29th Street Capital has expanded its suburban multifamily holdings in the Kansas City metro with the purchase of Chestnut Heights Townhomes, a 161-unit rental community in Olathe, Kansas. The townhome property is located in Johnson County and consists of two- and three-bedroom residences, positioning the asset within an established suburban residential area that already benefits from strong local demographics.
The community’s townhome units average approximately 1,300 square feet, offering larger floor plans than many conventional apartment properties. This differentiated format, featuring multi-bedroom layouts and more generous living space, is a central part of the investment thesis highlighted by the buyer. The acquisition adds scale to 29th Street Capital’s existing presence in the Kansas City region and supports the firm’s broader multifamily growth strategy in the metro.
Property operations at Chestnut Heights Townhomes will be handled by 29th Street Living, the property management platform affiliated with 29th Street Capital. By aligning ownership and management under related entities, the buyer is positioned to implement its business plan directly, including day-to-day operations, resident experience initiatives, and the execution of planned capital projects at the community.
29th Street Capital partnered with Basis Investment Group’s BIG Equity Value-Add Fund II to provide LP equity for the acquisition and a capital improvement program at Chestnut Heights. The involvement of a dedicated value-add equity fund underscores a business plan that includes upgrading and enhancing the existing property rather than ground-up development. The announced capital improvement program is expected to focus on targeted enhancements intended to support the long-term positioning of the community within its competitive set.
According to Matt Compton, Vice President of Acquisitions at 29th Street Capital, the firm views Chestnut Heights as an attractive addition to its Kansas City portfolio. He noted that the property’s townhome-style product, spacious unit layouts, and Johnson County location align with the firm’s strategy of acquiring high-quality assets in established suburban markets. The transaction reinforces 29th Street Capital’s commitment to growing its footprint in the Kansas City metro through selective acquisitions that fit a long-term, value-focused investment approach.
