Proven Value-Add Market: Comparable properties in the surrounding area have upgraded appliances and flooring and are achieving higher rents (360 Townhomes and Ashton Ridge at West Creek). New ownership has the opportunity to upgrade to stainless steel appliances and vinyl flooring to increase rents and NOI in a market that has proven value-add potential.
High Occupancy Asset: Both properties have maintained low-vacancy rates with occupancy historically in the upper- 90’s.
Rent Growth Opportunity: Properties have rents much lower than comparable properties in the area, which would allow new ownership to increase rents without losing occupancy. In addition, submarket rents are anticipated to grow by 7.6% in 2022 and 5.1% in 2023 according to CoStar projections.
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 $22 per unit more than in-place leases.
Diverse Demand Drivers Base: Clarksville and the surrounding area is home to a diverse set of demand drivers, including:
Significant Capital Infused into Clarksville: Multiple major projects are contributing to the growing economic landscape in Clarksville, including:
3rd Largest Military Base: Fort Campbell has a $10.1 billion per year economic impact for Tennessee and provides over 58,000 direct and indirect jobs.
Top Ranked, Rapidly Growing City: Clarksville has seen rapid population and economic growth and has been highly ranked by multiple publications as a result
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 Highland Park and Sonoma Ridge (“Property”) located in Clarksville, 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: