Proven Value-Add: Current ownership has been able to increase rents significantly at Covenant Crossing by renovating unit interiors. These interior unit renovations include granite, new flooring, new lighting, painted cabinets, new hardware, and new appliances. As of February 2023, approximately 43 units have been completely renovated, 33 have been partially renovated, and 10 are in process. Over the last 30 leases, rents have increased by an average of $213 per unit (21%) post-renovation. New ownership has the opportunity to continue this proven value-add program across the remainder of the unrenovated units.
Upside Potential Through Additional Units: Units E-01 & E-02 were previously 4BD units. These 2 units are currently down and are being converted into 4 2BD units, which will create a net gain of 2 units upon completion. For 2 of these 4 units, permits have been obtained, buildout work has been done, and current ownership is awaiting certificates of occupancy. For the other 2 units, permits have been applied for but not received yet. Additionally, the leasing office has been relocated, and the old leasing office space is currently being converted into a 2BD unit, which will also add 1 unit to the property upon completion. A permit for this additional unit has been obtained, demo is almost complete, and buildout work is projected to begin soon. Assuming the remaining permits and certificates of occupancy are received, Covenant Crossing will be a 113-unit property once these projects are completed. Exact square footages of these additional units have yet to be confirmed.
Major $1.4 Million Renovation: Current ownership has invested approximately $1.4 million in recent property renovations, including the aforementioned interior unit renovations and also the net addition of 3 new units (in progress), as well as new roofs on 6 buildings, new paint on exterior, new playground, new grill and pergola, fenced-in yards, a seal & stripe of the parking lot, a dog run, new exterior lighting, a new fitness center, clubhouse, laundry facility, a new office, a package center, new mansard roofs, new landscaping, new fitness center equipment, a new side fence along property, and a new fence around the trash area.
Upside Potential Through Additional Amenity: Covenant Crossing provides the potential to enhance the existing amenities package by adding a turf field or sports/pickleball court or other amenity in the empty space towards the back of the property.
$1.2 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. Oracle also said over 11,500 ancillary jobs would be created plus another 10,000 temporary jobs through construction and other support services.
$1.4 Billion Airport Expansion: Covenant Crossing is located 10 minutes from Nashville International Airport, which is in progress on a $1.4 billion expansion plan. The renovation will include more parking, larger baggage claim and ticketing areas, an expanded concourse, new international facilities, and a hotel. By 2023, BNA passenger traffic will grow from 18 million to more than 23 million.
Additional Nashville Developments: In the last five years, TNECD has supported 55 economic development projects in 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: Nashville is home to dozens of companies that employ over 1,000 people, highlighted by:
Nashville is a Top City: 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 Covenant Crossing (“Property”) located in Nashville, 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:
In connection with your interest in a potential, negotiated acquisition of those certain properties listed in Exhibit A hereto (individually or collectively as the context may require, the “Property”) from [Seller] (individually or collectively as the context may require, the “Company”), you have requested certain information concerning the Property from the Company and its affiliates and its and their respective directors, officers, members, partners, employees, representatives, agents and/or advisors (including without limitation, attorneys, accountants, consultants and financial advisors) (individually or collectively as the context may require, the “Company’s Representatives”). In consideration of furnishing you with the Evaluation Material (as defined herein), the Company requests your agreement to the following: