CINCINNATI—A recent survey by the National Multifamily Housing Council showed a modest decline in sales volume in the national market for multifamily properties, although overall the sector still had a lot of strength. In Cincinnati, however, sales of multifamily properties just hit their highest level in three years, according to a new study recently published by Cassidy Turley.
During last year's final quarter, 3,336 units were sold in the metropolitan area, with a total transaction volume of nearly $190 million. The average sale price per unit was $56,949.
“The total number of units sold was the highest since the second quarter of 2011, when 3,735 units were sold,” says James Flick, director of research for Cassidy Turley's Cincinnati and Dayton offices.
Suburban submarkets drove much of the fourth quarter demand, at least in terms of the numbers of units sold. The Northern submarket had 942 sales, the West submarket 625 and the Northeast submarket saw 464. However, although only 364 sold units were located downtown, they collectively fetched just over $80 million, or $221,456 per unit. That average was far above the historical average and was largely driven by the sale of the 300-unit Current at the Banks to Nicol Investment Company for $79.5 million, according to Cassidy Turley researchers.
The development of luxury apartment developments such as the Banks, Garfield Place, and Vue 180 helped drive asking rents from $740 to $760 per unit. And new development, much of it downtown, continues to surge. Developers have more than 3,100 total units either under construction or in the planning stages throughout the Cincinnati metropolitan area, with about 40% occurring downtown and 31% in the Central submarket.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
