The Kensington Louisville, KY

Investment Highlights

• Over $2.3M Invested in Strategic Renovations
• Attractive Loan Assumption Opportunity | 5.37% Rate
• Nearly 100% Occupied with Strong Operations
• 100% Renovated Asset with $116+ Per Unit of Organic Upside
• Attractive Unit Mix
• Solid Market Fundamentals with Anticipated Growth

Over $2.3M Invested in Strategic Renovations

The Kensington was completely renovated in 2022. Current ownership has invested over $2.3M in updating the property from top to bottom. Paint, concrete patios, privacy panels, interior hallways, doors, gutters, lighting, apartment interiors, clubhouse, gym and leasing office have all been updated. Amenity upgrades include a new leasing office, brand new playground with benches and picnic tables, a gazebo and picnic table area, and a laundry room.

Each unit has received high-quality upgrades. These include granite countertops, stainless steel appliances, new shaker cabinets, LVP flooring, new interior doors, modern light fixtures including can lights in each living room, high-end low-flow faucets and full kitchens including microwaves. Most units also feature washer and dryer hookups.

Attractive Loan Assumption Opportunity | 5.37% Rate

The in-place debt ($11,445,000 originated in May 2023) presents a highly attractive financing opportunity in today’s marketplace. With an appealing 5.37% interest rate, this loan offers significant advantages, including several years of interest-only payments. The solid Loan-to-Value (LTV) ratio enhances financial security, coupled with the assurance of below-market rates. The first principal and interest (P&I) payment is scheduled for July 2026. The loan’s maturity in June 2028 provides a manageable timeline, making this debt an appealing and secure choice for financing needs.

100% Renovated Asset with $116+ Per Unit of Organic Upside

The current effective rent of $1,135 can easily be increased to $1,251 by capturing the 5.48% loss to lease and moving rents by $50/unit/month to be conservatively in-line with the competitive set.

While the asset has arguably the most desirable units in the Parkwood Submarket, the rents still trend below similar vintage comps in the immediate area. For example, Indigo at the Park, just two miles down the road, has inferior renovations and higher rents. Additionally, there are several superior comps in the submarket that are well above the proposed rents!

Due to the consistently achieved market rents that prove out the loss to lease capture, and clear data in the submarket that proves out additional rent upside, Kensington Apartments offers pent-up organic upside of over $116/unit per month that requires ZERO additional capital!

While 100% of the units have been renovated, there are 6 units (4%) that received all of the high-end upgrades except brand new flooring and paint. Those units are 6215-1, 6209-1, 6106-2, 6210-1, 6207-1, and 6201-2.

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