Investment Highlights
Attractive Assumable Debt with Supplemental Financing Potential: The Lexington presents an attractive opportunity for investors through the assumption of existing debt. The property holds an outstanding balance of $13.344 million at an interest rate of 3.03%. Additionally, 1.5 years of interest-only payments remain, with 9 years left in the loan term. Supplemental debt options may also be explored, offering flexibility for new ownership.
Loss-to-Lease Burnoff: The Lexington offers substantial upside potential through the burnoff of loss-to-lease. Current average in-place rents are $67 below recent lease rates, providing the opportunity to enhance NOI organically as leases roll over.
Proximity to Top-Rated Schools: The Lexington offers tenants access to top-tier educational institutions in Mississippi. Students residing at the property are zoned for Biloxi High School (9/10 rating) and Biloxi Junior High School (8/10 rating), according to GreatSchools.org, making the property an attractive option for families.
Positive Impact of Ingalls Shipbuilding Contract: The nearby Ingalls Shipbuilding, the largest employer in Mississippi, recently secured a $9.6 billion contract with the U.S. Navy to design and build multiple vessels. This long-term contract further solidifies economic stability in the region, creating demand for quality housing options like The Lexington.
Strategic Location Near Keesler Air Force Base: The property is located just 7 minutes from Keesler Air Force Base, which trains 28,000 students
annually and hosts 2,700 daily students. Additionally, the base employs 5,100 active-duty personnel, 1,625 civil service employees, and 2,700 full-time contractors, ensuring a consistent demand for housing in the area.
Thriving Gulfport-Biloxi Metro Economy: The Gulfport-Biloxi Metropolitan Statistical Area (MSA) is the second-largest metro area in Mississippi, with a population of 420,782. It’s 62 miles of Gulf coastline support a dynamic economy driven by tourism, shipbuilding, and defense.
Strong Casino Industry Driving Economic Growth: The region’s 12 coastal casinos generate an impressive $4 billion in economic impact annually and
employ over 37,000 workers statewide. This robust casino industry represents a stable economic driver, further contributing to regional growth.
Key Regional Employers Strengthening Demand: In addition to Ingalls Shipbuilding and the casino industry, the Gulfport-Biloxi MSA hosts a diverse
range of major employers, including:
- Naval Construction Battalion Center: 5,400 active duty
- Chevron USA: 3,500 jobs
- Singing River Health System: 3,500 jobs and 701 beds
- Signal International: 2,250 jobs
- Vision Technologies Halter Marine: 1,700 jobs
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Address:2620 Lejuene Drive
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City, State:Biloxi, Mississippi
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County:Harrison
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Year Built:1995
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Units:190
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Acreage:6
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Average Asking Rent:823
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Average Unit SF:1,263