Holmesbrook Townhomes 9730-9768 Locust St 28 Unit Apartment Building $4,250,000 ($151,786/Unit) 6.50% Cap Rate Kansas City, MO 64131

The Holmesbrook Townhomes is a 28-unit townhome style community located in the Willow Creek neighborhood of Kansas City, MO. The property has seen over $350,000 in capital improvements throughout the duration of ownership (2022-present) and has received renovations in 23 out of the 28 units. Vast majority of the water heaters and HVAC have been replaced within the last four years leaving only five units in classic condition. This leaves investors with a small value add play to renovate the remaining units and bring rent up to market across the board. The property does have a LURA in place, lasting until 2032, but only 10 of the units are affected by it. However, 4/10 are labeled as “Low Income” which 2026 rent cap is higher than current market rent. 6/10 units are labeled as “Very Low Income” which 2026 rent cap is lower than current market rent.
The LURA is administered by Phoenix Revitalization Corp under the FDIC Affordable Housing Disposition Program -- it is not LIHTC and has no involvement from MHDC or KHRC. Compliance consists of straightforward annual income verification coordinated directly between Phoenix and the property manager. It is a fraction of the administrative lift associated with traditional affordable housing programs, and Phoenix's staff actively assists owners through the process.