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INVESTMENT OFFERING: Heatherwood Apartments CENTRAL, SC

INVESTMENT OFFERING

  • 82 Units
  • Purchase Price: $3.5M
  • Total Capital Raise: $1,715,800
  • Average Annualized Return (AAR): 16.3%
  • Internal Rate of Return (IRR): 13.8%
  • Return on Capital (ROC): 1.65x
  • Projected Investment Period: 4 Years
  • Minimum Investment: $50,000
  • Maximum Investment: $400,000

2.8 Miles to Clemson University

Heatherwood Place is an 82 unit, value-add opportunity, built in 1970 and located in the heart of Clemson, SC, part of the booming Greenville, SC metropolitan statistical area (MSA).

It is comprised of:

  • 50 - Two Bedroom/One Bath Townhouses
  • 970 sq. ft.
  • 32 - Two Bedroom/One & One Half Bath Townhouses
  • 1,000 sq. ft.

Our plan with this asset is to provide significant upgrades to the interiors and exteriors, as well as add amenities to the property (currently has none). Traditionally we spread our interior renovations over a 3 year period. Maintaining a high level of occupancy and improving the tenant base are our top priorities. 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.

Heatherwood Apartments (Subject Property)

Cap-Ex Budget: $1,200,800

WE PLAN TO MAKE FULL USE OF OUR ROBUST Cap-Ex BUDGET

  • Replace Mansford roof/asphalt shingles with either vinyl cedar shake siding or a board and batten product (see example below)
  • Patch, Seal, and Stripe the parking lot
  • Roofing repairs as needed (roofs are flat TPO roofs)
  • Pressure wash current brick exterior
  • Update landscaping and improve curb appeal
  • Rebrand the property and improve signage
  • Add amenities to the +/-2 acres of unused green-space (this includes a dog park, sand volleyball court, bocci ball area, and corn hole)

Mansard Roof Transformation Example

Mansard Roof (BEFORE)
Mansard Roof (AFTER)

RE-BRANDING

COMPARATIVE SUMMARY

We are confident in our ability to push rents from the current $595 to $769 over 3 years. Less than 500 yards away is a similar "C" Class, 1970's vintage, 62 unit comparable asset, called Issaqueena Townhomes. The units are almost identical in size and layout. They are getting $760 for their 2/1’s and $785 for their 2/1.5’s TODAY and are at 100% occupancy. 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. In addition, Windwood Garden Apartments (the newest addition to our portfolio) is located only 12 miles away, which will allow for significant operational efficiencies.

Issaqueena Townhomes

Heatherwood Apartments - VIDEO

WHY WE LIKE THIS INVESTMENT:

GROWING MARKET

  • Population change since 2000: +39.5%
  • Estimated median household income in 2020: $41,664 (it was $26,892 in 2000)
  • Estimated median house or condo value in 2020: $242,789 (it was $129,900 in 2000)
  • Future job growth over the next ten years is predicted to be 31.9%
  • Clemson started a program in 2016 where they were targeting a 2% annual growth in enrollment. They are on pace to hit this target this coming year

ABILITY TO PUSH RENTS

  • Comparable properties are getting our 3 year projected rents TODAY with 100% occupancy

$1,200,800 Cap-Ex BUDGET

  • INTERIOR
  • LVP FLooring
  • Painting
  • Renovated Kitchens - Shaker Cabinets, New Hardware, Tile Backsplash, Black Appliances, Updated LED lighting, new sinks, Low-Flow Faucets
  • Renovated Bathrooms - New Vanities, Reseal Tubs, New Low-Flow Faucets & Toilets
  • EXTERIOR
  • Replace Mansford roof/asphalt shingles with either vinyl cedar shake siding or a board and batten finish
  • Repair roofs as needed (roofs are 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
  • Add amenities to the +/-2 acres of unused green-space (this includes a dog park, sand volleyball court, bocci ball area, and corn hole)

UNDERWRITIING

Use this link to watch Eric Shirley (Director of Acquisitions) walk through the underwriting in detail.

PROJECTED RETURNS

A $100,000 Investment will return $165,007 in 4 years

  • Average Annual Return (AAR): 16.3%
  • Internal Rate of Return (IRR): 13.8%
  • Equity Multiple: 1.65x

INVESTMENT STRUCTURE

Ownership Split:

  • 80% INVESTORS - Class "A" Limited Partners
  • 20% MANAGING MEMBERS - Class "B" Four Oaks Capital
  • 12% Performance Hurdle: Upon Class "A" Members receiving a 12% Average Annual rate of Return (AAR) on their initial investment, the ownerships of the company shall change to a 50% Class "A" and 50% Class "B" ownership
  • The projected returns already include the 12% hurdle

Class "A" Limited Partners projected returns:

  • Average Annual Return (AAR): 16.3%
  • Internal Rate of Return (IRR): 13.8%
  • Equity Multiple: 1.65x
  • Projected Hold: 4 Years
  • Minimum Investment: $50,000
  • Maximum Investment: $400,000

This is an investment summary provided to prospective investors and others. 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. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. 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