
Post Road Management has acquired a portfolio of 11 multifamily communities totaling 1,002 units across Wichita, Kansas, and the greater metro area for $63.7 million. Nearly tripling Post Road’s footprint in the market, the acquisition ranges from workforce to Class A housing.
“More than three years ago, our team had the foresight to enter the Wichita market, which is experiencing organic growth and saw an exceptional recovery from the pandemic. We acquired four properties totaling 572 units before the purchase of this portfolio,” explains principal and partner Borko Milosev. “Wichita is a supply-constrained market, with absorption surpassing unit deliveries in 2022, and this trend is projected to continue to be the case through this year.”
The acquisition presents Post Road the opportunity to leverage economics of scale within the market, increasing its employees from 13 to 42—a growth milestone for the firm. “As part of our proven investment strategy, we are taking over property-level management of these communities and have hired a regional manager, community managers, maintenance technicians, and project managers in conjunction with this portfolio acquisition,” says Milosev. “We are delighted to be able to expand our team of talented professionals so rapidly, reaching over 100 team members nationwide with these latest additions. We look forward to similarly deepening our capabilities and scaling in other high-growth markets throughout the country.”
All located near significant demand drivers, the new portfolio includes: Kingston Cove, 252 units; Cimarron Apartments, 132 units; Stratford East, 104 units; Park Meadows, 96 units; The Willows, 80 units; Willows South, 16 units; Stratford West, 78 units; Danish Village, 78 units; Pine Creek, 68 units; Edgemoor Townhomes, 56 units; and Cottonwood Crossing, 42 units.
Greg Rarick, vice president of acquisitions and dispositions, says the firm plans to invest an average of approximately $12,000 per unit in upgrades across the portfolio.
“Our investment basis per unit provides a significant upside. Only 21% of the total units have been fully renovated, allowing us to unlock value-add potential. Residential tenants in Wichita pay only 17% of their income on rent, indicating an opportunity to entice those who may be interested in paying a premium for upgraded space in the market,” Rarick says.
“From functionally designed studios to three-bedroom townhomes, this unique collection of units provides renters with a multitude of options to choose from when finding their next place to call home.”
The 11-community portfolio was purchased with assumable non-recourse Fannie Mae and Department of Housing and Urban Development financing in place. According to Rarick, the favorable options of supplemental financing and interest-only payments created more incentive for purchasing the portfolio at this time. Alex Blagojevich, Brett Meinzer, Colton Howell, and Richard Redding of MMG Real Estate Advisors represented the seller and sourced Post Road Management as the buyer in this transaction.