HOME DESIGN CENTER DST
Kansas City, Missouri
Maximum Offering Amount : $3,200,000
- Minimum Investment: $300,000
- Cap Rate: 6.68%
- Projected Hold Yield: 7.00%
- Loan-To-Value: 55.11%
Home Design Center is a 46,500 square foot retail center located in the Northland area of Kansas City, Missouri. Built in 2003, The Center is currently 95 percent occupied with a total of 11 tenants providing a variety of wholesale and retail home design products and services.
HOME DESIGN CENTER PROPERTIES
Home Design Center offers one-stop shopping for builders, conveniently located near the intersection of two major thoroughfares, N. Oak Trafficway and Highway 152, and is surrounded by areas of residential and commercial growth and new construction.
INVESTMENT HIGHLIGHTS
A Convenient Location for One-Stop Shopping
- Projected returns of 7-11 percent cash-on-cash
- In-place rents 15 percent below market value
- Located in area of residential growth and new construction
- Building is 95 percent occupied with diverse rent roll of tenants
- New construction: built in 2003
LEASABLE SQUARE FEET 46,500
MINIMUM INVESTMENT: $300,000
FIRST YEAR PREDICTED YIELD: 7.00%
CAP RATE: 6.68%
PROJECTED TEN YEAR
AVERAGE ANNUAL RETURN: 13.00%
LOAN-TO-VALUE: 55.11%
LOAN TERMS: 10/30 WITH 5 YEARS I/O
10-YEAR PROJECTED RETURNS
PROPERTY OVERVIEW
Kansas City, Missouri
Nicknamed the “Heart of America”, Kansas City, Missouri is located where the Missouri and Kansas rivers meet along the state boundary between Missouri and Kansas. The Kansas City MSA currently includes 18 counties in Missouri and Kansas.
• 2005 Estimated Kansas City MSA Population: 1,947,694
• Kansas City, Missouri is the 7th largest city in Midwest
• The Kansas City MSA is the 27th largest in the US
• Below Average Cost of Living: 85.7
• Ranked 11th in terms of housing affordability (4th Quarter 2003, National Association of Home Builders)
• Ranked number 11 (Top Large Cities) on Entrepreneur Magazine and NPRC’s “2006 Hot Cities for Entrepreneurs” list
• The Kansas City metro area is currently experiencing a development boom, with more than $4 billion in new or planned construction projects underway.
The Northland
Home Design Center is located in Clay County, one of two counties that make up the Kansas City Northland area. The Northland is within 10-15 minutes’ driving distance from downtown Kansas City, Missouri and has experienced steady residential growth, in part due to its low cost of living.
• Population in Clay and Platte Counties grew three times as fast as the population of Missouri during the 1990s.
• In the past five years, Clay County alone has averaged nearly 20 percent population expansion, fueling a boom in the region’s retail markets and construction industry.*
• With large areas of open land just a short commute from downtown Kansas City, the Northland area continues to experience some of the most rapidly growing real estate development in the region.
Clay County
Central Clay County is considered one of the hot spots for new home planning and development in 2006.** The region has also aggressively targeted reconstruction in older neighborhoods, according to Ingram’s, a Kansas City business magazine.
• According to the Mid-America Regional Council, Clay County ranked third among 18 counties in the Kansas City MSA in total residential building permits from August 2005 to March 2006.
• Single and multi-family residential building permits in Clay County totaled 2,150 in 2005 and housing starts increased by more than 20 percent.
• More than $1 million was spent on the restoration of 240 homes in one program and a similar program is planned for areas along North Oak Trafficway, where Home Design Center is located.
ABOUT SRS Investments LLC
SRS Investments, LLC (“SRS”) is a private equity real estate investment firm that specializes in the creation of client wealth through innovative real estate investments. We are focused on the acquisition, improvement and ownership of properties on a nationwide basis. Through proprietary deal channels, diligent and conservative underwriting, and hands-on property management, SRS is able to consistently deliver attractive risk-adjusted returns for its investors. We co-invest with institutions, family offices and high net worth investors.