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Multi-Family Investments ... Nationwide

Click below on highlighted states to see our portfolio.

Lehigh Acres

16 single family homes, built between 2005-2006 in Lehigh Acres, FL, east of Ft. Myers, and just 20 minutes from the Gulf of Mexico. Homes range in size from 3BR/2BA to 4BR/2.5BA and are situated on ¼ acre lots. Features include upgraded appliances, laundry rooms, tile floors, large screened lanais and two car garages.

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Northside Gardens

Northside Gardens is a market rate, multifamily apartment community located in Warner Robins, GA.  This property contains 32 single-story buildings which feature one-bedroom, two-bedroom, and three-bedroom floor plans.  The 18 acre site is abundant with indigenous pine trees creating a peaceful, campus-like atmosphere for residents.  Community amenities include two swimming pools, a laundry facility, a community clubhouse, and two tennis courts.

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Northeast View

Northeast Apartments is a government subsidized apartment community located in the historic Pendleton Heights district of Kansas City. The property is comprised of 12 two and one-half-story buildings which collectively offer an attractive unit mix of 10 one-bedroom, 76 two-bedroom, and 51 three-bedroom apartments. Community amenities include onsite laundry, off street parking, and central air conditioning.

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Englewood

Englewood Apartments is a government subsidized apartment community situated just north of the Missouri River in Kansas City. The property features a diverse unit mix which includes one-bedroom, two-bedroom, three-bedroom, and four-bedroom apartments. Community amenities include playground, onsite laundry, off street parking, and central air conditioning.

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Casa Del Sol

Casa Del Sol consists of 10 two-story multifamily apartment buildings located in Calipatria, CA, just 25 miles north of El Centro. The community contains 41 two-bedroom, two bath apartments and 40 three-bedroom, two bath apartments. Casa Del Sol provides affordable housing to families earning no more than 30%, 40%, 50%, and 60% of Imperial County AMI (area median income).

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Sierra Vista

Sierra Vista consists of 6 two-story multifamily apartment buildings located in Seeley, CA, just 10 miles west of El Centro. The community contains 24 two-bedroom, two bath apartments and 24 three-bedroom, two bath apartments. Sierra Vista provides affordable housing to families earning no more than 30%, 40%, 50%, and 60% of Imperial County AMI (area median income).

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New Yorker Apartments

The New Yorker Apartments is comprised of one three-story building located in the historic district of Downtown Bakersfield. This midrise community features a unique unit mix of studio, one, and two bedroom apartments all of which have been thoughtfully restored to maintain their authentic vintage ambiance. Common area amenities include on site laundry facility, off street parking, and a beautifully landscaped courtyard appointed with a koi pond.

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Park Madison

Situated just 15 minutes south of Indianapolis, Park Madison Apartments is comprised of 7 two-story multifamily apartment buildings located on approximately three acres of land. The community consists of 56 two-bedroom floor plans totaling 64,400 rentable square feet for a generous 1,150 square feet of living space per apartment.

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Sierra Pointe

Sierra Pointe consists of 15 two-story apartment buildings situated on two parcels totaling approximately 11 acres in St. George, UT. Just 40 miles west of Zion National Park, this garden style community features an attractive unit mix of studio, one, two, and three bedroom apartments. Common area amenities include on site laundry facilities, community fitness center, playground, sauna, and garage parking.

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Charles Schwab

6,760 SF of office space occupied by tenant Charles Schwab Investment Co., Inc (S&P: A+). Built in 2014, this asset is located in Overland Park, KS, the largest suburb of Kansas City. This prime location boasts daily traffic counts of 50,000 vehicles per day with average household incomes exceeding $140K within a 3 mile radius of the property.

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White Lakes Plaza

White Lakes Plaza consists of 9 two-story buildings located in suburban southwest Topeka.  This garden style community offers an attractive unit mix of 72 one-bedroom and 72 two-bedroom apartments. Common area amenities include our resort style swimming pool, community clubhouse, on site laundry facility, and covered parking.

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Carriage House

Carriage House consists of 12 two and one-half-story buildings situated on 9 acres in southwest Topeka, Kansas. This garden style community features one and two bedroom apartment homes. Common area amenities include two swimming pools, a community clubhouse, on site laundry facilities in each building, and abundant off street parking. Beautifully landscaped courtyards provide residents with a serene setting within the capital city of Kansas.

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Woodwinds

Woodwinds Apartments consist of 6 two-story multifamily apartment buildings located in
Norfolk, Nebraska. The buildings contain a total of 44 two-bedroom and 6 three-bedroom apartment townhomes all of which are made affordable to our residents with rental assistance provided under a HAP Contract (Housing Assistance Payments), administered by the U.S. Department of Housing and Urban Development.   Amenities include an onsite laundry facility, playground, and central air conditioning.

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Riverfront

Riverfront consists of 3 three-story multifamily apartment buildings located in South Sioux City, Nebraska, just across the Missouri River from Iowa. The community contains one, two, and three-bedroom apartments and caters to low income households earning no more than 60% of Dakota County’s AMI (area median income). Community amenities include onsite laundry facilities in each building, laundry hook-ups, garages for rent, and a playground.

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Park Madision Apartments

Situated just 15 minutes south of Indianapolis, Park Madison Apartments is comprised of 7 two-story multifamily apartment buildings located on approximately three acres of land. The community consists of 56 two-bedroom floor plans totaling 64,400 rentable square feet for a generous 1,150 square feet of living space per apartment. Property amenities include built-in microwaves, washers/dryer connections, private patios and balconies, walk-in closets, and ample off street parking.

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CURRENT INVESTMENTS

Charles Schwab Investment Center+

Address: 13501 Nall Avenue
Overland Park, KS 66224

Asset Class: Single Tenant, Net Lease

Size: 6,760 SF

Year Built: 2014

Acquisition Date:  April, 2017

Acquisition Cap Rate:  6.08%

Disposition Date:  TBD

Disposition Cap Rate:  TBD

Capital Structure:
Debt: 60%
Equity: 40%

Description:
Constructed in 2014 as a build-to-suit for Charles Schwab & Company, this property is located in Overland Park, one of the highest income, high growth corridors of Johnson County, Kansas. Charles Schwab (NASDAQ: SCHW) is a publicly traded company with a Standard & Poor's A+ credit rating.

Purchased subject to a 10 year triple net, fully guaranteed corporate lease, plus three 5 year options, each with 10% rent increases, this investment will generate solid, growing returns over the next 20+ years, with virtually no landlord responsibilities.

The hard corner signalized intersection where the property is located boasts daily traffic counts of over 50,000 cars per day, and the average household incomes within a 1 mile radius of the property exceed $145,000 annually.  We are confident that this investment will produce good long term income, as well as value appreciation due to its outstanding location.

MPC Strategy:
This investment will provide MPC investors with a truly passive income by producing immediate cash flow in excess of 6%, with steady increases over the life of the tenancy.

Lehigh Acres+

Address: Various Lehigh Acres, FL

Asset Class: Single Family Home Development

Size: 16 Single Family Homes

Year Built: 2005 - 2007

Acquisition Date:  2004 - 2006

Acquisition Cap Rate:  N/A

Disposition Date:  Various

Disposition Cap Rate:  N/A

Capital Structure:
Debt: 90%
Equity: 10%

Financial Performance:
Total Cumulative Investor Distributions:  N/A
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
16 single family homes, built between 2005-2006 in Lehigh Acres, FL, east of Ft. Myers, and just 20 minutes from the Gulf of Mexico. Homes range in size from 3BR/2BA to 4BR/2.5BA and are situated on ¼ acre lots. Features include upgraded appliances, laundry rooms, tile floors, large screened lanais and two car garages.

MPC Strategy:
McKee Private Capital purchased 16 vacant residential lots in Lehigh Acres, FL in 2004, at an average cost of $10,625, and obtained 100% construction financing to develop new single family homes for investment.

The timing of this investment was good, and we were able to sell 10 of the 16 homes prior to the market collapse at profits ranging from $75,000 to $125,000 per house. Our leverage on these homes was enormous given the ability to finance 100% of the development cost. The remaining 6 homes remain in our investment rental portfolio, and are currently 100% occupied. The continued growth in Southwest Florida is impressive, and we are happy to hold these remaining homes for long-term capital gains.

Sierra Pointe+

Address: 1503 N 2100 W, St. George, UT 84770

Asset Class: Multifamily, Section 42

Size: 168 units

Year Built: 1995/1996

Acquisition Date:  January, 2016

Acquisition Cap Rate:  6.5%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 80%
Equity: 20%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Sierra Pointe consists of 15 two-story apartment buildings situated on two parcels totaling approximately 11 acres in St. George, UT. Just 40 miles west of Zion National Park, this garden style community features an attractive unit mix of studio, one, two, and three bedroom apartments. Common area amenities include on site laundry facilities, community fitness center, playground, sauna, and garage parking.

MPC Strategy:
McKee Private Capital purchased Sierra Pointe in January 2016, marking our first expansion into the Utah market. MPC raised equity from seven private investors and assumed the Seller’s existing debt, which will mature in 2023. MPC investment projections indicate that Sierra Pointe will generate a cash on cash in excess of 9% per annum. While operations were stable under previous ownership, MPC is confident that meaningful rent growth is achievable with moderate unit upgrades and a more aggressive lease renewal campaign. Median physical occupancy rates among similar type properties in St. George have been 99% for the past three years. Additionally, the local population has increased by approximately 30% over the last ten years and is poised for further growth.

Woodwinds+

Address: 123 N 25th Street, Norfolk, NE 68701

Asset Class: Multifamily, Project Based Section 8

Size:   50 units

Year Built: 1979

Acquisition Date:  January, 2013

Acquisition Cap Rate:  13.0%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 60%
Equity: 40%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Woodwinds Apartments consist of 6 two-story multifamily apartment buildings located in
Norfolk, Nebraska. The buildings contain a total of 44 two-bedroom and 6 three-bedroom apartment townhomes all of which are made affordable to our residents with rental assistance provided under a HAP Contract (Housing Assistance Payments), administered by the U.S. Department of Housing and Urban Development.   Amenities include an onsite laundry facility, playground, and central air conditioning.

MPC Strategy:
McKee Private Capital had the opportunity to acquire Woodwinds Apartments on an off-market basis in January of 2013. Upon takeover, MPC terminated the existing HAP Contract and negotiated a new, budget based Contract with HUD.  As a result, Woodwinds is no longer subject to periodic RCS (rent comp surveys) and therefore has zero exposure to market rent reductions.  This investment continues to generate solid, double-digit returns to investors each month.

Riverfront+

Address: 860 Riverview Drive, South Sioux City, NE 68776

Asset Class: Multifamily, Section 42

Size:  84 units

Year Built: 1995

Acquisition Date:  December, 2013

Acquisition Cap Rate:  9.75%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 70%
Equity: 30%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Riverfront consists of 3 three-story multifamily apartment buildings located in
South Sioux City, Nebraska, just across the Missouri River from Iowa. The community contains one, two, and three-bedroom apartments and caters to low income households earning no more than 60% of Dakota County’s AMI (area median income). Community amenities include onsite laundry facilities in each building, laundry hook-ups, garages for rent, and a playground.

MPC Strategy:
McKee Private Capital acquired Riverfront in December of 2013. MPC has been successful in creating value through a variety of management efficiencies which have resulted in reduced operating costs and increased bottom line growth.  Since acquisition, MPC has increased NOI by nearly 30% and forecasts additional growth in the coming year as market demographics continue to improve in the Sioux City MSA.    

Park Madison Apartments +

Address: 614 Park Madison Drive Greenwood, IN 46142

Asset Class: Multifamily, Conventional

Size:  56 units

Year Built: 2004

Acquisition Date:  January, 2017

Pro Forma Cap Rate:  6.8%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 65%
Equity: 35%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Situated just 15 minutes south of Indianapolis, Park Madison Apartments is comprised of 7 two-story multifamily apartment buildings located on approximately three acres of land. The community consists of 56 two-bedroom floor plans totaling 64,400 rentable square feet for a generous 1,150 square feet of living space per apartment. Property amenities include built-in microwaves, washers/dryer connections, private patios and balconies, walk-in closets, and ample off street parking.

The Opportunity:
Park Madison provides investors with the unique opportunity to acquire real estate below replacement cost in a growing secondary market. With rents in the Indianapolis market expected to expand by 3.5% in 2017, Park Madison will continue to provide our investors with solid, conservative revenue growth. This investment is currently generating annualized cash flow in excess of 10%.

Sierra Vista +

Address: 1703 El Centro Street, Seeley, CA 92273

Asset Class: Multifamily, Section 42

Size:  48 units

Year Built: 2000

Acquisition Date:  December, 2016

Pro Forma Cap Rate:  6.5%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 75%
Equity: 25%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Sierra Vista consists of 6 two-story multifamily apartment buildings located in Seeley, CA, just 10 miles west of El Centro. The community contains 24 two-bedroom, two bath apartments and 24 three-bedroom, two bath apartments. Sierra Vista provides affordable housing to families earning no more than 30%, 40%, 50%, and 60% of Imperial County AMI (area median income). Each set aside has a dedicated number of units ownership must lease to renters within the prescribed income caps. Community amenities include washer/dryer connections, playground, clubhouse, and covered parking.

The Opportunity:
Acquired in December of 2016, Sierra Vista has provided investors with the opportunity to acquire Southern California real estate at a significant discount to replacement cost. The affordability designation is advantageous in this lower income MSA, which caters to workforce families primarily in the agriculture and services sectors. Modest rent increases coupled with more efficient management practices will bolster investor returns going forward.

Casa Del Sol +

Address: 650 South International Boulevard | Calipatria, CA

Asset Class: Multifamily, Section 42

Size:  81 units

Year Built: 2001

Acquisition Date:  December, 2016

Pro Forma Cap Rate:  8.5%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 75%
Equity: 25%

Financial Performance:
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
Casa Del Sol consists of 10 two-story multifamily apartment buildings located in Calipatria, CA, just 25 miles north of El Centro. The community contains 41 two-bedroom, two bath apartments and 40 three-bedroom, two bath apartments. Casa Del Sol provides affordable housing to families earning no more than 30%, 40%, 50%, and 60% of Imperial County AMI (area median income). Each set aside has a dedicated number of units ownership must lease to renters within the prescribed income caps. Community amenities include covered parking, washer/dryer connections, playground, clubhouse, and barbecue area.

The Opportunity:
Acquired in December 2016, Casa Del Sol provides investors with the unique opportunity to acquire Southern California real estate at below replacement cost. The affordability designation is advantageous in this lower income MSA, which caters to workforce families primarily in the agriculture and services sectors. Modest rent increases coupled with more efficient management practices will bolster investor returns going forward.

New Yorker Apartments +

Address: 1906 18th Street | Bakersfield, CA 93301

Asset Class: Multifamily, Conventional

Size:  35 units

Year Built: 1912

Acquisition Date:  September, 2017

Pro Forma Cap Rate:  7%

Disposition Date:  T.B.D.

Disposition Cap Rate:  T.B.D.

Capital Structure:
Debt: 72%
Equity: 28%

Financial Performance:
Original Capital Investment: $830,000
Total Cumulative Investor Distributions:  T.B.D.
Net Sale Proceeds: T.B.D.
Annualized Return on Investment: T.B.D.

Description:
The New Yorker Apartments is comprised of one three-story building located in the historic district of Downtown Bakersfield. This midrise community features a unique unit mix of studio, one, and two bedroom apartments all of which have been thoughtfully restored to maintain their authentic vintage ambiance. Common area amenities include on site laundry facility, off street parking, and a beautifully landscaped courtyard appointed with a koi pond.

The Opportunity:
McKee Private Capital purchased the New Yorker Apartments in September, 2017, marking our first expansion into the Bakersfield market. MPC raised equity from two private investors and utilized Freddie Mac’s small balance loan program, which features a 36 month interest only period. MPC investment projections indicate that this investment will generate a cash on cash yield in excess of 9% per annum. With limited supply in the pipeline and Bakersfield citywide vacancy rates averaging just 2.3%, investors can expect outsized cash on cash returns with their participation in this investment.

CLOSED INVESTMENTS

Northeast View+

Address: 222 Garfield Avenue, Kansas City, MO 64124

Asset Class: Multifamily, Project Based Section 8

Size:  137 units 

Year Built: 1969

Acquisition Date:  June, 2005

Acquisition Cap Rate:  11.23%

Disposition Date:  June, 2015

Disposition Cap Rate:  8.03%

Capital Structure:
Debt: 87%
Equity: 13%

Financial Performance:
Acquisition Price: $4,300,000
Disposition Price: $5,800,000

Total Capital Invested:  $560,000
Total Cumulative Investor Distributions:  $1,551,871
Net Sale Proceeds: $2,209,084
Annualized Return on Investment: 67.16%

Description:
Northeast Apartments is a government subsidized apartment community located in the historic Pendleton Heights district of Kansas City. The property is comprised of 12 two and one-half-story buildings which collectively offer an attractive unit mix of 10 one-bedroom, 76 two-bedroom, and 51 three-bedroom apartments.  Community amenities include onsite laundry, off street parking, and central air conditioning. 

MPC Strategy:
In 2005, McKee Private Capital expanded its footprint to include the Midwest with the acquisition of Northeast View Apartments.  MPC paid less than 50% of replacement cost allowing for a debt coverage ratio in excess of 1.5 and an acquisition cap rate of nearly 11%.  Property operations remained stable throughout MPC’s holding period providing investors with consistent, double-digit cash on cash returns each month.  Investor demand for Project Based Section 8 assets has surged since 2005, which prompted MPC to take Northeast View to market in 2014.  The property sold in the first quarter of 2015 to a non-profit group at an above market sales price securing investors tremendous appreciation on their initial equity.  Northeast View exceeded MPC’s initial investment projections.  

White Lakes Plaza+

Address: 3733 SW Plaza Drive, Topeka, KS 66609

Asset Class: Multifamily, Conventional

Size:  144 units 

Year Built: 1973

Acquisition Date:  October, 2006

Acquisition Cap Rate:  9.12%

Disposition Date:  January, 2017

Disposition Cap Rate:  7.44%

Capital Structure:
Debt: 65%
Equity: 35%

Financial Performance:
Original Capital Investment: $1,792,503
Total Cumulative Investor Distributions:  $1,291,258
Net Sale Proceeds: $2,520,486
Annualized Return on Investment: 11.08%

Description:
White Lakes Plaza consists of 9 two-story buildings located in suburban southwest Topeka. This garden style community offers an attractive unit mix of 72 one-bedroom and 72 two-bedroom apartments. Common area amenities include our resort style swimming pool, community clubhouse, on site laundry facility, and covered parking.

MPC Strategy:
McKee Private Capital purchased White Lakes Plaza in 2006 after having success with another apartment investment in the nearby Kansas City market. As a condition of the purchase, MPC assumed the Seller’s conduit loan which featured an above market interest rate. After the yield maintenance provision expired, MPC refinanced White Lakes Plaza and pulled out cash for various property improvements which helped drive significant rent increases. Recognizing impending capital needs including roof and parking lot replacement, MPC decided to divest White Lakes Plaza in 2017 and completed a successful 1031 exchange into a newer single tenant asset located in Overland Park, KS.

Northside Gardens+

Address: 309 Texas Avenue, Warner Robins, GA 31093

Asset Class:Multifamily, Conventional

Size: 124 units 

Year Built:1969

Acquisition Date:  August, 2006

Acquisition Cap Rate:  9.56%

Disposition Date:  January, 2015

Disposition Cap Rate:  5.54%

Capital Structure:
Debt: 80%
Equity: 20%

Financial Performance:
Acquisition Price: $2,750,000
Disposition Price: $2,895,000

Total Capital Invested: $550,000
Total Cumulative Distributions:$457,336
Net Sale Proceeds: $810,594
Annualized Return on Investment: 28.82%

Description:
Northside Gardens is a market rate, multifamily apartment community located in Warner Robins, GA.  This property contains 32 single-story buildings which feature one-bedroom, two-bedroom, and three-bedroom floor plans.  The 18 acre site is abundant with indigenous pine trees creating a peaceful, campus-like atmosphere for residents.  Community amenities include two swimming pools, a laundry facility, a community clubhouse, and two tennis courts.

MPC Strategy:
In 2006, McKee Private Capital expanded into the Southeast region of the U.S. with the acquisition of Northside Gardens.  MPC purchased the real estate at a significant discount to replacement cost alongside one equity partner. Property operations remained stable throughout MPC’s holding period providing investors with consistent monthly cash flow for nearly nine years.  Given the age of the asset, and impending capital investment requirements, MPC made the decision to sell in January, 2015, realizing a profit on the sale.  Sale proceeds, coupled with the years of cash flow provided our ownership entity with an internal rate of return in excess of 10% over the term of the investment.

Englewood+

Address: 5432 NW Waukomis Drive, Kansas City, MO 64151

Asset Class:Multifamily, Project Based Section 8

Size:152 units 

Year Built:1972

Acquisition Date:  November, 2007

Acquisition Cap Rate:9.21%

Disposition Date: May, 2015

Disposition Cap Rate:  8.86%

Capital Structure:
Debt: 80%
Equity: 20%

Financial Performance:
Acquisition Price: $4,242,000
Disposition Price:  $5,000,000

Total Capital Invested:  $1,200,000
Total Cumulative Investor Distributions:  $438,507
Net Sale Proceeds: $1,674,104
Annualized Return on Investment: 6.33%

Description:
Englewood Apartments is a government subsidized apartment community situated just north of the Missouri River in Kansas City.  The property features a diverse unit mix which includes one-bedroom, two-bedroom, three-bedroom, and four-bedroom apartments.  Community amenities include playground, onsite laundry, off street parking, and central air conditioning.   

MPC Strategy:
McKee Private Capital purchased Englewood Apartments in 2007 with three investors, all of whom had taxable events looming due to capital gains on recent property sales. MPC successfully navigated three 1031 exchange transactions enabling investors to leverage their appreciated capital without tax recognition, and grow their real estate exposure by partnering in the acquisition of Englewood.  In addition to equity preservation, Englewood provided investors with an 8.12% internal rate of return over the life of the investment.  MPC sold the asset to a tax credit developer in May, 2015, realizing appreciation on the sale. 

Carriage House+

Address: 1601 SW 37th Terrace, Topeka, KS 66609

Asset Class: Multifamily, Conventional

Size:  282 units 

Year Built: 1969

Acquisition Date:  July, 2008

Acquisition Cap Rate:  7.50%

Disposition Date:  March, 2015

Disposition Cap Rate:  6.21%

Capital Structure:
Debt: 80%
Equity: 20%

Financial Performance:
Acquisition Price:            $6,000,000
Disposition Price:            $5,650,000

Total Capital Invested:  $1,760,000
Total Cumulative Investor Distributions:  $579,768
Net Sale Proceeds: $1,102,788
Annualized Return on Investment: (.00733)

Description:
Carriage House consists of 12 two and one-half-story buildings situated on 9 acres in southwest Topeka, Kansas.  This garden style community features one and two bedroom apartment homes. Common area amenities include two swimming pools, a community clubhouse, on site laundry facilities in each building, and abundant off street parking. Beautifully landscaped courtyards provide residents with a serene setting within the capital city of Kansas.

MPC Strategy:
McKee Private Capital purchased Carriage House in 2008, sourcing equity contributions from ten investors.  MPC was able to acquire the property well below replacement cost due to above market vacancy and high delinquencies that existed prior to takeover.  Investors enjoyed monthly cash flow distributions during the first six years of operations. However, during the Great Recession, Topeka began to experience economic decline, resulting in a surge of unemployment, and resulting in large numbers of resident defaults.  Many of the better qualified residents upgraded to single family home rentals and purchases, made possible by the glut of foreclosures in the market.  This major shift had a negative impact on overall property operations and liquidity. MPC ultimately made the difficult decision to take a minimal loss and exit this investment in 2015.  We feel it is important to mention that MPC held a majority ownership interest in Carriage House, as is the case with most of MPC’s investments.

Governor’s Court+

Address: 1110 W Virginia Lane Olathe, KS 66061

Asset Class: Multifamily, Conventional

Size:  80 units 

Year Built: 1969

Acquisition Date:  December, 2007

Acquisition Cap Rate:  7.14%

Disposition Date:  August 16, 2017

Disposition Cap Rate:  5.98%

Capital Structure:
Debt: 80%
Equity: 20%

Financial Performance:
Original Capital Investment: $854,278
Total Cumulative Investor Distributions: $292,665
Net Sale Proceeds: $2,054,304
Annualized Return on Investment: 17.47%

Description:
Governor’s Court consists of 5 two-story garden-style apartment buildings located in Olathe, KS. Located just 20 miles south of Kansas City, Governor’s Court provides its residents with an affordable housing option within the affluent Johnson County sub-market. Community amenities include laundry facilities in each building, off street parking, and storage lockers for rent.

MPC Strategy:
McKee Private Capital purchased Governor’s Court in December of 2007. Given this property’s close proximity to Kansas City and the favorable market demographics of Johnson County, we were able to achieve solid rent growth over the term of the investment with very little turnover expense. However, recognizing impending capital needs including roof and window replacement, MPC decided to divest Governor’s Court in 2017 and completed a successful 1031 exchange into a newly constructed, Class A multifamily asset located in Springfield, Oregon.

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McKee Properties

Office Location
1001 B Avenue, Suite 203
Coronado, CA 92118

Mailing Address
P.O. Box 180980
Coronado, CA 92178-0980

Contact Us
By Telephone: (619) 435-7780
By Fax: (619) 435-2661