Interior Value-Add Opportunity: Patchen Place features varying levels of finishes throughout the property. New ownership will be able to bring all units to the same uniform renovation level with new flooring, appliances, counters, and cabinets as needed in each unit to potentially increase NOI.
Loss-to-Lease Burnoff: New ownership has the opportunity to take advantage of organic NOI growth through loss-to-lease burnoff. Recent leases on average between the floor plans are currently renting for over $46 per unit more than in-place leases.
Room to Grow Rents: Nearby properties are renting for over $200+ per unit higher than Patchen Place. Submarket rents are anticipated to grow by 4.7% in 2022 and 2023 and have averaged an annual gain of 10% in the past year, according to CoStar.
Amenities Value-Add: The property has plenty of open space for new ownership to improve the amenities package, such as repurposing the tennis court into a sport court or dog park, adding a grilling/picnic space, building a playground, or repaving the pool deck.
Access to Nearby Retail: Patchen Place is less than 10 minutes from two major shopping malls, including:
Nearby University of Kentucky: Patchen Place is located less than 10 minutes from University of Kentucky. With an enrollment of 31,536 and 14,000 jobs, UK is the largest university in the state of Kentucky. The university has an economic impact of over $750 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.
Proximity Area Demand Drivers: Other considerable demand drivers in Fayette County include:
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 Patchen Place (“Property”) located in Lexington, Kentucky. 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: