Hopper Communities Charlotte BTR Portfolio

Scaled Build-to-Rent Portfolio with Operational Efficiencies 

• 3 individually-platted, urban infill communities totaling 226 units offers 3 diverse geographies within the booming Charlotte MSA
• All three properties are located within 15 minutes of one another, allowing seamless property management synergies in marketing, maintenance, payroll and more
• Homogeneous product, floor plans, and building design simplifies marketing strategy, while submarket diversity offers broad renter appeal

“Coiled-Spring” Micro Locations 

• The assets are strategically positioned in three of the city’s most dynamically evolving submarkets, NoDa, Eastland, and Wesley Heights
• New mixed-use developments, infrastructure improvements, and food & beverage amenities are buoying submarket popularity and land values, making home purchases less attainable and shifting residents toward higher-end rental options
• Premier BTR Product at Discount to Replacement Cost
• Property features include 2-car garages, private rooftop terraces, private fenced yards, EV charging outlets, and high-end kitchen and bath finishes
• Current replacement costs exceeds $500,000 per unit, driven by land scarcity, rising hard costs, and rapid appreciation for infill townhome retail sales

Mark-to-Market Rent Upside Through 2nd-Generation Leasing 

• All three assets are stable or nearing stabilization, positioning new ownership to increase rents
• Incoming ownership will benefit from $400 to $900 in monthly rent headroom when comparing 3BR rents at nearby townhome and apartment comparables

$1,200 - $2,300+ Discount to Ownership 

• With an average sales price of $570,000 for a comparable townhome, in-place rents are at a $1,200 to $2,300 monthly discount to owning comparable nearby townhomes

1. ​​​​​​​While elevated interest rates are driving up monthly payments for prospective homebuyers, the scarcity premium for any home purchase option in Charlotte below $750,000 without moving 15-25 miles outside of the city is the larger factor that is unlikely to change in the near future

Affluent Tenant Base Highlights Rent Potential 

• The properties’ premium finishes and prime locations have attracted average household incomes on-site from $125,000 to $160,000 
• Using the standard 3x income qualification, residents can comfortably afford $2,200 to $2,500 more a month compared to current in-place rents 

Renowned Developer 

• Hopper Communities is a highly acclaimed local developer, winning Developer of the Year in 2023 and 2024 and Builder of the Year in 2021 and 2022 
• Their commitment to quality and design is evident in the success of their nearby sister communities, where homes have sold from $550k to $1.5M+ 

All units have National Green Building Standard (NGBS) bronze level green status