Summary

Point West Apartments, a 172 unit apartment complex, is located in Johnson County, the most prominent area of greater Kansas City.  Johnson County ranks number one in residential growth in greater Kansas City adding, on average, 10,000 new residents each year for the last ten years, and is one of the country’s fastest growing commercial centers fueled by an abundant, well-educated labor pool, excellent housing, nationally ranked schools, high quality of life, and the recognition by major corporations as an area with inherent location advantages and a top quality labor supply.

As of January, 2005, approximately 144,021 people reside within a five mile radius of Point West.  The number of households in this radius has increased at an average rate of 2.4% since 2000. The average home value in the Point West zip code is $207,585 and average household income is $90,358.  The City of Lenexa is working steadily to fulfill a goal of its comprehensive plan to create a unique and identifiable “city center” which would both be located more central to the city’s future geography and be a gathering place for shopping, dining, recreation, and employment. The site of the Lenexa City Center is focused on the intersection of West 87th Street Parkway and Renner Boulevard, immediately west of Point West Apartments.  The Golf Club of Kansas is under construction for its 18-hole golf course, which is located immediately west of the city-owned portion of City Center.
The primary strategy is to implement a modest rehab program upgrading primarily interior elements plus certain exterior features to compete with apartment projects, which are ten years less in age.  The Operator anticipates re-naming the property upon the implementation of the rehab program.  The real estate acquisition price inclusive of rehab expense is approximately 20% below replacement cost.  Apartment market fundamentals in the area are characterized by high occupancy levels in both the current competitive set and relative to those properties which Point West is expected to compete post-rehab with concessions on the decline and the lack of new supply.