- Well Positioned Asset Primed for Value-Add Implementation
- Immediate Upside Through LIHTC Max Allowable Rents
- Further Upside via Conversion to Market Rate
- Highly Sought-After, Supply-Constricted Submarket
- Demonstrated Value-Add Upside in Submarket
- Unparalleled Frontage Along Major Thoroughfare
- Offered Free & Clear of Existing Debt
Well Positioned Asset Primed for Value-Add Implementation
Current ownership has recently invested a significant amount of capital into the property. In the last two years, total investment is approximately $2MM, which includes all new condensers throughout, exterior lighting upgrades, new dumpster enclosures, as well as interior modernizations completed in 70 units. The recent capital expenditure allows for new ownership to focus solely on driving top-end rental growth by way of completing interior upgrades on remaining units and strategic exterior upgrades.
Immediate Upside Through LIHTC Max Allowable Rents
Kingston Apartments is subject to a LURA through 2024 & 2029. While income restrictions do apply, the asset features average in-place rents that are ~$350 per unit/per month below the average max allowable rents currently approved by the Missouri Housing Development Commission (MHDC). Under the current LURA, new ownership will have a clear and immediate path to significantly increase revenues by raising rents to an average max allowable rent of $1,026 per unit/per month!
Further Upside via Conversion to Market Rate
As soon as December 2024, new ownership will have a rare opportunity to capture even further rental upside as 200 Kingston Drive (36 total units) will no longer be subject the current LURA. With all three remaining parcels in the final five years of their Extended Use Periods, Kingston Apartments is perfectly positioned for new ownership to unlock tremendous upside through bringing vacant units back online, completing interior renovations and strategic exterior upgrades, as well as completing a property-wide conversion to market rate.
