Pinnacle on Pleasant
5001 Pleasant Avenue
Fairfield OH, 45014
- Upon closing, the seller had recently finished an $8 million capital improvements which brought the occupancy down to 50% for the duration of the improvements. The units included above standard finishes for this class asset (i.e. granite counter tops) that separate Pinnacle from the competition. Within the 12 months since the improvements, the seller was able to raise occupancy from 50% to 92%.
- The Plan was to maximize rent to market levels, which were $20-30 below market because the seller focused on raising occupancy.
- Very well located B+ Asset in the Fairfield Submarket.
- Anticipated a 7 year hold to maximize rents to market levels and sell or refinance as the property develops.
- Since closing, we have achieved an average rent of $748 from $720, with occupancy at 95%.
- NOI for the last reported quarter was a positive variance of $36,000 at 19% above budget.
- Recurring concessions continue to be removed/reduced upon renewal, and no new concessions were needed to entice new move-ins, thereby increasing net effective rents.
- A construction of 16 storage units was recently completed and most have already been rented by tenants.
- Distributions are continued to be made to investors with Class B realizing 11.7% and Class C realizing 10.4%