Equus Capital Sells Kansas City Townhomes
Previous ownership completed more than $2.7 million worth of value-add upgrades.
The clubhouse at Madison Overland Park. Image courtesy of Equus Capital Partners
Equus Capital Partners has sold Madison Overland Park, a 32-building, 200-unit garden-style townhome community located in Overland Park, Kan. The fund manager sold the property to an unnamed buyer on behalf Equus Investment Partnership XI, L.P., a vintage-focused value-add investment fund that originated in 2018.
The sale follows the conclusion of a $2.7 million capital improvement program made around the property’s exteriors, interiors and amenity spaces.
Equus Senior Vice President Christopher Locatell and Vice President Andrew Holloway managed the transaction. Jeff Stingley, executive vice president at CBRE’s Kansas City office, represented the seller.
A campaign of upgrades
According to Yardi Matrix information, Madison Overland Park was built in 1999 and was owned by Bluerock Real Estate since 2008. Equus purchased the property in 2019 for $30.9 million, subject to a $23.2 million loan from Fannie Mae.
Over the course of its nearly five-year ownership, the firm spent $2.7 million on repainting the property’s building exteriors, renovating unit interiors and upgrading the clubhouse, fitness center and dog park. Equus’ renovations to the apartments themselves include the addition of painted kitchen cabinets, granite countertops, tile backsplashes, plank flooring, brushed nickel fixtures and USB ports.
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Madison Overland Park spans 17.5 acres and offers residents living arrangements of two- and three-bedroom townhome style units averaging 1,430 square feet, which feature attached garages and covered porches. Outside of Equus’ upgrades, other amenities around the property include a swimming pool, playground and landscaped courtyards flanked by walking trails.
Located at 13900 Newton St., Madison Overland Park sits half a mile away from an onramp to Interstate 69, which directly feeds into connections to Downtown Kansas City. Equidistant to the highway is a cluster of retail and entertainment offerings while an outdoor recreation complex sits roughly two miles to the West.
Exceeding expectations
Kansas City remains a bulwark of the Midwest multifamily performance’s strength relative to its size. Further, the area boasts a rare combination of high demand and widespread affordability.
A July 2023 Multi-Housing News analysis of the nation’s most affordable rental markets ranked the city in first place with an average renter by necessity segment of $1,031. According to a August 2023 report from Yardi Matrix, as of June 2023, the city has 6,890 units in its pipeline, nearly triple the number of starts in comparison to the year prior.
