Loss-to-Lease Burnoff: New ownership for both properties have the opportunity to take advantage of organic NOI growth through loss-to-lease burnoff. Recent leases are currently renting for over $189 per unit more than in-place leases.
Room to Grow Rents: Nearby properties are renting for over $300+ per unit higher than Bridgewater Retreat. Submarket rents are anticipated to grow by 11.6% in 2022 and 5.4% in 2023 and have averaged an annual gain of 10.9% in the past year, according to CoStar.
Value-Add Opportunity: Current ownership has renovated roughly 30% of the units with updated flooring, paint, and appliances. Additionally, roughly 90% of the units will have upgraded toilets, components and new door and cabinet fronts. New ownership will be able to complete the renovation on the remaining units to potentially add value.
Amenities Value-Add: Both properties sit on large pieces of land with Bridgewater Retreat sitting on 8.9 acres, and Bristol Square sitting on 9.0 acres. Each property has ample space for new ownership to add value to the properties by adding amenities, such as a dog park, playground, grilling area, or sport court.
Proximity to Kingsport Major Employers: Residents at Bridgewater Retreat have access to many of the city’s major employers, such as:
Convenient Location to Demand Drivers: Bridgwater Retreat allows tenants quick access to many of Kingsport’s best demand drivers, including:
Highly Rated School System: Residents of Bristol Square are zoned for Tennessee High School, which is rated 8 out of 10 for College Readiness according to GreatSchools.org and has earned a 2020 College Success Award based on its success in preparing students for college and ultimately career.
Hard Rock Hotel and Casino Bristol: Hard Rock is opening a Casino in Bristol, Virginia less than 10 minutes from Bristol Square. Hard Rock has invested over $400 million dollars to build this venture, impacting the local economy significantly. The Casino, when fully operational in 2024, is expected to bring 3 to 4 million visitors per year to the area with the operation expected to create somewhere between 1,100 and 5,200 jobs (Cardinal News).
Proximity to the Fourth Largest University in the State: East Tennessee State University has 13,713 students enrolled with plans to increase enrollment to 18,000 by 2025. With 75% of its students living off-campus, the increased enrollment will provide steady demand to the area’s rental market.
Accessibility to Tri-Cities Demand Drivers:
Tri-Cities: The Tri-Cities (Bristol, Johnson City, and Kingsport) have a total population of 516,729 people. Residents of Kingsport are within 45 minutes from the Tri-Cities’ 221,000 jobs (U.S. Bureau of Labor Statistics). This CSA is the fifth-largest in Tennessee, among which Johnson City is the largest city. The largest sectors within these areas include Healthcare & Social Assistance, Manufacturing, and Retail.
THIS CONFIDENTIALITY AND BROKERAGE AGREEMENT ("Agreement") is made and agreed to by you ("Prospective Buyer") for the benefit of THE KIRKLAND COMPANY ("Broker"), with respect to certain real property ("Bristol Square and Bridgewater Retreat") located in Bristol / Kingsport, Tennessee.
BACKGROUND:
1 The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyer may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and therefore are subject to variation.
NOW THEREFORE, the parties agree, in consideration of the covenants and agreements contained herein, as follows:
By submitting this form, you have acknowledged, read, and agreed to this above Confidentiality and Brokerage Agreement.
THIS CONFIDENTIALITY AND BROKERAGE AGREEMENT ("Agreement") is made and agreed to by and between THE KIRKLAND COMPANY ("Broker"), and "Prospective Buyer" with respect to the sale of certain real property located in Bristol / Kingsport, Tennessee and known as Bristol Square and Bridgewater Retreat (“Property”).
NOW THEREFORE, the parties agree, in consideration of the covenants and agreements contained herein, as follows: