NB Molly Barr, DST

1011 Molly Barr Road  Oxford, Mississippi 38655

Total Offering Price $25,777,637

Investor Equity $11,299,699

  • Total Loan Amount $14,477,938
  • Loan-to-Value 56.1%
  • Minimum Investment $50,000
  • 1st Year Targeted Cash-on-Cash Return 6.75%

Molly Barr Trails and Molly Barr Ridge are two adjacent student housing properties near Ole Miss in Oxford, MS. The properties boast a track record of high occupancy and both are currently 100% leased for the 2016-17 school year, both with 12-month leases.

1011 Molly Barr Road  Oxford, Mississippi

The properties have newer construction and are fully amenitized. Molly Barr Trails was built in 2012. Molly Barr Ridge is just over a year old having been completed in August 2015.

Property Summary

Molly Barr Trails and Molly Barr Ridge are two adjacent student housing properties near Ole Miss in Oxford, MS. The properties boast a track record of high occupancy and both are currently 100% leased for the 2016-17 school year, both with 12-month leases. The properties have newer construction and are fully amenitized. Molly Barr Trails was built in 2012. Molly Barr Ridge is just over a year old having been completed in August 2015.

Each unit features a bathroom & bedroom for each student, nine-foot ceilings, washers and dryers, modern appliances and furnished common areas. The properties also feature a sparkling pool, lounging area, fitness center and surface parking with a slot for each student.

Combined the two properties have 125 units and 303 beds total. Each lease is signed by the bed with parental guarantees. Molly Barr Trails consists of 72 units that are all 2 bed / 2 bathroom (144 beds total). The average monthly rent per bed is $587 or $1,174 per unit. Molly Barr Ridge consists of 53 units, all 3 bed / 3 bath (159 beds total). The average monthly rent per bed is $551 or $1,652 per unit.

The properties are among some of the closest to the Ole Miss campus and sit at the beginning of the Oxford Depot Trail. There is also large hiking and biking trail that leads right up to campus and the famed Oxford Square. Molly Barr Ridge has roughly 80% of its beds leased each year by way of master lease with a local sorority.

Loan Details

3.92% 10-year fixed interest rate loan. Non-recourse. 30-year amortization, 5 years interest-only. Fannie Mae Assumable. 

NB Molly Barr, DST

Targeted Benefits

NB Molly Barr, DST
NB Molly Barr DST
  1. 6.75% 1st Year Targeted Cash-on-Cash Return
  2. Current Occupancy : 100% for 2016-17 School Year (12 mos . Leases )
  3. Tax efficiency through depreciation
  4. Ole Miss: over 45% Enrollment growth since 2008

                                        Property Profile

Molly Barr Trails

  • Total Units: 72
  • Total Beds: 144
  • Unit Mix: 2 Bedroom / 2 Bath
  • Unit Size: 1,043 SF
  • Parking: 150
  • Year Built: 2012
  • Amenities: Swimming Pool, Fitness Center, Outdoor Grill Area, On Site Transit Stop
Molly Barr Ridge
  • Total Units: 53
  • Total Beds: 159
  • Unit Mix: 3 Bedroom / 3 Bath
  • Unit Size: 1,400 SF
  • Parking: 165
  • Year Built: 2015
  • Amenities: Swimming Pool, Fitness Center, Outdoor Grill Area, On Site Transit Stop

 

 

Market

Ole Miss has experienced 22 consecutive years of rising enrollment. Since 2008, enrollment has grown from just over 13,000 to over 25,000 today. For Fall 2016, enrollment was up 412 students or 1.7%. Nelson Brothers believes that the University will continue a slow but steady pattern of enrollment growth. Our expectation is that with limited new projects in the works, occupancy rates will tighten as demand continues to grow.

ABOUT Nelson Brothers

16B Journey | Aliso Viejo, CA 92656 (800) 580-1031

Current Management Portfolio At-A-Glance:

Founded in 2007, Nelson Brothers specializes in what the firm considers to be well-positioned student housing properties. Headquartered in Orange County, CA, Nelson Brothers manages over $500 million in real estate with more than 100 employees.

Get Access
Call Now