Grove & Preserve

Investment Highlights

Proven Value-Add on 484 Unit Offering

Current ownership has implemented a value-add program, renovating 22% of units to “deluxe” status. In-place leases on deluxe units are achieving a $193 premium over non-renovated units, and over the past 30 days, leases on the deluxe units have grown to $1,150+ 1BR, $1,375+ 2BR, and $1,675+ 3BR. This programmatic value-add has fueled a 36% increase to in-place rents over the last 18 months , while still leaving a substantial runway for new ownership to grow revenue over the 484 combined units.

Surging Non-Renovated Renewals Prove Depth of Demand

While the value-add program has been a leading factor in revenue growth, renewals on non-renovated units are growing rents significantly as well. These renewals have averaged 21% and 27% increases at Grove and Preserve during the same 18 month period, showcasing the depth of rental demand for these assets. Ultimately, leasing momentum under current ownership has allowed monthly revenue to climb from less than $400,000 to over $560,000.

Desirable Locations One-Half Mile Apart

The Preserve and The Grove are situated one-half mile from each other and offer practical economies of scale across their 484 units. Centrally located in Gulfport / Biloxi, they are zoned for highly-rated schools, are centrally located to the Port of Gulfport, Biloxi’s Casino District, and are minutes from the white sand beaches of the Mississippi Gulf Coast.

1995-2000 Product Below Replacement Cost

The assets have been well-maintained and benefit from physical features that enhance renter appeal. Floorplans average a spacious 1,101sf and offer open layouts with 9’ ceilings, walk-in closets, and washer/dryer connections among others. The properties provide full-scale community amenities and are situated amongst natural, mature landscaping with expansive greenspaces and water features.

Attractive Loan Assumption, or Free and Clear

Investors have the option to assume compelling in-place debt with a sub-4% fixed rate and multiple years of interest only remaining, or purchasing free and clear of existing debt.

Investment Summary

  • Status: Under Agreement
  • Biloxi-Gulfport, MS
  • Total Units: 484
  • Year Built: 2000/1995
  • Total SF: 532,952 SF

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