Summary

Waterford Place is located in Murfreesboro, Rutherford County, TN. The property is located along Church Street (SR-10) which is a central road running north/south to Interstate 24 and to downtown Murfreesboro. The City of Murfreesboro, the county seat of Rutherford County, is located at the geographic center of the State of Tennessee.  In terms of job growth, and at the time of acquisition, Rutherford County was the fastest growing county in the United States.  The population of the county is over 200,000 people with an average HH Income is $60,780.  Rutherford County combines the benefits of smaller-town, quality schools, and lower-cost of living with the amenities of a major metropolitan area. The immediate neighborhood has a combination of single family detached housing, multifamily apartments, and significant retail services. Single family development continues to expand nearby as the in-migration to the area is significant. Retail services within one mile of the property include Kroger, Food Lion, Walgreens, numerous bank branches, and other convenience retailers. Immediately across the street from the property is the Indian Hills Golf Club which is bordered by mid- to upper-end single family homes.
 

Income-oriented investment profile with the current return representing nearly 60% of the total return. Strategy includes newly originated, long term fixed rate financing to lock-in low rates to protect the current return without sacrificing the ability to service the debt. The real estate acquisition price is approximately 90% of replacement cost. Market fundamentals have stabilized with indications of an up-cycle occurring over the next three to five years.  The up-cycle for apartment investing is being driven by a combination of renewed employment growth, lack of new construction, and reduced affordability of single family housing as interest rates rise.