Hidden Pines is tucked away in the pine trees just three miles from downtown Athens and the University of Georgia. The portfolio consist of 206 units (103 Duplexes) of a 240 unit community. It was assembled by the current owners over the last six years with the remaining owners being mostly local smaller investors each with a couple of duplexes. The property is stable, full and has increasing rents. The current owners own the corner duplexes and have signage at each entrance. There are no HOA fees or restrictive covenants. Below is a summary of the property.
Great Place to Live. Tenants love to live at Hidden Pines as the rents are still much lower than the majority of apartments in Athens and there is a real sense on community. There is plenty of places to walk and hike as there is direct access to a hiking trail on the back of the property. It is an easy commute to downtown and the university. While most the tenant base is not college students, we do house a good number of support staff for the college, local hospitals and the Caterpillar plant. Each one level unit offers a washer/dryer connection, patio and private yard! We allow pets and offer fenced back yards for an extra $25 a month (plus pet fee) so small pet owners are literally lining up and on a wait list to move in.
Increasing rents. The economy in Athens is strong and rents continue to increase. Hidden Pines is in a great position for continued increasing rents. Current market rent is $600-$700 for a two bedroom unit and Hidden Pines is well below this. Due to high land and construction costs, the only new rentals coming to the market are priced at nearly twice this rate allowing units to stay full and continue to pressure rents higher. There is a wait list and units rent immediately upon vacancy at asking price with zero concessions. Current owners increase existing tenant rents at least $25 per month at renewals and up to market upon new lease ups. The rent roll is increasing an average of $700 a month and this is expected over the next 2-3 years until rents catch up with market rent. With this upside in rent income the annual rental income is expected to be nearly $200,000 more in two years.
Stable Processes and Management. The on-site manager’s office is located near the entrance at 122 North Bluff Road, Athens. It is the left side of the duplex with the office in the front and materials in the back. The other side of the duplex is rented. The manager works on site but lives off site and is a full-time employee of the current property management company. The onsite maintenance staff consist of one full time maintenance person and contract labor as needed. Hidden Pines does not charge a security deposit but instead charges a non-refundable $400 leasing fee. This is fully earned prior to move in and does not need to be handled in a security deposit trust account.
Capital improvements. As the owners purchased the properties they renovated each vacant unit and the exteriors leaving a very well maintained and attractive property. Over half the roofs have been replaced in the last five years and most roofs are under twelve years old allowing new owners nearly a decade with little roof expenses. Nearly all HVAC and HWT heaters have been replaced during the last six years. The owners also replaced all flooring and appliances on vacant units during the first turn so most are in very good condition. Over the last two years the owners have started using Luxury Vinyl Planks and CVT in the common areas of the units to allow for at least a decade of turns with minimal replacement needed. The new owner should expect lower than average capital expenses for many years.
