The Logan Townhouse Development

The Logan High Rise Development

Knoxville, Tennessee

The Logan is a to-be-built luxury high rise development in beautiful downtown Knoxville. The 6 story, 15 unit, 20,250 sq. ft. complex offers luxury living with 1,150 sq. ft. of Retail Space. The asset is completely differentiated within the market with commanding panoramic views of campus, the river and local mountains, proximate location to entertainment venues, innovative design, and best in market product features, including all the finest amenities and interior finishes

The Logan Photo Gallery

The Logan Townhouse

Overall

SPECIFICATIONS
  • Valued at: $7,900,000
  • Units: 15
  • Style: Six Story, Fifteen Townhouses
  • Property Type: Land
  • Property Sub-Type: Commercial
  • Proposed Use: Multi-Family
  • Sale Type: Investment or Owner User
  • Total Lot Size: 18,000 Sq. Ft.
  • Sale Conditions: All Cash or Finance
  • Zoning Description: R-3 / D-1
DEMOGRAPHICS

The project's core site location is strategically located between the UT campus, less than a quarter of a mile away, and an abundance of recreational, shopping, dining, and nightlife venues. Notably, the site is within walking distance of the Neyland Stadium, home of the University of Tennessee football team, as well as the entirety of vibrant downtown Knoxville and its primary entertainment areas: Market Square, Gay Street and Old City.

ATTRACTIONS
  • Central and walking distance from:
  • River Walk
  • Gay Street
  • Old City
  • Market Square
  • Knoxville Area Transit Station
  • Hotels and Iconic Restaurants
  • Tennessee Theatre
  • Lawson McGhee Library
  • Duncan Federal Building
  • Bijou Theatre
  • First Tennessee Plaza
  • Sunsphere
  • World's Fair Park
  • Knoxville Convention Center
  • Blunt Mansion

Costs & Profit

Project Cost

Land: $400,000

Architect including Structural and MEP $89,000

Civil Engineering $10,000

Soils Engineering $12,000

Project Management $240,000

On-sites $52,000

Off-sites $90,000

City Fees; Building Permit $90,000

School Fees $35,000

Construction Costs $3,948,750

Loan Fee $60,000

Developer Overhead $36,000

Marketing $450,000

Developer Fee $60,000

Financing/Interest Reserve $244,000

TOTAL PROJECTED COST $5,816,750

 
Value

Total Project Cost $5,816,750

Competed Value $7,905,000

Percent 35.90%

PROFIT $2,088,250

What Our Investors Can Expect

Income

RENTAL INCOME

Monthly Rents: $36,750
Annual Rents: $441,000
Other Annual Income: $21,60

RENTAL EXPENSES

Annual Vacancy: $24,210
Annual Expenses: $146,380
Annual Mortgage Payments: $274,703

 

Assumptions

Rental Growth Rate: Variable
Expense Growth Rate: Variable
Property Growth Rate: 4.00%
Marginal Tax Rate: 0.00%
Capital Gain Tax Rate: 0.00%

Financial Ratios

Year 1 Financial Ratios

Debt Coverage Ration (DCR): 1.25

Capitalization Rate Based on Cost: 5.39%

Capitalization Rate Based on FMV: 3.81%

Value of Property Using this Cap Rate: $7,840,260

Cash on Cash Return before Taxes: 5.31%

Cash on Cash Return after Taxes: 5.31%

Gross Rent Monthly Multiplier (GRM): 213.26

Year 5 Financial Ratios

Debt Coverage Ration (DCR): 1.32

Capitalization Rate Based on Cost: 6.25%

Capitalization Rate Based on FMV: 3.78%

Value of Property Using this Cap Rate: $9,088,343

Cash on Cash Return before Taxes: 7.64%

Cash on Cash Return after Taxes: 7.64%

Gross Rent Monthly Multiplier (GRM): 213.26

Year 10 Financial Ratios

Debt Coverage Ration (DCR): 1.59

Capitalization Rate Based on Cost: 7.53%

Capitalization Rate Based on FMV: 3.74%

Value of Property Using this Cap Rate: $10,950,662

Cash on Cash Return before Taxes: 14.04%

Cash on Cash Return before Taxes: 14.04%

Gross Rent Monthly Multiplier (GRM): 213.26

$1,163,350

Projected Down Payment / Investment

20%

Percentage of Cost

14.72%

Fair Market Value (FMV)

$4,653,400

Initial Loan Balance / Investment

80.00%

Percentage of Cost

58.87%

Fair Market Value (FMV)

Loan

Amount: $4,653,400
Permanent Loan
Rate: 4.25%
Term (Years): 30
Payment: $22,891.93

Get Started Today.

Contact Us