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 in Downtown Wichita and is mixed-use with both multifamily 115 units and 30,000 sqft of storefront commercial.

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.

[Shane H.]

Congrats @Elijah Vo  -- I moved away from Wichita in 2017 but go back often - lived there for 3 plus decades.  The city Re-doing that park makes your job a whole lot easier now.  Amazing asset you were able to purchase.  We love the DT area and enjoy walking around when we're there.

I find it amazing how outside money is paying attention to Wichita now - has driven the prices up and before Wichita was always written off as a cowtown.  We just live 2 hrs north and miss it a lot.  

Hopefully whatever you do you'll keep paying homage to the history of the building and downtown in general.