Landmark Realty Acquires Suburban Kansas City Apartments | Multi-Housing News
KANSAS CITY, Mo. – February 13, 2017 – Berkadia announced today the combined sale and financing of the Bridges at Foxridge, a multifamily property in Mission, Kansas. Landmark Realty of San Francisco purchased the property from Great Neck, New York-based Sterling Equities. The deal was completed on January 30.
The Berkadia Kansas City Investment Sales team of Senior Director Michael Sullivan and Directors Grant Kollman and Brett Meinzer, along with Managing Director Alex Blagojevich of the Chicago office, represented the seller. In addition, Managing Director John Schorgl from the Kansas City Mortgage Banking team worked with Fannie Mae on behalf of the borrower to obtain a fully-leveraged acquisition loan.
“This sale is a clear indication that buyer demand remains strong, and investors are willing to lower their yield requirements in a competitive market,” said Meinzer. “The transaction represents a T12 cap rate of 5.64 percent and a market high in terms of price per unit for unrenovated 1960’s/1970’s product. What we experienced is that numerous buying groups are changing their strategy to acquire not only high-quality, newer assets, but also older product assets in strong markets like Kansas City.”
The Fannie Mae originated loan offers a 10-year term with 36 months of interest only payments at a favorable rate, and a loan-to-value ratio of 80 percent.
“The power of Berkadia’s integrated platform was on full display with this transaction, as our investment sales team represented the seller and the buyer elected to tap into our mortgage banking capabilities,” added Schorgl. “Our ability to communicate directly with both parties streamlined the transfer of information, allowing us to complete the transaction in just 53 days, inclusive of both Thanksgiving and Christmas.”
Constructed between 1966 and 1973, the fully amenitized 317-unit Bridges at Foxridge is located at 5250 Foxridge Drive, affording convenient access to The University of Kansas Hospital and downtown Kansas City. The property offers some of the largest units in the submarket with an overall average size of 1,267 square feet. Community amenities include a swimming pool, fenced dog park, garages and carports, children’s playground, fitness center, tennis court, and clubhouse with full kitchen, complimentary computers and Wi-Fi.