West End Portfolio St. Louis, MO

Investment Highlights

• Significant Loss to Lease Upside Opportunity of $134/Unit/Month  
• 3 Year Effective Age & Significantly Below Replacement Cost
• Attractive, Fully Amortizing, 4.23% Fixed Rate HUD Debt (Including MIP)
• Central St. Louis Location Close to Dining, Shopping, & Entertainment 
• In-Place HAP Contract Offers Economic Resiliency Through Government-Backed Subsidized Rental Payments
• Demonstrated Value-Add Upside in the Submarket

Significant Loss to Lease Upside Opportunity of $134/Unit/Month 

The West End Portfolio presents a compelling investment opportunity with noteworthy loss to lease upside potential of $134 per unit per month. This figure reflects the significant room for improvement in current lease rates, allowing for increased profitability and enhanced return on investment. This portfolio stands poised to capitalize on the demand for quality rental properties, ensuring a robust income stream and potential for long-term value appreciation.

3 Year Effective Age & Significantly Below Replacement Cost

The West End Portfolio consists of four fully rehabbed historic buildings (2020’s), offering new ownership the opportunity to own multiple well-located assets with a 3-year effective age significantly below replacement cost.

Attractive, Fully Amortizing, 4.23% Fixed Rate HUD Debt (Including MIP)

In 2021, Ownership was able to acquire highly attractive HUD debt on the property which can be assumed by a purchaser, allowing for a high leverage acquisition with favorable financing. The terms of the assumable debt are as follows: 

• Servicer – Dwight Capital
• Interest Rate – 4.23% (Including MIP)
• Amortization – 40 Years/480 Months
• Original Balance – $6,310,535
• Current Balance (12/1/2023) - $6,155,591
• Origination Date – July 2021
• Maturity Date – July 2061
• Combined Monthly Debt Service Payment (P&I&MIP) – $28,213