Regency Offering Memorandum 2019 - LoopNet · METROPOLITAN LEXINGTON 3751 Appian Way, Lexington,...

REGENCY APARTMENTS

Lexington, KY

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lesseeidentified in this marketing package. The presence of any corporation's logo or name is not intended toindicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap,its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, andis solely included for the purpose of providing tenant lessee information about this listing to prospectivecustomers.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE ANDSHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources webelieve to be reliable, but we make no representations or warranties, express or implied, as to the accuracyof the information. References to square footage or age are approximate. Buyer must verify the informationand bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap RealEstate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

REGENCY APARTMENTSLexington, KYACT ID X0530042

REGENCY APARTMENTS

3

INVESTMENT

OVERVIEW

PROPERTY OVERVIEW

REGENCY APARTMENTS

PROPERTY OVERVIEW

95% Average Occupancy

Highly Desired Community- One of a Kind

Tenant Waiting List

1.4 Miles from University of Kentucky

Small Residential Pocket Surrounded by Busy Retail and Office

Beautiful Renovations with fantastic curb appeal

All Tenant Paid Utilities

Operational Upside Through Professional 3rd Party Management

4

Regency Apartments is an upscale, beautifully renovated 96 unit apartment community located just 4 minutes from the

University of Kentucky (UK). Regency is a quiet, clean, gated community and the only Apartment Complex on Regency Road.

This location is very highly desired by the medical community, and has a high income tenant base. The site is nestled into a

neighborhood of single family homes and small independent businesses. In addition to the UK Campus, Regency is also

walking distance to Hospitals, Groceries, Banks, Restaurants, and the Fayette Shopping Mall.

Regency has undergone extensive renovations; Four million was spent on asset improvements over the past 10 years.

Renovations were made to unit interiors, exteriors, complex amenities, parking and mechanicals. The owners son is a master

mechanics, and they put loving care into these units, far above typical owner operators.

Almost all units have washer dryer hookups and for those that don’t, a New On-Site Laundry Room was added. The huge

upside is bringing interiors up to match the exteriors and pushing rents accordingly.

NOT TYPICAL RENOVATIONS…

The current Regency owner has gone above and

beyond how a typical owner renovates a property.

Usually, an apartment community owner performs a

quick rehab and then sells. Regency ownership not

only has done an extensive rehab, but this rehab has

been performed in depth and is all-encompassing.

Owners don’t repair, they replace with gold standard

level upgrades. For example:

• An average owner replaces old flooring The

Regency owner tore up old flooring, took out the

spacers, re-screwed floorboards, installed

soundproofing and then replaced the flooring.

• An average owner fixes a faulty faucet and replaces

a sink The Regency owner also replaces the

entire plumbing stack and everything from pipes

upward.

• An average owner typically digs down to replace a

section of cast-iron sewer pipes to fix a leak The

Regency owner dug up the entire length of pipe

from building to property line and replaced it with

a brand-new line.

PROPERTY OVERVIEW

REGENCY APARTMENTS

6

The updates at Regency Apartments are dramatic. The

exterior updates include new siding and all new electric

panels. Most equipment is new: all the hot water tanks,

heaters, blowers and a/c units.

The front entrance has been entirely upgraded, with a

new sign, new landscaping, front gated fence and new

visitor parking. The assigned parking area has been

improved with new paving.

New covered porch entrances just completed

The 2 bedroom/2 bathroom units are spacious and

completely updated; all 12 have laundry hookups.

74 out of the 96 units have laundry hookups.

10 years, $4,000,000 in Renovations

Plumbing $250,000

Toilets $70,000

Hot Water Tanks & Shut-Off Valves $93,000

Kitchen & Bathroom Sinks & Faucets $150,000

Outlets & Lighting $200,000

Closet Doors $60,000

Interior Doors $100,000

AC Units $300,000

Subfloors $45,000

Washer & Dryer Install $244,000

Flooring $83,500

Carpet & Vinyl Flooring $116,000

Electrical Boxes Meters & Breakers $160,000

Additional Bathroom Install $100,000

Laundry Systems $110,000

Exterior Siding $135,000

Porches $64,000

Exterior Doors $16,000

Paving and Restriping $80,000

Roofs $250,000

Total $2,626,500

SOME OF THE REGENCY UPGRADES

Address 2075 Regency Rd

City/State/Zip Lexington, KY 40503

Property Type Garden-Style Apartments

Acreage 5.44

Number of Units 96

Year of Construction 1973

Occupancy 94.65%

Rentable Square Feet 81,888

Average Unit Size (SF) 850

Average Asking Rent Per

Unit$784

Average Asking Rent PSF $.92

Sales Terms Free and Clear

Offering Price $7,400,000

SITE DESCRIPTION

Eight (8) three-story, garden-style apartment buildings.

One (1) leasing office with maintenance shop and laundry.

Brick veneer exterior siding.

Mansard-style roofs.

Concrete foundation.

Wood frame construction.

Interior hallways.

o 8 Three-

story,

garden-

style

apartmentt

Double Pane Argon insulated windows

LOCAL MAP

REGENCY APARTMENTS

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AERIAL PHOTO

REGENCY APARTMENTS

10

11

Malibu

Jack’s

Regency Center

Fayette Mall

And more

Nearby Schools-An

Excellent School District

Glendover Elementary School

Morton Middle School

Montessori Middle School

Henry Clay High School

Lafayette High School

Lexington Catholic High School

SCAPA

REGENCY APARTMENTS

12

• Ceiling Fans

• Fully Equipped Kitchen

• Washers/Dryers in Most Units

• Window Blinds

• Porcelain in Bathrooms

• Wi-fi and Cable Ready

• Tile, Carpet and Vinyl Flooring

• Laminate Kitchen Counters

• Cast Iron Bathtubs with Tile Surround

• Hardwired Smoke Detectors with

Battery Backup

• Double Pane Insulated Windows

UNIT

AMENITIES

13

• Leasing Office

• Playground

• Covered Picnic Table and Grills

• Mail Kiosk Stations

• Gated Entry

• Laundry Facilities (6 Washers/6 Dryers)

COMMUNITY

AMENITIES

REGENCY APARTMENTS

17

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

REGENCY APARTMENTS

RENT ROLL SUMMARY

18

FINANCIAL ANALYSIS

REGENCY APARTMENTS

19

RENT ROLL DETAIL

FINANCIAL ANALYSIS

REGENCY APARTMENTS

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RENT ROLL DETAIL

FINANCIAL ANALYSIS

REGENCY APARTMENTS

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RENT ROLL DETAIL

FINANCIAL ANALYSIS

REGENCY APARTMENTS

OPERATING STATEMENT

22

FINANCIAL ANALYSIS

REGENCY APARTMENTS

PRICING DETAIL

23

REGENCY APARTMENTS

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MARKET

COMPARABLES

8

REGENCY APARTMENTS

RENT COMPARABLES MAP

REGENCY APARTMENTS(SUBJECT)

University Village

Shillito Park

Chinoe Creek

Metropolitan Lexington

The Mansion

Forest Creek

Spring House Apartments

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

1

2

3

5

6

25

PROPERTY NAMEREGENCY APARTMENTS

RENT COMPARABLES

26

AVERAGE OCCUPANCY

Avg. 93.71%

0

10

20

30

40

50

60

70

80

90

100

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek

MetropolitanLexington

The Mansion ForestCreek

SpringHouse

Apartments


RENT COMPARABLES

27

AVERAGE RENT - MULTIFAMILY

Avg. $1,021

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

3 Bedroom

Avg. $778

$0

$90

$180

$270

$360

$450

$540

$630

$720

$810

$900

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

1 Bedroom

Avg. $894

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

2 Bedroom


RENT COMPARABLES

28

AVERAGE RENT/SF BY UNIT

Avg. $.69

$0.00

$0.09

$0.18

$0.27

$0.36

$0.46

$0.55

$0.64

$0.73

$0.82

$0.91

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

3 Bedroom

Avg. $1.04

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

1 Bedroom

Avg. $.88

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

RegencyApartments

UniversityVillage

ShillitoPark

ChinoeCreek



SpringHouse

Apartments

2 Bedroom

PROPERTY NAME

MARKETING TEAM

REGENCY APARTMENTS

RENT COMPARABLES

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


29

YEAR BUILT: 1973

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

2 Bdr 49 777 $788 $1.01

3 Bdr 47 926 $774 $0.84

Total/Avg. 96 850 $781 $0.92

REGENCY APARTMENTS2075 Regency Rd, Lexington, KY, 40503

OCCUPANCY: 96% | YEAR BUILT: 1998

1

NOTES

Air Conditioning, Balcony, Business Center, Cable Ready, Dishwasher, Fitness Center, Heating, High Speed Internet Access, Kitchen, Microwave, Patio, Pool, Tanning Salon, Walk-In Closets, Washer/Dryer, Wheelchair Accessible (Rooms) Concessions: 0.3 Amenities: Air Conditioning, Balcony, Business Center, Cable Ready, Dishwasher, Fitness Center, Heating, High Speed Internet Access, Kitchen, Microwave, Patio, Pool, Tanning Salon, Walk-In Closets, Washer/Dryer, Wheelchair Accessible (Rooms)


1 Bdr 1 Bath 98 850 $825 $0.97

2 Bdr 2 Bath 107 1,100 $1,090 $0.99

Total/Avg. 205 980 $963 $0.98

UNIVERSITY VILLAGE201-203 Simpson Ave, Lexington, KY, 40504

2


NOTES

Air Conditioning, Balcony, Cable Ready, Ceiling Fans, Clubhouse, Dishwasher, Disposal, Fireplace, Fitness Center, Gameroom, Heating, High Speed Internet Access, Laundry Facilities, Microwave, Oven, Patio, Pet Play Area, Picnic Area, Playground ... Concessions: 3.3 Amenities: Air Conditioning, Balcony, Cable Ready, Ceiling Fans, Clubhouse, Dishwasher, Disposal, Fireplace, Fitness Center, Gameroom, Heating, High Speed Internet Access, Laundry Facilities, Microwave, Oven, Patio, Pet Play Area, Picnic Area, Playground ...


1 Bdr 1 Bath 96 800 $789 $0.99

2 Bdr 2 Bath 120 1,125 $927 $0.82

Total/Avg. 216 981 $866 $0.88

SHILLITO PARK3500 Beaver Place Rd, Lexington, KY, 40503

PROPERTY NAME

MARKETING TEAM

REGENCY APARTMENTS

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


30


3


1 Bdr 1 Bath 180 759 $750 $0.99

2 Bdr 2 Bath 176 930 $855 $0.92

Total/Avg. 356 844 $802 $0.95

CHINOE CREEK3522 Creekwood Dr, Lexington, KY, 40502


4


1 Bdr 1 Bath 144 708 $809 $1.14

2 Bdr 2 Bath 186 963 $881 $0.91

Total/Avg. 330 852 $850 $1.00

METROPOLITAN LEXINGTON3751 Appian Way, Lexington, KY, 40517

5



1 Bdr 1 Bath 112 616 $808 $1.31

2 Bdr 2 Bath 72 968 $861 $0.89

Total/Avg. 184 754 $829 $1.10

THE MANSION3820 Nicholasville Rd, Lexington, KY, 40503

PROPERTY NAME

MARKETING TEAM

REGENCY APARTMENTS

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31


6


1 Bdr 1 Bath 30 760 $660 $0.87

2 Bdr 2 Bath 110 975 $749 $0.77

3 Bdr 2.5 Bath 10 1,475 $1,021 $0.69

Total/Avg. 150 965 $749 $0.78

FOREST CREEK1176 Appian Crossing Way, Lexington, KY, 40517


7


1 Bdr 1 Bath 102 797 $808 $1.01

2 Bdr 2 Bath 128 1,013 $898 $0.89

Total/Avg. 230 917 $858 $0.94

SPRING HOUSE APARTMENTS2851 Belleau Wood, Lexington, KY, 40517

LEXINGTON

OVERVIEW

BOURBON COURT & DERBY POINTE

Known as the “Horse Capital of the World”for its famous Keeneland Racing Park and beautiful

Thoroughbred Farms, Lexington nestles in the heart

of the Bluegrass State. The metropolitan population

is over 500,000 and is the second largest city in

Kentucky.

Lexington not only offers the country’s most

beautiful horse farms but also family fun attractions,

historic sites and famous brewery trails.

Blue Stallion Brewing Co.

Keeneland Race Track

The “Brewgrass Trail” showcases the city of

Lexington’s history of brewing and distilling. There are

many breweries in the city and surrounding area to

tour that make up the “Brewgrass Trail”.

LEXINGTON, KENTUCKY

• Keeneland Racetrack

• Henry Clay and Mary Todd Lincoln

Historic Homes

• Famous Distilleries (Four Roses,

Buffalo Trace and more)

• University of Kentucky

• American Saddlebred Museum

• And much more!

AREA OVERVIEW

LEXINGTON, KENTUCKY

The city is home to several universities, including

the state’s largest, the University of Kentucky. UK

boasts over 200 academic programs as well as one

of the largest college libraries in the United States.

Their College Basketball team is historically one of

the best in the nation and brings in millions of

dollars of revenue for the school each year.

Rupp Arena

Employer #Employees Sector

University of Kentucky 14,000+ Education

Toyota Motor 8,200 Manufacturing

Fayette County Public Schools 7,900 Education

Conduent 3,100 Outsourcing

LFUCG Government 2,837 Government

Eastern KY University 1,565 Education

Lexmark International Inc 2,200 World HQ

Wal-Mart 2,027 Retail

Kentucky One Health 1,757 Healthcare

MAJOR EMPLOYERS

PROPERTY NAME

MARKETING TEAM

REGENCY APARTMENTS

DEMOGRAPHICS

Source: © 2018 Experian

Created on June 2019

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 10,003 129,754 256,032

2018 Estimate


2010 Census


2000 Census


Daytime Population

2018 Estimate 14,259 194,189 310,436

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 4,726 57,056 109,485

2018 Estimate


Average (Mean) Household Size 2.17 2.17 2.25

2010 Census


2000 Census


Growth 2015-2020 1.92% 3.97% 4.78%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2023 Projection 4,726 57,056 109,485

2018 Estimate 4,843 58,510 111,338

Owner Occupied 3,157 26,653 53,105

Renter Occupied 1,480 28,225 51,386

Vacant 207 3,632 6,847

Persons In Units

2018 Estimate Total Occupied Units 4,637 54,878 104,491

1 Person Units 34.89% 36.94% 34.83%

2 Person Units 35.58% 33.36% 33.10%

3 Person Units 14.19% 14.02% 14.67%

4 Person Units 9.98% 10.26% 10.95%

5 Person Units 3.82% 3.73% 4.29%

6+ Person Units 1.53% 1.69% 2.16%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$200,000 or More 3.72% 5.09% 4.70%

$150,000 - $199,000 3.98% 4.44% 4.29%

$100,000 - $149,000 10.99% 11.78% 11.81%

$75,000 - $99,999 15.47% 11.21% 11.34%

$50,000 - $74,999 21.83% 16.74% 17.68%

$35,000 - $49,999 13.38% 12.79% 12.95%

$25,000 - $34,999 10.30% 10.06% 10.34%

$15,000 - $24,999 9.13% 11.47% 11.50%

Under $15,000 11.19% 16.45% 15.37%

Average Household Income $73,759 $74,626 $73,516

Median Household Income $56,362 $48,967 $49,773

Per Capita Income $34,509 $33,134 $31,607

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 9,914 125,975 246,373

Under 20 20.12% 23.64% 24.40%

20 to 34 Years 23.81% 30.69% 27.51%

35 to 39 Years 6.35% 5.61% 6.28%

40 to 49 Years 11.51% 10.20% 11.52%

50 to 64 Years 20.93% 16.17% 17.77%

Age 65+ 17.28% 13.69% 12.54%

Median Age 39.77 31.53 33.59

Population 25+ by Education Level

2018 Estimate Population Age 25+ 7,008 76,139 156,529

Elementary (0-8) 2.19% 2.72% 3.45%

Some High School (9-11) 3.73% 4.19% 5.99%

High School Graduate (12) 18.95% 17.84% 20.54%

Some College (13-15) 19.10% 20.79% 20.43%

Associate Degree Only 7.02% 6.90% 7.49%

Bachelors Degree Only 26.56% 24.62% 22.78%

Graduate Degree 22.15% 22.31% 18.54%

Population by Gender

2018 Estimate Total Population 9,914 125,975 246,373

Male Population 48.85% 48.75% 48.75%

Female Population 51.15% 51.25% 51.25%

35

Income

In 2018, the median household income for your selected geography is$56,362, compare this to the US average which is currently $58,754.The median household income for your area has changed by 31.00%since 2000. It is estimated that the median household income in yourarea will be $65,055 five years from now, which represents a changeof 15.42% from the current year.

The current year per capita income in your area is $34,509, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $73,759, compare this to the USaverage which is $84,609.

Population

In 2018, the population in your selected geography is 9,914. Thepopulation has changed by 1.39% since 2000. It is estimated that thepopulation in your area will be 10,003.00 five years from now, whichrepresents a change of 0.90% from the current year. The currentpopulation is 48.85% male and 51.15% female. The median age of thepopulation in your area is 39.77, compare this to the US averagewhich is 37.95. The population density in your area is 3,152.50 peopleper square mile.

Households

There are currently 4,637 households in your selected geography. Thenumber of households has changed by 2.11% since 2000. It isestimated that the number of households in your area will be 4,726five years from now, which represents a change of 1.92% from thecurrent year. The average household size in your area is 2.17persons.

Employment

In 2018, there are 11,626 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that70.46% of employees are employed in white-collar occupations in thisgeography, and 29.65% are employed in blue-collar occupations. In2018, unemployment in this area is 1.91%. In 2000, the average timetraveled to work was 20.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:90.97% White, 2.31% Black, 0.03% Native American and 1.69%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 5.62% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

PROPERTY NAME

MARKETING TEAM

REGENCY APARTMENTS

Housing

The median housing value in your area was $161,503 in 2018,compare this to the US average of $201,842. In 2000, there were3,343 owner occupied housing units in your area and there were 1,198renter occupied housing units in your area. The median rent at thetime was $475.

Source: © 2018 Experian

DEMOGRAPHICS

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REGENCY APARTMENTS

DEMOGRAPHICS

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www.MarcusMillichap.com

Aaron JohnsonFirst Vice President InvestmentsDirector - National Multi Housing GroupLouisville OfficeTel: (502) 329-5920Fax: (502) [email protected]: KY 204560

P R E S E N T E D B Y

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