59 units are renovated with new cabinets, formica countertops, black appliances, updated lighting packages, new tub surrounds, painted bathroom walls, and new bathroom vanities. Additionally, 6 units have all of these upgrades plus the wall between the kitchen and living room was removed to open up the floor plan. The upgraded units are receiving a $50 rent premium, allowing new ownership the opportunity to continue the renovation to potentially increase NOI.
Well Maintained Asset
Current ownership has spent almost $20,000/unit maintaining and improving the asset over the length of ownership. Capital improvements include interior upgrades, HVAC repair and replacement, Plumbing repairs, roof/gutter replacement, exterior painting, siding replacement, door/screen/window replacement, concrete/stair/balcony repair, and parking lot repair among many others.
Below Market Rents
Maple Creek sits below market rent of nearby assets allowing new ownership the potential to increase NOI through rent increases. Submarket rents are anticipated to grow by 17.2% in 2021 and 7.8% in 2022, according to CoStar projections.
Proximity to Nashville Demand Drivers
Maple Creek is ideally positioned within 20 minutes of some of multiple major demand drivers, including:
$1.2 Billion Oracle Job Announcement
Oracle announced a new campus hub which will bring 8,500 jobs with an average salary of $110,000/year to Nashville, the largest job announcement in Tennessee history. Oracle also said over 11,500 ancillary jobs would be created plus another 10,000 temporary jobs through construction and other support services.
$1.2 Billion Airport Expansion
The property is located near Nashville International Airport, which is in progress on a $1.2 billion expansion plan. The renovation will include more parking, larger baggage claim and ticketing areas, an expanded concourse, new international facilities, and a hotel. By 2023, BNA passenger traffic will grow from 18 million to more than 23 million.