Plantations at Haywood, LLC

Available for §1031 exchange w llc investment

Offering Purchase Price: $45,540,000

Offering Price Per SF: $81,032.03

  • Purchase Date: 2nd Quarter 2008
  • Offering LTV: 53.10%
  • Offering Price Cap Rate: 5.92%
  • 1st Year Cash Flow: 6.23%

Plantations at Haywood is a 562-unit garden style apartment community in Greenville, South Carolina, approximately two miles east of the city’s central business district. Situated on nearly 38 landscaped acres, the approximately 662,000-square-foot property consists of 40 residential buildings, and separate buildings for both the clubhouse and the leasing center.

Available for §1031 exchange w llc investment

Built in three phases in 1981, 1991 and 2001, Plantations at Haywood features numerous community amenities, including three swimming pools, three tennis courts, onsite laundry, an outdoor spa, picnic areas, a car care center, a playground, fitness center, and a sports court with walking track.

Property Summary

Plantations at Haywood is a 562-unit garden style apartment community in Greenville, South Carolina, approximately two miles east of the city’s central business district. Situated on nearly 38 landscaped acres, the approximately 662,000-square-foot property consists of 40 residential buildings, and separate buildings for both the clubhouse and the leasing center. Built in three phases in 1981, 1991 and 2001, Plantations at Haywood features numerous community amenities, including three swimming pools, three tennis courts, onsite laundry, an outdoor spa, picnic areas, a car care center, a playground, fitness center, and a sports court with walking track. The property offers spacious floor plans and an average unit size of approximately 1,200 square feet. Individual amenities include washer/dryer connections, screened-in porches/ patios or sunrooms, wood burning fireplaces, ceiling fans, and exterior storage. Plantations at Haywood offers tenants ample parking with 902 parking spaces, which results in a parking ratio of 1.6 spaces per unit. The property is currently 96 percent occupied.

Property Information

  • Address: 135 Haywood Crossing Drive Greenville, SC 29607
  • Building Type: Multifamily
  • Year Built: Phase I: 1981, Phase II: 1991 and Phase III: 2001
  • Total SF: 662,038
  • % Leased: 96%

TIC Offering

  • Offering Size: $21,360,000
  • Price per 1% Ownership: $213,600 equity and $241,800 assumed debt
  • Minimum Investment per SPE: 3.00% = $640,800 equity and $725,400 assumed debt for a total purchase price of $1,366,200
  • Suitability: Accredited Investors Only

LLC Offering

  • Offering Size: $1,068,000
  • Price Per Unit: $5,000
  • Minimum Investment: $25,000
  • Suitability: Accredited investors only

Property Highlights

  • As of April 30, 2008, the property was approximately 96 percent occupied and the manager believes that occupancy rates will remain high during the holding period.
  • The property is conveniently located near many retail and employment centers as well as interchanges for major interstates. In addition, the property is near Downtown Greenville, which has experienced growth and revitalization as evidenced by its new hotels, condominium buildings, and arena. The property is also located near several areas expected to experience growth in the future, including the ICAR and Millennium campuses.
  • The property has recently completed residing and roof replacement in nearly all of its Phase II buildings, exterior carpentry repairs on its Phase I buildings, and other exterior maintenance including sidewalk repairs and repainting metal railings, which will allow the company to focus its capital expenditures on unit and amenity upgrades rather than addressing deferred maintenance.

Location Information

Combined with mild winters, large lakes for boating and fishing, more than 200 mountain waterfalls and a dynamic business community, Greenville, South Carolina is a booming community located midway between the cities of Atlanta, Georgia and Charlotte, North Carolina. Greenville’s economy was formerly based largely on textile manufacturing, and the city was once known as “The Textile Capital of the World.” However, today it is an active business community anchored by a combination of advanced manufacturing, automotive, healthcare, technology and financial firms. In addition, Greenville is one of the leading engineering centers in the country. The North American headquarters for Michelin, the U.S. manufacturing arm of BMW, and the center of operations for South Financial Group are all located in Greenville, South Carolina.

Apartment Market

  • According to REIS, the vacancy rate among Greenville apartment communities declined from 12.2 percent in the first quarter of 2005 to 7.7 percent in the fourth quarter of 2007.
  • According to REIS, the property is located in the South Greenville County submarket. As of the fourth quarter of 2007, the submarket had a vacancy rate of 9.0 percent. The South Greenville County submarket also experienced effective rent growth of 3.7 percent in 2007.
Economic Trends
  • Greenville’s proximity and lower cost of living compared to Atlanta and Charlotte, as well as the Port of Charleston, have attracted many jobs and facilities to the region.
  • The Greenville Metropolitan Statistical Area (MSA) consists of Greenville County, Laurens County and Pickens County. According to Census Bureau estimates, the Greenville MSA had a population of 613,828 as of July 1, 2007, representing a 2.22 percent increase since July 1, 2006.

ABOUT Triple Net Properties, LLC

Triple Net Properties, LLC has time-tested experience in real estate syndications, acquisitions, development, construction, leasing and property management. Triple Net currently manages a growing portfolio of over 34 million square feet of property in 28 states valued at more than $4.6 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 249 properties to date. Triple Net and affiliates have sold 90 properties for over $2.0 billion since 2000.

Triple Net Properties, LLC is a wholly-owned subsidiary of NNN Realty Advisors, Inc., a nationwide commercial real estate asset management and services firm.