Investment Overview

Marcus & Millichap is pleased to present the Canoe Creek Apartments in Henderson, KY. Canoe Creek was built in 1973 and has undergone a massive $4 million rehabilitation in 2022, including all new plumbing, electrical, HVAC, appliances, parking lot, new unit interiors, and a full exterior update. Since being renovated, Canoe Creek has experienced strong occupancy levels and has successfully increased rents on tenant renewals. There has been strong economic investment into Henderson, as Pratt Industries opened a $700 million recycled paper and corrugated box factory in September 2023, which is just minutes away from Canoe Creek. This plant, according to Pratt, is the most technologically advanced and environmentally friendly paper mill ever built. The plant will create 325 new jobs in Henderson, with an average pay of around $100,000 per employee. Canoe Creek provides an attractive unit mix of 121 units that consists of thirty-three (33) 1-bed/1-bath, sixty-three (63) 2-bed/1-bath, and twenty-five (25) 3-bed/1bath units. The on-site property manager currently lives in one unit that is located in the on-site office building. Canoe Creek has 23 units under a Housing Assistance Payments (HAP) Contract with the Kentucky Housing Corporation that expires in 2026. These 23 units receive Section 8 vouchers at different rental amounts depending on unit type. The Canoe Creek Apartments offer a prospective investor an opportunity to buy a high-quality, stabilized asset at an attractive cap rate in the highly populated Evansville MSA. There is potential for the new Buyer to install a utility bill back system, or sub meter utilities, as the owner currently pays all utilities. According to CoStar, Henderson, KY had average rent growth of over 5% in 2022, and low vacancy rate of 2.5%, highlighting the strength of the submarket and demand for rental units.