Attractive Assumable Debt: New ownership will have the opportunity to take over an attractive loan from the current owner, which includes 5 years of Interest Only and an interest rate cap of 4.65% for 2 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 $54 per unit more than in-place leases.
Room to Grow Rents: Greenways at Marion rents sit significantly below Memphis rents. New ownership will be able to increase rents and capitalize on the demand to potentially increase NOI. Additionally, the submarket vacancy rate is over 4% lower than the Memphis market vacancy rate, according to CoStar.
Interior Value-Add Opportunity: New ownership will have the opportunity to add value to the property by updating the interiors, such as new LVT flooring, upgraded countertops, cabinet fixtures, or refacing old cabinets.
Recent CapEx Spend: Current ownership has spent over $1.4 million on various upgrades on the exterior of the property including improving the clubhouse, installing a new playground, putting in new signage, putting new asphalt in the parking lot, rehabbing the pool, replacing rotted wood, installing new gates, and improving landscaping.
$5.6 Billion Ford Motor Company Job Announcement: Ford announced a new campus hub which will bring 5,800 jobs. Over 27,000 direct and indirect jobs will be created to help support the site’s operations. Ford expects to create around $1.02 billion in annual earnings and will contribute $3.5 billion each year to the state of Tennessee’s GDP.
$2.3 Billion ST. JUDE’S Investment: St. Jude’s Children’s Research Hospital has increased its operational budget $1.4 billion dollars in addition to adding over 2,300 jobs within the next 5 years. The hospital also recently announced plans to increase funds for construction, renovation, and capital to $2.3 billion from $1.9 billion.
Major Southland Gaming Casino Expansion: Southland Gaming and Racing in West Memphis, AR is under construction on a $320 million dollar expansion that will add 400 – 500 jobs to the community. Southland’s expansion is expected to have an economic impact of $144 million per year. In addition, the expansion also includes a 300 room hotel for guests.
Memphis’ Attractive Employment Base: Memphis is home to dozens of companies that employ over 1,000 people, highlighted by:
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 Greenways at Marion (“Property”) located in Marion, Arkansas. 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: