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HAMPTON PLACEHAMPTON, SC | 41 UNITS
HAMPTON PLACE425 WADE HAMPTON ROADHAMPTON, SC
The Kirkland Company is proud to present the following Offering Memorandum for Hampton Place, 41 Studio, 1BD & 2BD units in Hampton, South Carolina. The asset sits just off of W Carolina Ave. (11,500 VPD) and 3rd St. NE (5,200 VPD).
As a part of the South Carolina Low Country, Hampton is known for being a region along South Carolinas coast rich in historic cities and communities, natural environment, and cultural heritage. Hampton is conveniently located 75 miles west of Charleston, SC, 50 miles north of Savannah, GA, 60 miles northwest of Hilton Head Island, and 75 miles east of Augusta, GA. The asset is a 25-minute drive from The University of South Carolina Salkehatchie, one of four USC regional campuses with a total enrollment of 1,108 students and 57 members of their academic staff.
In a 2012 census Hampton County had a total employment of 91,673. The county’s largest employers include Brunson Building Supply Co. (2.2 miles), Elliott Sawmilling Co. (18.2 miles), Hampton Regional Medical Center (1.1 miles), LeCruset of America (12.2 miles), and Palmetto State Bank (1.4 miles). In addition to these, Hampton County is known for its three industrial parks, one of those covering a portion of a foreign trade zone.
Hampton’s main entertainment stems from Palmetto Theater, Bar Hampton, and Spinbad records. Hampton also has two medical centers, Beaufort Memorial Harrison Peeples Care Center and Hampton Regional Medical Center, the main emergency center in the town. Hampton Regional covers 82,000 SF, has 32 beds, and 30 members on its physician staff. The hospital operates under the guiding principle that “people living in rural areas deserve local access to the finest medical care available.”
Charlotte | Nashville | CharlestonT: 704.208.3800
TABLE OF CONTENTS
Chris YeagleManaging Partner
Kyle ChaseManaging Partner
Neil ChrispManaging Partner
Property Profile ...................................................................................................3
Location Overview ...............................................................................................7
Financial Analysis ..............................................................................................13
Confidentiality & Disclaimer
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Kirkland Company and should not be made available to any other person or entity without the written consent of The Kirkland Company. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Kirkland Company has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Kirkland Company has not verified, and will not verify, any of the information contained herein, nor has The Kirkland Company conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR KIRKLAND COMPANY AGENT FOR MORE DETAILS.
Augusta
Columbia
Hampton Place
32
OFFERING SUMMARY
PRICING SUMMARY
Offering Price $1,600,000
CAP Rate (Pro Forma) 9.09%
Year 1 Cash-on-Cash 13.18%
Financing Offered All Cash
INVESTMENT HIGHLIGHTS
Modern Construction
Recently Renovated
100% Occupied
W/D Connections
Newest Product In Market
54
SITE
Number of Units 41
Rentable Square Feet 36,700
Average Square Feet Per Unit 895
Number of Apartment Buildings 5
Year Built 1985
Acreage 4.14
Density (Units Per Acre) 9.90
Access Type Wade Hampton Road
CONSTRUCTION & UTILITIES
Exterior Vinyl Siding
Roof Pitched / Shingles
Parking Surface Asphalt
Electricity South Carolina Electric & Gas
Water & Sewer Lowcountry Regional Water System
UNIT BREAKDOWN
Type Units Unit SF Total SF
Studio 1 700 700
1BD/1BA 8 700 5,600
2BD/1BA 32 950 30,400Total/Avgs 41 895 36,700
LOCATION OVERVIEW
98
FINANCIAL ANALYSIS
INCOME May-17 T12 % of Gross May-17 T3 % of
GrossYear 1 Pro
Forma% of Gross
Year 2 Pro Forma
Year 3 Pro Forma
Year 4 Pro Forma
Year 5 Pro Forma
Market Rent $240,300 $240,300 $265,200 $273,156 $281,351 $289,791 $298,485
Rent Growth $0 $0 $7,956 $8,195 $8,441 $8,694 $8,955
Scheduled Rent $240,300 $240,300 $273,156 $281,351 $289,791 $298,485 $307,439
(Vacancy: Loss-to-Lease) $0 $0 ($5,304) 2.00% ($5,463) ($5,627) ($5,796) ($5,970)
Gross Potential Rent $240,300 $240,300 $267,852 $275,888 $284,164 $292,689 $301,470
(Vacancy: General) ($38,272) 15.93% ($16,728) 6.96% ($10,608) 4.00% ($10,926) ($11,254) ($11,592) ($11,939)
Net Rental Income $202,028 $223,572 $257,244 $264,961 $272,910 $281,097 $289,530
Plus: Late Fee $580 $420 $420 $433 $446 $459 $473
Plus: Other Income ($1,057) $0 $0 $0 $0 $0 $0
Effective Gross Income $201,551 $223,992 $257,664 $265,394 $273,356 $281,556 $290,003
EXPENSES May-17 T12 Per Unit May-17 T12 Per Unit Year 1 Pro Forma Per Unit Year 2 Pro
FormaYear 3 Pro
FormaYear 4 Pro
FormaYear 5 Pro
Forma
Real Estate Taxes $27,218 $664 $27,218 $664 $32,162 $784 $33,127 $34,121 $35,145 $36,199
Insurance $11,503 $281 $11,503 $281 $9,225 $225 $9,502 $9,787 $10,080 $10,383
Electricity $9,436 $230 $9,436 $230 $9,719 $237 $10,011 $10,311 $10,620 $10,939
Water & Sewer $4,135 $101 $4,135 $101 $4,259 $104 $4,386 $4,518 $4,654 $4,793
Pest Control $1,715 $42 $1,715 $42 $1,766 $43 $1,819 $1,874 $1,930 $1,988
Manager Payroll $7,136 $174 $7,136 $174 $7,350 $179 $7,570 $7,797 $8,031 $8,272
Security $700 $17 $700 $17 $721 $18 $743 $765 $788 $811
Administrative $5,808 $142 $5,808 $142 $5,982 $146 $6,162 $6,347 $6,537 $6,733
Internet $585 $14 $585 $14 $603 $15 $621 $639 $659 $678
Maintenance & Repairs $5,846 $143 $5,846 $143 $6,150 $150 $6,335 $6,525 $6,720 $6,922
Cleaning & Decorating $1,952 $48 $1,952 $48 $5,125 $125 $5,279 $5,437 $5,600 $5,768
Landscaping & Grounds $785 $19 $785 $19 $809 $20 $833 $858 $884 $910
Professional $412 $10 $412 $10 $424 $10 $437 $450 $464 $477
Management (% of EGI) $10,737 5.33% $10,737 4.79% $13,527 5.25% $13,933 $14,351 $14,782 $15,225
Capital Reserves $4,569 $111 $4,569 $111 $14,350 $350 $14,350 $14,350 $14,350 $14,350
Total Expenses $92,537 $2,257 $92,537 $2,257 $112,172 $2,736 $115,107 $118,130 $121,243 $124,450
Net Operating Income $109,014 $131,455 $145,492 $150,287 $155,226 $160,313 $165,553
FINANCIAL ANALYSIS
Notes on Financials
The rent roll includes 40 units. However, the property is renovating a small office building to be a studio. This unit is assumed to have 700 Square Feet and a market rent of $500 preleased.
As of July 1, the property assessed a $25 per month rent increase to all tenants not at the standard rate. This increase has been included on the 28 rents below the standard rate for this analysis.
Rental income was not included on the financials provided for April and May. The rental income from March has been used for April and May.
The line item “Balance Adjustment” from the financials provided has been removed from this analysis.
Rent Growth is based off 3% growth each year.
Other Income: All Other Income items are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis.
Real Estate Taxes:
The state of South Carolina allows the appraised value at the time of sale to be equal to 75% of the sales price. While this reduction is state law, it must be requested. It is recommended that investors contact a professional for more specific information relating to this law.
Travel expenses, including fuel and meals, have been removed from this analysis.
The Total Maintenance Expense figure is an indicator for informational purposes only that we calculate by adding together the following line item expenses: Maintenance Payroll, Maintenance & Repairs, Cleaning & Decorating, and Capital Reserves.
All expenses are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis.
Tax Reappraisal Schedule
Last Reassessment
Year
Next Reassessment Year
Assessment Ratio
Total Millage Rate
Every 5 Years 2016 2021 6% $44.67 per $100 of assessed value
Time Period Parcel ID Appraised Value Assessed ValueHampton Co. Millage Rate
Hampton Millage Rate
Real Estate Taxes
2016 119-12-07-001 $1,146,100 $68,766 $0.79 $43.88 $30,718
Type Units Vacant Units
Unit SF
Total SF In-Place Rent Market Rent In-Place Rent
(Monthly)Market Rent
(Monthly)
Studio 1 0 700 700 $500 $500 $500 $500
1BD/1BA 8 0 700 5,600 $441 $450 $3,525 $3,600
2BD/1BA 32 0 950 30,400 $496 $500 $15,875 $16,000
Totals / Avgs 41 0 895 36,700 $485 $490 $19,900 $20,100
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Chris YeagleManaging Partner
Kyle ChaseManaging Partner
Neil ChrispManaging Partner
Charlotte | Nashville | CharlestonT: 704.208.3800