Chapelwood Place

4.855% Interest Rate Assumable Loan

Diverse Unit Mix of Apartments and Townhomes

Approximately 44% of Unit Renovations Completed

9.4% Proven Loss to Lease Opportunity

Property Description

Deal Room URL: https://www.marcusmillichap.com/properties/158586/chapelwood-place Marcus & Millichap is pleased to present the exclusive offering of Chapelwood Place Apartments, a 160-unit apartment community located in Henderson, KY, just 10 miles south of Evansville, IN. Built-in 1978 and renovated in 2023, Chapelwood Place consists of 12 residential buildings, a large clubhouse, various property amenities, and views atop the bank of the Ohio River. Current ownership has made significant upgrades and renovations to the property’s amenities and curb appeal, including improvements to the property’s landscaping, pool area, and clubhouse. New community amenities have also been added, including a fitness room, game area, playground, dog park, and grilling areas. With the upgrades and additions to the community amenities offered, along with the premium views of the Ohio River, residents can enjoy a luxurious lifestyle for a fraction of the cost. With Evansville, IN, just a 20-minute drive away, Henderson County is included in what is considered the Evansville metro. Major industries include health care, finance, education, and manufacturing. The metro is home to the Port of Evansville, a large facility that expedites the movement of cargo from barge to rail and truck, as well as companies such as Atlas Van Lines, Koch Enterprises, Deaconess Hospital, and Kaiser Aluminum. There has also been solid economic investment into Henderson, KY specifically, as Pratt Industries opened a $700 million recycled paper and corrugated box factory in September 2023, just minutes from Chapelwood Place. According to Pratt, this plant is the most technologically advanced and environmentally friendly paper mill ever built. The plant created 325 new jobs in Henderson, with an average pay of around $100,000 per employee. Chapelwood Place is well positioned in the marketplace to experience significant growth and upside while providing a new investor with attractive return metrics upon acquisition. The property offers an assumable Fannie Mae loan which has an option to add a supplemental loan at closing, making for a more favorable LTV, below-market blended interest rate, and nonrecourse safety. In addition to the attractive loan opportunities, the property presents a simple value-add strategy through completing the remaining interior unit renovations and increasing rents to their proven potential. Currently, the property is experiencing about 9.4% loss to lease, which equates to about $83/month per unit, or the potential to increase top-line revenue by nearly $158,000 annually once the remaining renovations are completed.