- Boutique community with large floor plans, best-in-class finishes and limited direct competition
- Full, on-site staffing included in operating expenses
- High yield investment | Offered at upper 6% in-place cap rate
- Potential to increase rents to market rates
- Straightforward expense reductions possible through utility and energy efficiency
- Convenient location just minutes from Downtown Salina’s $160MM redevelopment
- Includes additional land parcel for development in an Opportunity Zone
Boutique community with large floor plans, best-in-class finishes and limited direct competition
Residences 600 provides a unique, high-quality boutique environment in a strategic Salina, KS location with limited direct market competitors. Considering the property rarely sees a vacancy and has established itself as a true, ‘best-in-class’ community, there is strong potential for continued organic rent growth for a future buyer. In addition, Residence 600 offers a highly marketable unit mix large floorplans that average nearly 1,300 SF, creating the type of ‘at home’ feel that is so sought after in the age-restricted market. In addition, the developers of this property spared no expense outfitting the unit interiors, utilizing the very best quality materials throughout including heated tile floors, private patio or balcony, and private gourmet kitchen. They also used thoughtful design and cutting-edge amenities such as elevated electric outlets, ergonomic appliance placement, and an in-ceiling mobility track installed in each unit, allowing a tenant to move throughout the unit without having to use their wheelchair. These unique amenities were designed specifically to allow the typical senior tenant to age in place, while maintaining their independence for as long as possible without the risk of a potentially dangerous and expensive move. The large square footage and exceptional built-in features places Residence 600 at the very upper end of the competitive set. In addition, they allow management the ability to directly compete with the rental and homebuying market, which is mired in one of the most competitive environments in decades due to a combination of low interest rates, the slow pace of new construction and nonstop demand coming out of both the pandemic and a surge of new residents streaming into the city as local employers continue to expand operations.
Hybrid operations with pass-through services amenities
The community offers concierge services connecting residents with various independent vendors throughout the city, based on specific needs. Generally, the contracted services (skilled nursing, rehabs, pill service, etc.) are agreed between vendor and resident and billing occurs between the two parties. While some charges (meals, cleaning, Lifeline, etc.) do initially hit the property’s expense statement, the ultimate responsibility for the payment typically ends up back on the resident. Rather than monetizing each of these individual services, the current operator includes them as part of an elite package that puts the suite of services offered at the property among – if not the – best in market.
This hybrid concierge model allows the property to increase its bottom-line revenue by implementing a fully operational suite of services with pass-through charges and a full schedule of service fees to be charged in exchange for these same services.
