- Substantial Future Upside Through Market Rate Conversion
- Macro-Economic Trends Provide A Tailwind For Rent Growth
- Huge Rental Upside Demonstrated In The Submarket
- Prominent Interstate Accessibility, Frontage & Great Visibility
- Prime Location Near Retail, Restaurants & Entertainment Venues
- Offered Free And Clear Of Existing Debt
Opportunity for Substantial Future Upside w/Market Rate Conversion
Stonegate Meadows is currently subject to a LURA that restricts the rents that can be charged at the property until 2032. With the end of the LURA period quickly approaching, the continuation of strategic renovations to the interior finish package will allow for significant rental premiums similar to that of the neighboring competitive assets. This conversion to market rate will unlock an uncapped amount of value for the asset!
Huge Rental Upside – Already Proven in the Submarket!
Located just half a mile from Stonegate Meadows is Whispering Lake Apartments, which has successfully executed on property and unit upgrades. Further demonstrating the viability of rent upside, Eastwood Crossings is also in the process of property-wide upgrades and has successfully executed interior unit upgrades.
Once out of the current LURA, substantial rental upside is achievable by completing interior unit upgrades, enhancing the exterior, and further bolstering the amenity package. Post renovation, Stonegate Meadows will be able to achieve rents alongside the rents of Whispering Lake Apartments and Eastwood Crossings, both similarly upgraded properties within the submarket.
With the upgraded comparable properties nearby achieving average rental rates of nearly $50+ per unit (monthly) above in-place rents at Stonegate Meadows, there’s clearly remarkable potential for long-term rental upside.
Macro-Economic Trends Fuel Strong Tailwind for Rent Growth
Income and wage growth across the country caused significant increases in AMIs nationwide, according to the newest HUD report released in April 2022. The report also indicated that the median family income for the Kansas City metro increased from $86,600 in 2021 to $97,700 in 2022, which equates to an 11%+ increase in the AMI! This macro-economic tailwind will enable new ownership the ability to absorb the current loss-to-lease quickly given the expanded tenant pool resulting from recent AMI increases.
