san diego investment real estate

Capital Greens Apartments

Description:
Capital Greens Apartments consists of 12 two-story apartment buildings situated on a 5.52-acre parcel located in Cheyenne, Wyoming. Cheyenne is the capital city in Wyoming, the county seat of Laramie County, and the principal city of the Cheyenne, Wyoming, Metropolitan Statistical Area which encompasses all of Laramie County. It is located 102 miles north of Denver and has a population of 63,957, making it the most populous city in the state. Cheyenne is the northern terminus of the extensive and fast-growing Front Range Urban Corridor that stretches from Cheyenne to Pueblo, Colorado, and has a population of 4,333,742.

Government is the largest sector of Cheyenne’s economy. The state of Wyoming operates a multitude of offices in downtown Cheyenne. Many area residents are employed by or are dependent on the U.S. Air Force, through F.E. Warren Air Force Base to the west of the city, and by the Wyoming National Guard. Railroads remain a major economic force for the city, with both the Burlington Northern Santa Fe and Union Pacific employing many residents. Lowe’s and Wal-Mart both operate distribution centers on the city’s outskirts. Sierra Trading Post is headquartered in the city and also operates its distribution and fulfillment centers in the city. In addition, because of the towns cooler summers and abundant electricity supplies (both renewable and non-renewable), Cheyenne has been able to attract a number of data centers including the NCAR supercomputing center, along with a Microsoft data center, powered by bio gas, and Green House Data’s data centers powered by wind energy.

MPC Strategy:
McKee Private Capital continued to expand its geographic footprint, entering Wyoming for the first time in May, 2020, and expanding our LIHTC tax credit portfolio. Capital Greens was packaged with another asset, River Run Apartments, located in Laramie, Wyoming, and we were able to purchase both assets at favorable terms. We also benefited from historically low interest rates, locking in a 3.25% rate on a 10 year fixed term with Freddie Mac. Year 1 investor dividends are projected at 7.5% annually.

We have retained the services of Syringa Property Management located in Boise, Idaho, a specialist in LIHTC properties, and active in the Wyoming market.

Continue reading

san diego investment real estate

River Run Apartments

Description:
River Run Apartments I & II is a 64-unit affordable housing community located in Laramie, WY. The property is located minutes from schools, shopping, Interstate 80, and the University of Wyoming. Phase I of the property was built and placed in service in 2004 and Phase II of the property was built and placed in service in 2005 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There are existing regulatory agreements in place which requires all units to be rented to income qualifying residents earning no more than 40%, 45%, 50%, and 55% of Area Medium Income (AMI) limits, which are provided by the Wyoming Community Development Authority.

The property offers two, three, and four-bedroom apartment homes complete with a fully equipped kitchen with a patio/balcony, walk-in closets, and extra storage. Community amenities include an on-site leasing office, on-site maintenance, computer room, fitness center, on-site laundry facility, playground, & picnic area.

Laramie is a city in Albany County, Wyoming with a population of 32,104. Located on the Laramie River in southeastern Wyoming, the city is west of Cheyenne, at the junction of Interstate 80 and U.S. Route 287.

Laramie was settled in the mid-19th century along the Union Pacific Railroad line, which crosses the Laramie River at Laramie. It is home to the University of Wyoming, Wyoming Technical Institute, and a branch of Laramie County Community College. Laramie Regional Airport serves the area. The ruins of Fort Sanders, an army fort predating Laramie, lie just south of the city along Route 287. Located in the Laramie Valley between the Snowy Range and the Laramie Range, the city draws outdoor enthusiasts because of its abundance of outdoor activities including skiing, snowmobiling, mountain biking, hunting, fishing, and hiking.

MPC Strategy:
McKee Private Capital continued to expand its geographic footprint, entering Wyoming for the first time in May, 2020, and expanding our LIHTC tax credit portfolio. River Run was packaged with another asset, Capital Greens Apartments, located in Cheyenne, WY and we were able to purchase both assets at favorable terms. We also benefited from historically low interest rates, locking in a 3.27% rate on a 10 year fixed term with Freddie Mac. Year 1 investor dividends are projected at 7.5% annually.

We have retained the services of Syringa Property Management located in Boise, Idaho, a specialist in LIHTC properties, and active in the Wyoming market.

Continue reading

san diego investment real estate

Oakshire Senior Apartments

Description:
Oakshire Senior Apartments consists of 1 three-story apartment building situated on a parcel totaling approximately 2.9 acres in Reading, PA. Reading is centrally located in southeast Pennsylvania, within 60 miles of major metropolises such as Philadelphia, Lancaster, and Harrisburg. The community features a mix of one-bedroom and two-bedroom apartments with an average unit size of 769 square feet. The property is age restricted to seniors (55+) and income restricted to households earning no more than 50% and 60% of the Berks County AMI (area median income). Community amenities include a fitness center, elevator service, theatre room, game room, community room, hair salon, three on site laundry facilities, and three libraries.

MPC Strategy:
McKee Private Capital purchased Oakshire Senior in December 2020, marking our first expansion into the Pennsylvania market. MPC raised equity from five private investors, two of whom were in exchange, and fixed rate debt financing was provided by Freddie Mac.

While operations were stable under previous ownership, MPC is confident that meaningful NOI growth is achievable through more aggressive leasing and expense control. Physical occupancy rates among similar type properties in Reading have averaged 95%+ for the past three years providing proof of concept to our improved occupancy projections under new ownership. Year 1 investor dividends are projected at 7% annually.

Continue reading

san diego investment real estate

Westmont Apartments

Description:
Westmont Apartments is a newly constructed (2015) apartment community located in Cave Springs, VA, a bedroom community of the beautiful Blue Ridge Mountain city of Roanoke, VA. The property is situated on 2.35 acres and is comprised of four 12 unit buildings. Units are upgraded with individual outdoor balconies, hardwood / tile floors, stainless steel appliances, dishwashers, walk-in closets, and washer/dryer sets in each unit.

Roanoke is home to Virginia Tech and the highly regarded Carilion Medical Center, a not-for-profit health system. Carilion cares for nearly 1 million Virginians and West Virginians in an approximately 20-county region in central and southwestern Virginia and southern West Virginia. The health system is the region’s largest private employer, with more than 13,000 employees, including more than 700 physicians.

Westmont caters to the many professionals who work and study in the Virginia Tech system thereby assuring a high-quality resident base, and historically high occupancy.

MPC Strategy:
McKee Private Capital purchased Westmont Apartments in August, 2021, adding to our expansion into the Atlantic / Eastern Seaboard.

Equity was raised from five private investors, three of whom identified Westmont Apartments as their replacement property to satisfy their 1031 tax deferred exchange. The property was purchased for all cash, and the tenancy in common structure will provide our investors the flexibility to finance the property and deploy a portion of their equity into other opportunities that might come our way.

Monthly dividend distributions to our investors commenced on October 5, 2021.

Continue reading

san diego investment real estate

Pioneer Townhomes

Description:
Pioneer Townhomes is a newly constructed (2019) apartment community located in the Eugene-Springfield MSA just four miles east of the University of Oregon. Springfield is located along the interstate 5 highway, connecting the region to other large metro areas. Diverse economic drivers include healthcare, education, and a growing tech industry.

The property is situated on two acres and is comprised of seven two-story buildings. The townhomes are upgraded with plank flooring, stainless steel appliances, dishwashers, private yards and washer/dryer sets in each unit.

MPC Strategy:
McKee Private Capital previously purchased a 38 unit community directly adjacent to Pioneer Townhomes in 2017. The two communities will be operated as one providing operational efficiencies that come with greater scale. Apartment occupancy in the Eugene-Springfield market is extremely tight with current reported vacancies running sub five percent.

Continue reading

san diego investment real estate

Prime Square Apartments

Description:
Prime Square was placed into service in 2008, and is comprised of 50-1 Bedroom and 30-2 Bedroom units, plus 2,400 SF of commercial ground floor office, currently occupied by the Iowa Visiting Nurse Health Services. The senior resident profile is comprised of a majority of long-term residents, with an annual turnover rate of just 18%, resulting in low operating costs. Community amenities include a beauty salon, two elevators, library, computer center, covered off-street parking and common area dining room.

MPC Strategy:
McKee Private Capital purchased Prime Square in April 2023, marking our first expansion into the state of Iowa. MPC raised equity from six private investors and fixed rate debt financing with Fannie Mae was provided by Greystone Servicing Company. Eight years of interest only payments were negotiated helping bolster strong returns over the term of investment.

With ever greater numbers of baby boomers looking to downsize in retirement, this senior housing asset is well positioned to benefit from demographic trends. Modest rent increases coupled with more efficient management practices will deliver steady, durable returns going forward.

Continue reading