Financial Performance:
Acquisition Price: $4,242,000
Disposition Price: $5,000,000
Total Capital Invested: $1,200,000
Total Cumulative Investor Distributions: $438,507
Net Sale Proceeds: $1,674,104
Annualized Return on Investment: 6.33%
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.
