ROYAL COVE | OAKS AT NEWPORT
VALUE- ADD OPPORTUNITY
The Cove portfolio is uniquely positioned in the market with its rents matching those of product that is 20 years older. Currently, there is only one other asset in the Fort Thomas submarket of 1990’s vintage or newer leaving a gaping hole for class A and B product to push the envelope on rents. The Cove at Waterworks (28 units) portion of the portfolio has had renovations completed, while Royal Cove (68 Unit) portion has the opportunity to undergo a strategic renovation plan to catapult it’s rents closer to some of its direct competitors in the surrounding submarkets of Fort Thomas, all of which outpace Royal cove by North of $450. While The Cove at Waterworks has been renovated, it still boasts rents that are nearly $250 below market competition giving an incoming investor both a management play and a strategic renovation play in one of Northern Kentucky’s hottest markets.
PROVEN RENT GROWTH
The Cove Portfolio is situated in the center of the Fort Thomas submarket which has consistently been one of the top-performing submarkets in Cincinnati/NKY, year over year. Within the last year, rents grew over 10% and occupancy finished out 2021 over 97%. The submarket’s noteworthy rental fundamentals in combination with the lack of new inventory will continue to sustain the strength of the rental market.
Hard to Find | High Demand Asset
With 75% of Cincinnati’s multifamily supply 1980’s construction or older, the Cove Portfolio offers an investor to own a very limited supply asset. Not only is there an opportunity to own an asset in limited supply, there have also been no sales over 50 units in the Fort Thomas area in the last 5 years. Barrier to entry into this market is one of the highest in the city due to its fundamental strengths and limited supply.
Like many Midwest markets, Cincinnati evaded the worst effects of the pandemic relative to other areas of the country. Spurred by healthy job gains and moderate population growth, the Cincinnati apartment market continues to attract new residents, investors, and developers. Apartment demand reached 3,785 units in 2021, one of Cincinnati’s better performances in the last 30 years. This strong apartment demand boosted occupancy to its highest recorded level at 98.1% in the 4th quarter of 2021. Such strong demand allowed operators to push rental rates with an all-time high annual rental growth rate of 8.4% in 2021.
|Address:||200 Waterworks Road|
|Year Built:||1967, 1991|