March 12, 2015

A 272-unit apartment complex in southeast Louisville is undergoing a renovation after changing hands late last year.

Glenmary Village Apartments, which is located off Bardstown Road in southeast Jefferson County, was purchased in October from Louisville-based Renaissance Development by Peak Capital Partners, an apartment investment and management company based in Provo, Utah, for $26.7 million.

Since taking over ownership, Peak has increased the complex’s occupancy rate to 93 percent from 85 percent and has started work on a complete renovation of the complex, said Nathan Nelson, vice president of acquisitions for Peak. Nelson did not elaborate on exactly how the company has increased occupancy but he did say the company is trying to better market the property and its floor plans and improve the overall quality of the space.

He declined to disclose renovation costs but said the company is making minor improvements to each unit by placing new lighting fixtures with LED lights, new plumbing fixtures and new flooring.

The company also is investing in a renovation and redecoration of the 5,000-square-foot clubhouse with new paint, new flooring, LED fixtures, new furniture and some reconfiguring of the space. Nelson said Peak has no plans to expand the size of the clubhouse, but it knocked out a wall to expand the size of the fitness center, offering more space for yoga, free weights and added exercise equipment.

Nelson said Peak also is enhancing the apartment’s concierge office and might add services, such as car-side package pickup or dry cleaning delivery for residents.

Peak also plans to add a welcome center in the clubhouse with a map of the nearby Parklands of Floyds Fork. In a news release, Peak said residents of the complex can walk to a number of activities at the park.

Peak Capital Partners was founded in 2007 and owns 80 apartment communities in 19 states, targeting markets that are experiencing growth. This is the company’s first investment in Kentucky, but it won’t be its last, said Louisville-based broker Aaron Johnson of Marcus & Millichap, commercial real estate brokerage firm that represented Renaissance Development in the transaction.

Johnson told Business First that Renaissance Development does not want to talk publicly about the deal and has declined offers for interviews. “They wanted to fly under the radar on this one,” he said.

As Business First reported in 2011, Renaissance Development sued Charlotte, N.C.-based Grandbridge Real Estate Capital LLC, blaming the company for the foreclosure of its Cooper Creek apartments and the near foreclosure of its Glenmary Village Apartments when refinancing fell through.

Glenmary Village was saved from foreclosure when Renaissance secured an extension from its lender, GE Capital.

Nelson said Peak has been interested in Kentucky and Louisville for a few years now. The company was particularly attracted to Glenmary Village because it allows residents to “get away from it all” and have more open space but still be close to restaurant and retail options. He noted that Glenmary Village is within 20 minutes of downtown Louisville.

He said the company hopes to make more acquisitions in Louisville and to move into the Lexington market eventually, but he said nothing else is under contract in the state.

Glenmary Village has one- to three-bedroom units that range in cost from $870 per month for a one-bedroom apartment to $1,350 for a three-bedroom unit, Nelson said.

Original Article