Proven Value-Add Opportunity at Attractive Basis: 68 units have been renovated or partially renovated with new appliances, upgraded HVAC, electrical, & plumbing, resurfaced/replaced tubs, new flooring, paint, hardware, fixtures, blinds, vanities, countertops, and cabinets. Upgraded units are achieving a $125-$200 rent premium, and rent comparables and high occupancy suggest units could be pushed to $900 per month. New ownership will have the opportunity to complete the renovation on the remaining 47 classic units and 10 partially renovated units to potentially increase NOI.
Major $1.1M Capex Spend: Current ownership has spent $1.1 million renovating both properties including: new parking lots at both properties, all new decks at Oak Grove, some new decks at Malabu Heights, new signage and branding at Oak Grove, upgraded landscaping, new exterior paint at both properties, recently replaced roofs (2018-19), water shut-off lines, and a new laundry room and office at Oak Grove. Interior renovations include upgraded electrical panels, new refrigerators, dishwashers, microwaves, flooring, paint, hardware, fixtures, blinds, vanities, countertops, cabinets, and upgraded HVAC.
Income Upside: Current Ownership has installed Washer/Dryer connections in 5 units at Oak Grove, and these units are achieving a $25 premium. New Ownership has the opportunity to install the connections across all units at each property and start a Washer/Dryer rental to tenants as well. Market Comparables suggest suggest units could potentially achieve $50 – $75 in premiums for Washer / Dryer Connections. A Cable/Internet fee and an increased RUBS recovery could also create additional revenue.
Access To Nearby Retail: Oak Grove & Malabu Heights are less than 15 minutes from two major shopping malls, including:
Lexington Development News: Lexington is sprawling with development that will be delivered in the next couple years, including:
Nearby University Of Kentucky: Oak Grove and Malabu Heights are located less than 5 minutes from University of Kentucky. With an enrollment of 32,710 and 15,000+ jobs, UK is the largest university in the state of Kentucky. The university has an economic impact of over $873 million across the state. Over 1,900 jobs were created by the university in Fayette County, and over 4,500 across the state of Kentucky.
Area Demand Drivers: Other considerable demand drivers in Lexington area include:
World Renowned City: Lexington is known worldwide as “The Horse Capital of the World” as the city is surrounded by over 400 horse farms. The city is home to Keeneland Race Course which is the top ranked Thoroughbred racetrack in North America and attracts millions of visitors annually. Additionally, the equine industry in Kentucky has a $3.4 Billion economic impact and has generated 80,000+ indirect and direct jobs.
THIS CONFIDENTIALITY AND BROKERAGE AGREEMENT ("Agreement") is made and agreed to by you ("Prospective Buyer") for the benefit of THE KIRKLAND COMPANY ("Broker"), with respect to certain real property ("Oak Grove and Malabu Heights") located in Lexington, Kentucky.
BACKGROUND:
1 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 buyer 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 Owner and therefore are subject to variation.
NOW THEREFORE, the parties agree, in consideration of the covenants and agreements contained herein, as follows:
By submitting this form, you have acknowledged, read, and agreed to this above Confidentiality and Brokerage Agreement.
THIS CONFIDENTIALITY AND BROKERAGE AGREEMENT ("Agreement") is made and agreed to by and between THE KIRKLAND COMPANY ("Broker"), and "Prospective Buyer" with respect to the sale of certain real property located in Lexington, Kentucky and known as Oak Grove and Malabu Heights (“Property”).
NOW THEREFORE, the parties agree, in consideration of the covenants and agreements contained herein, as follows: