- Long-Standing Owner-Operator
- Extremely Clean, Well-Maintained Asset
- Demonstrated Value-Add Upside in the Submarket
- Basis Significantly Below Replacement Cost
- Offered Free and Clear of Existing Debt
Long-Standing in Place Owner-Operator
Current ownership has employed a long-term conservative strategy in lieu of maximizing Net Operating Income, as illustrated by the Property’s below-market rents and high historical occupancy. As a result, the property is ideally positioned for new ownership to add substantial value through a light value-add strategy that will result in the ability to move rents to market. In addition, there is a clear opportunity to streamline operations and bring expenses in-line with the market. St. Louis County has seen approximately 10% rent increases YOY on as-is units, allowing new ownership to enjoy this market tailwind.
Clean, Well-Maintained Asset
Current Long-Term ownership has maintained the asset to the highest of standards, allowing the next owner to focus their capital expenditures on items that will immediately result in a corresponding revenue increase. Residents of Lilac Court consistently note that the cleanliness of the property is what attracted them to the community in the first place. The asset is one of the best-kept secrets in the Village of Riverview, as can be seen in the high historical occupancy.
Demonstrated Value Add in the Submarket
Located less than 1 mile from Lilac Court is Riverview Park Place. Riverview Park Place has successfully executed on value-add property and unit upgrades. Further demonstrating the viability of rent upside, both Nico Terrace and Villa St. Cyr Apartments have executed interior unit upgrades in the same submarket. By completing unit upgrades with similar finishes, Lilac Court achieves the proven rents at Riverview Park Place and Villa St. Cry. With upgraded comparable properties achieving average rental rates of nearly $100 per month higher than the in-place rents at Lilac Court, there is a clear path for new ownership to increase rents through strategic unit interior renovations.
