1735 Mars Hill Drive, Dayton Ohio
Marcus and Millichap is pleased to present Union Hill, a 100 unit apartment complex located in South Dayton. This early 1990’s constructed property is in the West Carrollton submarket and is just a 10 minute drive from downtown Dayton. The property consists of all 2 bedroom floor plans and is accompanied by a complete amenity package.
Union Hill rents are on average $200 below the market average of the main competitors in the immediate market. The top 3 main competitors 2-Bed market average rent is $1449 while Union Hill average effective rent is $987. We are projecting that a new operator can come in, renovate the 44 unrenovated units, and push rents to $1,125 at a minimum. There is a strong need for upscale units in the market as the West Carrollton submarket offers proximity to The University of Dayton and employers like Wright-Patterson Air Force Base, Kettering Health, and Premier Health – who collectively employ over 50,000 people in Dayton.
Current operator has already been steadily renovating units and raising rents. Improvements include LVP floors, new paint, new carpet, and appliances as needed, painted cabinets with new hardware, backsplashes, and refinished countertops. They’ve been successful in raising effective gross income over $10,000 per month over the course of 2022.
Indian Lookout Apartments successfully raised 2-bedroom rents to $1,449 following similar renovations. It’s neighborhood and amenities are also on par with Union Hill. Dovetree Apartments is another community that executed a similar investment strategy and successfully raised 2-bedroom rents to $1,599. Stonecreek Apartments is another noteworthy competitor – it’s a 205-unit community that traded for $124,000/unit in 2022. A renovation play including LVP floors, backsplashes, new appliances, and new lights allowed for a rent push to $1,400.