Shawnee council approves deal that will see Prairie Lakes Apartments sold to Delaware company

Photo via Johnson County Appraiser's Office.
Photo via Johnson County Appraiser’s Office.

By Jerry LaMartina

The Shawnee City Council has approved the sale of Prairie Lakes Apartments to Shawnee Pavilions LLC and the transfer of city bond obligations from the seller to the buyer.

The council approved the sale and bond transfer at its Monday night meeting. The sale is scheduled to close Dec. 4, city spokeswoman Julie Breithaupt said in an email. The city has no access to the sale price or information about the buyer’s plans for the apartment complex.

The Johnson County Appraiser’s Office lists Prairie Lakes Apartments, at 6701 Lackman Road, as a 240-unit, 251,761-square-foot federally subsidized apartment complex built in 2003 on 22.2 acres, with a 2017 appraised value of $14.58 million. Apartmentguide.com lists rents at Prairie Lakes ranging from $718 to $979 for one-, two- and three-bedroom apartments and one- and two-bedroom townhomes.

Prairie Lakes Apartments LLC, a subsidiary of Highridge Costa Investors LLC of Gardena, Calif., owns the apartment complex. Paul Lee, dispositions manager for Highridge Costa, said in an email that the company was bound by a confidentiality clause that prohibited it from releasing information about the transaction until after it closes.

Shawnee Pavilions is based in Wilmington, Del., and is a subsidiary of Aspen Square Management Inc., based in West Springfield, Mass. Jeff Strole with Aspen Square Management declined to comment on the transaction.

In 2002, the city issued $16.7 million worth of multifamily housing revenue bonds, $8.85 million of which is outstanding, to Prairie Lakes Apartments LLC to finance the acquisition, construction, installation, furnishing and equipping of the multifamily residential rental housing project, according to a Nov. 27 memo from Joseph Serrano, bond counsel on the transaction and a partner with the law firm of Kutak Rock LLP to Interim City Manager Vicki Charlesworth.

In 2006, the city issued $3.6 million worth of subordinate multifamily housing revenue refunding bonds to refund part of the outstanding 2002 bonds. Prairie Lakes Apartments LLC will use proceeds of the sale to Shawnee Pavilions to redeem the 2006 bonds.

As part of the apartment complex’s sale, Shawnee Pavilions assumes liability for the outstanding bonds. No property tax abatement was associated with the bonds.