URS Capital Partners Sells Two Cincinnati-Area Apartments
- Feb 25, 2014
URS Capital Partners, a real estate investment company based in Huntington, N.Y., completed the sale of two multifamily properties in the Cincinnati area at the end of January. The two properties are the Westshore Apartments, in Covington, and the Incline Apartments in Cincinnati’s Incline District.
The Westshore Apartments, formerly known as Harbour House, is a Class B apartment building with 37 units. URS Capital Partners acquired the property in October 2011.
“Due to the property’s positive attributes, including its amazing views and proximity to downtown Cincinnati, we saw the opportunity to buy the property well, implement a strategic upgrade plan and rebrand the property to greatly improve cash flow and value,” said Christopher and Lisa Urso, partners of URS Capital Partners, in a statement for the press.
URS said the upgrade was a success and that it was able to increase average rents by 10 to 15 percent throughout the property. Although it did not disclose the price of the transaction, URS said the asset was sold to a local investor at a 7.5 percent cap rate. At the time of the sale, the apartment building was 95 percent occupied. The Westshore Apartments generated an unleveraged 21 percent internal rate of return with a two-year hold period.
The Incline Apartments is a 40-unit Class C apartment complex. URS Capital Partners purchased the property out of foreclosure in November 2011. At that time, it was 80 percent vacant. URS Capital Partners renovated the Incline Apartments. The property, also sold for an undisclosed price, generated an unleveraged 16 percent IRR.
“As a result of the timely execution of our strategic plan, we allowed our investors to enjoy healthy unlevered cash-on-cash returns during uncertain economic times,” said Christopher Urso.
URS Capital Partners plans to acquire additional multifamily properties in 2014. The company will focus primarily on Class B and C assets. According to Marcus & Millichap, small private buyers are searching for these types of assets and they’re bringing new capital to the market, increasing the investment activity in the Cincinnati metro area. At the end of 2013, cap rates for Class B and C properties started in the low-8 and low-9 percent range, respectively.
Photo credits: URS Capital Partners