Southernwood Apartments

Walkable to the University of Memphis campus - if you lived any closer you would have to enroll! Preapproved by lender (see document portal)!

23 units with a laundry facility. Intentional heavy turnover of tenants in 2023-2024 for apartment improvements. Floors and countertops have been replaced as needed along with other work to take the apartments to the next level. The property has been stabilized with tons of upside remaining for further improvements. The best of both worlds!

Average current rents for 2-bedroom one bath apartments are $906/month with surrounding market comps showing an average of $1,050/month with highs of $1,295 per month for 2-bedroom townhomes. Student housing on campus rent for an average of $750-850 per room. 

The offering includes 3 parcels, including two improved parcels and one vacant parcel with improved surface parking. The seller suggests that there is room for more apartments to be built on the extra parcel.  

Recovery on the horizon: President Jonathan Gray, of BREIT, says Blackstone is positioning for a rebound and focusing on rental housing, especially student housing. Wesley LePatner, who will take over as CEO of BREIT in January, highlighted the “structural undersupply” of student housing in the US, positioning it as a resilient asset class.

The student housing industry wrapped up a stellar leasing season with more than half of the Yardi 200 schools achieving at least 95% occupancy. Rent growth has averaged 5.8% during the leasing season.

Emerging Markets in Technology and New Job Growth:

• Lawrence Yun, Chief Economist for the NAR predicted a spike in rents for the Memphis area given the job projections and lack of new construction on the horizon.
• Booming Job Growth: Elon Musk’s Colossus has opened a mega AI Center in Memphis
• PathAI, another leading AI company, has recently expanded into the city. 
• Dell Computer, Super Micro, and Nvidia have all announced coming to Memphis
• Strategic Economic Shift: The Memphis Chamber of Commerce has branded the city as America’s Distribution Center and The Digital Delta, signaling a shift toward a thriving tech and logistics hub.
• Healthcare Expansion: St. Jude’s Hospital is investing $13 billion into a massive expansion, while Regional One Health just announced a new $1 billion hospital campus.
• Crime Reduction: Crime is down by double digits.
• High Rental Demand & ROI: With some of the lowest housing costs in the US, a growing economy, rising job opportunities, and an increasing working population, Memphis will see an unprecedented demand for rentals. The result? Stronger cash flow potential, and higher rents for investors with significant appreciation to follow.