GLENDALE DRIVE OFFERING MEMORANDUM
CONTENTS
LEAD AGENTS
Alden Simms
Associate Cincinnati Office
D. 513.878.7759
alden.simms@marcusmillichap.com
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.
SECTIONS
01 - THE INVESTMENT 02 - local competitors 03 - FINANCIALS 04 - LOCAL MARKET 06 12 22 30
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 PETROSNIO
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
INVESTMENT HIGHLIGHTS
Marcus and Millichap is pleased to present The Glendale Drive Apartments. A 26-unit apartment complex located in East Cincinnati. This asset is in the Batavia submarket and is a few minutes away from a major retail corridor and the Eastgate Mall.
RENOVATION VALUE ADD OPPORTUNITY
The competitive set in the local market boasts rents $150+ above the average effective rent at Glendale Drive Apartments. This gives an incoming investor an opportunity to renovate all 26 units and to push rents and capture more value
LOCATED MINUTES FROM ONE OF CINCINNATI’S PREMIER RETAIL
Within 8 minutes (3 miles) of the Eastgate mall, a mixed-use asset featuring restaurants, a movie theatre, and retail destinations such as H&M, Victoria’s Secret, Kohl’s, and JCPenney. Within 6 minutes (2.8) miles to Jungle Jim’s.
LEADING SUBMARKET FUNDAMENTALS
Batavia boasts an average HHI of $67,217 in 2022 with the median HHI being $53,821. As of March 2023, the median sale price of homes in Batavia was up 67.5% year-over-year, selling for a median price of $340,00. These strong market fundamentals are reflected in rental growth and occupancy as well. The average rent in Batavia has increased 11.1% over the last year and 6% over the 5-year average while maintaining an average occupancy of 97.6%
GLENDALE DRIVE
DEAL SUMMARY
13,000 26 500
PROPERTY SUMMARY
RENTABLE SQUARE FEET TOTAL UNITS AVG SF 1 Bedroom 26 Occupancy 97%
*
GLENDALE DRIVE
Property Address: 4434-4440 Glendale Drive
City, State, Zip: Batavia, OH, 45103
Submarket: Outer Clermont County
County: Clermont
Year Built/Reno: 1973
Number Of Units: 26
Avg Unit Size: 500
Rentable Sqft: 13,000
Number of Parcels: 3
Lot Size (Acres): 2.11
Density: 12.32
# of Buildings: 5
# of Stories: 1
Current Occupancy: 97 %
Roof Type/Age: Pitched
Exterior of Building: Brick
Electric: Tenant
Gas: Tenant
Water/Sewer: Owner
Trash: Owner
PROPERTY
DETAILS
RENT COMPETITORS
02
location competitors
LONGACR E S APTS
T
1 BED - $975
OHIOPIKE
ERRACE
1 BED - $925
DANIEL C OURT
1 BED - $1,050
LIBERTY T R ACE 1 BED - $875 RENEW 39 0 2 1 BED - $1,000 M APLEGRO V E APT 1 BED - $775 844YOUN G S LANE 1 BED - $1,100
LOCAL COMPETITORS
ONE BEDROOM
One Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF 844-848 Youngs Lane 1969 18 775 $1,100 $1.42 Daniel Court 1985 114 600 $1,050 $1.75 ReNew 3902 1949 144 740 $1,000 $1.35 Long Acres Apartments 1978 144 750 $975 $1.30 475 Old Boston Road 1954 4 850 $950 $1.12 Subject Pro Forma 1973 26 500 $950 $1.90 Ohio Pike Terrace 1966 24 675 $925 $1.37 Average 1970 59 683 $908 $1.33 Liberty Trace Apartments 1972 30 650 $875 $1.35 Maple Grove Apartments 1960 33 550 $775 $1.41 Subject Average Effective 1973 26 500 $709 $1.42
RENT COMPETITORS
DANIEL COURT
Resident pays
UNITS 114 YEAR BUILT 1985 OCCUPANCY 97.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 97 600 $1,050 $1.75 Two Bedroom 17 900 $1,250 $1.39 Apartment Interior Amenities Patio Vaulted Ceilings Dishwasher
Dryer Hookup
Counters
Area Amenities
Service
Responsibility
Water
Washer
Granite
Common
Package
Utilities
Property pays
Property pays Sewer
Property pays Trash
Electric 640 Daniel Court
RENT COMPETITORS LONG ACRES
Units 144 Year Built 1978 Occupancy 99.0% UNIT MIX UNITS SQFT RENT RENT/SF Studio 7 450 $740 $1.64 One Bedroom 55 750 $975 $1.30 Two Bedroom 82 850 $1,100 $1.29 Apartment Interior Amenities Vinyl Floors Walk in Closet Internet Wood Cabinets Laminate Counters Common Area Amenities Clubhouse 4500 Long Acres Drive Pool Sundeck Pool Laundry Facilities Utilities Responsibility Property pays heat Property pays trash Resident pays water
RENT COMPETITORS
UNITS 18 YEAR BUILT 1969 OCCUPANCY 96.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 9 775 $1,100 $1.42 Two Bedroom 9 950 $1,400 $1.47 Apartment Interior Amenities Laminate Counters Tile flooring Wood cabinets Stainless Steel appliances Common Area Amenities Laundry Facilities Utilities Responsibility Property pays Trash Property pays Water Property pays Heat Tenant pays electric 844-848- Youngs Lane
844 YOUNGS LANE
RENT
COMPETITORS
renew 3902
Property pays sewer
Property pays trash
Units 144 Year Built 1949 Occupancy 97.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 60 740 $1,000 $1.35 Two Bedroom 84 850 $1,195 $1.41 Apartment Interior Amenities LPV flooring Black appliances Granite Counters Common Area Amenities
Laundry Facilities
Playground Utilities Responsibility Resident pays electric Property pays water
3902 Old Savannah Drive
GLENDALE DRIVE FINANCIALS
03
GLENDALE DRIVE - 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 One Bedroom 26 Units 500 SF 13,000 SF $709.62 $1.42 $18,450 $775.00 $1.55 SF $20,150 $950.00 $1.90 SF $24,700 Totals / Wtd. Averages 26 Units 500 SF 13,000 SF $709.62 $1.42 SF $18,450 $775.00 $1.55 SF $20,150 $950.00 $1.90 SF $24,700
UNIT
DISTRIBUTION UNIT RENTS
UNIT MIX BREAKDOWN
GLENDALE DRIVE - FINANCIALS
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 One Bedroom 1BR/1BA 26 Units 500 SF 13,000 SF $709.62 $1.42 SF $18,450 $775.00 $1.55 SF $20,150 $950.00 $1.90 SF $24,700 Totals / Wtd. Averages 26 Units 500 SF 13,000 SF $709.62 $1.42 SF $18,450 $775.00 $1.55 SF $20,150 $950.00 $1.90 SF $24,700
GLENDALE DRIVEFINANCIALS EXPENSE INCOME INCOME & EXPENSES CURRENT YEAR 1 GROSS POTENTIAL RENT % of GPR Per % of GPR Per All Units at Market Rent $241,800 RR 9,300 $296,400 11,400 Gain (Loss) to Lease ($20,400) 8.44% (785) ($5,928) 2.00% (228) GROSS SCHEDULED RENT $221,400 RR 8,515 $290,472 11,172 GROSS POTENTIAL INCOME $221,400 8,515 $290,472 11,172 Physical Vacancy $0 0.00% 0 ($14,524) 5.00% (559) EFFECTIVE GROSS INCOME $221,400 91.56% 8,515 $275,948 93.00% 10,613 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI Per Unit 2022 Taxes Paid $20,527 Auditor 9.27% 790 $20,527 7.44% 790 Total Real Estate Taxes $20,527 9.27% 790 $20,527 7.44% 790 Insurance $8,500 T12 3.84% 327 $10,400 3.77% 400 Utilities Utilities $11,334 T12 5.12% 436 $11,561 4.19% 445 Total Utilities $11,334 5.12% 436 $11,561 4.19% 445 Total Non-Controllable $40,361 18.23% 1,552 $42,488 15.40% 1,634 CONTROLLABLE Contract Services Snow Removal $0 0.00% 0 $910 0.33% 35 Landscaping/Grounds $0 0.00% 0 $2,600 0.94% 100 Pest Control $0 0.00% 0 $910 0.33% 35 Total Contract Services $0 0.00% 0 $4,420 1.60% 170 Repairs & Maintenance $10,231 T12 4.62% 394 $15,600 5.65% 600 Marketing & Promotion $0 0.00% 0 $1,300 0.47% 50 On-Site Payroll $0 0.00% 0 $23,400 8.48% 900 Payroll Taxes & Benefits $0 0.00% 0 $2,600 0.94% 100 General & Administrative $755 T12 0.34% 29 $2,600 0.94% 100 Management Fee $10,800 T12 4.88% 415 $16,557 6.00% 637 Replacement & Reserves $6,630 Note 1 2.99% 255 $6,829 2.47% 263 Total Controllable $28,416 12.83% 1,093 $73,306 26.57% 2,819 TOTAL EXPENSES $68,777 31.06% 2,645 $115,794 41.96% 4,454 NET OPERATING INCOME $152,623 68.94% 5,870 $160,155 58.04% 6,160
INCOME EXPENSE
UNDERWRITING NOTES
# NOTE
1 Replacement & Reserves: added based on market norm of $255 per unit per year
2 Added based on market norms
YEAR 2 YEAR 3 % of GPR Per Unit % of GPR Per Unit $305,292 11,742 $314,451 12,094 ($6,106) 2.00% (235) ($6,289) 2.00% (242) $299,186 11,507 $308,162 11,852 $299,186 11,507 $308,162 11,852 ($14,959) 5.00% (575) ($15,408) 5.00% (593) $284,227 93.00% 10,932 $292,754 93.00% 11,260 % of EGI Per Unit % of EGI Per Unit $20,527 7.22% 790 $20,527 7.22% 790 $20,527 7.22% 790 $20,527 7.22% 790 $10,712 3.77% 412 $11,033 3.88% 424 $11,792 4.15% 454 $12,028 4.23% 463 $11,792 4.15% 454 $12,028 4.23% 463 $43,031 15.14% 1,655 $43,588 15.34% 1,676 $937 0.33% 36 $965 0.34% 37 $2,678 0.94% 103 $2,758 0.97% 106 $937 0.33% 36 $965 0.34% 37 $4,553 1.60% 175 $4,689 1.65% 180 $16,068 5.65% 618 $16,550 5.82% 637 $1,339 0.47% 52 $1,379 0.49% 53 $24,102 8.48% 927 $24,825 8.73% 955 $2,678 0.94% 103 $2,758 0.97% 106 $2,678 0.94% 103 $2,758 0.97% 106 $17,054 6.00% 656 $17,565 6.00% 656 $7,034 2.47% 271 $7,245 2.55% 279 $75,505 26.57% 2,904 $77,770 27.18% 2,971 $118,536 41.70% 4,559 $121,359 42.70% 4,668 $165,691 58.30% 6,373 $171,395 60.30% 6,592
INCOME EXPENSE GLENDALE DRIVE
FINANCIALS
CURRENT YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YE JUL-2024 YE JUL-2025 YE JUL-2026 YE JUL-2027 YE JUL-2028 YE JUL-2029 YE JUL-2030 YE JUL-2031 YE JUL-2032 YE JUL-2033 GROSS POTENTIAL RENT All Units at Market Rent $241,800 $296,400 $305,292 $314,451 $323,884 $333,601 $343,609 $353,917 $364,535 $375,471 $386,735 Gain (Loss) to Lease ($20,400) ($5,928) ($6,106) ($6,289) ($6,478) ($6,672) ($6,872) ($7,078) ($7,291) ($7,509) ($7,735) GROSS SCHEDULED RENT $221,400 $290,472 $299,186 $308,162 $317,407 $326,929 $336,737 $346,839 $357,244 $367,961 $379,000 GROSS POTENTIAL INCOME $221,400 $290,472 $299,186 $308,162 $317,407 $326,929 $336,737 $346,839 $357,244 $367,961 $379,000 Physical Vacancy $0 ($14,524) ($14,959) ($15,408) ($15,870) ($16,346) ($16,837) ($17,342) ($17,862) ($18,398) ($18,950) EFFECTIVE GROSS INCOME $221,400 $275,948 $284,227 $292,754 $301,536 $310,582 $319,900 $329,497 $339,382 $349,563 $360,050 Real Estate Taxes $20,527 $20,527 $20,527 $20,527 $21,143 $21,777 $22,431 $23,104 $23,797 $24,511 $25,246 Insurance $8,500 $10,400 $10,712 $11,033 $11,364 $11,705 $12,056 $12,418 $12,791 $13,174 $13,570 Utilities $11,334 $11,561 $11,792 $12,028 $12,389 $12,760 $13,143 $13,537 $13,943 $14,362 $14,793 Contract Services $0 $4,420 $4,553 $4,689 $4,830 $4,975 $5,124 $5,278 $5,436 $5,599 $5,767 Repairs & Maintenance $10,231 $15,600 $16,068 $16,550 $17,047 $17,558 $18,085 $18,627 $19,186 $19,762 $20,354 Marketing & Promotion $0 $1,300 $1,339 $1,379 $1,421 $1,463 $1,507 $1,552 $1,599 $1,647 $1,696 On-Site Payroll $0 $23,400 $24,102 $24,825 $25,570 $26,337 $27,127 $27,941 $28,779 $29,642 $30,532 Payroll Taxes & Benefits $0 $2,600 $2,678 $2,758 $2,841 $2,926 $3,014 $3,105 $3,198 $3,294 $3,392 General & Administrative $755 $2,600 $2,678 $2,758 $2,841 $2,926 $3,014 $3,105 $3,198 $3,294 $3,392 Management Fee $10,800 $16,557 $17,054 $17,565 $18,092 $18,635 $19,194 $19,770 $20,363 $20,974 $21,603 Replacement & Reserves $6,630 $6,829 $7,034 $7,245 $7,462 $7,686 $7,917 $8,154 $8,399 $8,651 $8,910 TOTAL EXPENSES $68,777 $115,794 $118,536 $121,359 $124,999 $128,749 $132,612 $136,590 $140,688 $144,909 $149,256 NET OPERATING INCOME $152,623 $160,155 $165,691 $171,395 $176,537 $181,833 $187,288 $192,907 $198,694 $204,655 $210,794 INCOME EXPENSE
CASH FLOW
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 Income Gross Potential Rent 22.58% 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 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Management Fee** 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 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 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 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 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable 4434 Glendale Dr 414-802-077 1973 0.55 $257,900 $90,270 72.440093 $6,539.19 4436 Glendale Dr 404-802-076 1973 0.78 $261,600 $91,560 72.440093 $6,632.62 4440 Glendale Dr 414-802-075 1973 0.78 $290,100 $101,540 72.440093 $7,355.56 Total 2.11 $809,600 $283,370 $20,527.37
*Calculated
LOCAL MARKET
04
ECONOMY
1| In the year-ending 1st quarter 2023, the metro’s inflation-adjusted economic output expanded 0.5%. At the same time, the metro recorded a net gain of 26,000 jobs, expanding the employment base 2.3%. 2| Cincinnati’s unemployment rate in February 2023 declined 0.2 points year-over-year to 3.6%, below the national average of 3.9%. 3| During the past year, job gains in Cincinnati were most pronounced in the Leisure/Hospitality Services sector followed by Education/Health Services, Trade/Transportation/Utilities and Manufacturing. 4| Despite job losses stemming from the pandemic, Cincinnati’s current employment base now sits roughly 25,500 jobs or about 2% above the pre-pandemic level in February 2020.
RENT
1| Over the past five years, the annual change in effective asking rents in Cincinnati ranged from 1.6% to 11.9%. In 1st quarter 2023, same-store effective asking rents for new leases were up 8.2% year- over-year. 2| That annual rent performance was above the market’s five-year average of 5.3%. 3| Product classes in Cincinnati, Class B led for rent performance over the past five years. In 1st quarter 2023, annual effective rent change registered at 6.7% in Class A units, 8.8% in Class B units and 9.3% in Class C units. 4| Among submarkets, the strongest annual rent change performances over the past year were in North Cincinnati and Butler County. 5| The weakest performances were in North Central Cincinnati and Central Cincinnati. 6| As of 1st quarter 2023, effective asking rental rates in Cincinnati averaged $1,315 per month, or $1.417 per square foot.
CAPITAL MARKETS
1| Transaction dollar volumes in Cincinnati totaled roughly $673.9 million in the year-ending 1st quarter 2023, up about 9% year-over-year. 2| Transactions in the year-ending 1st quarter 2023 yielded an average cap rate of 5.36%, down 37 basis points year-over year. By comparison, cap rates averaged 5.15% in the Midwest region and 4.59% nationally. 3| Meanwhile, the average price per unit in Cincinnati came in at roughly $173,800, up 66.3% annually. Cincinnati’s average price per unit landed above the norm for the Midwest region ($163,000) but below the U.S. average ($234,000).
CINCINNATI JANUARY FEBRUARY MARCH APRIL MAY JUNE QUARTER 1 0 250 500 1,000 1,500 2,000
22’ Q1 22’ Q2 22’ Q3 22’ Q4 23’ Q1 23’ Q2 23’ Q3 23’ Q4 24’ Q1 COMPLETED UNDER CONSTRUCTION
UNITS COMPLETIONS BY QUARTER Historic & Projected
CINCINNATI RENT GROWTH BY ASSET CLASS Year-over-Year
LIFESTYLE
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER RENT GROWTH SECTOR QUARTERLY YEARLY North Cincinnati 2.1% 11.1% Butler County 0.2% 9.9% Southeast Cincinnati 1.1% 9.8% West Cincinnati 2.8% 9.3% Northeast / Warren County -0.3% 8.5% Boone County / Erlanger 1.5% 8.3% Campbell / Kenton Counties 0.3% 6.3% Central Cincinnati 0.7% 6.1% North Central Cincinnati 0.3% 3.4% EMPLOYMENT Unemployment Rate 3.6% Jobs Added YTD 26,000 Q1 2023 MARKET SNAPSHOT Pre1970s 1970s 1980s 1990s 2000+ Occupancy 94.5% 96.0% 96.4% 96.0% 95.7% Y-O-Y Rent Growth 11.0% 11.0% 8.7% 6.2% 6.4% Average Rent Per Unit $1,063 $1,100 $1,243 $1,314 $1,670 15% 10% 5% 0%
MAR 23’ JUL 22’ AUG 22’ SEP 22’ OCT 22’ NOV 22’ DEC 22’ JAN 23’ FEB 23’ ONE-YEAR FORECAST 1Q 2023 Annual Supply 4,237 units Annual Demand 2,523 units Occupancy 94.8% Annual Occupancy Change -0.9 Annual Rent Change 2.7% Annual Revenue Change 1.8% Annual Job Change 3,400
RENTERS BY NECESSITY
CINCINNATI
DEMOGRAPHICS
1| The total number of residents in Cincinnati increased 3.5% from 2016 to 2021, a change rate which was in line with the U.S. average of 3.5%. The fastest growing population niche in Cincinnati was the 55 years and over age segment which grew 11.4% from 2016 to 2021. 2| The metro’s 20- to 34-year-old cohort – a crucial component of the apartment market – grew 3.1% from 2016 to 2021, compared to 1.4% growth nationally. Young adults made up 19.8% of Cincinnati’s total population in 2021, smaller than the national norm of 20.3%. 3| Cincinnati’s median household income of about $70,700 was in line with the national average of roughly $69,000.
SUPPLY
1| New apartment completions in Cincinnati were elevated by historical standards recently, as 2,596 units delivered in the year-ending 1st quarter 2023. 2| Annual new supply averaged 1,585 units, and annual inventory growth averaged 0.9% over the past five years. 3| During that period, new supply was concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/ Warren County, which received 63% of the market’s total completions. At the end of 1st quarter 2023, there were 6,625 units under construction with 4,237 of those units scheduled to complete in the next four quarters. 4| Scheduled deliveries in the coming year are expected to be concentrated in Butler County and North Central Cincinnati.
2,596 units completed in past 12 months
6,625 units currently in progress
QUARTER 1
JANUARY FEBRUARY MARCH APRIL MAY JUNE
DEVELOPMENT PIPELINE
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER UNITS UNDER CONSTRUCTION SECTOR UNITS Central Cincinnati 1,516 Butler County 1,177 Southeast Cincinnati 775 North Central Cincinnati 748 Northeast Cincinnati/Warren County 684 TOTAL FUTURE INVENTORY GROWTH SUBMARKET CHANGE Central Cincinnati 10.6% Butler County 5.9% Boone County/Erlanger 5.3% Southeast Cincinnati 4.6% Northeast Cincinnati/Warren County 4.1% HIGHEST OVERALL PERFORMING SUBMARKET SUBMARKETS RENT OCCUPANCY YOY Dearborn County $1,204 95.0% 23.6% Dent/Harrison $1,086 97.9% 18.8% Florence – East/Erlanger $1,172 96.4% 16.3% Hamilton $1,060 97.2% 13.2% Loveland $1,630 96.0% 13.0%
OVERALL PERFORMING SUBMARKETS SUBMARKETS RENT OCCUPANCY YOY Cincinnati – Kennedy Heights/Madisonville $1,432 96.6% 5.4% Mt Healthy $1,060 95.8% 5.4% Cincinnati – Roselawn $934 93.7% 5.2% Oxford $1,630 - 1.4% Cincinnati - Avondale $1,404 97.2% -1.1%
LOWEST
ATTRACTIONS
HEART OF DOWNTOWN
Right on the water and brimming with activity- The Banks is where you will find everything from sports events to a lively nightlife scene. Located along the Ohio River, The Banks provides spectacular riverfront views and lines the water with a family friendly park. Along with great biking, walking, and other recreational amenities during the daytime, The Banks comes alive at night. With live music and entertainment, a thriving bar scene nestled between two sports stadiums, The Banks is the place to be.
A major attraction at The Banks, the Andrew J Brady ICON Music Center was built for the audience experience, offering an intimate yet spacious setting. Offering both indoor and outdoor venues, the state-of-the-art facility hosts a wide variety of musical acts, spanning all genres. Visitors can enjoy a live concert while taking in the scenic riverfront view.
Ranked by USA Today readers as a Top 5 Riverwalk in the nation, Smale Riverfront Park offers walking trails, water features, swings, and other amenities to enjoy, while taking in the beautiful views of the Ohio River and the historic John A. Roebling Suspension Bridge. If you have kids in tow, make sure to visit Carol Ann’s Carousel, featuring 44 characters and illustrations incorporating Cincinnati landmarks. Enclosed in a glass building, the carousel is open year-round.
TQL STADIUM
The FCC-TQL partnership brings together two Cincinnati-grown, leading businesses that share a “no limits” philosophy as well as a deep connection and commitment to our local community. There are a lot of synergies that make this alliance between TQL and FCC a perfect match and are reflected throughout the stadium from — the fin lighting to the TQL Beer District. The stadium features first-in-the-world lighting technology powered by 2.7 miles of LED lights.
ATTRACTIONS CINCINNATI ZOO
The Cincinnati Zoo & Botanical Garden is the second oldest zoo in the United States, founded in 1873 and officially opening in 1875, after the Roger Williams Park Zoo. It is located in the Avondale neighborhood of Cincinnati, Ohio. It originally began with 64.5 acres in the middle of the city, but has spread into the neighboring blocks and several reserves in Cincinnati’s outer suburbs. It was appointed as a National Historic Landmark in 1987.
From 11am – 1am daily, the 85-acre DORA district at The Banks allows guests to take their beverage purchased from one of the 18 Banks establishments and explore our public plazas and green spaces. It simply needs to be in the Official DORA Cup.
At risk of missing the first pitch? Late for the opening act? Take your beverage purchased in a DORA cup from a Banks establishment and go! Waiting for a table, or wish to picnic outside in The Banks plazas or greenspaces? Grab a DORA beverage from a Banks establishment and explore!
DORA
HARD ROCK CASINO
The game is always on at Hard Rock Casinos, where stars are made every night. Come try your hand at the tables, with classic games including blackjack, baccarat and poker, or tap into thousands of the hottest slots on the planet. With the world’s greatest rock memorabilia collection to enhance the thrill, plus the accompaniment of live, world-class entertainment, the atmosphere is like no other.
CINCINNATI ART MUSEUM
Located in scenic Eden Park, the Cincinnati Art Museum features a diverse, encyclopedic art collection of more than 67,000 works spanning 6,000 years. In addition to displaying its own broad collection, the museum also hosts several national and international traveling exhibitions each year. Visitors can enjoy the exhibitions or participate in the museum’s wide range of art-related programs, activities and special events. General admission is always free
for all. Museum members receive additional benefits. The museum is supported by the generosity of individuals and businesses that give annually to ArtsWave. The Ohio Arts Council helped fund the museum with state tax dollars to encourage economic growth, educational excellence and cultural enrichment for all Ohioans. The museum gratefully acknowledges operating support from the City of Cincinnati, as well as our museum members.
RETAIL & SHOPPING
In addition to the restaurant and nightlight scene, the area has no shortage of retail options. Downtown offers both boutiques and department stores. Over-the-Rhine (OTR) is a historic, walkable district of downtown Cincinnati with many independent shops. Cincinnati’s Over-the-Rhine neighborhood was once a place where residents would not recommend to visitors, but that has changed. The restaurant and nightlife scene is now thriving, and the shopping scene is beginning to catch up. Most of the shops are in the southwest quarter of Over-the-Rhine, on either Vine or Main St. You won’t find chain stores in this walkable shopping district. MiCA 12/v and Urban Eden are a popular gift shops that sell local arts and crafts. Elm & Iron sells vintage and up-cycled items for the home. The Little Mahatma sells exotic jewelry and folk art from around the world. You’ll find several clothing boutiques, including Mannequin, a non-profit upscale and vintage boutique that benefits local charities. Park + Vine is a popular general store for environmentally-conscious shoppers; they sell a variety of merchandise including green cleaning and personal products, vegan foods, garden products and more.
FINDLAY MARKET
Findlay Market is Ohio’s oldest continuously operated public market and is located in the historic Over-the-Rhine neighborhood. The market is a wonderful place for locals to buy their groceries as well as a must-see historic spot for visitors to Cincinnati. Findlay Market is open year-round, Tuesday through Sunday, with a seasonal farmers market. Nearly 40 full-time businesses operate year-round, plus over 100 more vendors operate on weekends or part-time. Many vendors sell raw food while others specialize in prepared foods. Some of the merchants are new startups, while others have been in business for generations. You’ll find everything from fresh meat and produce to imported fine teas to Belgian waffles. There are restaurants as well as a beer garden, so plan to stay for lunch. Findlay Market has a fascinating history. Why not take a tour to learn more? There are several different tour options, including a culinary tour with tasty samples.
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