Overview
Prime is strategically positioned in one of Lexington’s most desirable Class A submarkets, surrounded by exceptional demographics and strong economic fundamentals. With an average household income exceeding $120,000 within a 3-mile radius, the property benefits from a deep pool of qualified renters and sustained rent growth potential. Its proximity to major retail destinations—including Fayette Mall, The Summit at Fritz Farm, and Hamburg Pavilion—further enhances its appeal by providing residents convenient access to Lexington’s top-tier shopping, dining, and entertainment options. The surrounding area continues to thrive with billions in public and private investment, including Toyota’s $922 million expansion and the $450 million Rupp Arena District redevelopment, solidifying Lexington’s status as a dynamic, growth-oriented market.
The property has undergone an extensive $1.9 million capital improvement program, significantly elevating its physical quality and market competitiveness. Renovations include upgraded flooring, appliances, countertops, and fixtures, modernized kitchens and bathrooms, and refreshed common spaces. These improvements not only enhance resident satisfaction but also reduce near-term capital needs and position Prime to achieve premium rents relative to comparable assets. With its balanced unit mix of 1-, 2-, and 3-bedroom layouts and spacious floorplans ranging from 650 to 1,014 square feet, the property caters to a wide renter base—from young professionals to families—ensuring consistent occupancy and durable cash flow.
Lexington’s broader fundamentals provide a powerful tailwind for future performance. The city leads the Cleveland Federal Reserve District in employment growth and continues to attract substantial corporate, institutional, and lifestyle investments. With record passenger volumes at Blue Grass Airport and ongoing mixed-use development projects across the city, Lexington is experiencing a period of sustained expansion. Supported by a diversified employer base led by Toyota, the University of Kentucky, Amazon, and UK HealthCare, the market’s economic resilience and quality of life rankings—such as being named a Top 10 Emerging Multifamily Market—make Prime a compelling investment opportunity in a city poised for continued growth.
Investment Highlights
Premier Class A Location: Located in one of Lexington’s more desirable submarkets, Prime benefits from 3-mile average household income of $120K+, well above the metro average, supporting strong renter demand and sustained rent growth potential.
$1.9M CAPEX SPEND: Current ownership has invested approximately $1.9M in interior renovations, featuring upgraded flooring, appliances, countertops, and fixtures. Kitchens and bathrooms have been refreshed to a modern standard, enhancing the resident experience, lowering near-term capital needs, and positioning the property competitively within the market.
PROVEN VALUE-ADD PROGRAM: Currently, 128 of Prime’s 228 units have been renovated and are achieving a rent premium of $110 - $160 on in-place rents. New ownership will have the opportunity to renovate the remaining 100 units and potentially increase NOI.
GREAT UNIT MIX: Prime offers a balanced selection of layouts. The unit mix offers 26% of 1BDs, 58% of 2BDs, and 16% of 3BDs. With sizes ranging from 650 to 1,014 SF, the community appeals to a wide spectrum of renters, from individuals to families, supporting strong leasing demand.
ACCESS TO NEARBY RETAIL: Prime is less than 12 minutes from Fayette Mall and Summit at Fritz Farm and 15 minutes from Hamburg Pavilion.
•Fayette Mall: 1,184,982 SF anchored by Macy’s, JCPenney, and Dillard’s with over 190 stores and restaurants.
•Hamburg Pavilion: 989,779 SF anchored by Target, Kohl’s, Costco, and Dick’s Sporting Goods with over 70 stores and restaurants.
•Summit at Fritz Farm: 325,600 SF of Class-A retail anchored by Whole Foods, Apple, and Nike.
$922 MILLION TOYOTA INVESTMENT: Toyota will invest $922 million to build a new advanced facility at its plant in Georgetown, Kentucky, located 35 minutes from Prime. The investment will provide over 1 million square-feet of capacity to increase future vehicle production. This announcement comes less than a year after it announced it was investing $1.3 billion into the Georgetown plant to boost electrification efforts.
RUPP ARENA DISTRICT REDEVELOPMENT: Lexington has approved a $450 million redevelopment of the 17-acre site surrounding Rupp Arena, transforming surface parking into a vibrant mixed-use district with residential, hotel, retail, entertainment, and structured parking, further enhancing the area’s role as a downtown anchor. This investment acts as the largest investment in College Basketball history.
BLUE GRASS AIRPORT RECORD: In January of 2025, Blue Grass Airport celebrated a record-breaking 1,571,805 passengers in 2024, surpassing the previous record of 1,465,049 passengers set in 2019. The new record of 1.57 million passengers is a 16.1% increase from 2023.
#1 EMPLOYMENT GROWTH: Lexington-Fayette, Kentucky, has experienced the highest employment growth rate among all metro areas within the Cleveland Federal Reserve Bank’s district, reaching 5.5% since 2020. This strong job growth highlights the area’s economic resilience and expanding labor market.
RECENT LEXINGTON INVESTMENTS: Multiple major announcements have come out of Lexington recently, including:
•Henry Clay High School: $185.6 million cost; 2,300 students
•Saga Spirits Group: $93 million investment
•Piramal Pharma Solutions: $80 million investment; 45 jobs
•Lexington Sporting Club: $50 million stadium opened in Sep.2024
•SRC of Lexington, Inc.: $15 million investment; 60 jobs
•Tru-Tone Finishing Inc.: $13.6 million investment
2025 LEXINGTON DEVELOPMENTS: Lexington is undergoing a wave of new developments, revitalizing key areas with parks, shopping centers, and dynamic mixed-use spaces. From upgraded public parks to new dining and entertainment districts, these transformative projects are enhancing the city’s landscape in 2025 and beyond.
•The Fountains of Palomar: New shopping and dining hub
•Phoenix Park: $4.6M renovation bringing new play areas, a stage, and an improved dog park.
•Gatton Park on the Town Branch: 10-acre park featuring an amphitheater, walking bridge, and plaza.
•The Commons: 40-acre mixed-use district with RD1 Spirits distillery.
LEXINGTON MAJOR EMPLOYERS: Lexington’s economy is anchored by a diverse base of major employers, including:
•University of Kentucky – 26,000 Jobs | 35,952 Enrollment
•UK HealthCare – 10,000+ Jobs | 910 Beds
•Toyota Kentucky – 9,700 Jobs
•Baptist Health – 3,189 Jobs | 434 Beds
•Amazon – 3,000 Jobs
•Veterans Medical Center – 2,000 Jobs | 190 Beds
•CHI Saint Joseph Health – 2,029 Jobs | 650 Beds
•Eastern Kentucky University – 1,800 Jobs | 15,026 Enrollment
TOP-RANKED CITY: Due to the cities rapidly growing jobs and low cost of living, Lexington has been highly ranked in a number of categories:
•#2 Best Run Cities in the US
•#3 Safest City in America
•#3 Best City with the Highest Salaries and Lowest Cost of Living
•#4 Best Cities in the US
•#6 Emerging Multifamily Market
•#15 Best Cities to Live in the US
Unit Mix
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