real estate coronado ca

Governor’s Court

Financial Performance:
Original Capital Investment: $854,000
IRR: 11%
Equity Multiple: 2.57X

Description:
Governor’s Court consists of 5 two-story garden-style apartment buildings located in Olathe, KS. The property has 28 one-bedroom units, 48 two-bedroom units, and 4 three-bedroom units. Located just 20 miles south of Kansas City, Governor’s Court provides its residents with an affordable housing option within the affluent Johnson County sub-market. Community amenities include laundry facilities in each building, off street parking, and storage lockers for rent.

MPC Strategy:
McKee Private Capital purchased Governor’s Court in 2007 after having established a presence in the nearby Kansas City market. Given this property’s close proximity to Kansas City and the favorable market demographics of Johnson County, MPC was able to realize immediate rent growth post acquisition resulting in strong investor returns over the term of the investment. MPC decided to divest Governor’s Court in 2017 and completed a successful 1031 exchange into a brand new multifamily asset located in Springfield, Oregon.

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real estate coronado ca

Carriage House

Financial Performance:
Original Capital Investment: $1,760,000
IRR: 11.06%
Equity Multiple: 1.08X

Description:
Carriage House consists of 12 two and one-half-story buildings situated on 9 acres in southwest Topeka, Kansas. This garden style community features one and two bedroom apartment homes. Common area amenities include two swimming pools, a community clubhouse, on site laundry facilities in each building, and abundant off street parking. Beautifully landscaped courtyards provide residents with a serene setting within the capital city of Kansas.

MPC Strategy:
McKee Private Capital purchased Carriage House in 2008, sourcing equity contributions from ten investors. MPC was able to acquire the property well below replacement cost due to above market vacancy and high delinquencies that existed prior to takeover. Investors enjoyed monthly cash flow distributions during the first six years of operations. However, during the Great Recession, Topeka began to experience economic decline, resulting in a surge of unemployment, and resulting in large numbers of resident defaults. Many of the better qualified residents upgraded to single family home rentals and purchases, made possible by the glut of foreclosures in the market. This major shift had a negative impact on overall property operations and liquidity. MPC ultimately made the difficult decision to take a minimal loss and exit this investment in 2015. We feel it is important to mention that MPC held a majority ownership interest in Carriage House, as is the case with most of MPC’s investments.

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real estate coronado ca

Englewood

Financial Performance:
Original Capital Investment: $1,100,000
IRR: 13.24%
Equity Multiple: 2.13X

Description:
Englewood Apartments is a government subsidized apartment community situated just north of the Missouri River in Kansas City. The property features a diverse unit mix which includes one-bedroom, two-bedroom, three-bedroom, and four-bedroom apartments. Community amenities include playground, onsite laundry, off street parking, and central air conditioning.

MPC Strategy:
McKee Private Capital purchased Englewood Apartments in 2007 with three investors, all of whom had taxable events looming due to capital gains on recent property sales. MPC successfully navigated three 1031 exchange transactions enabling investors to leverage their appreciated capital without tax recognition, and grow their real estate exposure by partnering in the acquisition of Englewood. In addition to equity preservation, Englewood provided investors with an 8.12% internal rate of return over the life of the investment. MPC sold the asset to a tax credit developer in May, 2015, realizing appreciation on the sale.

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real estate investing san diego

Northside Gardens

Financial Performance:
Original Capital Investment: $690,000
IRR: 13.57%
Equity Multiple: 1.95X

Description:
Northside Gardens is a market rate, multifamily apartment community located in Warner Robins, GA. This property contains 32 single-story buildings which feature one-bedroom, two-bedroom, and three-bedroom floor plans. The 18 acre site is abundant with indigenous pine trees creating a peaceful, campus-like atmosphere for residents. Community amenities include two swimming pools, a laundry facility, a community clubhouse, and two tennis courts.

MPC Strategy:
In 2006, McKee Private Capital expanded into the Southeast region of the U.S. with the acquisition of Northside Gardens. MPC purchased the real estate at a significant discount to replacement cost alongside one equity partner. Property operations remained stable throughout MPC’s holding period providing investors with consistent monthly cash flow for nearly nine years. Given the age of the asset, and impending capital investment requirements, MPC made the decision to sell in January, 2015, realizing a profit on the sale. Sale proceeds, coupled with the years of cash flow provided our ownership entity with an internal rate of return in excess of 10% over the term of the investment.

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real estate investing san diego

White Lakes Plaza

Financial Performance:
Original Capital Investment: $1,792,503
IRR: 10%
Equity Multiple: 2.13X

Description:
White Lakes Plaza consists of 9 two-story buildings located in suburban southwest Topeka. This garden style community offers an attractive unit mix of 72 one-bedroom and 72 two-bedroom apartments. Common area amenities include our resort style swimming pool, community clubhouse, on site laundry facility, and covered parking.

MPC Strategy:
McKee Private Capital purchased White Lakes Plaza in 2006 after having success with another apartment investment in the nearby Kansas City market. As a condition of the purchase, MPC assumed the Seller’s conduit loan which featured an above market interest rate. After the yield maintenance provision expired, MPC refinanced White Lakes Plaza and pulled out cash for various property improvements which helped drive significant rent increases. Recognizing impending capital needs including roof and parking lot replacement, MPC decided to divest White Lakes Plaza in 2017 and completed a successful 1031 exchange into a newer single tenant asset located in Overland Park, KS.

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real estate investing san diego

Northeast View

Financial Performance:
Original Capital Investment: $560,000
IRR: 34%
Equity Multiple: 6.72X

Description:
Northeast Apartments is a government subsidized apartment community located in the historic Pendleton Heights district of Kansas City. The property is comprised of 12 two and one-half-story buildings which collectively offer an attractive unit mix of 10 one-bedroom, 76 two-bedroom, and 51 three-bedroom apartments. Community amenities include onsite laundry, off street parking, and central air conditioning.

MPC Strategy:
In 2005, McKee Private Capital expanded its footprint to include the Midwest with the acquisition of Northeast View Apartments. MPC paid less than 50% of replacement cost allowing for a debt coverage ratio in excess of 1.5 and an acquisition cap rate of nearly 11%. Property operations remained stable throughout MPC’s holding period providing investors with consistent, double-digit cash on cash returns each month. Investor demand for Project Based Section 8 assets has surged since 2005, which prompted MPC to take Northeast View to market in 2014. The property sold in the first quarter of 2015 to a non-profit group at an above market sales price securing investors tremendous appreciation on their initial equity. Northeast View exceeded MPC’s initial investment projections.

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real estate investing san diego

The Oaks Apartments

Financial Performance:
Original Capital Investment: $2,895,000
IRR: 32%
Equity Multiple: 3.77X

Market Overview:
Lincolnton, NC is a bedroom community located 37 miles northeast of Charlotte, and part of the Charlotte MSA.

Located between the Blue Ridge Mountains and coastal plains, the Charlotte metro stretches 3,198 square miles across the Piedmont region of the Southeastern United States. It contains seven counties in North Carolina: Mecklenburg, Gaston, Union, Cabarrus, Iredell, Rowan and Lincoln. South Carolina counties include York, Lancaster and Chester. A strong financial presence has contributed to the local population growing to more than 2.4 million citizens, becoming one of the nation’s fastest growing metros over the past 15 years.

Charlotte currently boasts a population of over 800,000 people. The Charlotte metro is expected to gain 18% population growth over the next 7 years. The largest portion of this gain will be due to in-migration.

Charlotte has a well-educated and highly trained labor pool that is attracted by a variety of industries and employers located in the metro. The metro’s employment base is growing and diversifying, drawing Fortune 500 companies. Though the finance sector is a large driver of the economy, manufacturing, healthcare and energy industries also play a vital role. The low cost of doing business attracts companies. Eight Fortune 500 companies have headquarters in the region: Bank of America, Lowe’s, Quintiles Transnational Holdings, Duke Energy, Family Dollar, Nucor, Sonic Automotive and Domtar. Highly ranked universities provide employment and produce a highly educated workforce, drawing top companies to the area.

Property Description:
The Oaks is comprised of 8 two story garden style buildings spread over 10 beautifully landscaped, wooded acres. Built in 2002, the Oaks stands as Lincolnton’s premier apartment community. Unit mix is comprised of 20-1BR/1BA, 79-2BR/2BA, and 12-3BR/2BA Units. Property has covered balconies and breezeways, and 230 parking spaces, including fully enclosed garages. Amenities include Clubhouse, Fitness Center, Onsite Laundry as well as en-suite laundry hookups, Basketball Court and Dog Park.

MPC Strategy:
McKee Private Capital acquired the Oaks from its original developer in July of 2018. While the property had been well maintained physically, it had been undermanaged as demonstrated by high vacancy. A more aggressive leasing campaign was implemented resulting in NOI growth in excess of twenty percent within the first year of ownership. In Spring of 2022, ownership made the decision to divest the asset resulting in a return of equity four times over.

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real estate investing san diego

Autumn Run

Financial Performance:
Total Cumulative Investor Distributions: N/A

Description:
Great Falls is the third largest city in Montana and home to nearly 60,000 residents. Located in Central Montana, Great Falls offers the charm of a small town with the benefits of a larger city. Centrally located between two of Montana’s iconic national parks; Glacier National Park and Yellowstone National Park, Great Falls serves as a hub for visitors exploring the state. A wide variety of employment opportunities contribute to the high qualify of life that Great Falls enjoys. Defense is a leading economic driver for the region due to the presence of Malmstrom Air Force Base. The AFB helps maintain the nation’s intercontinental ballistic missiles and operates missile alert facilities. Generating an annual economic impact of $350 Million, Malmstrom AFB is the largest employer in the area with military personnel accounting for nearly 10% of the Great Falls workforce.

MPC Strategy:
Autumn Run is comprised of ten, two-story multifamily apartment buildings. The community features a well- balanced mix of one, two and three-bedroom apartments totaling approximately 99,000 rentable square feet. Autumn Run provides affordable housing to families earning no more than 60% of Cascade County’s AMI (area median income). Ownership must lease to renters within this prescribed income cap.
Autumn Run will provide investors with the opportunity to acquire a high quality, stabilized asset, at well below replacement cost. Modest rent increases coupled with more efficient management practices will bolster investor returns over the 10 year life of the investment. We anticipate investor cash-on-cash returns in excess of 7% year one with subsequent annual increases as we optimize operations and grow income over the term of the investment.

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real estate investing san diego

Lehigh Acres

Financial Performance:
Total Cumulative Investor Distributions: N/A

Description:
16 single family homes, built between 2005-2006 in Lehigh Acres, FL, east of Ft. Myers, and just 20 minutes from the Gulf of Mexico. Homes range in size from 3BR/2BA to 4BR/2.5BA and are situated on ¼ acre lots. Features include upgraded appliances, laundry rooms, tile floors, large screened lanais and two car garages.

MPC Strategy:
McKee Private Capital purchased 16 vacant residential lots in Lehigh Acres, FL in 2004, at an average cost of $10,625, and obtained 100% construction financing to develop new single family homes for investment.

The timing of this investment was good, and we were able to sell 10 of the 16 homes prior to the market collapse at profits ranging from $75,000 to $125,000 per house. Our leverage on these homes was enormous given the ability to finance 100% of the development cost. The remaining 6 homes remain in our investment rental portfolio, and are currently 100% occupied. The continued growth in Southwest Florida is impressive, and we are happy to hold these remaining homes for long-term capital gains.

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real estate investing san diego

Woodwinds

Financial Performance:
Original Capital Investment: $580,000
Projected Investor Dividends (Year 1): 8.75%

Description:
Woodwinds Apartments consist of 6 two-story multifamily apartment buildings located in
Norfolk, Nebraska. The buildings contain a total of 44 two-bedroom and 6 three-bedroom apartment townhomes all of which are made affordable to our residents with rental assistance provided under a HAP Contract (Housing Assistance Payments), administered by the U.S. Department of Housing and Urban Development. Amenities include an onsite laundry facility, playground, and central air conditioning.

MPC Strategy:
McKee Private Capital had the opportunity to acquire Woodwinds Apartments on an off-market basis in January of 2013. Upon takeover, MPC terminated the existing HAP Contract and negotiated a new, budget based Contract with HUD. As a result, Woodwinds is no longer subject to periodic RCS (rent comp surveys) and therefore has zero exposure to market rent reductions. This investment continues to generate solid, double-digit returns to investors each month.

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