Gaffney, South Carolina, USA

Transcription

1 Gaffney, South Carolina, USA

2 LEFT BRAND NEW FULLY REFURBISHED STUDENT APARTMENTS Introducing Chandler Oaks Chandler Oaks is a collection of fully refurbished 1 and 2 bedroom apartments located in the city of Gaffney, South Carolina, USA. Just moments from Limestone College and its 3,500 enrolled university students, Chandler Oaks already has a 5 year tenant agreement in place from the College President for the 100 apartments. Chandler Oaks already has a waiting list of third year students waiting to move in as soon as occupancy is available. With starting prices from just $49,000 for a 1 bed apartment up to a maximum price in phase 1 of $77,000 for the largest 2 bed apartment. An 8% NET yield is warranted and guaranteed until Annually adjusted NET returns of up 10%+ are realistically projected.

3 Spacious student living Chandler Oaks apartments are designed as homes rather than student accommodation so are spacious compared to typical student pods. They are ideal for shared student living with open plan living areas pre-wired for cable, modern kitchens with key appliances, new bathroom suites as well as separate bedroom areas for privacy and additional storage. There is no covenant over the property so although the apartments will be used as student accommodation they can in the future be used by young executives and business couples because of the easily commutable distance to Charlotte, North Carolina. The 1 bedroom apartments cover 450 sq ft on average and the 2 bedrooms, an average of 685 sq ft. Apartment Amenities Wi-Fi Typical layout of a 1 bedroom apartment Typical layout of a 2 bedroom apartment Extra Storage Available Well Equipped Kitchens Heat and Air Conditioner Cable Ready Refrigerator Cooker

4 Location, location, location Perfectly located near transportation links, attractions, shopping and office parks, Chandler Oaks offers highly attractive apartment homes with competitive features & amenities including: Student Social Area On-site Security Beautifully Landscaped Shopping And Entertainment Facilities Close By On-site Laundry Facility Professional Management Team Near Public Transportation Routes Adjacent to To Limestone College A half hour commute to Charlotte, North Carolina

5 February marks two straight years of year-over-year gains in national prices across the United States Anand Nallathambi, President and CEO of CoreLogic Why invest in US real estate? Why now? With higher household wealth, a recovering housing market and banks more willing to lend, the US economy is shaking off the lows of the 2007/8 financial crisis and moving in a positive direction once again. The IMF, in its World Economic Outlook, forecasts a healthy 2.8% growth for 2014, the highest rate amongst the world s advanced economies, rising to 3% for The 10-City Index of US House Prices 110 Indeed as spring approaches, it seems that the US real estate market thaw is well and truly underway. The average US property value rose 12.2% in February 2014 year on- year according to the latest CoreLogic Home Price Index with home-purchase mortgage applications climbing 13% in March 2014 according to the Mortgage Bankers Association In addition to a fast paced sales market, the rental sector is booming also with the US apartment vacancy rate falling by 4% in Q according to real estate research firm Reis Inc. The combination of record high rents and the best Sterling US Dollar exchange rate seen for 3 years is making international investors ever more bullish about investing in US real estate. 80 Regionally, real estate hotspots such as Charlotte, North SOURCE Carolina, just 45 minutes from Chandler Oaks, are emerging. According to the latest Standard & Poor s Case-Shiller index, home prices in the Charlotte-area in October 2013 posted their biggest annual gain in 26 years, climbing by 8.8% from a year previously. Confidence in Charlotte is so high in fact that Fitch Ratings assigned the coveted AAA rating to the city in March 2014 with the city s property tax revenue a key rating driver. SIX

6 LEFT GEOGRAPHIC LOCATION OF CHANDLER OAKS Get into Gaffney! Finding fame as the home town of Frank Underwood, the lead character in the hit TV series House of Cards played by Kevin Spacey, the city of Gaffney has been catapulted into the spotlight. This city is known as the Peach Capital of South Carolina with The Peachoid, a 135-foot water tower, becoming one of the region s most recognisable landmarks. The city is located 45 minutes from the financial hub of Charlotet, North Carolina (and its international airport) and 40 minutes from Greenville, South Carolina. With the Commercial Historic District listed on the National Register of Historic Places, Gaffney retains a small town charm with numerous churches, a variety of shops including the Prime Outlets with over 80 brand name stores and a Farmers Market, numerous restaurants and a new 20 acre park under development downtown. Gaffney is a desirable city in which to live with the real estate market on the up. According to the latest data from Zillow, Gaffney home values have increased by 5.7% in the last year (Feb ) with the median price of a home now $132,000. SEVEN

7 LEFT GAFFNEY, HOME TO LIMESTONE COLLEGE An educated investment choice: Student accommodation Higher education remains the aspiration for many Americans with the US home to colleges or universities saw 17.4 million students attend US colleges and universities according to the National Centre for Education Statistics, Digest of Education Statistics. Over $2 billion worth of student accommodation transactions were made in the US in 2011 alone. Jones Lang LaSalle (JLL), 2012 With many college students choosing to live away from home, often for the first time, the student accommodation sector is vast, estimated to be worth some US$200 billion globally (JLL, 2012). Now a mainstream global asset class in its own righst,t udent accommodation has attracted institutional and individual investors alike due to the counter-cyclical nature of the sector as higher education enrolments have consistently grown during periods of economic downturn. In many locations, such as Gaffney, the supply of new accommodation has struggled to keep pace with the surge in enrolments and the shortfall of suitable accommodation has led to high occupancy rates and consistent rental growth. Limestone College, Gaffney As well as Hollywood actress Andie MacDowell calling Gaffney home, this city is also the location of Limestone College. The now co-educational, arts college was established here in 1845 by English born scholars. Limestone College s total enrolment is now more than 3,500 students making it the largest private, regionally accredited institution in South Carolina as well as the third oldest. With growing enrolment and limited accommodation on campus, Chandlers Oaks, just a stone s throw away, presents the ideal student accommodation option.

8 SUMMARY OF THE INVESTMENT AND THE PROCEDURE There are no limitations or restrictions whatsoever on non residents buying property in the US. You purchase the property directly from the owner, Chandler Oaks LLC. You enter into a 5 year management and tenancy agreement with South Carolina Land & Property Company LLC (SCL&P). They become your tenant and they sub-lease to the University. They look after everything to do with the properties, 24/7 on-site management and security (cameras etc), maintenance, paying all bills, (insurance, maintenance fund, staffing etc), and regular apartment inspections. They pay the rent to you with a guarantee of a minimum of 8% pa, quarterly and there is an annual reconciliation with full accounts and any rental income after costs in excess of the 8% is paid at that point and is projected as taking the full yield up to 10% + NET. SCL&P have a 5 year contract with the adjacent AAA rated Limestone University, so there is no possibility of vacancies and there is a 2.5% annual increase in the rental paid by the University. This contract will roll-on year by year after year 5, without the guarantee, with no probability of it not being renewed every year as the University need the accommodation for students and staff. These are full apartments, unlike most student accommodation, 1 and 2 bedrooms with 1 or 2 bathrooms, living room and kitchen. Furthermore, you are able to sell it at any time and you may sell it to a non student. This is particularly interesting as Gaffney is within easy commuting distance of Charlotte, North Carolina, the second biggest financial centre in the US outside of New York, so you have plenty of opportunities if you wish to sell. If you were to keep it for five years, which is when the guarantee runs out and you were unable for any reason, to sell it on the open market, the management company has a legally binding obligation to buy it back from you for an amount equivalent to 112% of the purchase price, so that is the absolute worst case scenario, your downside is covered. However, in 2014 Charlotte NC had a AAA rating from Standard & Poor s Case Shiller Index, the most respected property index in the US. They said : Home prices in the Charlotte area, rose in 2013 by 8.8%, the highest gain in 26 years The rent is absolutely guaranteed, by the University to SCL&P and by SCL&P to you with addition of a professional Warranty Company s guarantee, which is a common practice in the US. PROCEDURE The way forward is very simple, you merely complete the reservation form and send it to the address on the form and send the deposit of only $1,000 to the lawyers insured client trust account who s address is also on the reservation form. The lawyers will respond with the necessary documentation and answer any questions you may have with the contracts. I remain available at any time to answer any questions you may have

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