Introducing The Montage at Lee’s Summit: A Promising MultiFamily Development

EquityMultiple, a big name in real estate investing, is talking about a cool new MultiFamily development in Lee’s Summit, Missouri. It’s called The Montage at Lee’s Summit, and it’s all about townhomes and villas for rent. They’re aiming for a 22.8% return on investment, which sounds pretty sweet. But can they really pull it off? Let’s dig in and see what this Lee’s Summit project is all about.

Key Details of The Montage at Lee’s Summit

* What it is: Townhomes and Villas
* Investment Type: Equity
* When it’s closing: January
* How long to hold: 36 Months
* Minimum Investment: $15,000
* Projected Returns:
* IRR: 22.8%
* Multiple: 2.0x
* Cash-on-Cash (average): 7.6%

Features and Amenities of The Montage at Lee’s Summit

The Montage at Lee’s Summit is gonna be a 226-unit community with tons of cool stuff like trails, water features, shady hangout spots, firepits, pickleball courts, a dog park, clubhouse, gym, and a fancy pool. According to the Investor Packet, this place has everything you need for a great real estate investment: awesome location, more people moving in, lots of jobs, low unemployment, higher incomes, rising rents, and not many empty units.

Exploring Lee’s Summit: A Thriving Suburb in Missouri

Lee’s Summit is one of 17 suburbs in the Kansas City area, about 16 miles southeast of Kansas City. It’s the 6th biggest city in Missouri and has great schools, parks, and community stuff that attracts families and professionals.

Population Growth and Projected Expansion

Lee’s Summit has grown a lot over the years, from 8,267 people in 1960 to around 104,638 now. By 2040, the Kansas City/Lee’s Summit population is expected to grow by over 30%, adding up to 38,000 new residents.

Employment Opportunities and Major Employers

Jobs in the Kansas City area have been going up too, with a 2.3% increase in the fourth quarter of 2023 compared to the same time a year ago. That’s about 25,000 new jobs. Big employers around here include HCA Midwest Health System, University of Kansas Hospital, Saint Luke’s Health System, Ford Motor Company, T-Mobile, and Cerner, which was bought by Oracle.

Income and Household Earnings

Census data shows that the average household income in Lee’s Summit is about $89,140, which is 20% higher than the Kansas City area and 1.4 times higher than the state average.

Rent Growth and Vacancy Rates

In the past 12 months, rents in Lee’s Summit have gone up by about 5% to $1,288 per month, more than the area average of $1,172 per month. REIS thinks that rents will keep going up by about 3.9% per year through 2024 and 2025, reaching an average of $1,471 per unit per month.

As of July 2023, the vacancy rate in Lee’s Summit was about 6.2%, which is 2.9% higher than its long-term average and 1% higher than the Kansas City area average. But REIS predicts that the long-run vacancy rate will go down to about 5.7% by 2024 and 4.7% by 2025.

Is a 22.8% IRR Realistic for The Montage at Lee’s Summit?

A 22.8% return on investment might sound too good to be true, but when you look at all the info, The Montage at Lee’s Summit could actually hit that 20%+ IRR. To learn more about this Lee’s Summit development and its investment potential, click here.