CANe RUN STATION
OFFERING MEMORANDUM
CONTENTS
LEAD AGENTS
Jordan Dickman
First Vice President Investments
Cincinnati Office
D. 513.878.7735
jordan.dickman@marcusmillichap.com
Nick 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
“OUR COMMITMENT IS TO HELP OUR CLIENTS CREATE
AND PRESERVE WEALTH BY PROVIDING THEM WITH
THE BEST REAL ESTATE INVESTMENT SALES, FINANCING, RESEARCH AND ADVISORY SERVICES AVAILABLE.”
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.
01 - THE INVESTMENT 02 - local competitors 03 - FINANCIALS 04 - LOCAL MARKET SECTIONS
06 18 26 36
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
UNRIVALED SUCCESS IN THE MIDWEST
YOUR TEAM
JORDAN DICKMAN
FIRST VICE PRESIDENTS DIRECTOR, NMHG
NICK ANDREWS
FIRST VICE PRESIDENTS DIRECTOR, NMHG
CORPORATE SUPPORT
LIZ POPP
MIDWEST OPERATIONS MANAGER
JOSH CARUANA
VICE PRESIDENT
REGIONAL MANAGER
INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY
AUSTIN SUM
SENIOR INVESTMENT ASSOCIATE
BRIAN JOHNSTON
INVESTMENT ASSOCIATE
AUSTIN Hall
INVESTMENT ASSOCIATE
ALDEN SIMMS
INVESTMENT ASSOCIATE
BROKER SUPPORT
SAM PETROSino
VALUATION & RESEARCH
skyler WILSON
CLIENT RELATIONS MANAGER
JOHN SEBREE
SENIOR VICE PRESIDENT
NATIONAL DIRECTOR
NATIONAL MULTI HOUSING GROUP
MICHAEL GLASS
SENIOR VICE PRESIDENT
MIDWEST DIVISION MANAGER
NATIONAL DIRECTOR, MANUFACTURED HOME COMMUNITIES GROUP
BRITTANY CAMPBELL-KOCH
DIRECTOR OF OPERATIONS
ALEX PAPA
MARKETING COORDINATOR
THE INVESTMENT
01
PROPERTY SNAPSHOT
CANE RUN STATION
Property Name: Cane Run Station
Property Address: 5010 Kaufman Ln
City, State, Zip: Louisville, KY 40216
County: St Dennis
Year Built/Reno: 2021
Number Of Units: 152
Avg Unit Size: 1078
Rentable Sqft: 163,856
Number of Parcels: 2
Lot Size (Acres): 12.01
Parking Type: Lot
Parking Surface: Paved
HVAC: Individual Electric
Water Heater: Individual Electric Boiler
Plumbing: Pex / PVC
Wiring: Copper
Foundation: Slab
Framing: Wood
Roofs Pitched Shingle
Exterior of Building: Vinyl Exterior with Brick Skirt
UTILITIES
Electric: Tenant Paid
Water: Tenant (RUB)
Sewer: Tenant (RUB)
Trash: Tenant (RUB)
Cable & Internet: (Optional) Tenant
HIGHLIGHTS
CANE RUN STATION INVESTMENT
Marcus & Millichap is pleased to present the Cane Run Station Apartments, a 152-unit apartment complex located in South Louisville. This newly constructed property is located off Greenbelt Highway, a few minutes South of I-26 which presents an opportunity to continue stabilizing with loss to lease burn off, utility bill back, and market rent growth.
REVENUE GROWTH
Located in the St Dennis submarket, Cane Run Station Apartments is well-positioned for revenue growth with the opportunity to burn-off loss-to-lease, continue implementing a water RUB and a cable/Internet bill-back to further boost NOI.
LOSS TO LEASE BURNOFF
Cane Run Station easily achieved a $300 rental increase over the past 12 months ownership. With an average $155/mo of loss to lease in place, this provides an incoming investor a burn-off opportunity, and solidify the rental growth available in the market.
MARKET RENT GROWTH
Can Run Station market rents are on average $68 below the competitive set in the market. The Competitive Set 2-Bed Market Average Rent is $1294/mo, while Cane Run Station Apartments average market rent is $1,171/mo.
OTHER INCOME POTENTIAL | UTILITY BILL-BACK
Current ownership has started proving out additional revenue captured through utility billbacks with the following roll-outs:
• Utility RUB ($55 1 Bath / $65 2 Bath): ~75% of tenants enrolled.
• Cable and Internet billback of $70 per tenant ($42 cost per ownership): ~60% of tenants enrolled
An incoming investor can take advantage of this strategy that is already underway and capture additional income growth.
KY
RUN STATION
LOUISVILLE,
CANE
163,856 152 1,078 RENTABLE SQUARE FEET TOTAL UNITS AVG SF 2x1 72 2x2 80 % Leased 90% PROPERTY
SUMMARY CANE RUN STATION
UNIT AMENITIES
• LVP FLOORING
• WALK-IN LAUNDRY ROOM
• WASHER DRYER HOOKUPS
• OUTDOOR STORAGE
• BALCONY
CANE RUN STATION
CANE RUN STATION
apt AMENITIES
• Dog Park
• Dog Washing Station
• Grilling & Picnic Area
• Pergola and Outdoor Living Area
rent competitors
02
1 FINISH LINE 2 ASHBY GREEN APTS HOMES 3 VALLEY FARMS NORTH 4 NEWBERRY PARC RENT COMPARABLES
* ASHBY G R EENHOM E S 2 BED - $1,319 FINISH L I NE 2 BED - $1,373 CANE RU N STATION 2 BED - $1,276 VALLEY F ARMSNO R T H 2 BED - $1,463 NEWBER R Y PARC 2 BED - $1,096 2 3 4 1
LOCATION COMPetitors
TWO BEDROOM
FINISH LINE KITCHEN
NEWBERRY PARC BATHROOM
Property Year Built # of 2-Bed SF Market Rent Net Rent Net Rent/SF Occupancy Valley Farms North 2009 56 1259 $1,463.00 $1,463 $1.16 97% Southgate Landing 2002 140 1069 $1,373.00 $1,373 $1.28 90% Cooper Creek Apartments 1997 112 1300 $1,363.00 $1,363 $1.05 97% Finish Line Apartments 2020 100 1035 $1,373.00 $1,308 $1.26 90% Ashby Green Apartment Homes 2014 144 1157 $1,319.00 $1,304 $1.13 99% Cane Run Pro Forma 2021 152 1078 $1,221.32 $1,221 $1.13 90% Cane Run Average Effective 2021 152 1078 $1,146.81 $1,146 $1.06 90% Newberry Parc 2012 85 1000 $1,096.00 $1,096 $1.10 98% Valley Farms 2007 108 1164 $1,073.00 $1,073 $0.92 93% Renaissance St. Andrews 2001 30 1100 $1,023.00 $1,023 $0.93 94% River Breeze South Apartment Homes 2018 88 966 $1,026.00 $1,011 $1.05 99% Austin Park Apartments 2006 136 1119 $964.00 $949 $0.85 99% Commons at CANE RUN 2019 104 1044 $936.00 $936 $0.90 99% River Pointe Apartments 2021 140 945 $989.00 $924 $0.98 99% Overlook Terraces 2008 72 909 $976.00 $911 $1.00 97% The Woods of Glen Hill Manor 2003 54 834 $974.00 $909 $1.09 92%
UNITS 100 YEAR BUILT 2020 OCCUPANCY N/A UNIT MIX # Units Unit SF Rent Rent/SF 2 Bed 100 1,035 $1,373 $1.33 AMENITIES Pool Maintenance on site Fitness Center Sundeck Clubhouse UNIT FEATURES Balcony Tub/Shower Oven Vinyl Flooring Range Washer/Dryer Hookup FINISH LINE
ASHBY GREEN APT HOMES
AMENITIES Clubhouse Pool Fitness Center Walking/Biking Trails Furnished Units Available UNIT FEATURES Air Conditioning Oven Balcony Patio Carpet Range
UNITS 244 YEAR BUILT 2014 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF 2 Bed 144 1,157 $1,319 $1.14
UNITS 160 YEAR BUILT 2009/2015 OCCUPANCY N/A UNIT MIX # Units Unit SF Rent Rent/SF 2 Bed 56 1,259 $1,463 $1.16 AMENITIES Business Center Laundry Service Clubhouse Maintenance on site Concierge Package Service UNIT FEATURES Recreation Room Dishwasher Refrigerator Hardwood Floors
VALLEY FARMS NORTH
NEWBERRY PARC
AMENITIES Laundry Facilities Pool UNIT FEATURES Air Conditioning Refrigerator Cable Ready Tub/Shower Disposal Washer/Dryer Hardwood Floors Wheelchair Accessible (Rooms)
UNITS 132 YEAR BUILT 2012 OCCUPANCY N/A UNIT MIX # OF UNITS SQFT RENT RENT/SF 2 Bed 85 1,000 $1,096 $1.10
the financials
03
CANE RUN FINANCIALS
UNIT MIX SUMMARY
AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL SUMMARY Two Bedroom 152 Units 1,078 SF 163,856 SF $1,146.81 $1.06 $174,314 $1,171.32 $1.09 SF $178,040 $1,221.32 $1.13 SF $185,640 Totals / Wtd. Averages 152 Units 1,078 SF 163,856 SF $1,146.81 $1.06 SF $174,314 $1,171.32 $1.09 SF $178,040 $1,221.32 $1.13 SF $185,640
VACANCY
NEW LEASES PRICE/SQFT JUL 22 - JUN 23 JUL 22 - JUN 23
LEASING TRENDS
CANE RUN FINANCIALS UNIT MIX BREAKDOWN
AVERAGE EFFECTIVE MARKET PROJECTED UNIT TYPE NO. OF UNITS RENTABLE SF TOTAL SF RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL RENT/UNIT RENT/SF TOTAL RENT POTENTIAL Two Bedroom 2BR/1BA 72 Units 1,038 SF 74,736 SF $1,130.40 $1.09 SF $81,389 $1,145.00 $1.10 SF $82,440 $1,195.00 $1.15 SF $86,040 2BR/2BA 80 Units 1,114 SF 89,120 SF $1,161.57 $1.04 SF $92,926 $1,195.00 $1.07 SF $95,600 $1,245.00 $1.12 SF $99,600 Totals / Wtd. Averages 152 Units 1,078 SF 163,856 SF $1,146.81 $1.06 SF $174,314 $1,171.32 $1.09 SF $178,040 $1,221.32 $1.13 SF $185,640
UNIT DISTRIBUTION UNIT RENTS $1,221 1,078 $1.13 90% $1,196 1,117 $1.07 96% PRO FORMA COMPETITORS CANE RUN VS COMPETITORS AVG EFFECTIVE AVG SQFT RENT/SQFT OCCUPANCY CANE RUN
CANE RUNFINANCIALS
CURRENT RENT ROLL: AS OF JUNE 15, 2023 INCOME AND EXPENSES: JUNE 2022 - MAY 2023 YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $2,272,345 T12 14,950 $2,227,680 14,656 Gain (Loss) to Lease ($283,271) T12 12.47% (1,864) ($222,768) 10.00% (1,466) GROSS SCHEDULED RENT $1,989,075 13,086 $2,004,912 13,190 Other Income Internet Income $101,649 T3 5.11% 669 $125,260 Note 3 6.25% 824 Water Reimbursement $83,735 T3 4.21% 551 $97,584 Note 4 4.87% 642 Late Charges $27,169 T12 1.37% 179 $17,660 Note 5 0.88% 116 Non-Refundable Fees $22,905 T12 1.15% 151 $23,592 1.18% 155 Miscellaneous Income $21,588 T12 1.09% 142 $22,236 1.11% 146 Month to Month Income $12,016 T12 0.60% 79 $7,810 0.39% 51 Washer/Dryer Income $11,851 T3 0.60% 78 $7,703 0.38% 51 Total Other Income $298,965 15.03% 1,967 $320,438 15.98% 2,108 GROSS POTENTIAL INCOME $2,288,039 15,053 $2,325,350 15,298 Physical Vacancy ($201,972) T12 10.15% (1,329) ($100,246) 5.00% (660) Non-Revenue Units ($27,035) T12 Note 2 1.36% (178) ($14,200) Note 2 0.71% (93) Bad Debt ($8,233) RR 0.41% (54) ($10,025) 0.50% (66) Concessions Allowance ($30,831) T12 1.55% (203) $0 0.00% 0 EFFECTIVE GROSS INCOME $2,019,969 74.06% 13,289 $2,200,880 83.79% 14,479 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI 2022 Taxes Paid $202,020 Auditor 10.00% 1,329 $202,020 9.18% 1,329 Adjustment for Sale $67,714 3.35% 445 $67,714 3.08% 445 Total Real Estate Taxes $269,735 13.35% 1,775 $269,735 12.26% 1,775 Insurance $45,907 T12 2.27% 302 $45,600 2.07% 300 Utilities Electric - Common $11,926 T12 0.59% 78 $12,164 0.55% 80 Electric Vacant $11,820 T12 0.59% 78 $12,056 0.55% 79 Water & Sewage $98,140 T12 4.86% 646 $100,103 4.55% 659 Trash Removal $12,326 T12 0.61% 81 $12,572 0.57% 83 Total Utilities $134,212 6.64% 883 $136,896 6.22% 901 Total Non-Controllable $449,854 22.27% 2,960 $452,231 20.55% 2,975 CONTROLLABLE Contract Services Security Expense $5,533 T12 0.27% 36 $0 0.00% 0 Snow Removal $0 0.00% 0 $7,600 Note 6 0.35% 50 Landscaping/Grounds $32,504 T12 1.61% 214 $26,600 Note 6 1.21% 175 Pest Control $1,634 T12 0.08% 11 $3,800 0.17% 25 Total Contract Services $39,671 1.96% 261 $38,000 1.73% 250 Repairs & Maintenance $121,693 T12 6.02% 801 $98,800 4.49% 650 Marketing & Promotion $27,145 T12 1.34% 179 $19,000 Note 7 0.86% 125 On-Site Payroll $219,643 T12 10.87% 1,445 $152,000 6.91% 1,000 Payroll Taxes & Benefits $38,971 T12 1.93% 256 $30,400 1.38% 200 General & Administrative $33,209 T12 1.64% 218 $22,800 1.04% 150 Management Fee $57,678 T12 2.86% 379 $66,026 3.00% 434 Telephone & Cable $75,616 T12 3.74% 497 $85,014 Note 8 3.86% 559 Replacement & Reserves $38,760 Note 1 1.92% 255 $39,535 1.80% 260 Total Controllable $652,384 32.30% 4,292 $551,576 25.06% 3,629 TOTAL EXPENSES $1,102,238 54.57% 7,252 $1,003,806 45.61% 6,604 NET OPERATING INCOME $917,730 45.43% 6,038 $1,197,074 54.39% 7,875 EXPENSE INCOME INCOME
& EXPENSES
# NOTE
UNDERWRITING NOTES
1 Replacement & Reserves: added based on market norm of $255 per unit per year
2 Non Renvenue Units: Includes $14,635 for the model units & $12,400 for an employee unit. Year 1 includes $14,200 for the model unit only.
3 Internet Income: Based on cable contract analysis. Supporting document available upon request.
4 Water Reimbursement: 70% of tenants currently charged for reimbursement, 'Year 1' expected 100% of
5 Late Charges: Normalized down by 35%
6 Snow/Landscaping Expense: Snow was included in trailing as 'Landscaping/Ground'; broken out
7 Adversting Expense: Reduced starting 'Year 1' with property being stabilized.
8 Internet/Cable Expense: Trailing includes a one-time expense, moving forward charge is calculated
GROSS POTENTIAL RENT
OPERATING EXPENSES
YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit $2,316,787 15,242 $2,409,459 15,852 ($115,839) 5.00% (762) ($48,189) 2.00% (317) $2,200,948 14,480 $2,361,270 15,535 $129,018 5.86% 849 $132,888 5.63% 874 $100,512 4.57% 661 $103,527 4.38% 681 $18,190 0.83% 120 $18,735 0.79% 123 $24,300 1.10% 160 $25,029 1.06% 165 $22,903 1.04% 151 $23,590 1.00% 155 $8,045 0.37% 53 $8,286 0.35% 55 $7,934 0.36% 52 $8,172 0.35% 54 $330,051 15.00% 2,171 $339,953 14.40% 2,237 $2,530,999 16,651 $2,701,223 17,771 ($110,047) 5.00% (724) ($118,063) 5.00% (777) ($13,646) 0.62% (90) ($14,640) 0.62% (96) ($11,005) 0.50% (72) ($11,806) 0.50% (78) $0 0.00% 0 $0 0.00% 0 $2,396,301 88.88% 15,765 $2,556,713 91.88% 16,820 % of EGI Per Unit % of EGI Per Unit $202,020 8.43% 1,329 $202,020 8.43% 1,329 $67,714 2.83% 445 $67,714 2.83% 445 $269,735 11.26% 1,775 $269,735 11.26% 1,775 $46,512 1.94% 306 $47,442 1.98% 312 $12,408 0.52% 82 $12,656 0.53% 83 $12,297 0.51% 81 $12,543 0.52% 83 $102,105 4.26% 672 $104,147 4.35% 685 $12,824 0.54% 84 $13,080 0.55% 86 $139,634 5.83% 919 $142,427 5.94% 937 $455,881 19.02% 2,999 $459,603 19.18% 3,024 $0 0.00% 0 $0 0.00% 0 $7,752 0.32% 51 $7,907 0.33% 52 $27,132 1.13% 179 $27,675 1.15% 182 $3,876 0.16% 26 $3,954 0.16% 26 $38,760 1.62% 255 $39,535 1.65% 260 $100,776 4.21% 663 $102,792 4.29% 676 $15,200 0.63% 100 $15,504 0.65% 102 $155,040 6.47% 1,020 $158,141 6.60% 1,040 $31,008 1.29% 204 $31,628 1.32% 208 $23,256 0.97% 153 $23,721 0.99% 156 $71,889 3.00% 473 $76,701 3.00% 473 $86,714 3.62% 570 $88,449 3.69% 582 $40,326 1.68% 265 $41,132 1.72% 271 $562,969 23.49% 3,704 $577,603 23.90% 3,768 $1,018,850 42.52% 6,703 $1,037,207 43.28% 6,824 $1,377,452 57.48% 9,062 $1,519,506 63.41% 9,997
CASH FLOW
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE FEB-2024 YE JAN-2025 YE JAN-2026 YE JAN-2027 YE JAN-2028 YE JAN-2029 YE JAN-2030 YE JAN-2031 YE JAN-2032 YE JAN-2033 GROSS POTENTIAL RENT All Units at Market Rent $2,272,345 $2,227,680 $2,316,787 $2,409,459 $2,505,837 $2,606,071 $2,710,313 $2,818,726 $2,931,475 $3,048,734 $3,170,683 Gain (Loss) to Lease ($283,271) ($222,768) ($115,839) ($48,189) ($50,117) ($52,121) ($54,206) ($56,375) ($58,629) ($60,975) ($63,414) GROSS SCHEDULED RENT $1,989,075 $2,004,912 $2,200,948 $2,361,270 $2,455,720 $2,553,949 $2,656,107 $2,762,351 $2,872,845 $2,987,759 $3,107,270 Total Other Income $298,965 $320,438 $321,268 $330,907 $337,525 $344,275 $351,161 $358,184 $365,348 $372,655 $380,108 GROSS POTENTIAL INCOME $2,288,039 $2,325,350 $2,522,216 $2,692,176 $2,793,245 $2,898,224 $3,007,268 $3,120,535 $3,238,193 $3,360,414 $3,487,377 Physical Vacancy ($201,972) ($100,246) ($110,047) ($118,063) ($122,786) ($127,697) ($132,805) ($138,118) ($143,642) ($149,388) ($155,363) Non-Revenue Units ($27,035) ($14,200) ($13,646) ($14,640) ($15,225) ($15,834) ($16,468) ($17,127) ($17,812) ($18,524) ($19,265) Bad Debt ($8,233) ($10,025) ($11,005) ($11,806) ($12,279) ($12,770) ($13,281) ($13,812) ($14,364) ($14,939) ($15,536) EFFECTIVE GROSS INCOME $2,019,969 $2,200,880 $2,387,518 $2,547,666 $2,642,955 $2,741,923 $2,844,714 $2,951,479 $3,062,375 $3,177,563 $3,297,212 Real Estate Taxes $269,735 $269,735 $269,735 $269,735 $275,129 $280,632 $286,245 $291,969 $297,809 $303,765 $309,840 Insurance $45,907 $45,600 $46,512 $47,442 $48,391 $49,359 $50,346 $51,353 $52,380 $53,428 $54,496 Utilities $134,212 $136,896 $139,634 $142,427 $145,275 $148,181 $151,144 $154,167 $157,251 $160,396 $163,603 Contract Services $39,671 $38,000 $38,760 $39,535 $40,326 $41,132 $41,955 $42,794 $43,650 $44,523 $45,414 Repairs & Maintenance $121,693 $98,800 $100,776 $102,792 $104,847 $106,944 $109,083 $111,265 $113,490 $115,760 $118,075 Marketing & Promotion $27,145 $19,000 $15,200 $15,504 $15,814 $16,130 $16,453 $16,782 $17,118 $17,460 $17,809 On-Site Payroll $219,643 $152,000 $155,040 $158,141 $161,304 $164,530 $167,820 $171,177 $174,600 $178,092 $181,654 Payroll Taxes & Benefits $38,971 $30,400 $31,008 $31,628 $32,261 $32,906 $33,564 $34,235 $34,920 $35,618 $36,331 General & Administrative $33,209 $22,800 $23,256 $23,721 $24,196 $24,679 $25,173 $25,677 $26,190 $26,714 $27,248 Management Fee $57,678 $66,026 $71,889 $76,701 $79,289 $82,258 $85,341 $88,544 $91,871 $95,327 $98,916 Telephone & Cable $75,616 $85,014 $86,714 $88,449 $90,218 $92,022 $93,862 $95,740 $97,654 $99,607 $101,600 Replacement & Reserves $38,760 $39,535 $40,326 $41,132 $41,955 $42,794 $43,650 $44,523 $45,414 $46,322 $47,248 TOTAL EXPENSES $1,102,238 $1,003,806 $1,018,850 $1,037,207 $1,059,004 $1,081,567 $1,104,637 $1,128,226 $1,152,347 $1,177,012 $1,202,235 NET OPERATING INCOME $917,730 $1,197,074 $1,368,669 $1,510,460 $1,583,951 $1,660,355 $1,740,077 $1,823,253 $1,910,028 $2,000,551 $2,094,977 INCOME EXPENSE CANE RUNFINANCIALS
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Income Gross Potential Rent -1.97% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% (Loss) / Gain to Lease* 10.00% 5.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenses Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Management Fee** 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.71% 0.62% 0.62% 0.62% 0.62% 0.62% 0.62% 0.62% 0.62% Bad Debt 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 6.21% 6.12% 6.12% 6.12% 6.12% 6.12% 6.12% 6.12% 6.12% Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code 5010-5040 Kaufman Ln 101-804-460-000 2021 9.95 $12,787,755 $12,787,755 0.012450 $159,207.93 3311 Bridwell 101-804-500-000 2021 2.12 $3,434,695 $3,434,695 0.012465 $42,812.20 Total 12.07 $16,222,450 $16,222,449 $202,020.13
local market
04
LOUISVILLE, Kentucky
Situated on the banks of the Ohio River, Louisville is a progressive community of 1.3 million people. Louisville is one of the most uniquely authentic destinations in the world. It is Kentucky’s largest city and offers hundreds of one-of-a-kind attractions. Whether you are north, south, east, or west – Louisville offers a slew of attractions and historic architecture in every direction. Three of the state’s six Fortune 500 companies call Louisville home – Humana, Kindred Health, and Yum! Brands.
The area provides an attractive business environment for companies due to its location and low cost of doing business, while allowing employees to enjoy a relatively affordable place to live. The economy has transitioned from traditional manufacturing and shipping to health-
care, tourism, and technology. Tourism in the state of Kentucky has a $3.5 billion economic impact from Louisville alone. While the economic impact is very significant, the results are even more so, as they positively affect the quality of life in Louisville. Through maintaining its commitment to the tourism industry, Louisville can enrich and nurture its infrastructure, allowing it to consistently rank as one of the top cities in the nation for quality of life. Foodies and food trucks, brew masters and bourbon, sports, tradition, and transformation - it’s all happening in Louisville. With such a vibrant quality of life, Louisville is a great place to call home.
EMPLOYERS IN THE NEWS
• Amazon building new $5.5MM last-mile delivery station at prime Louisville property adding close to 2,000 new jobs (March 2021).
• GE Appliances completes $60MM expansion adding 245 new jobs (July 2021)
• Ge Appliances set to invest $450MM at its Appliance park in the next 2 years adding over 2,000 new jobs (Oct 2021)
• QSR Automations opens new global headquarters in Louisville, KY (Nov 2021)
• KCC Manufacturing breaks ground on 700-job operation in Shelby County (Nob 2021)
• Republic National Distributing Co. breaks ground on a relocation and expansion project that will create 30 full-time jobs with a $50 million investment (Sep 2021).
• Baptist Health to build $42M rehabilitation hospital in Jeffersontown (Nov 2021)
AMAZON LAST MILE DELIVERY STATION
Population: 1,300,000
Median age: 39.2
the ECONOMY
• Prior to the pandemic, Louisville/Jefferson County’s real gross metropolitan product grew at an average annual rate of 1.8% from 2015 to 2019. During that same fiveyear period, job growth averaged 1.5% annually, with roughly 9,800 jobs added on average each year. In 2020, COVID· 19 mitigation measures and limited business activity caused the local economy to contract as much as 9.0% year-over-year in 2nd quarter.
• In 3rd quarter 2022, the metro’s inflation-adjusted economic output was unchanged year-over-year.
• At the same time, the metro recorded a net gain of 22,600 jobs, expanding the employment base 3.4%.
• During the past year, job gains in Louisville/Jefferson County were most pronounced in the Professional/Business Services sector followed by Education/Health Services.
• Despite job losses stemming from the pandemic, Louisville/Jefferson County’s current employment base now sits roughly 16,600 jobs or about 3% above the pre-pandemic level in February 2020.
DEMOGRAPHICS: STATISTICS
Msa median hhi: $57,405
1 - Year growth: 1.77%
Msa median home value: $173,500
1 - Year growth: 4.83%
Average occupancy: 96.4%
Rent growth:6%
SUPPLY
New apartment completions in Louisville/Jefferson County were moderate recently, as 1.958 units deliv ered in the year-ending 3rd quarter 2022. Completions over the past year expanded the local inventory base 2.1%. In the past year, supply was greatest in Northwest Louisville and Northeast Louisville. At the end of 3rd quarter 2022, there were 1,896 units under construc tion with 1,516 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the com ing year are expected to be concentrated in Northwest Louisville and Southwest Louisville.
OCCUPANCY
Occupancy in the past year, occupancy lost 0.6 points, with the 3rd quarter 2022 rate landing at 95.8%. Look ing at product classes in Louisville/Jefferson County, 3rd quarter 2022 occupancy registered at 94.8% in Class A units, 95.8% in Class B units and 97.0% in Class C units. Among submarkets, 3rd quarter 2022 occupancy was strongest in Northwest Louisville and Southeast Lou isville. The weakest readings were seen in Central Louisville and Southwest Louisville. Over the past five years, Northwest Louisville generally led for occupancy. During the coming year, occupancy in Louisville/Jeffer son County is expected to register around 95.5%.
LOUISVILLE SLUGGER
Batter up! It takes a special place to craft the #1 Bat in Major League Baseball. At Louisville Slugger Museum & Factory, experience history-in-the-making as you stroll through the actual factory where world-famous Louisville Slugger bats are created. The award-winning factory tour is a highlight of the visit here, but there’s plenty more to enjoy along with it.
EVAN WILLAMS BOURON
In 1783, our namesake opened Kentucky’s First Distillery on the banks of the Ohio River. Many years and barrels later, we still produce Bourbon the right way, using the same time-honored methods.
ATTRACTIONS
Located on Louisville’s historic “Whiskey Row”, the Evan Williams Bourbon Experience features an artisanal distillery, tours, educational tastings, and more!
FOURTH STREET LIVE
Fourth Street Live! is Louisville’s premier dining and entertainment destination, located in the heart of downtown Louisville, Kentucky. A short walk from historic downtown hotels, the Kentucky International Convention Center, Waterfront Park, the KFC YUM Center, Slugger Field, and much more, Fourth Street Live!
ATTRACTIONS
the bourbon business
We are a city of hot browns and Ali, riverfront parks and Slugger bats. We throw parties for horse races and pronounce Louisville like we’ve already had a taste of bourbon.
We are a place of unique offerings and world-class attractions –and our Bourbon District is no exception.
Located in Downtown Louisville, the Bourbon District is a walkable urban experience for anyone looking for a taste of Kentucky. In the Bourbon District, you’re never more than 5 minutes away from the next attraction, so planning that group tour or birthday celebration just got a lot easier.
Attractions
that will quench your thirst for a taste of Kentucky.
Enjoy the Bourbon District, Downtown’s unique walkable experience. Whether you’re a Louisville native on an afternoon stroll, in town on business with a couple hours to spare, or a bourbon connoisseur looking to expand your palate, our Bourbon District distilleries will transport you through generations of history, community, and passion.
kentucky derby interesting stats
165,000 FACILITY CAPACITY
Located in South Louisville, Churchill Downs is a Thoroughbred racetrack known for hosting the annual Kentucky Derby. It is the world’s most legendary racetrack. The first Kentucky Derby and Kentucky Oaks were both held in 1875, which was the year that the racetrack opened. The racetrack at Churchill Downs is 147 acres and features a seven-furlong turf racecourse and a one-mile dirt, oval racetrack. The racetrack can accommodate over 165,000 guests on Derby Day.
147 ACRES OCCUPIED BY RACETRACK
$373M DIRECT ECONOMIC IMPACT
146 YEARS RUNNING
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