Southbrook Apartments, 226 Units, Topeka KS
Southbrook Apartments, 226 Units, Topeka KS

Class of Project: Straight Acquisition

Resident Profile: Family Designation

Use Restrictions: Section 42 – 40% AMI, 60 AMI & Market Rate

Financing: Fannie DUS Loan Originated by Grand Bridge Real Estate Capital & Bank of Montana

Limited Partner(s): Private Individual(s)

Joint Venture Partners: The Wishcamper Companies, Inc. (TWC)

Website: Southbrook Apartments

Southbrook was constructed in three phases from 1994-1995 through the Section 42 Low Income Housing Tax Credit program and was acquired by RMDG and The Wishcamper Companies as a joint-venture in 2010. At closing, the property was in its 15th year of compliance with extended rental restrictions in place. This community for families includes 226 one-, two- and three-bedroom apartments.

The property was purchased from its Limited Partner Koch Enterprises using a Fannie DUS loan and non-recourse 5.24% debt amortized over 30 years with a balloon in year 10. The intent of the partnership is to hold the asset for a period of at least 8 years, with a targeted refinance or resyndication in year 9-10, and distribute quarterly-annual dividends from operational cash flow.