GENERATIONAL OPPORTUNITY: Forest Park has been built, owned, and managed by the same family since its construction in the mid-1970’s, making this the first opportunity to purchase this asset in approximately 45 years.
VALUE-ADD OPPORTUNITY: New ownership will have the opportunity to add value to the property by renovating unit interiors as well as the building exteriors, common areas, signage, grounds, parking lot, and amenity package.
RENT GROWTH OPPORTUNITY: Average Asking Rent at Forest Park is $730 below the Average Asking Rent of the nearby Legacy Village Apartments. By implementing a value-add program at Forest Park, new ownership is afforded an opportunity to increase rents and compete more closely with this nearby comp. Additionally, submarket rents are anticipated to grow by 11.1% in 2022 and 5.4% in 2023, according to CoStar projections.
BUILD LEASING OFFICE: One of the 80 units (F108, a 1BD unit) is currently being used as a Leasing Office. New ownership could consider building a new leasing office and bringing this unit online.
NEWER ROOFS, WINDOWS, & UNDERGROUND PIPES: The property’s roofs were replaced between 2015-2022, with the last 2 roofs to be replaced as part of an insurance claim in process. The windows were replaced in 2013, and all new underground water pipes were laid within the last two years.
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 $71 per unit more than in-place leases.
PROXIMITY TO DEMAND DRIVERS: Forest Park is centered around variety of major demand drivers and recent job announcements, including:
$1.4 BILLION AIRPORT EXPANSION: The property is located near 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.
$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.
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 Forest Park (“Property”) located in Springfield, 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: