Eaton Place / 115 units + 30K sqft of Commerical space

[Elijah Vo]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Wichita.

Purchase price: $13,400,000

Eaton Place situated near the Old Town Entertainment District is a Historic Building built in 1886. This property is situated right in Downtown Wichita, Kansas. What's even more exciting about this property is that it's Mixed-Use with both Multifamily 115 units and 30,000 sqft of storefront commercial.

What is truly unique about this gem is that the previous owner acquired the whole block, back in 1999 and has since infused over 19 Million to renovate, in doing so breathing new life into the history that is Eaton Place. The previous owner benefited from historic and housing tax credits in order to infuse that 19 million which was used to rehabilitate the entire property.

We acquired the asset and will implement a value-add strategy to bring this historic vintage B class property up to a A class asset. Currently, the property has little to no deferred maintenance and is prime for renovation and a push to market rents!

What made you interested in investing in this type of deal?

This is a unique project with a strong value add component! Current ownership has renovated 25 unit interiors now averaging $350 premiums over in-place rents.

How did you find this deal and how did you negotiate it?

We found this deal through strong brokerage relationships. We were actually looking at a different, C-class asset in Wichita at the time and the broker recommended we look at this one.

How did you finance this deal?

3+1+1 Bridge debt

How did you add value to the deal?

We have identified an open niche in the local market reposition this beautiful asset to an A class and will take advantage of this property’s surprisingly good existing condition to add amenities, rehab interiors, and move this property to fulfill that void, thereby forcing appreciation and creating a strong return for investors.

Lessons learned? Challenges?

Navigating downtown Wichita's environmental issues.