In December 2021 Pacific Sands Funds closed escrow on a 54-unit apartment project (Brookside Apartments) for $3.025 million, or $56k per door, in Independence, MO. The deal is anticipated to close by year-end 2021.
The city of Independence is an eastern suburb off Interstate 70 that has good access to key economic centers in Kansas City. The Chiefs and Royals stadiums are contiguous to Independence. The property shares good synergy with a number of retail services and is in a strong middle-income residential community.
The deal is off-market and was brought to us by a local broker with whom we have a strong relationship. We believe the acquisition price is slightly under-market, as it was never exposed to the open market. Our capital improvement plan will consist of interior upgrades to a number of the units, as well as to the exterior and common areas. Based on the opinions of our local broker and property manager, the current rental rates for the property appear to be under market with upside in rents after capital improvements. Additionally, there is also room to largely improve occupancy through better management and marketing of the property. We anticipate finishing all renovation work within the first 14 months of ownership while improving rental income and vacancy to stabilization within the first 18 months.