CORE will also upgrade the clubhouse/leasing office and has allocated $40,000 to improve the aesthetic quality of the building interior and its exterior landscaping, which should help draw attention to the community from potential residents, thereby enhancing leasing efforts. Based on market level due diligence, CORE believes the Property is positioned to capture the growth occurring in the immediate area and plans to market the Property with efforts focused on local employment centers and new candidates entering the market attempting to relocate closer to job centers.
The Property currently has a lower average rental rate per unit compared to comparable properties in the surrounding northwest Cincinnati submarket. With focused management, the Property Manager believes rental rates can be increased as projected once the proposed interior upgrades have been completed. With additional programs and a strong focus on expense control and customer service, CORE projects Property net operating income to grow by approximately a 2.94% average annual increase over the anticipated holding period of the Property.
CORE believes that the Property will benefit from the migration occurring back toward urban living. The Property is positioned to capture not only long term renters but also tenants entering back into the rental market who do not want to sacrifice quality of life or convenient proximity to every day necessities. In addition, the Property does not have the same vulnerability as class “A” communities which continue to be negatively impacted by the increase in shadow supply (condos and single family rentals) in markets across the Cincinnati metropolitan area.
The City of Forest Park has an Economic Development Department which is a dedicated team of professionals utilized for the sole purpose of attracting and retaining quality employers to the city.
The Property is surrounded by 4,500 businesses employing 55,000 individuals within a 5 mile radius. According to the Economic Development Department, the economic viability of major area employers is not predicated upon the success of housing and construction related industries which have softened other economies across the county.
The industries that serve as the catalyst for the local economy in the City of Forest Park include education, healthcare and to a lesser degree industrial industries which have become more prosperous of late due to the weakening dollar and resulting increase in export oriented activity.
Top area employers include: University of Cincinnati, Kroger Company, Health Alliance of Greater Cincinnati and the Procter & Gamble Company. Additionally, Cincinnati is the headquarters of 10 Fortune 500 companies (6th most nationwide) and an additional 9 Fortune 1000 companies (4th most nationwide).
The Fortune 500 companies include Procter & Gamble, Kroger Company, Macy’s, Ashland, Fifth Third Bancorp, Omnicare, AK Steel Holding, Western and Southern Financial, Cincinnati Financial and Chiquita Brands International.