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TRANSCRIPT
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
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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
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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
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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
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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
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• 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
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15
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REGENCY APARTMENTS
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
REGENCY APARTMENTS
RENT ROLL SUMMARY
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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
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RENT ROLL DETAIL
FINANCIAL ANALYSIS
REGENCY APARTMENTS
OPERATING STATEMENT
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FINANCIAL ANALYSIS
REGENCY APARTMENTS
PRICING DETAIL
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REGENCY APARTMENTS
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MARKET
COMPARABLES
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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
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PROPERTY NAMEREGENCY APARTMENTS
RENT COMPARABLES
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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
PROPERTY NAMEREGENCY APARTMENTS
RENT COMPARABLES
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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
MetropolitanLexington
The Mansion ForestCreek
SpringHouse
Apartments
3 Bedroom
Avg. $778
$0
$90
$180
$270
$360
$450
$540
$630
$720
$810
$900
RegencyApartments
UniversityVillage
ShillitoPark
ChinoeCreek
MetropolitanLexington
The Mansion ForestCreek
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
MetropolitanLexington
The Mansion ForestCreek
SpringHouse
Apartments
2 Bedroom
PROPERTY NAMEREGENCY APARTMENTS
RENT COMPARABLES
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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
MetropolitanLexington
The Mansion ForestCreek
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
MetropolitanLexington
The Mansion ForestCreek
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
MetropolitanLexington
The Mansion ForestCreek
SpringHouse
Apartments
2 Bedroom
PROPERTY NAME
MARKETING TEAM
REGENCY APARTMENTS
RENT COMPARABLES
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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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
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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)
Unit Type Units SF Rent Rent/SF
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
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OCCUPANCY: 92% | YEAR BUILT: 1991
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 ...
Unit Type Units SF Rent Rent/SF
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
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 94% | YEAR BUILT: 1985
3
Unit Type Units SF Rent Rent/SF
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
OCCUPANCY: 94% | YEAR BUILT: 1985
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Unit Type Units SF Rent Rent/SF
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
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OCCUPANCY: 90% | YEAR BUILT: 1989
Unit Type Units SF Rent Rent/SF
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
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
rentpropertyaddress1
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OCCUPANCY: 90% | YEAR BUILT: 2000
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Unit Type Units SF Rent Rent/SF
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
OCCUPANCY: 100% | YEAR BUILT: 1986
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Unit Type Units SF Rent Rent/SF
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
Total Population 9,914 125,975 246,373
2010 Census
Total Population 9,573 118,509 229,770
2000 Census
Total Population 9,778 111,635 216,487
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
Total Households 4,637 54,878 104,491
Average (Mean) Household Size 2.17 2.17 2.25
2010 Census
Total Households 4,459 51,522 97,398
2000 Census
Total Households 4,541 48,311 91,382
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%
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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
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