The Life at Snapfinger Woods
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THE LIFEAT SNAPFINGER WOODS 149 UNITS | DECATUR, GA Primed Value-Add Asset on Atlanta’s Vibrant Eastside TABLE OF CONTENTS INVESTMENT SUMMARY / PG. 1 PROPERTY DESCRIPTION / PG. 15 LOCATION OVERVIEW / PG. 21 APARTMENT MARKET / PG. 29 FINANCIAL ANALYSIS / PG. 39 THE LIFE AT SNAPFINGER WOODS INVESTMENT SUMMARY 1 INVESTMENT SUMMARY THE LIFE AT SNAPFINGER WOODS OFFERING HIGHLIGHTS ATLANTA’S GROWTH CONTINUES Atlanta is winning key Fortune 500 firms, attracting Olive Tree is pleased to present the opportunity to acquire The fast-growing technology, and focusing on cutting- Life at Snapfinger Woods, a 149 unit apartment community edge development. The Life at Snapfinger Woods located in Decatur, DeKalb County, Georgia. This asset is situated 1 offers excellent connectivity to major Atlanta job in the rapidly expanding I-20 East Atlanta industrial corridor and hubs. offers convenient access to the metro’s largest employment hubs. Built in 1971, The Life at Snapfinger Woods offers expansive (1,510 HARTSFIELD- JACKSON AIRPORT average SF) floor plans in a high-growth submarket with minimal Hartsfield-Jackson is the largest job producer in the new supply growth which should support strong future investment state, generating 63,300+ high-paying positions on- site and 450,000+ metrowide, and delivering a $64.2B returns. 2 annual economic impact. NEW DEVELOPMENT DRIVESGROWTH THE LIFE AT SNAPFINGER WOODS Atlanta Sports Connection is set to break ground on a $200M sporting complex in 2018, which is expected A ddress 2717 Shell Bark Road to create 1,900+ jobs. The subject is also proximate to Decatur, GA 30035 3 the 5M SF Snapfinger Industrial Park. C ounty DeKalb County Number of Units 149Units SIGNIFICANT CAPITAL IMPROVEMENTS Year Built 1971 With the largest floor plans in its submarket, The Rentable Area 224,993 SF Life at Snapfinger Woods has seen significant capital Avg. Unit Size 1,510 SF improvements, setting the stage for improved 4 property performance. Site Size 25.60 Acres Avg. Market Rent* $1,023 MARKET- PROVEN VALUE ADD Avg. Market Rent/SF* $0.68 The subject trails direct competitors in average Occupancy* 94.0% effective rent per square foot by $0.16/ft. A new owner *As of 09/27/18 5 can spend $6K/unit to yield a minimum $189 average premium with38% ROI. 2 THE LIFE AT SNAPFINGER WOODS 1. ATLANTA’S GROWTHCONTINUES Top state Moving Next big tech Openings business destination hubs still for STEM # climate # in the nation # affordable # graduates 1 - Site Selection2017 1 - Penske, 2017 2 - Realtor.com, 2017 1 - WalletHub,2017 RECENT METRO ATLANTA RANKINGS #1 #1 #1 Metro for 1 of 10 best cities in the for distribution remote workers nation for open jobs job postings - Forbes, 2017 - Glassdoor, 2017 - Site Selection Group, 2017 ECONOMIC CAPITAL OF THE SOUTHEAST & GLOBAL BUSINESS HUB 9th 10th Projected to be 3rd 4th largest MSA in the largest economy in 6th largest concentration North American metro U.S., boasting a the U.S., according most populated of FORTUNE 500 area for competitiveness population of to the U.S. Bureau of metro area by headquarters of any in the transportation & 5.5M+ people Economic Analysis 2020 U.S. city logistics industries 3 INVESTMENT SUMMARY THE LIFE AT SNAPFINGER WOODS LOCATION PROVIDES EXCEPTIONALACCESS DRIVE TIMES DURING PEAK COMMUTING TIMES The Life at Snapfinger Wood’s location provides quick Drive Time Time - Peak- PeakCongestionCongestion 00 - 10- 10MinutesMinutes connectivity to East Atlanta, Downtown CBD, Emory/ 1010 - 20- 20MinutesMinutes CDC, Midtown, andDecatur. 2020 - 30- 30MinutesMinutes 3030 - 40- 40MinutesMinutes 40 - 50Minutes With this strategic location, five key employment centers are 40 - 50 Minutes within minutes of The Life at Snapfinger Woods even in peak commuting times. PERIMETER CENTER 125K JOBS The Life at Snapfinger Woods is embedded in one of Atlanta’s most prolific employment hubs, the I-20 East Industrial Corridor, providing the city with 29.4M SF of industrial space. BUCKHEAD This rapidly evolving employment hub will help attract future 100K JOBS UPTOWN investment and allow the area to continue to appreciate. DECATUR MIDTOWN 60K JOBS 100K JOBS EMORY/CDC (35 MINUTE DRIVE FROM SUBJECT) D O WNTO WN 65K JOBS HART SFIELD- JA C K SON AIRPORT 63K+ JOBS 4 THE LIFE AT SNAPFINGER WOODS 2. HARTSFIELD- JACKSON INTERNATIONAL AIRPORT SUMMARY OF AIRPORT IMPACT 2009 2013* JOBS Direct On-Site Jobs 58,000 63,291 Total Indirect Jobs 376,400 385,405 TOTAL REGIONAL JOBS 434,400 448,696 DOLLAR IMPACT Total Metro Atl $ Impact $58.2B $64.2B Total GA $ Impact $68.3B $70.9B INCOMES Airport-Generated Avg Income N/A $65,870 Air Cargo Related Avg Income N/A $64,728 *Latest Data Available 63,200+ 450,000+ $64.2B+ Jobs on Site Regional Jobs Impact Metro Economic Impact 5 INVESTMENT SUMMARY THE LIFE AT SNAPFINGER WOODS HARTSFIELD- JACKSON INTERNATIONAL AIRPORT: THRIVING ECONOMIC ENGINE Thirteen miles southwest of The Life at Snapfinger Woods, Atlanta’s renowned Hartsfield-Jackson International Airport is the largest job base in Georgia, employing 63,200 and injecting $64B into the regional economy. Achieving its 20th “world’s busiest” title in 2017, the airport hosted 103,902,992 passengers in 2017. ATL also tops the world in aircraft movements, with 879,560 operations in 2017. NEW GROWTH Georgia Int’l Delta Airlines Wells Fargo Check Atlanta Tradeport 1 Convention Center 2 HQ 3 Processing Center 4 Business Park AEROTROPOLIS DISTRICT • 122 Acres at NE corner of airport (former Hapeville Ford Plant) • Includes newly-opened Porsche HQ and $500M revamp of commercial tract to include 180K SF of Class A office space • Atlanta-based Capella Hotel Group recently opened a five-star 214-room Solis hotel adjacent 3 to Porsche 2 PORSCHE CARS NORTH AMERICA U.S. HQ 8 1 • $100M complex includes Technical Training CONRAC 4 6 Center, Classic Car Restoration and Display 5 Area, Business Center, restaurants, and Porsche 285 7 Experience Center with 1.6-mile test track 285 $6B CAPITAL IMPROVEMENTS COMPLETED • Fifth Runway, a new air traffic control tower (the world’s tallest), new integrated rental car center (CONRAC), and elevated ATL SkyTrain light rail transit • $1.4B 40-gate Maynard H. Jackson Jr. International Terminal opened in 2012, creating 1,500 jobs AIRPORT GATEWAY CENTER • $230M mixed-use project includes 1.1M SF of ATL SkyTrain Porsche North 5 Marriott Atlanta 6 7 Maynard H. Jackson 8 office, retail, and hotel Airport Gateway to Airport Jr. Int’l Terminal American HQ 6 THE LIFE AT SNAPFINGER WOODS 3. NEW DEVELOPMENT DRIVES GROWTH I - 20 EAST INDUSTRIAL HOT SPOT 124 The Life at Snapfinger Woods is located just 2.5 miles 278 8 from Dekalb Medical Hillandale, which offers 191K SF 7 of medical space. Immediate proximity to I-20 offers 6 2 1 3 quick access to Snapfinger Industrial Park’s 5M SF of industrial warehouses. 4 278 10 WELL CONNECTED ASSET OFFERS EASY ACCESS TO 5 EMPLOYMENT 11 9 THE LIFE AT • I-20 East Corridor contains over 14.3M SF of industrialspace. SNAPFINGER • Easy access to Hartsfield-Jackson via I-285 (13 miles), which 15 5 WOODS SNAPFINGER offers 63,300 jobs. INDUSTRIAL PARK (5M SF INDUSTRIAL) • New Atlanta Sports City expected to bring 2,000+ new jobs. 212 155 ATLANTA THE MALL AT 11 INDUSTRIAL OVER 200K SF 9 SPORTS CITY S T O N E C R E ST New $200M sports complex being 1 Marshall’s Distribution (780K SF) The Mall at Stonecrest has 1.3M SF of developed by the Atlanta Sports retail space and offers over 120 retailers. 2 2120 Lithonia Industrial Blvd (220K SF) Connection. • 3 miles from subject 3 Plaid Enterprises (282K SF) • 190-acre sports complex • 1.3M SF retail • Expected to bring 1,900+ new jobs 4 Kliklock-Woodman (220K SF) • Mall retail includes: Sears, Kohl’s, Dillard’s, and Macy’s • 28 soccer, football and baseball fields 5 5075 Minola Dr (200K SF) • 15,000-seat stadium 6 Dart Container Corporation (350K SF) 10 DEKALB MEDICAL HILLANDLE 7 International Paper Company (224K SF) Dekalb Medical Hillandale is a state-of- 8 Smurfit-Stome Container Corp (210K SF) the-art hospital located in Lithonia. • 2.7 miles from subject • 80 beds • $65M hospital built in 2005 7 INVESTMENT SUMMARY THE LIFE AT SNAPFINGER WOODS ATLANTA SPORTS CITY DEVELOPMENT SET TO BREAK GROUND IN2018 The Atlanta Sports City Complex will include a new entrance to Stonecrest Mall, Emory Healthcare facilities, and 300K-SF retail, hotels , meeting and event space. DeKalb County’s new sports playground will have a major economic impact on the county and the state with 1,937 new jobs. It is expected to be one of the largest facilities in the country with the ability to host 22 different sports. The $200M entertainment and recreational sports facility will feature a 15,000-seat professional soccer stadium, 22 soccer or multi-use fields, seven sports diamonds, and five indoor professional basketball courts situated on 190 acres at the southeastern side of the mall. HUGE ECONOMIC IMPACT An estimated 3M visitors annually to the complex will pump $105M into DeKalb County’s economy and have a $197M economic impact on Georgia. Additionally, the project will bring $80M in new demand to DeKalb County for lodging, food, and entertainment. Emory Healthcare and the Emory Sports Medicine Center will be bringing two facilities to the complex – anchoring a sports medicine pavilion, and constructing a separate medical office health park. 8 THE LIFE AT SNAPFINGER WOODS 3. NEWDEVELOPMENT DRIVES GROWTH (CONTINUED) REMARKABLE DEMAND FORLIMITED SUPPLY DEMOGRAPHICS SUMMARY The Asset is located in South DeKalb, which has seen a large 1-MILE 3-MILE 5-MILE Average HH Income $49,341 $61,560 $59,332 drop in high density housing developments during the last Expected Income Growth by 2022 8% 7.3% 8% 30 years.