KANSAS CITY, MO-Philadelphia-based BPG Properties Ltd. has purchased three apartment complexes here and in Lenexa as part of its $850-million BPG Investment Partnership VIII & VIIIA LP fund. The three properties of 483 units were purchased for $22.4 million, and will be managed by BPG's multifamily subsidiary, Madison Apartment Group LP.
Woodridge and Oaks at Mill Creek are on 87th Street near Interstate 35 in Lenexa. Woodlands of Kansas City is in Kansas City, MO. Amenities at the complexes include a mixture of one- and two-bedroom units, swimming pools, fitness centers, and tennis and volleyball courts. The 21-year-old Woodridge rents for $520 to $690 per month, people at the 36-year-old Oaks rent for $565 to $715 per month and the 20-year-old Woodlands rents for $635 to $805 per month.
Steve Pogarsky, VP with BPG, tells GlobeSt.com that the properties fit the fund's class B, value-add multifamily acquisition strategy. "We're in search of value-add returns," he says. "We probably have about 15% to 20% invested in this fund. Once we hit 50% to 75%, we'll start raising equity for our ninth fund." Madison owns and operates about 100 apartment properties, with about 25,000 units in 22 states, in different funds.
Pogarsky says the three complexes could use a little attention. His company is spending about $3 million on capital improvements to upgrade and improve siding, roofs, parking lots, sidewalks, landscaping and unit interiors.
The Kansas City multifamily market is good and steady, Pogarsky says. "This area is consistent with our view of the Midwest; things don't get too bad, but they don't get too great, either. It's predictable, with smooth returns," he says.
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