- Significant Upside Opportunity of $126/Unit/Month with Strategic Interior Renovations
- 4 Year Effective Age and Significantly Below Replacement Cost
- Fully Amortizing, Assumable 3.88% Fixed Rate HUD Debt
- Strong Day One Yield
- Central St. Louis Location Close to Dining, Shopping, & Entertainment
- In-Place Hap Contract Offers Economic Resiliency Through Government-Backed Subsidized Rental Payments
- Demonstrated Value-Add Upside in the Submarket
Significant Upside Opportunity of $126/Unit/Month with Strategic Interior Renovations
The West End Portfolio allows new ownership to realize significant rent premiums of $126/unit/month on average through the completion of uniform cosmetic interior unit upgrades & modernizations including new appliances, painted or new cabinets, resurfaced countertops, a modern paint scheme, and upgraded fixtures.
4 Year Effective Age and Significantly Below Replacement Cost
The West End Portfolio consists of two historic buildings fully rehabbed in 2020, offering new ownership the opportunity to own multiple well-located assets with a 4-year effective age significantly below replacement cost.
Fully Amortizing, Assumable 3.88% Fixed Rate HUD Debt
In 2021, Ownership was able to acquire highly attractive HUD debt on the property which can be assumed by a purchaser, allowing for a high leverage acquisition with favorable financing. The terms of the assumable debt are as follows:
• Servicer – Dwight Capital
• Interest Rate – 3.88% (plus 35 bps MIP)
• Amortization – 40 Years/480 Months
• Original Balance – $6,310,535
• Current Balance (12/1/2023) – $6,155,591
• Origination Date – July 2021
• Maturity Date – July 2061
• Combined Monthly Debt Service Payment (P&I) – $27,691