Investment Opportunity
Equity Distribution: Manager (General Partner) = 30% / Investor (Limited Partner) = 70%
The Red Point
Kansas City, Missouri
22 units
- Purchase Price → $3.075M
- Total Capital Raise → $1.1M
- Total Return ≈ 20%
- Cash-on-Cash Return ≥ 8%
- Preferred Rate of Return = 7%
The Kapital
Topeka, Kansas
36 units
- Purchase Price → $2.8M
- Total Capital Raise → $1.1M
- Total Return ≈ 24%
- Cash-On-Cash return ≥ 10%
- Preferred Rate of Return = 7%
Capital Sources and Uses
50%
The Kapital
- Downpayment (30%) = $840K
- Closing Cost (2.5%) = $70K
- Loan Poins (1%) = $19.6K
- 1st Year Insurance = $24.9K
- Acquisition Fee (3%) = $84K
50%
The Red Point
- Downpayment (28.9%) = $876K
- Closing Cost (2%) = $61.5K
- Loan points (1%) = $22K
- 1st Year Insurance = $20K
- Acquisition Fee (3%) = $92.25K
- Initial Capex = $20K
The Red Point Apartments
Property Details
3240 Harrison St, Kansas City, MO 64109
- 22 units (1-Bedroom = 10 units, 2-Bedroom = 12 units)
- Fully Renovated in 2020 (includes flooring, cabinets, stainless steel appliances and granite countertops)
- New roofs, mechanical, electrical and plumbing
- Gated parking, fitness center, storage lockers, washer/dryer in units
- Rooftop solar panels further reducing utility costs
- Assumable loan with 4.1% interest till October 2030
DEAL OVERVIEW
Prime Location
Located in Kansas City's Midtown Neighborhood near shops and restaurants
Transportation
Within walking distance to the Main Street Expansion of the KC Streetcar
Education
Locally surrounded by several education institutions such as Kansas City Art Institute, Rockhurst, UKMC and MCC
Attractions
Nelson-Atkins Museum of Art ~1.5 miles, National World War Museum - 2 miles, Kansas City Zoo and Aquarium approximately
7 miles
MARKET ANALYSIS
Kansas City, Missouri
Current Market Metrics
- Cap Rates: Average cap rates are in the mid-5% to low-6%
- Occupancy: Holding Steady – 95-96%
- Rent Growth: Moderating but Positive – 3-4%
- New Construction:As of October 2024, roughly 7,900 units were under construction.
- Job Growth: +1.4% year-over-year.(2024)
- Unemployment rate: 3.4%
- Population growth: 12-13K last year
Forward Rental Market Outlook
- Highly affordable: rent-to-income ratio ~29% vs. 33% U.S.
- Ideal for conservative, cash-flow-focused investors seeking Midwest stability with upside in select submarkets.
- High mortgage rates keep would-be buyers in the rental market longer, sustaining demand.
- Class B/C (workforce housing): Strong demand continues; expected growth ~3%–4.5%.
Upcoming Developments & Job Creation (2025–2030)
RKansas City, Missouri
Berkeley Riverfront Development
- Overview: An $800 million mixed-use project featuring residential units, public spaces, and retail establishments along the Missouri River.
- Timeline: Construction began in 2024, with phased completion through 2030.
- Impact: Expected to generate significant employment opportunities and enhance the city's waterfront appeal.A
KC Streetcar Expansion
- Overview: Extension of the streetcar line to improve public transit connectivity.
- Timeline: Main Street extension to UMKC scheduled for completion in early 2025; Riverfront extension anticipated by 2026.
- Impact: Facilitates urban mobility and supports transit-oriented development.W
Google Data Center
- Overview: A $1 billion investment by Google to establish a data center in Kansas City.
- Timeline: Announced in 2024, with construction expected to commence shortly thereafter.
- Impact: Projected to create numerous high-tech jobs and attract ancillary businesses.T
Margaritaville Hotel
- Overview: A $150 million hotel development offering tropical-themed amenities.
- Timeline: Set to open in mid-2025.
- Impact: Anticipated to boost tourism and hospitality employment.
The Kapital Apartments
Property Details
1306 SW Harrison St, Topeka, KS 66612
- 36 units (Studio = 12 units, 1-Bedroom = 12 units, 2-Bedroom = 12 units)
- Fully Renovated in 2022 (includes flooring, cabinets, stainless steel appliances and granite countertops)
- New roofs, mechanical, electrical and plumbing
- Gated parking, granite countertops, washer/dryer in units
DEAL OVERVIEW
Prime Downtown Location
Located in the heart of Downtown Topeka near restaurants and major employers
Government Proximity
Walking distance to the Kansas State Capitol
Educational Institutions
Minutes from Washburn University and University of Kansas Health System
Transportation Access
Nearby major highways allow for quick access to other markets
Local Attractions
Charles Curtis House Museum - 0.27 miles, Parks and historic sites within 3 miles radius
MARKET ANALYSIS
Topeka, Kansas
Current Market Metrics
Inventory: Roughly 9,700 multifamily rental units in total
- Construction: No new units were added between 2022 -2023
- Cap Rates: Past three years, transaction cap rates averaged 7.1%
- Occupancy: City-wide vacancy rate is about 8.3%
- Rent Growth: Asking rents climbed about 5.0% over the past 12 months
- Affordability: The average monthly rent - $910 per unit
Forward Rental Market Outlook
- Rent growth forecast (2025): +3–5%.
- Vacancy forecast:~7%.
- Market position: Stable Midwest tertiary market with high yield, low competition, and moderate risk.
Upcoming Developments & Job Creation (2025–2030)
Topeka, Kansas
Polk-Quincy Viaduct Project
- Overview: A major infrastructure project aimed at improving traffic flow and safety in downtown Topeka.
- Timeline: Construction began in 2023, with completion expected by 2026.
- Impact: Anticipated to create numerous construction jobs and stimulate economic activity in the area.
Kansas State Capitol Restoration
- Overview: A comprehensive restoration of the historic Kansas State Capitol building, including structural repairs and modernization efforts.
- Timeline: Ongoing, with significant milestones achieved annually through 2029.
- Impact: Supports local employment in construction and tourism sectors.6
Target Distribution Center
- Overview: An $80 million investment by Target to establish a distribution center in Topeka.
- Timeline: Completed in 2024.
- Impact: Created over 600 jobs, bolstering the local economy.
Investment Projections
Minimum Investment = $50,000 Each
Red Point
Detailed financial projections for the Red Point property investment showing expected returns over the investment period.
The Kapital
Comprehensive financial projections for The Kapital property investment outlining the expected performance metrics.
Cash Flow Projections
Red Point Apartments
The chart above illustrates the projected annual cash flow for the Red Point Apartments investment over a 7-year period, showing steady growth in returns as property performance improves through strategic management and market appreciation.
Cash Flow Projections
The Kapital Apartments
The bar chart displays the projected annual cash flow for The Kapital Apartments investment over a 7-year period, demonstrating consistent growth in returns as the property performance improves through strategic management and market appreciation.
Contact Us
Ready To Invest
Would like to have more detailed information:
VELES HOLDINGS, LLC