Repositioned Asset After Major CapEx Spend: Current ownership has spent over $5.4 million at The Social Block and over $1.9 million at The Block upgrading the interiors, exteriors, landscaping, and amenities package.
Excellent Amenities Package: The properties offer its tenants an excellent amenities package, including:
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 $33 per bed more than in-place leases at The Block and over $16 per bed more than in-place rents at The Social Block.
Rent Growth Opportunity: Both properties are over $300 per bed below rent of nearby student properties. New ownership will be able to increase rents and capitalize on the demand to potentially increase NOI.
Additional Value-Add Opportunity: Multiple value-add opportunities exist for new ownership, including:
Excellent Location: The properties are in a prime location, less than half a mile from campus, and within 1 mile of major retail and dining demand drivers, including Chick-fil-A and Starbucks.
Top Ranked, Large, Growing University: Mississippi State has a total student enrollment of 23,086 and has seen enrollment growth for seven consecutive years, far outpacing the national average.
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 The Block and The Social Block (“Property”) located in Starkville, 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: