Somerset at Deerfield

Cincinnati, OH

Date Acquired: March 24, 2005
Purchase Price: $43,250,000
Date Sold: October 17, 2006
Sales Price: $49,095,000
Location: Cincinnati, OH
Leveraged IRR: 23.1%

Somerset Partners (“SP”) purchased this Class A, 498 unit property located in suburban Cincinnati as an opportunistic investment. The property, built in 2001 and formerly known as The Conservatory, was an institutional quality asset but was underperforming due to “soft” market conditions and ineffective on-site/asset management. SP felt significant upside could be achieved by repositioning the asset and improving operations. SP accomplished this by implementing a capital improvement program coupled with a proactive management program. In addition, the property was renamed Somerset at Deerfield. The capital improvement program was not large in scale (less than $1M), but was effective in improving the asset’s image and curb appeal. Major items upgraded included; amenities (fitness center & clubhouse), building exteriors (new paint & color scheme), signage and resident retention and profile.