Chalfonte Plaza Investment Opportunity
A compelling 45-unit multifamily acquisition in Cincinnati's Avondale neighborhood. This stabilized property offers immediate cash flow with significant value-add potential through below-market rents.

by Naren Roy

Property Overview
45-Unit Garden-Style Apartment
Built in 1965, renovated in 2020 with upgraded units and building systems.
Prime Avondale Location
Minutes from Downtown Cincinnati, close to universities and hospitals.
Diverse Unit Mix
10 studios, 23 one-bedrooms, and 12 two-bedrooms with 95% occupancy.
Below-Market Rents
Current rents $580-$1,006 with significant upside potential.
Chalfonte
Investment Highlights
Acquisition Price
$2.9-3M ($64-67K per unit), well below Cincinnati metro average of $106K/unit.
Strong Returns
~6% Cash-on-Cash return and 13% IRR with 1.8x equity multiple over 5 years.
Value-Add Opportunity
$95+ per unit "loss-to-lease" can be recaptured through market-rate renewals.
Minimal CapEx Needed
2020 renovations included new windows, boilers, and water heaters.
Market Analysis: Cincinnati & Cleveland
Cincinnati Strengths
  • 3% annual rent growth (above 1% U.S. average)
  • 7.1% vacancy rate (below 8% national average)
  • Average asking rent: $1,285/unit
  • Cap rates averaging 7.7-7.8%
Cleveland Comparison
  • 2.8-3.2% annual rent growth
  • Class C apartments seeing 3.5% rent growth
  • Strong absorption in workforce housing
  • Average rent: $1,177/unit
Avondale area of Cincinnati
Avondale Neighborhood Advantage
Healthcare Hub
Cincinnati Children's Hospital nearby creates steady rental demand.
University Proximity
University of Cincinnati and Xavier University within minutes.
Revitalization
Avondale Town Center redevelopment bringing new retail and amenities.
Transportation
On bus route with quick access to downtown employment centers.
Rent Comparables
Financial Projections
6.0%
Going-In Cap Rate
Healthy spread above current debt costs.
6%
Year 1 Cash-on-Cash
Immediate positive cash flow.
13-16%
5-Year IRR
Projected return after financing.
RECENT CAPITAL EXPENDITURES
Value Creation Strategy
Acquire at $62-64K/Unit
Well below market average of $106K/unit.
Raise Rents to Market
Capture $95+/unit in loss-to-lease at renewal.
Section 8 Option
Housing vouchers pay above current rents.
Exit at Higher NOI
Sell as stabilized asset after 5 years.
Deal Structure

Friends & Family Equity
$1.1M total equity needed
Debt Financing
70% LTV at 6-7% interest rate
Property Acquisition
$2.9-3M purchase price
Risk Factors & Mitigation
Interest Rate Risk
Secure fixed-rate loan or interest rate cap. Healthy cap rate provides cushion.
Economic Downturn
Affordable rents are recession-resistant. Healthcare and education tenants provide stability.
Operational Risks
2020 renovations reduce near-term capital needs. Professional management and CapEx reserves.
Exit Timing
Flexible hold period allows for optimal market timing. Focus on NOI growth.
Investment Timeline
1
Acquisition
Purchase at $2.9-3M with 70% LTV financing.
2
Years 1-2
Implement rent increases at renewal. 5% Cash-on-Cash returns.
3
Years 3-4
Stabilized at market rents. 7%+ Cash-on-Cash returns.
4
Year 5
Evaluate exit. Projected 14-16% IRR and 1.8-2.0x equity multiple.
Adjacent property ( Comparables)

YOLO Investments

700 Chalfonte | YOLO Investments

For Rent: Beautiful renovated 2 & 3 Bed apartments available, Discover your new home with Yolo Investments! This stunning apartment boasts beautiful granite countertops, brand new cabinets, and an abundance of natural sunlight. Enjoy modern living with all-new flooring and sleek appliances. 2 Bed- $1050 3 Bed- $1375 Key Features: - Spacious bedrooms - Gorgeous granite countertops - All-new cabinets - Ample sunlight throughout - Brand new flooring - Off-street parking - Air conditioning incl

Rents
Studio: $725
2 BR: $1150
3 BR: $1450
Competitive Advantage

Stabilized Asset
95% occupied with immediate cash flow
Value-Add Upside
Below-market rents with clear path to increase
Strategic Location
Near major employers and in revitalizing area
Economies of Scale
45 units ideal for efficient professional management
Next Steps
Due Diligence
Complete property inspection, financial review, and property management analysis.
Equity Commitment
Secure $1.1M in equity from friends-and-family investors.
Financing
Finalize loan terms with lender for 70-75% LTV financing.
Closing
Complete acquisition and implement property management transition.