Realty Investment Offers Two Apts for $46M

The Baltimore-based Realty Investment mostly deals with seniors housing and hotels, including an ownership in Choice Hotels, says Matthew Brown, a senior associate for Marcus & Millichap. "These properties just don't really fit well with that they do," Brown tells GlobeSt.com.

Remington, which is 93% occupied, is in a northeast Columbus suburb. The property was built in 1987 on 37 acres overlooking Little Turtle Golf Club, and has amenities such as garages, a fitness center, pool and tennis courts. The units range in size from 1,280 sf to 1,920 sf, with an average size of 1,399 sf. The property is offered for $24 million, at a cap rate of 7.2%, Brown says. Rents range from $850 to $1,204 per month.

Polo Club, which is 98% leased, is in a southwest Cleveland suburb. The property was built in 1990, and has amenities such as wood fireplaces, a fitness center, pool and a lake. The size of the units range from 750 sf to 1,148 sf, with an average size of 925 sf. The complex is offered for $21.8 million, at a 7.25% cap rate, says Brown. Rents range from $700 to $885.

Both properties are in good locations and well maintained, he says. Polo had $1 million in improvements in the past five years, and Remington had $1.3 million in updates during the same timeframe.

Brown says the overall Ohio apartment market is doing very well. "The fundamentals are solid," he says. "We're seeing concessions burn off, increased occupancy and more upside in NOI. Also, another key factor is there's not much new construction. For example, there was less than 200 units built in Columbus in 2007, and we're looking at 500 going up this year."