Haven Kansas City
We acquired Madison Park Apartments, a 388 unit apartment building in southeast Kansas City, for $13.8M in 2014. The property was located 1 mile from a $4.5B Cerner campus under construction for 16,000 employees. Madison Park was poorly managed and tired, but the submarket was shifting and the competition showed opportunity for increased rent.
We spent roughly $8M to upgrade interior units, exteriors, and amenities. We improved operations and rebranded the asset to Haven Kansas City. Through our renovations, rebranding, improved management, and Cerner’s increased footprint, we increased rents 41% and stabilized occupancy at 95%. After stabilization, we refinanced the asset, pulling out 90% of the original equity. NOI of the property increased by 173%. We sold Haven for $36M in 2017 with a gross IRR of 40%.