Hunt Midwest and Park Place Partners have sold The Fairways at City Center in Lenexa, Kansas to Griffis/Blessing, Inc. out of Colorado Springs, Colorado for $45.2 million, at a Kansas City Metro record price of $565,000 per unit. Hunt Midwest and Park Place Partners completed construction on the 80-twin villa, fully leased, build-for-rent community in early 2020.
Hunt Midwest and Park Place Partners developed The Fairways as the Kansas City Metro’s first luxury rental villa community located on a golf course. Situated next to Canyon Farms Golf Course and within walking distance to Lenexa City Center, The Fairways residents have premium views and access to a growing mix of retail and civic amenities. Consisting of 17.46 acres, the community features villas with 2,289 square feet of finished floor space across two levels, a first-floor master bedroom, and two additional bedrooms and living space in the basement. Each villa has a two-car attached garage, extensive storage, and a mix of basement types including normal, daylight, and walk-out.
“When great real estate is coupled with superior design and execution, you get a first in-class community that produces luxury living for residents, record returns for the partnership, and remaining upside for the new owners,” said Ora Reynolds, President & CEO of Hunt Midwest. “The Fairways truly exceeded all expectations. Where else in Kansas City can you find country club views and the quiet suburban lifestyle of living on a golf course, all within an easy walk to a dynamic and growing city center?”
“The Fairway Villas offered a unique option for the growing renter-by-choice segment, which was previously unavailable in the Kansas City market,” added Melanie Mann and Jeffrey Alpert, joint venture co-owners of Park Place Partners. “Our vision was for homes featuring the quality and privacy of a single-family residence, coupled with outstanding golf course views and walkability to the first class amenities of Lenexa City Center.”
The Fairway Villas was Hunt Midwest’s first build-for-rent villa community. The build-for-rent market has seen continued growth each year across the nation due to a shortage of affordable housing, which has in part been caused by underbuilding following the global financial crisis. The renters-by-choice segment has also seen an increase in renters of all ages who want a yard and a garage, driving greater demand in the build-for-rent market.
The build-for-rent concept fills the gap between single-family home ownership and a luxury apartment experience. A RentCafestudy estimates that 14,000 new build-for-rent homes will open in 2022, more than doubling the record set the prior year. About 61% of the 90,000 existing single-family rentals in the U.S. are located in suburban settings similar to The Fairway Villas. The Kansas City Metro ranked seventh for total number of build-for-rent homes in dedicated communities with 3,170 existing, just 80 shy of the Las Vegas Metro in 2021.
The U.S. Census Bureau reported a steady decline of homeownership in 2021 while rental occupancy grew. Higher new home prices, driven by increasing construction costs, have kept first-time home buyers as renters longer. The overall lack of rental availability has caused rates to increase in all rental sectors. As demand for single family, build-for-rent communities increased during recent years, The Fairway Villas sought to accommodate potential residents of all demographics, including millennials starting families, empty nesters downsizing, and individuals or couples working from home who needed more room for dedicated setups.