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 $92 per unit more than in-place leases across the portfolio.
Below Market Rents: Knoxville Portfolio is currently 98.08% occupied with rents well below market value. Nearby properties with similar vintage are achieving roughly $150 on 1BD and $350 on 2BD units.
Fastest-Growing Rents In The Nation: In 2022, Knoxville’s rent growth was 9.6%, which was the highest in the entire nation, according to the National Association of Realtors.
Turnkey Emerson Northshore Asset: Current Ownership at Emerson Northshore spent $1.74 million from 2018-2020. Renovations include exterior doors, a new dumpster, new hallways, exterior painting, exterior plumbing, a recreation area, new washer/dryer venting, window/screen replacement, new appliances, new cabinets, new countertops, new faucets, new carpet flooring, and new tile.
Desirable Emerson Northshore Submarket: Emerson Northshore is located in the 37919 zip code in West Knoxville, one of Knoxville’s most sought after locations.
Amenities Value-Add At Reserve At Third Creek: Reserve at Third Creek sits on 8 acres and has ample space for new ownership to add value to the property by adding amenities, such as a pool, dog park, playground, grilling/pergola area, or fire pit/lounge area.
Liberty View Capex Spend: Current Ownership $319,000 on renovations for Liberty View during 2022. Renovations included new countertops, vinyl flooring, new carpet flooring, interior painting, and exterior painting.
Nearby Oak Ridge Provides $7.2 Billion In Economic Impact: All three properties sit within 30 minutes of Oak Ridge National Laboratory. The US Department of Energy’s Oak Ridge Reservation creates $7.2 billion in economic benefits in East Tennessee as well as supports 43,000 full time jobs. 14,667 jobs are direct jobs created by the Department of Energy and 28,239 are indirect jobs created by lab. In addition, the area is home to scientists are researchers who hold 1,828 Ph. D. degrees, 3,528 master’s degrees, and 6,749 bachelor’s degrees.
$530 Million Dollar Investment: The city of Knoxville has revealed plans to invest $530 million in new housing on The Strip in Knoxville. Included will be 850 residential and 30,000 SF of retail space. During construction, a $751 million economic impact is expected with 3,900 jobs created. Long term, the project will create a $21.5 million impact annually with 275 long-term jobs.
Central To Major Demand Drivers: The Knoxville Portfolio offers its tenants convenient access to some of Knoxville’s largest demand drivers, including:
Proximity To Popular Knoxville Retail: The Knoxville Portfolio is located within 15 minutes of the following major retail centers:
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 Knoxville Portfolio (“Property”) located in Knoxville, 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: