F A L L 2 0 1 7

MARKET 

STUDY

SILVESTRI REAL ESTATE

444 EAST MAIN ST STE 102

LEXINGTON, KY 40507

859-263-2300 - WWW.KENSILVESTRI.COM

MULTIFAMILY REPORT

Table of Contents

COMPANY INFO

OUR TEAM

ABOUT LEXINGTON, KENTUCKY

MARKET DATA

PROPERTIES SURVEYED

RENTAL METRICS

REDEVELOPMENT TRENDS

NEW DEVELOPMENT SPOTLIGHT

SUMMARY

Silvestri Real Estate

Silvestri Real Estate is the leading apartment brokerage company in

the Central KY Market having sold 3X more properties than our

nearest competitor.* Our team has brokered over 2400 apartment

units in the past 22 months.

Silvestri Real Estate also has a proprietary database of the leading

KY focused investors. This database is used to ensure our clients

receive not only a targeted approach when both acquiring and

disposing assets.

Silvestri Real Estate has brokered some of the most well known

properties in Lexington: Cedar Run, The Creeks on Tates Creek,

Tarleton Crossings, The Meadows, Fairways and Pimlico

Apartments, Fayette Crossing, Turfland 1 & 2 (now The Vue

Lexington) and The Retreat at Hamburg, just to name a few.

Silvestri Real Estate Corporate Office

444 East Main Street

Suite 102

Lexington, KY 40507

859-263-2300 *According to CoStar based on the number of transactions brokered over the past 3 years.

Lexington, KY

Lexington, KY, known as the "Horse Capital

of the world," is located in the heart of the

Bluegrass Region. Lexington is home of the

headquarters of major companies such as:

Alltech, Big Ass Solutions, Tempur-pedic, and

Valvoline. Amazon, IBM and Xerox also have

large operations in the area. Combine the

major corporate impact with a highly

educated population(40% of Lexington's

population holds a bachelor's degree or

higher*) and you have a recipe for long

lasting sustainability. The University of

Kentucky is located near downtown Lexington

and is home to just over 30,000

undergraduate and graduate students. This

youthful population continues to reinforce the

growth of Lexington, KY.

Lexington, KY

-Associate of Chamber of

Commerce Executives - 2016

- Business Facilities

-Associate of Chamber of

Commerce Executives - 2016

-Wallethub - 2017

- USA Today

#5 Best Run City #31 Most livable

US City

#1 Chamber of

the year

#5 Best Cost of

doing business

#7 Best City for

new grads

Our Team

Ken Silvestri As the Owner and Principal Broker of Silvestri Real Estate Ken is the marketing and sales specialist. Mr. Silvestri has been in real

estate business for over 27 years and is one of the leading POWERBROKERS* in the central Kentucky multi-housing market. As an

active member of the Greater Lexington Apartment Association, Ken has been a keynote speaker on ‘The State of The Apartment

Market’. Ken is a native of Lexington with a deep network of relationships. He achieved the Eagle Scout designation in 1976 and has

built the company’s reputation on trustworthy results. Ken can be reached at 859-263-2300 or Ken@KenSilvestri.com

Brandon Cutwright Brandon is the Vice President of Investments Sales for the Silvestri Apartment Group and is a specialist of real estate analytics and

operations. Brandon has been involved in the successful closing of over 2,700 units during his 2 years with Silvestri Real Estate. Prior

to joining Silvestri Real Estate, Brandon spent 5 years in the Property Management business working for both public (MAA - Top 3

REIT) and private companies (PRG Real Estate) prior to joining Silvestri Real Estate. Brandon is a licensed Certified Apartment

Manager (CAM) and is the incoming 2018 President of the Greater Lexington Apartment Association Board. Brandon can be reached

at 859-263-2300 or Brandon@KenSilvestri.com

*CoStar Group

Lexington, KY

Top 10 Employers (inlcudes counties adjacent to Fayette County)

*Source: Greater Lexington Chamber of Commerce - "Major Regional Employer"

**Located in Georgetown, KY

***Located in Richmond, KY

****Located in Georgetown, KY

Lexington, KY

University Enrollment

Sources: Free-4u.com

*2010 - Google Response

Market Data

In order to collect the data to support this study, a

market survey of Lexington's Southeast and

Southwest sub markets was conducted (see graph

for location specifics). This quarter we conducted

a phone/email survey to gather information

regarding the total number of units, unit

breakdown, unit size, current rental rates, and

occupancy. Over 65 Lexington apartment

communities were contacted for the survey.

The data collected was compared to the numbers

from last year at this time to give us an accurate

representation of how the market have shifted this

past year.

Lexington Apartment Data (according to Costar):

- 996 Total Communities

(includes buildings with 4+

units)

- 41,000 Units

Properties Surveyed

- 100 Chevy Chase - Colts Run - Gleneagles - RM Lexington - Steeplechase

-Avenue at Nicholasville - Autumn Park - Cove Lake - Grand Reserve at Pinnacle - Pinebrook - Stoney Brooke

- Beaumont Farms - Creeks on Kirklevington - Hamburg Farms - Raintree - Treetops

- Blvd at Hays - Creeks on Lansdowne - Harrods Point - Regency Manor - Tates Creek Village

- Brandywine - Creeks on Tates Creek - Lakepointe - Reserve at Merrick - The Mansion

- Breckenridge Court - Crescent at Shadeland - Lakewood Park - Resort at Lake Crossing - Park 3099

- Bridle Creek - Cross Keys and Woodridge - Retreat at Hamburg Place - The Metropolitan

- Brighton 3050 - Downing Place Townhomes - Lighthouse Square - Richmond Commons - The Pines

- Brookview - Triple Crown at Tates Creek - Man O War Crossing - Saddlebrook - The Racquet Club

- Cabana Royal Arms - Fayette Crossing - Merrick Place - Shilito Park - The Veridian

- Cedar Run - Forty 57 - Park Place - Shorelake - The Henry at Fritz Farm - The Village - The Vue

- Valleyfield Apartments - Cedarwood - Fountains at Andover - Patchen Oaks - Spring House on the Park

- Westminster Village - Chinoe Creek - Gate House - Patchen Place - Springs at Winchester

- WaterStone - Whispering Hills

Rental Metrics

Rent per SF

$0

$0.353

$0.705

$1.058

$1.41

Eff/Studio 1x1 2x1 2x2 3x2

Avg Rent per SF

Eff/Studio - $1.41

1x1 - $1.05

2x1 - $0.87

2x2 - $0.89

3x2 - $0.88

Rental Metrics

Available units by Floor Plan

Eff/Studio

3%

1x1

42%

2x1

16%

2x2

32%

3x2

7%

# of units

Eff/Studio - 367

1x1 - 6,103

2x1 - 2,350

2x2 - 4,612

3x2 - 939

Rental Metrics

Rental Rates

$0

$325

$650

$975

$1,300

Eff/Studio 1x1 2x1 2x2 3x2

Avg Rental Rates

Eff/Studio - $665.64

1x1 - $790.75

2x1 - $784.82

2x2 - $1,009.02

3x2 - $1,214.11

Rental Metrics

Percentage of units by Year Built

Pre 1970

12%

1970 - 1979

18%

1980 - 1989

34%

1990 - 1999

16%

2000 - 2009

9%

2010 - Current 11%

# of units by Year Built

Pre 1970 - 1,763

1970 - 1979 - 2,645

1980 - 1989 - 4,860

1990 - 1999 - 2,294

2000 - 2009 - 1,305

2010 - Current - 1,618

Rental Metrics

Occupancy by Year Built - Stabalized assets only

0%

25%

50%

75%

100%

Pre 1

970

1970

- 19

79

1980

- 19

89

1990

- 19

99

2000

- 20

09

2010

- Cur

rent

Occupancy by Year Built

Pre 1970 - 89%

1970 - 1979 - 93%

1980 - 1989 - 95%

1990 - 1999 - 94%

2000 - 2009 - 94%

2010 - Current - 95%

Washer/Dryer Study

Do properties with washers and dryers in unit do better than those without? What about if just the

hook up is available? See our answers below:

Community only

17%

Select units

19%

Hook up only

31%

Machines in unit 34%

Washer/Dryer Setup

0%

25%

50%

75%

100%

Comm

unity

Only

Selec

t units

Hook up

s

Mac

hine

s in u

nit

Occupancy

Community Only - 93.8%

Select Units - 91.38%

Hook ups - 93.32%

Machines in unit - 94%

Washer/Dryer Study

Results Summary

The occupancy variance between properties who have washer/dryer connections and those

that do not is not significant. However, properties with the actual washers and dryers in the

unit are the highest occupied out of those surveyed.

Assets without washer/dryer connections are inherently older whereas units with the

connections/machines are newer. As such, we are not surprised to see the occupancy similar

to the numbers found in the 'occupancy by age' category.

Redevelopment Spotlight

The Element (Formerly Cedar Run)

Before After

Redevelopment Spotlight

The Element (Formerly Cedar Run)

Rental Rate Increases per SF

1 Bedroom Apartment

Homes

$0.96 $1.20 $0.84 $1.13

2 Bedroom Apartment

Homes

25% 34.5%

New Development Spotlight

The Henry at Fritz Farm FactsBuilt: 2017 (still in process)

Units: 336 (At Completion)

Owner: Arlington Properties

Community Features: Resort Style Pool,

Concierge, 24-hour Fitness Studio, Outdoor

Kitchen with Gas Grills, Pet Spa, Cyber Cafe

Apartment Features: - Granite Countertops,

Stainless Steel Appliances, Full-size Washer

& Dryer, 9' Ceilings, Premium 42'' cabinets

Unit Mix:

Bed Bath Sq ft Price

1 1 678 - 783 $1,181 - $1,240

2 2 938 - 1,106 $1,345 - $1,510

3 2 1,452 $2,250

Photos provided by thehenryatfritzfarm.com

New Development Spotlight

WaterStone at Hamubrg

FactsBuilt: 2017 (still in process)

Units: 264 (At Completion)

Occupancy: 49.62% (as of 09.06.17)

Leased: 59.85% (as of 09.06.17)

Owner: Miller Valentine

Community Features: Heated Saltwater

Swimming Pool, Outdoor Bar with TV Lounge,

Private Dog Park, Fitness Center/Yoga Room

Apartment Features: - Stainless Steel

Appliances, Quartz Countertops,

Washer/dryer, Vinyl Plank Flooring.

Unit Mix:

Bed Bath Sq ft Price

1 1 699 $999

1 w/den 1.5 873 $1,168

2 2 1,069-1,198 $1,269 - $1,329

3 2 1,359 $1,529 Photos provided by https://yournextplacetolive.com/luxury-apartment/waterstone-at-hamburg/

Summary Review

Occupancy has remained strong but has slightly dropped since 2016. Rental rates,

however, have continued to grow.

Smaller apartments continue to have the highest rent per SF in 2017. This is a

trend we see continuing for the near future.

3 bedroom apartments with only 1 bathroom are becoming obsolete. Very few

remaining in the market and most of the ones that are will be converted to 2

bedroom 2 bathroom apartments or two separate 1 bedroom 1 bathroom

apartments.

New construction has continued to grow but is almost at the plateau. The Henry at

Fritz Farm and WaterStone are knee deep in construction while The BLVD at Hays

is wrapping up it's last phase.

Redevelopment projects have continued in 2017. These include: The Element,

The Vue, The August (formerly Pickway Manor), and The Wellington. Small scale

renovations are also being conducted at numerous Lexington communities.

Additional Information Available

Please contact us at 859-263-2300 or Brandon@KenSilvestri.com to receive

detailed market data.

444 East Main Street

Suite 102

Lexington, KY 40507

859-263-2300 www.KenSilvestri.com