Investment Pitch: 25 Holladay Drive

Danville, Kentucky | 26 Units | $2.55M Asking

Property Exterior

25 Holladay Drive

Strategic Value-Add | Danville, Kentucky

Purchase Price

$2,550,000

Year 1 Cap Rate

8.0%

Target IRR

23%

Investment Thesis

25 Holladay Drive represents a unique transition opportunity. Following a rigorous $700,000 capital expenditure program over the last three years, the asset has moved from a "heavy-lift" value-add project to a stabilized property management play.

The heavy construction work—including a new roof on the north building (14 units), 10+ HVAC system upgrades, plumbing modernization, and unit conversions—- is complete. The current ownership has successfully proved the market, with top-of-market rents achieving $1,150/month. The acquisition allows a new operator to step in and normalize the rent roll with minimal capital requirement, capturing the remaining upside through operational excellence.

Management Opportunity

The current ownership is exiting due a successful value-add project managed from out of state. This asset is ideally suited for a local Kentucky operator or a regional firm with a strong property management infrastructure or an out of state investor with a strong local team.

Strategic Value Creation

The "Heavy Lift" is Done

  • ✔ $700k+ Total CapEx: Comprehensive renovation of infrastructure and interiors.
  • ✔ Office Conversion: Successfully converted the former leasing office into additional revenue-generating residential units.
  • ✔ Mechanical Systems: Majority of HVAC units replaced; new roof installation completed.
  • ✔ Unit Modernization: Strategic in-unit renovations to drive rental premiums.

Market Proof Points

Proven High Rent

$1,150 / mo

Target Avg Rent (Year 1)

$912 / mo

Proven Vacancy

3.0% (Past 4 Months)

Danville Market Context

Danville is a robust regional hub in Kentucky with a strong base of institutional employers and educational centers. The supply of modern, renovated multi-family housing remains constrained, ensuring high absorption rates for updated units like those at Holladay Drive.

Financial Pro-Forma

Metric Year 1 Year 3 Year 5
Average Rent / Unit $912 $996 $1,057
Gross Potential Income $284,675 $310,950 $329,886
Operating Expenses (Est.) <$85,000 $89,000 $94,000
Net Operating Income ~$204,000 $221,000 $235,800
DSCR (80% Loan) 1.27x 1.35x 1.42x

Exit Strategy

Based on an 8% exit cap, the projected Year 5 value is estimated at $3.0M+, representing a steady appreciation alongside strong operational yield.

Ancillary Upside

Immediate opportunity to bill $50/mo trash fees (already in leases) and implement $15/mo washer/dryer rentals.

FOR MORE INFORMATION

Dennis Buhler

859-712-9944

25holiday@gmail.com

Attachment A: Year 1 Revenue Transition Model

Projected lease normalization over 12 months post-acquisition. Target: 2-3 turnovers per month.

Unit Current Market Target Proj. Month 3 Proj. Month 6 Proj. Month 12
#01$890$940$890$890$940
#05$1,100$1,150$1,100$1,150$1,150
#13$1,050$1,100$1,050$1,100$1,100
#15$975$1,025$975$1,025$1,025
..................
Avg / Unit $940 $902 $921 $940

Note: Projections apply a 5% vacancy rate on gross potential rents. Full unit-by-unit detail available in raw export data.

Pitch Deck Preview

(Slide Summaryº

25 Holladay Drive

26-Unit Value-Add Acquisition

Danville, Kentucky | $2.55MM

The "Property Management" Play

Property interior

Financial Snapshot

8.0%

Year 1 Cap

23%

Projected IRR

1.45x

DSCR (70% LTV)

$3.0M

Exit Value (Yr 5)

Capital Improvements

Structure

New Roof Installation

HVAC System Overhaul

Units

Renovated Interiors

Upgraded Appliances

Value-Add

Office to Apt. Conversion

Exterior Improvements

Connect for Due Diligence

Dennis Buhler

859-712-9944

25holiday@gmail.com

Danville, Kentucky | 25 Holladay Drive