Mossanen Group is presenting the acquisition of Hudson Square, a 258-unit Class A garden-style multifamily community at 5451 Olivia Michal Place in Westerville, Ohio — one of the most affluent and fastest-growing suburban nodes in the Columbus MSA. The property was built in 2013 across 8 three-story buildings on 12.8 acres, delivering institutional quality at a below-replacement-cost acquisition basis.
With 97.3% physical occupancy (251 of 258 units occupied) and in-place rents of $1,393/month ($1.46/SF) against a post-renovation market of $1,590/month ($1.66/SF), Hudson Square is a stabilized, high-performing asset generating strong day-one cash flow. The value-add opportunity is disciplined and quantifiable: in-place rents trail renovated comps by $196/month (14.0%) on average, and the renovation program — budgeted at $4,839/unit for 1BR (38.6% ROC) and $13,481/unit for 2BR (18.8% ROC) — generates a blended 21.3% return on cost.
Mossanen Group is submitting an offer at $44.5M ($172k/unit), acquiring below both the stabilized cost basis of $51.8M and estimated replacement cost of $235–240k/unit. The Year 5 refinance is a core pillar of the return profile, resetting the capital structure and accelerating levered cash-on-cash dramatically in Years 6–10.
All financial projections based on Mossanen Group underwriting as of March 3, 2026.
| Unit Type | Cnt | Mix | Occ. | %Occ | SF | In-Place | $/SF | Market | $/SF | Prem $ | Prem % | Reno Cost | ROC |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1BR/1BA — 720 SF | 36 | 14.0% | 36 | 100.0% | 720 | $1,210 | $1.68 | $1,400 | $1.94 | +$190 | 15.7% | $4,850 | 47.1% |
| 1BR/1BA — 778 SF | 36 | 14.0% | 35 | 97.2% | 778 | $1,254 | $1.61 | $1,425 | $1.83 | +$171 | 13.6% | $4,850 | 42.3% |
| ↳ 1BR Blended | 72 | 27.9% | 71 | 98.6% | 749 | $1,232 | $1.65 | $1,387 | $1.85 | +$155 | 12.6% | $4,839 | 38.6% |
| 2BR/1BA — 1,007 SF | 60 | 23.3% | 58 | 96.7% | 1,007 | $1,407 | $1.40 | $1,575 | $1.56 | +$168 | 11.9% | $11,272 | 17.9% |
| 2BR/2BA — 1,053 SF | 126 | 48.8% | 122 | 96.8% | 1,053 | $1,479 | $1.40 | $1,700 | $1.61 | +$221 | 14.9% | $14,541 | 18.2% |
| ↳ 2BR Blended | 186 | 72.1% | 180 | 96.8% | 1,038 | $1,456 | $1.40 | $1,668 | $1.61 | +$211 | 14.5% | $13,481 | 18.8% |
| Total / Wtd. Avg. | 258 | 100% | 251 | 97.3% | 957 | $1,393 | $1.46 | $1,590 | $1.66 | +$196 | 14.0% | $11,060 | 21.3% |
Market rents reflect post-renovation targets ($1,387 1BR / $1,668 2BR). Renovation scope: 1BR — paint cabinetry, vinyl plank flooring, fixtures, hardware ($4,839/unit · 38.6% ROC); 2BR — full kitchen package, flooring, bathroom finishes ($13,481/unit blended · 18.8% ROC). Blended: $11,060/unit · 21.3% ROC. Per rent roll as of March 2026.
Hudson Square · 5451 Olivia Michal Place, Westerville, OH 43081 · 9 photos
Critically, this acquisition comes with a well-documented, near-term mark-to-market opportunity that requires no capital outlay. Recent lease comparables at unrenovated, similarly-positioned assets in the immediate trade area demonstrate that the submarket is already absorbing rents approximately $100/month above Hudson Square's current in-place average — a gap attributable to below-market lease-up pricing and management inertia rather than any fundamental asset deficiency. This spread is recoverable at natural turnover under Moss Communities management without a single dollar of renovation spend.
The full rent bridge is best understood in two distinct phases. The first ~$100/month is a straightforward mark-to-market correction — captured organically as leases roll and the property is repositioned under the Moss Communities brand. The second ~$100/month is earned through the renovation program, rebranding, and amenity upgrades detailed in Pillar II — elevating the asset into the middle of the comp set, above lower-tier unrenovated product and below the premium commanded by 2023–2025 vintage assets. This two-tranche rent bridge is conservative by design: the first tranche carries no execution risk, and the second is supported by eight documented comparable transactions. Together, they underpin a post-stabilization blended rent of approximately $1,590/month — squarely in the mid-market of the Westerville trade area and well within demonstrated renter willingness to pay. The stabilized foundation de-risks the program entirely: the asset generates income while value is being created.
Phase 1 — Operational Reset, Branding & Entrance Repositioning (Months 0–6): Immediately post-acquisition, Moss Communities executes a full vendor rebid, staffing optimization, and deployment of its operating standards. The property is rebranded under the Moss Communities flag, with updated signage, entry sequence, and digital presence. Critically, the property entrance presents a high-ROI cosmetic upgrade opportunity: strategic improvements to the visual presentation and branding at the point of arrival — including enhanced landscaping, monument signage, and arrival sequence — would materially elevate market perception, support rent growth, and better align the asset with the expectations of the professional renter in this submarket. First impressions drive leasing velocity, and this investment is among the most capital-efficient available. The existing business center is concurrently repositioned as a dedicated co-working and private conferencing suite — a zero-cost amenity upgrade directly targeting the remote-work and hybrid professional renter that defines this submarket.
Phase 2 — Amenity Redesign & Common Area Capital (Months 3–12): Targeted common area capital bridges the gap to newer Class A product without overcapitalizing. The amenity lounge will undergo a complete redesign — the current layout is misaligned with the expectations of the modern renter, and a full repositioning of this space is essential to compete with 2021–2025 vintage product in the immediate trade area. Additionally, Mossanen Group sees compelling potential in repositioning the existing movie room as a private golf simulator suite — a high-demand, low-overhead amenity that has demonstrated strong resident engagement and retention in comparable suburban markets. Pool deck and fitness center receive cosmetic modernization. Secure refrigerated package lockers, EV-ready parking infrastructure (phased), and resident app-based service management are introduced — high-utility, low-OPEX additions that reinforce retention and differentiation.
Phase 3 — Precision Unit Renovation (Months 12–48): Renovations are executed exclusively on natural turnover, paced conservatively to maintain occupancy and avoid market-timing risk. The scope is cosmetic and cost-disciplined — appropriate for a 2012-vintage asset with sound mechanicals. Specific improvements include: painting existing shaker cabinetry (white or soft gray) rather than full replacement for maximum capital efficiency; modernized shower and bathroom finishes including updated fixtures, hardware, and surrounds; and full removal of living area carpet in favor of luxury vinyl plank flooring, consistent with the finish standard already established across the competitive comp set. LED lighting packages and updated hardware complete the scope. The result is a unit that reads contemporary and move-in ready — aligned with the aesthetic bar set by direct competitors. In-place rents trail renovated comps by $180/month (14.7%) on 1BR and $212/month (14.5%) on 2BR. The renovation budget is deliberately differentiated by unit type: $4,839/unit on 1BRs (38.6% ROC) — a light-touch cosmetic scope of painted cabinetry, vinyl plank flooring, and updated fixtures — and $13,481/unit blended on 2BRs (18.8% ROC) — a more comprehensive kitchen and bathroom package consistent with the higher rent premium achievable in larger units. Blended: $11,060/unit at 21.3% ROC. This scope is supported by a documented rent gap across eight direct comparables averaging $1,590/month versus Hudson Square's $1,393 in-place. No over-improvement, no speculative scope.
The Moss Communities Connection: The Moss Communities investment thesis is built on the premise that AI, remote work, and shifting lifestyle priorities are structurally expanding the role of the home — and that suburban, larger-format rental communities in high-growth, knowledge-economy markets will outperform. Hudson Square embodies this thesis: 957 SF average units, top-rated school district, proximity to $25B+ in committed employment investment, and a $118K+ average household income renter base that treats its home as workplace and community. By operating Hudson Square as a branded community rather than a commodity, Moss Communities creates durable retention, pricing power, and long-term value that passive ownership cannot replicate.
The business plan models a refinance in Year 5, conservatively underwritten at the same 4.50% rate and 65% LTV as the acquisition loan — returning approximately 70% of invested equity to partners mid-hold while materially de-risking the position. The refi resets to a new full IO period and unlocks post-refi distributions averaging 22.1% levered cash-on-cash across Years 6–10 (18.8% → 26.5%). Using the same rate for refi underwriting is intentionally conservative — any rate improvement at Year 5 represents additional upside not reflected in the base case.
Year 5 Sale Optionality: Depending on market conditions at the time, Mossanen Group retains the option to sell rather than refinance. A Year 5 disposition is projected to generate a levered IRR approximately 100 basis points higher than the 10-year hold — reflecting the compressed hold period and full return of capital. If the capital markets environment at Year 5 is favorable, a full exit will be evaluated to maximize partner returns. The refinance delivers strong cash-on-cash income for investors who remain in; the sale option maximizes total return if the market warrants it.
This opportunity is intentionally excluded from our base-case underwriting — it is presented here as identified, low-execution-risk upside. Upon approval, the conversion is expected to reduce annual real estate taxes by approximately $300,000, flowing directly and permanently to NOI. Capitalized at the underwritten exit cap rate, this represents approximately ~$5.5M of incremental asset value at disposition. On a return basis, the $300K annual NOI improvement translates to approximately 400 bps of additional levered IRR and meaningfully improves levered cash-on-cash across the hold period. This is a well-precedented, administratively straightforward process — and a compelling layer of return optionality that exists entirely outside the base-case investment thesis.
| Metric | Unlevered | Levered |
|---|---|---|
| Total Investment | $45.8M | $17.5M |
| Total Distributions | $98.0M | $53.2M |
| Net Profit | $52.2M | $35.7M |
| IRR | 9.2% | 15.0% |
| Equity Multiple | 2.2x | 3.0x |
| Profit — Cash Flow | 60% | 27% |
| Profit — Residual (Exit) | 40% | 73% |
| Metric | Value | Basis |
|---|---|---|
| Acquisition Loan Rate (Agency) | 4.50% | Fixed · 2.00% buydown · Full IO |
| In-Place Yield (Going-In Cap) | 5.53% | NOI / Offer Price |
| Year 5 Yield on Cost | 6.4% | Y5 NOI / Stabilized Basis |
| Trended Yield on Cost | 7.69% | Y10 NOI / Cost Basis |
| Spread (Untrended / Trended) | +43 bps / +244 bps | vs. Exit Cap |
| Exit Cap Rate | 5.25% | Year 10 |
| Year | Unlevered CoC | Levered CoC | Note |
|---|---|---|---|
| Year 1 | 5.3% | 1.4% | Rebranding, amenity redesign & unit renovation ramp |
| Year 2 | 5.3% | 2.0% | Unit renovations — lease-up of upgraded units |
| Year 3 | 5.5% | 3.0% | Unit renovations — accelerating rent premium capture |
| Year 4 | 5.8% | 4.3% | Unit renovations completing — NOI inflecting |
| Year 5 | 6.2% | 5.6% | Stabilized operations · pre-refinance peak NOI |
| Year 6 ★ Post-Refi | 6.4% | 18.8% | Equity returned to partners · distributions step up |
| Year 7 | 6.7% | 20.2% | |
| Year 8 | 6.9% | 21.7% | |
| Year 9 | 7.1% | 23.2% | |
| Year 10 | 7.2% | 26.5% |
★ The Year 5 refinance is the structural inflection point. Underwritten conservatively at the same 4.50% rate and 65% LTV as acquisition — returning meaningful LP equity mid-hold and resetting to a new full IO period. Post-refi distributions step up sharply and compound through exit.
| Uses | At Acquisition | At Stabilization | % Total | $/Unit | $/SF |
|---|---|---|---|---|---|
| Purchase Price | $44.00M | $44.00M | 86% | $170,543 | $178 |
| Closing Costs & Escrows | $1.26M | $1.26M | 2% | $4,892 | $5 |
| Financing Costs | $0.68M | $1.27M | 2% | $4,912 | $5 |
| Unit Renovations | — | $2.96M | 6% | $11,465 | $12 |
| Common Area Renos & CapEx | — | $1.54M | 4% | $7,277 | $8 |
| CM Fee | — | $0.34M | 1% | $1,308 | $1 |
| Total Uses | $45.94M | $51.36M | 100% | $199,088 | $208 |
| Sources | At Acquisition | At Stabilization | % Total | $/Unit | $/SF |
|---|---|---|---|---|---|
| Senior Loan (65.0% LTV) | $28.93M | $28.93M | 56% | $112,112 | $117 |
| LP Equity (75%) | $13.15M | $13.15M | 25% | $50,966 | $53 |
| GP Equity (25%) | $4.38M | $4.38M | 8% | $16,989 | $18 |
| Operating Cash Flow | — | $5.31M | 10% | $20,577 | $21 |
| Total Sources | $46.46M | $51.77M | 100% | $200,643 | $210 |
| ($M) | T-12 Hist. | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Potential Revenue | $4.17M | $4.38M | $4.62M | $4.90M | $5.21M | $5.51M | $5.71M | $5.88M | $6.05M | $6.23M | $6.42M |
| (-) Rent Loss / Vacancy | ($0.15M) | ($0.27M) | ($0.25M) | ($0.27M) | ($0.28M) | ($0.30M) | ($0.31M) | ($0.32M) | ($0.33M) | ($0.34M) | ($0.36M) |
| Other Income | $0.46M | $0.56M | $0.58M | $0.59M | $0.61M | $0.63M | $0.65M | $0.67M | $0.69M | $0.71M | $0.73M |
| Effective Gross Income | $4.48M | $4.67M | $4.94M | $5.23M | $5.53M | $5.84M | $6.04M | $6.22M | $6.41M | $6.60M | $6.80M |
| Real Estate Taxes | ($0.93M) | ($0.95M) | ($1.03M) | ($1.07M) | ($1.10M) | ($1.13M) | ($1.16M) | ($1.20M) | ($1.24M) | ($1.27M) | ($1.31M) |
| Insurance | ($0.09M) | ($0.13M) | ($0.13M) | ($0.14M) | ($0.14M) | ($0.15M) | ($0.15M) | ($0.15M) | ($0.16M) | ($0.16M) | ($0.17M) |
| Other OpEx (Payroll, Utilities, R&M, Mgmt) | ($1.19M) | ($1.11M) | ($1.14M) | ($1.18M) | ($1.22M) | ($1.26M) | ($1.30M) | ($1.34M) | ($1.37M) | ($1.48M) | ($1.52M) |
| Total Operating Expenses | ($2.21M) | ($2.19M) | ($2.31M) | ($2.38M) | ($2.46M) | ($2.54M) | ($2.61M) | ($2.69M) | ($2.77M) | ($2.85M) | ($2.93M) |
| Expense Ratio | 49% | 47% | 47% | 46% | 44% | 43% | 43% | 43% | 43% | 43% | 43% |
| Net Operating Income | $2.28M | $2.48M | $2.63M | $2.84M | $3.08M | $3.31M | $3.43M | $3.53M | $3.64M | $3.75M | $3.87M |
| (-) Unit Renovations | — | ($0.50M) | ($0.55M) | ($0.69M) | ($0.69M) | ($0.41M) | — | — | — | — | — |
| (-) Common Area & CapEx | — | ($0.22M) | ($0.22M) | ($0.12M) | ($0.12M) | ($0.39M) | ($0.12M) | ($0.12M) | ($0.12M) | ($0.12M) | — |
| (-) AM Fee / CM Fee / Reserves | — | ($0.21M) | ($0.21M) | ($0.21M) | ($0.21M) | ($0.21M) | ($0.16M) | ($0.16M) | ($0.16M) | ($0.16M) | ($0.15M) |
| Free Cash Flow | — | $1.56M | $1.65M | $1.82M | $2.06M | $2.29M | $3.15M | $3.25M | $3.36M | $3.47M | $3.71M |
| (-) Interest Expense | — | ($1.30M) | ($1.30M) | ($1.30M) | ($1.30M) | ($1.30M) | ($1.76M) | ($1.76M) | ($1.76M) | ($1.76M) | ($1.76M) |
| (-) Amortization | — | — | — | — | — | — | — | — | — | — | — |
| Levered Cash Flow | — | $0.25M | $0.35M | $0.52M | $0.75M | $10.53M ★ | $1.39M | $1.50M | $1.60M | $1.71M | $1.96M |
| Levered Cash-on-Cash | — | 1.4% | 2.0% | 3.0% | 4.3% | 5.6% → Refi ★ | 18.8% | 20.2% | 21.7% | 23.2% | 26.5% |
| DSCR | — | 1.91x | 2.02x | 2.18x | 2.36x | 2.54x | 1.95x | 2.01x | 2.07x | 2.13x | 2.20x |
| Yield on Cost | — | 5.3% | 5.3% | 5.5% | 5.8% | 6.2% | 6.4% | 6.7% | 6.9% | 7.1% | 7.2% |
| 2025 Population | 72,721 |
| 2030 Projected Population | 76,172 (+4.7%) |
| Median HHI (2025) | $118,125 |
| Projected HHI (2030) | $131,399 (+27.6%) |
| Households Earning $100K+ | 51% |
| Bachelor's Degree or Higher | 56% |
| White Collar Workers | 78% |
| Renter Occupied | 41% |
| Submarket | Westerville / New Albany / Delaware |
| Effective Rent | $1,525/month |
| Occupancy | 95.5% (+30 bps YoY) |
| 2025 Deliveries | 2,549 units |
| 2025 Net Absorption | 2,111 units |
| 4Q25 Deliveries | 388 units |
| YoY Rent Growth | +1.7% |
Westerville, Ohio ranks among the most affluent, educated, and desirable suburban communities in the Columbus MSA — and the broader market dynamics make a compelling case that the submarket is still in the early stages of a long-term transformation. With a 3-mile average household income of $118,125 — the local renter base is financially resilient, upwardly mobile, and unlikely to experience affordability-driven churn. 51% of households earn over $100,000; 56% hold bachelor's degrees or higher; 78% are white-collar workers.
Retail & Lifestyle Infrastructure: Westerville and the surrounding corridor offer an exceptional and expanding retail and lifestyle environment that directly supports renter demand and premium rent achievement. Easton Town Center — one of the premier open-air retail and entertainment destinations in the Midwest — is located approximately 15 minutes from Hudson Square. Easton is anchored by an extraordinary concentration of luxury and flagship retailers including Louis Vuitton, Gucci, Chanel, Rolex, Tiffany & Co., and Hermès, alongside aspirational brands such as Apple, Pottery Barn, Anthropologie, and Restoration Hardware. The dining scene is equally elevated, with high-end restaurant concepts and national chef-driven establishments creating a true live-work-dine destination. The presence of these brands is not incidental — Rolex and Louis Vuitton do not open stores in submarkets without documented purchasing power. It is a direct signal of the affluence and lifestyle expectations of the household base this corridor attracts. The arrival of these brands is not incidental — it reflects the purchasing power and lifestyle expectations of the household base this submarket attracts. Equally significant is the rapid evolution of New Albany, just 10 minutes from the property, where a wave of high-end retail, restaurant, and boutique fitness concepts has emerged in recent years. New Albany Market District and the broader mixed-use corridor represent a deliberate curating of amenities targeting the high-income professional household — the same demographic Hudson Square is purpose-built to serve. The continued retail investment in this corridor is a leading indicator of long-term demand, not a lagging one.
Renter Profile & Unit Mix: Hudson Square's core renter is the young professional in their late 20s to early 30s — dual-income, pre-family or early-family stage — for whom employment proximity, lifestyle amenities, and unit quality drive leasing decisions far more than school district ratings. The property's exclusive 1BR and 2BR unit mix directly targets and reinforces this demographic: the absence of 3-bedroom units structurally limits exposure to the family renter segment where school district quality becomes a primary decision factor.
Supply Dynamics: Despite 2,549 units delivered in the submarket in 2025, net absorption reached 2,111 units — and occupancy actually rose 30 bps year-over-year to 95.5%. This is a compelling demonstration of demand resiliency under peak supply pressure. The 4Q25 delivery pace of 388 units is manageable, and the forward pipeline is expected to normalize substantially in 2026–2027. At $174k/unit acquisition cost vs. $200–220k replacement cost, new construction economics do not pencil — a structural protection against future competitive supply.
Rent Growth: The 1.7% YoY rent growth in 2025 occurred during the highest supply year in recent memory. As the pipeline normalizes and the Intel/Anduril employment base builds through the late 2020s, organic rent growth is expected to accelerate — consistent with Mossanen Group's underwritten assumptions of 3–5% annually through the hold period.
| Project | Investment | Jobs | Avg. Salary | Distance | Status |
|---|---|---|---|---|---|
| Intel Ohio Semiconductor Campus | $20B+ | 3,000 permanent | $135,000 | ~15 min | Under construction · prod. 2030 |
| Anduril Arsenal-1 Defense Facility | $900M–$1B | 4,000+ by 2035 | $80–120K est. | ~20 min | Announced/funded |
| New Albany Business Park | $6B+ total | 9,000+ on-site | Various | ~10 min | Operational · expanding |
| Amazon AWS Data Centers | $3.5B | Significant | $90–130K est. | ~12 min | Operational & expanding |
| Google Columbus Expansion | $2.3B | Significant | $100K+ est. | ~30 min | Committed |
| LG Energy / Honda EV Plant | $4.4B | 2,200+ | $75–100K est. | ~40 min | Under construction |
| Amgen Biomanufacturing | $1.4B | Hundreds | $90K+ est. | ~20 min | Planned |
| Meta Prometheus AI Supercluster | Undisclosed | Significant | $120K+ est. | ~20 min | Announced |
| John Glenn Int'l Airport Expansion | $2.0B | Regional impact | Various | ~35 min | In progress |
| Total Proximate Investment | $25B+ | 20,000+ jobs | Decade-long demand driver for Westerville/Northeast Columbus housing market | ||
| # | Property | City | Dist. (mi) | Units | Built | Occ. | Avg SF | Avg Rent | $/SF |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Warner West | Westerville | 0.34 | 108 | 2012 | 95% | 848 | $1,259 | $1.57 |
| 2 | Arden Park | Westerville | 0.38 | 180 | 2018 | 95% | 880 | $1,253 | $1.44 |
| 3 | Albany Landings | Westerville | 0.27 | 272 | 2010 | 95% | 947 | $1,304 | $1.48 |
| S | Hudson Square (Subject) | Westerville | — | 258 | 2013 | 97.7% | 957 | $1,393 | $1.46 |
| 4 | The Woods at Perry Lane | Westerville | 0.21 | 168 | 2014 | 93% | 909 | $1,440 | $1.65 |
| 5 | Baxter Park | Westerville | 1.10 | 180 | 2021 | 97% | 970 | $1,588 | $1.53 |
| 6 | Hamilton Woods | Westerville | 0.19 | 174 | 2023 | 98% | 921 | $1,621 | $1.93 |
| 7 | Dalton | Westerville | 0.09 | 168 | 2023 | 96% | 1,012 | $1,764 | $1.93 |
| 8 | Fairmont | Westerville | 0.30 | 219 | 2025 | 90% | 928 | $1,935 | $2.10 |
| Comp Average (ex. Subject) | 184 | 95% | 927 | $1,514 | $1.63 | ||||
Properties sorted ascending by average in-place rent. Subject shown at current in-place rent of $1,393/mo — ranking 4th of 9 properties. Post-renovation target of $1,591 blended would rank 6th.
| Property | 1BR Rent | $/SF | vs. Subject |
|---|---|---|---|
| Warner West | $1,098 | $1.62 | –$134 |
| Arden Park | $1,170 | $1.68 | –$62 |
| Albany Landings | $1,213 | $1.57 | –$19 |
| Hudson Square (In-Place) | $1,232 | $1.65 | — |
| ↳ Post-Reno Target | $1,387 | $1.85 | +$155 |
| The Woods at Perry Lane | $1,370 | $1.77 | +$138 |
| Baxter Park | $1,400 | $1.47 | +$168 |
| Hamilton Woods | $1,409 | $2.06 | +$177 |
| Fairmont | $1,558 | $2.33 | +$326 |
| Dalton | $1,565 | $2.10 | +$333 |
Hudson Square's 1BR in-place rent of $1,232/mo ranks 4th lowest. Post-renovation target of $1,387 would rank 6th — above 5 of 8 comps.
| Property | 2BR Rent | $/SF | vs. Subject |
|---|---|---|---|
| Arden Park | $1,335 | $1.40 | –$121 |
| Albany Landings | $1,395 | $1.38 | –$61 |
| Warner West | $1,420 | $1.52 | –$36 |
| Hudson Square (In-Place) | $1,456 | $1.40 | — |
| ↳ Post-Reno Target | $1,668 | $1.60 | +$212 |
| The Woods at Perry Lane | $1,510 | $1.52 | +$54 |
| Baxter Park | $1,775 | $1.59 | +$319 |
| Hamilton Woods | $1,832 | $1.80 | +$376 |
| Dalton | $1,962 | $1.75 | +$506 |
| Fairmont | $1,999 | $1.86 | +$543 |
Hudson Square's 2BR post-reno target of $1,668/mo ranks 4th lowest — above Warner West, Albany Landings, Arden Park, and The Woods at Perry Lane, and above 5 of 8 comps.
Sorted ascending by price per unit. * Denotes transactions with tax abatement — economics may overstate true market pricing.
| Property | Submarket | Built | Units | Sale Date | Sale Price | Price/Unit | Price/SF | Cap Rate |
|---|---|---|---|---|---|---|---|---|
| The Gramercy New Albany | New Albany | 2012 | 322 | Sep-23 | $72,200,000 | $224,224 | $189 | 5.00% |
| Harrison Park * | Harrison West | 2013 | 108 | Mar-23 | $25,000,000 | $231,481 | $254 | 5.05% |
| District at Tuttle | Hilliard | 2015 | 228 | Oct-25 | $53,800,000 | $235,965 | $193 | 5.34% |
| Caldera House | Lewis Center | 2020 | 137 | Oct-25 | $33,000,000 | $240,876 | $240 | 5.28% |
| Kendall Park | Columbus | 2016 | 174 | Oct-24 | $42,108,000 | $242,000 | $120 | 5.15% |
| Camden Annex | New Albany | 2022 | 88 | Sep-23 | $22,500,000 | $255,682 | $245 | 5.25% |
| Vera on Broad * | Downtown | 2023 | 114 | Aug-25 | $29,300,000 | $257,018 | $305 | — |
| Camden | New Albany | 2022 | 192 | Oct-23 | $49,500,000 | $257,812 | $254 | 5.25% |
| Luxe at the Highlands | Worthington | 2019 | 166 | Jun-23 | $43,559,477 | $262,406 | $255 | 4.74% |
| Dalton Residences | New Albany | 2023 | 168 | Nov-24 | $44,184,000 | $263,000 | $260 | — |
| Founders Park * | Grandview | 2021 | 363 | Jul-25 | $98,000,000 | $269,972 | $354 | — |
| Makley Place * | Victorian Village | 2021 | 140 | Aug-25 | $37,800,000 | $270,000 | $368 | 5.34% |
| The Jerome * | Downtown | 2017 | 54 | Nov-22 | $14,800,000 | $274,074 | $319 | 3.48% |
| Luxe 88 * | Columbus | 2020 | 220 | Aug-21 | $65,000,000 | $295,455 | $289 | 4.88% |
| Fairmont * | New Albany | 2025 | 219 | Listing | $63,500,000 | $289,954 | $312 | 5.45% |
| Columbus Boutique Trio * | Grandview | 2021 | 330 | Under Contract | $115,000,000 | $348,485 | $378 | — |
| Comp Average — All (n=16) | — | $263,650 | $271 | 5.16% | ||||
| Comp Average — Non-Abated Only (n=8) | — | $247,746 | $220 | 5.14% | ||||
| ★ Hudson Square (Acquisition) | Westerville | 2013 | 258 | Q2 2026 | $44,500,000 | $172,481 | $180 | 5.53% |
Comparable new construction in the Columbus MSA is currently underwriting at ~$240,000 per unit in all-in replacement cost. The table below illustrates the cost stack and the meaningful discount at which Hudson Square is being acquired.
| Cost Component | $/Unit | % of Total |
|---|---|---|
| Land (Ground) | $15,000 – $20,000 | 6–8% |
| Hard Costs (Construction) | $155,000 | 65% |
| Soft Costs (Arch, Eng, Fees) | $65,000 | 27% |
| Total Replacement Cost | $235,000 – $240,000 | 100% |
| Exit Cap ↓ / Price → | $43,000,000 | $43,500,000 | $44,000,000 | $44,500,000 | $45,000,000 | $45,500,000 |
|---|---|---|---|---|---|---|
| 5.00% | 18.5% / 2.3x / 5.7% | 17.9% / 2.2x / 5.7% | 17.4% / 2.2x / 5.6% | 16.8% / 2.1x / 5.5% | 16.3% / 2.1x / 5.5% | 15.7% / 2.0x / 5.4% |
| 5.25% | 17.1% / 2.1x / 5.7% | 16.5% / 2.1x / 5.7% | 16.0% / 2.1x / 5.6% | 15.4% / 2.0x / 5.5% | 14.8% / 2.0x / 5.5% | 14.3% / 1.9x / 5.4% |
| 5.50% | 15.7% / 2.0x / 5.7% | 15.2% / 2.0x / 5.7% | 14.6% / 2.0x / 5.6% | 14.0% / 1.9x / 5.5% | 13.4% / 1.9x / 5.5% | 12.9% / 1.8x / 5.4% |
| 5.75% | 14.4% / 1.9x / 5.7% | 13.8% / 1.9x / 5.7% | 13.2% / 1.8x / 5.6% | 12.6% / 1.8x / 5.5% | 12.1% / 1.7x / 5.5% | 11.5% / 1.7x / 5.4% |
| 6.00% | 13.1% / 1.8x / 5.7% | 12.5% / 1.8x / 5.7% | 11.9% / 1.7x / 5.6% | 11.3% / 1.7x / 5.5% | 10.7% / 1.6x / 5.5% | 10.1% / 1.6x / 5.4% |
★ Base case: $44.5M entry / 5.25% exit cap · Format: IRR / Equity Multiple / Going-In Cap. Highlighted cell = base case intersection.
| Exit Cap ↓ / Price → | $43,000,000 | $43,500,000 | $44,000,000 | $44,500,000 | $45,000,000 | $45,500,000 |
|---|---|---|---|---|---|---|
| 5.00% | 16.9% / 3.3x / 5.7% | 16.5% / 3.3x / 5.7% | 16.1% / 3.2x / 5.6% | 15.8% / 3.2x / 5.5% | 15.4% / 3.1x / 5.5% | 15.0% / 3.0x / 5.4% |
| 5.25% | 16.1% / 3.2x / 5.7% | 15.7% / 3.2x / 5.7% | 15.3% / 3.1x / 5.6% | 15.0% / 3.0x / 5.5% | 14.6% / 3.0x / 5.5% | 14.2% / 2.9x / 5.4% |
| 5.50% | 15.3% / 3.1x / 5.7% | 14.9% / 3.0x / 5.7% | 14.6% / 3.0x / 5.6% | 14.2% / 2.9x / 5.5% | 13.8% / 2.9x / 5.5% | 13.5% / 2.8x / 5.4% |
| 5.75% | 14.6% / 3.0x / 5.7% | 14.2% / 3.0x / 5.7% | 13.8% / 2.9x / 5.6% | 13.5% / 2.8x / 5.5% | 13.1% / 2.8x / 5.5% | 12.8% / 2.7x / 5.4% |
| 6.00% | 13.9% / 2.9x / 5.7% | 13.5% / 2.8x / 5.7% | 13.2% / 2.8x / 5.6% | 12.8% / 2.7x / 5.5% | 12.5% / 2.7x / 5.5% | 12.1% / 2.6x / 5.4% |
★ Base case: $44.5M entry / 5.25% exit cap · Format: IRR / Equity Multiple / Going-In Cap. Highlighted cell = base case intersection.
The business plan is intentionally straightforward. The first layer of value creation — approximately $100/month of mark-to-market rent correction — requires no capital and no execution risk; it is simply a function of professional management and natural turnover. The second layer — an additional ~$100/month achieved through a disciplined renovation scope with a documented 21.2% blended return on cost — is supported by eight directly comparable properties already achieving those rents in the same submarket today. Neither layer requires the market to do anything it has not already done.
What makes this acquisition particularly compelling is the alignment of the capital structure with the macro demand cycle. The Year 5 refinance is timed to coincide with the completion of Intel's $28 billion semiconductor campus — the largest private investment in Ohio history — as well as the broader New Albany data center and logistics corridor buildout. By the time Mossanen Group refinances and resets the capital structure, the submarket will have absorbed tens of thousands of new high-wage jobs, and the organic rent growth embedded in the hold period will have meaningfully compressed the effective basis. The result is a capital return to partners at a point of maximum asset strength, with post-refi cash-on-cash returns projected at 26.5% average across Years 6–10 (22.7% → 31.6%) on remaining invested equity.
Mossanen Group is a vertically integrated real estate operating company with direct in-house capabilities across acquisitions, asset management, and property operations through its Moss Communities platform. This vertical integration is not incidental — it is the source of the firm's ability to execute on value-add programs at controlled cost, respond to market conditions in real time, and protect NOI through proactive management rather than third-party reliance. The firm has a proven track record of repositioning multifamily assets, having successfully executed similar renovation and rebranding programs across its portfolio. Hudson Square is, by design, among the more straightforward repositioning opportunities the firm has pursued — the asset is already stabilized, the comps are already achieving the target rents, and the renovation scope is well-defined with minimal execution risk.
We are buying good real estate — a well-located, institutionally maintained, high-occupancy asset — with embedded low-hanging-fruit upside already visible in the comp set. The downside is protected by basis; the upside is supported by evidence.