Gardenwalk of Camden

Gardenwalk of Camden is a 44-unit vacant apartment complex offering an exceptional opportunity for a value-add multifamily redevelopment in Camden, Arkansas. With major exterior improvements already made, including new roofs and new/repaired siding, investors can focus on interior renovations to unlock the Property’s full potential.

Property condition: while the Property’s exterior has seen improvements, there are three outstanding items necessary of note.

1.      Each unit will need to be brought to the fire code. This will cost $166,000. A quote can be provided upon request.

2.      New “fire lines” will need to run from the fire hydrants to each building. This will cost $21,000. A quote can be provided upon request.

3.      The Property has two sewer pumps that will need be replaced for a total of $47,364. A quote can be provided upon request.

Interior Renovation Scope: Most units range between moderate to heavy cosmetic renovation, while some units will necessitate complete gut rehabs. A detailed breakdown can be provided upon request. Investors can implement modern design features, updated fixtures, and appealing finishes to push rental value.

Projected Annual Gross Rental Income:

·      34 2Bd/1Ba Units: $800/month x 34 units x 12 months = $326,400

·      10 3Bd/1Ba Units: $900/month x 10 units x 12 months = $108,000

·      Total Gross Potential Rental Income: $434,400 annually

The Pro Forma value of $3,300,000 was calculated using a 7.00% cap rate on the Pro Forma NOI of $229,761. $3,300,000 represents $75,000/unit which is in-line with other similar tertiary market sale comps. The projected purchase price and renovation cost of $1,972,000 ($44,818/unit) provides a healthy investor spread and provides a margin for any project overruns or unexpected expenses. Camden, AR has an estimated renter population of nearly 42% indicating a strong demand for rental housing.

MARKET HIGHLIGHTS:

Lockheed Martin in Camden, AR

Lockheed Martin’s Camden Operations is a major economic engine in the region. As one of the largest employers in Camden, the facility specializes in the production of defense-related technologies, particularly in missile and fire control systems. Key programs include the manufacturing of HIMARS (High Mobility Artillery Rocket Systems), PAC-3 Missiles, and various other advanced military systems. Local Impact: The presence of a global defense contractor like Lockheed Martin has led to increased demand for housing in the Camden area, both for employees and contractors working on-site. This positions Gardenwalk of Camden as a prime opportunity for capturing rental demand from this growing workforce, especially once renovations are complete and the property is restored to full occupancy.

Lithium Mining in the Smackover Formation

The Smackover Formation, located in southern Arkansas, is quickly emerging as a critical site for the development of lithium extraction. With the global demand for electric vehicles (EVs) and renewable energy storage solutions on the rise, lithium – a key component in battery production – has become a highly valuable resource. Strategic Importance: The Smackover Formation is one of the most promising lithium brine resources in the U.S., and companies are actively investing in extraction technologies to tap into this reserve. The formation holds significant lithium reserves, and several companies, including Standard Lithium, are conducting extraction and testing operations in the area. Economic Growth Potential: As the lithium industry in Arkansas continues to expand, the region could see significant economic benefits, including job creation, infrastructure investment, and increased housing demand. The Camden area is expected to benefit as the lithium mining operations attract skilled workers.

Highland Industrial Park

Camden, AR is home to many major defense contractors, most notable Lockheed Martin as noted above. In addition to Lockheed Martin, the following companies are tenants at Highland Industrial Park: Aerojet Rocketdyne, General Dynamics, Raytheon, Esterline Defense. Highland Industrial Park encompasses nearly 19,000 acres and contains over 1,000 buildings with more than 5.5 million square feet of space for manufacturing, testing, and warehousing. Approximately 2,500 employees work at Highland Industrial Park across the various defense contractors and other companies located within the park. Economic Impact: Highland Industrial Park has created a skilled workforce in Camden specializing in precious manufacturing for defense industries and has attracted supporting business like B&M Paint, Camden Machine Tool and Die, and Highland Machine Works. The Camden area is well positioned to attract a highly skilled workforce in an ever-demanding industry.