Financial Performance:
Original Capital Investment: $1,793,000
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.
