Highland House Villas

Investment Overview

Highland House Villas presents a rare opportunity to acquire a 160-unit, exclusively three-bedroom duplex community in one of the St. Louis metro’s most stable and undersupplied south-county submarkets. Built from 1988-1990, the property offers a low-density product type found in very few competing communities: private two-car garages and full basements paired with exclusively three-bedroom floor plans. This gives residents the space and privacy of a single-family home without the costs of ownership. Situated in Arnold, Missouri within the well-regarded Fox C-6 School District and just off Interstate 55 with convenient access to south St. Louis, Highland House Villas benefits from a deep, family-oriented, and sticky renter base that consistently outperforms typical garden-style product on retention. With in-place rents still meaningfully below the townhome competitive set and the cost of replicating this garage-and-basement product new, new ownership has a clear, immediate path to drive rental rate growth through a targeted interior renovation program — unlocking substantial NOI upside in a submarket where an asset of this configuration and scale cannot be built again. 1988-1990 Vintages, Original Developer Owned and Operated Highland House Villas was built between 1988 and 1990 and has been owned and operated by its original developer since inception, a rare opportunity to acquire an asset that has never been repositioned by an institutional operator. Its mechanical, electrical, and plumbing systems are modern, so new ownership can direct capital toward revenue growth initiatives. The family-run operating style has left meaningful upside untapped. Low-hanging opportunities include implementing normal other income charges, adding washers and dryers to each basement (already set up with hookups), adding bulk internet package, and more. These initiatives require minimal capital and can be layered in as leases renew, driving NOI growth alongside the interior renovation program without sacrificing occupancy. Irreplaceable Duplex-Style Product – All Three-Bedroom Homes with Private Two- Car Garages and Full Basements Highland House Villas offers a rare opportunity to acquire a 160-unit, duplex-style community in which every residence is a three-bedroom home averaging 1375 square feet and includes a private two-car attached garage with front and rear entry, a full basement with washer/dryer connections, a fully equipped eat-in kitchen, central air, and its own open backyard. Product of this configuration is virtually unmatched among competing apartment communities in Arnold and the St. Louis metro area, where garden-style properties typically offer surface parking and limited storage. The result is a residence that lives like a single-family rental at an apartment price point — a combination that is prohibitively expensive to replicate in today’s construction cost environment and that underpins the properties competitive positioning and resident retention.