FRANCIS PLACE DUPLEXES
Tim VanWingerden
Associate
Louisville
D. 513.878.7750
tim.vanwingerden@marcusmillichap.com
Jordan Dickman First Vice President Investments Cincinnati Office D. 513.878.7735
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
Nick Andrews First Vice President Investments Cincinnati Office
D. 513.878.7741
nicholas.andrews@marcusmillichap.com
jordan.dickman@marcusmillichap.com Austin Sum Senior Associate Cincinnati Office D. 513.878.7747
austin.sum@marcusmillichap.com
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.
LEAD AGENTS SUBMITTED BY:
24 | THE FINANCIALS 01 02 03 04 32 | LOCAL MARKET 16 | LOCAL COMPETITORS 06 | THE INVESTMENT CONTENTS BROKER CAPABILITIES & OPINION OF VALUE
CALABASAS, CALIFORNIA | HQ 2,500 | EMPLOYEES 80+ | OFFICES
UNRIVALED SUCCESS
THE MIDWEST Nick Andrews First Vice President Investments Director, NMHG Jordan Dickman First Vice President Investments Director, NMHG OPERATIONS Brittany Campbell-Koch Director of Operations Liz Popp Midwest Operations 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 Josh Caruana Vice President Regional Manager Indianapolis | Cincinnati | Louisville St Louis | Kansas City Austin Sum Senior Investment Associate JD Schmerge Investment Associate Brian Johnston Investment Associate INVESTMENT ADVISORS Tim VanWingerden Investment Associate DEBT & STRUCTURED FINANCE Chris Litzler Senior Director of Organization MMCC Sam Petrosino Financial & Research Analyst VALUATION & RESEARCH Skyler Wilson Client Relations Manager CLIENT RELATIONS Alex Papa Marketing Coordinator Kristin Smith Marketing MARKETING Austin Hall Investment Associate
IN
01 SECTION THE INVESTMENT
INVESTMENT
FRANCIS PLACE DUPLEXES INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to present West Francis Place Duplexes, a 20-unit portfolio of contiguous duplexes located in Clarksville, IN. Highlighted for its nature views of Mill Creek, West France Place Duplexes have undergone extensive renovation and provide an opportunity for revenue growth through operational upside.
INVESTMENT HIGHLIGHTS
• Loss-to-lease burn off: Renovated units are renting for $50 higher providing a loss-to-lease opportunity
• Turn-key opportunity: Little to no deferred maintenance.
• Resident retention: duplex units provide a stable tenant base.
THE MARKET
• The Clarksville Redevelopment Commission plans to redevelop their downtown infrastructure and has already invested $30MM in acquisition and development with the intent to redesign the streets and draw in new investment.
Upcoming multifamily developments include:
• Current812 - a Class A retail and luxury apartment townhome complex under construction on Clarksville’s riverfront.
• Bolt+Tie: an award winning main street luxury A Class apartment high-rise.
FRANCIS PLACE DUPLEXES
22,000 20 1,100
PROPERTY SUMMARY
*Lease percentage does not include two units currently undergoing renovations.
RECENT CAPEX INCLUDES:
• All roofs replaced
• Landscaping throughout
• Replaced exterior doors
• Full Interior Renovations
RENTABLE SQUARE FEET TOTAL UNITS AVG SF #2 Bedrooms / 1.5 Bathroom 20 % Leased
% Preleased
77%
94.4%
PROPERTY SNAPSHOT
FRANCIS PLACE DUPLEXES
Property Name: Francis Place Apartments
Property Address: 600-638 Francis Ave
City, State, Zip: Clarksville, IN 47219
County: Clark
Year Built/Reno: 1987
Number Of Units: 20
Avg Unit Size: 1,100
Rentable Sqft: 22,000
Number of Parcels: 10
Lot Size (Acres): 1.29
# of Buildings: 10
# of Stories: 2
Parking: Paved Lot
HVAC Individual
Wiring Copper
Framing: Wood
Roofs Dimensional Shingle (2022)
Exterior of Building: Mansonry
Water Heater: Individual Plumbing: Original
Foundation: Slab
UTILITIES
Electric: Tenant
Gas: NA
Water Tenant
Sewer Tenant
Trash: Owner
FRANCIS PLACE DUPLEXES
INTERIOR UNITS FEATURING FULL INTERIOR RENOVATIONS
1) painted cabinets
2) new laminate countertops
1) new toilet
2) new tub and tub surround
2 1 3 2 1
3) new bathroom vanity
1) UPGRADED LIGHT FIXTURES (2 NEW PAINT (3 NEW LVP FLOORING 2 1 3
FRANCIS PLACE DUPLEXES
EXTERIOR PHOTOS
EXTERIOR
FULL ROOF REPLACEMENT ON ALL 20 UNITS
DRIVEWAY PARKING
NEW EXTERIOR DOORS
BACKYARD
NEW DRAINAGE
EXTERIOR
NEW EXTERIOR DOORS CONCRETE REPLACEMENT (AS NEEDED)
EXTERIOR
02
SECTION LOCAL COMPETITORS
COMPETITORS
RENT COMPARABLES
1 GREENTREE TOWNHOMES 2 NORTH MARSHAL AVE 3 CAMBRIDGE APARTMENTS 4 BOLT & TIE 5 HUNTLEY RIDGE TOWNHOMES 6 PIONEER VILLAGE APTS 7 CAMBRIDGE APTS 8 BOLT + TIE 9 307 N MARSHALL AVE 10 317 DEPAUW AVE 11 1908 HAND AVE 12 OAKS AT RIVERPOINT
* 2 4 1 3
LOCATION COMPS 5 6 7 8 9 10 11 12
FRANCIS PLACE DUPLEXES
RENT SORT COMPS
Property Year Built Unit Type # of 2 Beds SF Market Rent Utility Adjustment/Month Net Rent Net Rent/SF Bolt + Tie 2021 2x2 33 1191 $1,629.00 $0 $1,629 $1.37 112 Myrtle St 1960s 2x1 SFH 1000 $1,295.00 $0 $1,295 $1.30 St. James Place 2021 2x2 10 1077 $1,210.00 $0 $1,210 $1.12 Gateway Crossing 2020 2x2 71 1118 $1,195.00 $0 $1,195 $1.07 Huntley Ridge Townhomes 1979 2x1.5 57 936 $1,085.00 $0 $1,085 $1.16 Cambridge Apartments 1969 2x1.5 76 1100 $1,025.00 $0 $1,025 $0.93 Francis Place Pro Forma 1987 2x1.5 20 1100 $999.00 $0 $999 $0.91 Blackiston Park Place Apartments 2008 2x1 35 1150 $975.00 $15 $960 $0.83 307-309 N Marshall Ave 1956 2x1 13 950 $936.00 $65 $871 $0.92 1908 Hand Ave 1940 2x1 SFH 1100 $925.00 $0 $925 $0.84 The Oaks at Riverpoint 2008 2x1 15 1100 $925.00 $65 $860 $0.78 317 Depauw Ave 1940 2x1 SFH 1000 $900.00 $0 $900 $0.90 Alyson Circle Apartments 1997 2x1.5 38 900 $900.00 $15 $885 $0.98 Pioneer Village Apartments 1963 2x1 20 850 $900.00 $65 $835 $0.98 Spring Manor Apartments 1979 2x1 32 720 $860.00 $65 $795 $1.10 River Chase Apartments 1972 2x1 182 1000 $859.00 $65 $794 $0.79 Francis Average Effective 1987 2x1.5 20 1100 $858.00 $15 $843 $0.71 Averages 1982 1,023 $1,025 $48 $847 $0.89
UNITS 13 YEAR BUILT 1956 OCCUPANCY 100% UNIT MIX # Units Unit SF Rent Rent/SF 2 Bed 13 950 $936 $0.99 UNIT FEATURES Heating Range, Kitchen Refrigerator Air Conditioning Washer/Dryer Hook Ups Tile Flooring Wood Laminate Flooring
MARSHALL
NORTH
AVE
HUNTLEY RIDGE
AMENITIES Pet Play Area Laundry Facilities Fitness Center UNIT FEATURES Air Conditioning Disposal Cable Ready Heating Carpet High Speed Internet Access Ceiling Fans Walk-In Closets Dishwasher
UNITS 57 YEAR BUILT 1979 OCCUPANCY 90% UNIT MIX # OF UNITS SQFT RENT RENT/SF 2 Bed 57 936 $1,021 $1.09
UNITS 116 YEAR BUILT 1969 OCCUPANCY 100% UNIT MIX # Units Unit SF Rent Rent/SF 1 Bed 68 638 $825 $1.29 2 Bed 48 973 $1,025 $1.05 AMENITIES Clubhouse Laundry Playground Sundeck UNIT FEATURES Walk-In Closets Dishwasher Washer Dryer Hookups CAMBRIDGE APARTMENTS
AMENITIES 24 Hour Access Lounge Bicycle Storage Maintenance on site Business Center On-Site Retail Car Charging Station Clubhouse Package Service Community-Wide WiFi Pet Play Area Conference Rooms Picnic Area UNIT FEATURES Balcony Stainless Steel Appliances Dishwasher Tub/Shower High Speed Internet Access
UNITS 33 YEAR BUILT 2021 OCCUPANCY 99% UNIT MIX # OF UNITS SQFT RENT RENT/SF 2 Bed 33 1,191 $1,629 $1.37
BOLT & TIE
03 SECTION THE FINANCIALS
FINANCIALS
FRANCIS PLACE DUPLEXES - FINANCIALS
UNIX MIX SUMMARY
AVERAGE EFFECTIVE MARKET TARGET 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 20 Units 1,100 SF 22,000 SF $858.06 $0.78 $17,161 $945.00 $0.86 SF $18,900 $999.00 $0.91 SF $19,980 Totals / Wtd. Averages 20 Units 1,100 SF 22,000 SF $858.06 $0.78 SF $17,161 $945.00 $0.86 SF $18,900 $999.00 $0.91 SF $19,980
FRANCIS PLACE DUPLEXES - FINANCIALS
UNIX MIX BREAKDOWN
AVERAGE EFFECTIVE MARKET TARGET 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/1.5BA 20 Units 1,100 SF 22,000 SF $858.06 $0.78 SF $17,161 $945.00 $0.86 SF $18,900 $999.00 $0.91 SF $19,980 Totals / Wtd. Averages 20 Units 1,100 SF 22,000 SF $858.06 $0.78 SF $17,161 $945.00 $0.86 SF $18,900 $999.00 $0.91 SF $19,980
INCOME & EXPENSES
FRANCIS PLACE DUPLEXESFINANCIALS CURRENT YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $226,800 RR 11,340 $239,760 11,988 Gain (Loss) to Lease ($18,780) 8.28% (939) ($4,795) 2.00% (240) GROSS SCHEDULED RENT $208,020 RR 10,401 $234,965 11,748 GROSS POTENTIAL INCOME $208,020 10,401 $234,965 11,748 Physical Vacancy ($10,401) Added 5.00% (520) ($11,748) 5.00% (587) Bad Debt $0 0.00% 0 ($2,350) 1.00% (117) EFFECTIVE GROSS INCOME $197,619 86.72% 9,881 $220,867 92.00% 11,043 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI Per Unit 2021 Taxes Paid $10,708 Auditor 5.42% 535 $10,708 4.85% 535 Total Real Estate Taxes $10,708 5.42% 535 $10,708 4.85% 535 Insurance $6,769 Note 2 3.43% 338 $6,000 2.72% 300 Utilities Electric $6,962 T8 3.52% 348 $7,101 3.22% 355 Trash Removal $1,885 T8 0.95% 94 $1,923 0.87% 96 Total Utilities $8,847 4.48% 442 $9,024 4.09% 451 Total Non-Controllable $26,324 13.32% 1,316 $25,732 11.65% 1,287 CONTROLLABLE Contract Services Snow Removal $0 0.00% 0 $700 0.32% 35 Landscaping/Grounds $4,425 T8 Note 3 2.24% 221 $4,000 1.81% 200 Pest Control $293 T8 0.15% 15 $700 0.32% 35 Total Contract Services $4,718 2.39% 236 $5,400 2.44% 270 Repairs & Maintenance $11,000 Note 3 5.57% 550 $11,000 4.98% 550 Marketing & Promotion $1,500 Note 3 0.76% 75 $1,500 0.68% 75 Payroll/Labor $16,000 Note 3 8.10% 800 $16,000 7.24% 800 Payroll Taxes & Benefits $1,500 Note 3 0.76% 75 $1,500 0.68% 75 General & Administrative $1,500 Note 3 0.76% 75 $1,500 0.68% 75 Management Fee $13,833 Note 3 7.00% 692 $15,461 7.00% 773 Replacement & Reserves $5,100 Note 1 2.58% 255 $5,202 2.36% 260 Total Controllable $55,151 27.91% 2,758 $57,563 26.06% 2,878 TOTAL EXPENSES $81,475 41.23% 4,074 $83,295 37.71% 4,165 NET OPERATING INCOME $116,144 58.77% 5,807 $137,572 62.29% 6,879 INCOME EXPENSE
UNDERWRITING NOTES # NOTE
YEAR 2
1 Replacement & Reserves: added based on market norm of $255 per unit per year
YEAR 3
# NOTE
UNDERWRITING NOTES
1 Replacement & Reserves: added based on market norm of $255 per unit per year
2 Added based on market norms % of GPR Per Unit % of GPR Per Unit $246,953 12,348 $254,361 12,718 ($4,939) 2.00% (247) ($5,087) 2.00% (254) $242,014 12,101 $249,274 12,464 $242,014 12,101 $249,274 12,464 ($12,101) 5.00% (605) ($12,464) 5.00% (623) ($2,420) 1.00% (121) ($2,493) 1.00% (125) $227,493 92.00% 11,375 $234,318 92.00% 11,716 % of EGI Per Unit % of EGI Per Unit $10,708 4.71% 535 $10,708 4.71% 535 $10,708 4.71% 535 $10,708 4.71% 535 $6,120 2.69% 306 $6,242 2.74% 312 $7,243 3.18% 362 $7,388 3.25% 369 $1,961 0.86% 98 $2,000 0.88% 100 $9,204 4.05% 460 $9,389 4.13% 469 $26,032 11.44% 1,302 $26,339 11.58% 1,317 $714 0.31% 36 $728 0.32% 36 $4,080 1.79% 204 $4,162 1.83% 208 $714 0.31% 36 $728 0.32% 36 $5,508 2.42% 275 $5,618 2.47% 281 $11,220 4.93% 561 $11,444 5.03% 572 $1,530 0.67% 77 $1,561 0.69% 78 $16,320 7.17% 816 $16,646 7.32% 832 $1,530 0.67% 77 $1,561 0.69% 78 $1,530 0.67% 77 $1,561 0.69% 78 $15,925 7.00% 796 $16,402 7.00% 796 $5,306 2.33% 265 $5,412 2.38% 271 $58,869 25.88% 2,943 $60,205 26.25% 2,986 $84,901 37.32% 4,245 $86,544 38.04% 4,327 $142,592 62.68% 7,130 $147,774 64.96% 7,389
CASH FLOW
FRANCIS PLACE DUPLEXESFINANCIALS 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 $226,800 $239,760 $246,953 $254,361 $261,992 $269,852 $277,948 $286,286 $294,875 $303,721 $312,832 Gain (Loss) to Lease ($18,780) ($4,795) ($4,939) ($5,087) ($5,240) ($5,397) ($5,559) ($5,726) ($5,897) ($6,074) ($6,257) GROSS SCHEDULED RENT $208,020 $234,965 $242,014 $249,274 $256,752 $264,455 $272,389 $280,560 $288,977 $297,646 $306,576 GROSS POTENTIAL INCOME $208,020 $234,965 $242,014 $249,274 $256,752 $264,455 $272,389 $280,560 $288,977 $297,646 $306,576 Physical Vacancy ($10,401) ($11,748) ($12,101) ($12,464) ($12,838) ($13,223) ($13,619) ($14,028) ($14,449) ($14,882) ($15,329) Bad Debt $0 ($2,350) ($2,420) ($2,493) ($2,568) ($2,645) ($2,724) ($2,806) ($2,890) ($2,976) ($3,066) EFFECTIVE GROSS INCOME $197,619 $220,867 $227,493 $234,318 $241,347 $248,588 $256,045 $263,727 $271,638 $279,788 $288,181 Real Estate Taxes $10,708 $10,708 $10,708 $10,708 $10,922 $11,141 $11,363 $11,591 $11,822 $12,059 $12,300 Insurance $6,769 $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171 Utilities $8,847 $9,024 $9,204 $9,389 $9,576 $9,768 $9,963 $10,162 $10,366 $10,573 $10,784 Contract Services $4,718 $5,400 $5,508 $5,618 $5,731 $5,845 $5,962 $6,081 $6,203 $6,327 $6,453 Repairs & Maintenance $11,000 $11,000 $11,220 $11,444 $11,673 $11,907 $12,145 $12,388 $12,636 $12,888 $13,146 Marketing & Promotion $1,500 $1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 On-Site Payroll $16,000 $16,000 $16,320 $16,646 $16,979 $17,319 $17,665 $18,019 $18,379 $18,747 $19,121 Payroll Taxes & Benefits $1,500 $1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 General & Administrative $1,500 $1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 Management Fee $13,833 $15,461 $15,925 $16,402 $16,894 $17,401 $17,923 $18,461 $19,015 $19,585 $20,173 Replacement & Reserves $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 TOTAL EXPENSES $81,475 $83,295 $84,901 $86,544 $88,439 $90,377 $92,358 $94,385 $96,457 $98,576 $100,744 NET OPERATING INCOME $116,144 $137,572 $142,592 $147,774 $152,908 $158,211 $163,687 $169,342 $175,182 $181,211 $187,438
INCOME EXPENSE
*Calculated as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income
CASH
SALE YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Income Gross Potential Rent 5.71% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 2.00% 2.00% 2.00% 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% 3.00% Expenses Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Management Fee** 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 Physical Vacancy 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
FLOW PROJECTION GROWTH RATE ASSUMPTIONS
04 SECTION LOCAL MARKET
MARKET
FRANCIS PLACE DUPLEXES
CLARKSVILLE, IN
Clarksville’s is located right at the center of Louisville’s strong metro area providing superb access to a robust and diverse labor market. Residents of Clarksville enjoy the lower cost of living while taking advantage of the access to the Louisville metro. According to the City of Clarksville Economic Development, Clarksville has access to more than 850,000 jobs in less than an hour’s drive.
“Clarksville, Indiana leaders are fond of saying “it begins here.” A simple slogan, yes, but one reflecting their exciting vision for the future of what some describe as the sunny side of Louisville. Our community sits on the north bank of the Ohio River, directly across from Downtown Louisville, and well-connected to the entire metro area through a robust transportation network (for example, we’re less than 20 minutes from the airport). Our residents
enjoy everything the metro area has to offer at a significantly lower cost of living. So it’s no wonder developers and other business owners are noticing and taking advantage of Clarksville’s many assets.
People who want to work, live and play close to home notice it, too, and we’re seeing retail and residential growth supporting that. For example, developers are investing in innovative projects like Bolt + Tie and Current812 that capture the needs of a growing group and give them great views of our historic riverfront and the shimmering skyline across the way. That exciting growth is occurring atop a solid base of stable residential neighbors and longstanding retail districts, along with highly rated K-12 and postsecondary schools.
If your company also has an exciting vision for the future, we’d welcome the chance to share ours.”
- Clarksville IN Business
ECONOMIC DEVELOPMENT
According to The Evening News and the Tribune, Clarksville is going to be busy in 2023 with a number of upcoming developments:
• Reconstruction of Main Street.
• Several street construction projects
• Denton Floyd to shape new downtown area with mixed use development
• Stormwater and sewer upgrades planned across town
• Ashland Park purchase underway to upgrade playground expected Q4 2023
IN THE NEWS
Clarksville holds groundbreaking for New Downtown Street Grid (WAVE News, May 2022)
Southern Indiana awarded $50MM in state funding for economic development (ONE Southern Indiana, May 2022)
Apartment complex [Green Bend] gets another green light from Clarksville council (News and Tribune, Feb 2022)
Crews break ground on new luxury apartments, townhomes in Clarksville [Current 812], (WDRP, April 2022)
Denton Floyd Realty Group Selected to Develop Three Properties in South Clarksville (City of Clarksville, Dec 2022)
Clarksville launches new websites in effort to bring in new businesses, talent to area (WDRB, May 2022)
Clarksville’s Turnbridge/River District could usher in $200M of development (Main Street Clarksville, Oct 2022)
FRANCIS PLACE DUPLEXES
LOUISVILLE, KY
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 $5.5M Last-mile delivery station at prime Louisville property adding close to 2,000 new jobs (March 2021)
• GE Appliances completes $60M expansion adding 245 new jobs (July 2021)
• GE Appliances set to invest $450M 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 break ground on 700-Job operation in Shelby County (Nov 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
ECONOMY
• Prior to the pandemic, Louisville/Jefferson County’s real gross metropolitan product grew at an average annual rate of 2.0% from 2015 to 2019. During that same five-year 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 10.5% year-over-year in 2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjusted economic output expanded 4.6%.
• The metro recorded a net gain of 22,400 jobs, expanding the employment base 3.5%. As such, Louisville/Jefferson County’s unemployment rate in August 2021 declined 2.2 points yearover-year to 3.4%, below the national
DEMOGRAPHICS: STATISTICS
Msa median hhi: $57,405
1
-
Year growth: 1.77%
Msa median home value: $173,500
1
- Year growth: 4.83%
average of 5.3%.
• During the past year, job gains in Louisville/ Jefferson County were most pronounced in the Trade/Transportation/ Utilities sector followed by Leisure/ Hospitality Services. Despite job losses stemming from the pandemic, Louisville/Jefferson County’s current employment base now sits roughly 54,900 jobs, or about 9% above the 1st quarter 2008 level, prior to the Great Recession. The relative resilience of the economy points to some insulation provided by recession-resistant economic anchors in the market, namely the University of Louisville.
Average occupancy: 96.4%
Rent growth:6%
SUPPLY
New apartment completions in Louisville/Jefferson County were moderate recently, as 1.958 units delivered 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 construction with 1,516 of those units scheduled to complete in the next four quarters. Scheduled deliveries in the coming year are expected to be concentrated in Northwest Louisville and Southwest Louisville.
RENT
Over the past five years, annual change in effective asking rents in Louisville/Jefferson County ranged from a decline of 0.1% to an increase of 11.9%. In 3rd quarter 2022, effective asking rents for new leases were up 11. 1% year-over-year. That annual rent performance was well above the market’s five-year average of 4.0%. Product classes in Louisville/Jefferson County, Class A led for rent performance over the past five years.
1 Yum! Brands 2 UPS Worldport 3 Ford Motor Company 4 GE Appliances 5 Humana Inc 6 Norton Healthcare 7 Anthem 8 LG&E and KU Energy 9 Brown-Forman 10 Papa John's International 11 Amazon Fulfillment Center MARKET
2 4 6 5 1 3 7 8 9 10 11
DRIVERS
OCCUPANCY
• Occupancy in the past year, occupancy lost 0.6 points, with the 3rd quarter 2022 rate landing at 95.8%.
• Looking 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 Louisville. 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/Jefferson County is expected to register around 95.5%.
ATTRACTIONS
LOUISVILLE SLUGGER MUSEUM
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.
Admire the World’s Biggest Bat - stretching 120 feet into the sky. Hold bats actually used by baseball superstars like Mickey Mantle, Johnny Bench, Cal Ripken Jr. And Derek Jeter. Be sure to swing by!
EVAN WILLIAMS BOURBON
Located on Louisville’s historic “Whiskey Row”, the Evan Williams Bourbon Experience features an artisanal distillery, tours, educational tastings, and more!
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.
FOUR 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!
THE BOURBON BUSINESS
The Banks is a gathering place for people all across the region. It provides a lively atmosphere full of attractions that promote public enjoyment and appreciation for city’s riverfront. Spanning the full width of the Central Business District, The Banks brings the waterfront to downtown’s front door. Thriving off of the energy generated by the adjacent professional sports venues, Paul Brown Stadium to the west and Great American Ballpark to the east, The Banks provides life and energy as a premier live, work, and play district.
KENTUCKY DERBY
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.
INTERESTING STATISTICS
165,000 FACILITY CAPACITY
147 ACRES OCCUPIED BY RACETRACK
$373M DIRECT ECONOMIC IMPACT
146 YEARS RUNNING
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