Sherman Residential Buys Kansas City-Area Asset

Sherman Residential has acquired The Donovan, a 327-unit community in Lee’s Summit, a Kansas City, Mo. suburb. This marked the company’s fourth purchase in the metro since 2019.

Floorplans include studio, one- and two-bedroom configurations ranging from 479 to 1,453 square feet. The ADA-accessible community includes a gym, a solarium, fountain pods, a rock-climbing wall, a clubhouse and EV charging stations, as well as attached garages and fenced-in yards.

Located at 837 NW Donovan Road, the property is 1 mile from U.S. Route 50, while downtown Kansas City is roughly 21 miles northwest. Employers such as Homeland Security and Saint Luke’s East Hospital operate within 2 miles of The Donovan.

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The community is part of NorthPoint Development and Townsend Capital’s Summit Orchards West master-planned development, which is set to encompass more than 1 million square feet of residential, retail, office and warehouse space.

Metro Kansas City advertised rents’ robust performance

Kansas City’s advertised asking rental rates grew by 3.4 percent year-over-year through June, marking the nation’s second-best performance among Yardi Matrix’ top 30 metros, surpassed by New York City alone.

Considering last year’s transaction volume in Kansas City—which was the weakest of the past decade—investors remained cautious, with $71 million in rental assets changing hands year-to-date through June, according to the same data provider. Lee’s Summit was the second most active Kansas City submarket after Independence – West ($67 million), with $46 million in properties trading over a 12-month period as of June.

Another deal closed just three months ago, when a joint venture between CRES Management and Artemis Real Estate Partners purchased The Fairways Apartment Homes, a 274-unit asset in Lee’s Summit, Yardi Matrix shows. Newmark issued a $29.8 million Freddie Mac loan.