The Vue 180
In June of 2021, CREC closed on the acquisition of The Vue 180. Built in 2013, The Vue 180 is a 93-unit Class-A multifamily apartment community located in Newport, KY. As the sole owner, CREC secured the property in an off-market transaction and at a price below appraised value, representing a 5.6% cap rate.
Constructed less than ten years ago with high-end amenities and finishes, the LEED-certified and tax-abated property can compete with recently built communities in the market without additional investment needed in unit interiors. Through the upfront capitalization, CREC set aside funds to refresh common areas including the clubhouse, fitness center, riverside patio/grill, bark park, interior corridors and added a new dog wash station and bike storage.
The Vue is located on the riverfront in an infill location in Newport KY, directly across the Ohio River from downtown Cincinnati. The property is situated with immediate access to interstates. The Ohio River Trail, a multi-use biking/walking/jogging trail spanning over 10 miles on both sides of the river is steps from the property. The Vue is in close proximity to downtown Cincinnati’s most popular sports and entertainment attractions and is walking distance to Newport on The Levee, a multi-level retail entertainment center, hosting over 4 million visitors per year.
Cincinnati, which is Ohio’s largest metro area and the nation’s 29th-largest, has an estimated metro population of 2.2 million. As of March 2021, Cincinnati’s unemployment rate of 4.2% was the lowest in the Midwest and 6th lowest nationally (U.S. 6.1%). Home to seven Fortune-500 companies, Cincinnati’s top employers represent a diverse group of financial, healthcare and consumer services firms.
At the time of acquisition, the property had been well maintained. However, performance lagged the market with operating costs well above market and revenue struggling to keep up with competing properties. CREC’s business plan involved value creation through the refresh of the common areas, active management of leasing performance and achievement of lower operating expenses. In the first year, CREC completed the bulk of the common area expenditures, achieved an average $100 rental premium on new leases, eliminated rental concessions and maintained over 95% occupancy, all combining to lead to a 35% increase in net operating income (NOI) since acquisition (as of September 30, 2022).
- Asset Location: Newport, KY (Cincinnati/Covington)
- 93-unit multifamily apartment community
- Investment Date: June 2021
- CREC Total Investment: $6.65 Million
- Investment Type: Multifamily acquisition
- JV Partner: None / CREC Real Estate Fund II L.P. Direct Ownership