Quail Run & Oakcrest Townhomes Paducah, KY

Investment Highlights

• Situated in Highly Attractive & Low-Supply Paducah, KY Submarket 
• Significant Value-Add Upside Opportunity of $197+/Unit (Monthly)
• Value-Add via Utility Reimbursement & Other Income
• Quiet, Park-Like Atmosphere – Very Attractive to Tenant Base
• Unique Mix of Garden, Low-Rise, & Large Townhome Units
• Offered at Extremely Attractive Basis, Well Below Replacement Cost 
• High-Growth Area with Unmatched Connectivity to Demand Drivers
• Offered Free & Clear of Existing Debt
• May be Purchased with Autumn Creek Apartments (92 Units in Farmington, MO) for 247 Units Total 

Situated in Highly Attractive and Low-Supply Paducah, KY Submarket

Only 446 units have been delivered in the last 10 years in the market with zero units under construction, which has driven extremely solid multifamily fundamentals. The vacancy rate in Paducah, KY is just 2.2%, which is down 10 bps annually. Rent growth is respectable at 1.9% year over year. Additionally, the population is up 6.6% from 2022. Tight occupancy, lack of new construction, and an expanding workforce will bolster multifamily fundamentals for years to come!

The Paducah submarket continues to be a very attractive market with strong apartment fundamentals and economic indicators, including the benefits of top-ranking education, award-winning healthcare, several new economic development drivers, and many other employers and medical facilities. In addition, the Paducah, KY submarket carries a median household income of $63,554 which is projected to grow to $72,990 by 2028.

Significant Vale-Add Upside Opportunity of $197+ Per Unit (Monthly)

Constructed in 1984 & 2008, Quail Run offers dated interior finishes throughout and average current rents that are well below market. The property has proven that organic rental raises can be accomplished without the need for additional capital investment; however, new ownership will have an opportunity to achieve truly significant rental increases through the completion of interior upgrades/modernizations, targeted amenity upgrades, and further improvement of current operations. Cosmetic updates to the bathrooms, kitchen upgrades, new vinyl flooring, and an upgraded lighting package throughout will enable a new buyer to compete with newer and more renovated assets in the immediate area.

Value-add via Utility Reimbursement and Other Income

Currently, there is zero additional income for utility reimbursement. New ownership can conservatively charge $30 for one-bedroom units, $40 for two-bedroom units, and $50 for three-bedroom units in additional utility reimbursement income to increase the revenue stream. By increasing the current charge rate, new ownership can collect over $65k in utility reimbursements!

Additionally, very minimal income is generated from Other Income items such as application fees, MTM fees, late fees, etc. In total, there is over $71k of untapped income that can be generated in this category.