Baxter Phoenix

BAXTER PHOENIX

SUBMITTED BY: LEAD AGENTS

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

Austin Sum Senior Associate Cincinnati Office D. 513.878.7747 austin.sum@marcusmillichap.com

JD SCHMERGE Associate Cincinnati Office D. 513.878.7756 jd.schmerge@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 | BAX TER P HOENI X

01

&

14 | LOCAL COMP E TITORS

02

22 | FIN ANCI AL BREAKDOWN

03

28 | LOCAL M ARKE T

04

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

CALABASAS, CALIFORNIA | HQ 4

ADG MULTIFAMILY

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

ADG MULTIFAMILY

5

S E C T I O N

01

BAXTER

R PHOENIX

INVESTMENT HIGHLIGHTS

BAXTER PHOENIX 8

ADG MULTIFAMILY

BAXTER PHOENIX

PROPERTY SUMMARY

97,780

REN TABLE S QUARE FEE T

154

TOTAL UNI T S

2

#1 Bedrooms

146

#2 Bedrooms

8

PR O PE RT IE S

Marcus & Millichap is pleased to present The Phoenix Apartments and Valore at The Baxter, a 154-unit apartment portfolio in Lexington, KY. Valore at The Baxter consists of 74 units and The Phoenix Apartments is 80 units. The properties are located 0.3 miles from one another in the Eastland Parkway submarket.

VALUE-ADD OPPORTUNITY • There are approximately 60 units still in need of renovation at The Phoenix. Renovated units are achieving roughly a $100/mo premium.

• There is the potential to have 157 rentable units (one coming online now, laundry room conversion, office conversion) • Phoenix has ALL utilities sub-metered so the utilities could be placed on the tenants • Baxter has individual water heaters in each unit which makes submetering water more feasible.

ADG MULTIFAMILY

9

BAXTER

PROPERTY SUMMARY

SUBMARKE T: EASTLAND PARKWAY | COUNTY: FAYE TTE

SUMMARY

1597 MARTHA COURT, LEXINGTON, KY

1978/ 2021 73 595 44,030

NUMBER OF UNITS AVERAGE UNIT SIZE RENTABLE SQUARE FEET

2

LOT SIZE (ACRES)

3

# OF PARCELS

5

# OF BUILDINGS

96%

10

YEAR BUILT/RENO

ADG MULTIFAMILY

OCCUPANCY

POURED CONCRETE WOOD PITCHED SHINGLE (~15YRS)

BRICK

FOUNDATION FRAMING ROOF TYPE/AGE EXTERIOR

PHOENIX

PROPERTY SUMMARY

SUBMARKE T: EASTLAND PARKWAY | COUNTY: FAYE TTE

SUMMARY

1708 JENNIFER ROAD, LEXINGTON, KY

1964/ 2021 81 669 54,189

YEAR BUILT/RENO NUMBER OF UNITS AVERAGE UNIT SIZE RENTABLE SQUARE FEET

2

LOT SIZE (ACRES)

2

# OF PARCELS

5

# OF BUILDINGS

94%

POURED CONCRETE WOOD PITCHED SHINGLE (2020)

BRICK

FOUNDATION FRAMING ROOF TYPE/AGE EXTERIOR

OCCUPANCY

ADG MULTIFAMILY

11

BAXTER PHOENIX

LOCATION

BAXTER

* * PHOENIX

11 MINS OR 3.7 MILES (11 MINUTES) TO DOWNTOWN LEXINGTON 3.3 MILES TO UNIVERSITY OF KENTUCKY 1.5 MILES TO THE NEAREST KROGER 2.9 MILES TO HAMBURG PAVILION 12

ADG MULTIFAMILY

ADG MULTIFAMILY

13

S E C T I O N

02

LOCAL C

COMPETITORS

BAXTER PHOENIX

RENT SORT One Bedroom Property

Year Built

SF

Market Rent

Net Rent

Net Rent/SF

$1,135.00 $946.00 $893.00

Utility Adjustment/ Month $15 $15 $15

1809 at Winchester Patchen Oaks MAA Lakepointe

2014 1990 1986

623 705 608

$1,120 $931 $878

$1.80 $1.32 $1.44

Continental Square** Baxter Phoenix Pro Forma Gatehouse Apartments Bourbon Court Doubletree Eastland Hills Baxter Phoenix Market Cedarwood Apartments Hartford Place Liberty Heights 315 Ballpark Drive Averages

1965 1964 1970 1966 1963 1964 1964 1983 1970 1969 1963 1974

576 610 745 750 820 745 610 576 607 661 575 658

$855.00 $800.00 $775.00 $670.00 $695.00 $750.00 $750.00 $690.00 $728.00 $689.00 $700.00 $791

$110 $110 $110 $15 $40 $110 $110 $55 $110 $80 $110 $72

$745 $690 $665 $655 $655 $640 $640 $635 $618 $609 $590 $719

$1.29 $1.13 $0.89 $0.87 $0.80 $0.86 $1.05 $1.10 $1.02 $0.92 $1.03 $1.11

Two Bedroom Property

Year Built

SF

Market Rent

Net Rent

Net Rent/SF

$1,647.00 $1,147.00 $1,138.00

Utility Adjustment/ Month $15 $15 $15

1809 at Winchester Patchen Oaks MAA Lakepointe

2014 1990 1986

1062 980 1056

$1,632 $1,132 $1,123

$1.54 $1.16 $1.06

Baxter Phoenix Pro Forma Baxter Phoenix Market Continental Square** Cedarwood Apartments Eastland Hills Bourbon Court Gatehouse Apartments Liberty Heights Doubletree Hartford Place Averages

1964 1964 1965 1983 1964 1966 1970 1969 1963 1970 1974

900 900 890 864 934 850 1004 838 880 887 927

$975.00 $950.00 $955.00 $850.00 $900.00 $760.00 $875.00 $805.00 $740.00 $830.00 $967

$65 $65 $140 $65 $140 $15 $140 $100 $50 $140 $74

$910 $885 $815 $785 $760 $745 $735 $705 $690 $690 $893

$1.01 $0.98 $0.92 $0.91 $0.81 $0.88 $0.73 $0.84 $0.78 $0.78 $0.95

BAXTER PHOENIX

LOCAL COMPETITORS 1

2

BOURBON COURTS APT Address

EASTLAND HILLS

Occupancy

97%

Units

$670 Rent (2x1)

SF

750 SF

Rent/SF

$0.89 Rent/SF

Utilities -

Occupancy

217

Rent (1x1)

Owner Pays:

Address

1800 Augusta Court, Lexington, KY

1748 Jennifer Road, Lexington, KY 91%

Units $760 850 $0.89

Rent (1x1)

88 $750

SF Rent/SF

745 $1.01

Utilities Tenant Pays: water, gas, electric

Owner Pays:

Tenant Pays:

All utilities

-

Common Amenities

Common Amenities

Children’s playground, laundry room, pet play area, storage units

playground, laundry facilities, rental office, picnic area, controlled access/gated

Unit Features:

Unit Features:

private patio/balcony, hardwood floors, washer/dryers in select units, high speed internet

hardwood floors, air conditioner, carpeting, patio/balcony

Rent (2x1) SF Rent/SF

$900 934 $0.96

4

3

CONTINENTIAL SQUARE

G AT E H O U S E A P A R T M E N T S Address Occupancy Units Rent (1x1) SF Rent/SF

745 $1.04

All utilities

94%

Units

199 $775

1508 Continental Square Dr Lexington, KY

Occupancy

98%

Rent (2x1)

$875

Rent (1x1)

SF

1004

SF

Rent/SF

$0.87

Rent/SF

236 $855 578 $1.48

Utilities

Utilities Owner Pays:

Address

1825 Liberty Rd, Lexingon, KY

Tenant Pays: -

Owner Pays: All utilities

Tenant Pays: Electricity

Common Amenities

Common Amenities

Courtyard, basketball court, package service, rental office, grilling station, laundry room

laundry room, grilling station, package service, courtyard

Unit Features:

walk-in closets, high speed internet, newly renovated units

air conditioning, carpet, walk-in closets, ceiling fans, vinyl flooring

Unit Features:

Rent (2x1) SF Rent/SF

$955 890 $1.07

BAXTER PHOENIX

LOCAL COMPETITORS BAXTER

4

* PHOENIX REN T C OMPAR ABLE S 1

BOURBON COURTS APTS

2

EASTLAND HILLS

3

GATEHOUSE APARTMENTS

4

CONTINENTAL SQUARE

3

* 2

1

SUBJECT *

*

PHOENIX

BAXTER Property Summary

Property Summary Address Units

1577 Martha Court, Lexington, KY 74

Address Units

1708 JENNIFER RD LEXINGTON, KY 80

Year Built

1964

Year Built

1964

Occupancy

94%

Occupancy

94%

Rent

1x1

1x1

2x2

Units:

74

Avg Pro Forma Rent

$790

Avg Pro Forma Rnet/SF

$1.27

Units: 72 Avg Pro Forma Rent: $790 Rent Per SF: $1.27

Units: 8 Pro Froma Rent: $975 Rent Per SF: $1.08

S E C T I O N

03

FINANC

IAL BREAKDOWN

BAXTER PHOENIX - FINANCIALS

UNIX MIX SUMMARY AV E R A G E E F F E C T I V E NO. OF U N I TS

T E N TA B L E S F

T OTA L S F

RENT/UNIT

SUMMARY One Bedroom Two Bedroom

146 Units 8 Units

620 SF 900 SF

90,580 SF 7,200 SF

Totals / Wtd. Averages

154 Units

635 SF

97,780 SF

UNIT TYPE

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$695.54 $835.31

$1.12 $0.93

$101,549 $6,683

$702.80

$1.11 SF

$108,232

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

$723.60 $926.25

$1.17 SF $1.03 SF

$105,645 $7,410

$790.58 $975.00

$1.27 SF $1.08 SF

$115,425 $7,800

$95 $140

13.66% 16.72%

$734.12

$1.16 SF

$113,055

$800.16

$1.26 SF

$123,225

$97

13.85%

UNIT DISTRIBUTION

UNIT RENTS

5%

ADG MULTIFAMILY

Avg. Effective

$975

24

One Bedroom

$835

Two Bedroom

$790

One Bedroom

$695

95%

Two Bedroom

Pro Forma Projection

BAXTER PHOENIX - FINANCIALS

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

ONE BEDROOM 1BR/1BA - Baxter 1BR/1BA - C - Phoenix 1BR/1BA - C - Phoenix 1BR/1BA - CU - Phoenix 1BR/1BA - P - Phoenix 1BR/1BA - PU - Phoenix

74 Units 1 Units 12 Units 42 Units 2 Units 15 Units

595 SF 400 SF 650 SF 650 SF 650 SF 650 SF

44,030 SF 400 SF 7,800 SF 27,300 SF 1,300 SF 9,750 SF

Totals / Wtd. Averages

146 Units

620 SF

TWO BEDROOM 2BR/1BA - C - Phoenix 2BR/1BA - CU - Phoenix 2BR/1BA - P - Phoenix 2BR/1BA - PU - Phoenix

5 Units 1 Units 1 Units 1 Units

Totals / Wtd. Averages

8 Units

UNIT TYPE

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$698.66 $495.00 $657.27 $698.43 $687.50 $717.14

$1.17 SF $1.24 SF $1.01 SF $1.07 SF $1.06 SF $1.10 SF

$51,701 $495 $7,887 $29,334 $1,375 $10,757

90,580 SF

$695.54

$1.12 SF

900 SF 900 SF 900 SF 900 SF

4,500 SF 900 SF 900 SF 900 SF

$852.50 $735.00 $950.00 $735.00

900 SF

7,200 SF

$835.31

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

$735.00 $495.00 $665.00 $715.00 $750.00 $750.00

$1.24 SF $1.24 SF $1.02 SF $1.10 SF $1.15 SF $1.15 SF

$54,390 $495 $7,980 $30,030 $1,500 $11,250

$785.00 $535.00 $800.00 $800.00 $800.00 $800.00

$1.32 SF $1.34 SF $1.23 SF $1.23 SF $1.23 SF $1.23 SF

$58,090 $535 $9,600 $33,600 $1,600 $12,000

$86 $40 $143 $102 $113 $83

12.36% 8.08% 21.72% 14.54% 16.36% 11.55%

$101,549

$723.60

$1.17 SF

$105,645

$790.58

$1.27 SF

$115,425

$95

13.66%

$0.95 SF $0.82 SF $1.06 SF $0.82 SF

$4,263 $735 $950 $735

$900.00 $970.00 $970.00 $970.00

$1.00 SF $1.08 SF $1.08 SF $1.08 SF

$4,500 $970 $970 $970

$975.00 $975.00 $975.00 $975.00

$1.08 SF $1.08 SF $1.08 SF $1.08 SF

$4,875 $975 $975 $975

$123 $240 $25 $240

14.37% 32.65% 2.63% 32.65%

$0.93 SF

$6,683

$926.25

$1.03 SF

$7,410

$975.00

$1.08 SF

$7,800

$140

16.72%

ADG MULTIFAMILY

25

INCOME

EXPENSE

BAXTER PHOENIX - FINANCIALS

INCOME & EXPENSES

CURRENT GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT OTHER INCOME Late Fees Application Fees Lease Termination Income Damages Monthly Pet Premium Cleaning Charges One-Time Pet Fees Month to Month Fees NSF Check Charges Subtotal Other Income Utility Reimbursement Electric Other Utility Gas Total Utility Reimbursement Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric

Gas Water & Sewage Trash Removal Fees & Finance Charges

$1,363,080 T3 ($89,364) T3 $1,273,716

6.56%

8,851 (580) 8,271

$1,478,700 ($73,935) $1,404,765

5.00%

9,602 (480) 9,122

$42,871 $18,142 $16,268 $5,680 $1,897 $1,550 $1,480 $1,322 $500 $89,710

T3 T3 T3 T3 T3 T3 T3 T3 T3

3.37% 1.42% 1.28% 0.45% 0.15% 0.12% 0.12% 0.10% 0.04% 7.04%

278 118 106 37 12 10 10 9 3 583

$18,000 $18,686 $16,756 $5,850 $1,954 $1,597 $1,524 $1,362 $515 $66,244

1.28% 1.33% 1.19% 0.42% 0.14% 0.11% 0.11% 0.10% 0.04% 4.72%

117 121 109 38 13 10 10 9 3 430

$27,538 $1,680 $16 $29,234 $118,944 $1,392,660 ($128,857) ($10,050) ($39,279) ($53,906) $1,160,568

T3 T3 T3

2.16% 0.13% 0.00% 2.30% 9.34%

$0 $0 $0 $30,111 $96,356 $1,501,121 ($70,238) $0 ($21,071) ($14,048) $1,395,763

0.00% 0.00% 0.00% 2.14% 6.86%

10.12% 0.79% 3.08% 4.23% 75.22%

179 11 0 190 772 9,043 (837) (65) (255) (350) 7,536

5.00% 0.00% 1.50% 1.00% 87.50%

0 0 0 196 626 9,748 (456) 0 (137) (91) 9,063

$59,431 Auditor $0 $59,431 $43,778 Note 3

% of EGI 5.12% 0.00% 5.12% 3.78%

Per Unit 386 0 386 284

$59,431 $0 $59,431 $46,200

% of EGI 4.26% 0.00% 4.26% 2.94%

Per Unit 386 0 386 300

$116,266 Note 3

10.02%

T3 Note 2 T3

$32,239 $119,923 $6,037 $1,049

Note 3 Note 3 Note 3 Note 3

Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control Total Contract Services Repairs & Maintenance

$275,514 $378,723 $1,171 $1,202 $8,364 $11,407 $22,143 $16,155

Note 3 Note 3 Note 3 Note 3

On-Site Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$124,922 $35,886 $29,628 $26,355 $1,599 $39,270 $313,051 $691,774 $468,794

Note 3 Note 3 Note 3 Note 3 Note 3 Note 1

Marketing & Promotion

YEAR 1

Note 3

$17,093 Note 3

2.78% 10.33% 0.52% 0.09%

755

209 779 39 7

$8,500

$6,500 $122,321 $6,158 $1,070

0.61%

0.47% 8.76% 0.44% 0.08%

55

42 794 40 7

23.74% 32.63%

1,789 2,459

$144,549 $250,181

10.36% 17.92%

939 1,625

0.10% 0.10% 0.72% 0.98% 1.91% 1.39%

8 8 54 74 144 105

$1,540 $2,310 $11,550 $5,390 $20,790 $77,000

0.11% 0.17% 0.83% 0.39% 1.49% 5.52%

10 15 75 35 135 500

10.76% 3.09% 2.55% 2.27% 0.14% 3.38% 26.97% 59.61% 40.39%

811 233 192 171 10 255 2,033 4,492 3,044

$138,600 $23,100 $23,100 $69,788 $5,390 $40,055 $409,374 $659,554 $736,209

9.93% 1.66% 1.66% 5.00% 0.39% 2.87% 29.33% 47.25% 52.75%

900 150 150 453 35 260 2,658 4,283 4,781

1.47%

111

$11,550

0.83%

75

YEAR 2

YEAR 3

$1,523,061 ($30,461) $1,492,600

2.00%

9,890 (198) 9,692

$1,568,753 ($31,375) $1,537,378

2.00%

10,187 (204) 9,983

$18,540 $19,247 $17,258 $6,026 $2,013 $1,644 $1,570 $1,403 $530 $68,232

1.24% 1.29% 1.16% 0.40% 0.13% 0.11% 0.11% 0.09% 0.04% 4.57%

120 125 112 39 13 11 10 9 3 443

$19,096 $19,824 $17,776 $6,207 $2,073 $1,694 $1,617 $1,445 $546 $70,279

1.24% 1.29% 1.16% 0.40% 0.13% 0.11% 0.11% 0.09% 0.04% 4.57%

124 129 115 40 13 11 11 9 4 456

$0 $0 $0 $30,111 $98,343 $1,590,943 ($74,630) $0 ($14,926) ($14,926) $1,486,461

0.00% 0.00% 0.00% 2.02% 6.59%

$0 $0 $0 $30,111 $100,390 $1,637,768 ($76,869) $0 ($15,374) ($15,374) $1,530,151

0.00% 0.00% 0.00% 2.02% 6.53%

5.00% 0.00% 1.00% 1.00% 91.00%

0 0 0 196 639 10,331 (485) 0 (97) (97) 9,652

5.00% 0.00% 1.00% 1.00% 91.00%

0 0 0 196 652 10,635 (499) 0 (100) (100) 9,936

$59,431 $0 $59,431 $47,124

% of EGI 4.00% 0.00% 4.00% 2.82%

Per Unit 386 0 386 306

$59,431 $0 $59,431 $48,066

% of EGI 4.00% 0.00% 4.00% 2.87%

Per Unit 386 0 386 312

$8,670

$6,630 $124,768 $6,281 $1,092

0.58%

0.45% 8.39% 0.42% 0.07%

56

43 810 41 7

$8,843

$6,763 $127,263 $6,406 $1,114

0.59%

0.45% 8.56% 0.43% 0.07%

957 1,649

$150,389 $257,887

10.12% 17.35%

977 1,675

$1,571 $2,356 $11,781 $5,498 $21,206 $78,540

0.11% 0.16% 0.79% 0.37% 1.43% 5.28%

10 15 77 36 138 510

$1,602 $2,403 $12,017 $5,608 $21,630 $80,111

0.11% 0.16% 0.81% 0.38% 1.46% 5.39%

10 16 78 36 140 520

9.51% 1.59% 1.59% 5.00% 0.37% 2.75% 28.30% 45.39% 54.61%

918 153 153 483 36 265 2,732 4,381 5,271

$144,199 $24,033 $24,033 $76,508 $5,608 $41,674 $429,812 $687,699 $842,452

9.70% 1.62% 1.62% 5.00% 0.38% 2.80% 28.77% 46.26% 56.68%

936 156 156 483 36 271 2,777 4,466 5,470

0.79%

77

$12,017

0.81%

1

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

2

Non-Revenue Unit- Includes laundry at Baxter & leasing office at Phoenix

3

Baxter is T8 financials and Phoenix is T12 financials

57

9.92% 17.09%

$11,781

NOTE

44 826 42 7

$147,440 $253,996

$141,372 $23,562 $23,562 $74,323 $5,498 $40,857 $420,700 $674,696 $811,765

UNDERWRITING NOTES

#

78

ADG MULTIFAMILY

27

S E C T I O N

04

LOC

AL MARKET

BAXTER PHOENIX

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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