Apartment complexes like Harvest Development’s 125-unit Village property, located near 42nd and Grover St., are the beneficiary of a strong apartment market. With heavy deferred maintenance at the time of purchase in 2014, the Village property was purchased for $36,000 per unit with an average rent of $630 per month. Today, after an influx of capital and a strategic renovation, market rents for the two-bed, one-bath townhomes are over $1,000 per month. Included in the project is new plumbing, electrical, flooring, cabinets, counter tops, appliances, windows, roofs and landscaping.
Harvest Development purchased nearly one hundred single family houses shortly after the Great Recession at a significant discount. To gain efficiency in management, Harvest began purchasing small, neglected apartment buildings in the Midtown area, which allowed for more operating efficiency.
In the spring of 2017, Harvest’s portfolio surpassed the 500-unit threshold when it acquired a well-located, but poorly operated, 92-unit group of four buildings on Park Avenue. These buildings, built in the early 1970’s and 1980’s, are within walking distance to many of Midtown’s economic drivers such as Mutual of Omaha and the Nebraska Medical Center. IRI’s John Heine has represented Harvest, the quickly growing fund, in more than half of its total units.
This article appeared in our quarterly newsletter from September of 2017. The full newsletter is available at http://files.investorsomaha.com/download/IR_newsletter_Sept_2017.pdf