History is written into the streets of Columbus’ Olde Towne East neighborhood, where generations of architecture reflect the area’s evolution just east of downtown. But tucked among its older buildings, newer multifamily properties are adding another dimension to the neighborhood’s real estate landscape.
One of them, a 10-unit apartment building at 1240 Oak Street, recently changed hands for $2.05 million.
The two-story brick building went up in 2023, bringing modern apartment living to a neighborhood shaped by more than a century of development. Inside, residents have contemporary kitchens and their own laundry facilities. The building’s mix of one- and two-bedroom apartments offers options for different households.
There’s another feature that isn’t immediately visible from the street. The property benefits from a tax abatement, an important consideration for investors evaluating the building’s operating expenses.
Arthur Kaplan, Senior Vice President of Investment Sales at Anchor Retail, handled the transaction, which closed at $2,050,000.
The sale offers a closer look at a changing Columbus neighborhood and the financial considerations behind a newer multifamily investment.
A New Chapter for an Established Neighborhood
Olde Towne East tells the story of Columbus through its architecture. Historic homes line residential streets just east of downtown, while newer developments are finding their place within a neighborhood whose character took generations to build.
At 1240 Oak Street, that old-meets-new story takes shape in a two-story brick apartment building completed in 2023.
The location offers an appealing balance. Residents can enjoy the atmosphere of an established neighborhood without giving up convenient access to Downtown Columbus. Nearby dining and neighborhood businesses add to the appeal, while public transportation connects the area to destinations beyond Olde Towne East.
For renters who want to live close to the city’s center without being surrounded by downtown’s larger buildings and busier streets, that setting offers an alternative worth considering.
And the building itself brings modern conveniences to the neighborhood:
- 10 apartments: Seven one-bedroom and three two-bedroom residences
- Recent construction: Built in 2023, with approximately 7,578 square feet
- Modern interiors: Contemporary kitchens and in-unit laundry
- Parking: Rear surface parking for residents
- Investment feature: An existing property tax abatement
For an investor, the appeal extends beyond the apartments themselves. A relatively new building in an established neighborhood offers a different ownership proposition from an older property that may need significant renovations. The proximity to downtown adds another consideration for prospective renters, while the property’s recent construction may reduce some near-term maintenance concerns.
The tax abatement introduces a financial advantage worth examining more closely.
The Financial Detail You Can’t See from the Sidewalk
Not everything that makes an apartment building attractive to investors is visible during a property tour.
At 1240 Oak Street, one of those less obvious features is its property tax abatement.
For multifamily investors, property taxes can make a meaningful difference in a building’s bottom line. An abatement can reduce that expense during an approved period, leaving more of the property’s rental income available after operating costs.
In fact, the property’s financial projections estimated property taxes at approximately $158 per month under the existing abatement.
That matters when buyers evaluate net operating income; a key measure used to determine the value of an income-producing property.
But tax abatements come with an expiration date. Investors need to know how much time remains on the benefit and what the property’s tax obligations could look like afterward.
For 1240 Oak Street, the abatement adds an important dimension to the investment story. Its value isn’t simply in the potential tax savings today, but in how those savings fit into the property’s longer-term financial outlook.
What the $2.05 Million Transaction Tells Us
When Arthur Kaplan of Anchor Retail closed the $2.05 million sale of 1240 Oak Street, the price averaged $205,000 per apartment.
1240 Oak Street Multifamily Sale: Transaction Snapshot
| Transaction Detail | Property Information |
| Property address | 1240 Oak Street, Columbus, OH 43205 |
| Neighborhood | Olde Towne East |
| Sale price | $2,050,000 |
| Price per apartment | $205,000 |
| Property type | Multifamily apartment building |
| Number of apartments | 10 |
| Year built | 2023 |
| Building size | 7,578 square feet |
| Tax status | Property tax abatement |
| Investment sales broker | Arthur Kaplan, Anchor Retail |
For owners of other multifamily properties in Columbus, that $205,000-per-unit figure offers a useful point of comparison. But it also raises an interesting question: How much can two apartment buildings with the same number of units really have in common?
Consider another 10-unit property just a few streets away. It might have been built decades earlier, with aging mechanical systems or apartments that need update. Its rental income could tell a different story, even though the building contains the same number of units.
That’s why a price-per-unit comparison only goes so far.
The sale of 1240 Oak Street establishes a recent transaction reference in Olde Towne East. For property owners considering a sale, the transaction illustrates why understanding a building’s individual strengths can be just as important as studying comparable sales in the surrounding market.
The Value of Knowing the Market
Every apartment building has a history, but its next chapter often begins with understanding its place in the market.
For owners in Columbus, the sale of 1240 Oak Street offers a recent example of how an individual property’s characteristics enter the conversation about value. The closing price provides a benchmark, while the story behind the building offers context that numbers alone cannot capture.
Arthur Kaplan brings that perspective to his work as Senior Vice President of Investment Sales at Anchor Retail. Having established the firm’s Columbus office, he draws on experience in commercial real estate acquisitions, dispositions, and development when working with property owners and investors throughout Central Ohio.
For owners considering a sale, the first step isn’t necessarily putting a property on the market. It’s understanding what they own, how buyers might evaluate it, and where it fits within today’s investment landscape.
Considering the sale of a multifamily property in Columbus? Connect with Arthur Kaplan to discuss your property’s value and explore your options.
Frequently Asked Questions About Columbus Multifamily Investments
How do you value an apartment building?
An apartment building’s value depends largely on its income-producing potential. Commercial real estate professionals examine net operating income (NOI), which measures rental revenue after operating expenses, and compare the property with recent sales of similar buildings.
Price per unit provides another useful benchmark. For example, Anchor Retail’s $2.05 million sale of 1240 Oak Street averaged $205,000 per apartment. However, differences in rental income, building conditions, and operating costs can significantly affect the value of otherwise similar properties.
How long does tax abatement last?
Property tax abatements vary by municipality, incentive program, and the terms of the original approval. In Columbus, qualifying residential developments may receive tax incentives through designated Community Reinvestment Areas.
Before purchasing or selling a tax-abated apartment building, owners and investors should verify the remaining abatement period and estimate how property taxes could change after expiration. Those future expenses can influence a property’s long-term investment value.
What is a good cap rate for a multi-family?
A good multifamily cap rate depends on the property’s location, condition, income stability, and investment risk. There is no universal percentage that applies to every apartment building.
Investors calculate the capitalization rate by dividing annual net operating income by the property’s purchase price or market value. Higher cap rates may indicate greater income potential relative to the purchase price, but they can also reflect additional risk.
Comparing cap rates among similar multifamily properties in the Columbus market provides more meaningful insight than relying on a single national benchmark.
