405.360.5966

buhl@crrc.us

918.557.5966

darla@crrc.us

Silver Elm Estates Edmond Senior Independent Living

1301 NW 178th Street, Edmond, OK 73012

www.crrc.us

Offering Highlights:

• Family owned and operated 105 –units built in 2006

• According to the 2010 Census, the elderly population is

expected to almost double by the year 2030 to 72 million to

make up 19% of the total population

Edmond:

• No. 1 City in America for “Worktirement” SmartAsset, 2019

• Most Artistic Towns in America, Expedia, 2018

• Best Places to Live, Money Magazine, 2018

• Most Successful City in Oklahoma, Zippia, 2018

Opportunity:

• Excellent investment for a 1031 buyer or investor looking for

a long-term stabilized return

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Silver Elm Estates Edmond Table of Contents

Section 1 Pages

• Disclaimer

• Photographs

• Neighborhood Map

• Submarket Map

• Aerial Maps

• Offering Description & Highlights

• Unit Mix and Historical Occupancy

• Health Care Industry & Demographics

• Building Layout

• Floor Plans

• Interior Photographs

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5-14

15

16

17-18

19-22

23-24

25-26

27

28-29

30-38

Section 2 39

• Purchase Price and Terms

• Financing

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41

Section 3 42

• Operating Data Highlights

• Income & Expense Spreadsheet

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44

Section 4 45

• Edmond / OKC at a Glance 46-47

Section 5 48

• CRRC Contacts 49

Addenda 50

• Sample Menu

• Sample Activity Schedule

• Oklahoma Broker Relationship Act

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Silver Elm Estates Edmond

Disclaimer

This package has been prepared to provide summary information to prospective buyers and to establish

an initial and preliminary level of interest in the property described herein. It is not intended to present all

material information regarding the subject property, and is not a substitute for a complete and thorough

due diligence investigation. Commercial Realty Resources has not made any investigation of the actual

property, the tenants, the operating history, financial reports, leases, square footage, age or any other

aspect of the property, including but not limited to the actual number of appliances being conveyed or

any potential environmental problems that may exist and makes no warranty or representation whatsoev-

er concerning these issues.

The information contained in this package has been obtained from sources we believe to be reliable;

however, Commercial Realty Resources and Seller have not conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of

the information provided. Any pro forma, projections, opinions, assumptions or estimates used are for ex-

ample only and do not necessarily represent the current or future performance of the property.

Commercial Realty Resources and Seller recommend that prospective buyers conduct an in-depth investi-

gation of the physical and financial aspects of the property to determine if the property meets their needs

and expectations. We also recommend that prospective buyers consult with their tax, financial and legal

advisors on any matter that may affect their decision to purchase the property and the subsequent con-

sequences of ownership.

Commercial Realty Resources and Seller recommend that prospective buyers consult with qualified pro-

fessionals regarding the presence of any molds, funguses, or other organisms that may adversely affect

the property and the health of individuals.

The material contained in this document is not to be copied and/or used for any purpose or made availa-

ble without the express written consent of Commercial Realty Resources.

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Neighborhood Map

16

Submarket Map

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Aerial Map

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Aerial Map

Offering Description

Silver Elm Estates of Edmond is a family owned and operated

Independent Senior Living Community with 105 units that was opened

in April 2006. It offers 87 apartment style units and 18 cottages with

attached one-car garages. The property offers security and the

convenience of community living to seniors who are able to live on

their own.

According to the 2010 Census, the elderly population is expected to

almost double by the year 2030 to 72 million to make up 19% of the

total population. In 2050, as many as one in five Americans could be

elderly. Much of the forecast growth will occur between 2010 and

2030 when the “Baby Boom” generation enter their elderly years.

These strong rates of growth will lead to growing demand for senior

housing.

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Chart is an excerpt from the November 17, 2015 Appraisal by Integra Realty

Resources Housing & Health Care Specialty Practice.

Offering Description continued

Highlights:

Offering Highlights:

• November 17, 2015 Appraisal on file in the amount of $17,390,000

by Integra Realty Resources Housing & Health Care Specialty

Practice.

Edmond:

• No. 1 City in America for “Worktirement” SmartAsset, 2019

• Most Artistic Towns in America, Expedia, 2018

• Best Places to Live, Money Magazine, 2018

• Most Successful City in Oklahoma, Zippia, 2018

Opportunity:

• Excellent investment for a 1031 buyer or investor looking for a long-

term stabilized return

Independent Living Facility (ILF):

• Age-restricted multifamily rental property with central dining facility

that provide residents, as part of their monthly fee, access to meals

and other services such as transportation and social and recrea-

tional activities.

Health Care:

• Edmond is home to a thriving health care industry that has created

an economic impact of more than $400 million since 2010. Major

health care providers in the area include INTEGRIS Health Edmond,

Mercy Edmond I-35, OU Medical Center Edmond, SSM Health and

Summit Medical Center.

20

Description:

Silver Elm Estates of Edmond is a family owned and operated

Independent Senior Living Community with 105 units that was opened

in April 2006. The property is a 100% private pay community.

One Bill to the Residents Includes:

All utilities

3 meals a day provided by Carson’s Food Service Management

Activities

Local Phone and Cable

Daily trash detail

Transportation

Weekly housekeeping

Number of Units: 105 Units

Number of Buildings: 6 single-story wings connected by a center corridor building and 3

cottage style buildings with 18-units and attached single-car garages

Year Built: Constructed in 2006

Parking: Concrete paved drives and open concrete paved parking lot having

a capacity for 100 spaces including; 16 carports and 84 uncovered

spaces

Access: Via fully heated and cooled interior hallways and via courtyards

Construction:

Style: Single -Story

Exterior: Concrete slab with wood frame and veneer of wood

Roof: Pitched roof covered with composition shingles

Parking Areas: Concrete driveway, curbs and sidewalks

Mechanical System:

Electrical Metering: Common

HVAC: Individual central, forced HVAC

Hot Water: Common boiler

Water: Common

Gas: Common

Site/Land Area: 9.094 Acres

(according to Legal Description)

Current Occupancy: 94% at time of offering

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Real Estate Taxes: R188131010 Assessed Value (2021): 941,325 Tax Rate per 1,000 : $120.64 Tax Amount (2021) : $113,561 Assessment Ratio: 11% of Market Value Reassessment may occur at the time of sale.

Key Features: 3 meals a day provided by Carson’s Food Service Management, with 30 years experience

16 Carports available 18 Cottage style units with attached one-car garages Library

Commercial Kitchen Cold Buffet Area

Main Dining Area Care Station Activity Room Exercise Room 2 common area bathrooms Fire sprinkler system with alarms Hard-wired, ceiling mounted smoke detectors in corridors

and offices Battery-powered, wall mounted emergency lighting Centrally monitored resident call system with pull chains in

each unit CCTV cameras, exterior door locks and intercom system Automatic underground irrigation On-site beauty shop leased to a private individual Within one-mile of Walmart Neighborhood Market, Walmart

Supercenter and Braum’s Dairy that provides grocery items See Addenda for sample Menu and Activity Schedule Community Fee: $1,000 Pet Fee: $1,000 2nd Person Fee: $600

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Distribution Ratio

1 Bed / 1 Bath

72%

2 Bed / 2 Bath

11%

2 Bed Cottage

17%

1 Bed / 1 Bath

2 Bed / 2 Bath

2 Bed Cottage

Rental Rates reflect increases implemented in June 2021

Individual unit square footages are estimated.

24

Historical Occupancy

96.50% Average

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26

www.crrc.us 27

MR= Mail Room

TR= Theater Room

BS= Beauty Shop

AR=Activities Room

L= Library

FD= Front Desk

www.crrc.us 28

www.crrc.us 29

www.crrc.us 30

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Activity Room

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Purchase Price & Terms

Purchase Price: $16,350,000

Terms of Sale: Cash

Buyer to Obtain New Financing

Price Per Residential Unit: $155,714

Price Per Sq. Ft. $146.78

Cap Rate:

5.69 Going-In

6.46 Stabilized

41

Lender: NA

Original Amount/Date:

NA

Current Balance/Date:

NA

Interest Rate:

NA

Interest Only Period:

NA

Payment:

NA

Amortization:

NA

Maturity Date:

NA

Buyer’s Cost of Assumption: NA

Existing Financing

3

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Income

We used market rents of $2,235 per month for an

average of $2.59 per square foot. The Gross Potential Rent was

calculated at $2,816,100 annually. We used a 92.5% economic

occupancy rate and applied actual loss-to-lease of $167,700 on

the Going-In Proforma. Expenses projected at $15,566 per unit

per year in Year 1.

Expenses

Real Estate Taxes have been adjusted to the Purchase Price on

the Stabilized Proforma.

Insurance is based on actual for 2020

Management fee is based upon 4%

Total Expenses are calculated at $15,566 per unit per year and

adjusted to $16,692 on the Stabilized Proforma.

Current management pays 100% of health benefits for full-time

employees.

Food service is through a contract with Carson’s Food Service

Management providing 3 meals a day for residents.

Net Operating Income

Stabilized NOI is underwritten at $1,055,682

Operating Data Highlights

Project: Silver ELM Estates Edmond Price: 16,350,000$ Run Date: 1-Jun-21Location: 1301 NW 178th - Edmond 73012 Per Unit: 155,714$ Cap Rate Going-In: 5.69% Cap Rate Stabilized: 6.46%Number of Units: 105 Per Foot NRSF / Gross: 180.64$ 146.78$ Cash-On-Cash Return P&I: 7.17% Cash-On-Cash Return P&I: 11.00%Net Rentable S.F. 90,510 First Mortgage Balance: 13,080,000$ Cash-On-Cash Return I.O.: 14.86% Cash-On-Cash Return I.O.: 18.68%Avg. Unit Size: 862 Equity Requirement: 3,270,000$ 20%

No. Units Bdrm / Bth Sq.Ft. Total Sq.Ft. Utility Market Rent Rent/Sq.Ft. Utility/Mo Gross/Mo. Gross/Yr.72 1 Bed / 1 Bath 725 52,200 - 2,095.00 2.89 - 150,840 1,810,080 3 1 Bed / 1 Bath 730 2,190 2,095.00 2.87 - 6,285 75,420

12 2 Bed / 2 Bath 1,060 12,720 - 2,420.00 2.28 - 29,040 348,480 18 2 Bed / 2 Bath Cottage w/ 1-Car Garage 1,300 23,400 - 2,695.00 2.07 - 48,510 582,120

105 862 90,510 - 2,235.00 2.59 - 234,675 2,816,100

Common Area 20,883 111,393 - - -

105 234,675 2,816,100

2019 20202021 March Trailing 3

Annualized

Proforma Stabilized

INCOME Per UnitGross Potential - - - - 2,816,100 2,816,100 26,820 Vacancy Loss - - - - 7.5% (211,771) 5.0% (140,805) (1,341) Loss to Lease - - - - (167,700) - - Gross Possible Rent 2,385,087 2,404,429 2,387,899 - 2,436,629 2,675,295 25,479 Original Bal. Jun-21 13,080,000$ Bad Debt - - - - - - - Current Bal. Jun-21 13,080,000$ Other Rental Losses - - - - - - - Maturity 10

- - - - - - - Amortization 30Effective Rental Income 2,385,087 2,404,429 2,387,899 - 2,436,629 2,675,295 25,479 Interest Rate 3.40%Parking 3,515 2,702 3,360 - 2,702 3,000 Constant 5.322%Entrance / Community Fee 29,000 23,792 16,000 - 23,792 25,000 238 Debt Service 696,088$ Second Person 116,439 88,816 74,200 - 88,816 90,000 857 Debt Coverage Ratio 1.52 Other Income 15,896 13,151 352 - 13,151 15,000 143 Interest Only Pmt 444,720$ Gross Operating Income 2,549,937 2,532,890 2,481,811 - 2,565,090 2,808,295 26,746 Interst Only Period 3

EXPENSESR E Taxes 118,345 113,561 117,000 - 113,561 215,000 2,048 Insurance 48,471 56,535 72,000 - 56,535 56,535 538 Water / Sewer 43,675 41,844 23,748 - 41,844 41,844 399 Gas 7,100 6,286 14,297 - 6,286 6,286 60 Trash 19,761 25,929 33,341 - 25,929 25,929 247 Electric 128,774 122,525 136,946 - 122,525 122,525 1,167 Total Utilities - - - - - - - Cable 36,337 37,939 39,346 - 37,939 37,939 361 Pest Control 10,315 7,270 15,720 - 7,270 7,270 69 Landscaping 31,521 35,702 18,700 - 35,702 35,702 340 Maintenance / Repairs 90,233 98,015 87,196 - 98,015 105,000 1,000 Meal Supplies / Supplies 506,182 506,695 504,028 - 506,695 506,695 4,826 Wages & Payrol Taxes 399,396 398,976 334,537 - 399,000 399,000 3,800 PPP Loan Forgiveness - (76,960) - - - - - Management Fee 93,600 94,100 93,600 - 102,604 4.0% 112,332 1,070 Advertising 72,753 37,856 21,476 - 28,000 28,000 267 Furniture & Equipment 6,172 8,295 1,448 - 8,295 8,295 79 Activity Expense 15,012 6,261 3,844 - 6,261 6,261 60 Administration / Telephone 34,648 38,585 40,497 - 38,000 38,000 362 Reserves - - - - - Total Operating Expenses 1,662,295 1,559,414 1,557,724 - 1,634,461 1,752,613

Per Unit 15,831 14,852 14,835 - 15,566 16,692

Net Operating Income 887,642 973,476 924,087 - 930,630 1,055,682 Debt Service - - - - - -

- - - - - - Cash Flow 887,642 973,476 924,087 - 930,630 1,055,682

Real Estate Tax Information: 2021 Assessed Value: 941,325 Rate/$1000: 120.64 Value: 8,557,500$ Account: R188131010 Tax Amount: $113,561 Tax Dist: Per Unit: 81,500$

Proposed FinancingProforma Going-In

Annual Property Operating Data

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Click below to view Edmond Economic Abstract

https://www.edmondchamber.com/

Click below to view Edmond at a Glance

https://www.eeda.com/eeda-abstract/

47

Click below to view Oklahoma City at a Glance

http://www.okcchamber.com/

http://issuu.com/okcchamber/docs/datasheet_2015-may?

e=1518993/31729052

Click below to view Oklahoma City Chamber

Click below to view Oklahoma City Welcome Guide

https://issuu.com/okcchamber/docs/2016_welcome_guide?e=1518993/35183085

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Mike Buhl CRRC Oklahoma City 3750 W. Main Street, Suite 112 Norman, OK 73072 405-360-5966 buhl@crrc.us

Darla Knight CRRC Tulsa 1138 South Elgin Tulsa, OK 74120 918-557-5966 darla@crrc.us

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OKLAHOMA REAL ESTATE COMMISSION

What You Need to Know About Broker Services

A real estate broker may work with one or both parties to a real estate transaction. The Oklahoma BrokerRelationships Law (Title 59, Oklahoma Statutes, §858-351 – 858-363) allows a real estate firm to provide brokerageservices to both parties to the transaction. This could occur when a firm has contracted with a seller to sell their propertyand a prospective buyer contacts that same firm to see the property. If the prospective buyer wants to make an offer onthe property, the firm must now provide a written notice to both the buyer and seller that the firm is now providingbrokerage services to both parties to the transaction.

Oklahoma real estate brokers have mandatory duties and responsibilities to all parties in a real estatetransaction. These duties and responsibilities shall be described and disclosed in writing prior to signing a contract tosell, purchase, lease, option or exchange real estate. These duties and responsibilities are to:

Treat all parties with honesty and exercise reasonable skill and care.

Receive all written offers and counteroffers, reduce offers or counteroffers to a written form upon request ofany party to a transaction and present timely all written offers and counteroffers (unless specifically waived inwriting by a party).

Timely account for all money and property received by the broker.

Disclose information pertaining to the property as required by the Residential Property Condition DisclosureAct.

Comply with all requirements of The Oklahoma Real Estate License Code and all applicable statutes andrules.

Keep confidential information received from a party or prospective party confidential unless written consent isgranted by the party, the disclosure is required by law, or the information is public or becomes public as theresults of actions from a source other than the broker. Confidential information includes:

o That a party is willing to pay more or accept less than what is being offeredo That a party or prospective party is willing to agree to financing terms different from those offeredo The motivating factors of the party or prospective party purchasing, selling, leasing, optioning or

exchanging the propertyo Any information specifically designated as confidential by the party unless such information is public.

A broker has additional duties and responsibilities only to a party for whom the broker is providing brokerageservices. These duties and responsibilities shall also be described and disclosed in writing prior to signing a contract tosell, purchase, lease, option and exchange real estate. These duties are to:

Inform the party in writing when an offers is made that the party will be expected to pay certain costs,brokerage services costs and approximate amount of the costs.

Keep the party informed regarding the transaction.

If a broker intends to provide fewer brokerage services than those required to complete a transaction, the brokershall provide written disclosure to the party for whom the broker is providing services. The disclosure shall includea description of those steps in the transaction that the broker will not provide and state that the broker assisting the otherparty in the transaction is not required to provide assistance with these steps in any manner.

Disclosure of these duties and responsibilities is required in writing. The duties and responsibilities disclosed by thebroker shall be confirmed in writing by each party in a separate provision, incorporated in or attached to the contract topurchase, option or exchange real estate.

Services provided to a tenant do not automatically create a broker relationship. When a broker provides brokerageservices to a landlord under a property management agreement, the services provided to the tenant by the broker shallnot be construed as creating a broker relationship between the broker and the tenant unless otherwise agreed to inwriting; however, the broker owes to the tenant the duties of honesty and exercising reasonable skill and care.

This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission.

OREC BROKER SERVICES INFORMATION (11-2013)

For more information, visit www.orec.ok.gov