Marcus & Millichap, as exclusive advisor, is pleased to present the Sunny Side Estates; a USDA/HUD 45-unit, 1979 built garden apartment community located in Wartburg, Tennessee. Overlooking the Cumberland Mountains on an expansive 7.39-acre site, Sunny Side Estates offers a mix of one, two and three bedroom apartments which average 845 square feet and feature fully-appointed, all-electric kitchens and baths, central HVAC and a mix of vinyl and carpet floor coverings. Units are housed within 7 single and two-story wood-frame buildings with concrete slab foundations, brick stem walls, vinyl siding and metal roofs which have both been replaced within the past 5 years. The property features asphalt surface parking lots and mature landscaping amid an open, low-density setting. The community was built under the USDA-RD program and is subject to an assumable, 1 percent interest rate loan which has a current balance of roughly $625,000. There is a Housing Assistance Payment (HAP) Contract which is in the middle of a 5-year term and provides a subsidy to 30 of the 45 units and therefore a durable, predictable income stream for an incoming operator.
Sunny Side Estates is located less than ½ mile from downtown Wartburg, Tennessee. Wartburg is the county seat for Morgan County boasting a population of just over 900 residents and is the headquarters for the Oved Wild and Scenic River, Frozen Head State Park and Loan Mountain State Forest. The Catoosa Wildlife Management Area is located immediately to the west and the Big South Fork National River and Recreation Area is located several miles to the north. The nearest major city is Knoxville which is the 3rd largest city in Tennessee behind Nashville and Memphis. Knoxville is just 36 miles northeast of Wartburg and the local metro economy centers around economic hubs created by the University of Tennessee and Great Smokey Mountain Tourism. The Chattanooga MSA is home to roughly 550,000 and is located roughly 76 miles south of Wartburg. It is home to large manufacturing and distribution companies including Volkswagen and Amazon and is the headquarters for McKee Foods Corporation; the maker of Little Debbie cakes.
