The Worthington, an apartment complex just outside the Central Business District, has a new owner, a new name and soon a new look.
New York-based investment firm URS Capital Partners bought the three-story, 66-unit apartment property at 735 S. Second St. from a Florida-based investment company. URS Capital Partners paid $4.77 million in August, according to county property records.
“Louisville has been a target of ours for the last several years,” said Christopher Urso, managing partner of URS Capital Partners. “We like the job prospects in Louisville, the diverse economy.”
The company has renamed the development Urban Flats and is investing $750,000 in exterior and interior renovations.
Renovations include repainting the exterior; new signage; adding covered seating, an outdoor kitchen and game area to the rooftop deck; installing new flooring and lighting; buying new fitness equipment; and purchasing a new pool table and television for the clubhouse.
URS Capital Partners wants to make it “a retreat in the city,” Urso said. Renovations to the exterior and common spaces are expected to wrap up in February.
The company also is gradually upgrading the apartments with completely redone kitchens, new hardware and modern finishes. Six units already have been renovated.
“It’s night and day from what was there,” he said.
The apartment building is about 80 percent occupied, and Urso said the company would renovate new units as they become vacant. However, URS Capital Partners also is keeping some apartment units as they were to give potential tenants options.
Rental rates start at $735 for a one-bedroom unit that hasn’t been renovated and $875 for a renovated one-bedroom unit. Rates go as high as $1,175 for a large two-bedroom, two-bathroom unit.
Urban Flats is URS Capital Partners’ first investment property in Louisville and its first urban property, Urso said. It also is smaller than the firm’s typical property.
The company traditionally invests in 150- to 300-unit suburban, garden-style developments, he said, but it was looking to get its foot in the door in Louisville, and the Second Street apartments were well-maintained.
“It was just dated, and that was the opportunity that we saw,” Urso said. “I love the energy when we go downtown.”
URS Capital Partners is on the look out for more investment properties in Louisville.
“There are good prospects for long-term growth,” Urso said, “and we plan on being down there for a long time.”