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Q UA RT E R LY R E P O RT

Q3 2021 IN REVIEW CINCINNATI | DAYTON | LEXINGTON | LOUISVILLE

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INTRODUCTION Our team, as Marcus & Millichap advisors, is positioned to help investors form and execute tailored strategies that maximize the benefit of the unprecedentedly low cost of capital and ultimately strengthen portfolio performance by expanding returns. We have implemented our new framework by forcefully deploying our policy tools. Marcus & Millichap expects that it will be appropriate to maintain the current accommodative target range of the federal funds rate until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment, inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In addition, we will continue to increase our holdings of Treasury securities and agency mortgage-backed securities at least at their current pace until substantial further progress has been made toward our goals. These purchases, and the associated increase in the Federal Reserve’s balance sheet, have materially eased financial conditions and are providing substantial support to the economy. The economy is a long way from our employment and inflation goals, and it is likely to take some time for noteworthy progress to be achieved. We are firmly committed to communicating our assessment of progress toward our goals well in advance of any change in the pace of purchases

Q3


DAY TO N RENT GROWTH: 3.2% RENT: $933 RENT/SF: $1.041 OCCUPANCY: 97.5% SUPPLY UNITS COMPETED IN LAST 4 QUARTER: 347 ANNUAL SUPPLY GROWTH: 0.6% UNITS UNDER CONSTRUCTION: 384 PROJECTED SUPPLY GROWTH: 0.61% ANNUAL JOB ADDITIONS: - (1,921)

C IN C IN N AT I RENT GROWTH: 3.2% RENT: $1,104 RENT/SF: $1.187 OCCUPANCY: 97.4%

LOU IS VILLE RENT GROWTH: 3.4% RENT: $1,007 RENT/SF: $1.065 OCCUPANCY: 96.4%

SUPPLY UNITS COMPETED IN LAST 4 QUARTER: 1,233 ANNUAL SUPPLY GROWTH: 0.8% UNITS UNDER CONSTRUCTION: 4,388 PROJECTED SUPPLY GROWTH: 1.79% ANNUAL JOB ADDITIONS: 31,980

SUPPLY UNITS COMPETED IN LAST 4 QUARTER: 2,415 ANNUAL SUPPLY GROWTH: 2.7% UNITS UNDER CONSTRUCTION: 2,634 PROJECTED SUPPLY GROWTH: 2.85% ANNUAL JOB ADDITIONS: 19,855

LEX IN GTO N RENT GROWTH: 6.3% RENT: $988 RENT/SF: $1.118 OCCUPANCY: 97.3% SUPPLY UNITS COMPETED IN LAST 4 QUARTER: 252 ANNUAL SUPPLY GROWTH: 0.6% UNITS UNDER CONSTRUCTION: 680 PROJECTED SUPPLY GROWTH: 1.52% ANNUAL JOB ADDITIONS: 3,974

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C IN C IN N AT I ECONOMY

OCCUPANCY

• In 2020, COVID-19 mitigation measures and limited business activity caused

• Over the past year, occupancy gained 0.9 points, with the 3rd quarter 2021

the local economy to contract as much as 10.0% year-over-year in 2nd

rate landing at 97.4%. That occupancy rate ranked #15 among the 29 key Mid-

quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjusted

west region markets and #79 among the top 150 markets nationally.

economic output expanded 6.5%.

• In 3rd quarter 2021 occupancy registered at 96.8% in Class A units, 97.7% in

• The metro recorded a net gain of 44,000 jobs, expanding the employment

Class B units and 97.5% in Class C units. Occupancy in Class C product was

base 4.2%. As such, Cincinnati’s unemployment rate in August 2021 declined

generally tightest over the past five years, but Class A improved 2.5 points in

3.5 points year-over-year to 4.4%, below the national average of 5.3%.

the past year.

• During the past year, job gains in Cincinnati were most pronounced in the

• Among supermarkets, 3rd quarter 2021 occupancy was strongest in North-

Professional/Business Services sector followed by Education/Health

east Cincinnati/Warren County and Southeast Cincinnati. The weakest read-

Services.

ing was seen in Central Cincinnati. Over the past five years, Campbell/Kenton CINCINNATI YOY EMPLOYMENT GROWTH

Q3

Counties generally led for occupancy. EMPLOYMENT SECTOR

% SHARE

Trade, Transportation, and Utilities

19.9%

Professional and Business Services

16.8%

Education and Health Services

15.6%

Government

11.0%

Leisure and Hospitality

10.6%

Manufacturing

10.2%

Financial Activities

6.5%

Mining, Logging and Construction

4.4%

Other Services

3.6%

Information

1.2%

Total Non-Farm

100%


RENT • In 3rd quarter 2021, same-store effective asking rents for new leases were

RENT GROWTH Quarterly

Yearly

Northeast / Warren County

4.4%

8.3%

Boone County / Erlanger

4.3%

9.2%

• Cincinnati’s recent annual rent change performance ranked #17 in the Mid-

Campbell / Kenton Counties

3.4%

5.5%

west region and #120 nationally. In Cincinnati, Class B led for rent perfor-

Butler County

3.1%

8.8%

mance over the past five years. In 3rd quarter 2021, annual effective rent

Southeast Cincinnati

2.8%

6.3%

change registered at 7.8% in Class A units, 8.0% in Class B units and 2.9% in

North Cincinnati

2.8%

7.6%

Class C units.

North Central Cincinnati

2.7%

3.6%

Central Cincinnati

2.1%

0.8%

West Cincinnati

1.7%

5.7%

up 6. 7% year-over-year. That annual rent performance was more than double the market’s five-year average of 3.2%.

Sector

Q3 2021 MARKET SNAPSHOT OCCUPANCY

YEAR OVER YEAR RENT GROWTH

AVERAGE RENT PER UNIT

EMPLOYMENT

2000+

97.2%

2000+

4.8%

2000+

$1,414

Unemployment Rate

1990s

98.0%

1990s

8.9%

1990s

$1,146

Jobs Added YTD

1980s

97.7%

1980s

9.2%

1980s

$1,067

1970s

97.2%

1970s

7.4%

1970s

$925

Pre-1970s

97.4%

Pre-1970s

5.0%

Pre-1970s

$884

4.4% 31,980

CURRENT OCC. RATE VS 1 YR PROJECTED OCC. RATE 98.5%

Current Occ. Rate By Submarket 1 Year Projection

OCCUPANCY

97.5% 96.5% 95.9% 94.5% 93.5% Central

North Central

West

North

Butler

Northeast

Southeast Campbell

Boone

Metro

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Q3 MARKET DEMAND • Over the past five years, annual absorption in Cincinnati has ranged from 717 units to 3,048 units, averaging 1,732 units annually during that time. In the year-ending 3rd quarter 2021, the market recorded demand for 2,628 units, doubling the concurrent supply volumes. • 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 52% of the market’s total demand over the past five years. In the past year, demand was greatest in Central Cincinnati and North Central Cincinnati.

Submarkets

Rent

Occupancy

YOY

English Woods / Price Hill

$818

94.8%

13.9%

Woodlawn

$1,167

98.0%

13.7%

Mt. Washington

$928

96.4%

12.1%

Springboro

$1,061

98.1%

11.8%

Mt. Healthy

$957

93.7%

10.4%

LOWEST OVERALL PERFORMING SUBMARKETS

SUPPLY

Submarkets

Rent

Occupancy

YOY

• Completions over the past year expanded the local inventory base 0.8%. Over

Roselawn

$841

96.8%

2.6%

the next year, inventory growth is set to accelerate with the scheduled addition

Walnut Hills

$1,292

96.0%

2.3%

of 2,913 units, the market’s third-highest annual total in six years. At the end of

Kenwood

$1,502

95.7%

1.8%

Dent / Harrison

$841

97.4%

1.4%

Oxford

$1,518

-

-5.2%

3rd quarter 2021, there were 4,388 units under construction. • New supply over the past five years has been concentrated in Central Cincinnati and Campbell/Kenton Counties, which received 46% of the market’s total completions over that time. Scheduled new deliveries in the corning year are expected to be concentrated in Central Cincinnati and North Central Cincinnati with Campbell/Kenton Counties showing renewed activity.

Submarket

1,233units completed in past 12 months

4,388units currently under construction

UNITS UNDER CONSTRUCTION

TOTAL FUTURE INVENTORY GROWTH

Q3

Highest Overall Performing Submarket

Change

Submarket

Units 1,048

Central

3.5%

Central Cincinnati

Northeast

1.4%

North Central Cincinnati

858

North Central

1.1%

Campbell/Kenton Counties

804

Southeast

0.9%

Northeast Cincinnati/Warren County

376

Campbell / Kenton Counties

0.8%

Butler County

326


D EV ELOPMENT PIPLINE M A P - C IN C IN N AT I

PLANNED UNDER CONSTRUCTION

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DAY TO N ECONOMY

OCCUPANCY

• Dayton is home to a diverse list of employers. including Wright-Patterson

• Over the past year, occupancy gained 1.4 points, with the 3rd quarter 2021

Air Force Base, large health and insurance networks, advanced

rate landing at 97.5%, the highest rate since mid-2000.

manufacturing companies and educational entities.

• That occupancy rate ranked #10 among the 29 key Midwest region markets

• In 2020, COVID-19 mitigation measures and limited business activity

and #71 among the top 150 markets nationally.

caused tile local economy to contract as much as 10.5% year-over-year in

• Third quarter 2021 occupancy registered at 97.3% in Class A units, 97.7% in

2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-

Class B units and 97.3% in Class C units. Occupancy in Class B and C product

adjusted economic output expanded 5.0%.

was generally tightest over the past five years.

• The metro recorded a net gain of 3,300 jobs, expanding the employment

• Among submarkets, 3rd quarter 2021 occupancy was strongest in North

base 0.9%. As such, Dayton’s unemployment rate in August 2021 declined

Dayton/Miami County, at 98.4%. The weakest readings, though still tight at

3.8 points year-over-year to 5.3%, matching the national average of 5.3%.

97.1 %, were in Northwest Dayton and Greene County. Over the past five years,

• During the past year, job gains in Dayton were most pronounced in the

North Dayton/Miami County generally had the strongest occupancy rates.

trade, transportation, utilities sector followed by Manufacturing. Due to job losses stemming from the pandemic, Dayton’s current employment base now sits roughly 11,500 jobs, or about 3% below the 1st quarter 2008 level, prior to the Great Recession. DAYTON YOY EMPLOYMENT GROWTH

Q3

EMPLOYMENT SECTOR

% SHARE

Education and Health Services

18.8%

Trade, Transportation, and Utilities

17.8%

Government

15.5%

Professional and Business Services

12.9%

Manufacturing

11.4%

Leisure and Hospitality

9.5%

Financial Activities

5.1%

Mining, Logging and Construction

3.9%

Other Services

3.5%

Information

1.6%

Total Non-Farm

100%


RENT • Over the past five years, annual change in effective asking rents in Dayton ranged from 1.5% to the current all-time high in 3rd quarter 2021 of 6.9%. That recent annual rent performance was well above the market’s five-year average of 3.0% and ranked #15 in the Midwest region and #117 nationally.

RENT GROWTH Sector

Quarterly

Yearly

South Montgomery County

5.8%

11.0%

Greene County

2.5%

4.5%

Central Dayton / Kettering

2.3%

5.6%

• Amongst product classes in Dayton, Class B led for rent performance over

North Dayton / Miami County

1.8%

7.3%

the past five years, but Class A properties are responsible for the current rate

Northwest Dayton

1.7%

5.9%

jump. In 3rd quarter 2021, annual effective rent change registered at 10.5% in Class A units, 6.0% in Class B units and 4.4% in Class C units.

Q3 2021 MARKET SNAPSHOT OCCUPANCY

YEAR OVER YEAR RENT GROWTH

AVERAGE RENT PER UNIT

EMPLOYMENT

2000+

97.6%

2000+

6.1%

2000+

$1,250

Unemployment Rate

5.3%

1990s

97.2%

1990s

7.4%

1990s

$1,049

Jobs Added YTD

-1,921

1980s

97.6%

1980s

9.2%

1980s

$887

1970s

98.2%

1970s

5.7%

1970s

$811

Pre-1970s

96.9%

Pre-1970s

6.5%

Pre-1970s

$764

CURRENT OCC. RATE VS 1 YR PROJECTED OCC. RATE

OCCUPANCY

98%

Current Occ. Rate By Submarket

97%

1 Year Projection

96% 95% 94% 93% Central

Green County Northwest Dayton South Montgomery North/Miami County

Metro 9


Q3 MARKET SUPPLY • The rate of new apartment completions in Dayton has been declining recently, as 347 units delivered in the year-ending 3rd quarter 2021. Dayton’s annual completion volume has ranged from 276 units to 1,127 units over the last five years. Annual new supply averaged 631 units, and annual inventory growth averaged 1.2% over the past five years. • Completions over the past year expanded the local inventory base 0.6%. Over the next year, inventory growth is set to remain around the current level with the scheduled addition of 384 units, accounting for all the units under construction at the end of 3rd quarter 2021. • Among submarkets, new supply over the past five years has been concentrated in South Montgomery County, which received 38% of the market’s total completions over that time. Scheduled new deliveries in the coming year are expected to be limited to Central Dayton/Kettering.

347units completed in past 12 months

384units currently under construction

TOTAL FUTURE INVENTORY GROWTH Submarket Central Dayton / Kettering North Dayton / Miami County

Q3

Highest Overall Performing Submarket Submarkets

Rent

Occupancy

YOY

West Dayton

$624

97.6%

14.5%

Miami

$1,090

97.0%

13.3%

Trotwood

$798

96.7%

12.1%

Downtown Dayton

$1,182

95.4%

11.8%

Bellbrook

$1,226

96.8%

11.0%

LOWEST OVERALL PERFORMING SUBMARKETS Submarkets

Rent

Occupancy

YOY

Springfield

$743

97.4%

5.8%

East Dayton

$709

96.2%

5.5%

Englewood

$879

92.8%

4.8%

Huber Heights

$938

97.1%

4.1%

Xenia

$746

94.3%

1.5%

UNITS UNDER CONSTRUCTION Change 2.6% 0%

Submarket Central Dayton / Kettering North Dayton/Miami County

Units 384 0


D EV ELOPMENT PIPLINE M A P - DAY TON

PLANNED UNDER CONSTRUCTION

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LOU IS V ILLE ECONOMY • Prior to the pandemic, Louisville/Jefferson County’s real gross metropol-

• Over the past year, occupancy gained 1.2 points, with the 3rd quarter 2021

itan product grew at an average annual rate of 2.0% from 2015 to 2019.

rate landing at 96.4%.

During that same five-year period, job growth averaged 1.5% annually, with

• That occupancy rate ranked #52 among the 65 key South region markets

roughly 9,800 jobs added on average each year.

and #130 among the top 150 markets nationally and was only the third time

• In 2020, COVID-19 mitigation measures and limited business activity

the market has topped 96% in more than 20 years.

caused the local economy to contract as much as 10.5% year-over-year in

• Looking at product classes in Louisville/Jefferson County, 3rd quarter 2021

2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjust-

occupancy was at 96.1 % in Class A units, 96.5% in Class B units and 96.6%

ed economic output expanded 4.6%.

in Class C units.

• The metro recorded a net gain of 22,400 jobs, expanding the employment

• Among submarkets, 3rd quarter 2021 occupancy was strongest in North-

base 3.5%. As such, Louisville/Jefferson County’s unemployment rate in

west Louisville and South Central Louisville. The weakest readings were seen

August 2021 declined 2.2 points year-over-year to 3.4%, below the national

in Central Louisville and Southwest Louisville.

average of 5.3%.

Q3

OCCUPANCY

LOUISVILLE YOY EMPLOYMENT GROWTH

EMPLOYMENT SECTOR

% SHARE

Trade, Transportation, and Utilities

23.3%

Education and Health Services

14.6%

Manufacturing

12.4%

Professional and Business Services

12.1%

Government

11.8%

Leisure and Hospitality

9.7%

Financial Activities

6.7%

Mining, Logging and Construction

4.3%

Other Services

3.3%

Information

1.2%

Total Non-Farm

100%


RENT • Over the past five years, annual change in effective asking rents in Louisville/ Jefferson County ranged from a decline of 0.1 % to 7.5%. In 3rd quarter 2021, same-store effective asking rents for new leases were up 7.5% year-over-year, the largest annual increase since mid-1996.

RENT GROWTH Sector

Quarterly

Yearly

Central Louisville

5.2%

8.6%

Northeast Louisville

4.1%

9.6%

Southeast Louisville

4.0%

6.8%

• That annual rent performance was well above the market’s five-year aver-

South Central Louisville

2.9%

7.5%

age of 2.5%. Louisville/Jefferson County’s recent annual rent change perfor-

Northwest Louisville

2.6%

5.5%

mance ranked #58 in the South region and #109 nationally.

Southwest Louisville

1.4%

4.4%

• Class A led for rent performance over the past five years. In 3rd quarter 2021, annual effective rent change registered at 12.0% in Class A units, 6.4% in Class B units and 3.1 % in Class C units.

Q3 2021 MARKET SNAPSHOT OCCUPANCY

YEAR OVER YEAR RENT GROWTH

AVERAGE RENT PER UNIT

EMPLOYMENT Unemployment Rate

2000+

95.5%

2000+

7.5%

2000+

$1,178

1990s

99.0%

1990s

5.2%

1990s

$900

1980s

96.0%

1980s

10.8%

1980s

$974

1970s

96.1%

1970s

6.3%

1970s

$882

Pre-1970s

96.2%

Pre-1970s

5.3%

Pre-1970s

$856

Jobs Added YTD

3.4% 19,855

CURRENT OCC. RATE VS 1 YR PROJECTED OCC. RATE

OCCUPANCY

98%

Current Occ. Rate By Submarket 1 Year Projection

97% 96% 95% 94% 93%

Central

Northeast

Southeast

South Central

Southwest

Northwest

Metro 13


Q3 MARKET SUPPLY • The level of new apartment completions in Louisville/ Jefferson County were elevated, as 2,415 units delivered in the year-ending 3rd quarter 2021, the highest level in the mid-1990s. • That annual completion volume compares to a low of 945 units and the current high of 2,415 units over the past five years. Annual new supply averaged 1,734 units, and annual inventory growth averaged 2.0% over the past five years. Completions over the past year expanded the local inventory base 2.7%.

Highest Overall Performing Submarket Submarkets

Rent

Occupancy

YOY

La Grange/Crestwood

$1,046

96.0%

12.4%

Shepherdsville

$804

99.8%

10.0%

Elizabethtown

$880

99.2%

9.6%

Springhurst/Glenview Manor

$1,291

95.5%

9.0%

Douglas Hills/Lyndon

$1,231

94.6%

8.9%

• Over the next year, inventory growth is set to remain around the current level

LOWEST OVERALL PERFORMING SUBMARKETS

with the scheduled addition of 2,241 units. At the end of 3rd quarter 2021,

Submarkets

Rent

Occupancy

YOY

there were 2,634 units under construction.

Kenwood Hill / Beechmont / Fairdale

$811

94.3%

5.9%

• New supply over the past five years has been concentrated in Northeast

New Albany

$927

96.3%

5.8%

Louisville, Southwest Louisville, and Northwest Louisville, which received 68%

Charlestown / Sellersburg

$968

96.4%

5.6%

of the market’s total completions collectively. Scheduled new deliveries in the

Okolona / Hillview / Highview

$959

96.4%

5.4%

coming year are expected to be concentrated in Northwest Louisville and

Central Downtown / Old Louisville

$1,397

81.8%

3.9%

Northeast Louisville.

2,415units completed in past 12 months

TOTAL FUTURE INVENTORY GROWTH Submarket

Q3

2,634units currently under construction

UNITS UNDER CONSTRUCTION Change

Submarket

Units

Northwest Louisville

8.1%

Northwest Louisville

1,000

Southeast Louisville

4.5%

Northeast Louisville

695

Northeast Louisville

4.0%

Southeast Louisville

482

Southwest Louisville

1.7%

Southwest Louisville

421

South Central Louisville

0.2%

South Central Louisville

36


D EV ELOPMENT PIPELIN E M A P - LOUIS V ILLE

PLANNED UNDER CONSTRUCTION

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LEX ING TO N ECONOMY

OCCUPANCY

• Lexington has mix of stable anchors alongside some larger, private

• Occupancy in the Lexington-Fayette apartment market has ranged from

employers. Prior to the pandemic, Lexington-Fayette’s real gross

93.0% to 97.3% over the past five years, averaging 94.7% during the same

metropolitan product grew at an average annual rate of 1.6% from 2015 to

five yer period. Over the past year, occupancy gained 1.4 points, with the 3rd

2019. During that same five-year period, job growth averaged 1.2% annually,

quarter 2021 rate landing at 97.3%.

with roughly 3,100 jobs added on average each year.

• That occupancy rate ranked #29 among the 65 key South region markets

• In 2020, COVID-19 mitigation measures and limited business activity

and #85 among the top 150 markets nationally. That tight occupancy was

caused the local economy to contract as much as 10.3% year-over-year in

also the highest since RealPage began tracking the market.

2nd quarter. In the year-ending 3rd quarter 2021, the metro’s inflation-adjust-

• Looking at product classes in Lexington-Fayette, 3rd quarter 2021

ed economic output expanded 6.5%.

occupancy was 97.9% in Class A units, 97.3% in Class B units and 96.4% in Class C units, occupancy in Class C product was generally tightest over the

LEXINGTON YOY EMPLOYMENT GROWTH

Q3

past five years. EMPLOYMENT SECTOR

% SHARE

Government

19.5%

Trade, Transportation, and Utilities

19.0%

Professional and Business Services

14.3%

Education and Health Services

13.0%

Manufacturing

10.7%

Leisure and Hospitality

9.8%

Mining, Logging and Construction

5.2%

Financial Activities

3.7%

Other Services

3.7%

Information

1.0%

Total Non-Farm

100%


RENT

RENT GROWTH

• Over the past five years, annual change in effective asking rents in Lexington-Fayette ranged from a decline of 0.1 % to an increase of 11.2%. In 3rd quarter 2021, same-store effective asking rents for new leases were up 11.2% year-over-year.

Sector

Quarterly

Yearly

Downtown Lexington / University

7.5%

12.1%

South Lexington

7.2%

11.4%

North Lexington

3.3%

10.0%

• That annual rent performance was above the market’s five-year average of 2.8% and was the highest annual rent growth seen since RealPage began tracking the market. Lexington-Fayette’s recent annual rent change performance ranked #37 in the South region and #65 nationally.

Q3 2021 MARKET SNAPSHOT OCCUPANCY

YEAR OVER YEAR RENT GROWTH

AVERAGE RENT PER UNIT

EMPLOYMENT

2000+

98.2%

2000+

13.5%

2000+

$1,188

Unemployment Rate

3.2%

1990s

97.7%

1990s

17.0%

1990s

$1,111

Jobs Added YTD

3,974

1980s

96.9%

1980s

9.7%

1980s

$899

1970s

97.2%

1970s

7.7%

1970s

$852

Pre-1970s

95.0%

Pre-1970s

3.7%

Pre-1970s

$697

OCCUPANCY

CURRENT OCC. RATE VS 1 YR PROJECTED OCC. RATE 98%

Current Occ. Rate By Submarket

97%

1 Year Projection

96% 95% 94% 93% Downtown Lexington/University

North Lexington

South Lexington

Metro

17


Q3 MARKET SUPPLY • The level of new apartment completions in Lexington-Fayette were modest recently, as 252 units delivered in the year-ending 3rd quarter 2021. That annual completion volume compares to a low of 24 units and a high of 900 units over the past five years. Annual new supply averaged 357 units, and annual inventory growth averaged 0.6% over the past five years. • Completions over the past year expanded the local inventory base 0.6% and were concentrated only in the Downtown Lexington/University submarket. • Over the next year, inventory growth is set to accelerate with the scheduled addition of 680 units. At the end of 3rd quarter 2021, there were 866 units under construction.

Submarkets

Rent

Occupancy

YOY

Jessamine

$956

97.2%

13.8%

Southeast Lexington

$935

96.5%

11.7%

Scott

$1,062

96.7%

11.6%

South Central Lexington

$931

96.5%

11.5%

East Lexington

$1,036

96.3%

11.0%

LOWEST OVERALL PERFORMING SUBMARKETS Submarkets

Rent

Occupancy

YOY

West Lexington

$854

96.6%

6.1%

time. Scheduled new deliveries in the coming year are expected to deliver in

Northeast Lexington

$753

96.0%

5.9%

South Lexington and North Lexington.

Southwest Lexington

$1,183

95.5%

5.8%

Franklin

$792

92.4%

5.6%

Downtown Lexington

$1,005

87.1%

4.4%

• New supply over the past five years has been concentrated in South Lexington, which received 58% of the market’s total completions over that

252units completed in past 12 months

680units currently under construction

UNITS UNDER CONSTRUCTION

TOTAL FUTURE INVENTORY GROWTH Submarket

Q3

Highest Overall Performing Submarket

Change

Submarket

Units

North Lexington

4.1%

North Lexington

468

South Lexington

2.3%

South Lexington

398

Downtown Lexington / Downtown

0.0%

Downtown Lexington / University

0


D EV ELOPMENT PIPELIN E M A P - LEXIN GTON

PLANNED UNDER CONSTRUCTION

19


A DG MU LTIFA MILY INVESTMENT ASSOCIATES Austin Sum Senior Investment Associate JD Schmerge Associate Tim VanWingerden Associate Brian Johnston Associate RESEARCH & EVALUATION Sam Petrosino Financial Analyst

Jordan Dickman First Vice President of Investment

Nick Andrews First Vice President of Investment

E: jordandickman@marcusmillichap.com P: 513 -878 - 7735

E: nicholas.andrews@marcusmillichap.com P: 513 -878 - 7741

CLIENT RELATIONS Skyler Wilson Client Relations Manager MARKETING Alex Papa Marketing Coordinator OPERATIONS Brittany Campbell-Koch Director of Operations

Q3


CONFIDENTIALITY & DISCLAIMER The information contained in the following proposal is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the proposal. If you have no interest in the subject property, please promptly return this proposal to Marcus & Millichap. This proposal has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence of absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this proposal has been obtained from sources we believe reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT ANDREWS | DICKMAN FOR MORE DETAILS. 21


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