The Missouri Four Portfolio Saint Joseph | Holts Summit | Cameron | Richmond, Missouri

Investment Summary

• Highly Coveted Market Rate Conversion Opportunity
• Meticulously Maintained Portfolio by Original Developer
• Significant Value-Add Upside with Strategic Modernization & Immediate Market Rate Transition
• Extremely Attractive Basis – Well Below Current Replacement Cost
• Strategically Located Assets with Strong Regional Dynamics
• Desirable Unit Mix & Sizes
• Offered Free & Clear of Existing Debt

Highly Coveted Market Rate Conversion Opportunity 

As the Missouri Four Portfolio approaches the end of its extended use period, effective January 1, 2025, LIHTC rent and income restrictions will be lifted. Additional rent restrictions from MHDC debt regulatory agreements will be lifted upon loan payoff at closing. This pivotal change will enable a transition to market-rate rents, unlocking substantial revenue potential. Additionally, the removal of these restrictions will eliminate previous constraints on generating additional income, such as parking fees, utility billbacks (RUBs), and pet fees. This combination of higher rental rates and new revenue streams is set to significantly enhance the portfolio’s overall profitability.

Meticulously Maintained Portfolio by Original Developer

Built to high-quality standards in 1995, the Missouri Four Portfolio has been meticulously maintained by the original developer for nearly three decades. This portfolio’s first appearance on the market presents a rare opportunity to acquire well-preserved assets that will become open to all renters for the first time. The longstanding ownership has ensured that these properties have been consistently well-kept, laying a solid foundation for a new owner to leverage modernization and achieve significant upside.

Significant Value-Add Upside with Strategic Modernization & Market Rate Transition

The upcoming end of the LIHTC program presents a unique opportunity to significantly enhance the value of the Missouri Four Portfolio. As restrictions are lifted, the quick transition to market-rate rents will drive immediate revenue growth. Additionally, the portfolio’s classic units offer substantial upside through targeted modernization. By investing in cost-effective upgrades, investors can further boost rental rates and attract higher-paying tenants. These enhancements will substantially increase cash flow and overall asset value, maximizing the portfolio’s return on investment.

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