SAN FRANCISCO, CA (DECEMBER 2021) — Polaris Real Estate Partners, principal investors and managers of multifamily properties in the mid-western and central United States, has sold the 124-unit Hilltop Village Apartments in Kansas City, MO. This sale is the twelfth full-cycle capital event of their current portfolio – properties acquired, improved and then sold – of 30 assets purchased since 2012. The average net return to investors for the twelve projects sold was 145.5%, or 32.0% annualized.
“At the time of purchase, Hilltop Village was our first investment in Kansas City. It had extensive deferred maintenance issues and a lackluster operational history. We upgraded the property’s physical plant by renovating the office, replacing wood trimwork and balconies and renovating many units while streamlining expenses and increasing income. These and other efforts added to the value of the property, ultimately providing our investors a net return of 193.3%, or 33.7% annualized,” stated Travis Pacoe, managing general partner of Polaris Real Estate Partners. “Many of the Hilltop investors exchanged into Hilltop from the sale of Shannon Hills in Colorado Springs, which we had acquired in February of 2013. With the sale of Hilltop, those investors earned a return of approximately 596.3% on their initial Shannon Hills investment over an 8.5-year investment period.”
“Hilltop Village is our fourth transaction for 2021 and we are planning to complete a 1031 exchange with the proceeds, allowing our Hilltop Village investors to defer capital gains taxes while additionally providing equity in a new investment for non-trading investors who wish to join us,” general partner Ron Abta noted. “We’re pleased to be able to sell Hilltop Village and provide exceptional returns to our investors well in excess of our target.”
Polaris Real Estate Partners specializes in multifamily investment in the mid-western and central United States, with its principals collectively holding 50 years of direct real estate investment experience. With substantial, dedicated equity, the company and its principals have acquired multifamily properties, warehouses, manufacturing facilities and retail properties as well as improved and unimproved land. Polaris is also deeply committed to enriching the lives of its residents through its social impact programs and community improvement efforts. Polaris Real Estate Partners is currently seeking individual properties or portfolios of 200 to 1,000 units in size in its targeted areas.