Top 5 Markets for Multifamily Development in Ohio
- Jun 19, 2020
Although the coronavirus pandemic has slowed down construction across the country, projects have started to get back on track as states gradually reopen. Despite certain safety regulations construction workers must comply with, some developers are optimistic about meeting delivery deadlines.
Once the outbreak prompted nationwide shelter-in-place orders, construction in Ohio was classified as an essential activity. As of May, more than 17,900 units were underway across six metros in the Buckeye State. Here’s a breakdown of Ohio’s top metros for development activity, based on Yardi Matrix data. Youngstown came in sixth, with 60 units under construction.
As of May, Toledo’s multifamily pipeline encompassed 900 units under construction, representing 2.4 percent of total stock. Of the total apartments under development, 136 are fully affordable. The largest project underway is Continental Real Estate Cos.’ Marina Lofts Toledo, a 360-unit community in the Toledo-East Side submarket. The company started construction on the project in 2018 with the help of a $37 million construction loan from Huntington National Bank. Located at 625 Riverside Drive, the property is scheduled for completion later this summer. The four-story project is set to include a mix of one- and two-bedroom units ranging from 600 to 1,121 square feet.
With a total of 2,557 units under construction, accounting for 1.6 percent of total stock, the majority of the supply is geared toward high-income renters. Developers were mostly active in downtown Cleveland, which had 924 units underway.
Playhouse Real Estate Services has expanded its portfolio with the market’s largest project underway—The Lumen, a $135 million project in downtown Cleveland. The 34-story tower will consist of 318 units with a mix of penthouses and one- and two-bedroom units ranging from 571 to nearly 2,000 square feet. Additionally, 550 parking spaces and 22,000 square feet will be available on-site. Located at 1600 Euclid Ave., The Lumen is situated in an Opportunity Zone. The community topped off at the beginning of the year and was initially projected to come online in July.
Dayton’s development pipeline accounted for 5.6 percent of total inventory, with 2,682 units under construction as of May. Prior to the pandemic, the surge in new construction in communities that had not seen new projects in 20 years was a sign of the strong local economy.
The Centerville submarket led development activity with two properties underway totaling 672 units. The largest project under construction in the metro is also in Centerville—Hallmark Campus Communities’ Gateway Lofts is expected to add 360 units upon completion in late 2020. The company received a $31.2 million construction loan from Wright-Patt Credit Union in 2018. The three-story building will feature one- and two-bedroom units.
As developers move forward with plans amid the pandemic, Cincinnati ranks second on our list with 4,586 units under construction—4.1 percent of total stock. Pre-coronavirus, the area was among the strongest economies in the region, based partly on its population growth.
Downtown Cincinnati is the most active submarket in the city with nearly 950 units underway. The metro’s largest project as of May was Milhaus Development’s Artistry Cincy, a 344-unit community at 601 E. Pete Rose Way. The downtown development broke ground at the end of 2019 and is scheduled for completion in August 2021. The $75 million project is set to include roughly 8,000 square feet of retail and entertainment space.
Due to increased hiring in the health-care and government sectors, demand for housing in the metro is likely to remain strong. Nearly 7,200 units were under construction as of May, representing 4.1 percent of total inventory.
The largest development in Columbus is also a Continental Real Estate Cos. project. The company broke ground on the Lofts at Norton Crossing in 2017, with the help of a $35 million construction loan from Huntington National Bank. Located at 4657 E. Broad St., in an Opportunity Zone, the community is expected to add 350 units to the metro’s inventory and is slated to include 50,000 square feet of office and 20,000 square feet of retail space.