Investor · Bay Area, CA · Member since 2014 · 165 posts · 45 votes
I am trying to choose between investing in two Syndication Opportunities in Kansas City as a Limited Partner and am seeking local BP input as to which neighborhood is may be better.
One of the Syndication Offerings involves a B class townhouse style community in the College Blvd and Hauser Street area of Lenexa with reported good access to Hwy 435 and Hwy 35....The other is a B class garden style apartment community along S. Jackson Drive in the Hwy 70 and Hwy 470 area of Independence.
Thanks in advance for any insight offered about the pros and cons of these areas or which neighborhood would be preferred over the other.
Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
7y
@David S. Lenexa is in Kansas. Downtown KC is in Missouri. Independence in Missouri. Vastly different feels, and end users. Lenexa has great schools and the development around the city center is incredible. Kiewit is moving a large portion of their employees there. We build SFR in Lenexa. I like certain parts of eastern Jackson county-lees summit, blue springs etc. Two totally different locations.
Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
7y
@David S. I think you need to start with the end in mind. Not sure what your investment goals are and if they align with the business plan. I second @Hadar Orkibi in saying the GPs are more important than the location. Happy to chat with you as I am local and a sponsor here as well.
Investor · Bay Area, CA · Member since 2014 · 165 posts · 45 votes
7y
@Logan Freeman@Hadar Orkibi. Thank you for your feedback. Let's assume I am happy with the sponsor and all the other components of the deals. They are both similar in that they are not overly leveraged (about 70% loan to purchase price and much better on loan to cost) and have 10 year fixed rate debt and offer similar COC with target 7 year hold).....I am just trying to choose between the two locations because I do not want to invest in both.
Investor · Bay Area, CA · Member since 2014 · 165 posts · 45 votes
7y
@Logan Freeman. I thought both Lenexa and Independence were both in Kansas City. They both appear to be about 20 minutes away from Downtown KS. Independence is east of Downtown KC while Lenexa is SouthWest of Downtown KC.
Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
7y
@David S. Lenexa is in Kansas. Downtown KC is in Missouri. Independence in Missouri. Vastly different feels, and end users. Lenexa has great schools and the development around the city center is incredible. Kiewit is moving a large portion of their employees there. We build SFR in Lenexa. I like certain parts of eastern Jackson county-lees summit, blue springs etc. Two totally different locations.
Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
7y
@David S. Considering location only and based on the fact that both syndication opportunities posses similar return targets, I would also vote Lenexa. Both areas seem to be solid B locations, however the property on College Blvd and Hauser Street is surrounded by A/B neighborhoods all throughout. The property along S. Jackson Drive has much less buffer between it and the surrounding riskier C, D and F locations. If the intent is to hold long term, having a buffer may prevent the location from worsening over time if the city as a whole trends downwards.
I am trying to choose between investing in two Syndication Opportunities in Kansas City as a Limited Partner and am seeking local BP input as to which neighborhood is may be better.
One of the Syndication Offerings involves a B class townhouse style community in the College Blvd and Hauser Street area of Lenexa with reported good access to Hwy 435 and Hwy 35....The other is a B class garden style apartment community along S. Jackson Drive in the Hwy 70 and Hwy 470 area of Independence.
Thanks in advance for any insight offered about the pros and cons of these areas or which neighborhood would be preferred over the other.
I would agree with everyone else on Lenexa being the better area than Independence assuming everything else is equal.