Pacific Sands Funds is currently under contract to purchase a 54-unit apartment project for $3.025m or $56K per door and a 16-unit apartment project for $1.85m or $116K per door. Both of these properties stand to benefit from strong increases in market rents after performing capital improvements on the properties.

The 56-unit apartment project is located in Independence, MO, which is in close proximity with two other projects we own. We see an excellent opportunity to synergize our management staff and therefore reduce operating costs. The property is located with direct major highway access and offers some of the best schools and hospitals in the area. This property was constructed in 1971 with minimum deferred maintenance, and we have experience working with the seller on some of our previous deals.

The 16-unit apartment property is located in Kansas City, MO, between Westport and Country Club Plaza, which is expected to fuel strong demand with its exclusive collection of office, retail, restaurant, hotel, and residential properties. This property was constructed in 1920 and has been well maintained. We see upside in capturing significantly increased market rents for these units via overhaul on the interiors, exteriors, as well as adding an additional 2 units on the lower level.

These acquisitions are strong investments that together stand to benefit from up to $1.02m in proposed capital improvements, improved property management, and increased average rents between 19-20%+.

We are attracted to Kansas City and this market due to its educated work force, low cost of living, high disposable income, and lack of rent control barriers. Additionally, KC has shown strong signs of resilience throughout the pandemic with an overall low unemployment rate and low collections delinquency rate. We have been investing in Kansas City for the last 2.5 years and are bullish about these particular investments.