Available as a Portfolio or Individual Sale
The Berkadia Mid Markets Sales Team is pleased to present the St. Joseph 5 Portfolio, a collection of 301 total units and 5 properties, all of which sit within just a few miles of one another, providing a buyer new to the market an opportunity to gain an immediate and significant foothold, or to add additional efficiencies for existing owners in the area. Since purchasing each one of these assets, current ownership has invested substantial capital into both the exteriors and community spaces and amenities of each property. And with Frederick sitting in what is easily the best part of town, surrounded by A-Class office space, Gene Field directly across from one of the largest employers in the area, Boehringer Ingelheim Pharmaceuticals, and CityView, Summit Place and Eugene Field all located within a few blocks of one another in Downtown St. Joseph, all 5 of these communities bring both a geographic strength and operational potential to the overall collection. St. Joseph has thrived over the past decade, seeing a population increase of more than 12% and a household growth over 15%, resulting in a year-over-year employment increase of 2.5% - the highest in the state of Missouri – and a year-over-year rent increase of more than 3%. And with the continued expansion of major employment drivers like Mosaic Life Care (3,470 jobs), Triumph Foods (2,780 jobs), and Altec Industries (1,100 jobs), as well as its enduring position as one of the top 100 skilled manufacturing locations in the United States, St. Joseph continues to be a very attractive target for multifamily investors.
CityView Lofts is located in a former school building that was completely renovated into multifamily apartments in 1999. Since the current owner purchased the property in 2010, they have invested over $700,000 in capital to complete all necessary repairs on the exterior and common areas of the property. A new investor can take advantage of the 20-year old unit interiors, all which have 16’ ceilings throughout, by upgrading the floors, kitchen and bathroom areas, resulting in immediate rent pops that will drive the top-line revenue and increase the NOI.
Summit Place is located in the heart of Downtown St. Joseph and was redeveloped in the mid 1990’s from a previously vacant space, so the entire interior of the property is just 25 years old. Current ownership purchased the property in 2010 and invested nearly $300,000 into the exterior skin, as well as the parking lots, all new decking, and new roofs, which were installed in 2015 and 2017. The primary opportunity for the next owner is to focus on the upgrades of the incredibly spacious units – averaging more than 1,000 SF – which will result in instant rent pops and an increase to your top-line revenue.
Located just a few blocks from Summit Place, this asset was also redeveloped from a previously vacant property in the mid 1990’s. Current ownership invested more than $300,000 to shore up the exterior of the property via work on the exterior brick, installation of all new roofs in 2015 and additional work to the interior hallways and work to some of the unit interiors. This property is perfectly positioned for the next owner to come in and invest capital into the kitchens and bathrooms of the units, enabling them to push the low current rents closer to market levels.
Frederick Apartments sits on some of the most valuable land in St. Joseph and is directly next to the only Class A office park in town. Around $600,000 in capital improvements since 2016, including all new windows, exterior siding, paint and insulation, as well as improvements to the parking lot, leasing office and interior hallways. In addition, the roofs were all replaced in 2009. This level of exterior work allows a new investor to immediately increase their top-line revenue through interior upgrades.
Located on the East side of St. Joseph, directly across from Boehringer Ingelheim and their 946 jobs, Gene Field is a phenomenally located property that is perfectly positioned for a new investor to come in and take advantage of the nearly $700,000 in capex improvements completed since purchased in 2016 by the current ownership group.In 2017, the property received all new windows, siding, decks and paint, more than $110,000 in sealing and striping for the parking lots, as well as additional work to the hallways and unit interiors. While this asset is certainly primed for a new owner to come in and take advantage of the completed work by focusing on unit upgrades, the opportunity here is that Gene Field is a QC-eligible LIHTC property. Once a new owner initiates the Qualified Contract, the process begins to remove the property from the LIHTC program and remove the artificial limits to the rents, allowing them – over the course of the three-year decontrol period, to return to market level. In this market, this means a rent increase of roughly $75 to $100 for the 92 currently restricted units.