Refurbished, tenanted and income generating apartments located close to Charlotte, in the city of Gaffney, South Carolina, USA.
Just moments from Limestone College and its 3,500 enrolled university students, the development already has a 5-year tenant agreement in place from the College President. In fact Chandler Oaks already has a waiting list of students wanting to move in as soon as occupancy is available; as currently the development is running at a 100% occupancy rate.
Investing starts from only $30,660 for a 1-bedroom apartment which can give purchasers up to 17.33% returns per annum on invested capital based on the financed investment scenario.
Financed Investment Scenario
|Deposit amount 60%||$30,660|
|Amount to finance 40%||$20,440|
|4% guaranteed return for 5 years||$6,132|
|Management companies 40% contribution||$20,440|
|Accumulative return over 5 years||$26,572|
|Return on invested capital||86.66%|
In addition to offering great returns, the management company pays the outstanding 40% up front to the lawyers escrow account before closing. This means that for an investment of just $30,660 you can purchase a property valued at $51,100 and there is nothing more to pay as the management company pays the remaining balance in order to obtain the right to lease the property for the next 5 years. Not only this but they will cover all maintenance, management and property taxes, and you will also receive a preferential cash return of 4% on invested capital per annum.
Cash Investment Scenario
|Deposit amount 60%||N/A|
|Amount to finance 40%||N/A|
|7.6% guaranteed return for 5 years||$19,420|
|Management companies 40% contribution||N/A|
|Accumulative return over 5 years||$19,420|
|Return on invested capital||38.00%|
* 86.66% is the total return accumulated from the net rental income plus the 40% from the management company contribution; over a 5 year period on the cash deposited.
** Returns are before income tax.
Fully refurbished to the highest standard
A considerable investment has been made with the refurbishment to all of the 100 apartments that are distributed over 32 one and two story buildings.
The exteriors, built with concrete block walls are solid in their construction, including the replacement of roofs built to withstand all weather conditions
The highest standards including new windows, electrical wiring, plumbing, air-conditioning, and internal walls. Open plan living areas pre-wired for cable television, modern kitchens complete with key appliances, new modern bathroom suites, separate bedroom areas for privacy and walk-in closets for additional storage feature throughout the apartments.
Perfectly located near transportation links, attractions, shopping and office parks, Chandler Oaks offers highly attractive apartments with competitive features and amenities including:
- Student social area
- On-site security
- Beautifully landscaped
- Close to shopping and entertainment facilities
- Emergency maintenance
- On-site laundry facility
- Professional management team
- Near public transportation routes
- 15 minute walk to limestone college
Chandler Oaks apartments are designed as homes rather than student accommodation. This means that they are spacious compared to typical pods found on other student developments.
This makes the apartments ideal for shared living and there is no covenant over the development 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.
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 throughout the USA, Europe and Asia.
Their experience includes the construction of new homes, apartments and resorts as well as refurbishment of a historic grade II listed hotel originally designed by Garibaldi, along with listed residential property.
Chandler Oaks is currently the only property that the developer has refurbished specifically for student residency, due to the requirement of the ever-expanding Limestone College, which is only 15 minutes 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.
Charlotte is the place
Charlotte is the 17th largest city in the USA and is still growing. The area’s world-class infrastructure and vibrant, expanding economy has made it increasingly popular amongst businesses and homeowners, making it the perfect place to invest in property.
With 291 of the Fortune 500 companies represented in one way or another in Charlotte (including 17 Fortune 500 companies headquartered in the area), it is perhaps not surprising that Charlotte has the 4th fastest moving job market in the USA and was named the “Best place for business and careers” by Forbes magazine.
Bank of America is headquartered in Charlotte, which has played a major part in making it the second biggest banking city in the USA. However, banking isn’t Charlotte’s only business. The region has recently become a hub for energy companies earning it the nickname “The New Energy Capital”. The energy sector employs over 26,400 people with more jobs announced each day. Other business sectors well represented in Charlotte include aerospace, life sciences, film and motorsports and the area continues to grow.
Since 2000 over $33 billion has been invested in Charlotte, which is estimated to bring over 20,000 jobs to the area. According to Ronnie Bryant, president and CEO of the Charlotte Regional Partnership: “When you talk with people whose companies have moved or expanded in Charlotte, you’ll hear the same thing over and over again. Our region has outstanding accessibility, a talented workforce and a business-friendly climate.”Business is booming in Charlotte, which is attracting more investment and continuing to improve the already fast moving jobs market. As more and more people move to the area to make the most of the low unemployment rate and brilliant facilities, demand for property is increasing and beginning to overtake supply. Demand for housing in Charlotte and the surrounding areas continue to grow at a phenomenal pace. This is driven by a number of factors including:
- The cost of living in Charlotte is 9% lower than the national average (according to payscale.com).
- Charlotte has the 4th fastest job market in the USA.
- House prices in Charlotte and the surrounding area are 23% below the national average.
- Rents in the area increased 6.4% in 2014.
- Charlotte is the USA’s second biggest financial center.
- Bank of America is headquartered in Charlotte.
- New and expanding businesses have invested more than $33 billion in the region since 2000, creating nearly 150,000 jobs.
- Chiquita Brands International has moved their global headquarters to Charlotte bringing over 400 jobs to the area.
- Apple has recently built a $1 billion state-of-the-art data center in the area. In addition Apple will invest millions more on a 4.8-megawatt fuel cell facility that, along with a 40-megawatt solar farm on site, will help the facility generate more than half of the electricity it needs.
- Rockwood Lithium has recently opened its Global Technical Center in the area.
- Companies such as Lowe’s, SPX, Duke Energy and Goodrich call the region home..
- International companies such as Michelin, Toshiba, Hitachi and Electrolux have major operations in Charlotte.
- More than 900 international companies have a presence in the region, the largest concentration of foreign-owned businesses between Washington, D.C. and Atlanta.
- Charlotte has built significant industry clusters in aerospace, life sciences, energy, film production and motorsports.
- Charlotte Douglas International Airport is the world’s sixth-busiest airport with over 700 departures a day to more than 135 destinations.
- Named “Best place for business and careers” by Forbes Magazine.
The developer has purposely chosen the Charlotte area due to its economic growth and increasing population which 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.
Get into Gaffney
Finding fame as the hometown 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.
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 downtown 20 acre park.
Gaffney is a desirable area 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 23.6% in the last year (Feb 2014 – 2015) with the median price of a home now $70,300 and rates the real estate market very healthy at 7.8 out of 10.
Why invest now?
With higher household wealth, a buoyant economic market and banks now willing to lend, the IMF forecasts for 2015 a healthy 3.6% growth, the highest rate amongst the world’s advanced economies.
According to the latest Home Price Index Survey from Corelogic national home prices are expected to rise 5.3% from January 2015 to January 2016, with home-purchase mortgage applications reaching an all time high of 49.10% in January of 2015 according to the Mortgage Bankers Association.
In addition to a fast paced sales market, the rental sector is thriving, with the US apartment vacancy rate falling by 4.1% in Q1 2015 according to real estate research firm Reis Inc. The combination of record high rents and positive outlook for 2015 is making real investors ever more enthusiastic about investing in US real estate.
Higher education remains the aspiration for many Americans, with the USA home to some 4,140 establishments. The 2014/2015 educational term saw 21 million students attend US colleges and universities according to the National Centre for Education, making it one of the most active and established student housing markets in the world.
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). Now a mainstream global asset class in its own right, student 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.
It really couldn’t be simpler. We have taken into account the fact that many of our clients are international investors so have made the process one that can be done virtually from your armchair.Step 1
Select a unit that suits your budget and investment criteria. We will then prepare a reservation agreement for you to sign and return along with a copy of your passport and a recent bill or bank statement confirming your residential address for Anti Money Laundering rules. Then you will need to make the transfer of the reservation deposit to Steltzner Law client escrow account, who will be acting as the third party intermediary for this transaction.Step 2
Steltzner Law will then prepare the purchase contract, management agreement, warranty deed and any other corresponding documents that will then be sent to you for signing.
Sign all the agreements and return them to Steltzner Law.Step 4
Send the balance of your purchase and closing fees to Steltzner Law client escrow account minus the reservation deposit you have already paid.Step 5
Within three days Steltzner Law will complete the purchase and the deed will be filed with the Cherokee County Register of Deeds and once recorded you will receive the deed.Step 6
Your rental income will now start to accumulate and you will receive the net amount every quarter.
The Development: 100 student apartments, perfectly located close to Limestone College in Gaffney, South Carolina
The Properties: 32 x one-bedroom apartments. 68 x two-bedroom apartments
Tenure: In perpetuity leasehold (no end date to leasehold).
Tenant: Contractual agreement with AAA tenant Limestone College to rent properties for at least the next 5 years
Investment: Guaranteed annual income on all properties.
Warranty: Any shortfall in annual Income is underwritten by Carolinas Properties Portfolios (company with over $4.5m worth of assets)
Management: South Carolina Land & Property LLC manages the properties. SCL&P ensure the property is continually managed to obtain maximum income. If returns are not achieved Carolina Properties Portfolio is legally obliged to make up any short fall.
- Student accommodation
- Refurbished to new like state
- Invest from only $30,660
- 1-bedroom apartmentas from only $51,100
- 2-bedroom apartments from only $77,350
- Guaranteed underwritten yields
- Development running at 100% occupancy
- Developer resale option in year 6 at 100%
- Just 15-minute walk to Limestone College
- Limestone College agreement to rent apartments for at least the next 5 years
- Close to Charlotte, a financial hub of America
- No covenant on the property enforcing it to only be used by students
- Completely managed hands off investment