Hampton Gardens

Investment Overview

Hampton Gardens Apartments represents one of the largest and most recognizable multifamily communities in the St. Louis metro, featuring 510 units located in the highly desirable Northampton neighborhood of South City. Strategically positioned right off route 44 and just minutes from Forest Park, this asset offers exceptional connectivity to major area employers, leading retail destinations, and the area’s most popular entertainment and lifestyle destinations. With nearly 95% of units offering rent upside to new ownership through strategic interior renovations that have PROVEN +$163 (1BR) and +$209 (2BR) on 25 units, Hampton Garden will be extremely appealing to the widest variety of investor profiles – including institutional and private capital multifamily investors looking to expand their holdings in the region or get an initial foothold in the St. Louis market.

Investment Highlights

• STABLE, SUPPLY-CONSTRAINED SUBMARKET
• - One of St. Louis’ most stable, under-supplied corridors
• - High barriers to entry limit new development
• - Strong renter demand and long-term rent growth
• RARE SCALE OPPORTUNITY
• - 510 units in one transaction — rare for St. Louis
• - Immediate operational scale and efficiencies
• - Flexible strategy: regional expansion or long-term hold
• WELL-MAINTAINED, INSTITUTIONAL ASSET
• - Professionally managed, strong maintenance history
• - 95%+ historical occupancy
• - No major deferred maintenance; focus on interior
• value-add
• BELOW REPLACEMENT COST BASIS
• - Priced materially below replacement cost
• - New development economically prohibitive
• - Less than ~50% of all-in basis vs. competing new product
• PROVEN VALUE-ADD IN SUBMARKET (RIVERSTATION)
• - Nearby 1965-vintage asset successfully repositioned
• - Achieved ~$150 (1BR) and ~$340 (2BR) rent premiums
• - Renovation scope mirrors Hampton Gardens Apartments
• upgrades
• - Demonstrates scalable, high-ROI value-add potential
• HIGH-OCCUPANCY, SUPPLY-CONSTRAINED SUBMARKET
• - Northampton: one of the metro’s tightest submarkets
• - ~95%+ occupancy; 4%+ annual rent growth
• - Minimal new supply limits downside risk
• - Supports rent growth and operational upside
• CONTINUED STRONG REVENUE GROWTH
• - 9% GSR growth in last 12 months
• - EGI increase $200,000 from T12 to T1
• - 90-day average in-place rent 5% growth over average in-place rent
• - Average max achieved rent for all units 12% growth
• average in place rent
• ANCILLARY INCOME UPSIDE
• - Ownership purchased new Washers/Dryers and recently
• signed a bulk internet agreement.
• - Additional net income of $339,904 once these two
• programs are fully implemented.
• - Immediate increase to NOI without any CapEx spending
• PROVEN VALUE ADD ONSITE
• - Renovated premiums: +$163 (1BR) and +$209 (2BR)
• - Current avg. rent $962 ($1.48 PSF) — ~$300+ below
• nearby renovated comps (Hampton Gardens Apartments
• is in a superior location)
• - Light/moderate upgrades unlock premiums across 510 units
• - Favorable mix (59% 1BR / 41% 2BR) + strong occupancy
• - Supports outsized NOI growth and 8%+ stabilized yield-on-cost
• - Sustained occupancy