Mission, Kan.—Landmark Realty of San Francisco has acquired Bridges at Foxridge, a multifamily property in Mission, Kan., from Great Neck, N.Y.-based Sterling Equities for an undisclosed price. The 317-unit property is at 5250 Foxridge Dr in suburban Kansas City.
Originally developed between 1966 and 1973, the property offers some of the largest units in the submarket, with an overall average size of 1,267 square feet. Common amenities include a swimming pool, fenced dog park, garages and carports, children’s playground, fitness center, tennis court and clubhouse with full kitchen, and Wi-Fi.
Berkadia Kansas City senior director Michael Sullivan and directors Grant Kollman and Brett Meinzer, along with managing director Alex Blagojevich of the Chicago office, represented the seller in the deal. Also, managing director John Schorgl from the Kansas City Mortgage Banking staff worked with Fannie Mae on behalf of the borrower to obtain a fully leveraged acquisition loan. The Fannie Mae originated loan offers a 10-year term with 36 months of interest only payments at an unspecified rate, and a loan-to-value ratio of 80 percent.
“This sale is a clear indication that buyer demand remains strong, and investors are willing to lower their yield requirements in a competitive market,” said Meinzer. The transaction represents a cap rate of 5.64 percent and a market high in terms of price per unit for unrenovated 1960s and ’70s product, he added.
“What we experienced is that numerous buying groups are changing their strategy to acquire not only high-quality, newer assets, but also older product assets in strong markets like Kansas City.”
Kansas City has had a robust apartment market in recent years, though there’s some indication that an influx of new product might slow rental growth down, as it has in a number of markets. Colliers International reported recently that 4,141 new rental units were delivered in 2016, and 6,163 units were under construction as of the beginning of 2017, with 2,586 on the drawing board.