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Summary

Prosperity CRE is excited to exclusively announce, to our long-time subscribers, that we are under contract for the purchase of Regency North Apartments, our second multifamily acquisition in the highly desirable Northland submarket of the Kansas City MSA which is located adjacent to the Village of Gladstone.
 
Regency North is an attractive 180-unit apartment complex, built in 1970 and renovated in 2009 within 15 minutes drive of Downtown Kansas City, the new $800 million Meta Data Center, the $1.3 billion KCI 29 Logistics Development, and the upgraded Kansas City International Airport with its $1.3 billion modernized terminal complex.
 
While the property has had strong 6.6% year-over-year rent growth, and 98% occupancy, the interiors of the apartment units have not been upgraded since 2009, giving us the opportunity to upgrade units, increase rents, and significantly increase the overall value of the property.
 

Why We Like This Deal:

    • Perfect Value-Add Scenario: The property has been well-maintained by the current institutional owner, so deferred maintenance is relatively minor. However, the apartment unit interiors have not been updated since 2009. We conservatively estimate increasing average rents ~$167/month. Once all units have been updated, we estimate increasing the value of the property by approximately 49%.

    • Strong Renter Demand: Regency North Apartments is located in the highly desirable Northland submarket of Kansas City. Highly rated schools and job and wage growth are driving migration into the submarket, driving strong demand for rental housing.

    • Desirable Neighborhood: Regency North Apartments is strategically located near employment, retailers, and highway connectivity. It’s also located in a highly desirable school district, and in a neighborhood with median home values above both Missouri’s and the US’s median home values. It’s also in a submarket that has experienced 15%+ job growth and 7.5+ wage growth in the last two years.

    • Kansas City’s Vibrant Economy: Kansas City has attracted new corporate residents from across the country, while also supporting the expansion of many local companies. The metro boasts a broad range of industries ranging from financial services to data centers. The region has also matured into a technology hub and is now commonly referred to as the “Silicon Prairie” with Google, Meta and Cerner Corp. recently making large investments into their infrastructure in the region. The area’s diverse economy, talented labor pool, and low cost of living have supported robust job growth.

Business Plan:

    • Renovate 100% of the units within 24-30 months; Hold 3-5 years for cash flow and upside

    • Spend an average $7600 per unit for premium interior upgrades from the existing classic units targeting an average $159 premium across all units

    • Modernize exteriors with landscaping, paint trim, and new signage/branding

    • Additional capital spend for amenities such as Bark Park, BBQ Station, and Pickle Ball Court

Targeted Investor Returns:

    • Reg D 506(b) Exemption – sophisticated and accredited investors only

    • Please register on the investor portal to view detailed information

Timeline:

    • 11/20/2022 – Investment summary available 
    • 12/15/2022 – PPM available and funding begins
    • 12/31/2022 – Signed investment documents and all funds in
    • 01/15/2023 ~ Closing Date

Limited Investor Spots Available!
Please note that over 50% of our equity has already been committed, so the remaining spots will fill up quickly. Since this is a first come, first serve opportunity, you can reserve your spot by clicking the button above and registering on the investor portal.

 

 

**Projected returns are based on the current underwriting. Due Diligence is still being conducted and specific loan terms have not been finalized. Final projected investor returns will be provided in the offering documents.

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