Chandler Oaks - Anton Tardif

ANDLER CH

The Educated

Investment OAKS

100% Tenanted • 100% Completed • 100% Refurbished

ANDLER CH

OAKS

Introduction Chandler Oaks is a collection of fully refurbished 1 and 2 bedroom apartments located in the city of Gaffney, close to Charlotte, North 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 fully tenanted and running at a 100% occupancy rate. Starting prices are from only $48,671 for a 1-bedroom apartment and $73,644 for the 2-bedroom apartment. The properties are fully managed by an existing local operator with an 8% NET rental yield. Guaranteed until 2020 by Carolinas Properties Portfolio LLC, an asset backed company that organise management and warranties.

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. Exteriors built with concrete block walls are solid in their construction, including the replacement of roofs built to withstand all weather conditions. Internally the apartments have been fully refurbished to the highest standards. Including new, windows, electrical wiring, plumbing, air-conditioning, and internal walls. Brand new kitchens complete with refrigerators and cookers have been installed along with modern bathrooms. Walk-in closets and additional storage also feature throughout the apartments.

Spacious student living Chandler Oaks apartments are designed as homes rather than student accommodation that means that they are spacious compared to typical pods found on other student developments. They are ideal for shared student living, with open plan living areas pre-wired for cable television, modern kitchens with key appliances, new bathroom suites and separate bedroom areas for privacy and additional storage. 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.

Apartment amenities 99 Wi-Fi 99 Extra Storage Available 99 Fully Equipped Kitchens 99 Heating and Air Conditioning 99 Cable Ready 99 Refrigerator 99 Cooker

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Desirable location

The developer

Perfectly located near transportation links, attractions, shopping and office parks, Chandler Oaks offers highly attractive apartment homes with competitive features & amenities including:

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.

99 Student Social Area 99 On-site Security 99 Beautifully Landscaped 99 Shopping And Entertainment Facilities Close By 99 Emergency Maintenance 99 On-site Laundry Facility 99 Professional Management Team 99 Near Public Transportation Routes 99 15 Minute Walk To Limestone College

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 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.

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Charlotte is the place Charlotte is the 17th largest city in the US 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 US. 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: 99 The cost of living in Charlotte is 9% lower than the national average (according to payscale.com). 99 Charlotte has the 4th fastest job market in the USA. 99 House prices in Charlotte and the surrounding area are 23% below the national average. 99 Rents in the area increased 6.4% in 2014. 99 Charlotte is the USA’s second biggest financial center. 99 Bank of America is headquartered in Charlotte. 99 New and expanding businesses have invested more than $33 billion in the region since 2000, creating nearly 150,000 jobs. 99 Chiquita Brands International has moved their global headquarters to Charlotte bringing over 400 jobs to the area. 99 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. 99 Rockwood Lithium has recently opened its Global Technical Center in the area. 99 Companies such as Lowe’s, SPX, Duke Energy and Goodrich call the region home. 99 International companies such as Michelin, Toshiba, Hitachi and Electrolux have major operations in Charlotte. 99 More than 900 international companies have a presence in the region, the largest concentration of foreign-owned businesses between Washington, D.C. and Atlanta. 99 Charlotte has built significant industry clusters in aerospace, life sciences, energy, film production and motorsports. 99 Charlotte Douglas International Airport is the world’s sixth-busiest airport with over 700 departures a day to more than 135 destinations. 99 Named “Best place for business and careers” by Forbes Magazine. The developer has purposely chosen the Charlotte area due to its economic growth, 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.

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Get into Gaffney!

Why invest now?

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.

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.

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.

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 percent in January of 2015 according to the Mortgage Bankers Association.

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 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 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.

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.

Zilliow Home Values

S&P/Case-Schiller US home price

$70k

200

$50k

100

$30k

2010

2015 zillow.com

0

1970

2014 us.spindices.com

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Investment choice

Purchase process

Higher education remains the aspiration for many Americans, with the US 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.

It really couldn’t be simpler. We have taken into account the fact that many of clients are international investors so have made the process one that can be done virtually from your armchair.

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.

Step 1 Select a unit that’s suits your budget and investment criteria. We will then prepare a reservation agreement for you to sign and return a long 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.

Step 3 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.

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Investment scenario

Purchase Price

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

1-Bed

$48,671 $3893.63 $3893.63 $3893.63

$3893.63

$3893.63 $3893.63 $23,361.78 48%

2-Bed

$73,644 $5891.52 $5891.52 $5891.52

$5891.52

$5891.52 $5891.52 $35,349.12 48% Last quarter year 6

* 8% Net return on purchase price ** 112% Developer resale agreement year 6

Total ($) (%)

Minimum ROI 6 years

112%

Fast facts

Investment summary

The Development: 100 student apartments, perfectly located close to Limestone College in Gaffney, South Carolina. The Properties: 32 x one-bedroom apartments. 68 x twobedroom apartments. Tenure: In perpetuity leasehold (no end date to leasehold). No covenant on properties-ability to sell as residential Tenant: Contractual agreement with AAA Limestone College to rent properties for 5 years.

60%

tenant

Investment: Guaranteed 8% net annual income until 2020 on all properties. 10% net forecast annual income. Warranty: Any shortfall in annual Income is underwritten by Carolinas Properties Portfolios (company with over $4.5m worth of assets). Rent: One-bedroom $507.09 (Per Month). Two-bedroom $721.25 (Per Month) Management: South Carolina Land & Property LLC manages the properties. SCL&P ensure the property is continually managed to obtain maximum income. If the 8% net return is not achieved Carolina Properties Portfolio is legally obliged to make up any short fall. The management company provides 24-hour on-site security, including security cameras.

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99 Student Accommodation 99 Recently refurbished to new like state 99 1-bedroom apartmentas from only $48,671 99 2-bedroom apartments from only $73,644 99 Guaranteed 8% yield underwritten until 2020 99 10% expected yield 99 Currently running at 100% occupancy 99 Developer resale option in year 6 at 112% 99 Just 15-minute walk to Limestone College 99 Limestone College agreement to rent apartments for next 5 years 99 Close to Charlotte, a financial hub of America 99 No covenant on the property enforcing it to only be used by students 99 Completely managed 99 Passive hands off investment