Louisville Multifamily w/Upside

Highlights:

• 3 minutes to downtown
• Much more expensive buildings close-by
• This property is at the very edge of rehabbed area, part of SOBRO district
• 100% Concrete Structure = very low maintenance cost
• Washer dryer hookups added to most units

Description:

College Court is at the leading edge of “about-to-gentrify” change, part of the SOBRO (South of Broadway) area,. The attached map indicates where that change has already occurred. Dramatically increased rent rates and values are inevitable. The property lies between two private colleges, and in very close proximity to “Old Louisville” which itself has experienced a steady increase in property values.

College Court is comprised of 100 condominiums. Seller, recognizing the value-add potential of these condos first targeted them for acquisition in 2007 and has purchased them, one by one, since then. He now owns 46 units, which gives him effective control of the HOA.

Seller is an engineer, and this development was specifically chosen because of its solid construction. The exteriors are all brick. The floors are all concrete. The exterior walls are plastered on the inside, the interior walls are lath and plaster. Most buildings have a large concrete basement. The owners/tenants do not have access to the basements. The water is common and paid by the condo association. All other utilities are separately metered. There are conventional individual forced air HVAC systems; the heat portion is via a hot water system. This system is very inexpensive to run, robust and efficient.

Bottom line – these are very sturdy "tenant-proof" structures. They can easily be remodeled into upscale residences.

This community is potentially very esthetically pleasing. The layout and structure were designed to mimic the “cottage” appeal of the housing in Limerick, Ireland. In fact, it is in the Limerick neighborhood because most of the original residents were from the Irish county of Limerick. There is nothing over two stories, all units have individual porches, and there is definitely an air of shared community. The condo association has replaced several roofs, and is on schedule to replace all of them.

Most the units were purchased in very poor condition and have had extensive, durable renovations. Additionally, the condo association, which Seller controls, has also been consistently making capital improvements to the property.

In most cases the following renovation was done:
o All flooring removed and completely replaced with ceramic tile (most units) or vinyl planking (a few units).
o HVACs completely repaired, replaced or renovated. Seller has an extensive inventory of heaters (water systems) specific to these units.
o Water heaters replaced as required.
o Kitchens rebuilt with cabinetry and appliances.
o Washer dryer hookups added to most units.
o Windows repaired or replaced as required.
o Repair all walls – plaster and lath, repaint with quality semi-gloss high durability paint.
o Bathrooms have been re-tiled as necessary, and are fully functional.

Now that those renovations have been mostly completed the units are in good working condition.
Four units still require renovation.

Documents: