KANSAS CITY, MISSOURI (January 5, 2022) – Northmarq’s Kansas City’s investment sales team of Jeff Lamott, managing director and Gabe Tovar, vice president completed the $42.5 million sale of the 280-unit Fountainhead and Three Fountains portfolio. Kyle Tucker and John Duvall with the Kansas City Mortgage Banking Team provided competitive financing through Freddie Mac for the buyer. NorthMarq represented the seller, JB Partners, a national multifamily investor. The buyer was Revitate Cherry Tree, a Newport Beach, California-based investment company.
Built in 1985, Fountainhead features three-story buildings with exterior breezeways and varying set of one- and two-bedroom apartments. Three Fountains is a unique mix of one-story ranch townhomes, and a second phase of traditional townhomes with tuck-under garages. Both communities offer fitness centers and resort-style swimming pools.
“Cherry Tree targets workforce housing investment opportunities throughout the Midwest in secondary and tertiary markets that have consistent employment growth and positive net in-migration. The Fountain Portfolio was a great fit to allow us to engage our best-in-class asset management and operational services for the residents we are excited to serve,” said Revitate Cherry Tree Co-Founder and General Partner Chris Marsh.
“Out of state investors, particularly investors from the West Coast, continue to see the potential of the multifamily market in the Midwest. Between job growth, new developments and the cost of the living, Kansas City is the ideal location for buyers to receive tremendous returns on their investments,” said Jeff Lamott.
The sale comes in the context of strong improvement from last quarter, according to Northmarq’s Q3 Kansas City Market Report. A surge in absorption drove vacancy rates lower and the heightened demand fueled rent growth. With the economy improving, additional gains are forecast for the local rental market. And despite the quarter-to-quarter fluctuations, transactions registered in Q3 are ahead of levels from recent years, indicating steady demand in the market. Read the full report.