Another day, another big off-market transaction in Louisville’s wild and wacky world of multi-family real estate.
Elmington Capital Group, , a commercial real estate investment and development firm headquartered in Nashville, Tennessee, has acquired Post Oak Apartments here. The complex was owned by Post Oak Joint Venture LLC, according to the Jefferson County Property Valuation Administrator website.
There was no transaction amount revealed in the news release, but the PVA valuation for the 4.4 acre site with 126 units is $8.25 million, or $65,500 per door, typical for Class B in the Midwest.
Rents range from $700 to $1,000 per month, according to the Post Oak website.
That transaction amount could be substantially higher since Post Oak is in the hot East Louisville housing markets, and has units ranging in size from 750 square feet to 1,300 square feet, according to the release. The complex is on New La Grange Road in the Lyndon sub-market, very close to Oxmoor Center and Mall St. Matthews, with access to both Interstate-64 and Interstate-71 via the Watterson Expressway.
The property has had historically strong occupancies and amenities such as a swimming pool, grilling area, and on-site laundry facility.
This is Elmington Capital’s second deal in Louisville this year. In April, investment firm/developer acquired The Hampton Place Apartments in the West End near Central High School for an undisclosed sum. Elmington Capital purchased the 21-year-old complex from Cohen-Esrey, based in Overland Park, Kansas.
The complex includes three square blocks running from 15th Street on the east to 17th on the west, bounded by Muhammad Ali Boulevard on the north, and West Chestnut Street on the South. (The actual address is 1549 W. Madison St.)
Post Oak was purchased in a partnership with Enterprise Community Investment, a financing firm based in Columbia, Md. Debt financing was provided through Scott Brady and K.O. Kennedy of CBRE Capital Markets, based in Nashville.
Kurt Shoemaker, who operates out of Cassidy Turley’s Cincinnati office, facilitated the off market transaction to Elmington. “Louisville provides investors opportunity to invest in extremely stable properties with an above average yield,” Shoemaker stated in the release. ” The key is to bring the right buyers to facilitate a timely and efficient closing.”
This is the first partnership between Elmington and Enterprise.
The release states parties expect to acquire additional properties together in the near future. “The conventional equity provided by Enterprise Community Investment will enable us to improve and preserve the 126 apartment in a growing area of Louisville,” said Chris Herrmann, senior director at Enterprise Community Investment. “We’re pleased to make our first investment with Elmington Capital Group in support of our shared mission of providing housing connected to jobs, transit, good schools and health care.”
Ben Brewer, SVP for Elmington Capital stated his firm is looking forward to providing a high-quality place to live at an affordable price in one of Louisville’s most desirable and convenient neighborhoods. “Our Louisville portfolio continues to outperform our other markets and we are focused on growing our portfolio in Louisville,” Brewer added.
In April, Brewer said he anticipated Elmington Capital having a 1,000-unit Louisville portfolio. At this point, in addition to Post Oak, Elmington Capital owns 872 units in Louisville. Their Louisville Class-B portfolio includes Fountain Square, Green Meadows, Hikes Lane, Liverpool 1 & 2, and Hampton Place Apartments.
Post Oak will be managed by Elmington Property Management, which currently manages more than 1 million square feet of commercial property, and over 6,000 apartment homes. Elmington Property manages property in nine states throughout the southeast and mid-west.
About Elmington Capital: Elmington Capital is an investment firm focused on commercial real estate opportunities that provide income return and capital appreciation through a diverse array of strategic initiatives. Elmington primarily acquires retail, office, industrial and multi-family properties in which we identify the opportunity to add value through development, re-positioning, more effective operations or creative capitalization.
The principals of Elmington have extensive experience in the investment, development, financing, and management of commercial properties. As president, Cary Rosenblum provides leadership to Elmington Capital.
Ab0ut Enterprise Community Investment: In response to a nationwide trend of apartment buildings being converted to higher market rates or falling into a state of disrepair, Enterprise Community Investment (Enterprise) created a conventional equity product to finance the acquisition and preservation of existing affordable and workforce rental housing communities by responsible operators.
Typically, the conventional equity is used to acquire affordable or unrestricted apartment communities. The majority of acquisition costs are financed by conventional debt, with the conventional equity product providing 80 to 90 percent of the resulting equity gap.