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

So, you’ve heard about this EquityMultiple listing for a new multifamily development in Lee’s Summit, Missouri, called The Montage at Lee’s Summit. They’re targeting a whopping 22.8% IRR, and you’re wondering if that’s even possible. Let’s break it down and see if it’s too good to be true.

Why Lee’s Summit?

First off, Lee’s Summit is a growing suburb in the Kansas City area, with a population that’s been on the rise for decades. It’s got great schools, parks, and community amenities, making it an attractive place for families to settle down. Plus, it’s got a strong job market, with major employers like HCA Midwest Health System, Ford Motor Company, and T-Mobile in the area.

What’s the Deal with The Montage at Lee’s Summit?

This 226-unit community is planned to have all sorts of cool features, like trails, water features, a dog park, and a resort-style pool. With a growing population and increasing demand for housing, it’s no wonder they’re expecting solid returns on this investment.

Can They Really Hit 22.8% IRR?

It might seem like a stretch, but when you look at the numbers, it’s not entirely out of the question. Lee’s Summit has seen steady rent growth, with asking rents up 5% in the last year. The vacancy rate is also expected to decrease over the next few years, which could help drive up returns.

So, while a 22.8% IRR might be on the optimistic side, it’s not entirely unrealistic. If you’re interested in learning more about this investment opportunity, click here to check it out.