The Property | An iconic and well-known property in the Northland submarket with best-in-class amenities in a prime location near two of KC’s largest employers.
94% Current Occupancy | The property is performing and generating immediate cash flow with below-market rents.
Strong Value-Add | 3-year renovation plan to upgrade interior units, improve amenities, and update exteriors.
The property was built in 1997 and is very well located in the Northland submarket which has seen the highest local population growth of 18.1% and employment growth of 23%.2% over the past 10 years.
The property sits on over 40 acres consisting of 54 buildings, 2 lakes, 2 resort style swimming pools, lighted tennis courts, Starbucks coffee bar, state of the art business center, commercial grade fitness center, clubhouse and outdoor grilling and picnic areas. At acquisition the property was 95% occupied and historically has been 96% occupied for the past 6 years.
Attractive 10-year fixed rate debt at 4.04%, 70.5% LTV and 63% LTC was placed on the property and the business plan consists of improving operations and renovating 374-unit interiors to increase the in-place rents of $884/month by $180 per month per renovated unit. The investment is projected to provide our Fund with an annualized ROI of 19.1%.
Our investment was sourced from a long-standing Operating Partner that we have been successfully investing with for many years and this marks our 10th investment with them. Members of our operating partners’ team (who also co-invested into the opportunity) include the 9th largest apartment management company and 17th largest apartment owners in the U.S. In addition, they bring intimate local knowledge and experience to the table as they already own and operate over 1,300 units in the area.