excellent institutionally owned and managed suburban
TRANSCRIPT
I N D E P E N D E N C E • M I S S O U R I E X E C U T I V E S U M M A R Y
Holliday Fenoglio Fowler, L.P. (“HFF”) a Missouri licensed real estate broker.
Excellent Institutionally Owned and Managed
Suburban Kansas City Value-Add Opportunity
C L U B H O U S E
O F F E R S D A T E / T O U R S
Tours: Please contact HFF to set up a tour of the
community. The Owner and HFF respectfully request
that interested parties refrain from contacting any
on-site personnel or residents. Tours must be
scheduled in advance by contacting one of the HFF
representatives listed on the back of this offering.
Tour Dates: Wednesday, April 29th, 2015
Monday, May 4th, 2015
* HFF will also accommodate off-cycle tours
Offers: Offers will be due on May 5, 2015. Please
forward offers to Sean Fogarty.
Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present The Mansion, a 550-home multi-family apartment
community located in Independence, Missouri – the 4th largest city in Missouri. The Mansion offers an investor an
attractive infill location in close proximity to leading employment and entertainment corridors of Kansas City, including
Cerner Corporation and their under construction $4.45 billion Trails Campus. Investors have an opportunity to acquire
an institutionally owned and managed community with strong historical occupancies and cash flows, and one well-
positioned for value-add through apartment interior renovations, modernization of the historic mansion clubhouse, and
upgrades to the fitness center and other community amenities.
The Mansion is a garden-style apartment complex nestled over 32.16 acres of peaceful park-like land complete with lush
landscaping, scenic ponds and a formal rose garden. The property features convenient and modern amenities including
two sparkling swimming pools, jacuzzi, tennis courts, racquetball courts, state-of-the-art fitness center, business center and
an historic 7,100 square foot mansion, the namesake of the property, which now functions as The Mansion
Apartments clubhouse and leasing office. The mansion, designed by famed architects Wight and Wight, is the centerpiece
of the property. The structure dates back to the mid-1910s, and has been the setting for lavish parties hosted by previous
owner Blevins Davis, a famous playwright and director. Furthermore, President Harry S. Truman, the 33rd President of the
United States, and an Independence native, held his daughter’s wedding reception in The Mansion’s formal rose garden. The
mansion and its grounds are an unmatched feature and an exceptional amenity to the property.
2 EXECUTIVE SUMMARY
Kansas City Regional Map
The community includes a mix of one, two and three-bedroom apartments featuring fully
equipped kitchens, walk-in closets and private patios/balconies. Select homes feature
breakfast bars, separate dining rooms, vaulted ceilings or fireplaces.
The property’s proximity to Interstate 70, Interstate 470 and Highway 291 offers residents
easy access to the regional highway system, all major employment corridors, and
entertainment venues of the Kansas City area. Additionally, the property is just a short
drive from the 1 million square foot Independence Center, a super-regional
shopping mall, CenterPoint Medical Center, a major hospital and employer in
Independence, Kauffman and Arrowhead Stadiums, and Downtown Kansas City.
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WEATHERBYLAKE
KANSAS CITYINTERNATIONAL
AIRPORT
JOHNSON COUNTYEXECUTIVE AIRPORT
Tiffany SpringsPark
Tiffany GreensGolf Club
Staley Farms
Golf Club
Hodge ParkGolf Club
The Deuceat National
WyandotteCounty
Lake Park
Blue ValleyPark
Blue OxCampground
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h St
State Ave
Kaw Dr
Holiday Dr
Johnson Dr
Linwood Rd
83rd St
135th St
151st St
87th St
Prairie Star Pkwy
College Blvd 111th St
119th St
127th St
Santa Fe St
151st St
Woodland Rd Ridgeview
Rd
Renner Blvd Black Bob Rd
Pflumm
Rd
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Pflumm
Rd
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95th St
Quivira Rd
Antioch Rd
Metcalf Ave
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Antioch Rd
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75th St
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K A N S A S C I T YC B D
L E AV E N WO RT H
L A N S I N G L I B E RT Y
I N D E P E N D E N C E
S U G A R C R E E K
R AY TOW N
B L U ES P R I N G S
G R A N DV I E WM A RT I N C I T YO L AT H E
L E N E X A
L E AWO O D
P R A I R I EV I L L A G E
S H AW N E EM I S S I O N
W E S T WO O DE A S T S I D E
N O RT H E A S TK A N S A S C I T Y
A R G E N T I N E
E DWA R D S V I L L EB O N N E R S P R I N G S
B A S E H O R
V I C TO RYH I L L S
PA R K V I L L E
R I V E R S I D E
G L A D S TO N E
P L E A S A N TVA L L E Y
N O RT HK A N S A S C I T Y
2 miles
69
69
L E E ’ SS U M M I T
OV E R L A N DPA R K
THE MANSION
3EXECUTIVE SUMMARY
T H E M A N S I O N H O M E M I X S U M M A R Y
CODE DESCRIPTION # OF HOMES SQ. FT AVERAGE ASKING RENT RENT PSF
1x1A Washington 72 549 $579 $1.06
1x1B Jefferson 56 602 $634 $1.05
1x1C Adams 56 649 $638 $0.98
1x1D Madison 92 722 $687 $0.95
2x1 Truman 72 853 $737 $0.86
2x2A Lincoln 88 917 $768 $0.84
2x2B Eisenhower 72 972 $797 $0.82
3x2 Roosevelt 42 1,157 $926 $0.80
Total/Average 550 794 $715 $0.90
O F F E R I N G S U M M A R Y
Name: The Mansion
Address: 2905 South Lee’s Summit Road
Independence, MO 64055
Number of Buildings:
38 two and three-story apartment buildings
1 office/clubhouse
1 maintenance shop
1 laundry facility
1 fitness center/laundry facility
Number of Homes: 550
Rentable Square Feet*: 436,698 SF
Average Home Size*: 794 SF
Occupancy: 95.0%
Year Built: 1987
Site Area: 32.16 acres
Parking: 980 surface spaces
Parking Ratio: 1.78 spaces per home
Property Type: Residential Garden Apartment
Financing: Available on an All Cash basis or
assumable tax exempt bond financing.
* All square footages are approximate
Please contact Matthew Schoenfeldt for current debt pricing (see back of this offering for contact information).
* All square footages are approximate
Upgraded Kitchen
4 EXECUTIVE SUMMARY
Investment Highlights
E X C E P T I O N A L V E R I F I A B L E V A L U E - A D D O P P O R T U N I T Y
Current ownership has recently renovated 3 apartment homes, and are realizing rent increases between $50 and $100
per home per month. The renovations have included new black appliances, two tone paint, brush nickel hardware, new
carpet and vinyl flooring, refinished countertops and new light fixtures. By continuing this program, an investor
can realize a return-on-cost exceeding 20%. Upgrades to common areas and amenity additions may also be made
to help further drive rent growth, including updates to the mansion clubhouse and fitness center.
S T R O N G M A R K E T F U N D A M E N T A L S
The Independence submarket enjoys some of the lowest vacancy rates in the Midwest. REIS reports vacancy for the
submarket in Q4 2014 at 3.2%, and more impressively the class B/C apartment vacancy rate was just 1.2% for
the same quarter. With no new supply since at least 2009, and very little new construction planned, vacancy rates
should remain low and average asking rents are projected to increase 4.2% by 2016.
P R O X I M I T Y T O T O P E M P L O Y E R S
Kansas City is home to eight Fortune 1000 corporations, five of which are within 16 miles of The Mansion. Cerner
Corporation is one of the premier health care technology companies in the world, and will be adding a
reported 16,000 employees over the next decade at the under construction $4.45 billion Cerner Trails
Campus. ATK Small Caliber Systems has a 3,935-acre U.S. government-owned facility to manufacture and
test small caliber ammunition for the U.S. Army just 6.1 miles northeast of The Mansion.
Clubhouse
Fitness Center
5EXECUTIVE SUMMARY
Racquetball Court
Clubhouse Lobby
Tennis Court
N E A R B Y L E A D I N G M E D I C A L C E N T E R
Centerpoint Medical Center is a 221-bed community hospital located just 3.4 miles southeast of The Mansion.
Centerpoint Medical Center, part of the HCA Midwest Health System, is a top employer in Independence
(1,600 employees) and has recently announced a $20 million expansion, with the addition of the 17,000 SF
state-of-the-art Sarah Cannon Cancer Center.
O U T S T A N D I N G N E A R B Y S H O P P I N G & E N T E R T A I N M E N T
The I-70 and I-470 interchange offers superb retail amenities including regional and super-regional shopping centers, big
box retailers, specialty shops and national chains. Independence Center, just 3.0 miles southeast of The Mansion,
is a 1 million square foot super-regional mall. The adjacent Independence Commons offers the convenience of big
box retailers: Best Buy, Barnes & Noble and Kohl’s. Costco, The Home Depot, Walmart, Sam’s Club, Target and Dick’s
Sporting Goods, along with several grocery stores are all within an eight minute drive of The Mansion.
E X C E L L E N T A C C E S S I B I L I T Y
Located in close proximity to I-70 and I-470, residents can quickly access Downtown Kansas City (13 miles) and the
network of highways serving the broader Kansas City area. The Mansion is within 20 minutes of Kansas City’s
top attractions, including:
• 10 minutes to Kauffman Stadium
• 10 minutes to Arrowhead Stadium
• 9 minutes to the Harry S. Truman Historic District
• 18 minutes to the Kansas City Zoo
• 8 minutes to the Independence Events Center
• 20 minutes to Downtown Kansas City
6 EXECUTIVE SUMMARY
R O B U S T H I S T O R I C A L C A S H F L O W & O C C U P A N C Y
The Mansion maintains a high occupancy rate (95% in March 2015) and generates strong cash flows reflective of strong
market fundamentals and sound management, and robust demand for housing in the attractive suburban submarket of
Independence.
S U P E R B E D U C A T I O N O P T I O N S
Serving the property is Truman High School, which is the highest rated high school in Independence by
U.S. News and World Report. Additionally, there are four colleges and universities located within 4.2 miles of the
property, with a total of over 6,000 students currently enrolled.
Outstanding Apartment and
Community Amenities
A P A R T M E N T F E A T U R E S :
• Fully Equipped Kitchens
• Walk-In Closets
• Private Patios/Balconies
• Breakfast Bars*
• Washer/Dryer Connections*
• Fireplaces*
• Separate Dining Rooms*
• Vaulted Ceilings*
• Ceiling Fans*
*in select homes
C O M M U N I T Y A M E N I T I E S :
• Historic Mansion Clubhouse
• Formal Rose Garden
• Two Swimming Pools
• Hot Tub
• BBQ & Picnic Area
• Racquetball Courts
• Tennis Courts
• Fitness Center
• Scenic Ponds & Gazebo
C L U B H O U S E
7EXECUTIVE SUMMARY
I N V E S T M E N T C O N T A C T SSEAN P. FOGARTY
Managing [email protected]
312.528.3675
MARTY F. O’CONNELLManaging Director
WICK B. KIRBYAssociate [email protected]
312.980.3611
DANIEL A. KAUFMANManaging Director
MO License #2012028715
KEVIN M. GIRARDAnalyst
F I N A N C I N G C O N T A C TMATTHEW R. SCHOENFELDT
Managing [email protected]
312.528.3686
H F F C H I C A G O181 West Madison Street
Suite 3900Chicago, IL 60602
312.528.3650hfflp.com
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WYANDOTTECOUNTY LAKE
WEATHERBYLAKE
KANSAS CITYINTERNATIONAL
AIRPORT
CHARLES B.WHEELER
DOWNTOWNAIRPORT
JOHNSON COUNTYEXECUTIVE AIRPORT
LEE’S SUMMITMUNICIPAL
AIRPORT
Tiffany SpringsPark
Tiffany GreensGolf Club
Staley Farms
Golf Club
Hodge ParkGolf Club
The Deuceat National
WyandotteCounty
Lake Park
Blue ValleyPark
Blue OxCampground
Shawnee MissionPark
FlemingPark
Burr Oak WoodsConservation
Area
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Mai
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139t
h St
Arro
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Armour Rd
Kansas Turnpike
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Kansas Turnpike
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h St
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Switzer Bypass
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olcott Rd
Eisenhower Rd
Farimount Rd
Leavenworth Rd
155t
h St
Parallel Pkwy
158t
h St
State Ave
Kaw Dr
Holiday Dr
Johnson Dr
Linwood Rd
83rd St
135th St
151st St
87th St
Prairie Star Pkwy
College Blvd 111th St
119th St
127th St
Santa Fe St
151st St
Woodland Rd Ridgeview
Rd
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Pflumm
Rd
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Pflumm
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Lackman Rd
95th St
Quivira Rd
Antioch Rd
Metcalf Ave
Nall Ave
Metcalf Ave
Antioch Rd
State Line Rd
75th St
Holm
es R
dTr
oost
Ave
Pros
pect
Ave
Bannister Rd
Mission Rd
High Grove RdScherer Rd
Barry Rd
64th St
Oak
Traf
ficw
ay
Pros
pect
Ave
Brig
hton
Ave
Oak
Traf
ficw
ay
Front St
Independence Ave
Truman Rd
Hard
esty
Ave
23rd St
Kansas Ave
7th
St
Rain
bow
Blv
d
47th St
Nol
and
Rd
RAyt
own
Rd
Bluff Rd
K A N S A S C I T YC B D
L E AV E N WO RT H
L A N S I N G L I B E RT Y
I N D E P E N D E N C E
S U G A R C R E E K
R AY TOW N
B L U ES P R I N G S
L E E ’ SS U M M I T
G R A N DV I E WM A RT I N C I T YO L AT H E
L E N E X A
L E AWO O D
OV E R A L N DPA R K
P R A I R I EV I L L A G E
S H AW N E EM I S S I O N
W E S T WO O DE A S T S I D E
N O RT H E A S TK A N S A S C I T Y
A R G E N T I N E
E DWA R D S V I L L EB O N N E R S P R I N G S
B A S E H O R
V I C TO RYH I L L S
PA R K V I L L E
R I V E R S I D E
G L A D S TO N E
P L E A S A N TVA L L E Y
N O RT HK A N S A S C I T Y
2 miles
69
69
EmployersEmployers
HospitalsHospitals
Recreation & EntertainmentRecreation & Entertainment
EducationEducation
LEGEND
RetailRetail
THE MANSION
FA I R M O U N TB U S I N E S S D I S T R I C T
Innovation CampusInnovation Campus
Trails CampusTrails Campus
Small Caliber Systems
Small Caliber Systems
SubtropolisSubtropolis
Blue Ridge Bank & Trust Company
Blue Ridge Bank & Trust Company
* Private School* Private School
Independence CommonsIndependence Commons
Independence CenterIndependence Center
Kauffman StadiumKauffman Stadium
Arrowhead StadiumArrowhead Stadium Waterfall ParkWaterfall Park
AMC IndependenceCommons 20
AMC IndependenceCommons 20
Independence Events CenterIndependence Events Center
Harry S. TrumanLibrary and Museum
Harry S. TrumanLibrary and Museum
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HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.