwood Avenue 999

The Maiden Apartments

880 N Highland Ave NE

Greenwood Apartments

St. Charles Apartments

729 Bonaventure Avenue,

NE

Seminole Apts.

Greenwood Avenue 960

Greenwood Ave

Apartments

1845 Monroe Drive NE

Apartmeents

Luther's Landing

29 Little Street Apartments

SE Apartments

371 Lanier Street

Apartments

Village of Bedford Pines

464 Cooper Street

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

7

8

13

14

15

6

9

10

11

12

27

Avg. $142

Avg. $89

$0

$30

$60

$90

$120

$150

$180

$210

$240

$270

$300

Ponce

de Leon

Quadraplex

Greenwood

Avenue 999

The Maiden

Apartments

880 N

Highland

Ave NE

Greenwood

Apartments

St. Charles

Apartments

729

Bonaventure

Avenue, NE

Seminole

Apts.

Greenwood

Avenue 960

Greenwood

Ave

Apartments

1845 Monroe

Drive NE

Apartmeents

Luther's

Landing

29 Little

Street

Apartments

SE

Apartments

371 Lanier

Street

Apartments

Village of

Bedford

Pines

464 Cooper

Street

PROPERTY NAMEPONCE DE LEON QUADRAPLEX

COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

28

Avg. $123,615

Avg. $70,222

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

$270,000

$300,000

Ponce

de Leon

Quadraplex

Greenwood

Avenue 999

The Maiden

Apartments

880 N

Highland

Ave NE

Greenwood

Apartments

St. Charles

Apartments

729

Bonaventure

Avenue, NE

Seminole

Apts.

Greenwood

Avenue 960

Greenwood

Ave

Apartments

1845 Monroe

Drive NE

Apartmeents

Luther's

Landing

29 Little

Street

Apartments

SE

Apartments

371 Lanier

Street

Apartments

Village of

Bedford

Pines

464 Cooper

Street


COMPARABLES

Average Price Per Unit

SALES COMPARABLES


SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


29

SALES COMPARABLES ON MARKET COMPARABLES


673 VISTA ISLE DRIVE

673 VISTA ISLE DRIVE, SUNRISE, FL, 33325


1084 PONCE DE LEON AVE NE, ATLANTA, GA, 30306

Units Unit Type

Offering Price: $850,000 4 1 Bed 1 Bath

Price/Unit: $212,500

Price/SF: $274.00

CAP Rate: 2.37%

GRM: 18.16

Total No. of Units: 4

Year Built: 1925

Underwriting Criteria

Income $46,800 Expenses $26,668

NOI $20,132

GREENWOOD AVENUE 999

1

Units Unit Type

Close Of Escrow: 11/30/2015 8 Studio 0 Bath

Sales Price: $874,720


Price/SF: $108.00


Year Built: 1960

NOTES

On November 30th, 2015, this 8-unit class C multi-family building sold for

$874,720 or $109,240 per unit. The building was sold in conjunction with a

3-bedroom single family residence at 848 Greenwood Ave for a total of

$1,775,000. At the time this sales comparable was completed we were

unable to verify the occupancy. Rents advertised on Greenleaf

Management's website advertise 1-bedrooms for $950-1150 in January

2016. The buyer assumed a 3-year loan from State Bank & Trust

Company for a principal amount of $1,485,272.

740 BARNETT ST NE, ATLANTA, GA, 30306

THE MAIDEN APARTMENTS

Units Unit Type


Sales Price: $1,332,000 2 1 Bdr 1 Bath

Price/Unit: $190,286 2 2 Bdr 1 Bath

Price/SF: $145.00

CAP Rate: 6.00%


Year Built: 1935


NOI $79,920

2

NOTES

The property at 740 Barnett St in Atlanta, GA sold on August 8th 2016.

The 7 unit apartment building sold for $1,332,000 or $190,286 per unit to

an individual investor. At the time of the sale the property was 100

percent occupied and was generating a cap rate of 6%. The property was

in escrow for 7 months, there were no conditions affecting the sale price.

The sale price and unit number were confirmed by the listing broker and

buyer. The cap rate was confirmed by the listing broker.

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


30


Units Unit Type


Sales Price: $1,925,000


Price/SF: $119.00


Year Built: 1958

880 N HIGHLAND AVE NE

3

880 N HIGHLAND AVE NE, ATLANTA, GA, 30306

NOTES

The apartment complex located at 880 N Highland Ave in Atlanta, GA sold

on November 30th, 2016. The previous individual owner sold the16 unit

apartment for $1,925,000 or $120,312 per unit to Schottenstein Realty

Company. At the time of the sale the property was 60 percent occupied,

once the final lease expires, the new owner plans on closing the building

and renovating the entire property. The sale price and new owner's plans

for the property were confirmed by source(s) deemed reliable.

GREENWOOD APARTMENTS

4

Units Unit Type

Close Of Escrow: 6/15/2016 29 1 Bdr 1 Bath


Price/Unit: $89,655

Price/SF: $130.00


Year Built: 1960

NOTES

On June 15, 2016 the 29-unit multi family property known as the

Greenwood Apartments was sold in an investment transaction for

approximately $2,600,000 or $89,655/unit. At the time of sale, it was a

class C apartment complex that first delivered in 1960. According to

CoStar information, this property was not actively on the market prior to

being sold.

765 SAINT CHARLES AVE NE, ATLANTA, GA, 30306

ST. CHARLES APARTMENTS

Units Unit Type




Price/SF: $171.00


Year Built: 1960

5

NOTES

The St. Charles Apartments located at 765 Saint Charles Ave NE in

Atlanta, GA sold on June 21, 2016. McDonald Asset Management sold

the 12 unit Multi-Family building for $1,144,000 or $95,333 per square foot

to Greenberg Knapp Properties, LLC. The down payment is based on the

$876,750 loan the buyer obtained. Neither parties could be reached to

confirm the details of the sale

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31


Units Unit Type




Price/SF: $170.00


Year Built: 1930

729 BONAVENTURE AVENUE, NE

6

729 BONAVENTURE AVE NE, ATLANTA, GA, 30306

NOTES

On April 27, 2016 the 11 unit multifamily building located at 729

Bonaventure Avenue NE Atlanta, GA, was sold for $1,333,000, or

$121,181.82 per unit. The buyer is a new developer to the area who is

coming from a large firm in New York City. The purchase was financed

with 82% debt originated with Arbor Commercial Mortgage LLC in the

form of a mortgage loan. All information in this sale comparable report

was verified with public record.

SEMINOLE APTS.

7

Units Unit Type




Price/SF: $153.00

CAP Rate: 6.50%


Year Built: 1920


NOI $149,500

NOTES

On August 31st, 2016, the 16 unit apartment community at 1115 Ponce De

Leon Ave in Atlanta, GA 30306 was sold for $2,300,000, or $143,750 per

unit. The property was sold as an investment at a 6.5% cap rate. There

was no financing associated with this sale at the time that the transaction

documents were recorded. It is unclear if the property was ever on the

market for sale. No sale conditions were reported. Information was

verified with the public record and the buyer, the seller could not be

reached.

960 GREENWOOD AVE NE, ATLANTA, GA, 30306

GREENWOOD AVENUE 960

Units Unit Type


Sales Price: $875,000


Price/SF: $151.00


Year Built: 1925


Expenses $9,588

8

NOTES

On 12/31/2015, this 6-unit mulfi-family building at 960 Greenwood Ave,

Atlanta, GA 30306 sold for $875,000 or $145,833 per unit. The property

was on the market for 2 weeks and was under escrow for approximately

45 days. The sale price, sale date, time on market and escrow were all

verified with the seller. The buyer could not be reached for comment.

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


32


Units Unit Type



Price/Unit: $96,842

Price/SF: $130.00


Year Built: 1959

GREENWOOD AVE APARTMENTS

9


NOTES

On 7/6/2016, the Greenwood Ave Apartments in Atlanta, GA, sold for

$1,840,000, or approximately $97,000 per unit. This 19 unit apartment

complex was constructed in 1959 and sit on .21 acres of land. All 19 units

are one bed/one bath. The seller confirmed the information used in this

sale comparable.

1845 MONROE DRIVE NE APARTMEENTS

10

On Market

List Price: $850,000


Price/SF: $202.00

CAP Rate: 6.03%


Year Built: 1950

NOTES

Price adjustment from $995,000 to $850,000 based on cap rate being

below market but property still being located in a neighborhood that is

comparable to Ponce de Leon Avenue.

1981 MARTIN LUTHER KING JR DR SW, ATLANTA, GA,

30310

LUTHER'S LANDING

Units Unit Type

On Market 2 1 Bdr 1 Bath

List Price: $720,000 38 2 Bdr 1 Bath

Price/Unit: $18,000

Price/SF: $23.00

CAP Rate: 12.00%


Year Built: 1965

11

NOTES

Price adjustment from $1,200,000 to $720,000 based on rent levels,

condition of the property, and poor location/neighborhood.

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


33


Units Unit Type



Price/Unit: $35,000

Price/SF: $55.00


Year Built: 1961

29 LITTLE STREET APARTMENTS SE

APARTMENTS

12

29 LITTLE ST SE, ATLANTA, GA, 30315

NOTES

Price adjustment from $700,000 to $420,000 based on rent levels,

condition of the property, and poor location/neighborhood.

371 LANIER STREET APARTMENTS

13

On Market


Price/Unit: $25,000

Price/SF: $20.00


Year Built: 1969

NOTES

Price adjustment from $150,000 to $100,000 based on poor

location/neighborhood.

496 BOULEVARD NE, ATLANTA, GA, 30308

VILLAGE OF BEDFORD PINES

On Market


Price/Unit: $76,667

Price/SF: $120.00


Year Built: 1928

14

NOTES

Price adjustment from $525,000 to $460,000 based on

location/neighborhood.

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


34


Units Unit Type


List Price: $750,000 2 2 Bdr 2 Bath


Price/SF: $115.00


Year Built: 2008

464 COOPER STREET

15

464 COOPER ST SW, ATLANTA, GA, 30312

NOTES

Price adjustment from $995,000 to $750,000 based on location of the

property.


35

RENT

COMPARABLES

8


RENT COMPARABLES MAP


(SUBJECT)

1208 Virginia Ave NE

886 Saint Charles Ave NE

905 Greenwood Ave NE

1016 Greenwood Ave NE


Greenwood Apartments


4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

1

2

3

5

6

36


COMPARABLES

37

AVERAGE OCCUPANCY

Avg. 95.36%

0

10

20

30

40

50

60

70

80

90

100

Ponce

de Leon

Quadraplex

1208

Virginia

Ave NE

886 Saint

Charles

Ave NE

905

Greenwood

Ave NE

1016

Greenwood

Ave NE

St. Charles

Apartments

Greenwood

Apartments

St. Charles

Apartments-2


COMPARABLES

38

AVERAGE RENT - MULTIFAMILY

Avg. $950

0

200

400

600

800

1,000

Ponce

de Leon

Quadraplex

1208

Virginia

Ave NE

886 Saint

Charles

Ave NE

905

Greenwood

Ave NE

1016

Greenwood

Ave NE

St. Charles

Apartments

Greenwood

Apartments

St. Charles

Apartments

1 Bedroom

Avg. $950

0

200

400

600

800

1,000

Ponce

de Leon

Quadraplex

1208

Virginia

Ave NE

886 Saint

Charles

Ave NE

905

Greenwood

Ave NE

1016

Greenwood

Ave NE

St. Charles

Apartments

Greenwood

Apartments

St. Charles

Apartments

2 Bedroom

Avg. $950

0

200

400

600

800

1,000

Ponce

de Leon

Quadraplex

1208

Virginia

Ave NE

886 Saint

Charles

Ave NE

905

Greenwood

Ave NE

1016

Greenwood

Ave NE

St. Charles

Apartments

Greenwood

Apartments

St. Charles

Apartments

3 Bedroom

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES







39

YEAR BUILT: 1925



Unit Type Units SF Rent Rent/SF

1 Bed 1 Bath 4 775 $950.00 $1.23

Total/Avg. 4 775

1208 VIRGINIA AVE NE1208 VIRGINIA AVE NE, ATLANTA, GA, 30306

OCCUPANCY: 100% | YEAR BUILT: 1956

1


Studio 6 600 $790 $1.32

1 Bdr 6 800 $879 $1.10

Total/Avg. 12 700 $835 $1.21

NOTES

Concessions: 0.2 Amenities: Dishwasher, Hardwood Floors, Walk-In

Closets

886 SAINT CHARLES AVE NE886 SAINT CHARLES AVE NE, ATLANTA, GA, 30306

2


1 Bdr 4 800 $675 $0.85

2 Bdr 4 900 $1,016 $1.13

Total/Avg. 8 850 $846 $0.99


NOTES

Concessions: 0.3 Amenities: Air Conditioning, Balcony, Hardwood Floors

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

905 GREENWOOD AVE NE






40

905 GREENWOOD AVE NE905 GREENWOOD AVE NE, ATLANTA, GA, 30306


3


1 Bdr 8 650 $668 $1.03

Total/Avg. 8 650 $668 $1.03

NOTES

Concessions: 0.6

1016 GREENWOOD AVE NE1016 GREENWOOD AVE NE, ATLANTA, GA, 30306


4


1 Bdr 10 650 $754 $1.16

Total/Avg. 10 650 $754 $1.16

NOTES

Concessions: 0.6

ST. CHARLES APARTMENTS765 SAINT CHARLES AVE NE, ATLANTA, GA, 30306

5


Studio 1 600 $778 $1.30

1 Bdr 10 588 $746 $1.27

2 Bdr 1 900 $916 $1.02

Total/Avg. 12 615 $763 $1.25


NOTES

Concessions: 0.9

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES







41

GREENWOOD APARTMENTS890 GREENWOOD AVE NE, ATLANTA, GA, 30306


6


1 Bdr 20 650 $850 $1.31

Total/Avg. 20 650 $850 $1.31

NOTES

Concessions: 0 Amenities: Air Conditioning, Heating, Kitchen, Oven,

Range, Refrigerator, Tub/Shower, Wheelchair Accessible (Rooms)

ST. CHARLES APARTMENTS954 SAINT CHARLES AVE NE, ATLANTA, GA, 30306


7


1 Bdr 20 650 $850 $1.31

Total/Avg. 20 650 $850 $1.31

NOTES

Concessions: 0 Amenities: Air Conditioning, Laundry Facilities, Oven,

Refrigerator


42

MARKET

OVERVIEW

MARKET OVERVIEW

Atlanta-Sandy Springs-Marietta Metro

Market Highlights

Heavy concentration of headquarters

▪ Atlanta ranks fifth in the nation in the number of Fortune 500 headquarters with 18, including UPS, Coca-Cola,

Delta Air Lines and SunTrust Banks.

High median household income

▪ The metro’s annual median household income of $59,000 places it above the U.S. level of $56,100.

Low costs of living and doing business attract jobs

▪ A pro-business environment and affordable home prices helped Atlanta rise to fourth in the nation in job

creation last year.

ATLANTA

The Atlanta metro is nestled in the rolling hills of

northwestern Georgia. The Chattahoochee River and Stone

Mountain are recognized as spectacular geological features

in the area. Stone Mountain, located east of Atlanta, is a

major part of a granite vein running through the region. With

few natural barriers to limit development, tremendous

population growth over the past decade expanded the

metro’s borders, which now encompass 21 counties.

Meanwhile, new redevelopment projects downtown that

present a vast array of housing, entertainment and retail

opportunities are enticing residents back into the city.

Geography


43

MARKET OVERVIEW

Atlanta’s extensive and well-developed transportation network is a key competitive advantage. Hartsfield-

Jackson Atlanta International Airport is the busiest passenger airport in the world. It is also home to Delta Air

Lines and a major air cargo hub.

The metro’s extensive road, rail and airport systems and its proximity to the Port of Savannah ensure its status

as the pre-eminent distribution hub for the Southeast. CSX and Norfolk Southern provide rail connections

nationally through five intermodal yards.

The Metropolitan Atlanta Rapid Transit Authority (MARTA) operates train and bus service throughout the region;

its system contains dozens of train stations running on four lines with a link to the airport and around 125 bus

lines. The Atlanta Regional Commission is embarking on an exciting new initiative that will provide major

transportation system improvements including expanding passenger rail lines and developing a new regional

bus service.

Infrastructure

Atlanta is:

▪ 250 miles from Savannah

▪ 640 miles from Washington, D.C.

▪ 720 miles from Chicago

▪ 790 miles from Dallas

Airports

▪ Hartsfield-Jackson Atlanta International Airport

▪ Six reliever airports

Major Roadways

▪ Interstates 20, 75, 85, 285 and 575

Rail

▪ Freight – CSX and Norfolk Southern

▪ Passenger – Amtrak

▪ Commuter – MARTA

The Atlanta metro is home to more than 5.6 million residents. From 2010 to 2015, the population rose by

351,100 people. In the coming five years, annual population growth will flourish even more rapidly with the

addition of 481,600 people. Fulton is the most populous county in the metro with 1 million residents. Atlanta is

the largest city, with 465,200 residents.

Metro

Largest Cities in Metro by Population

Atlanta 465,200

Sandy Springs 102,900

Rowell 95,700

Johns Creek 84,000

Alpharetta 62,500

Marietta 59,700

* Forecast

Sources: Marcus & Millichap Research Services; U.S. Census

Bureau; Experian

ATLANTA


44

MARKET OVERVIEW

The Atlanta economy is thriving, with both gross metropolitan product (GMP) and

retail sales progressing above national levels. The metro ranks high in the nation

for Fortune 500 headquarters and serves as a financial hub for the Southeast; it is

home to SunTrust Bank and the Federal Reserve Bank of Atlanta.

Many companies favor Atlanta for its low corporate taxes, pro-business climate,

and access to national and global markets. The metro boasts one of the

country’s largest concentrations of air transportation, cargo and warehousing

operations, making trade, transportation and utilities the dominant employment

sector.

Atlanta is also an exceptional business and government center. Numerous

governmental and educational entities are based in Atlanta, including the Centers

for Disease Control, the Federal Reserve District Six and more than 30 accredited

higher learning institutions. Technology-focused R&D programs and facilities at

the universities boost high-tech employment.

Media outlets have an immense presence in Atlanta with CNN headquartered in

the city, along with Turner Broadcasting System, Cox Communications and The

Weather Channel. Five local media production companies have aided in the

establishment of the prosperous film industry, which now has a statewide

economic impact of $5.1 billion annually.

Economy

* Forecast

Sources: Marcus & Millichap Research Services; Bureau of Economic

Analysis; Moody’s Analytics; U.S. Census Bureau; Fortune

ATLANTA


2015 Atlanta Fortune 500 Headquarters

Home Depot Rock-Tenn

Newell Rubbermaid Genuine Parts

The Coca-Cola Co. First Data

Delta Air Lines AGCO

Coca-Cola Enterprises UPS

Southern Co. NCR

SunTrust Banks HD Supply

Asbury Automotive Aflac

ARRIS Group AGL Resources

45

MARKET OVERVIEW

For the last five years, nonfarm employment in the Atlanta metro has consistently averaged higher growth per

year than the U.S. In the coming five years, this trend will continue as Atlanta posts an average 2.0 annualized

growth rate, exceeding the national average of 1.3 percent annually. With the existing employment base

totaling more than 2.6 million positions, job growth will sustain an expanding economy.

Currently, the largest share of metro employment is represented by the trade, transportation and utilities sector,

which comprises 22 percent of jobs. The sector derives its strength from the region’s position as the primary

distribution hub for the Southeast; numerous large companies have office and warehouse facilities in the area.

Employment in trade, transportation and utilities is expected to expand at an average rate of 1.6 percent

annually over the next five years.

The professional and business services industry accounts for 19 percent of local jobs and is projected to post

annual gains of 2.8 percent through 2020. Expansion in this sector will fuel the need for office space. Education

and health services employment also continues to escalate as the population rises. This sector currently

provides nearly 321,800 jobs and is expected to average 3.1 percent annual growth in the coming five years.

During this period, all sectors will expand, but the fastest employment growth will be in construction. The sector

will add jobs at an annual pace of 3.8 percent as new housing starts increase and major developments, such as

facilities for the Atlanta Braves and Atlanta Falcons, proceed.

Labor

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Moody’s

Analytics

ATLANTA


46

MARKET OVERVIEW

Atlanta is one of the nation’s leading business centers. In total, 18 Fortune 500 companies call the metro their headquarters, and many of the world’s most recognizable

companies have a substantial presence in the metro. Large employers include Delta, Home Depot, United Parcel Service (UPS) and Cox Communications. Among these,

both UPS and Cox chose to relocate to Atlanta to take advantage of the high-quality workforce, a low cost of doing business and a well-developed transportation

infrastructure. Mercedes-Benz is in the process of moving their headquarters to Atlanta, adding hundreds of employees and State Farm will anchor the largest corporate

office project in the metro. When completed, the 2.2-million-square-foot mixed-use project in Dunwoody will house 8,000 employees.

Other major employers include transportation companies such as Southwest Airlines and Delta Air Lines, which has a local payroll of more than 27,000 workers. Many of the

transportation jobs are located at Hartsfield-Jackson Atlanta International Airport.

Telecommunications companies in the metro include AT&T, CNN and Cox Communications. The area also hosts a growing biotechnology industry, and defense

manufacturer Lockheed Martin is located in Marietta.

Atlanta has the largest concentration of government and financial offices in the Southeast, including the State of Georgia, Centers for Disease Control and SunTrust Banks.

It also has many population-serving employers, such as American Cancer Society, WellStar Health Systems and Emory University.

Employers

Major Employers

Gwinnett County Public Schools

Emory University

Delta Air Lines

Cox Enterprises, Inc.

Cobb County Public Schools

AT&T

Wal-Mart

UPS

WellStar Health Systems

Home Depot

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Moody’s

Analytics; Experian

ATLANTA


47

MARKET OVERVIEW

Atlanta’s emergence as a world-class business center and the population shift to Sun Belt areas continue to drive population growth. The metro is ranked among the

nation’s top 10 largest, and will exceed 6 million residents by 2019.

Many of the young people who move to Atlanta for employment have chosen to remain in the region and have families. This has lowered the median age to 35.6 years,

which is younger than the U.S. median. More than 62 percent of residents are in their working years, and seniors comprise just 10 percent of the population.

Educational attainment is high, as 34.6 percent of the local population age 25 and older have obtained at least a bachelor’s degree, up from 31 percent in 2000. Job quality

has also increased, as reflected in a median household income of nearly $59,000 per year, above the national median of $56,100 annually.

In the coming five years, the rise in household income will outpace a tick up in home prices. This trend should expand the homeownership rate in the metro. Atlanta home

prices are among the most affordable of Southeastern cities, with a median price of $175,900. This has contributed to a homeownership rate of 64.2 percent, slightly higher

than the national average.

Demographics

ATLANTA

* Forecast

Sources: Marcus & Millichap Research Services; AGS; Experian;

Moody’s Analytics; U.S. Census Bureau


48

MARKET OVERVIEW

The Atlanta metro features a surging business environment and modern infrastructure while providing entertainment and attractions in a safe and comfortable community.

With its genuine Southern hospitality, Atlanta boasts a lifestyle that attracts many people. Affordable housing lowers the average cost of living, allowing citizens to lead

prosperous lives in the region, whether in a rural or urban setting.

Outdoor and sports enthusiasts will find plenty to enjoy. Mild weather year-round beckons residents to hike and bike on the many trails in and around Atlanta. Atlanta is also

home to professional sports franchises in the NFL, MLB, NBA and WNBA.

The metro has several acclaimed cultural institutions, including Zoo Atlanta and the High Museum of Art. Central Atlanta continues its urban renaissance with an abundance

of nightclubs, restaurants and entertainment venues, including the Atlanta Symphony Orchestra and the Atlanta Ballet. The Georgia Aquarium, the National Center for Civil

and Human Rights, the College Football Hall of Fame and the World of Coca-Cola museum are all located downtown in Centennial Park.

More than 30 institutions of higher learning call Atlanta home, including Emory University, Georgia Institute of Technology and Spelman College.

* Forecast

Sources: Marcus & Millichap Research Services; Economy.com;

National Association of Realtors; U.S. Census Bureau

Quality of Life

ATLANTA


49

MARKET OVERVIEW


50

ATLANTA METRO AREA

Diverse Growth Igniting Apartment Demand,

Declining Vacancy and Elevating Rents

Vacancy remains tight despite substantial construction. Growth in degreed fields will expand recruiting

to outside of Atlanta and support additional relocations to the metro during 2017, fortifying rental housing

demand. New industries will also play a vital role. Notably, the metro has become a hotbed for television

and film production, which are bringing hundreds of new jobs to the area. A shortage of production facilities

represents the motivation for Georgia Motion Picture Studios to build a $280 million mixed-use development

that will become the state’s largest TV and film production lot. Construction begins this year along Atlanta’s

northeast perimeter and will include more than 600 apartments. Construction crews remain active around

the metro, with several complexes coming online in Midtown and Buckhead. Despite another year of sizable

supply growth, healthy tenant demand will tighten the vacancy rate for an eighth consecutive year and raise

the average rent to an all-time high in 2017.

Value-add opportunities dominating deal flow. Investor optimism regarding the metro’s economic outlook

will encourage transaction activity this year and create new opportunities for owners to bring their properties

to market. Investors favor Class B/C garden-style properties within the perimeter near access to major

transportation routes. In these areas, improvements and updated amenities can increase market rents and

raise property revenue. First-year returns for these assets typically start in the high-5 percent band. The

Cumberland/Galleria area also will draw investor interest this year as a new stadium for the Atlanta Braves

opens. Several multifamily complexes will be completed near the stadium, providing potential opportunities

for investors in institutional-grade assets. Complexes in this area typically trade with cap rates in the low-6

percent range, but the new demand drivers could intensify bidding and place downward pressure on first-

year returns.

*Estimate ** Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

MARKET OVERVIEW


51

ATLANTA METRO AREA

2017 Market Forecast

Corporate expansions drive household growth, moving Atlanta up

six positions.

Atlanta employers will create 68,000 positions in 2017, extending gains

recorded over the past six years. Last year, approximately 79,000 jobs

were added.

More than 12,000 apartments remain on track for delivery this year, up from

10,800 units in 2016.

Strong tenant demand pushes vacancy down to 4.3 percent. Net

absorption of 12,600 units cut the vacancy rate 50 basis points one

year ago.

Positive demand drivers and a reduction in vacancy support a 5.0 percent

rise in the average rent to $1,128 per month in 2017. An increase of 6.7

percent was posted last year.

Cap rates in the low-6 percent area remain up to 150 basis points higher

than the typical first-year returns in gateway cities and will attract out-of-

state investors, primarily from New York, California and South Florida, to the

Atlanta apartment market.

* Estimate ** Forecast

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

NMI Rank

14, up 6 places

Employment

up 2.5%

Construction

12,000 units

Vacancy

down 20 bps

Rent

up 5.0%

Investment

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on March 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2020 Projection

Total Population 20,407 164,319 386,541

▪ 2015 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2015 Estimate 20,035 392,667 705,130

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2020 Projection

Total Households 11,366 79,654 180,726

▪ 2015 Estimate


Average (Mean) Household Size 1.76 1.83 1.97

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 2.61% 6.83% 6.24%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2020 Projection 11,366 79,654 180,726

2015 Estimate 11,464 81,491 190,333

Owner Occupied 4,678 33,807 72,448

Renter Occupied 6,399 40,756 97,663

Vacant 387 6,929 20,222

▪ Persons In Units

2015 Estimate Total Occupied Units 11,077 74,563 170,111

1 Person Units 52.56% 49.82% 46.75%

2 Person Units 30.88% 31.51% 30.57%

3 Person Units 8.31% 9.66% 10.93%

4 Person Units 5.88% 6.14% 6.97%

5 Person Units 1.65% 1.84% 2.69%

6+ Person Units 0.71% 1.03% 2.08%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2015 Estimate

$200,000 or More 12.71% 9.58% 8.27%

$150,000 - $199,000 6.93% 6.73% 5.43%

$100,000 - $149,000 14.71% 13.53% 11.85%

$75,000 - $99,999 10.58% 10.48% 9.68%

$50,000 - $74,999 16.51% 15.57% 15.07%

$35,000 - $49,999 11.17% 10.48% 11.49%

$25,000 - $34,999 8.55% 8.56% 9.45%

$15,000 - $24,999 8.36% 9.63% 11.00%

Under $15,000 10.49% 15.44% 17.76%

Average Household Income $112,509 $97,005 $87,514

Median Household Income $67,176 $58,592 $50,455

Per Capita Income $63,048 $47,409 $41,460

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2015 Estimate Total Population 19,856 156,343 369,584

Under 20 14.65% 18.02% 19.96%

20 to 34 Years 36.07% 36.00% 34.03%

35 to 39 Years 11.06% 9.18% 8.62%

40 to 49 Years 17.33% 15.05% 13.99%

50 to 64 Years 15.21% 14.53% 14.56%

Age 65+ 5.66% 7.20% 8.86%

Median Age 34.73 33.20 33.09

▪ Population 25+ by Education Level

2015 Estimate Population Age 25+ 15,607 108,963 254,035

Elementary (0-8) 0.38% 1.24% 2.10%

Some High School (9-11) 1.91% 4.34% 6.23%

High School Graduate (12) 8.10% 11.31% 15.51%

Some College (13-15) 11.62% 13.08% 14.77%

Associate Degree Only 2.97% 4.31% 4.46%

Bachelors Degree Only 39.12% 35.73% 31.65%

Graduate Degree 35.77% 29.29% 24.28%

▪ Population by Gender

2015 Estimate Total Population 19,856 156,343 369,584

Male Population 51.08% 53.01% 51.23%

Female Population 48.92% 46.99% 48.77%

52

Income

In 2016, the median household income for your selected geography is

$67,176, compare this to the US average which is currently $54,148.

The median household income for your area has changed by 39.82%

since 2000. It is estimated that the median household income in your

area will be $81,953 five years from now, which represents a change

of 22.00% from the current year.

The current year per capita income in your area is $63,048, compare

this to the US average, which is $29,638. The current year average

household income in your area is $112,509, compare this to the US

average which is $77,468.

Population

In 2016, the population in your selected geography is 19,856. The

population has changed by 19.62% since 2000. It is estimated that

the population in your area will be 20,407.00 five years from now,

which represents a change of 2.77% from the current year. The

current population is 51.08% male and 48.92% female. The median

age of the population in your area is 34.73, compare this to the US

average which is 37.55. The population density in your area is

6,319.89 people per square mile.

Households

There are currently 11,077 households in your selected geography.

The number of households has changed by 15.75% since 2000. It is

estimated that the number of households in your area will be 11,366

five years from now, which represents a change of 2.61% from the

current year. The average household size in your area is 1.76 persons.

Employment

In 2016, there are 7,448 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

84.98% of employees are employed in white-collar occupations in

this geography, and 14.84% are employed in blue-collar occupations.

In 2016, unemployment in this area is 1.96%. In 2000, the average

time traveled to work was 24.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

81.84% White, 10.68% Black, 0.04% Native American and 3.00%

Asian/Pacific Islander. Compare these to US averages which are:

70.98% White, 12.77% Black, 0.19% Native American and 5.25%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 4.66% of the current year

population in your selected area. Compare this to the US average of

17.53%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $407,623 in 2016,

compare this to the US average of $185,104. In 2000, there were

3,645 owner occupied housing units in your area and there were

5,925 renter occupied housing units in your area. The median rent at

the time was $660.

Source: © 2016 Experian

DEMOGRAPHICS

53

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