North Charleston, SC
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The Property consists of 76 town-home style apartment units on 13.16 acres of land in North Charleston, SC. Northlake was originally built in 1984 and has been institutionally maintained and managed by URS Capital Partners.
Northlake is 97.5% occupied as of May 18th, 2018 and is producing approximately $409,000 of in-place Net Operating Income (NOI) annually. Currently, only two of the units have been upgraded and are achieving rent premiums of $75 and $125 a month. Brick Lane has budgeted to renovate 50 of the remaining units by installing a new appliance package, vinyl plank flooring, lighting and fixture package, and washers and dryers. Brick Lane will acquire the Property with long-term, low interest-rate debt financing from Freddie Mac and plans to hold the asset for 5 – 10 years (target hold of 5 years). As shown in the Financial Projections, the Property generates cash-on-cash returns to the Investor of 7.1% annually starting Year 1 of the investment and averages a 10.5% cash-on cash return over the first 5 years. Brick Lane projects an 18.62% IRR and a 2.15x Equity Multiple to the Investor over a 5-Year hold period. The Year 1 debt service coverage ratio (DSCR) is 1.99x, demonstrating the high level of deal stability.
Built in 1984, the Property represents an excellent opportunity to acquire a well-located asset with an attractive unit mix composed entirely of spacious townhome-style units. Brick Lane will leverage the market demand to drive organic rent growth in addition to implementing a significant value-add program to align rents with the submarket. Brick Lane will further take advantage of several online marketing platforms not currently utilized by management to market the units for lease and promote the project to the general public. The Property is positioned for immediate success in a booming submarket with significant rent growth trends, in addition to being located within immediate accessibility to major economic drivers and the area’s premier retail destinations.
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Available to Accredited Investors:
Booming Submarket: Since 2012, the North Charleston submarket has seen 25.4%+ rent growth, driven by heavy population and job growth in the surrounding areas. Despite the recent surge in rent growth, North Charleston’s asking rents are lagging all other submarkets in Charleston County, which demonstrates potential to grow rents at a faster pace than other surrounding submarkets.
Strong Employment Drivers: Charleston has attracted large manufacturing employers in recent years with companies like Boeing, Volvo, and Mercedes. In 2010, the population of Charleston County was estimated at 350,196 people, which increased to 396,484 (13.2% increase) by July 1, 2016, according to the United States Census Bureau. The Property also lies just 2.8 miles from Charleston International Airport (CHS) and Boeing’s 1.2 Million square foot airplane production facility. The Boeing site employs approximately 7,000 people and is one of the largest employment centers in the state of South Carolina.
Close Proximity to Class A Retail: Situated 2.2 miles away from Northlake Townhomes is the Tanger Outlets—providing residents with several retail, dining and entertainment options. North Charleston’s Tanger Outlets is home to 125+ retail stores and is surrounded by other retail, restaurants, and entertainment, which includes a Walmart Supercenter, Sam’s Club, a movie theatre, and over 30 restaurants.
Available to Accredited Investors:
Below are some of the most frequently asked questions about this offering.
The funding deadline is July 17th, 2018.
The first projected distribution is scheduled for October 2018.
Distributions are scheduled to go out on a quarterly basis.
No, this offering is only available to US residents.
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