Griffin Capital (Union – Kansas City, MO) DST

Overview

The property is a multifamily residential apartment community located at 1000 Berkley Parkway, Kansas City, Missouri 64120, commonly known as “Union Berkley Riverfront” (the “Property”). The Property consists of approximately 6.25 acres of land, upon which is situated two four-story buildings and one, three-story parking garage. The Property provides residents with views of the Kansas City skyline and contains various amenities, including a resort style-pool, a dog park, multi-purpose sport court that includes pickleball, outdoor kitchen with grilling stations, fitness center, which includes a yoga studio, and a pet spa and grooming station. The Property contains a total of approximately 380,563 square feet of net leasable floor area across 407 apartment units and a total of 437 parking spaces. In addition to the apartment units, the Property contains three guest suites that are available to rent for short periods of time as an additional amenity for tenants and 14,242 square feet of net leasable commercial floor area across three commercial units.

The investment objectives for the Property will be to (i) preserve the Purchasers’ capital investment, (ii) make monthly distributions estimated to start at 4.30% annualized for Year 1 and projected to range from 4.30% to 6.34% annualized from Year 1 through Year 10, which may be partially tax-deferred as a result of depreciation and amortization expenses, and (iii) sell the Property at a profit within approximately five to ten years.

Completed in 2018, the Property is both well-located and maintains an attractive and competitive position in the marketplace. The Sponsor, in partnership with the Property Manager, will implement strategies to enhance the Property’s operational performance and position it for long-term success. The Sponsor believes the Property is appropriately situated to capitalize on strategic enhancement initiatives including the implementation of institutional quality property management and marketing practices.

The Sponsor seeks real estate investments with operational, physical, and/or market-based enhancement opportunities where its experience and expertise can be deployed to create and realize long-term value. The Sponsor believes the Property meets this investment criteria and offers an opportunity to acquire a well-constructed asset in a location supported by a compelling and diversified set of demand drivers. The compelling characteristics identified for the subject acquisition include growing employment, direct access to the Riverfront District, which is currently undergoing a transformation underpinned by significant capital investment (over $1 billion of public and private investment), and proximity to major retail nodes in the Downtown Kansas City submarket, complemented by new public transit options.