The ownership objectives in the Property will be to
(1) increase rental revenue and effectively manage costs;
(2) distribute annual cash flow starting at 7.05% with increases;
(3) provide stable cash fl ow with potential for capital appreciation;
(4) improve property management and operations;
(5) improve the overall condition and appearance of the interior and exterior of the Property;
(6) and prepare the Property to be sold in approximately ten years while continually evaluating the market to try to maximize value for the Tenants in common.
There is no guarantee that the business plan will be successfully executed,that the Property’s value will be enhanced or that the Property will be sold in the time period described above. There can be no assurance that the projected distributions will be paid during the holding period of the Property.
The Property currently has a lower average rental rate per unit compared to comparable properties in the surrounding Columbus area. With focused management, a renewal and rent growth program, the Property Manager believes rental rates can be increased without completing any site renovations. However, the Property Manager is planning a capital interior and exterior renovations program, under which it is anticipated to achieve an average per unit market rent growth of $124 per unit, or 14.74%, over the next four years. With additional programs and a strong focus on expense control and customer service, revenues are targeted to grow by approximately an additional 2.21% per year for years five through ten of ownership of the Property.
The Property will also undergo exterior improvements and common area improvements, including the following:
• Upgrade the furniture and carpet, paint and replace the light fi xtures in the clubhouse
• Landscaping to control the soil erosion at the lakes
• Repair and replace the fountains
• Upgrade the landscaping throughout the Property
• Resurfacing the asphalt on the parking lots
• Repair the irrigation at the entrance to the Property
• Resurface the landings and stairwells in the buildings that are exposed to the elements
• Resurface and repave the tennis and basketball courts
• Purchase additional furniture for the pool area