OFFERING MEMORANDUM

Shannon Falls

3201 ThomasMemphis, TN 38127

Shannon FallsCONTENTS

Exclusively Marketed by:

Curtis Braden, CCIMPrincipal Broker(901) 881-2070Lic: TN: 284224, MS19110, AR AB00069049cbraden@bbbcre.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

01 Executive Summary Investment Summary 3 Unit Mix Summary 4 Location Summary 5

02 Property Description Property Features 6 Aerial Map 7 Property Images 8

03 Rent Roll Rent Roll 11

04 Financial Analysis Income & Expense Analysis 14 Multiyear Cash Flow Assumptions 15 Cash Flow Analysis 16 Disposition Sensitivity Analysis 18

05 Demographics Demographics 19 Demographic Charts 21

Shannon Falls Investment Summary | 03

OFFERING SUMMARYADDRESS 3201 Thomas

Memphis TN 38127COUNTY ShelbyMARKET MSASUBMARKET FrayserBUILDING SF 59,228 SFNUMBER OF UNITS 88YEAR BUILT 1954YEAR RENOVATED 2007OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $2,000,000PRICE PSF $33.77PRICE PER UNIT $22,727OCCUPANCY 60.00 %NOI (CURRENT) $148,028NOI (Pro Forma) $322,416CAP RATE (CURRENT) 7.40 %CAP RATE (Pro Forma) 16.12 %GRM (CURRENT) 3.84GRM (Pro Forma) 3.23

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 7,317 33,191 99,5032019 Median HH Income $23,737 $29,928 $30,7022019 Average HH Income $34,977 $45,429 $49,864

Braden, Braden & Braden is pleased to offer for sale Shannon FallsApartments. This asset is an 88-unit, garden style complex. The two-storyproperty is an affordable value add apartment complex located in theNorth sub-market of Memphis Tennessee. The property's well configuredunit mix, high visibility, strong demand and convenient location in Memphismakes Shannon Falls an excellent value add investment opportunity.

Shannon Falls has sixty occupied units, and twenty eight down units inneed of rehab.

Shannon Falls Unit Mix Summary | 04

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income

1 bd + 1 ba 12 577 $450 $0.78 $5,400 $500 $0.87 $6,0002 bd + 1 ba 76 705 $500 $0.71 $38,000 $600 $0.85 $45,600

Totals/Averages 88 688 $475 $0.72 $43,400 $550 $0.86 $51,600

Shannon Falls Location Summary | 05

Location Summary• This multi-family asset sits in the 38127 zip code of Memphis, TN,which has an estimated Median Home Value of $58,200 and

Median Rent at $886. The property is situated in a prime locationnear a number of public and private schools, and with eateries, abank, a church, convenience stores and a shopping center all withinwalking distance, the high traffic area brings value to this asset.

Regional Map

Locator Map

Shannon Falls Property Features | 06

PROPERTY FEATURESNUMBER OF UNITS 88BUILDING SF 59,228LAND ACRES 5.39YEAR BUILT 1954YEAR RENOVATED 2007# OF PARCELS 1ZONING TYPE R-MMBUILDING CLASS CLOCATION CLASS CNUMBER OF STORIES 2NUMBER OF BUILDINGS 6PARKING RATIO 2.1POOL / JACUZZI Pool

MECHANICALHVAC Central

UTILITIESWATER Owner PaysTRASH Tenant PaysGAS Tenant PaysELECTRIC Tenant Pays

CONSTRUCTIONFOUNDATION SlabFRAMING WoodEXTERIOR BrickPARKING SURFACE AsphaltROOF FlatLANDSCAPING Trees

Shannon Falls Aerial Map | 07

Shannon Falls Property Images | 08

Shannon Falls Property Images | 09

Shannon Falls Property Images | 10

Shannon Falls Rent Roll | 11

Shannon Falls Rent Roll | 12

Shannon Falls Rent Roll | 13

Shannon Falls Income & Expense Analysis | 14

INCOME CURRENT PRO FORMAGross Potential Income $520,800 $619,200

Less: General Vacancy $208,320 $30,960

Effective Gross Income $312,480 $588,240

Less: Expenses $164,452 $265,824

Net Operating Income $148,028 $322,416

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $139 $12,240 $205 $18,000

Insurance $69 $6,100 $114 $10,000

Management Fee $668 $58,824

Marketing $73 $6,400 $136 $12,000

Repairs & Maintenance $518 $45,574 $568 $50,000

Utilities $321 $28,231 $398 $35,000

Landscaping $68 $6,000 $136 $12,000

Administration $49 $4,320 $57 $5,000

Payroll $318 $28,000 $398 $35,000

Other expenses $313 $27,587 $341 $30,000

Total Operating Expense $1,869 $164,452 $3,021 $265,824

Expense / SF $2.77 $4.48

% of EGI 52.63 % 45.19 %

Per Unit Per Unit

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

Shannon Falls Multiyear Cash Flow Assumptions | 15

GLOBALOffering Price $2,000,000

Shannon Falls Cash Flow Analysis | 16

CASH FLOWCalendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $520,800 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200Gross Potential Income $520,800 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200 $619,200General Vacancy $208,320 $30,960 $30,960 $30,960 $30,960 $30,960 $30,960 $30,960 $30,960 $30,960Effective Gross Income $312,480 $588,240 $588,240 $588,240 $588,240 $588,240 $588,240 $588,240 $588,240 $588,240Operating ExpensesReal Estate Taxes $12,240 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000Insurance $6,100 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000Management Fee $58,824 $58,824 $58,824 $58,824 $58,824 $58,824 $58,824 $58,824 $58,824Marketing $6,400 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000Repairs & Maintenance $45,574 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000Utilities $28,231 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000Landscaping $6,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000Administration $4,320 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000Payroll $28,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000Other expenses $27,587 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000Total Operating Expense $164,452 $265,824 $265,824 $265,824 $265,824 $265,824 $265,824 $265,824 $265,824 $265,824Net Operating Income $148,028 $322,416 $322,416 $322,416 $322,416 $322,416 $322,416 $322,416 $322,416 $322,416

Effective Gross Income vs Operating Expenses Cash Flow

Shannon Falls Cash Flow Analysis | 17

Calendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 7.40 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 %CAP Rate 7.40 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 % 16.12 %Operating Expense Ratio 52.62 % 45.18 % 45.18 % 45.18 % 45.18 % 45.18 % 45.18 % 45.18 % 45.18 % 45.18 %Gross Multiplier (GRM) 3.84 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23 3.23Breakeven Ratio 52.63 % 45.19 % 45.19 % 45.19 % 45.19 % 45.19 % 45.19 % 45.19 % 45.19 % 45.19 %Price / SF $33.77 $33.77 $33.77 $33.77 $33.77 $33.77 $33.77 $33.77 $33.77 $33.77Price / Unit $22,727 $22,727 $22,727 $22,727 $22,727 $22,727 $22,727 $22,727 $22,727 $22,727Income / SF $5.27 $9.93 $9.93 $9.93 $9.93 $9.93 $9.93 $9.93 $9.93 $9.93Expense / SF $2.77 $4.48 $4.48 $4.48 $4.48 $4.48 $4.48 $4.48 $4.48 $4.48

Shannon Falls Disposition Sensitivity Analysis | 18

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $128,966,400 $1,465,527 $2,177 $128,966,400 134.02%0.50% $64,483,200 $732,764 $1,089 $64,483,200 104.88%0.75% $42,988,800 $488,509 $726 $42,988,800 89.76%1.00% $32,241,600 $366,382 $544 $32,241,600 79.83%1.25% $25,793,280 $293,105 $435 $25,793,280 72.56%1.50% $21,494,400 $244,255 $363 $21,494,400 66.90%1.75% $18,423,771 $209,361 $311 $18,423,771 62.30%2.00% $16,120,800 $183,191 $272 $16,120,800 58.46%2.25% $14,329,600 $162,836 $242 $14,329,600 55.17%

10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

0.25% $128,966,400 $1,465,527 $2,177 $128,966,400 55.70%0.50% $64,483,200 $732,764 $1,089 $64,483,200 46.27%0.75% $42,988,800 $488,509 $726 $42,988,800 41.19%1.00% $32,241,600 $366,382 $544 $32,241,600 37.78%1.25% $25,793,280 $293,105 $435 $25,793,280 35.25%1.50% $21,494,400 $244,255 $363 $21,494,400 33.27%1.75% $18,423,771 $209,361 $311 $18,423,771 31.64%2.00% $16,120,800 $183,191 $272 $16,120,800 30.28%2.25% $14,329,600 $162,836 $242 $14,329,600 29.11%

Shannon Falls Demographics | 19

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 9,242 37,064 112,556

2010 Population 7,719 34,458 100,173

2019 Population 7,317 33,191 99,503

2024 Population 7,279 33,077 100,071

2019 African American 5,850 26,149 76,881

2019 American Indian 13 73 217

2019 Asian 10 674 1,733

2019 Hispanic 286 993 2,846

2019 Other Race 153 532 1,590

2019 White 1,166 5,283 17,561

2019 Multiracial 125 476 1,496

2019-2024: Population: Growth Rate -0.50 % -0.35 % 0.55 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 873 3,443 10,874

$15,000-$24,999 430 1,799 5,454

$25,000-$34,999 283 1,417 4,131

$35,000-$49,999 353 1,823 5,374

$50,000-$74,999 406 1,898 5,634

$75,000-$99,999 91 674 2,337

$100,000-$149,999 52 528 2,179

$150,000-$199,999 23 274 916

$200,000 or greater 19 225 1,009

Median HH Income $23,737 $29,928 $30,702

Average HH Income $34,977 $45,429 $49,864

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 3,629 14,708 45,691

2010 Total Households 2,665 12,561 37,819

2019 Total Households 2,531 12,081 37,908

2024 Total Households 2,518 12,029 38,231

2019 Average Household Size 2.88 2.74 2.50

2000 Owner Occupied Housing 1,865 7,990 21,985

2000 Renter Occupied Housing 1,396 5,326 19,134

2019 Owner Occupied Housing 1,006 5,198 15,908

2019 Renter Occupied Housing 1,525 6,883 22,000

2019 Vacant Housing 826 3,264 9,292

2019 Total Housing 3,357 15,345 47,200

2024 Owner Occupied Housing 1,038 5,384 16,536

2024 Renter Occupied Housing 1,481 6,645 21,694

2024 Vacant Housing 860 3,434 9,752

2024 Total Housing 3,378 15,463 47,983

2019-2024: Households: Growth Rate -0.50 % -0.45 % 0.85 %

Source: esri

Shannon Falls Demographics | 20

2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2019 Population Age 30-34 486 2,507 7,460

2019 Population Age 35-39 419 2,054 6,320

2019 Population Age 40-44 347 1,676 5,448

2019 Population Age 45-49 362 1,705 5,636

2019 Population Age 50-54 418 1,896 6,020

2019 Population Age 55-59 408 1,966 6,417

2019 Population Age 60-64 352 1,723 5,959

2019 Population Age 65-69 284 1,356 4,762

2019 Population Age 70-74 180 833 3,272

2019 Population Age 75-79 122 513 2,027

2019 Population Age 80-84 80 309 1,256

2019 Population Age 85+ 63 292 1,242

2019 Population Age 18+ 4,889 23,680 75,604

2019 Median Age 29 31 34

2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $26,155 $38,462 $38,423

Average Household Income 25-34 $37,132 $54,957 $53,718

Median Household Income 35-44 $29,955 $36,150 $38,526

Average Household Income 35-44 $39,039 $55,008 $61,290

Median Household Income 45-54 $35,188 $35,146 $36,669

Average Household Income 45-54 $44,345 $49,751 $58,962

Median Household Income 55-64 $24,913 $29,988 $30,546

Average Household Income 55-64 $33,925 $41,550 $49,446

Median Household Income 65-74 $22,713 $25,232 $26,932

Average Household Income 65-74 $31,014 $35,360 $42,349

Average Household Income 75+ $25,072 $24,969 $26,897

2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2024 Population Age 30-34 505 2,648 7,705

2024 Population Age 35-39 430 2,152 6,545

2024 Population Age 40-44 375 1,823 5,920

2024 Population Age 45-49 348 1,614 5,353

2024 Population Age 50-54 396 1,783 5,790

2024 Population Age 55-59 359 1,758 5,675

2024 Population Age 60-64 328 1,677 5,777

2024 Population Age 65-69 297 1,459 5,124

2024 Population Age 70-74 210 1,031 3,892

2024 Population Age 75-79 154 703 2,674

2024 Population Age 80-84 104 375 1,490

2024 Population Age 85+ 58 293 1,301

2024 Population Age 18+ 4,850 23,651 76,308

2024 Median Age 29 32 35

2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $32,854 $48,080 $47,699

Average Household Income 25-34 $43,763 $66,805 $65,828

Median Household Income 35-44 $36,053 $42,685 $46,862

Average Household Income 35-44 $46,661 $64,995 $74,107

Median Household Income 45-54 $39,711 $41,616 $44,771

Average Household Income 45-54 $52,770 $60,306 $72,744

Median Household Income 55-64 $32,443 $37,458 $38,476

Average Household Income 55-64 $40,651 $50,159 $60,433

Median Household Income 65-74 $26,923 $29,867 $32,647

Average Household Income 65-74 $38,086 $42,619 $51,240

Average Household Income 75+ $31,070 $29,780 $33,580

Shannon Falls Demographic Charts | 21

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

Shannon Falls Demographic Charts | 22

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

Shannon Falls

CONFIDENTIALITY and DISCLAIMERThe information contained in the following offering memorandum is proprietary andstrictly confidential. It is intended to be reviewed only by the party receiving it fromBraden, Braden & Braden and it should not be made available to any other person orentity without the written consent of Braden, Braden & Braden.

By taking possession of and reviewing the information contained herein the recipientagrees to hold and treat all such information in the strictest confidence. Therecipient further agrees that recipient will not photocopy or duplicate any part of theoffering memorandum. If you have no interest in the subject property, pleasepromptly return this offering memorandum to Braden, Braden & Braden. This offeringmemorandum has been prepared to provide summary, unverified financial andphysical information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligenceinvestigation. Braden, Braden & Braden has not made any investigation, and makesno warranty or representation with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size andsquare footage of the property and improvements, the presence or absence ofcontaminating substances, PCBs or asbestos, the compliance with local, state andfederal regulations, the physical condition of the improvements thereon, or financialcondition or business prospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property.

The information contained in this offering memorandum has been obtained fromsources we believe reliable; however, Braden, Braden & Braden has not verified,and will not verify, any of the information contained herein, nor has Braden, Braden& Braden conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures toverify all of the information set forth herein. Prospective buyers shall be responsiblefor their costs and expenses of investigating the subject property.

Exclusively Marketed by:

Curtis Braden, CCIMPrincipal Broker(901) 881-2070Lic: TN: 284224, MS19110, AR AB00069049cbraden@bbbcre.com

powered by CREOP