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CHICAGO and KANSAS CITY, Mo. – March 14, 2019 – Berkadia announced today the sale of The Landings at River Market, a 141-unit multifamily property in Kansas City, Missouri. Directors Michael Sullivan and Brett Meinzer of Berkadia’s Kansas City office and Managing Director Alex Blagojevich of the Chicago office completed the sale on behalf of the seller, a joint venture between Artemis Real Estate Partners and Missouri-based CRES Management, LLC, and the buyer, Santa Cruz, California-based Canyon View Capital. The deal closed on February 25.
“The demand and optimism for well-located value-add assets has never been higher,” said Meinzer. “Especially when you consider the rent points that are being achieved in the Class A space and the rent gap between Class A and Class B product. The transactional markets remain highly liquid and cap rates remain low.”
Located at 213 Delaware St., The Landings at River Market is a low-rise apartment community comprised of three historic converted buildings known as Askew Saddlery, Volker Place and Pacific House. The properties were originally constructed as industrial/warehouse-type assets in the mid-to-late 1800s and were transformed to residential in the 90s, preserving the building’s historic character and charm while offering unique loft-style studio, one- and two- bedroom floor plans. On-site amenities include a laundry room, an elevator, a barbecue area and a courtyard.
“Given the highly competitive nature of the offering, Artemis and CRES elected to engage Canyon View Capital based upon the aggressive pricing and terms set forth in their offer,” added Meinzer. “Canyon View Capital was an exceptional purchaser from start to finish and performed exactly at the agreed upon terms. Artemis and CRES purchased the real estate in original condition in 2014 and upgraded more than half of the units, proving the rent upside, which left the remaining units to be upgraded by the Buyer. Canyon View Capital was looking for a value-add loft-style product in Kansas City’s urban core, and The Landings at River Market fit the profile perfectly.”
“With almost 2,000 units in the Kansas City market, The Landings was an ideal asset to bring Canyon View into the River Market neighborhood,” said Gary Rauscher, President of Canyon View Capital. “Not only were we excited that our first loft-style property was such a solid asset, we were more than pleased with the professionalism and attention to detail provided by both Berkadia and CRES Management during this transaction. We expect The Landings at River Market to further the success of our Kansas City portfolio for years to come.”
“We consider ourselves very fortunate to retain the existing employees for The Landings and ensure continuity and familiar faces for the current residents,” added David Smith, Director of Operations, Canyon View Properties. “We plan to continue with the rehab project, commenced by CRES, thereby enhancing the lifestyle experience for our new residents.”
The property embodies the ideal combination of a dynamic downtown location with significant value-add potential through continued and proven re-positioning. Interior renovations have been completed on approximately 55 percent of the property. This value-add, transit-oriented offering is situated along the Kansas City Streetcar line in the vibrant River Market District in downtown Kansas City and has a location that is directly accessible to the entirety of Kansas City’s interstate system.