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 $112 per unit more than in-place leases.
Room to Grow Rents: Average Effective Rent for nearby properties is renting at over $200+ per unit higher than Legacy at Beach Club. Market rents are anticipated to grow by 8.2% in 2022 and 3.4% in 2023 and have had annual growth of 8.9% in the past year, according to CoStar.
Renovated Unit Leased for Significant Premium: 1 two-bedroom unit has been renovated and recently leased for $1,550, a $400 rent premium. The renovated unit includes a screened porch, new paint, updated countertops, vinyl flooring, updated lighting, and faux wood blinds. New ownership will have the opportunity to complete the renovation on the remaining 219 units to potentially increase NOI.
Multiple Debt Options: New ownership will have the opportunity to evaluate the property and choose to either assume prior ownership’s fixed rate debt or obtain new financing on the deal.
New RUBS Opportunity: Current ownership recently implemented a flat rate RUBS system. As of the 11/21/22 rent roll, only 18 units are being charged the flat rate fee. New ownership will have the opportunity to fully implement the RUBS program and potentially increase NOI by $87,120.
Outstanding School System: Legacy at Beach Club is zoned for 3 top Harrison County schools, which are all ranked 8/10 or higher (greatschools.org).
#2 Largest Metro in Mississippi: Gulfport-Biloxi-Pascagoula (GBP) is the second-largest metro in Mississippi, behind the state capital of Jackson. The largest employer in the state, Ingalls Shipbuilding, operates in this region. In addition, the region has grown 7.4% since 2020 and has an average cost of living that is 17.4% less than the US average.
$1.2 Billion Entertainment Development: Universal Music is developing a $1.2 billion hotel & casino entertainment destination. The resort will bring over 2,500 permanent jobs and 1,000 construction jobs. It will feature 1,150 hotel rooms, 12,000 seat entertainment venue, 18-hole golf course, new marina, and celebrity restaurants.
2nd Largest Air Force Training Base: Keesler Air Force Base has a $1.03 billion per year economic impact on Mississippi and provides over 11,100 jobs to civilian and military personnel. It is the 2nd largest Air Force technical training base and is one of the largest employers in South Mississippi.
Proximity to Nearby Demand Drivers: Tenants will have quick access to major demand drivers, including:
Access to Harrison & Jackson County Major Employers: Tenants have access to over 144,359 jobs within a 40-minute radius, 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 Legacy at Beach Club (“Property”) located in Long Beach, Mississippi. 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: