Financial Performance:
Projected Investor Dividends (Year 1): 7.0%
Description:
Sierra Pointe consists of 15 two-story apartment buildings situated on two parcels totaling approximately 11 acres in St. George, UT. Just 40 miles west of Zion National Park, this garden style community features an attractive unit mix of studio, one, two, and three bedroom apartments. Common area amenities include on site laundry facilities, community fitness center, playground, sauna, and garage parking.
MPC Strategy:
McKee Private Capital purchased Sierra Pointe in January 2016, marking our first expansion into the Utah market. MPC raised equity from seven private investors and assumed the Seller’s existing debt, which will mature in 2023. MPC investment projections indicate that Sierra Pointe will generate a cash on cash in excess of 9% per annum. While operations were stable under previous ownership, MPC is confident that meaningful rent growth is achievable with moderate unit upgrades and a more aggressive lease renewal campaign. Median physical occupancy rates among similar type properties in St. George have been 99% for the past three years. Additionally, the local population has increased by approximately 30% over the last ten years and is poised for further growth.
