Blue Valley Court Townhomes
Operational and physical repositioning of a 165-unit multifamily asset.
The project, in brief.
Blue Valley Court Townhomes is a 165-unit Kansas City multifamily community undergoing a comprehensive operational, compliance, and physical repositioning strategy. The asset is supported by a HUD project-based rental assistance HAP contract covering 164 of 165 units, creating a differentiated value-add opportunity centered on stabilizing an under-managed property, completing targeted capital improvements, and unlocking occupancy and revenue growth.
The project reflects Momentum Investments’ ability to identify an operationally distressed asset with strong underlying demand, quickly address critical management and compliance deficiencies, execute renovations and repairs, and establish a clearer path toward stabilization and value creation.
Facts at a glance.
- Location
Kansas City, Missouri - Asset Type
Value-Add Multifamily / Affordable Housing Repositioning - Scale
165 townhome units - Program Structure
HUD PBRA HAP contract covering 164 of 165 units - Acquisition Basis
$6.83 million, or approximately $41,000 per unit before renovation investment - Debt Profile
Assumed agency debt at a 3.64% fixed rate through 2030 - Current Status
Active repositioning
An underserved metro opportunity.
At acquisition, Blue Valley Court was materially impaired by a combination of physical disrepair, poor operational controls, tenant file issues, billing inefficiencies, and significant deferred maintenance. The property had underlying demand, but was not functioning properly from either an operating or compliance standpoint.
Conditions at Acquisition
- Approximately 65 vacant units and occupancy below 60%.
- Of approximately 100 occupied units, only about 30 were receiving rent under the HAP contract.
- Approximately 20 occupied units did not have executed leases.
- More than 400 open maintenance requests contributed to failed HUD inspections and poor resident experience.
- Significant deferred capital needs existed across interiors, roofs, site work, security, and property systems.
- Water and sewer expense exceeded $50,000 per month due to unresolved leaks and utility inefficiencies.
Leading project strategy and development execution.
Momentum’s business plan centers on transforming the asset through a series of tightly connected execution workstreams: operational cleanup, compliance repair, renovation and unit delivery, expense reduction, and continued lease-up. Rather than relying on a single value-creation lever, the strategy seeks to improve both the property’s operating foundation and its income profile.
- Operational and Compliance Repair
Clearing maintenance backlogs, addressing tenant file and lease issues, rebuilding billing and HAP collection processes, and improving reporting and oversight. - Interior Renovation and Unit Delivery
Renovating vacant and distressed units to support occupancy growth, improved livability, and rent normalization. - Exterior, Systems, and Security Improvements
Advancing property-wide repairs and improvements across lighting, railings, windows, HVAC, water heaters, doors, roofs, site work, and security. - Utility Expense Reduction
Identifying and repairing property-wide leaks to materially reduce water and sewer expense.
Where value is created.
A key component of the repositioning strategy is the June 2026 HAP renewal, which is anticipated to implement RCS-supported rents of $1,200 for two-bedroom units and $1,400 for three-bedroom units. When combined with renovation-driven occupancy growth, the rent reset is expected to create a meaningful income inflection and further support stabilization of the asset.
Unit-type rent comparison
- 2BR - $871 at acquisition → $1,200 RCS-supported · monthly lift of +$329
- 3BR - $1,092 at acquisition → $1,400 RCS-supported · monthly lift of +$308
Aggregate income impact
- Annualized Rent Lift~$637,000
- RCS-Supported Gross Monthly Rent~$209,400 at full occupancy
- RCS-Supported Gross Annual Rent~$2.51M at full occupancy
Where the project stands today.
Since acquisition, Momentum has materially advanced both the operating turnaround and physical repositioning of Blue Valley Court. The combined progress and near-term business plan below are intended to show what has been completed to date, what remains in process, and how those workstreams support stabilization and value creation.
- Compliance / Operations
Progress to Date
400+ open maintenance requests cleared; third-party tenant file audit completed; lease and billing reconstruction advanced; oversight and reporting improved.
Near-Term Business Plan
Continue compliance clean-up, documentation control, and property-management reporting discipline. - Interior Renovations
Progress to Date
36 units fully renovated, with 10 additional units in progress.
Near-Term Business Plan
Complete the next phase of renovations to support additional occupancy growth and improved asset quality. - Exterior / Systems
Progress to Date
Site and building lighting, railings, window replacements, HVAC and water heater replacements, master key conversion, and solid steel rear door replacements completed or advanced.
Near-Term Business Plan
Advance remaining high-priority CapEx, including roofs, security, parking lot repairs, exterior improvements, and other stabilization work. - Utilities
Progress to Date
Water and sewer expense reduced from more than $50,000 per month to approximately $18,000 per month after property-wide leak identification and repair.
Near-Term Business Plan
Maintain improved utility controls and continue monitoring for further expense optimization opportunities. - Leasing
Progress to Date
116 occupied units plus 9 additional leased units moving toward delivery after final punch-list and cleaning.
Near-Term Business Plan
Deliver leased units, continue lease-up activity, and move occupancy toward stabilization. - Rent Reset / Income Growth
Progress to Date
June 2026 HAP renewal expected to implement RCS-supported rent levels of $1,200 for two-bedroom units and $1,400 for three-bedroom units.
Near-Term Business Plan
Capture the benefit of the rent reset while continuing renovation and lease-up efforts to enhance NOI.
Momentum's commercial strategy, in its most complete form.
Blue Valley Court demonstrates Momentum’s ability to identify and execute on operationally distressed multifamily opportunities where returns are driven by active repositioning rather than passive ownership. The project required simultaneous attention to compliance, resident experience, property condition, expense control, lease-up, and capital planning.
The investment also reflects a strategy that may be repeatable across other distressed or undercapitalized multifamily assets where disciplined acquisition underwriting, hands-on execution, and targeted capital deployment can materially improve property performance and value.
Participate alongside Momentum.
Momentum is currently seeking $1.75 million of preferred equity for Blue Valley Court Townhomes, with a minimum investment amount of $100,000. The preferred equity opportunity is structured with a 14.0 percent total return profile, consisting of 9.0 percent current cash pay and 5.0 percent PIK accrual, over a 24-month term. The capital is intended to fund remaining high-priority improvements and support the asset’s continued repositioning and stabilization plan.
- Investment Structure
Preferred equity - Capital Sought
$1.75 million - Return Profile
14.0% total return: 9.0% current pay + 5.0% PIK accrual - Term
24 months - Minimum Investment
$100,000
Released individually to qualified investors after completion of the gated access process.
A Kansas City–based real estate investment platform pursuing commercial development and value-add multifamily opportunities.