Description
Marcus & Millichap is pleased to present North Creek, 141 units of apartment living located in Northwestern Cincinnati, 15 minutes from downtown. Located in the submarket of North College Hill, this property provides the investor a hard-to-find opportunity with phenomenal potential due to its solid submarket fundamentals top-notch employment and high demand.
BY THE NUMBERS:
North Creek vacancy across the trailing 12 months has traced under 3%. The trailing 3 months vacancy report comes in at .98%. Such strong occupancy over trailing operations is two-fold: First being under market rents compared to local competition, second being a submarket which characteristically rings in North of 97% occupancy year over year. This submarket along with Cincinnati regularly show occupancies tighter than 96%, yet again showing its strength and resiliency.
EXTREMELY ATTRACTIVE ASSUMABLE DEBT
Current in place assumable debt provides an interest rate over 250 basis points under current market debt. This allows an incoming investor to realize the benefits of in place debt at 2.99% with 8 years left while the ten-year treasury hovers around 4%.
LOSS TO LEASE BURN-OFF
North Creek offers an incoming investor with 197k in loss to lease to be recaptured over the coming 12 months. Most of the loss to lease has been a product of under market rents that the seller has finally started to take advantage of and is successfully doing so keeping occupancy at historic highs.
STRATEGIC RENOVATION PLAN ALREADY UNDERWAY
Current ownership has already implemented a strategic renovation plan across unit interiors. Just north of 25 units have already been completed at a cost of $8,000/unit commanding an additional $150/month in market rent.
A SUBMARKET ON THE MOVE:
College Hill has been a target of significant public and private infrastructure across many different factions. Just south of the property is a thirty-one-million-dollar mixed use apartment complex delivered in 2022, with an onslaught of custom homes to be delivered in the immediate vicinity as well. Cincinnati Children’s is also underway on a ninety-million-dollar expansion facility in College Hill. Developers across multifamily and other product types continue to eye the area for expansion.
CONSISTENT RENTAL COLLECTIONS:
Although the apartment industry faced one of its most trying years relating to collections across all asset types, North Creek boasted collections over 99% throughout all of 2020, 2021 and 2022. Collections are expected to continue to stay strong, unsurprisingly as Cincinnati was ranked third best for limited job loss through the COVID-19 pandemic and recovery thereafter.
Listing Details
| Price: | $Market Bid |
|---|---|
| Address: | 1560 Galbraith Road |
| City: | Cincinnati |
| State: | Ohio |
| Zip Code: | 45231 |
| Year Built: | 1973 |