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INVESTMENT OFFERING - LIVE Florence APARTMENTS FLORENCE, SC

This is an investment summary provided to prospective investors and others. This document is confidential and may not be reproduced or redistributed. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Forward-looking information contained herein is subject to certain inherent limitations. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. All investments have inherent risk. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.

INVESTMENT OFFERING

  • 144 Units
  • Purchase Price: $8.0M
  • Total Capital Raise: $3.05M
  • Average Annualized Return (AAR): 17.4%
  • Internal Rate of Return (IRR): 16.1%
  • Return on Capital (ROC): 1.53x
  • Projected Investment Period: 3 Years
  • Minimum Investment: $50,000
  • Maximum Investment: $600,000
Conveniently located at the intersections of I-95 and I-20

Florence's economy has a large share of workers concentrated in trade, transportation and utilities, as well as healthcare, which is the downtown submarket's primary industry. Ruiz Foods announced a $79 million expansion that aims to provide 700 new jobs for the metro and Honda of South Carolina recently invested $45 million in an expansion adding roughly 250 jobs. GE Healthcare and McCall Farms have also announced plans for expansions. The professional and business services sector has also posted strong gains over the past year, thanks to ongoing hiring from the metro's largest employer, Assurant Group.

The market is blossoming into a minor medical hub, housing GE Healthcare, TRICARE and Patheon, which has created higher paying jobs for the labor force.

Only 1.5 Miles to Historic Downtown Florence

LIVE FLORENCE APARTMENTS

PROPERTY OVERVIEW

144 Units

LIVE Florence Apartments (318 ½ Royal Street) is a garden style apartment complex comprised of 1, 2, 3 & 4 Bedroom Units with 275 grade level parking spaces (1.9/unit). The asset was constructed in 1972 and is situated on a 10.98-acre lot only 1.5 miles to Historic Downtown Florence.

The property has undergone numerous renovations in 2019 and 2020. Currently, 60 of the 144 units have been renovated and roofs have all been replaced within the past 7 years. In addition, ~80% of the HVAC units are less than 5 years old. The community offers several on-site amenities including a dog park, a laundry facility and a rental office.

The asset provides investors with tremendous upside due to the in-place rents, which are currently well below market rate. Current occupancy is at 98%.

We have received extremely favorable lending terms, which include 2 years of Interest Only payments, 80% Loan to Cost, and an interest rate of 3.7%.

The property is ideally situated in the industrial section of Florence, allowing for numerous employment opportunities and provides ample growth opportunities. Much of the city’s main workforce is within the industries of medicine/healthcare, manufacturing and agriculture. Nearby Mcleod Medical Center (1.2 miles away) is one of the states largest hospital systems and employs over 8,500 people. In addition, Florence is located centrally to the newest "Inland Port" in South Carolina, capitalizing on 2 of the largest interstate systems in the country, I-20 & I-95.

FLOOR PLANS

1 BEDROOM
2 BEDROOM
3 BEDROOM
4 BEDROOM

BUSINESS PLAN OVERVIEW

Our plan with this asset is to provide basic upgrades to both the interiors and exteriors, while improving curb appeal and laying the foundation for an improved resident base.

Traditionally we spread our interior renovations over a 3 year period and this asset is no different. Maintaining a high level of occupancy and improving operational efficiencies are the first orders of business.

We start our interior upgrades with any current vacant units. As those units are updated, we then offer them to any current tenants that we are looking to keep, but at current market rental rates.

PROPERTY MANAGEMENT

FICKLING MANAGEMENT COMPANY

Located in Macon Georgia, Fickling Management Services is one of the few distinguished real estate firms to be accredited by the Institute of Real Estate Management of the National Association of Realtors. We present peace of mind to our clients while they prosper from our extensive resources. Fickling Management Services offers a comprehensive process of managing investment properties that help clients improve control over costs, improve value through marketing, gain consistency in procedures & results, and ensure confidence in their decisions.

Property Management's overview upon completion of Due Diligence:

As the VP of Fickling Management Services, I am very hands-on during the acquisition process. While conducting the on-site due diligence at LIVE Florence, I immediately recognized opportunities to increase the ROI. Not only by unit renovations, rental increases, and amenity additions but by creating a sense of community for the current residents and the residents to come. LIVE at Florence is situated within a charming town that the Fickling team was amazed by immediately. Marketing the property's unique features and improvements to come throughout the town will allow us to grow our relationships and build a strong community presence. I am incredibly excited to look back a year from now and see how far LIVE Florence has come.

-KRISTIN SANDERS | VP of Multifamily Management | FICKLING

Cap-Ex Budget: $1,300,000

WE PLAN TO MAKE FULL USE OF OUR ROBUST Cap-Ex BUDGET
  • INTERIOR
  • LVP Flooring
  • Painting
  • Renovated Kitchens - Shaker Cabinets, New Hardware, New Appliances, Updated LED Lighting, New Sinks, Low-Flow Faucets
  • Renovated Bathrooms - New Vanities, Reseal Tubs, Low-Flow Faucets & Toilets
  • Remediation of current wiring to reduce insurance burden
  • EXTERIOR
  • Removal of Awnings to provide a more modern, contemporary aesthetic
  • Repave the parking lot
  • Pressure wash current brick exterior
  • Replace windows as needed
  • Update landscaping and improve curb appeal
  • Rebrand the property and improve signage
  • Installation of playground

RE-BRANDING

One of our last investment was recently rebranded with input from our investor base (see below)

We'll do the same here at LIVE Florence

COMPARATIVE SUMMARY (RENT)

COMPARATIVE SUMMARY (RENT)

We are confident in our ability to push rents from the current $653 to $808 over 3 years.

Within a 3 mile radius, there are numerous "C" Class properties that we can use as accurate comparables. While the units vary slightly in size & layout, the average rents that they are commanding TODAY are what we have projected for rents in YEAR 3.

Our value-add strategy allows for superior interiors, while adding competitive amenities. This will provide ample opportunity for our property management company to execute our business plan.

WHY WE LIKE THIS INVESTMENT:

98% Current Occupancy

ABILITY TO PUSH RENTS

  • Comparable properties are getting our 3 year projected rents TODAY with 96% average occupancy

$1,300,000 Cap-Ex BUDGET

  • INTERIOR
  • LVP FLooring
  • Painting
  • Renovated Kitchens - Shaker Cabinets, New Hardware, New Appliances, Updated LED lighting, new sinks, Low-Flow Faucets
  • Renovated Bathrooms - New Vanities, Reseal Tubs, New Low-Flow Faucets & Toilets
  • EXTERIOR
  • Roofing replacement as needed (roofs are a mix of pitched and flat TPO roofs)
  • Patch, Seal, and Stripe the parking lot
  • Pressure wash current brick exterior
  • Update landscaping and improve curb appeal
  • Rebrand the property and improve signage
  • Perimeter fencing with gated access to control who comes in and out
  • Replacement of current awnings with powder-coated option
  • Improved playground & new covered grilling locations

UNDERWRITIING

PROJECTED RETURNS

A $100,000 Investment is projected to return $152,090 in 3 years
  • Average Annual Return (AAR): 17.4%
  • Internal Rate of Return (IRR): 16.1%
  • Equity Multiple: 1.53x
  • Quarterly Distributions are scheduled to begin at the 6 month mark

INVESTOR WEBINAR

INVESTMENT STRUCTURE

Ownership Split:

  • 75% INVESTORS - Class "A" Limited Partners
  • 25% MANAGING MEMBERS - Class "B" Four Oaks Capital
  • GP Team plans to invest $500,000 in this opportunity

Class "A" Limited Partners projected returns:

  • Average Annual Return (AAR): 17.4%
  • Internal Rate of Return (IRR): 16.1%
  • Equity Multiple: 1.53x
  • Projected Hold: 3 Years
  • Minimum Investment: $50,000
  • Maximum Investment: $600,000

Investment Timeline:

  • June 16th - Investor Webinar - In-depth review of MARKET & UNDERWRITING
  • June 18th - Investment open to funding commitments via Investor Portal
  • July 1st - PPM (Private Placement Memorandum) sent out via Investor Portal for E-Signature
  • July 9th - Funds wired by
  • July 15th - Projected closing

If you'd like to invest, please email us utilizing the button below and we'll send you a notification via your investor portal

If you haven't set up your investor portal, you may use the link below to begin

The video below walks you through the PORTAL investment process

This is an investment summary provided to prospective investors and others. This document is confidential and may not be reproduced or redistributed. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Forward-looking information contained herein is subject to certain inherent limitations. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. All investments have inherent risk. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.

This investment offering is intended for individuals or corporations with a pre-existing relationship with Four Oaks Capital LLC and its entities