Marcus & Millichap is pleased to present the Montleone, a 41-unit community in Louisville, KY. This property has been meticulously maintained with ownership providing a high level of care to the property and residents. An incoming investor can take advantage of the value-add opportunity given the growing rents in the submarket which provide strong support for interior renovations.
An incoming investor can take advantage of the value-add opportunity given the growing rents in the submarket which provide strong support for interior renovations. A renovation initiative should include upgraded flooring, kitchen, bath, and paint. The market supports an increase of over $200 in monthly rent
OTHER INCOME POTENTIAL | WASHER DRYER INSTALL
Current ownership is not charging for late fees, application fees nor are they collecting additional revenue for the storage units. An incoming investor can begin charging for these items and also consider allowing pets to capture additional income. There is opportunity to install a washer/dryer hookups in the units which would further boost NOI.
LONG TERM OWNERSHIP | OPERATIONAL UPSIDE
The Montleone has been under the same ownership for 15 years with owners focusing on a low maintenance model: Rents are never raised once a tenant moves in. An incoming investor can take advantage of this opportunity through an aggressive marketing strategy in a market that has experienced strong rent growth.
The top industries in Louisville’s employment sector are Trade & Transportation (23.3%), Education & Health (14.6%), Manufacturing (12.4%), and Professional Services (12.1%). Some of the largest employers in the area include Yum! Brands, Kindred Healthcare, Humana, and Ford. It is also home to UPS Worldport, the world’s largest package handling facility.
SUPERIOR MARKET DRIVERS
Louisville has experienced record-breaking absorption with nearly 4,000 units and another year of continued decrease in vacancies. Rental growth has permeated the market in the past 12 month largely driven by strong economic fundamentals and pent-up demand from Covid. The metro recorded a net gain of 22,400 jobs as the market recovers from Covid, expanding the employment base by 3.5%.