Kansas City Locals

[David Ziccardi]

Hello all,

My partner and I are looking to acquire between 80-150 apartment units in the next 12 months. Based on several market reports we've been reading and conversations with fellow investors we have decided that Kansas City is where we want to expand. At this stage we are looking to buy and hold complexes that are well taken care of but are underperforming. Motivated/worn out sellers or mismanaged properties are ideal. Our sweet spot is C+ to B- properties in B neighborhoods that need just a little bit of love to get them back on track.

I am reaching out to BP to find reliable "boots on the ground".  Brokers, PMs, local lenders, or anyone else that can provide some insight into the market we want to speak to!  

What neighborhoods should we be targeting?

What kind of cap and vacancy rates are typical for 20-30 units, 30-50 units, 50+ units based on the criteria above?

Also, any insight anyone can provide on cost per unit in the areas would also be helpful.

Thanks!

[Kanita Jefferson]

Hello David,

For real for real, Kansas City, MO neighborhoods are like night and day , literally! Of course you know true CAP and VAC rates do vary. I will say focus on the areas that's either being redeveloped or where major employers are or both! Midtown going down to downtown are redeveloping. The districts are great (Power and Light, Westport, Crossroads, Plaza). Cerner in south KC is having a major expansion going on. Raytown and Lees Summit, MO has always been stable.

Im sure I didnt provide the answer however im just providing insights.  Great acqs - student housing is worth looking into, independence area has been getting lots of attention (the schools teaches from Kansas are transitioning to MO), folks from the Ford plant in Claycomo seem to like living close to the highways for access. From 63rd street (midtown KC) to south Kansas City (85th or so) seems to be having on-going talks and concepts thrown around for redevelopment- which screams INCENTIVES!