Investment Highlights

Location: Fairfield, OH
No. of Buildings: 10
No. of Units: 229

Date Acquired: November 15, 2021
Purchase Price: $22.5M

• Outstanding market traction on rent increases

• Proven submarket demand for value-add program

• Major cap-ex previously invested in mechanical systems allowing us to focus on revenue-producing enhancements

• Well-amenitized property with strong position among competitors

Closer Look

Prior to our acquisition, Pinnacle on Pleasant was well-maintained and had received a down-to-the-studs remodel in 2013. Even so, their rents are underperforming when compared to competitors in the surrounding submarket. In the two months prior to our takeover, the seller had been achieving, on average, 10% rent bumps without any recent unit renovations proving out a clear path to our value-add model.

The current achieved rates are just $59 shy of our pro forma rates indicating a very likely chance that we'll be rewarded beyond our underwriting expectations. Additionally, the property is made up predominantly 2-bedroom units (71%) which is the most sought-after unit type in the workforce market. Lastly, the property is located in Fairfield, a Cincinnati suburb, and benefits from that strong economic engine. Despite this fact, it technically falls outside the city proper and avoids the 1.8% Cincinnati income tax.