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Multifamily

Silver Creek Apartments

3301 Silverthorn Ln, Jeffersontown, KY 40299

Listing Price: $3,800,000

Cap Rate
5.53%
Number of Units
24
Price/Unit
$158,333
Price/Gross SF
$157.08
Gross SF
24,192

Investment Overview

Marcus & Millichap is pleased to present the Silver Creek Apartments, a 24-unit apartment complex located in Louisville, KY. Silver Creek was completed in early 2020 and is comprised entirely of (24) 2- BD/2-BA units with top-of-the line interior finishes. Located in the heart of the Jeffersontown submarket, the property allows for both market appreciation through the high, natural rent growth, and forced appreciation by increasing rents closer to market average and implementing other strategic value-add tactics. The asset’s A+ location, attracts the young professional tenant base. Minutes from Louisville’s major highways, downtown, the airport, UPS hub, and the vibrant East end, the location offers a unique feel to tenants with quick and easy access to the majority of the city while still allowing for a clean, quiet, and safe place of living in a thriving submarket. THE OPPORTUNITY Silver Creek offers the investor a unique opportunity to acquire a brand-new asset with Class A Interiors while still presenting a strategic value-add plan. Currently, the asset is 100% occupied with recent renewal rates increasing by 2.6% with ZERO tenant push back. Average Market rent for 2-BD/2- BA units is $1,254 while Silver Creek’s average rent is $1,032. This leaves a gap of $222 on current vs. market rent, however, most of the comparable properties are fully amenitized. Assuming base rent at Silver Creek can be moved to $1,150, the property could capture approximately $33,900 in year 1 on each tenant renewal, which would be an average increase in base rent of $118/month. Additionally, there is opportunity to charge back for utility expenses (water, sewer, trash) to maximize gross income. The current owner bills back 5 of out 24 tenants at $50/month. If each tenant can be moved onto a bill back system, this would increase gross income by an additional $11,400. Lastly, the A+ location makes for natural appreciation and high rent growth. THE LOCATION Jeffersontown has experienced an astounding 6.3% rent growth year-over-year. Market rent growth is expected to drastically increase up to 10.5% through by the end of Q2 2022 (Costar.) General forecasts through 2025 still expect rent growth to be between 2 – 6.5% year-over-year. Even with the high forecasted rent growth, the submarket average vacancy rate remains at a stable 4.7%.

Investment Highlights

  • Brand-New 2020 Construction
  • Granite Countertops
  • 3rd Party Professionally Managed

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (513) 878-7733

    License(s) KY: 242197

    Kentucky

Listing Price: $3,800,000

Cap Rate
5.53%
Number of Units
24
Price/Unit
$158,333
Price/Gross SF
$157.08
Gross SF
24,192

Investment Highlights

  • Brand-New 2020 Construction
  • Granite Countertops
  • 3rd Party Professionally Managed

Investment Overview

Marcus & Millichap is pleased to present the Silver Creek Apartments, a 24-unit apartment complex located in Louisville, KY. Silver Creek was completed in early 2020 and is comprised entirely of (24) 2- BD/2-BA units with top-of-the line interior finishes. Located in the heart of the Jeffersontown submarket, the property allows for both market appreciation through the high, natural rent growth, and forced appreciation by increasing rents closer to market average and implementing other strategic value-add tactics. The asset’s A+ location, attracts the young professional tenant base. Minutes from Louisville’s major highways, downtown, the airport, UPS hub, and the vibrant East end, the location offers a unique feel to tenants with quick and easy access to the majority of the city while still allowing for a clean, quiet, and safe place of living in a thriving submarket. THE OPPORTUNITY Silver Creek offers the investor a unique opportunity to acquire a brand-new asset with Class A Interiors while still presenting a strategic value-add plan. Currently, the asset is 100% occupied with recent renewal rates increasing by 2.6% with ZERO tenant push back. Average Market rent for 2-BD/2- BA units is $1,254 while Silver Creek’s average rent is $1,032. This leaves a gap of $222 on current vs. market rent, however, most of the comparable properties are fully amenitized. Assuming base rent at Silver Creek can be moved to $1,150, the property could capture approximately $33,900 in year 1 on each tenant renewal, which would be an average increase in base rent of $118/month. Additionally, there is opportunity to charge back for utility expenses (water, sewer, trash) to maximize gross income. The current owner bills back 5 of out 24 tenants at $50/month. If each tenant can be moved onto a bill back system, this would increase gross income by an additional $11,400. Lastly, the A+ location makes for natural appreciation and high rent growth. THE LOCATION Jeffersontown has experienced an astounding 6.3% rent growth year-over-year. Market rent growth is expected to drastically increase up to 10.5% through by the end of Q2 2022 (Costar.) General forecasts through 2025 still expect rent growth to be between 2 – 6.5% year-over-year. Even with the high forecasted rent growth, the submarket average vacancy rate remains at a stable 4.7%.

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (513) 878-7733

    License(s): KY: 242197

    Kentucky

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