Job Growth Brings MF Investors to St. Louis
Thge suburban office market in particular has become quite vibrant.
ST. LOUIS—Multifamily investors typically look for properties located in rising office markets, and the suburbs of St. Louis definitely qualify. L5 Investments and its partner BH Equities are set to pour millions into the renovation of their newly-acquired Schoettler Village Apartments, a 300-unit apartment community in Chesterfield, MO, a top submarket in the region. The owners plan to embark on an $8.4 million capital improvement program over the next three years that will satisfy the demand of local renters seeking quality apartments.
Built in 1978 and located at 15480 Elk Ridge Ln., the property sits on just over 26 acres and includes 46, three-story buildings with a unit mix of 255 two-bedroom units and 45 three-bedroom units. The community features a business center, resort-style pool, clubhouse, fitness center, fenced dog park, playground, and grill and picnic areas.
“L5 not only seeks value-add communities in densely populated areas with favorable job growth, we are also looking for high-performing school districts as they are big factors in renter demand,” says Michael Flaherty, founder and chief executive officer of L5. “Chesterfield is home to the highly regarded Parkway School District which is among the top five districts in the entire state. Ultimately, these key fundamentals all point to continued sustainability and subsequently, appreciation of real estate assets over the long-term.”
The renovation plan includes upgrading unit interiors with new high-end flooring, lighting and appliances as well as installation of washer/dryers in 180 units that don’t already have this high-demand amenity. Exterior upgrades will include improvements to carports, landscaping, pool area, and a number of other cosmetic and systems enhancements to create a functional and high-quality living community.
Chesterfield is approximately 20 miles west of Downtown St. Louis. The property is located along the I-64 / US Hwy. 40 corridor, a short drive to major area employers including Monsanto, RGA, Pfizer, Centene, St. Luke’s Hospital, and Washington University. The St. Louis region ranks among the top 50 “Best Places to Start a Career” per WalletHub which also ranks the area among the top 20 metro areas in the nation for STEM professionals.
Andrea Kendrick and Ken Aston of Berkadia brokered the transaction on behalf of both the buyer and the seller in an off-market transaction.