Ackermann Group, a commercial and residential real estate company, sold a Northern Kentucky apartment community for $25 million.
Columns of Wetherington, a 192-unit apartment community in Florence, was sold by Ackermann Group to California-based Steadfast Apartment REIT at the end of February.
Dobbs Ackermann, CEO of Norwood-based Ackermann Group, said it was unusual for his company to sell the property, but increased interest in multifamily properties prompted the sale.
"We typically like to hold properties," Ackermann said.
Because the apartment market has heated up, Ackermann Group has looked at selling a few of its properties.
Ackermann said the sale price is likely a new record for Northern Kentucky. The apartments sold for a little more than $130,000 per unit. Last year, Independence Oaks Apartments, a 144-unit apartment complex in Independence, sold for $13.8 million. That represented the highest price per unit recorded for a suburban Cincinnati multifamily commercial real estate property sale in 2014, at just under $95,500 per unit, according to commercial real estate firm Marcus & Millichap.
"It's a unique product with big, condo-style apartments," Ackermann said. "That helped to have and retain its value."
Columns on Wetherington is located at 1620 Corinthian Drive, about 20 miles south of downtown Cincinnati. The development was built in 2002 on about 17 acres. Columns on Wetherington includes 21 apartment buildings and 11 single-story garage buildings.
The apartments include two- and three-bedroom floorplans, and average a little more than 1,200 square feet. Each apartment has 9-foot ceilings, private entryways, balconies or patios, built-in computer alcoves and bookcases, and most units have attached garages. The average rents are $1,023 per month, and occupancy was about 93 percent at the beginning of February.
Amenities at Columns of Wetherington include a clubhouse, fitness center, swimming pool, business center, outdoor basketball court, playground, putting green, car care center and access to a stocked fishing lake with a community deck.
Steadfast Apartment REIT plans to invest in the property, installing new kitchen countertops, kitchen and bathroom fixtures, ceiling fan and lighting upgrades, as well as new stainless steel appliances. These upgrades will be made when turning the units between residents.
In addition, common areas will be improved, including new signage, clubhouse upgrade, asphalt and concrete repairs, and new pool furniture.
Debbie Corson and George Skagg with Apartment Realty Advisors represented Ackermann Group in the deal.
Irvine, Calif.-based Steadfast Apartment REIT is sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Cos., an Orange County, Calif.-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico. Steadfast owns and/or operates a diverse portfolio valued at approximately $2.5 billion and comprising more than 125 properties.