Summary

Class A apartment complex built in 1997, consisting of 260 units; located in southeastern Louisville along Hurstbourne Parkway. Hurstbourne Parkway is a four lane primary arterial with significant drive-by traffic; parkway provides ready and easy access to Interstate 64 with further connection to the outer loop I-265. Hurstbourne Parkway is undergoing an expansion which when completed is expected to further increase traffic count by Fenwick Place and increased access to southeastern Jefferson County, GE’s appliance park, and the airport.

Income-oriented investment profile with the current return representing nearly 75% of the total return. Strategy includes newly originated, long term fixed rate financing to lock-in low rates to protect the current return without sacrificing the ability to service the debt. The real estate acquisition price is approximately 90% of replacement cost. Market fundamentals have stabilized with indications of an up-cycle occurring over the next three to five years. The up-cycle for apartment investing is being driven by a combination of renewed employment growth, lack of new construction, and reduced affordability of single family housing as interest rates rise. The strategy will also include a minor capital improvement program to enhance the asset’s long term value and reduce on-going maintenance.