Townhomes and Flats at MSU

Highlights:

• Stabilized Student Housing Asset: 110 units, comprised of 13 buildings with five distinct floor plans (townhomes and flats).
• Proximity to Campus: Just minutes from Morehead State University, offering proximity to class and a quiet residential setting.
• Full Renovation Program Completed: Current ownership invested $2.55M+ in upgrades, including new flooring, all new shingled roofing,
• HVAC systems, appliances, parking lots, plumbing, lighting, and interior finishes.
• Management: Current management has offered to continue their expert management of the property, creating the potential of a hands-off investment for a potential investor.
• Market-Leading Rents: Achieves an average rent of $1,005 per unit, positioning the property at the top of the local student housing market.
• Consistently 100% Occupied: Proven demand from MSU’s enrollment base supports strong leasing performance year after year.
• Professional Local Management: Experienced team in place ensures operational continuity and tenant satisfaction.
• Attractive Financial Profile: Current NOI of $962,004, offered at $12,535,000 (7.67% cap rate), with a projected 10%+ cash-on-cash
• return for year 1.
• Undersupplied Market: Limited competition from purpose-built student housing or housing for grad students/young professionals in Morehead creates ongoing demand stability and rent growth potential.

Description:

SVN Stone Commercial Real Estate is pleased to present the exclusive offering of The Townhomes and Flats at MSU, a fully stabilized, purpose-built student housing community serving Morehead State University in Morehead, Kentucky.

The property consists of 13 buildings with 110 units (including a model home/office) across five distinct floor plans, offering a mix of spacious townhome and flat-style residences. Located just minutes from campus, The Townhomes and Flats at MSU is ideally positioned to capture strong student demand while offering a quiet residential environment with superior finishes and professional management.

Since acquiring the property in 2023, current ownership has invested over $2.55 million in capital improvements, ensuring both durability and an enhanced resident experience. Upgrades include unit renovations and community enhancements, resulting in a premium product that continues to outperform market competitors. Avg rent ($940/unit) in 2024-2025 grew 6.86% in 2025-26 (to $1,005/unit). Over 50% of residents renewed at a higher price, showing strong demand for the subject property.

Morehead State University continues to support strong housing demand, with steady enrollment growth and limited purpose-built student housing supply in the market. This favorable dynamic positions new ownership to benefit from stable cash flow while capturing additional organic rent growth.

With a NOI of $962,004, the offering is priced at $12,535,000, reflecting a 7.67% cap rate and a projected 10%+ Year 1 cash-on-cash return. Professionally managed by a capable local team, the asset provides a true turnkey opportunity to acquire a top-tier student housing community in an undersupplied market, backed by a stable tenant base and proven operational success.

Morehead, Kentucky is a vibrant Appalachian community known for its natural beauty, strong sense of place, and growing economic opportunities. Nestled in the Daniel Boone National Forest and home to Cave Run Lake, the city offers year-round recreation, scenic landscapes, and a welcoming small-town atmosphere. Morehead is also home to Morehead State University, a leading regional institution that anchors the local economy and provides a steady stream of innovation, cultural events, and workforce development.
The community consistently ranks high in quality-of-life factors, with excellent healthcare, safe neighborhoods, and a strong emphasis on education and family living. Morehead’s central location along Interstate 64 makes it easily accessible to Lexington, Louisville, Huntington, and beyond, offering businesses the strategic advantage of regional connectivity paired with the quality of life that comes from a close-knit community. With a balance of natural amenities, an educated workforce, and a growing entrepreneurial spirit, Morehead is increasingly recognized as a desirable place to live, work, and invest.

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