MANHATTAN, KS – Four Mile Capital, a privately owned real estate investment firm based in Louisville, Colorado, has acquired Scenic Woods Apartments, a 144-unit apartment complex in Manhattan, KS. Scenic Woods, which was completed in 2012 and sits on 11 acres, consists of 66 one-bedroom units, 60 two-bedroom units, and 18 three-bedroom units, with each unit having its own balcony or porch. At an average of over 950sf, Scenic Woods offers some of the largest floor plans on the market. The Prime Company has received the property management contract.
The transaction closed on July 16, 2021 for $ 14,750,000, which is $ 102,000 per unit or $ 107 per square foot. As part of the acquisition, FMC raised over 5.8 million
“Although Scenic Woods was offered on a 'free and clear' basis, we looked at the transaction from a different perspective in this competitive landscape. Although the interest rate on the seller's loan was a bit high at 4.81%, we only have four years to refinance, and since we are taking over the loan, the seller could be paying an early repayment penalty of 1.6 million Savings realized by the seller resulted directly in a lower cost base for our acquisition and provided some very attractive risk-adjusted returns, ”said Eric Mallon, one of FMC's founding partners.
Manhattan or the "Little Apple" is a city in northeast Kansas, less than 2 hours from Kansas City. Best known as the home of the Wildcats of Kansas State University and Fort Riley, it is also establishing itself at the forefront of biosecurity research as the future home of the National Bio- and Agro-Defense Facility, a state-of-the-art, state-of-the-art biocontainment laboratory for studying disease that threaten both the country's agribusiness and public health. The acquisition, FMC's first in the state of Kansas, is in line with its initiative to expand across the American Midwest into markets that have a balanced prospect of stability and growth.
Scenic Woods offers residents a variety of 10 different floor plans, each with a private patio or balcony, with an amenity package that includes a pool, clubhouse, and fitness center, plus carports, covered garages, and storage rooms that are available for rent. The competitive, market-leading device surfaces and features include granite countertops, solid wood cabinets, walk-in closets, plenty of storage space, full-size washer / dryer, and a combination of real wood and tile floors.
FMC's business plan will focus on improving operations through the implementation of sophisticated management and marketing strategies, leveraging the institutional grade asset management platform to control operating costs, promote other revenue opportunities, and make strategic decisions for the asset hold true. “This acquisition is very representative of the risk-adjusted return investment profile we are currently excited about and our fifth acquisition in a row since 2012. By purchasing these newer assets below market and replacement cost, we are virtually eliminating all of the capital and execution risk associated with the Buying older value-added property comes with it, and with the background and expertise of our teams in operations, we identify creative ways to actively increase revenue and better manage expenses during the holding period, ”said Chris Geer, another founding partner of Four Mile.
