751 N INDIAN CREEK DRIVE, CLARKSTON, GEORGIA EXECUTIVE SUMMARY 603-UNIT GARDEN-STYLE APARTMENT COMMUNITY IN CLARKSTON (ATLANTA), GEORGIA

Transcription

1 751 N INDIAN CREEK DRIVE, CLARKSTON, GEORGIA EXECUTIVE SUMMARY 603-UNIT GARDEN-STYLE APARTMENT COMMUNITY IN CLARKSTON (ATLANTA), GEORGIA

2 6

3 EXECUTIVE SUMMARY 7

4 NVESTMENT HIGHLIGHTS POTENTIAL QUALIFIED CONTRACT OPPORTUNITY Beginning January 1, 2021, Lakes at Indian Creek is eligible for entry into the Qualified Contract process administered by the Georgia Department of Community Affairs (DCA). The Qualified Contract process allows for potential removal of any existing rent and income restrictions required by the LIHTC LURA currently encumbering the Property. Recent transactions in Clarkston clearly demonstrate value-add upside and removal of the existing LURA will provide for operational and disposition versatility. Average effective rents at nearby renovated communities exceed in-place rents at Lakes at Indian Creek by nearly $240. 8

5 INVESTMENT HIGHLIGHTS LARGE-SCALE, WELL-MAINTAINED FAMILY COMMUNITY Lakes at Indian Creek features 603 units, allowing an Investor to immediately create scale within the submarket or build upon the economies of scale of an existing portfolio. The Property was substantially renovated in 2006 through the LIHTC program and future capital expenses will be minimized due to the relatively young effective age of the Community s major mechanical and building systems. Offering a comprehensive amenity package, Lakes at Indian Creek exhibits many of the community features of its conventional peers. Residents enjoy access to a resortstyle swimming pool and a clubhouse that includes a fully-equipped fitness center and recreation room. The Property also offers an on-site, full-service daycare center that is managed by a third party operator 9

6 NVESTMENT HIGHLIGHTS STRATEGIC LOCATION OFFERING SUPERIOR CONNECTIVITY ROXBORO RD Positioned at the nexus of three major thoroughfares, Clarkston thrives off its comparative affordability and superior connectivity. Interstate-285, US-78, and US-29 provide residents with direct access to Sandy Springs, Decatur, East Atlanta, Athens, and the Greater Atlanta MSA. Georgia State University s Perimeter College and the Emory Orthopaedics and Spine Hospital anchor the Property s immediate submarket. Stone Mountain Park, Emory University, the Center for Disease Control (CDC), and the DeKalb Farmers Market all provide considerable employment opportunities for local residents and will fortify long-term growth throughout the community surrounding the Lakes at Indian Creek. Buckhead 18.8M SF of Class A Office Space 2.7M SF of Core Retail 5K Hotel Rooms LENOX RD NE PERIMETER COLLEGE Virginia Highlands MONROE DR NE BRIARCLIFF RD NE 10 STONE MOUNTAIN PARK FREEDOM PKWY NE Downtown Atlanta MORELAND AVE NE

7 N HAIRSTON RD Brookhaven INVESTMENT HIGHLIGHTS Peachtree DeKalb Airport Northlake Mall 1M SF of Retail BUFORD HWY NE Stone Mountain Industrial Corridor 15M SF of Industrial/Flex Office Toco Hills North Druid Hills LAWRENCEVILLE HWY Emory University Ortho and Spine Hospital In-Patient Spine and Orthopaedic Surgical Center HUGH HOWELL RD CLIFTON RD NE CLAIRMONT RD NE North DeKalb Mall 635K of Retail Indian Creek Elementary PONCE DE LEON AVE LAKES AT INDIAN CREEK Stone Mountain Park Center for Disease Control (CDC) 7,000 Employees $11B In Public Funding and Research During 2015 Clarkston High School Emory University 15K Students $7.2B Annual Economic Impact DeKalb Medical Center N DECATUR RD Perimeter College 5,100 Total Students 1,000 Faculty and Staff $601M Economic Impact SCOTT BLVD Downtown Decatur S CANDLER RD DeKalb Farmers Market COVINGTON HWY Georgia Piedmont Tech S HAIRSTON RD 11

8 NVESTMENT HIGHLIGHTS ABUNDANCE OF CAPITAL FLOWING INTO CLARKSTON Clarkston has garnered significant investor intrigue over the past 24 months. In the past two years alone, a diverse pool of investors has deployed nearly half a billion of capital into Clarkston across 31 multi-housing transactions. This active buyer pool contains a wide array of capital providers including public REITs, fund managers, and private owner/operators. The Lakes at Indian Creek presents investors with the opportunity to invest in one of Atlanta s rapidly expanding submarkets at an extremely attractive going-in basis. Nearly $500M Of Transactions Over the Past 24 Months 12

9 INVESTMENT HIGHLIGHTS PROLONGED EXPANSION FORECASTED FOR ATLANTA Located less than 20 minutes from Downtown Atlanta, Lakes at Indian Creek stands poised to capitalize on the robust expansion of the surrounding MSA. Atlanta was one of only five cities to add 100,000 jobs in 2014 and created an additional 70,000 jobs in Through 2020, population within the MSA is expected to increase by 732,000, the fourth highest projected increase among large US cities. Twenty Fortune 500 Companies have global headquarters in Atlanta and the City s gross metro product is expected to increase by $55 billion over the next five years. 187,000 Jobs created since ,000 Population Increase Through 2020, 4th Highest Projection Among Large US Cities $55 Billion Atlanta s Projected Gross Metro Product Growth Over Next 5 years 20 Fortune 500 Companies With Headquarters in Atlanta 13

10 NVESTMENT HIGHLIGHTS ROBUST APARTMENT FUNDAMENTALS Lakes at Indian Creek s apartment submarket experienced significant effective rent growth in 2015, recording an 8.9% annual increase. Forecasts project rents will increase by an additional 13.2% through Occupancy in the Clarkston/Stone Mountain submarket has increased over 12% in the last five years and is projected to average 93.4% through Furthermore, with no new supply expected to be delivered to the submarket through 2020, the supply-demand balance continues to remain in favor of owners. Clarkston/Stone Mountain Submarket Rental Trends Clarkston/Stone Mountain Supply and Occupancy Trends 8.9% Effective Rent Growth Projected Projected Completions Occupancy Rose Over 12% In Last 5 Years No New Completions Expected through 2020 Occupancy 14

11 INVESTMENT HIGHLIGHTS 15

12 67

13 Transaction Leader DOUG CHILDERS Managing Director Analytical Support MICHAEL FOX Analyst DEREK RICH Analyst Atlanta Austin Boston Carolinas Chicago Dallas Denver Houston Indianapolis Los Angeles Miami New Jersey New York Orange County Orlando Philadelphia Phoenix Pittsburgh Portland San Diego San Francisco Tampa Washington 2016 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit or follow HFF on Twitter at 68 HFF has been engaged by the owner of the Property to market it for sale. Information concerning the Property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.