Loss-To-Lease Burnoff: New ownership has the opportunity to take advantage of organic NOI growth through loss-to-lease burnoff. Recent leases are currently renting for over $54 per unit more than in-place leases. Ownership will have the potential to increase yield with no additional capital costs.
Room To Grow Rents: Cottages at Bear Branch is currently 93.75% occupied with rents well below market value. Nearby properties with similar vintage are achieving over $150+ on 1BD and $270+ on 2BD units.
Proven Value-Add Opportunity: 42 units have been renovated with stainless-steel appliances, laminate countertops, modern paint schemes, luxury vinyl wood flooring, a modernized lighting package, paneled doors, refurbished kitchen cabinetry fronts with stainless steel hardware, and new plumbing fixtures. Studio renovated units are achieving a $70 premium, 1BD/1BA units are achieving a $144 premium, 2BD/1BA units are achieving a $134 premium, and 2BD/2BA units are achieving a $170 premium. New ownership will have the opportunity to complete the renovation on the remaining 22 units to potentially increase NOI.
Major $1.04 Million Renovation: Current ownership has spent over $1.04 million renovating the asset, including interior renovations, improved roofing, painting exteriors, a new dog park, a new maintenance shed, new asphalt, improving landscaping, new signage, improving roofs, upgrading exterior lighting, improving HVAC, new gutters, upgrading the pool, new washer/dryers, and new waste containers.
Other Income Opportunity: Current ownership is not charging a washer/dryer fee. This presents an opportunity for new ownership to implement a fee and potentially increase NOI.
Desirable Zip Code With High Barrier To Entry: The average single family sale price in the 37130 zip code is $379,900 with home sales up to $1.25 million in the last 12 months. Over the last 5 years, there has been a 57.6% increase in average home sale price.
Nearby Middle Tennessee State University: Cottages at Bear Branch is located within 5 minutes from Middle Tennessee State University. With an enrollment of 22,084 and 2,221 jobs, MTSU is the 3rd largest university in the state of Tennessee. The university has an economic impact of over $1.428 billion across the state.
High Quality School System: Tenants at Cottages at Bear Branch will have access to one of Murfreesboro’s best school districts, including Oakland High School and Oakland Middle School, which are rated 7/10 and 6/10 respectively (greatschools.org).
Rutherford County Developments: Since 2019, TNECD has supported 15 economic development projects resulting in 1,800 jobs and $194 million in capital investment.
$2.8 Billion Airport Expansion: Cottages at Bear Branch is located 35 minutes from Nashville International Airport, which is in progress on a $2.8 billion expansion plan which will end in 2028. The renovation will include more parking, larger baggage claim and ticketing areas, a 200,000 SF lobby, new international facilities, a hotel, 90 new shops and restaurants, and more gates. In the next 20 years, BNA passenger traffic will nearly double from 18 million to more than 35 million.
$1.35 Billion Oracle Job Announcement: Oracle announced a new campus hub which will bring 8,500 jobs with an average salary of $110,000/year to Nashville, the largest job announcement in Tennessee history. In addition to all the jobs created, Oracle is building a $1.35 billion riverfront campus on the Cumberland River. Oracle also said over 11,500 ancillary jobs would be created plus another 10,000 temporary jobs through construction and other support services.
Additional Nashville Developments: In recent years, TNECD has supported 65 economic development projects in neighboring Davidson County resulting in more than 25,000 job commitments and approximately $3.2 billion in capital investment. Highlights include:
Nashville’s Attractive Employment Base: Nearly 50,000 Rutherford County residents commute into Nashville for work. Nashville is home to dozens of companies that employ over 1,000 people, highlighted by:
Nashville Is A Top MSA: Due to its rapidly growing population, jobs, and economy Nashville has been highly ranked in a number of categories, including:
THIS CONFIDENTIALITY AGREEMENT (“Agreement”) is made and agreed to by The Kirkland Company (“Broker”), exclusive listing broker for the Property, and (“Buyer”) regarding the sale of the property known as Cottages at Bear Branch (“Property”) located in Murfreesboro, Tennessee. The obligation of confidentiality undertaken pursuant to this Agreement shall survive the terms of the Broker’s listing agreement with the Owner.
BUYER HAS REQUESTED information from Broker for the purpose of evaluating a possible acquisition of the Property. The Owner of the property has instructed Broker to deliver information concerning the Property, much of which is highly confidential, only to those potential purchasers who sign this Agreement. To receive an Offering Memorandum (“Offering Memorandum”) please read, sign and return this Confidentiality Agreement to Broker. 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 Buyers 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 Seller and therefore are subject to variation.
THEREFORE, THE PARTIES AGREE, in consideration of the covenants and agreements contained herein, as follows:
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 Murfreesboro, Tennessee and known as Cottages at Bear Branch (“Property”).
NOW THEREFORE, the parties agree, in consideration of the covenants and agreements contained herein, as follows: