NATIONAL MULTI HOUSING GROUP VILLAGE SQUARE OFFERING MEMORANDUM 27-Unit Value-Add Opportuni ty Clarksville, Tennessee
E xc l u s i v e l y L i st e d B y I NV EST M ENT ADVI SOR P AT C OSG ROVE D +1 615-997-2853 C +1 615-973-5373 pat.cosgrove@marcusmillichap.com I NV EST M ENT ADVI SOR DAVID STOL L ENWERK D +1 615-997-2841 C +1 404-643-8789 David.Stollenwerk@marcusmillichap.com Village Square The Marcus & Millichap Multifamily Advisory Group is pleased to present the exclusive investment offering of the 27-Unit Village Square apartment complex. This exclusive opportunity will allow owners to invest in a Value-Add opportunity just minutes from downtown Clarksville, TN. LIST PRICE Address County Site Size Year Built Year Renovated Residential Units Net Residential Area Pro Forma Cap Rate $1,066,500 105 Walnut St Clarksville, TN 37042 Montgomery 4.6 Acres 1983 N/A 27 15,255 sf 9.91% CAP OFFERING MEMORANDUM
Exclusively Listed By: I NVESTM ENT ADVI SOR P AT C OSG ROVE D +1 615-997-2853 C +1 615-973-5373 pat.cosgrove@marcusmillichap.com I NVESTM ENT ADVI SOR DAVID STOL L ENWERK D +1 615-997-2841 C +1 404-643-8789 David.Stollenwerk@marcusmillichap.com Located One Hour From Nashville Via I-24
O FFERING MEMORANDUM FINANCIA L A NALYSIS
V I L L A G E S Q U A R E R E N T R O L L RENT ROLL SUMMARY FINANCIAL ANALYSIS 6
V I L L A G E S Q U A R E R E N T R O L L RENT ROLL DETAIL FINANCIAL ANALYSIS 7
V I L L A G E S Q U A R E O P E R AT I N G S TAT E M E N T OPERATING STATEMENT FINANCIAL ANALYSIS 8
V I L L A G E S Q U A R E N O T E S NOTES FINANCIAL ANALYSIS 9
V I L L A G E S Q U A R E P R I C I N G PRICING DETAIL FINANCIAL ANALYSIS 10
Established 1785 CLARKSVILLE IS CURRENTLY THE 5 th LARGEST CITY IN TENNESSEE & SET TO SURPASS CHATTANOOGA IN THE NEXT FEW YEARS DUE TO A 13% GROWTH RATE IN THE PAST 5 YEARS. MONTGOMERY COUNTY TN CLARKSVILLE TN POPULATION 189,709 MEDIAN AGE MEDIAN HH INCOME 30.3 $51,528 POPULATION 146,281 MEDIAN AGE 29 MEDIAN HH INCOME $48,675 NUMBER OF EMPLOYEES 75,002 MEDIAN PROPERTY VALUE $148,600 NUMBER OF EMPLOYEES 56,456 MEDIAN PROPERTY VALUE $140,000 MONTGOMERY COUNTY CITY OF CLARKSVILLE
1 2 3 4 THRIVING DEMOGRAPHICS 45% POPULATION GROWTH F R O M 2000 TO 2016 Population has grown from 103,455 in 2000 to 150,287 in 2016. Estimated median household income has grown from $37,548 in 2000 to $51,696 in 2016. CITY: 150, 287 COUNTY: 195,374 MSA: 295,350 OUTSTANDING SCHOOL SYSTEM 18% GRADUATION INCREASE F R O M 78.5% IN 2000 T O 96.5% IN 2015 Clarksville-Montgomery County SchoolSystem serves more than 32,500 students and is ranked #1 for academic growth among the state s largest school districts. S T RONG RETAIL SALES GROWTH 24% RETAIL SALES GROWTH F R O M 2008 T O2015 Dynamic growth means a strong retail landscape in Clarksville-Montgomery County. Rapid growth in population, housing, income, and industry make Clarksville one of the Southeast s most sought after mid- sized cities. STRONG JOB GROWTH 4.61% JOBGROWTH F R O M 2015 T O2016 Clarksville s job growth of 4.61 percent is an increase from 102,105 jobs in 2015 to 106,811 in 2016. CLARKSVILLE, TN
In less than 20 Years Clarksville has announced more than 40 Corporate Expansions & Projects totaling $4.4 Billion ininvestments The State of Tennessee was named State of the Year in 2016 by Southern Business & Development magazine. Among the projects that contributed to Tennessee s number one ranking, Google s investment in Clarksville topped thelist. 7,000 New Jobs $4.4 Billion Invested Annual Payroll $231,238,020 CLARKSVILLE JOB GROWTH
Google 857Acres LG Available Warehousing Available Warehousing - AvailableBuilding Google CargoPartner
TOP EMPLOYERS Clarksville-Montgomery School System Tennova Healthcare # OF EMPLOYEES 4,000 1,150 Trane Company City of Clarksville Austin Peay State University Montgomery County Agero Convergys Akebono Bridgestone Hendrickson Florim Nyrstar Jostens Printing & Publishing Superior Maintenance Co U-Haul Walmart Letica of Tennessee 1,100 1,050 860 850 750 600 500 375 320 287 242 400 513 470 400 315 A more than 10% metro population increase since 2010 has been driven by Millennials. They make up the largest group of people moving in: The 20 34-year-old cohort (the most likely to rent) grew by nearly 10,000 people in the past five years. Like in many other metropolitan areas across the country, population is rising in Clarksville's urban centers while in the outlying areas it remains stagnant or is falling. Since 2010, the population in Clarksville s urban core grew by more than 15%, as more than 8,000 Millennials moved into the submarket. Vacancies are tightening after a period of expansion that followed steady construction throughout the cycle. However, with nothing in the construction pipeline and settling demand drivers, fundamentals are turning a corner. Vacancies among higher-tier assets have historically been higher than lower-tier counterparts: 4 Star properties (which comprise 20% of metro inventory) have averaged 10%since 2000, but as of 18Q1, vacanciesare at 5%.
A horse racing facility operated by Churchill Downs and Keeneland has been proposed for Oak Grove, KY which is part of the Clarksville MSA and just over the state line. Churchill Downs Inc. and Keeneland Association Inc. announced a partnership to propose construction of a state-ofthe-art racing facility in Oak Grove. The proposed facility will feature live horse racing, and historical racing machines which facilitate approved pari-mutuel wagering licensed by the Kentucky Horse Racing Commission. Horse racing is a $4 billion industry in the Commonwealth (of Kentucky) that creates thousands of jobs, strengthens our statewide economy and attracts millions of visitors from around the globe, Churchill Downs CEOCarstanjen said in a news release. The facility should have an impact on the tourism industry in the area, said Keeneland President and CEO Bill Thomason. Not only will these racing facilities strengthen Kentucky s vital horse industry, but just as importantly, they will positively impact the Commonwealth and the local communities by stimulating significant economic growth, generating hundreds of new jobs and enhancing tourism and hospitality, Thomason said in the release.
Tennova Healthcare Clarksville features services in cardiology, emergency medicine, family practice, gastroenterology, general surgery, infectious disease, inpatient rehabilitation center, internal medicine, neonatology, nephrology, neurology, obstetrics/gynecology, oncology, oral/maxillofacial surgery, orthopedics/surgery, otolaryngology, outpatient rehabilitation, pediatrics, plastic surgery, podiatry, pulmonology, radiology, urology, vascular surgery, wound care.
CREATING 100+ FULL TIMEJOBS $600 million Google data center creating 100+ new jobs. Google CEO Sundar Pichai explained why Clarksville was picked as the home for a facility that will disperse information across the globe: Our teams look all across the country to find the best sites for these facilities, Pichai said. Tennessee stood out.
CREATING 1,800+ FULL TIMEJOBS Hosung Suh, Hankook Tire America Corp President: "Tennessee, and Clarksville, were chosen for this facility because of the strong work force here, in addition to the many large automakers that are close by, and the fact that the location is convenient logistically to a large share of the marketplace. 1.5 million-square-foot plant on 469 acres off International Boulevard demonstrates Hankook's "commitment to technology, innovation and growth in North America," officials said, adding the highly automated Clarksville plant will reflect Hankook's latest and most advanced global tire manufacturing technology.
CREATING 600+ FULL TIMEJOBS CLARKSVILLE, TN Aug. 24, 2017 LG Electronics broke ground on its new one-million-square-foot home appliance manufacturing facility in Clarksville, TN. The project, in the heart of Montgomery County, is expected to bring at least 600 fulltime jobs to the area and will accelerate the delivery of LG s innovative, premium home appliances to better meet U.S. consumer demand.
OVERVIEW CLARKSVILLE METRO HIGHLIGHTS DIVERSIFYING ECONOMY Other major industries in the metro include healthcare, government, automotive manufacturing, construction, retail trade and finance. ROBUST POPULATION GROWTH Clarksville is currently the fifth largest city in Tennessee and set to surpass Chattanooga in the next few years seeing a 13 percent growth rate in the past five years. It is hub for millennials and veterans creating a powerful workforce. A key reason it was named by 24/7 Wall St. as the 19 th in the nation for fastest job growth adding more than 4,700 jobs in 2016. The Clarksville MSA, with a population of around 295,350 spans four counties: Montgomery and Stewart in Tennessee as well as Christian and Trigg in Kentucky. Montgomery is the most populous county with 195,374 people where Clarksville serves as the county seat and has 150,287 residents. The metro is located along the north-central border of Tennessee and south-central border of Kentucky. Clarksville is positioned at the joining of the Cumberland River and Red River, which adds to the local economic base and enhances the quality of life. The Fort Campbell military base is positioned in the region another huge economic benefit for the community and helpful for the area s workforce.
O FFERING MEMORANDUM R ENT CO MPS
O N E B E D R O O M R E N T C O M P S BY N E T R E N T One-Bedroom Rents RENT COMPS Sorted by Net Rent Highest to Lowest Property Year Built Unit Type Washer/Dryer Connections SF Market Rent Concessions Adj./Month Utilities Adj./Month Net Rent Net Rent/SF 108 Walnut Street 1983 1 BED 1 BATH 565 $600 $0 $0 $600 $1.06 VILLAGE SQUARE 1983 1 BED 1 BATH 565 $413 $0 $0 $413 $0.73 111 Walnut St 1976 1 BED 1 BATH 565 $363 $0 $0 $363 $0.64 Averages 565 $458 $0 $0 $458 $0.81
O N E B E D R O O M R E N T C O M P S B Y S F N E T R E N T One-Bedroom Rents RENT COMPS Sorted by SF Net Rent Highest to Lowest Property Year Built Unit Type Washer/Dryer SF Market Rent Concessions Adj./Month Utilities Adj./Month Net Rent Net Rent/SF 108 Walnut Street 1983 1 BED 1 BATH 565 $600 $0 $0 $600 $1.06 VILLAGE SQUARE 1983 1 BED 1 BATH 565 $413 $0 $0 $413 $0.73 111 Walnut St 1976 1 BED 1 BATH 565 $363 $0 $0 $363 $0.64 Averages 565 $458 $0 $0 $458 $0.81
V I L L A G E S Q U A R E R E N T C O M P VILLAGE SQUARE 105 Walnut St Clarksville, TN 37042 SUBJECT Total # of Units: 27 Year Built: 1983 Date Surveyed: 8/21/2018 Unit Type # of Units SF Rent Low Rent High Rent Avg. Rent/ SF 1 BED 1 BATH 27 565 $375 $450 $413 $0.73 Total 27 565 $413 Ownership ELAINA ANDERSON Management ELAINA ANDERSON Leasing-Office Phone Number Occupancy (Physical) 100% Occupancy (Pre-Leased) Concessions/Discounts N/A Pet Fees Pet Rent Pricing Method (Fixed or Yieldstar/LRO) Application Fees / Administrative Fees Lease Term Water and Sewer Responsibility TENANT Water and Sewer Billing Method Trash Removal Responsibility TENANT Trash Billing Method Valet or Self-Service Garage Amenities/Notes TENANT PAYS ELECTRIC Status of W/D Connections and Appliances
V I L L A G E S Q U A R E R E N T C O M P 108 Walnut Street 108 Walnut Street Clarksville, TN 37042 1 Total # of Units: 24 Year Built: 1983 Date Surveyed: 8/21/2018 Unit Type # of Units SF Rent Low Rent High Rent Avg. Rent/ SF 1 BED 1 BATH 24 565 $600 $600 $600 $1.06 Total 24 565 $600 $1.06 Ownership PRIVATE OWNERSHIP Management PRIVATE MANAGEMENT Leasing-Office Phone Number Occupancy (Physical) 100% Occupancy (Pre-Leased) Concessions/Discounts Pet Fees Pet Rent Pricing Method (Fixed or Yieldstar/LRO) Application Fees / Administrative Fees Lease Term Water and Sewer Responsibility TENANT Water and Sewer Billing Method Trash Removal Responsibility TENANT Trash Billing Method Valet or Self-Service SELF-SERVICE Garage Amenities COMPLETELY RENOVATED. TENANT PAYS ELECTRIC. Status of W/D Connections and Appliances
V I L L A G E S Q U A R E R E N T C O M P 111 Walnut St 111 Walnut St Clarksville, TN 2 Total # of Units: 16 Year Built: 1976 Date Surveyed: 8/21/2018 Unit Type # of Units SF Rent Low Rent High Rent Avg. Rent/ SF 1 BED 1 BATH 16 565 $325 $400 $363 $0.64 Total 16 565 $363 $0.64 Ownership PRIVATE OWNERSHIP Management PRIVATE MANAGEMENT Leasing-Office Phone Number Occupancy (Physical) 100% Occupancy (Pre-Leased) Concessions/Discounts Pet Fees Pet Rent Pricing Method (Fixed or Yieldstar/LRO) Application Fees / Administrative Fees Lease Term Water and Sewer Responsibility TENANT Water and Sewer Billing Method Trash Removal Responsibility TENANT Trash Billing Method Valet or Self-Service SELF-SERVICE Garage Amenities TENANT PAYS ELECTRIC Status of W/D Connections and Appliances
NATIONAL MULTI HOUSING GROUP VILLAGE SQUARE OFFERING MEMORANDUM 27-Unit Value-Add Opportuni ty Clarksville, Tennessee