San Remo Apartments

Highlights:

• 75 Apartments Across 3 Buildings
• 2 Commercial Units on N Kingshighway
• Located in an Opportunity Zone
• Huge Development Pipeline in the Neighborhood
• Significant Value Add Opportunity through Stabilizing Occupancy & Raising Rents
• Rents Approximately 10-15% Below Market
• Portfolio Spread Across Three Buildings
• LIHTC Property - Certain Restrictions Apply
• Future Potential to Convert Property to Market Rate

Description:

CALL FOR OFFERS/OFFER DEADLINE DATE SET FOR SEPTEMBER 28TH AT 5:00 PM CST. The San Remo Apartments in the Fountain Park neighborhood of St. Louis City consist of 77 rental units comprised of 75 apartments and two commercial units. The offering is spread across three buildings. Two of the buildings are across the street from one another with the third being 0.15 miles to the West.

The portfolio offers an incredible value add opportunity to increase occupancy and raise rents. This can be achieved through light cosmetic updates as well as through management efficiencies. The properties are all located in an Opportunity Zone. The neighborhood is primed for development and significant investment is already underway and planned. Please refer to the section regarding Notable Developments and Projects in the Area for further specifics.

The property was redeveloped as a LIHTC project approximately 16 years ago. The 15 year mandatory compliance period ended on 12/31/19 and the property is currently in an additional 15 year compliance period through 12/31/34. The LURA is available after a confidentiality agreement has been executed by prospective purchasers.

MHDC and HUD will need to approve the purchaser and property manager.

The property is located less than 1,000 feet North of the premier Central West End Neighborhood and is in the North City submarket of St. Louis City and is specifically in the Fountain Park neighborhood.

Significant development and investment are planned in and around Fountain Park. Please see the section in this offering memorandum for specifics regarding the notable developments and projects that are taking place in the area. The City of St. Louis is highly focused on revitalizing North City and this area in particular. Several developers have focused in on the Fountain Park neighborhood and have sizable projects planned. This is an incredible time to get in the neighborhood on the ground floor.

The vacancy rate in the North St Louis City Submarket has compressed moderately over the past four quarters, and at 10.9%, is below the long-term average.

Nothing has delivered over the past year, extending a prolonged break from building in the submarket. Rents have increased by 2.5% over the past year, which exceeded the average annual growth of 1.5% over the past decade.

There is some investment activity in the broader North St Louis City Submarket. Over the past three years, there have been a solid number of notable transactions. The market price, which is an estimated price of all properties in the submarket, has risen dramatically over that time period and now stands at about $59,000/unit for market rate properties.

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