The South East Memphis Portfolio is comprised of Hickory Farm Apartment Homes (200 units) and The Crossings at Fox Meadows Apartments (184 units). The properties were built in 1985 and 1973, respectively and have a long history of institutional ownership. Collectively, the project consists of 384 units at a $22 million purchase price. It also includes a $4,000/unit renovation package within 90% of the unit interiors in the first 2 years, achieving average monthly rent premiums of $125/unit. We have identified approximately $500/unit in annual expense savings based on our operation of other similar assets within the market.
INVESTMENT HIGHLIGHTS & PROJECTIONS
- 11% Cash on Cash Returns
- 2.1x Equity Multiple in 6 Years
- Strong Locations and High Occupancy
- Clear Value-Add Strategy
- Both Hickory Farm and The Crossings are located less than 3 miles from over 1.7 million square feet of Class A office space, retail corridors and minutes away from I-240, Memphis’ primary interstate loop.
- Memphis is experiencing the most development activity it has seen in many years with development projects exceeding $2.9 Billion currently in progress or the approval stage.