Multifamily

Madison Park Apartments

110 Pine Knoll Dr, Ridgeland, MS 39157

Listing Price: Request For Offer

Number of Units
264
Occupancy
91.0%
Gross SF
236,802

Investment Overview

Ridgeland is located in the northeast submarket of metro Jackson. It is the premier area of the MSA due to upscale neighborhoods, high barriers to entry, top-rated school districts, convenient access to primary thoroughfares, area employment centers, varied retail and restaurant providers and outdoor recreation areas including the 50 square mile Ross Barnett Reservoir. The lack of new supply is due to a lack of available land suitable for new development and the local municipality's negative attitudes toward multifamily dwellings. The lack of new multifamily construction creates scarcity on the supply which supports strong occupancy and rent growth. The 2000 Census revealed that 79.17 percent of employees are employed in white-collar occupations in this geography, and 22.33 percent are employed in blue-collar occupations. In 2019, unemployment in this area was 3.61 percent. In 2000, the average time traveled to work was 24 minutes. In 2019, the median household income in the one-mile radius was $46,946. The median household income in the one-mile has changed by 24.06 percent since 2000. It is estimated that the median household income in the one-mile will be $53,814 five years from now, which represents a change of 14.63 percent from the current year. The current year per capita income in the one-mile is $35,286 compared to the US average which is $32,356. The current year average household income in the one-mile is $70,549; the US average is $84,609. Madison Park is within 2.5 miles of Interstate 55, Interstate 220 and Highway 51, all major thoroughfares providing access to the entire MSA. The property is located: -Five Miles to C Spire Corporate Headquarters (1,000 Employees) -7.5 Miles to The University of Mississippi Medical Center (8,000 Employees and 3,000 Students) -Less Than a 20-Minute Drive to Nissan Canton Manufacturing (6,400 Employees) Recognizable retailers nearby: -Freshway Produce (0.8 mile) -Walgreens (1.0 mile) -Kroger (1.2 miles) -Wal-Mart Supercenter (2.0 miles) and more than a dozen local and chain restaurants including Chick-Fil-A, Amerigo Italian Restaurant, Jason's Deli, Zaxby's, Doe's Eat Place, Shapley's Restaurant and more. Northpark Mall, a shopping mall with 120 shops and numerous restaurants, is located just 2.2 miles from the property. Ridgewood Court shopping mall features a Bed Bath & Beyond, TJ Maxx, Old Navy, Big Lots and more and is located 2.3 miles away. Numerous parks are within two miles of the property including Lakeshore Park, Friendship Park and Freedom Ridge Park. PHYSICAL CHARACTERISTICS Since purchasing the property in October 2018, current ownership has remodeled 167 units with the following scope of work at a cost of $5,500 per unit: stainless steel appliance package, LVP flooring, new cabinetry and countertops, tubs and vanities. These units are labeled on the rent roll as PR meaning "Premium Renovated" and demonstrate an average potential rent increase of $85. Several of the roofs were damaged by a storm recently. Current ownership is in a dispute with the insurance provider regarding the claim. At this time, it is not known if the roof claims will be resolved prior to closing. Prospective buyers should independently assess and budget accordingly for the condition of the roofs. OCCUPANCY TRENDS The property recently achieved 91 percent physical occupancy after going through a renovation and lease-up of 167 units. Additional units are leasing up quickly upon completion. RENT ANALYSIS The rental rates at the property are consistently lower than those at the competition. According to a rent analysis of 17 of its closest competitors, one-bedroom units at the property average $701 versus $769 at the competition; two-bedroom units at the property average $781 compared to $903 at the competition; and three-bedroom units at the property average $905 versus $1,065 at the competition. This data suggests that there is tremendous room for rent growth at the property. Upon full implementation of the existing program, the monthly gross collections will increase by approximately $22,382.

Investment Highlights

  • Property located in the supply constrained submarket of Ridgeland (Jackson, MS MSA)
  • Close proximity to some of the region's largest employers
  • Proven on property value-add strategy demonstrating $85 premium over in-place rents

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Associate

    License(s): MS: 15586

    Mississippi

Listing Price: Request For Offer

Number of Units
264
Occupancy
91.0%
Gross SF
236,802

Investment Highlights

  • Property located in the supply constrained submarket of Ridgeland (Jackson, MS MSA)
  • Close proximity to some of the region's largest employers
  • Proven on property value-add strategy demonstrating $85 premium over in-place rents

Investment Overview

Ridgeland is located in the northeast submarket of metro Jackson. It is the premier area of the MSA due to upscale neighborhoods, high barriers to entry, top-rated school districts, convenient access to primary thoroughfares, area employment centers, varied retail and restaurant providers and outdoor recreation areas including the 50 square mile Ross Barnett Reservoir. The lack of new supply is due to a lack of available land suitable for new development and the local municipality's negative attitudes toward multifamily dwellings. The lack of new multifamily construction creates scarcity on the supply which supports strong occupancy and rent growth. The 2000 Census revealed that 79.17 percent of employees are employed in white-collar occupations in this geography, and 22.33 percent are employed in blue-collar occupations. In 2019, unemployment in this area was 3.61 percent. In 2000, the average time traveled to work was 24 minutes. In 2019, the median household income in the one-mile radius was $46,946. The median household income in the one-mile has changed by 24.06 percent since 2000. It is estimated that the median household income in the one-mile will be $53,814 five years from now, which represents a change of 14.63 percent from the current year. The current year per capita income in the one-mile is $35,286 compared to the US average which is $32,356. The current year average household income in the one-mile is $70,549; the US average is $84,609. Madison Park is within 2.5 miles of Interstate 55, Interstate 220 and Highway 51, all major thoroughfares providing access to the entire MSA. The property is located: -Five Miles to C Spire Corporate Headquarters (1,000 Employees) -7.5 Miles to The University of Mississippi Medical Center (8,000 Employees and 3,000 Students) -Less Than a 20-Minute Drive to Nissan Canton Manufacturing (6,400 Employees) Recognizable retailers nearby: -Freshway Produce (0.8 mile) -Walgreens (1.0 mile) -Kroger (1.2 miles) -Wal-Mart Supercenter (2.0 miles) and more than a dozen local and chain restaurants including Chick-Fil-A, Amerigo Italian Restaurant, Jason's Deli, Zaxby's, Doe's Eat Place, Shapley's Restaurant and more. Northpark Mall, a shopping mall with 120 shops and numerous restaurants, is located just 2.2 miles from the property. Ridgewood Court shopping mall features a Bed Bath & Beyond, TJ Maxx, Old Navy, Big Lots and more and is located 2.3 miles away. Numerous parks are within two miles of the property including Lakeshore Park, Friendship Park and Freedom Ridge Park. PHYSICAL CHARACTERISTICS Since purchasing the property in October 2018, current ownership has remodeled 167 units with the following scope of work at a cost of $5,500 per unit: stainless steel appliance package, LVP flooring, new cabinetry and countertops, tubs and vanities. These units are labeled on the rent roll as PR meaning "Premium Renovated" and demonstrate an average potential rent increase of $85. Several of the roofs were damaged by a storm recently. Current ownership is in a dispute with the insurance provider regarding the claim. At this time, it is not known if the roof claims will be resolved prior to closing. Prospective buyers should independently assess and budget accordingly for the condition of the roofs. OCCUPANCY TRENDS The property recently achieved 91 percent physical occupancy after going through a renovation and lease-up of 167 units. Additional units are leasing up quickly upon completion. RENT ANALYSIS The rental rates at the property are consistently lower than those at the competition. According to a rent analysis of 17 of its closest competitors, one-bedroom units at the property average $701 versus $769 at the competition; two-bedroom units at the property average $781 compared to $903 at the competition; and three-bedroom units at the property average $905 versus $1,065 at the competition. This data suggests that there is tremendous room for rent growth at the property. Upon full implementation of the existing program, the monthly gross collections will increase by approximately $22,382.

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Associate

    License(s): MS: 15586

    Mississippi

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