According to the Third Quarter 2013 Multifamily Market report, released today by Cassidy Turley’s Cincinnati Office, the Cincinnati region had 2,026 multifamily units purchased in the third quarter of 2013 for $39 million in total sales volume. Total units sold were down from 2,480 and total sales volume was down approximately $28 million from the second quarter. The average sale price per unit was $18,980, which is approximately $8,000 per unit lower than in Q2.
Even though sales were down, the multifamily market continues to be the hottest commercial real estate market in Cincinnati. 469 total units were absorbed in the third quarter bringing the total for the year to 822. The overall market vacancy rate is down to 3.5%. The very low vacancy rate combined with high demand for units should bring additional apartment development.
Asking rents of apartments also rose over 0.5% quarter to quarter bringing the total average to $754. On the year they have rose 1.89%.
Cincinnati’s West sub-market was the strongest market in terms of total sales volume with $14 million or $15,851 per unit as 864 total units were transacted. The West also saw the top three sales transactions, in terms of price:
• The 78-Unit Ashley Commons Student Housing complex was purchased by 201 East Chestnut LLC for $3.09 million ($39,615/Unit)
• The 156-Unit Four Towers Apartments were acquired by KAAPS 2982 LLC for $2.66 million ($17,051/Unit)
• The 60-Unit Machine Flats were bought by Machine Flats LLC for $2.58 million ($43,000 per unit)
Two other notable multifamily transactions that occurred in the Cincinnati market during the third quarter of 2013 include:
• The 66-Unit Habour Cove apartments were purchased for $2.4 million by Premier Habour Cove ($36,364/Unit)
• The 60-Unit Timbercreek Apartments, which were bought for $2.4 million by Timbercreek Apartments LP($40,000/Unit)
Finally, as I noted in a previous article, the Downtown sub-market continues to be a hotbed of multifamily development. The third quarter of 2013 had three more downtown redevelopment projects announced. They were:
• The Dennison Hotel Apartments, a 60-unit low-income extended stay living complex, was purchased by Ironworks Apartments LLC for $1.3 million. The company will provide much needed renovations to the building.
• An entire block of Broadway Street near the Horseshoe Casino will be redeveloped into Broadway Square, a $26 million residential and retail complex. It will bring a total of 78 new apartments to the Pendleton neighborhood downtown.
• Peak Property Group bought three buildings (106, 22, and 24-26 West Seventh Street) and will retrofit them into a total of 75 apartments.
To read the rest of the report click here