Lepuy Apartments

Investment Overview

Lepuy Apartments is a 35-unit, all one-bedroom community in Omaha's Benson Gardens neighborhood, situated between the Maple and Dodge Street corridors. It is a steady, easy-to-rent location, walkable to grocery, dining, and schools and close to the city's largest employers. At $1,960,000, or $56,000 a unit, the property is priced well below what comparable buildings have recently sold for and below its own appraised range, allowing a buyer to step in at a discount before executing any part of the business plan. Much of the heavy capital is already behind you. The roof was freshly coated in 2025, three of the four water heaters have been replaced, more than half of the HVAC has been updated within the past five years, and the majority of windows and sliding doors are newer. The property is not turnkey and some work remains, but the largest-ticket items are largely handled, allowing new capital to go toward filling and turning units rather than major repairs. The real story is management upside. This is a well-located building that has simply been under-managed. Five units sit vacant, rents are running roughly $130 below market, and the expense load is heavier than it should be. That inefficiency is the opportunity. The property trades at approximately a 7% cap in place, with a clear path to a 9.5% to 10% cap once stabilized. Filling the vacancies, marking rents to the $800 market as leases turn, and tightening operations pushes the yield-on-cost to around 10.9%, meaningfully above today's going-in return and above where comparable stabilized product trades. For the buyer, that management turnaround is where the cash return lives. Cash-on-cash begins near 4% while the building is being stabilized, then climbs to roughly 19 to 20% once the plan is executed, nearly a five-fold increase driven entirely by leasing and operations. None of it depends on cap rates compressing; the return is earned by running the property more efficiently.

Investment Highlights

• Priced Below Market and Below Appraised Value
• At $56,000 per unit and $80 per square foot, Lepuy is priced well beneath both recent comparable sales and its own appraised range. That discount is the buyer's margin of safety, protecting equity on day one before any of the operational upside is executed.
• Path-of-Growth Location Between Two Major Corridors
• Positioned between the Maple and Dodge Street corridors in Benson Gardens, the property is walkable to grocery, dining, and schools and within five miles of Omaha's largest employers. It sits in a defensive, low-vacancy workforce submarket with roughly 4% unemployment, supporting stable occupancy and long-term appreciation.
• Significant Management Upside
• The clearest opportunity is operational rather than physical. Five units sit vacant, rents run roughly $130 below market, and the expense load is heavier than it should be. A hands-on owner who fills the vacancies, marks rents to market as leases turn, and tightens operations can grow income substantially, moving the cap rate from approximately 7% in place toward 9.5% to 10% stabilized and a yield-on-cost near 10.9%.
• Embedded Rent Growth Without Major Renovation
• In-place rents average roughly $666 against an $800 market supported by comparable properties, representing meaningful upside on the same 700 square-foot units. Because comparable one-bedrooms command $812 at smaller sizes, the $800 target is conservative and achievable simply by bringing rents to market as units turn, without a capital-intensive repositioning.
• Major Capital Largely Addressed
• The roof was freshly coated in 2025, three of the four water heaters have been replaced, more than half of the HVAC has been updated within the past five years, and the majority of windows and sliding doors are newer. While some work remains, the largest-ticket items are largely handled, allowing new capital to focus on unit turns and lease-up and converting more cash flow into investor returns.