CHANDLER OAKS. Gaffney, South Carolina, USA

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1 CHANDLER OAKS 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 63 of the apartments and the balance will be used to rent directly to third year students and young professionals. In fact Chandler Oaks already has a waiting list of third year students waiting to move in as soon as occupancy is available. Starting prices are from just $50,000 for a 1 bed apartment up to a maximum price in phase 1 of $77,000 for the largest 2 bed apartment. The properties will be fully managed by an existing local operator with monthly rent of $550 for a 1 bedroom and $730 for a 2 bedroom. An 8% NET yield is warrantied until 2020 by Carolinas Properties Portfolio LLC, an asset backed company that organise management and warranties. NET returns of up 10% can realistically be expected. ONE

3 LEFT AFTER FULL REFURBISHMENT Fully refurbished to the highest standard The 100 one and two storey units of Chandler Oaks are solid in their construction, with exterior concrete block walls built to withstand all weather conditions. The units were individually surveyed before the development was purchased. Internally they have been fully refurbished to the highest standards. Each property has been completely renovated including the replacement of roofs, windows, electrical wiring, plumbing, air-conditioning, and internal walls. Brand new kitchens complete with and additional storage also feature throughout the apartments. The total cost of the renovation works is in the region of $30,000 per apartment; almost double that spent by other companies who renovate and sell similar properties to investors. Each condominium unit will have its own deed and title, with the land owned by the association, which in turn is owned by the condominium owners. TWO

4 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 and separate bedroom areas for privacy and additional storage. There is no covenant over the property so although for the coming years the apartments will be used as student accommodation they can in the future be used by anyone. The 1 bedroom apartments cover 450 sq ft on average and the 2 bedrooms, an average of 685 sq ft. Apartment Amenities Extra Storage Available Heat and Air Conditioner Cable Ready Refrigerator Cooker Typical layout of a 1 bedroom apartment Typical layout of a 2 bedroom apartment THREE

5 Location, location, location 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 Emergency Maintenance On-site Laundry Facility Professional Management Team Near Public Transportation Routes FOUR

6 The Developer The developer of Chandler Oaks has been involved in the property development and management industry for over 30 years having owned, constructed and managed over 1,000 properties in the USA, Europe and Asia. Their experience includes the construction of new homes, apartments and holiday resorts as well as refurbishment of a historic grade II listed hotel originally designed by Garibaldi and his architects along with listed residential property. Chandler Oaks is currently the only property that the developer has refurbished Limestone College just a ten minute walk away. However, they are also currently redeveloping two other residential projects nearby, creating a total portfolio of some 280 apartments within a 45 minute radius of the city of Charlotte. The developer has purposely chosen the Charlotte area due to its economic growth, including city and airport expansion, industrial enlargement and the new iconic building being constructed by Donald Trump. Charlotte s increasing population means that a waiting list of tenants is already in place for the apartments in all three of the developer s projects due to their superior quality. The developer s future intentions are to continue purchasing and redeveloping more property in the Charlotte area and other parts of the Carolinas, including properties in holiday areas popular with the US and Canadian vacation market, which offer fantastic investment potential. FIVE

7 February marks two straight years of year-over-year gains in national prices across the United States Anand Nallathambi, President and CEO of CoreLogic The 10-City Index of US House Prices % growth for 2014, the highest rate amongst the world s advanced economies, rising to 3% for 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, with the US 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. SOURCE Regionally, real estate hotspots such as Charlotte, North 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 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

8 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. 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 ABOVE THE PEACHOID House of Cards puts the spotlight on Gaffney and makes The Peachoid a star! SEVEN

9 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 some 4,140 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 the student accommodation sector is vast, estimated to be worth some US$200 billion 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. stone s throw away, presents the ideal student accommodation option. EIGHT

10 Summary Additional Costs Student Accommodation Completely refurbished properties including new windows, roofs, walls, electrics, plumbing, kitchens, bathrooms etc. Price ranges from just below $49,000 for a 1-bed apartment to just over 10% expected yield. income will be paid at year end after accounts have been reviewed). 15 minute walk to Limestone College. Agreement for Limestone College to rent apartments for 5 years. Currently used as student accommodation however no covenant on the property enforcing it to only be used by students. Investing in a growing market Required (Total $1,090) Attorney Fees: $525 - This includes Title Search, Recording Fees: $15 - This is actual fee that goes to the Register of Deeds. Property Management Setup Fee: $500. Optional