Mt. Carmel Manor OM

Page 1

MT CARMEL MANOR 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

AUSTIN SUM

SENIOR INVESTMENT ASSOCIATE

BRIAN JOHNSTON

INVESTMENT ASSOCIATE

AUSTIN Hall

INVESTMENT ASSOCIATE

ALDEN SIMMS

INVESTMENT ASSOCIATE

BROKER SUPPORT

SAM PETROSInO

VALUATION & RESEARCH

CORPORATE SUPPORT

LIZ POPP

MIDWEST OPERATIONS MANAGER

JOSH CARUANA

VICE PRESIDENT

REGIONAL MANAGER

INDIANAPOLIS | CINCINNATI | LOUISVILLE | ST LOUIS | KANSAS CITY

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

BRETT MARTIN

INTERNAL ACCOUNTANT

BRITTANY CAMPBELL-KOCH

DIRECTOR OF OPERATIONS

ALEX PAPA

MARKETING COORDINATOR

MT CARMEL MANOR

01

INVESTMENT HIGHLIGHTS

Marcus and Millichap is pleased to present Mt. Carmel Manor. A 17-unit apartment complex located in East Cincinnati. This asset is in the Mt. Carmel submarket and is a few minutes away from a major retail corridor, the Eastgate Mall.

RENOVATION VALUE ADD OPPORTUNITY:

The competitive set in the local market boasts rents 300+ above the average effective rent at Mt. Carmel Manor. This gives an incoming investor an opportunity to renovate all 17 units and push rents to capture more value.

LOCATED MINUTES FROM ONE OF CINCINNATI’S PREMIER RETAIL DEMAND DRIVERS: 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.

OTHER INCOME BUILDING CHARACTERISTICS:

Mt. Carmel Manor has a billboard in the back of the parking lot that produces an additional $14,000 of income every year. Starting in 2026 the income will increase to $15,000 per year, which extends through 2030.

MT CARMEL MANOR

MT CARMEL MANOR SUMMARY

12,000 17 706

RENTABLE SQUARE FEET TOTAL UNITS AVG SF 1 Bedrooms 5 2 Bedrooms 12 Occupancy 94%
*

MT CARMEL MANOR

Property Address: 526 Old State Route 74

City, State, Zip: Cincinnati, OH, 45244

Submarket: Mt. Carmel County: Clermont

Year Built/Reno: 1967

Number Of Units: 17

Avg Unit Size: 620

Rentable Sqft: 1,125 Number of Parcels: 1 Lot Size (Acres): 0.951

# of Buildings: 1

# of Stories: 2

Current Occupancy: 94%

Parking Type: Lot

Parking Surface: Black Top

Parking Ratio: 1.59

PROPERTY
DETAILS

RENT COMPETITORS

02

LOCAL COMPETITORS

ONE BEDROOM
One Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Daniel Court Apartments 1985 114 600 $1,050 $1.75 Long Acres Apartments 1978 144 750 $975 $1.30 Hunter Ridge Apartments 1978 83 600 $930 $1.55 Timbercreek 1978 24 625 $895 $1.43 Magnolia Pointe 1966 170 600 $850 $1.42 Timbercreek West 1966 4 683 $825 $1.21 Subject Pro Forma 1967 17 600 $800 $1.33 Subject Average Effective 1967 17 600 $560 $0.93

Two Bedroom

LOCAL COMPETITORS

Two Bedroom Property Year Built # Units Avg SF Avg Rent Avg Rent/SF Daniel Court Apartments 1985 114 900 $1,250 $1.39 Long Acres Apartments 1978 144 850 $1,100 $1.29 Hunter Ridge Apartments 1978 83 800 $1,100 $1.38 Magnolia Pointe 1966 170 750 $1,000 $1.33 Timbercreek 1978 24 700 $975 $1.39 Subject Pro Forma 1967 17 750 $900 $1.20 Timbercreek West 1966 4 891 $896 $1.01 Subject Average Effective 1967 17 750 $644 $0.86

RENT COMPETITORS magnolia pointe

UNITS 170 YEAR BUILT 1966 OCCUPANCY 98.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 46 600 $850 $1.42 Two Bedroom 113 750 $1,000 $1.33
Interior Amenities Tile Floors Granite Counters
Appliances Gray Cabinets
Area Amenities
Pool
Facilities
Responsibility
Pays Electricity
Pays Gas
Pays Sewer
484 Old State Route 74
Apartment
Black
Common
Playground
Laundry
Utilities
Resident
Resident
Resident
Resident Pays Trash

COMPETITORS

hunter ridge

Units 83 Year Built 1978 Occupancy 99.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 33 600 $930 $1.55 Two Bedroom 46 800 $1,100 $1.38 Apartment Interior Amenities Balcony/Patio LVP Floors Black Cabinets Granite Counters Common Area Amenities Laundry Facility 4587-4593 Summerside Rd Utilities Responsibility Resident Pays Electric Resident Pays Sewer Resident Pays Trash Resident Pays Water
RENT

COMPETITORS

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 Washer Dryer Hookup Granite Counters Hardwood Floors Common Area Amenities Package Service Utilities Responsibility Property Pays Water Property Pays Sewer Property Pays Trash Resident Pays Electric 640 daniel Ct.
RENT
daniel court apartments

RENT COMPETITORS long acres apartments

Laminate

Utilities

Clubhouse Pool

Sundeck Pool

Resident

Units 144 Year Built 1978 Occupancy 99.0% UNIT MIX UNITS SQFT RENT RENT/SF One Bedroom 55 750 $975 $1.30 Two Bedroom 82 850 $1,100 $1.29
Interior Amenities
Floors
in Closet
Apartment
Vinyl
Walk
Internet Wood Cabinets
Counters
Common Area Amenities
Responsibility Property Pays Heat Property Pays Trash
Laundry Facilities Pays Water

FINANCIALS

03

MT CARMEL MANOR- 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 5 Units 600 SF 3,000 SF $559.60 $0.93 $2,798 $590.00 $0.98 SF $2,950 $800.00 $1.33 SF $4,000 Two Bedroom 12 Units 750 SF 9,000 SF $643.75 $0.86 $7,725 $683.33 $0.91 SF $8,200 $900.00 $1.20 SF $10,800 Totals / Wtd. Averages 17 Units 706 SF 12,000 SF $619.00 $0.88 SF $10,523 $655.88 $0.93 SF $11,150 $870.59 $1.23 SF $14,800
UNIT DISTRIBUTION
UNIT RENTS

CARMEL MANOR- FINANCIALS

UNIT MIX BREAKDOWN

MT
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 3 Units 600 SF 1,800 SF $516.00 $0.86 SF $1,548 $550.00 $0.92 SF $1,650 $800.00 $1.33 SF $2,400 1BR/1BA - G/E Included 2 Units 600 SF 1,200 SF $625.00 $1.04 SF $1,250 $650.00 $1.08 SF $1,300 $800.00 $1.33 SF $1,600 Totals / Wtd. Averages 5 Units 600 SF 3,000 SF $559.60 $0.93 SF $2,798 $590.00 $0.98 SF $2,950 $800.00 $1.33 SF $4,000 Two Bedroom 2BR/1BA 7 Units 750 SF 5,250 SF $585.71 $0.78 SF $4,100 $600.00 $0.80 SF $4,200 $900.00 $1.20 SF $6,300 2BR/1BA - G/E Included 5 Units 750 SF 3,750 SF $725.00 $0.97 SF $3,625 $800.00 $1.07 SF $4,000 $900.00 $1.20 SF $4,500 Totals / Wtd. Averages 12 Units 750 SF 9,000 SF $643.75 $0.86 SF $7,725 $683.33 $0.91 SF $8,200 $900.00 $1.20 SF $10,800

CURRENT RENT ROLL: AS OF JULY 25, 2023 INCOME AND EXPENSES: JANUARY 2023 - JULY 2023

MT CARMEL MANORFINANCIALS EXPENSE INCOME INCOME
& EXPENSES
YEAR 1 GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $154,200 RR 9,071 $177,600 10,447 Gain (Loss) to Lease ($27,000) 17.51% (1,588) ($17,760) 10.00% (1,045) GROSS SCHEDULED RENT $127,200 RR 7,482 $159,840 9,402 Other Income Billboard Rental Income $14,000 T6 11.01% 824 $14,000 8.76% 824 Laundry Income $1,374 T6 1.08% 81 $1,415 0.89% 83 Total Other Income $15,374 12.09% 904 $15,415 9.64% 907 GROSS POTENTIAL INCOME $142,574 8,387 $175,255 10,309 Physical Vacancy ($9,600) RR 7.55% (565) ($7,992) 5.00% (470) Bad Debt $0 0.00% 0 ($3,197) 2.00% (188) EFFECTIVE GROSS INCOME $132,974 74.94% 7,822 $164,066 83.00% 9,651 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI Per Unit 2022 Taxes Paid $14,500 Auditor 10.90% 853 $14,500 8.84% 853 Total Real Estate Taxes $14,500 10.90% 853 $14,500 8.84% 853 Insurance $7,284 T6 5.48% 428 $6,800 4.14% 400 Utilities Gas & Electric $5,988 T6 4.50% 352 $6,108 3.72% 359 Water & Sewage $4,480 T6 3.37% 264 $4,570 2.79% 269 Trash Removal $2,476 T6 1.86% 146 $2,526 1.54% 149 Total Utilities $12,944 9.73% 761 $13,203 8.05% 777 Total Non-Controllable $34,728 26.12% 2,043 $34,503 21.03% 2,030 CONTROLLABLE Contract Services Landscaping/Grounds/Snow $1,750 Note 2 1.32% 103 $1,751 1.07% 103 Pest Control $0 0.00% 0 $595 0.36% 35 Total Contract Services $1,750 1.32% 103 $2,346 1.43% 138 Repairs & Maintenance $7,340 T6 5.52% 432 $10,200 6.22% 600 Marketing & Promotion $0 0.00% 0 $850 0.52% 50 Labor $0 0.00% 0 $12,750 7.77% 750 General & Administrative $3,468 T6 2.61% 204 $2,550 1.55% 150 Management Fee $9,308 Note 2 7.00% 548 $11,485 7.00% 676 Replacement & Reserves $4,335 Note 1 3.26% 255 $4,422 2.70% 260 Total Controllable $26,201 19.70% 1,541 $44,602 27.19% 2,624 TOTAL EXPENSES $60,930 45.82% 3,584 $79,106 48.22% 4,653 NET OPERATING INCOME $72,044 54.18% 4,238 $84,961 51.78% 4,998 INCOME EXPENSE

# NOTE

UNDERWRITING NOTES

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 $182,928 10,760 $188,416 11,083 ($3,659) 2.00% (215) ($3,768) 2.00% (222) $179,269 10,545 $184,648 10,862 $14,000 7.81% 824 $15,000 8.12% 882 $1,458 0.81% 86 $1,501 0.81% 88 $15,458 8.62% 909 $16,501 8.94% 971 $194,727 11,455 $201,149 11,832 ($8,963) 5.00% (527) ($9,232) 5.00% (543) ($3,585) 2.00% (211) ($3,693) 2.00% (217) $182,178 91.00% 10,716 $188,224 91.00% 11,072 % of EGI Per Unit % of EGI Per Unit $14,500 7.96% 853 $14,500 7.96% 853 $14,500 7.96% 853 $14,500 7.96% 853 $6,936 3.81% 408 $7,075 3.88% 416 $6,230 3.42% 366 $6,355 3.49% 374 $4,661 2.56% 274 $4,754 2.61% 280 $2,576 1.41% 152 $2,628 1.44% 155 $13,467 7.39% 792 $13,736 7.54% 808 $34,903 19.16% 2,053 $35,311 19.38% 2,077 $1,786 0.98% 105 $1,822 1.00% 107 $607 0.33% 36 $619 0.34% 36 $2,393 1.31% 141 $2,441 1.34% 144 $10,404 5.71% 612 $10,612 5.83% 624 $867 0.48% 51 $884 0.49% 52 $13,005 7.14% 765 $13,265 7.28% 780 $2,601 1.43% 153 $2,653 1.46% 156 $12,752 7.00% 750 $13,176 7.00% 750 $4,510 2.48% 265 $4,600 2.53% 271 $46,533 25.54% 2,737 $47,631 25.91% 2,777 $81,436 44.70% 4,790 $82,943 45.53% 4,879 $100,742 55.30% 5,926 $105,281 57.79% 6,193
INCOME
EXPENSE MT CARMEL MANORFINANCIALS
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 $154,200 $177,600 $182,928 $188,416 $194,068 $199,890 $205,887 $212,064 $218,426 $224,978 $231,728 Gain (Loss) to Lease ($27,000) ($17,760) ($3,659) ($3,768) ($3,881) ($3,998) ($4,118) ($4,241) ($4,369) ($4,500) ($4,635) GROSS SCHEDULED RENT $127,200 $159,840 $179,269 $184,648 $190,187 $195,893 $201,769 $207,822 $214,057 $220,479 $227,093 OTHER INCOME $15,374 $15,415 $15,458 $16,501 $16,831 $17,168 $17,511 $17,862 $18,219 $18,583 $18,955 GROSS POTENTIAL INCOME $142,574 $175,255 $194,727 $201,149 $207,018 $213,061 $219,281 $225,684 $232,276 $239,062 $246,048 Physical Vacancy ($9,600) ($7,992) ($8,963) ($9,232) ($9,509) ($9,795) ($10,088) ($10,391) ($10,703) ($11,024) ($11,355) Bad Debt $0 ($3,197) ($3,585) ($3,693) ($3,804) ($3,918) ($4,035) ($4,156) ($4,281) ($4,410) ($4,542) EFFECTIVE GROSS INCOME $132,974 $164,066 $182,178 $188,224 $193,705 $199,348 $205,157 $211,136 $217,292 $223,629 $230,152 Real Estate Taxes $14,500 $14,500 $14,500 $14,500 $14,790 $15,086 $15,388 $15,696 $16,010 $16,330 $16,656 Insurance $7,284 $6,800 $6,936 $7,075 $7,216 $7,361 $7,508 $7,658 $7,811 $7,967 $8,127 Utilities $12,944 $13,203 $13,467 $13,736 $14,011 $14,291 $14,577 $14,869 $15,166 $15,469 $15,779 Contract Services $1,750 $2,346 $2,393 $2,441 $2,490 $2,539 $2,590 $2,642 $2,695 $2,749 $2,804 Repairs & Maintenance $7,340 $10,200 $10,404 $10,612 $10,824 $11,041 $11,262 $11,487 $11,717 $11,951 $12,190 Marketing & Promotion $0 $850 $867 $884 $902 $920 $938 $957 $976 $996 $1,016 Labor $0 $12,750 $13,005 $13,265 $13,530 $13,801 $14,077 $14,359 $14,646 $14,939 $15,237 General & Administrative $3,468 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 Management Fee $9,308 $11,485 $12,752 $13,176 $13,559 $13,954 $14,361 $14,780 $15,210 $15,654 $16,111 Replacement & Reserves $4,335 $4,422 $4,510 $4,600 $4,692 $4,786 $4,882 $4,980 $5,079 $5,181 $5,284 TOTAL EXPENSES $60,930 $79,106 $81,436 $82,943 $84,722 $86,540 $88,398 $90,298 $92,239 $94,223 $96,251 NET OPERATING INCOME $72,044 $84,961 $100,742 $105,281 $108,984 $112,808 $116,759 $120,839 $125,053 $129,406 $133,901 INCOME EXPENSE
CASH FLOW

*Calculated as a percentage of Gross Potential Rent | **Calculated as a percentage of Effective Gross Income

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 15.18% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 10.00% 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%
Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code 526 Old St Rt 74 41-32-13A-021 1967 0.95 $571,900 $200,170 72.440093 $14,500.34 401-C-APARTMENTS 4-19 RENTAL UNITS Total 0.95 $571,900 $200,170 $14,500.34

LOCAL MARKET

04

CINCINNATI, Ohio

The steady and stable nature of the Cincinnati apartment market was undoubtfully a benefit through 2020. The MSA saw a 2.7% annual increase in effective asking rents on new leases which matched the market’s norm for the 2010s decade. This growth put Cincinnati at #14 amongst the 50 largest markets for rent growth in 2020. Although occupancy was down 0.3 points from the prior year’s rate, the 4th quarter 2020 occupancy rate (96.4%) ranked #11 among the top 50 markets and #3 regionally. Only Q1 2020 saw net move-outs, although that’s typically the case in the local

market due to seasonal demand patterns, the three subsequent quarters saw huge demand and absorption totaled 1,563 units. That is 38% above the 20-year norm for annual absorption. During the peak of the pandemic challenges the job market declined 4.6%, this ranked Cincinnati 3rd best among the Midwest and was significantly better than the national average of 5.8%.

ECONOMIC OVERVIEW

Prior to the pandemic, Cincinnati’s real gross metropolitan prod uct grew at an average annual rate of 1.8% from 2015 to 2019. During that same five-year period, job growth averaged 1.4% annually, with roughly 15,500 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 9.7% year-over-year in 2nd quarter. In the year-ending 3rd quarter 2022, the metro’s inflation-adjusted economic output expand ed 0.3%. At the same time, the metro recorded a net gain of 1,400 jobs, expanding the employment base 0.1%. Cincinnati’s unemployment rate in August 2022 declined 0.5 points yearover-year to 3.8%, on par with the national average of 3.8%. During the past year, job gains in Cincinnati were most pro nounced in the Manufacturing sector followed by Trade/Trans portation/Utilities. Due to job losses stemming from the pan demic, Cincinnati’s current employment base now sits at about 1% below the pre-pandemic level in February 2020. Cincinnati, like many other Rust Belt markets, has long had a concentration in higher-paying manufacturing jobs and has been working to reinvent its economy as a high-skill, high-value manufacturing center. Further, Cincinnati is home to corporate headquarters for seven Fortune 500 companies.

• Cincinnati characteristically managed to escape the more extreme swings in apartment market performance seen over the last two years in the wake of the pandemic. Although apartment absorption cooled considerably in 3rd quarter 2022, Cincinnati apartment demand did not plumet to the degree seen in many other markets nationwide.

• As deliveries mount to a record rate over the next year, operators will be unlikely to sustain Cincinnati’s recent record high rent growth. There were 6,411 units under construction at the end of 3rd quarter, with 3,722

DEMOGRAPHICS: STATISTICS

Population: 2.2M

Average occupancy: 96.9%

DEMOGRAPHIC OVERVIEW the rent

of those units slated to come online within the next 12 months. Although those deliveries will be spread more evenly throughout the Cincinnati market, new supply will test the depth of the Class A renter pool in a market that has still yet to recover all its pandemic-era job losses.

• During the year-ending 3rd Quarter 2022, median home prices in Cincinnati increased an average of 10.6%, landing at a median price of roughly $270,000.

• The local homeownership rate averaged 70.6% in the year-ending 2nd

• In 3rd quarter 2022, effective asking rents for new leases were up 11.8% yearover-year. That annual rent performance was above the market’s five-year average of 4.7%. Cincinnati’s recent annual rent change performance ranked #2 in the Midwest region.

Median age: 37.9

Rent growth: 11.8%

MSA median home value: $270,000

MSA median hhi: $66,900

• Product classes in Cincinnati, annual effective rent change registered at 14.8% in Class A units, 11.6% in Class B units and 8.1% in Class C units.

1 - Year growth: 10.6%

1 - Year growth: 2.35%

• Among submarkets, the strongest annual rent change performances over the past year were in Butler County and North Central Cincinnati.

• The weakest performances were in West Cincinnati and North Cincinnati. As of 3rd quarter 2022, effective asking rental rates in Cincinnati averaged S1,286 per month, or $1.372 per square foot.

SUPPLY & DEMAND

• New apartment completions in Cincinnati were modest recently, as 2,130 units delivered in the year-ending 3rd quarter 2022. With 176 units removed from existing stock over the past year, the local inventory base grew 1.2%.

• In the past year, supply was greatest in Central Cincinnati and Campbell/Kenton Counties. New supply was concentrated in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County, which received 65% of the market’s total completions.

• At the end of 3rd quarter 2022, there were 6,411 units under construction with 3,722 of those units scheduled to complete in the next four quarters.

• Scheduled deliveries in the coming year are expected to be concentrated in North Central Cincinnati and Central Cincinnati.

• Over the past five years, annual absorption in Cincinnati has ranged from 675 units to 4,536 units, averaging 2,286 units annually during that time.

• In the year-ending 3rd quarter 2022, the market recorded demand for 1,013 units, trailing concurrent supply volumes. Among submarkets, the strongest absorption over the past five years was seen in Central Cincinnati, Campbell/Kenton Counties and Northeast Cincinnati/Warren County.

• Those areas accounted for 56% of the market’s total demand over the past five years. In the past year, demand was greatest in Central Cincinnati and Campbell/Kenton Counties.

CAPITAL MARKETS

• Transaction dollar volumes in Cincinnati totaled roughly $332.9 million in the year-ending 3rd quarter 2022, down about 40% year-over-year.

• Transactions in the year-ending 3rd quarter 2022 yielded an average cap rate of 5.50%, down 21 basis points year-over-year. By comparison, cap rates averaged 5.05% in the Midwest region and 4.56% nationally.

• The average price per unit in Cincinnati came in at roughly $151,800, up 57.4% annually. Cincinnati’s average price per unit landed below the norms for both the Midwest region ($173,900) and U.S. overall ($238,700).

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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