| CREOP

The Treymore Apartments is an existing 28 unit apartment building that was built in 1916 and completely renovated down to the studs in 2016. The property was rehabbed with Low Income Housing Tax Credits and is currently in the 5th year of a 15 year compliance period, followed by a 15 year extended use period. The renovation includes all new electrical, mechanical (forced air), and plumbing through out the building. The owner also built an elevator. The property has an attractive unit mix of 11 one bedroom apartments and 17 two bedroom apartments and is currently 92% occupied. All units have a full kitchen with no dishwasher, a spacious living room, forced heat and AC, and a single bathroom. The building is three stories with an additional garden level. The garden level has a 350 square foot common area for residents, a common laundry facility, and an office for the property manager. The property currently has several loans that would need to be assumed with the purchase. These loans include a City loan that has a balance of +-$3,524,888 which has a 0% interest rate, accrued annually and paid upon maturity in 2057 ($1,200 annual fee to pay down principal, then due upon maturity). There is also a MSHDA loan of +-$740,360 at 5.875% interest only payments, due monthly along with a Brownfield equity loan of +-$116,700 that has a $1,200 annual payment. The debt service for the property is currently +-$45,000 annually. Across from Treymore Apartments is a +-19,000 square foot future building site that is currently being used as a parking lot. The lot is paved and gated, only about 4 to 9 of the spots are being used by residents. Over the past year, the owner has been working with MSHDA and the City to plan an additional 32 unit, three level LIHTC development that would sit over the surface parking. All financing entities (City, MSHDA, LIHTC syndicator) have agreed in principle for the future development and are currently formalizing the approvals. The existing 28 unit building, +-19,000 square foot lot, and proposed 32 unit development are included in the sale. With the future development of 32 units, this totals 50 units and 36 parking spaces on the corner of Brainard and Cass.