Proven Value-Add Program: Currently, 7 of Somerset Court’s 28 units have been renovated with new paint and new vinyl plank flooring and are achieving a rent premium of up to $250 on recent leases. New ownership can renovate the remaining units to potentially increase NOI.
Additional Upside: Somerset Court offers new ownership the opportunity to further add value to the property by adding black or stainless steel appliances, painting the kitchen & bath cabinets, new light fixtures, upgraded unit tech, or keyless entry.
Room to Grow Rents: Somerset Court is currently 100% occupied and has a history of being highly occupied. Market rents are anticipated to grow by 10.9% in 2022 and 5.4% in 2023, according to CoStar projections. Rents have increased by an impressive 17.0% over the past year, which significantly exceeds the average annual growth of 4.5% over the past decade.
Home-Style Living Option for Increasing Rental Market: Somerset Court offers its tenants home-style living including private off street parking, open floor plans, large outdoor deck and patio, and a neighborhood setting. These features could serve as a home-buying substitute, as student debt and rising home values are preventing people from buying homes.
Booming Rental Class: According to a report from the Joint Center for Housing Studies of Harvard University, renting has become more common among the age groups and family types traditionally more likely to own their own home, leading to a boom in townhome rental demand. Additionally, According to Pew Research, the millennial generation, which accounts for roughly half of U.S. households with children, are more likely to rent than own a home compared to previous generations.
Local Access to Major Retail: Within 10 minutes, tenants will have convenient access to over 2 million SF of major malls and national retailers without having to go through Louisville, including Target, Kroger, Kohl’s, Meijer, Lowe’s, Sam’s Club, TJ Maxx, Burlington, Hobby Lobby, Bass Pro, Dick’s Sporting Goods, At Home, Dillard’s, and many more.
Proximity to River Ridge Commerce Center: Somerset Court tenants are within 10 minutes of River Ridge Commerce Center, a world-class business and manufacturing park that has over 10,400 jobs onsite and supports over 18,000 regional jobs.
Louisville Employers Expanding: Multiple major employers are in expanding throughout Louisville, including:
Proximity to Staple Louisville Employers: Somerset Court is a convenient commute to Louisville’s largest and most significant employers, including:
Nationally Ranked Metro: Louisville has gained national attention due to its growing economy and lifestyle, including:
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 Somerset Court (“Property”) located in Sellersburg, Indiana. 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: