CHICAGO and KANSAS CITY, Mo. – July 17, 2020 – Berkadia today announced the sale of Coach House, an 807-unit garden-style multifamily property in Kansas City, Missouri. The property was traded for a total price of $81.5 million, which represents a 5.02 percent in-place cap-rate. Berkadia’s Mid Markets Group, led by Senior Managing Director Alex Blagojevich and Managing Director Michael Sullivan, as well as Director Brett Meinzer and Associate Director Dominic Martinez, completed the sale on behalf of the seller, Virginia-based Harbor Group International. The deal closed on June 30.
Harbor International purchased Coach House as part of a $1.85 billion portfolio of assets they had acquired in early 2020. They quickly identified the asset as a prime candidate for disposition, as it fell outside of the company’s strategic and geographic focus. The buyer, a private individual based out of San Francisco, had to recapitalize multiple assets in order to access the necessary amount of equity to purchase this property. Said assets included bank refinances, a preferred equity investment and an agency refinancing, which was also completed by Berkadia.
“This deal already had a number of complicating factors that made closing more difficult than usual. Not the least of which was the addition of the pandemic shutdown which hit almost immediately after the parties went under contract,” said Blagojevich. “As a result, accessing the equity to make the acquisition became more complicated, largely because both lender and investor guidelines changed almost overnight. It took a full team effort to overcome these challenges. In the end, not only did we get it done, but we were also able to preserve the original terms—as they remained unchanged through closing.”
Located at 655 E Minor Drive, Coach House features one-, two- and three-bedroom floor plans with large closets. Community amenities include a swimming pool and a tennis court. Residents are afforded convenient access to Minor Park Golf Course and Interstate 435.