Gaffney, South Carolina, USA
LEFT BRAND NEW FULLY REFURBISHED STUDENT APARTMENTS
Introducing
Chandler Oaks
Chandler Oaks is a collection of fully refurbished 1 and 2
bedroom apartments located in the city of Gaffney, South
Carolina, USA.
Just moments from Limestone College and its 3,500 enrolled
university students, Chandler Oaks already has a 5 year tenant
agreement in place from the College President for the 100
apartments. Chandler Oaks already has a waiting list of third
year students waiting to move in as soon as occupancy is
available.
With starting prices from just $49,000 for a 1 bed apartment up
to a maximum price in phase 1 of $77,000 for the largest 2 bed
apartment.
An 8% NET yield is warranted and guaranteed until 2020.
Annually adjusted NET returns of up 10%+ are realistically
projected.
Spacious
student living
Chandler Oaks apartments are designed as homes rather
than student accommodation so are spacious compared to
typical student pods.
They are ideal for shared student living with open plan living
areas pre-wired for cable, modern kitchens with key
appliances, new bathroom suites as well as separate
bedroom areas for privacy and additional storage.
There is no covenant over the property so although the
apartments will be used as student accommodation they
can in the future be used by young executives and
business couples because of the easily commutable
distance to Charlotte, North Carolina.
The 1 bedroom apartments cover 450 sq ft on average and
the 2 bedrooms, an average
of 685 sq ft.
Apartment Amenities Wi-Fi
Extra Storage Available
Well Equipped Kitchens
Heat and Air Conditioner
Cable Ready
Typical layout of a 1 bedroom apartment
Typical layout of a 2 bedroom apartment
Refrigerator
Cooker
Location,
location, location
Perfectly located near transportation links, attractions,
shopping and office parks, Chandler Oaks offers
highly attractive apartment homes with competitive
features & amenities including:
✓ Student Social Area
✓ On-site Security
✓ Beautifully Landscaped Shopping And
✓ Entertainment Facilities Close By
✓ On-site Laundry Facility Professional
✓ Management Team
✓ Near Public Transportation Routes
✓ Adjacent to To Limestone College
✓ A half hour commute to Charlotte, North
Carolina
Why invest in US real
estate? Why now?
“February marks two straight years of year-over-year
gains in national prices across the United States”
With higher household wealth, a recovering housing market and banks
more willing to lend, the US economy is shaking off the lows of the
Anand Nallathambi, President and CEO of CoreLogic
2007/8 financial crisis and moving in a positive direction once again.
The IMF, in its World Economic Outlook, forecasts a healthy 2.8%
growth for 2014, the highest rate amongst the world’s advanced
economies, rising
to 3% for 2015.
Indeed as spring approaches, it seems that the US real estate market
The 10-City Index of US House Prices
thaw is well and truly underway. The average US property value rose
12.2% in February 2014 year on- year according to the latest CoreLogic
110
Home Price Index with home-purchase mortgage applications climbing
13% in March 2014 according to the Mortgage Bankers Association.
100
In addition to a fast paced sales market, the rental sector is booming also
with the US apartment vacancy rate falling by 4% in Q1 2014
according to real estate research firm Reis Inc. The combination of record
90
high rents and the best Sterling – US Dollar exchange rate seen for 3
years is making international investors ever more bullish about investing in
US real estate.
80
Regionally, real estate hotspots such as Charlotte, North
SOURCE www.economist.com
Carolina, just 45 minutes from Chandler Oaks, are
emerging. According to the latest Standard & Poor’s
70
Case-Shiller index, home prices in the Charlotte-area in
October 2013 posted their biggest annual gain in 26
years, climbing by 8.8% from a year previously.
60
2006
2007
2008
2009
2010
2011
2012
2013
Confidence in Charlotte is so high in fact that Fitch Ratings
assigned the coveted ‘AAA’ rating to the city in March
2014 with the city’s property tax revenue a key rating
driver.
www.chandleroaks.co.uk
SIX
LEFT GEOGRAPHIC LOCATION OF CHANDLER OAKS
Get into Gaffney!
Finding fame as the home town 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. The city is located 45
minutes from the financial hub of Charlotet , North Carolina
(and its international airport) and 40 minutes from Greenville,
South Carolina.
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 20 acre park under
development downtown.
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 5.7% in the last year
(Feb 2013 – 2014) with the median price of a home now
$132,000.
SEVEN
LEFT GAFFNEY, HOME TO LIMESTONE COLLEGE
An educated
investment choice:
Student accommodation
Higher education remains the aspiration for many Americans with the US
home to 4.140 colleges or universities. 2013 saw 17.4 million students
attend US colleges and universities according to the National Centre for
Education Statistics, Digest of Education Statistics.
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, 2012). Now a mainstream
global asset class in its own righst,t udent accommodation has attracted
“Over $2 billion worth of
student accommodation
transactions were made in
the US in 2011 alone.”
institutional and individual investors alike due to the counter-cyclical
Jones Lang LaSalle (JLL), 2012
has struggled to keep pace with the surge in enrolments and the shortfall
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
of suitable accommodation has led to high occupancy rates and
consistent rental growth.
Limestone College, Gaffney
As well as Hollywood actress Andie MacDowell calling Gaffney home,
this city is also the location of Limestone College. The now
co-educational, arts college was established here in 1845 by English
born scholars. Limestone College’s total enrolment is now more than
3,500 students making it the largest private, regionally accredited
institution in South Carolina as well as the third oldest. With growing
enrolment and limited accommodation on campus, Chandlers Oaks, just
a stone’s throw away, presents the ideal student accommodation option.
SUMMARY OF THE INVESTMENT AND THE PROCEDURE
There are no limitations or restrictions whatsoever on non residents buying property in the US.
You purchase the property directly from the owner, Chandler Oaks LLC.
You enter into a 5 year management and tenancy agreement with South Carolina Land & Property Company LLC (SCL&P). They become your tenant and they
sub-lease to the University.
They look after everything to do with the properties, 24/7 on-site management and security (cameras etc), maintenance, paying all bills, (insurance,
maintenance fund, staffing etc), and regular apartment inspections. They pay the rent to you with a guarantee of a minimum of 8% pa, quarterly and there
is an annual reconciliation with full accounts and any rental income after costs in excess of the 8% is paid at that point and is projected as taking the full
yield up to 10% + NET.
SCL&P have a 5 year contract with the adjacent AAA rated Limestone University, so there is no possibility of vacancies and there is a 2.5% annual increase in
the rental paid by the University. This contract will roll-on year by year after year 5, without the guarantee, with no probability of it not being renewed every
year as the University need the accommodation for students and staff.
These are full apartments, unlike most student accommodation, 1 and 2 bedrooms with 1 or 2 bathrooms, living room and kitchen. Furthermore, you are able
to sell it at any time and you may sell it to a non student. This is particularly interesting as Gaffney is within easy commuting distance of Charlotte, North
Carolina, the second biggest financial centre in the US outside of New York, so you have plenty of opportunities if you wish to sell. If you were to keep it for
five years, which is when the guarantee runs out and you were unable for any reason, to sell it on the open market, the management company has a legally
binding obligation to buy it back from you for an amount equivalent to 112% of the purchase price, so that is the absolute worst case scenario, your downside
is covered.
However, in 2014 Charlotte NC had a AAA rating from “Standard & Poor’s Case Shiller Index”, the most respected property index in the US. They said :
“Home prices in the Charlotte area, rose in 2013 by 8.8%, the highest gain in 26 years”
The rent is absolutely guaranteed, by the University to SCL&P and by SCL&P to you with addition of a professional Warranty Company’s guarantee, which is
a common practice in the US.
PROCEDURE
The way forward is very simple, you merely complete the reservation form and send it to the address on the form and send the deposit of only $1,000 to the
lawyers insured client trust account who’s address is also on the reservation form.
The lawyers will respond with the necessary documentation and answer any questions you may have with the contracts.
I remain available at any time to answer any questions you may have
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