Chandler Oaks

Chandler Oaks is a collection of 100 attractive one and two-bedroom apartments, which have been fully refurbished for the student market and is set in 8.5 acres of oak woodland, adjacent to the local running track.

The development is located just one mile away from Limestone College, in the city of Gaffney, close to transportation links, shopping and entertainment facilities. Each apartment has undergone renovation costing in the region of $30,000 per unit. This work has included replacement of roofs, windows, electrical wiring, plumbing and internal walls. Brand new kitchens and bathrooms have also been fitted, providing the highest standard of living at fair market prices.

Chandler Oaks represents an opportunity for private individuals to enter the lucrative US student property market with minimum hassle, managed risk and attractive potential returns. The low level of PBSA accommodation available in the US (9% of all student accommodation), coupled with the continued demand for places has led to a severe shortage in supply. Whilst the American REIT’s lead the $2.6 billion p.a. charge, there still remains massive opportunity in areas with little or no PBSA.

The project already has a five-year tenant agreement in place from Limestone College for 63 of the apartments, and the balance is being used to rent directly to third-year students. Chandler Oaks already has a waiting list of third year students ready to move in as soon as occupancy is available.

Other key features of the investment are:

• Apartment with its own deed and title
• In perpetuity leasehold (no end date to leasehold)
• An 8% net annual yield (paid quarterly), warrantied until 2020
• Monthly rent of $550 for a one-bedroom and $730 for a two-bedroom
• Fully managed by an existing local operator, including maintenance and finding tenants
• Opportunity to renew university lease at the end of five-year term, or rent as a direct private rental (apartments are not covenanted as student accommodation). Current market rates for 2 bedroom units are in excess of $900 per calendar month.
• Net returns of up to 10% can realistically be expected. All accounts will be reviewed and income above the assured 8% paid to investors on a quarterly basis

The project comes with an onward-sale contract at the end of the 5 year term, giving investors the option to sell their units to the on-site management company at 112% of the purchase price.