The Oaks Apartments - Fully Subscribed
101 Arbor Run Drive
Lincolnton, NC 28092
Become an Accredited Investor
The Oaks Apartments Annual Property Operating Data
Asset Class: Class B Conventional
Size: 111 units
Year Built: 2002
Acquisition Date: Estimated Closing 05/31/2018
Pro Forma Cap Rate: 6.13%
Proposed Capital Structure:
Lincolnton, NC is a bedroom community located 37 miles northeast of Charlotte, and part of the Charlotte MSA.
Charlotte currently boasts a population of over 800,000 people. The Charlotte metro is expected to gain 18% population growth over the next 7 years. The largest portion of this gain will be due to in-migration.
Charlotte has a well-educated and highly trained labor pool that is attracted by a variety of industries and employers located in the metro. The metro’s employment base is growing and diversifying, drawing Fortune 500 companies. Though the finance sector is a large driver of the economy, manufacturing, healthcare and energy industries also play a vital role. The low cost of doing business attracts companies. Eight Fortune 500 companies have headquarters in the region: Bank of America, Lowe’s, Quintiles Transnational Holdings, Duke Energy, Family Dollar, Nucor, Sonic Automotive and Domtar. Highly ranked universities provide employment and produce a highly educated workforce, drawing top companies to the area.
The Oaks is comprised of 8 two story garden style buildings spread over 10 beautifully landscaped, wooded acres. Built in 2002, the Oaks stands as Lincolnton’s premier apartment community. Unit mix is comprised of 20-1BR/1BA, 79-2BR/2BA, and 12-3BR/2BA Units. Property has covered balconies and breezeways, and 230 parking spaces, including fully enclosed garages. Amenities include Clubhouse, Fitness Center, Onsite Laundry as well as en-suite laundry hookups, Basketball Court and Dog Park.
The Oaks will provide investors with monthly dividends starting within 45 days after closing. Our pro forma underwriting projects annualized cash on cash returns north of 7.5%. With strong population growth trends continuing over the next decade, we expect rent growth to continue, providing robust cash flow over our 5-year holding period.