In 2016, CREC partnered with an accomplished developer on the development of The Promenade at Oakley Station, a 150-unit Class A multifamily apartment community. Located in the Cincinnati suburb of Oakley, the location offers an abundance of restaurants, shopping and entertainment options that are steps away from the apartment community. The superior amenity package includes interior finishes such as quartz countertops, stainless steel appliances, luxury flooring and 9’ ceilings. Exterior amenities include an outdoor saltwater swimming pool, dog park, bike storage room, package storage room with 24-hour retrieval and a state-of-the-art fitness center with spinning and yoga rooms.
Construction on the project began in May of 2016, and remained on schedule and in-line with the initial budget, with construction completed in July 2017. Pre-leasing was strong upon commencement of the leasing initiatives in February 2017. The first building was completed in May 2017, which allowed the first residents to move in and further increased interest among prospective renters. Leasing velocity exceeded expectations, which enabled the property to secure a 3.93% fixed-rate loan with a 7-year term. With the refinance, investors received 94% of their original capital investment, a catch-up of the 8.0% preferred return (the contractual investor distribution preference) plus an excess distribution of 17%. The total investor distributions over the first three-years of ownership equaled 130% of investors’ original capital investment.
- Asset Location: Oakley, Ohio (Cincinnati, Ohio)
- 150-unit, Class A multifamily apartment community
- Investment Date: April 2016
- CREC Total Investment: $4.2 Million
- Investment Type: Ground Up Development
- JV Partner: Flaherty & Collins