Acquired Aug. 2015 | sold sept. 2018
This two-family residential property is located in Wichita's premier urban neighborhood, College Hill. When it was acquired, both units were leasing for below market rates. Long-term tenants, dated interior design, and deferred maintenance kept rents depressed.
Yellowbrick Urban saw the value of the property, located in the heart of the high-demand neighborhood only a block from College Hill Park, and acquired it with the intention of a value-add, medium-term hold. Within a year of acquisition, the legacy tenants on each side got married and moved on, providing an opportunity to renovate and re-lease the units without displacement.
Strategic investments were made to upgrade the interiors and improve building systems. Rents were raised 45% over acquisition and the property generated an average annual cash-on-cash return of 13.6% upon stabilization.
The property was sold in September 2018, achieving a 17.6% IRR and 1.84x equity multiple.
217 & 219 South Fountain
Wichita, KS 67218