SouthRidge Apartments

Investment Overview

Significant Recent Capital Investment Creates a “Best-in-Class for Vintage” Offering Ownership has invested approximately $5M in capital improvements since acquiring the asset, funding a comprehensive repositioning of a property originally built in 1964. The result is a well-maintained, exceptionally clean offering that outperforms typical expectations for its vintage and stands apart from comparable-era product in the submarket. Proven Value-Add Opportunity with Demonstrated $200+ Rent Premiums Renovations completed to date span roughly 35% of the 372-unit inventory, and those upgraded units are already achieving rent premiums of 20% per month over classic, unrenovated units. This track record gives incoming ownership a fully validated roadmap for completing the value-add business plan across the remaining unit base, with a clear path to continued NOI growth. Extensive Amenity & Common Area Renovations Elevates Resident Experience and Differentiates Southridge Within the Competitive Set Beyond individual units, ownership has reinvested in the property’s common areas, including an upgraded clubhouse and lounge, a modernized fitness center, and a refreshed resort-style pool area. These improvements meaningfully elevate the resident experience and position Southridge ahead of competing vintage assets on curb appeal and amenity offering. Strategic Kansas City Location with Immediate Access to Major Highway Corridors and Regional Employment Hubs Southridge sits within Kansas City, Kansas’s established and supply-constrained Rosedale submarket, an infill location that limits new competitive deliveries. Its position provides immediate connectivity to major regional highway corridors, giving residents efficient access to employment centers across the broader Kansas City metro. Attractive Assumable Debt Structure Enhances Day-One Yield Southridge offers a buyer the ability to assume the property’s existing financing, which carries favorable, below-market terms relative to financing available in today’s lending environment. This structure materially enhances day-one cash flow and leveraged returns compared to originating new acquisition debt at current market rates. Institutional Scale with 372 Units in an Infill Kansas City Location At 372 units, Southridge offers the scale and diversified one-, two-, and three-bedroom unit mix that appeals to institutional buyers seeking operating efficiency. Its infill Kansas City positioning combines that scale with limited new supply risk in the surrounding submarket. Compelling Basis Supported by Proven Rent Growth and Remaining Upside The asset’s basis is attractive relative to recent sale comparables and given the scope of capital investment already completed and its well-located, supply-constrained submarket. Combined with proven in-place rent growth and conservative forward rent growth assumptions, this basis leaves meaningful room for continued NOI upside as the remaining renovation program is completed.