Augusta Apartments OM

AUGUSTA APARTMENTS

SUBMITTED BY: LEAD AGENTS

Tim VanWingerden

Associate Louisville D. 513.878.7750 tim.vanwingerden@marcusmillichap.com

Jordan Dickman

First Vice President Investments Cincinnati Office D. 513.878.7735 jordan.dickman@marcusmillichap.com

Nicholas Andrews

First Vice President Investments Cincinnati Office D. 513.878.7741 nicholas.andrews@marcusmillichap.com

NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONTENTS

B R O K E R C A PA B I L I T I E S

06 | THE INVESTMENT

01

&

12 | LOCAL COMP E TITORS

02

20 | THE FIN ANC I ALS

03

26 | LOCAL M ARKE T

04

O P I N I O N O F V A L U E

CALABASAS, CALIFORNIA | HQ

80+ | OFFICES

2,500 | EMPLOYEES

UNRIVALED SUCCESS IN THE MIDWEST Nick Andrews

First Vice President Investments Director, NMHG

Jordan Dickman

First Vice President Investments Director, NMHG

INVESTMENT ADVISORS

Austin Sum

JD Schmerge

Brian Johnston

Tim VanWingerden

Senior Investment Associate

Investment Associate

Investment Associate

Investment Associate

DEBT & STRUCTURED FINANCE

Chris Litzler

Senior Director of Organization MMCC

VALUATION & RESEARCH

Sam Petrosino

Financial & Research Analyst

CLIENT RELATIONS

MARKETING

Alex Papa

Marketing Coordinator

Kristin Smith Marketing

Skyler Wilson

Client Relations Manager

OPERATIONS

Sidney Bills

Office Administrator

Josh Caruana

Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City

Brittany Campbell-Koch Director of Operations

John Sebree

Senior Vice President National Director National Multi Housing Group

Liz Popp

Midwest Operations Manager

Michael Glass

Senior Vice President Midwest Division Manager National Director, Manufactured Home Communities Group

S E C T I O N

01

THE INV

VESTMENT

INVESTMENT HIGHLIGHTS

AUGUSTA APARTMENTS Marcus & Millichap is pleased to present Augusta Apartments, a 26unit multifamily property in Lexington’s Eastland submarket. An incoming investor can take advantage of this opportunity by renovating remaining units, burning the large loss-to-lease on the property, installing washer/dryer hookups in units, implementing a water/sewer/ gas billback, and freshening up units to market standards.

APARTMENTS

L E X I N G T O N ,

AUGUSTA

K Y

AUGUSTA APARTMENTS

PROPERTY SUMMARY

17,300

RE N TABLE S Q UARE FE E T

26

TOTAL UNI T S

2

B UILD ING S

Studio

2

#1 Bedrooms

15

#2 Bedrooms

8

#3 Bedrooms

1

% Leased

88%

PROPERTY SNAPSHOT

AUGUSTA APARTMENTS

SUBMARKE T: EASTLAND PARKWAY | COUNTY: FAYE TTE

SUMMARY

1844-1854 AUGUSTA DRIVE

1972/ 2020

YEAR BUILT/RENO

26

NUMBER OF UNITS

9

AVERAGE UNIT SIZE

25,92

RENTABLE SQUARE FEET

2 PAVED LOT

LOT SIZE (ACRES) PARKING

2

# OF BUILDINGS

3

# OF PARCELS

Building Mechanicals

Type

Utility Source

Note

HVAC

Central

Gas Furnace

40% Replaced past 2 years

Electric / Wiring

Master-Metered

Copper

Laundry Room

5 Washers / 5 Dryers

Gas Dryer

Plumbing

Master-Metered

Construction: Framing:

Wood

Roof Type/Age:

Flat (Mansard Style)

Exterior of Building:

Brick

Utilities: Electric:

Owner Paid (RUB)

Gas:

Owner Paid (RUB)

Water

Owner Paid (RUB)

Sewer

Owner Paid (RUB)

Trash:

Owner Paid

Utility RUB

$75-200 (Avg $135 RUB)

Fees: Security Deposit:

625

Pet Rent:

25

Pet Deposit:

150

Utilities:

Owned; no contract

S E C T I O N

02

LOCAL C

COMPETITORS

LOCAL COMPETITORS 1

2

3

EASTLAND HILLS Address

C O N T I N E N TA L S Q U A R E

1748 Jennifer Road, Lexginton, KY

Address

DOUBLE TREE

1508 Continental Square, Lexington, KY

Address

1544 Meade Ct Lexington, KY

Year Built

1964

Year Built

1965

Year Built

1965

Occupancy

93%

Occupancy

93%

Occupancy

N/A

Units

88

Units

236

Units

236

Rent

(1x1) $650 (2x1) $665

Rent

(1x1) $669 (2x1) $669

Rent

(1x1 ) $680 (2x1) $725

SF Rent/SF

(1x1) 746 (2x1) 934 (1x1) $0.87 (2x1) $0.71

SF Rent/SF

(1x1) 576 (2x1) 890 (1x1) $1.16 (2x1) $0.75

SF Rent/SF

(1x1)820 (2x1) 858 (1x1)$0.83 (2x1) $0.84

Common Amenities:

Common Amenities:

Common Amenities:

Playground, Laundry Facilities, Rental Office

Laundry Facilites, Combination Entry, Rental Office

Laundry Facilites, Combination Entry, Rental Office

Unit Features:

Unit Features:

Unit Features:

Updated Applicances, Kitchens & Flooring, Balconies, Indoor Corridors

Individual AC, High Speed Internet Access, Electric Heating

Individual AC, High Speed Internet Access, Electric Heating

LOCAL COMPETITORS 4

5

S

BOURBON COURT Address

C H A M P I O N AT B L U E G R A S S

1800 Augusta Court Lexington, KY

Address

Year Built

1960

Year Built

Occupancy

95%

Units Rent SF Rent/SF

217 (1x1) $670 (2x1) $760 (1x1) 850 (2x1) 950 (1x1) $0.89 (2x1) $0.89

A U G U S TA A P A R T M E N T S

300 Quinton Ct Lexington, KY

Address

1844 - 1854 Augusta Drive Lexington, KY

1960

Year Built

1972

Occupancy

N/A

Occupancy

88%

Units

300

Units

26

(1x1) $850 (2x1) $940

Rent

(1x1 ) $575 (2x1) $625

Rent SF Rent/SF

(1x1) 740 (2x1) 879 (1x1) $1.15 (2x1) $1.07

Common Amenities:

Common Amenities:

Laundry Facilites, Combination Entry, Rental Office, Pitched Roofs

Sundeck, Fitness Center, Yoga studio, Clubhouse, Gated community, Business center, Picnic Area, Dog park,

Unit Features:

Unit Features:

Private Balconies, Washer/ Dryer in Units, Hardwood Floors, High Speed Internet

Private Balconies, Washer/ Dryer in Units, Hardwood Floors, Modern Kitchen

SF Rent/SF

(1x1) 600 (2x1) 800 (1x1)$0.96 (2x1) $0.78

Common Amenities: Yard space, picnic, grilling area Unit Features: LVP flooring, painted cabinets, updated paint, updated appliances

4

3 2 1

5

AUGU

*

US TA APARTMEN T S

REN T C OMPAR ABLE S 1

EASTLAND HILLS

2

CONTINENTAL SQUARE

3

DOUBLE TREE

4

BOURBON COURT

5

CHAMPION AT BLUEGRASS

SUBJECT *

AUGUS TA APARTMEN T S Address Units Avg. SF Year Built

1844 Augusta Drive 26 665 1972

(1x1) Market Price ($/mo)

$575

Market Rate ($/SF)

$0.96

Effective Price ($/mo)

$539

Effective Rate ($/SF)

$0.90

RENT SORT Studio

Sorted by Net Rent Year Built

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

Continental Square- Large

1965

468

$654.00

$95

$559

$1.19

Double Tree

1963

420

$680.00

$125

$555

$1.32

Augusta Pro Forma

1972

675

$565.00

$15

$550

$0.81

Continental Square- Small

1965

345

$634.00

$95

$539

$1.56

Bourbon Court

1960

600

$609.00

$95

$514

$0.86

Augusta Average Effective

1972

420

$625.00

$125

$500

$1.19

Averages

1966

488

$628

$92

$536

$1.16

Property

One Bedroom Apartment Rents Sorted by Net Rent

Year Built

SF

Market Rent

Utility Adjustment/Month

Net Rent

Net Rent/SF

The Champion at Bluegrass

1972

740

$850.00

$0

$850

$1.15

Summit at Lexington

1969

720

$800.00

$55

$745

$1.03

Double Tree Bourbon Court Continental Square- Large Augusta Pro Forma Eastland Hills Biscayne Apartments Gatehouse Apartments Liberty Heights The Baxter

1963 1960 1965 1972 1964 1975 1970 1969 1978

820 750 576 800 746 660 745 661 600

$695.00 $670.00 $784.00 $680.00 $750.00 $731.00 $775.00 $680.00 $731.00

$15 $0 $115 $15 $100 $100 $155 $100 $155

$680 $670 $669 $665 $650 $631 $620 $580 $576

$0.83 $0.89 $1.16 $0.83 $0.87 $0.96 $0.83 $0.88 $0.96

Continental Square- Small

1965

475

$674.00

$115

$559

$1.18

Augusta Average Effective

1972

800

$673.00

$155

$518

$0.65

Averages

1969

699

$730

$98

$647

$0.94

Property

Two Bedroom Apartment Rents Sorted by Net Rent

Year Built

SF

Market Rent

Utility Adjustment/Month

Base Rent

Net Rent/SF

The Townhomes at Fontaine

1962

950

$1,070.00

$0

$1,070

$1.13

The Champion at Bluegrass

1972

879

$940.00

$0

$940

$1.07

Bourbon Court Augusta Proforma

1960 1972

850 895

$760.00 $765.00

$0 $15

$760 $750

$0.89 $0.84

Double Tree

1963

858

$740.00

$15

$725

$0.84

Summit at Lexington

1969

950

$775.00

$70

$705

$0.74

Gatehouse Apartments

1970

1004

$875.00

$185

$690

$0.69

Continental Square

1965

890

$804.00

$135

$669

$0.75

Eastland Hills

1964

934

$850.00

$185

$665

$0.71

Liberty Heights

1969

838

$755.00

$120

$635

$0.76

Biscayne Apartments

1975

860

$749.00

$120

$629

$0.73

Augusta Avg Effective

1972

895

$805.00

$185

$620

$0.69

Averages

1968

900

$824

$114

$738

$0.82

Property

Three Bedroom Apartment Rents Sorted by Net Rent

Year Built

SF

Market

Utility Adjustment/Month

Base Rent

Net Rent/SF

The Champion at Bluegrass

1972

1084

$1,050.00

$0

$1,050

$0.97

Summit at Lexington

1969

1150

$1,005.00

$0

$1,005

$0.87

Bourbon Court

1960

950

$960.00

$0

$960

$1.01

Liberty Heights

1969

1024

$980.00

$140

$840

$0.82

Augusta Pro Forma

1972

950

$815.00

$15

$800

$0.84

Augusta Average Effective

1963

950

$900.00

$195

$705

$0.74

Averages

1968

1,018

$952

$117

$893

$0.88

Property

S E C T I O N

03

THE FIN

NANCIALS

A U G U S TA A PA R T M E N T S - F I N A N C I A L S

UNIX MIX SUMMARY AV E R A G E E F F E C T I V E UNIT TYPE

NO. OF U N I TS

T E N TA B L E S F

T OTA L S F

RENT/UNIT

2 Units 15 Units 8 Units 1 Units 26 Units

500 SF 600 SF 800 SF 900 SF 665 SF

1,000 SF 9,000 SF 6,400 SF 900 SF 17,300 SF

$500.00 $539.00 $673.00 $702.00 $583.50

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$1.00 $0.90 $0.84 $0.78 $0.88 SF

$1,000 $8,085 $5,384 $702 $15,171

$505.00 $575.00 $625.00 $702.00 $589.88

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1.01 SF $0.96 SF $0.78 SF $0.78 SF $0.89 SF

$1,010 $8,625 $5,000 $702 $15,337

$565.00 $680.00 $765.00 $815.00 $702.50

$1.13 SF $1.13 SF $0.96 SF $0.91 SF $1.06 SF

$1,130 $10,200 $6,120 $815 $18,265

$65 $141 $92 $113 $119

13.00% 26.16% 13.67% 16.10% 20.39%

SUMMARY

Studio One Bedroom Two Bedroom Three Bedroom Totals / Wtd. Averages

UNIT DISTRIBUTION 7%

31%

UNIT RENTS

4%

79%

Studio

Studio

One Bedroom

Two Bedroom

Three Bedroom

One Bedroom

Avg. Effective

Two Bedroom Three Bedroom

Pro Forma Projection

A U G U S TA A PA R T M E N T S - F I N A N C I A L S

UNIX MIX BREAKDOWN AV E R A G E E F F E C T I V E NO. OF UNITS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

STUDIO 0BR/1BA

2 Units

500 SF

1,000 SF

Totals / Wtd. Averages

2 Units

500 SF

ONE BEDROOM 1BR/1BA

15 Units

Totals / Wtd. Averages

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$500.00

$1.00 SF

$1,000

1,000 SF

$500.00

$1.00 SF

600 SF

9,000 SF

$539.00

15 Units

600 SF

9,000 SF

TWO BEDROOM 2BR/1BA

8 Units

800 SF

Totals / Wtd. Averages

8 Units

800 SF

THREE BEDROOM 3BR/1BA

1 Units

Totals / Wtd. Averages

1 Units

UNIT TYPE

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$505.00

$1.01 SF

$1,010

$565.00

$1.13 SF

$1,130

$65

13.00%

$1,000

$505.00

$1.01 SF

$1,010

$565.00

$1.13 SF

$1,130

$65

13.00%

$0.90 SF

$8,085

$575.00

$0.96 SF

$8,625

$680.00

$1.13 SF

$10,200

$141

26.16%

$539.00

$0.90 SF

$8,085

$575.00

$0.96 SF

$8,625

$680.00

$1.13 SF

$10,200

$141

26.16%

6,400 SF

$673.00

$0.84 SF

$5,384

$625.00

$0.78 SF

$5,000

$765.00

$0.96 SF

$6,120

$92

13.67%

6,400 SF

$673.00

$0.84 SF

$5,384

$625.00

$0.78 SF

$5,000

$765.00

$0.96 SF

$6,120

$92

13.67%

900 SF

900 SF

$702.00

$0.78 SF

$702

$702.00

$0.78 SF

$702

$815.00

$0.91 SF

$815

$113

16.10%

900 SF

900 SF

$702.00

$0.78 SF

$702

$702.00

$0.78 SF

$702

$815.00

$0.91 SF

$815

$113

16.10%

INCOME EXPENSE

A U G U S TA A PA R T M E N T S - F I N A N C I A L S

INCOME & EXPENSES

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Utilities RUBS Pet Rent Month to Month Fee Late Fees Pet Deposit Application Fees Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Utilities Trash Removal Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance Marketing & Promotion On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

CURRENT (Rent Roll / T12 Income; T12 Expenses) % of GPR Per Unit $184,524 RR 7,097 ($4,188) 2.27% (161) $180,336 RR 6,936 $40,644 RR $1,200 RR $0 $0 $0 $0 $41,844 $222,180 ($22,500) RR $0 $199,680

1,563 46 0 0 0 0 1,609 8,545 (865) 0 7,680

$41,457 $1,236 $780 $780 $536 $325 $45,114 $259,911 ($10,740) ($4,296) $244,875

5.00% 2.00% 91.00%

1,594 48 30 30 21 13 1,735 9,997 (413) (165) 9,418

% of EGI Per Unit 5.00% 384 0.00% 0 5.00% 384 3.91% 300

$9,991 $8,870 $18,861 $7,800

% of EGI 4.08% 3.62% 7.70% 3.19%

Per Unit 384 341 725 300

$48,000 Note 2 $0 $48,000 $65,791

24.04% 0.00% 24.04% 32.95%

1,846 0 1,846 2,530

$48,960 $3,744 $52,704 $79,365

19.99% 1.53% 21.52% 32.41%

1,883 144 2,027 3,052

Note 2 Note 2

1.30% 0.46% 1.76% 6.51% 0.65% 10.42% 1.95% 1.30% 5.00% 3.32% 30.91% 63.86% 36.14%

100 35 135 500 50 800 150 100 384 255 2,374 4,904 2,776

$2,600 $910 $3,510 $13,000 $1,300 $20,800 $3,900 $2,600 $12,244 $6,763 $64,116 $143,481 $101,394

1.06% 0.37% 1.43% 5.31% 0.53% 8.49% 1.59% 1.06% 5.00% 2.76% 26.18% 58.59% 41.41%

100 35 135 500 50 800 150 100 471 260 2,466 5,519 3,900

$9,991 Auditor $0 $9,991 $7,800 Note 2

$2,600 $910 $3,510 $13,000 $1,300 $20,800 $3,900 $2,600 $9,984 $6,630 $61,724 $127,515 $72,165

Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1

22.54% 0.67% 0.00% 0.00% 0.00% 0.00% 23.20%

YEAR 1 (Stabilized LTL, Occupancy, and Other Income; Normalized Expenses) % of GPR Per Unit $219,180 8,430 ($4,384) 2.00% (169) $214,796 8,261

12.48% 0.00% 85.25%

19.30% 0.58% 0.36% 0.36% 0.25% 0.15% 21.00%

YEAR 2 $225,755 ($4,515) $221,240

% of GPR 2.00% 19.30% 0.58% 0.36% 0.36% 0.25% 0.15% 21.00%

YEAR 3 Per Unit 8,683 (174) 8,509

$232,528 ($4,651) $227,878

% of GPR

$43,982 $1,311 $828 $828 $569 $345 $47,862 $275,739 ($11,394) ($4,558) $259,788

5.00% 2.00% 91.00%

1,692 50 32 32 22 13 1,841 10,605 (438) (175) 9,992

2.00%

$42,701 $1,273 $803 $803 $552 $335 $46,468 $267,708 ($11,062) ($4,425) $252,221

5.00% 2.00% 91.00%

1,642 49 31 31 21 13 1,787 10,296 (425) (170) 9,701

$9,991 $8,870 $18,861 $7,956

% of EGI 3.96% 3.52% 7.48% 3.15%

Per Unit 384 341 725 306

$9,991 $8,870 $18,861 $8,115

% of EGI 3.96% 3.52% 7.48% 3.22%

Per Unit 384 341 725 312

$49,939 $3,819 $53,758 $80,575

19.80% 1.51% 21.31% 31.95%

1,921 147 2,068 3,099

$50,938 $3,895 $54,833 $81,809

20.20% 1.54% 21.74% 32.44%

1,959 150 2,109 3,147

$2,652 $928 $3,580 $13,260 $1,326 $21,216 $3,978 $2,652 $12,611 $6,898 $65,521 $146,096 $106,125

1.05% 0.37% 1.42% 5.26% 0.53% 8.41% 1.58% 1.05% 5.00% 2.73%

102 36 138 510 51 816 153 102 485 265 2,520 5,619 4,082

$2,705 $947 $3,652 $13,525 $1,353 $21,640 $4,058 $2,705 $12,989 $7,036 $66,958 $148,767 $111,021

1.07% 0.38% 1.45% 5.36% 0.54% 8.58% 1.61% 1.07% 5.00% 2.79% 26.40% 58.98% 44.02%

104 36 140 520 52 832 156 104 485 271 2,561 5,722 4,270

25.98% 57.92% 42.08%

19.30% 0.58% 0.36% 0.36% 0.25% 0.15% 21.00%

Per Unit 8,943 (179) 8,765

UNDERWRITING NOTES

#

NOTE

1

Replacement & Reserves: added based on market norm of $255 per unit per year

2

Per owner expenses

3

Common area / vacant utilities after utility conversion

S E C T I O N

04

LOCAL M

MARKET

AUGUSTA APARTMENTS

LEXINGTON, KY Lexington, city, coextensive with Fayette county, north-central Kentucky, U.S., the focus of the Bluegrass region and a major centre for horse breeding. Named in 1775 for the Battle of Lexington, Massachusetts, it was chartered by the Virginia legislature in 1782 and was the meeting place (1792) for the first session of the Kentucky legislature following statehood. Lexington in the early 1880s called itself the Athens of the West, boasting Transylvania College (1780; now Transylvania University), street lights, a public subscription library, a theatre, and a musical society. In 1817 it had presented the first Beethoven symphony heard in the United States.

EMERGING TECH HUB Metronet has invested over $100 million in fiberoptic infrastructure making Lexington the largest Gigabit city in the nation. The city’s highspeed infrastructure along with its low cost of living provides 1.54 times the purchasing power compared to Silicon Valley attracting talented tech professionals and startups alike.

EMPLOYERS IN THE NEWS

B O U R B O N D I S T I L L E R Y B U F F A L O T R A C E

Buffalo Trace distillery, based out of Kentucky, has made progress in its $1.2 billion expansion, which includes the construction of an additional still, more barrel warehouses, added fermenters and an expansion of the dry house operation.

Over the past year, a second still house has been built next to the existing 1930s structure. At 40 ft tall, it has doubled production capacity and holds 60,000 gallons.

•

The University of Kentucky approved a purchase agreement for $6.9 Million to acquire land for construciton of a new outpatient cancer treatment center and advanced ambulatory complex. (Dec 2021)

•

New $37.5 million Lexington Distillery District hotel will open in spring 2023 (Dec 2021)

•

The University of Kentucky gives the city of Lexington 250 acres in and near the Coldstream Research Campus where office, laboratory, residential and hospitality developments are planned. A new, $15 million hightech building currently under construction will provide office and laboratory space for early-stage, hightech companies to develop and commercialize their products and services. (Oct 2021).

•

TMMK to invest $461 million in upgrades at Georgetown Toyota plant. (Oct 2021)

•

Buffalo Trace Distillery makes headway on $1.2 billion expansion (Aug 2021)

•

Lexington-based Quality Logistics LLC, doing business as Longship, opened its new office in Fayette County, a $4.3 million investment creating 155 well-paying jobs for Kentucky residents (Aug 2021)

ECONOMY • Lexington has mix of stable anchors alongside

ette were most pronounced in the Leisure/Hospi-

some larger, private employers. Prior to the

tality Services and Trade/Transportation/Utilities

pandemic, Lexington-Fayette’s real gross

sectors. Despite job losses stemming from the

metropolitan product grew at an average annual

pandemic, Lexington-Fayette’s current

rate of 1.6% from 2015 to 2019. During that same

employment base now sits roughly 16,200 jobs, or

five-year period, job growth averaged 1.2%

about 6% above the 1st quarter 2008 level, prior to

annually, with roughly 3,100 jobs added on aver-

the Great Recession.

age each year.

• In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 10.3% year-overyear in 2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjusted economic output expanded 6.5%.

• At the same time, the metro recorded a net gain of 3,600 jobs, expanding the employment base 1.4%. As such, Lexington-Fayette’s unemployment rate in August 2021 declined 1.5 points year-overyear to 3.2%, below the national average of 5.3%.

• During the past year, job gains in Lexington-Fay-

D E M O G R A P H I C S : STAT I ST I C S Population: 323,152

Msa median hhi: $57,405

Msa median home value: $173,500

Average occupany: 96.4%

Median age: 35 (.39%)

1 - Year growth: 1.77%

1 - Year growth: 4.83%

Rent growth: 2.7%

S U P P LY & D E M A N D S U P P LY • The level of new apartment completions in Lexington-Fayette were modest recently, as 252 units delivered in the year-ending 3rd quarter 2021. That annual completion volume compares to a low of 24 units and a high of 900 units over the past five years. Annual new supply averaged 357 units, and annual inventory growth averaged 0.6% over the past five years.

• Completions over the past year expanded the local inventory base 0.6% and were concentrated only in the Downtown Lexington/University submarket.

• Over the next year, inventory growth is set to accelerate with the scheduled addition of 680 units. At the end of 3rd quarter 2021, there were 866 units under construction.

• New supply over the past five years has been concentrated in South Lexington, which received 58% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to deliver in South Lexington and North Lexington.

MARKET DRIVERS

2

8

1

University of Kentucky

2

Toyota

3

Baptist Health

4

Amazon.com

5

Lexmark

6

Hitachi

7

Lockheed Martin

8

Adient

9

Link-Belt

10

Webasto

11

Valvoline

12

Big Ass Fans

13

Tempur- Sealy

12 10 4

13 7

5 1 3 9 11

6

O C C U PA N CY • Occupancy in the Lexington-Fayette apartment market has ranged from 93.0% to 97.3% over the past five years, averaging 94.7% during the same five yer period. Over the past year, occupancy gained 1.4 points, with the 3rd quarter 2021 rate landing at 97.3%.

• That occupancy rate ranked #29 among the 65 key South region markets and #85 among the top 150 markets nationally.

That tight occupancy was also the highest since RealPage began tracking the market.

• Looking at product classes in Lexington-Fayette, 3rd quarter 2021 occupancy was 97.9% in Class A units, 97.3% in Class B units and 96.4% in Class C units, occupancy in Class C product was generally tightest over the past five years.

ATTRACTIONS KEENELAND Lexington, the heart of Kentucky “bluegrass,” has been renowned for two centuries for horse raising and horse racing. Shortly after the track’s completion in 1936, Keeneland Racetrack became the most conspicuous manifestation of this culture. Jack Keene, for whom Keeneland is named, was an extraordinary figure in American racing, and helped revive this industry during the 1930s when it was beginning to suffer. Keene was a descendant of a distinguished Lexington family and was known worldwide as a trainer of thoroughbreds.

After training abroad in Russia and Japan he returned to Kentucky where he began laying out the Keeneland racecourse in 1916. The main track is one and 1/16th miles in circumference and has retained this length since its original inception by Keene. The grounds also include Keene’s mansion and training center. Constructed of limestone that was quarried on Keene’s farm, this building was designed with living quarters, a large clubroom and stalls. The two-story center section of the building is flanked on either side by stone arcades leading to three-story wings of the building.

K E N T U C K Y H O RS E PA R K The Kentucky Horse Park is a working horse farm, educational theme park and equine competition facility dedicated to man’s relationship with the horse. Set on more than 1,200 acres in the heart of the Kentucky’s famous Bluegrass region, the park is THE place to get close to horses! Featuring dozens of breeds of horse at work and at play, the park showcases the horse in daily equine presentations, horse drawn tours, horseback and pony rides, and an array of horse shows and special events throughout the year.

HIGHER EDUCATION Founded in 1865, the University of Kentucky is a single campus at the heart of the Blue-grass. More than 100 countries are represented in the student body at UK. UK has over 200 academic programs and last spring, there were 29,182 students enrolled. With more than 12,000 staff and 2,000 faculty, UK is one of the largest employers in the state.

U N I V E RS I T Y O F K E N T U C K Y In an extensive study conducted by the Associated Press and then revealed in 2017, the University of Kentucky men’s basketball program was rated as the greatest of its kind ever. Certainly, more current NBA players have emerged from the Wildcats’ ranks than from any other college team, with DeMarcus Cousins, John Wall, and Anthony Davis just some of the University of Kentucky’s former stars. The Wildcats also clinched the NCAA Division I Men’s Basketball Tournament in 2012 and have progressed to the men’s Final Four on four occasions since 2011.

20,500 RUPP AREA FACILITY CAPACITY 20 NCAA CHAMPIONSHIP WINS $19.5M IN TICKETS

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