(Read more on the multifamily market.)
LOUISVILLE, KY-Aaron Johnson, the principal broker for Marcus & Millichap Real Estate Investment Services in Kentucky, says a recent federal ruling will help him sell a four-property, 1,116-unit multifamily portfolio in the state. The seller, Medford Properties, is asking $57.8 million for the apartment complexes, which include the 37-building Park at Hurstbourne in Louisville.
Johnson says 90% of his sales come from national companies, which were difficult to attract under Kentucky's “turf state” law, which prohibited brokers from cooperating with brokers who are not licensed in that state. Marcus & Millichap's suit challenging Kentucky's turf state regulations was filed in the US District court for the Western District of Kentucky, which has ruled that the state's turf laws are unconstitutional.
“With that ruling, that will help this portfolio receive greater exposure, we don't have to just market on the local level,” Johnson tells GlobeSt.com. “It will allow our client to achieve his goal of the highest price.” He says the owner of Medford is retiring and wants to divest his apartment properties.
The Park at Hurstbourne, on Hurstbourne Parkway, has 37 three-story buildings on 46 acres, and rents from $487 to $897 per month. The other properties include the 128-unit Park Chateau Apartments ($419 to $479) and 94-unit Holly Hills Apartments ($509 to $569) in Louisville, and the 204-unit Cabana Royal Arms ($474 to $798) apartments in Lexington. The class B portfolio is about 92% occupied, Johnson says.
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