Well-Maintained Asset with Pleasing Curb Appeal

Built in 1983, Cherry Tree Hill benefits from durable construction featuring brick exteriors with wood accents, pitched roofs, and exterior hallways. The asset’s well-maintained condition combined with its mature landscaping and enduring architecture provides attractive curb appeal to prospective tenants.

The property has a full swim/tennis amenity package with a stand alone clubhouse/leasing office, tennis court, swimming pool, and laundry facility.

Cherry Tree Hill’s 152 one- and two-bedroom units are appointed with fully equipped kitchens with “wood-look” laminate countertops, ceramic tile tub surrounds, and walk-in closets.

Close-in Location with Instant Interstate and Retail Access

Located just minutes northeast of downtown Macon, Cherry Tree Hill has excellent accessibility to two interstates, a variety of retail, and the Macon CBD. Nearby Gray Highway, one of Macon’s major arteries, provides residents with a direct connection to downtown Macon, Interstate 16/Interstate 75, and numerous retail options including a Wal-Mart Supercenter, all under three miles from the property.

Residents enjoy superior regional connectivity via Interstates 16 and 75. Interstate 75 offers a direct commute 75 miles north to Atlanta, and Interstate 16 connects residents to Savannah and its prolific port, 150 miles to the southeast.

Solid Performing Asset with Mass Appeal

Cherry Tree Hill offers investors the opportunity to acquire a quality, attractive, workforce-housing asset with solid operations and cash flow at the bottom of an improving market.

Cherry Tree Hill is currently 92% occupied and has a history of stabilized operations. Its central location, well-kept condition, and low rental pricing attract a wide variety of tenants, resulting in stable occupancy and a low turnover rate of 50-60%.

In place numbers offer a generous cash on cash return.

Proven Rental Upside and Potential for Increasing Collections

The current owner has successfully pushed rents $60 a month for two-bedroom units by installing washer/dryer connections. A new owner could raise rents on the remaining 24 two-bedroom units by continuing washer/dryer connection installation.

Three one-bedroom and eight two-bedroom fire/water damaged units have been renovated with white cabinets, faux-granite laminate countertops, and new carpet and vinyl. Owner receives a premium of $25 per month for renovated units. As the market improves, a new owner could institute a low-cost renovation program and push rents at Cherry Tree Hill even further.

There is potential to raise collections at Cherry Tree Hill by passing through the water utility expense to tenants via a RUBS or flat rate system. Two of the property’s nearby competitors, Highland Hills and Overlook Gardens, have implemented RUBS systems and now receive partial reimbursements for water expenses.

New Employment Coming to Macon

Kumho Tire, part of Korea’s 7th largest conglomerate, Kumho Asiana Group, recently completed a one million square foot state of the art tire manufacturing facility in the Sofkee Industrial Park in Bibb County. The $225 million facility is expected to create 450 new jobs.

In 2010, Bombardier Aerospace will open a maintenance, repair, and overhaul operation at the Middle Georgia Regional Airport in Macon, Bibb County, Georgia. The Canadian based transportation giant will invest $2 million, employ 180 maintenance and support personnel, and occupy a 91,808 SF facility.

Mage Solar GMBH, a German manufacturer of solar products, has announced that it will open a new plant in Bibb County and hire 350 employees over the next five years.