Columns on Wetherington

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PROPERTY TYPE:MULTIFAMILY
LOCATION:FLORENCE, KY
SIZE:192 UNITS
YEAR PURCHASED:2011
ASSIGNMENT TYPE:NEW ACQUISITION PROPERTY MANAGEMENT
ASSIGNMENT LENGTH:2011 – CURRENT

THE OPPORTUNITY:

Columns on Wetherington presented an opportunity to acquire an established AClass community in the greater Cincinnati Metropolitan area at a significantdiscount to replacement cost. The luxury apartment community features elegant architectural design, spacious floor plans,192 well-appointed apartment homes, and resort-styleamenities within minutes of Downtown Cincinnati, theCincinnati-Northern Kentucky International Airport and anabundance of shopping, fine dining and entertainmentvenues. The property is located within a well-established residential neighborhood with access to playgrounds, fishing ponds and miles of walking paths. The apartment homes offer a luxury condo feel with private entries and direct access garages. The community offers a full range of lifestyle amenities including a clubhouse, fitness center, resort-style swimming pool, basketball court, putting green andcar care center

THE APPROACH:

Ackermann Group’s strategy is to capitalize on improving market conditions to capture desirable annual cash returns. Columns on Wetherington was acquired well below replacement value. Located in one of Cincinnati’s fastest growing neighborhoods, the submarket presents strong household income and employment to support the growth forecasts. By implementing Ackermann Group’s standards and practices, operational systems are more efficient and curb appeal is at its peak.Sales and resident retention improved, providing a consistent cash flow. The average unit rental rate was $995 per month or $0.77 per square foot at the time of purchase. Based on Ackermann Group’s in depth market analysis, this was below comparable properties in this market creating opportunities for immediate rent growth. In addition, the growing population and businesses in the area, would allow for sustainable and consistent revenue for a mid-term hold.

THE ADDED VALUE:

Columns on Wetherington, LLC paid investors a14.2% and 13.7% cash-on-cash return in 2012 and 2013. The curb appeal improvements and operational advancements implemented in the first 6 monthsallowed management to increase rent while continuing to capturesignificant operating costs through utility reimbursements. In the first 12 months of ownership Ackermann Group improved Net Rental Income (net of: Bad Debt, Vacancy and Non-Revenue units) 6.5% and Net Operating Income 10.0%. The increase in NOI along with declining cap rates in the current market has resulted in a 36.5% increase in value.