LOSS TO LEASE RECAPTURE
With nearly 10% loss to lease on The 222’s February rent roll, there is roughly $160,000 to be recaptured annually in order to bring the loss to lease amount in line with market norms of 2%. This recapture alone adds over $2m to the value of the portfolio at a 6.5% cap rate.
CLOSE PROXIMITY ASSETS
Out of the nine total assets in the offering, eight are located on the westside of Cincinnati, with only seven miles separating the two assets that sit furthest apart from one another.. The outlier asset is located in Avondale less than eight miles away. The close proximity of the portfolio buildings helps to streamline day to day operations. In addition, there is a 1,500 sqft office space at the 3316 Werk Rd property creating a convenient location for a management office.
The majority of the offering is found in two submarkets, Price Hill/Delhi and Westwood, with a single asset in Avondale. All three submarkets have had large public and privately funded projects that have been delivered or broken ground in the last 18 months. To note a few:
Price Hill and Delhi: Delhi Towne Square mixed-use development totaling $60 million
Price Hill: Community ARCO totaling $15 million
East Price Hill: Historical Building Revitalization project totaling $10 million
Westwood: Lick Run Project totaling $193 million
Avondale: Uptown Consortium’s Innovation Corridor totaling $2.5 billion
There are multiple apartment communities within 1-2 mile radius of the subject properties that have recently undergo large interior renovations resulting in the average one-bedroom rent and two-bedroom rent for the competitive set being $165 and $265 greater than the subject properties’ average effective rent.
|Address:||3050 Mickey Ave|