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288 UNITS | CHATTANOOGA, TN
LEAD BROKERS CONTACT
46 UNITS | FULTON, KYValue-Add Opportunity in Developing Western
Kentucky
Opportunity Zone
ROYAL RIDGEBrandon Wilson
Managing [email protected]
(502) 837-4100
William KirklandManaging Partner
[email protected](615) 690-3001
John SealeManaging Partner
[email protected](502) 837-4104
Brian DevlinManaging Partner
[email protected](502) 837-4144
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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.
TABLE OF CONTENTS
5100 Maryland Way, #100 | Brentwood, TN 37027T: 502.837.4100 |
F: 615.523.4990
TKC Assigned Listing Agents
William KirklandManaging Partner
[email protected]
Brian DevlinManaging Partner
[email protected]
Brandon WilsonManaging Partner
[email protected]
John SealeManaging Partner
[email protected]
ROYAL RIDGE1005 AIRPORT ROAD | FULTON, KY 42041
Offering Summary
.............................................................................................06
Investment Highlights
.......................................................................................07
Employment Map
..............................................................................................08
Photos
...............................................................................................................10
Location Overview
.............................................................................................13
Rent Comparables
.............................................................................................21
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RETAIL TEAM:MARKET STREET RETAIL ADVISORS |
MARKETSTREETRETAIL.COM
INSURANCE AGENTS:MILAN INSURANCE PARTNERS |
MILANINSURANCEPARTNERS.COM
Harrison [email protected]
Lee [email protected]
Conry [email protected]
Josh [email protected]
Jeff [email protected]
Ben [email protected]
Tim [email protected]
TKC DEAL TEAM TKC DEAL TEAM
William KirklandTennessee
[email protected]
Zac WracherTennessee
[email protected]
Brian DevlinKentucky | Indiana
[email protected]
Tim EllrichGeorgia | South Carolina
[email protected]
Miller HarrisTennessee
[email protected]
Eric HardestyAlabama | FL Panhandle
[email protected]
Brandon WilsonKentucky | Indiana
[email protected]
Nick Nail IIIMemphis | Mississippi | Arkansas
[email protected]
Dennis HarrisTennessee | North
[email protected]
Wade LowryAlabama | FL Panhandle
[email protected]
Neil ChrispMemphis | Mississippi | Arkansas
[email protected]
John SealeKentucky | Indiana
[email protected]
Jake HigginsDirector of
Operations & Marketing
Josh Murray Senior Analyst
Cannon McCullough Real Estate Analyst
Bailey Perrone Real Estate Analyst
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UNIT BREAKDOWN
Type Units Unit SF Asking Rents Total SF
Studio 14 408 $325 5,712
1BR/1BA 16 546 $375 8,736
2BR/1BA 16 709 $450 11,344
Total/Avgs 46 561 $386 25,792
SITE
Number of Units 46
Rentable Square Feet 25,792
Average SF Per Unit 561
# of Apartment Buildings 2
Year Built 1977
Property Address 1005 Airport Road
CONSTRUCTION & UTILITIESExterior Shingles
Roof Mansard / Shingles
Parking Surface Asphalt
Electricity Fulton Electric System
Water & Sewer City of Fulton
OFFERING SUMMARY
VALUE-ADD THROUGH REHABBING DOWN UNITS: Royal Ridge has 10 down
units that can be brought back online. By renting these 10 units,
new ownership could increase NOI by up to $45,600.
WELL-MAINTAINED UNITS: Remodeled units include new
refrigerators, ranges/ovens, countertops, cabinets, & flooring,
and current ownership has kept active units in good shape.
ENHANCE CURB APPEAL: New ownership will have the opportunity to
enhance the curb appeal of Royal Ridge, including:• New signage•
Improved Landscaping• Resurface parking lot• Improve stairs and
breezeways
AMENITES UPGRADE: The property has plenty of open space for new
ownership to improve the amenities package, such as updating the
playground or adding grilling/picnic spaces.
NEARBY DEVELOPMENT: Fulton, KY and the surrounding areas have
had multiple large job announcements or developments, including:•
Kayser Automotive: $26 million expansion; 100 new jobs - 2017•
Tokai Carbon GE: $25 million investment; 15 new jobs• Tyson: $87.6
million expansion; 230 new jobs• Williams Sausage: $37 million
investment; 226 new jobs• Greenfield Products: $6.3 million
investment; 100 new jobs• Excel Boats: $7.5 million investment: 175
new jobs• MTD Consumer Group: $10 million investment; 200 new jobs•
Delta Regional Authority: $10.8 million; 200 new jobs• PRCO
America: $5.5 million investment; 32 new jobs• HVAC Distributing:
$7 million investment; 175 new jobs
ACCESS TO DEMAND DRIVERS: Royal Ridge provides convenient access
to nearby demand drivers, including:• Tyson: 1,600 jobs• Williams
Sausage: 600 jobs• Baptist Memorial Hospital: 400 jobs; 137 beds•
Titan Tire: 300 jobs• Kohler: 250 jobs
OPPORTUNITY ZONE PROVIDES ATTRACTIVE DEVELOPMENT OPPORTUNITY:
Royal Ridge is located in an opportunity zone, providing a future
road map for developers.
INVESTMENT HIGHLIGHTS
INCOME Stabilized Pro Forma% of Gross
Scheduled Rent $213,000
(Vacancy: General) ($21,300) 10.00%
Net Rental Income $191,700
Plus: Laundry Income $2,294
Plus: Non Ref Move-In Fee $5,520
Effective Gross Income $199,514
EXPENSES Stabilized Pro Forma Per Unit
Real Estate Taxes $11,087 $241
Insurance $12,023 $261
Electricity $4,577 $100
Water & Sewer $16,406 $357
Garbage Collection $3,192 $69
Administrative $5,789 $126
Telephone/Internet $575 $13
Maintenance & Repairs $16,800 $365
Supplies $9,600 $209
Advertising $534 $12
Management (% of EGI) $15,961 8.00%
Capital Reserves $16,100 $350
Total Expenses $112,644 $2,449
Net Operating Income $86,869
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TOKAI CARBON GE$25 million investment
15 new jobs
EXCEL BOATS$7.5 million investment
175 new jobs
MTD CONSUMER GROUP$10 million investment
200 new jobs
BAPTIST MEMORIAL HOSPITAL
400 jobs137 beds
WILLIAMS SAUSAGE$37 million investment
226 new jobs600 jobs total
TYSON$87.6 million expansion
230 new jobs1,600 jobs total
JOB ANNOUNCEMENTS AND
DEMAND DRIVERS
TITAN TIRE300 jobs
KOHLER250 jobs
GREENFIELDPRODUCTS
$6.3 million investment100 new jobs
LETICA CORP185 jobs
PREMIER PORTABLE BUILDINGS
200 jobs
KAYSER AUTOMOTIVE$26 million expansion100 new jobs - 2017
PRCO AMERICA$5.5 million investment
32 new jobs
ROYAL RIDGE
HVAC DISTRIBUTING$7 million investment
175 new jobs
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INTERIOR
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LOCATION OVERVIEW
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Located in the Jackson Purchase Region of western Kentucky,
Fulton is situated on the Kentucky-Tennessee state line, adjacent
to South Fulton in Obion County. The two “Twin” cities, with a
combined estimated population of 5,200, utilize many common
facilities and unite in efforts to ensure economic and cultural
growth. It is also located just 15 minutes northeast of Union City,
TN which hosts a population of approximately 11,000, and is also 49
miles southwest of Paducah, KY, 126 miles northeast of Memphis, TN,
160 miles northwest of Nashville, and 212 miles southeast of St.
Louis, MO.
Fulton is served by the Purchase Parkway, a multi-lane road
which connects with Interstate 24, fifty miles to the northeast,
and Interstate 69 which runs all the way from Mexico to Canada. The
Hickman-Fulton County Riverport, a major riverport on the
Mississippi River, is 20 miles away. The nearest scheduled
commercial airline services are available at Barkley Regional
Airport near Paducah and at the Memphis International Airport.
Union City is also home to the Everett-Stewart Regional Airport,
northwest Tennessee’s only regional airport.
Located 14 miles from University of Tennessee at Martin (7,300
students) and 35 miles from Murray State University (~10,000
students), Fulton also maintains large trade, transportation, and
manufacturing presences which help constitute many of their
employers. However, the two biggest employers near Fulton, Tyson
Food and Williams Sausage Company, are located nearby in Union
City, TN. Tyson Food, currently employing 1,600 people, invested
$80 million in 2017 and subsequently completed a second $87.6
million expansion in 2020 which added 40,000 square feet and new
production lines to the Union City plant and is expected to create
approximately 230 jobs by the end of 2020. Williams Sausage
Company, employing 600 people, began construction on a new 200,000
square foot production facility and distribution center in 2017,
which added 210 jobs and is expected to create an additional 321
jobs onsite by 2022.
Fulton is also just 13 miles away from Discovery Park of
America, which boasts an iconic 100,000 square foot museum
showcasing a 20,000-gallon aquarium as well as ten exhibit
galleries focused on topics like science, space, technology,
natural history, etc. It also has a 50-acre outdoor heritage park
which includes a man-made river flowing through the landscaped
property, along with waterfalls, bridges and other water features.
Other attractions in/near Fulton include an 18-hole golf course,
baseball diamonds, a youth recreation center, as well as several
state and national parks that offer fishing, hunting, water sports,
and camping.
LOCATION SUMMARY
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RENT COMPARABLES
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Property Name Year Built # of Units Avg Sq FtAvg
Effective Rent
Avg Effective Rent / Sq Ft
A Royal Ridge 1977 46 561 $385 $0.70
B Beaumont Park 1965 24 700 $400 $0.57
C Chapel Ridge of Martin 2006 96 961 $716 $0.75
D Autumn Wood 1968 48 775 $438 $0.57
E Plantation East 2008 72 977 $600 $0.61
F Hillwood 1974 64 876 $546 $0.63
G Ware Park 2016 64 934 $519 $0.55
RENT COMPARABLES FEES & UTILITIES
Apartment CommunityDeposit
(ref)Admin Fee (non-ref)
App Fee (per person)
Pet Fee (non-ref)
Pet Rent (monthly)
Royal Ridge One Month's Rent None None No Pets Allowed N/A
Beaumont Park Unable to Verify
Chapel Ridge of Martin $200 - 1 Month's Rent None $20 $400
$25
Autumn Wood $250 Unable to Verify Unable to Verify $200 None
Plantation East $300 None $10 $100 None
Hillwood $300 Unable to Verify Unable to Verify No Pets Allowed
N/A
Ware Park $300 None Unable to Verify No Pets Allowed N/A
FEES
Apartment Community Water/Sewer Gas Trash Electricity
Royal Ridge Included with Rent/Landlord Pays None Included with
Rent Tenants Pay
Beaumont Park Included with Rent/Landlord Pays None Included
with Rent Tenants Pay
Chapel Ridge of Martin Tenants Pay/Metered None Included with
Rent Tenants Pay
Autumn Wood Included with Rent/Landlord Pays None Included with
Rent Tenants Pay
Plantation East Tenants Pay/Metered None Included with Rent
Tenants Pay
Hillwood Included with Rent/Landlord Pays None Included with
Rent Tenants Pay
Ware Park Tenants Pay/Metered None Included with Rent Tenants
Pay
UTILITIESFulton / Union City
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Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
0 Bdrm/1 Bath Studio 408 $325 $0.801 Bdrm/1 Bath 546 $375 $0.692
Bdrm/1 Bath 709 $450 $0.63
Totals/Averages 561 $385 $0.70
ROYAL RIDGE1005 AIRPORT ROADFULTON, KYTOTAL UNITS: 46YEAR BUILT:
1977OCCUPANCY: 78.26%
COMMENTS:Property plans to switch from refundable security
deposit to$300 non-ref Admin Fee.
• Laundry Facility• Playground• Leasing Office• On-Site
Maintenance
Amenities• Major Appliances• Modern Appliances
Interior Features
Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
2 Bdrm/1 Bath 700 $400 $0.57Totals/Averages 700 $400 $0.57
BEAUMONT PARK131 BEAUMONT STREETMARTIN, TNTOTAL UNITS: 24YEAR
BUILT: 1965OCCUPANCY: 91.7%
COMMENTS:Info obtained via 3rd party source.
Amenities• Major Appliances• Modern Appliances
Interior Features
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Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
1 Bdrm/1 Bath 673 $569 $0.852 Bdrm/2 Bath 912 $689 $0.763 Bdrm/2
Bath 1083 $779 $0.724 Bdrm/2 Bath 1333 $929 $0.70
Totals/Averages 961 $716 $0.75
CHAPEL RIDGE OF MARTIN528 ELLIS STREETMARTIN, TNTOTAL UNITS:
96YEAR BUILT: 2006OCCUPANCY: 88%
• Swimming Pool• Sun Deck• Fitness Center• Playground•
Clubhouse• Bicycle Storage
Amenities• Major Appliances• Modern Appliances• Ceiling Fans•
Dishwasher• Washer/Dryer Connections• Balcony/Patio
Interior Features
Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
2 Bdrm/1 Bath 775 $438 $0.57Totals/Averages 775 $438 $0.57
AUTUMN WOOD1509 HIGH SCHOOL DRIVEUNION CITY, TNTOTAL UNITS:
48YEAR BUILT: 1968OCCUPANCY: 91.7%
COMMENTS:Info obtained via 3rd party source.
• BBQ/Picnic Area• Laundry Facilities• Leasing Office•
Basketball Court
Amenities• Major Appliances• Modern Appliances• Balcony/Patio•
Dishwasher• Washer/Dryer Connections• Walk In Closets
Interior Features
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Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
2 Bdrm/1 Bath 977 $534 $0.552 Bdrm/1.5 Bath 977 $630 $0.642
Bdrm/2 Bath 977 $637 $0.65
Totals/Averages 977 $600 $0.61
PLANTATION EAST1144 SOUTH SUNSWEPT STREETUNION CITY, TNTOTAL
UNITS: 72YEAR BUILT: 2008OCCUPANCY: 90.3%
COMMENTS:Info obtained via 3rd party source.
Amenities• Major Appliances• Modern Appliances• Washer/Dryer
Machines• Dishwasher
Interior Features
Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
1 Bdrm/1 Bath 648 $453 $0.702 Bdrm/2 Bath 888 $553 $0.623 Bdrm/2
Bath 1150 $654 $0.57
Totals/Averages 876 $546 $0.63
HILLWOOD1732 STONE STREETUNION CITY, TNTOTAL UNITS: 64YEAR
BUILT: 1974OCCUPANCY: 100%
COMMENTS:Info obtained via 3rd party source.
• Swimming Pool• Playground• Laundry Facilities
Amenities• Major Appliances• Modern Appliances• Dishwasher• High
Speed Internet Access
Interior Features
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Unit Type Unit Sq. Ft. Asking Rents Asking Rent SF
1 Bdrm/1 Bath 850 $430 $0.512 Bdrm/1 Bath 891 $450 $0.512 Bdrm/2
Bath 951 $540 $0.573 Bdrm/2 Bath 1057 $625 $0.59
Totals/Averages 934 $519 $0.55
WARE PARK1464 EAST CHEATHAM STREETUNION CITY, TNTOTAL UNITS:
64YEAR BUILT: 2016OCCUPANCY: 100%
COMMENTS:Info obtained via 3rd party source.
• Business Center• Fitness Center• Clubhouse• Leasing Office•
Playground• Swimming Pool
Amenities• Major Appliances• Modern Appliances• Balcony/Patio•
Cable Ready• Ceiling Fans• Washer/Dryer Machines• Dishwasher
Interior Features
3130
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Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 673 $569 $0.85
Hillwood 1974 64 648 $453 $0.70
Ware Park 2016 64 850 $430 $0.51
Royal Ridge 1977 46 546 $375 $0.69
ONE BEDROOM SORTED BY - AVERAGE RENT / MONTH
RENT STATISTICS
Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 673 $569 $0.85
Hillwood 1974 64 648 $453 $0.70
Royal Ridge 1977 46 546 $375 $0.69
Ware Park 2016 64 850 $430 $0.51
ONE BEDROOM SORTED BY - AVERAGE RENT / SQUARE FOOT
TWO BEDROOM SORTED BY - AVERAGE RENT / MONTH
TWO BEDROOM SORTED BY - AVERAGE RENT / SQUARE FOOT
Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 912 $689 $0.76
Plantation East 2008 72 977 $637 $0.65
Plantation East 2008 72 977 $630 $0.64
Hillwood 1974 64 888 $553 $0.62
Ware Park 2016 64 951 $540 $0.57
Plantation East 2008 72 977 $534 $0.55
Royal Ridge 1977 46 709 $450 $0.63
Ware Park 2016 64 891 $450 $0.51
Autumn Wood 1968 48 775 $438 $0.57
Beaumont Park 1965 24 700 $400 $0.57
Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 912 $689 $0.76
Plantation East 2008 72 977 $637 $0.65
Plantation East 2008 72 977 $630 $0.64
Royal Ridge 1977 46 709 $450 $0.63
Hillwood 1974 64 888 $553 $0.62
Beaumont Park 1965 24 700 $400 $0.57
Ware Park 2016 64 951 $540 $0.57
Autumn Wood 1968 48 775 $438 $0.57
Plantation East 2008 72 977 $534 $0.55
Ware Park 2016 64 891 $450 $0.51
Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 1083 $779 $0.72
Hillwood 1974 64 1150 $654 $0.57
Ware Park 2016 64 1057 $625 $0.59
THREE BEDROOM SORTED BY - AVERAGE RENT / MONTH
Apartment Community Year BuiltNumber of
UnitsSquare Feet
Average Rent/Month
Average Rent/ Square Foot
Chapel Ridge of Martin 2006 96 1083 $779 $0.72
Ware Park 2016 64 1057 $625 $0.59
Hillwood 1974 64 1150 $654 $0.57
THREE BEDROOM SORTED BY - AVERAGE RENT / SQUARE FOOT
3332
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Kentucky / Indiana Team5100 Maryland Way, #100 | Brentwood,
TN
T: 502.837.4100 | F: 615.523.4990
