The sale of the 236-unit Veranda at Norton Commons apartment complex set a new high-water mark for deals of its type in Kentucky, despite challenges like homeowners association control over its neighborhood.
The deal won the sale/acquisition of the year award for Louisville in the 2023 CoStar Impact Awards, which were judged by a panel of commercial real estate experts familiar with the market.
The complex sold for $72.8 million, or roughly $309,000 per unit, despite sitting in an HOA-controlled neighborhood that restricted further development. Despite that, the complex saw bidders ranging from "regional [real estate investment trusts] to international multifamily owner-operators."
About the project: The deal closed in May for the Class-A complex, which sits in Norton Commons, a mixed-use planned community billed as having "everything you need without ever leaving your neighborhood." The building is just over 264,000 square feet.
What the judges said: Judges were impressed by the valuation while jumping through hurdles inherent in the neighborhood.
"This transaction had the highest dollar value and also seemed to have the biggest challenge having to negotiate with an HOA," said Victoria Mayer, senior associate for Gensler.
"Love the price per door," said David Badgett, vice president of investments for Marcus & Millichap. "Yeah, it's a great location, but getting over $300,000 per door is a great accomplishment."
They made it happen: Craig Collins Senior Director and Austin G. English, associate for Cushman & Wakefield - Commercial Kentucky.
