Grand Vue Townhomes, Kansas City, Missouri

Grand Vue Townhomes
Kansas City, Missouri

Address: 11717-11720, 11730-11740, 11800-11828 Newton Ave.
Kansas City, MO 64134

Year Built: Phase I 1974, Phase II 1991

Number of Units: 40

Unit Mix:

• 8 2BD
• 32 3BD

Structure:

•  Exterior: Wood framing and siding
•  Roof: Flat – Pitched composite shingle
•  Parking Lot: Concrete/Garage

Also included in the 3- property Kansas City portfolio was the 40-unit Grand Vue Townhomes. This property is located in a family friendly, mixed use neighborhood where single-family homes share the same streets with multi-family properties, consisting mostly of duplexes. The larger unit size townhomes are particularly attractive to families. Its only a nine minute car ride away from local attraction Longview Lake with boating, fishing, paved trails, woodlands, wetlands, camping, pavilions and beaches.

Although in very good condition, inspections of the Grand Vue Townhomes revealed some initial repairs were needed to bring it up to the level expected of properties in the portfolio. The cost of the needed repairs was $30k, including soffit and fascia repair, gutter work, landscaping, and roof repair.

The 3-property portfolio was offered before it was opened up to the market. The Grand Vue Townhomes was purchased for $2.2 Million on June 8, 2016, which is around an 8% cap rate in a 6% cap rate market. Management considers this another off market win – a testament to how building the right relationships have been instrumental in the fund’s success.

In addition to the initial repairs, Grand Vue Apartments is being included in the 10-year rehab plan for all three properties, creating a financial structure intended to minimize future expenses while maximizing the property’s potential, driving up rents and investor returns. With all of the repair, maintenance and CapEx reserves budgeted, the goal is to limit variances in the returns and provide investors with a robust and stable payout. With this plan in place, the first year cash on cash return on investment for Grand Vue Townhomes is projected to be 14.5% at current rents, increasing to a projected 20.6% in year two.  As of the end of Q2 2016, this property was 93% leased with only 3 vacant units.