TX Apartments

Property Summary

Type: Multifamily
Size: 416 units
Location: Texas

Acquisition Summary

Source: Off-market
Investment: $9.0 million
Ownership: LP equity interest

Transaction Overview

Equity Resource Fund 2020 partnered with an existing sponsor to acquire, renovate, and operate an off-market multifamily property with a total of 416 units in the Dallas-Fort Worth metroplex. The asset is located in a desirable location as it is situated near an extensive network of highways and is in close proximity to Dallas-Fort Worth International airport and Dallas Love Field airport.   The surrounding area has seen a significant increase in blue collar jobs due to the continued growth in the logistics and industrial industry built around key transportation hubs.

This acquisition represents the fourth deal that ERI has partnered on with the Sponsor in the DFW area.   The business plan for this opportunity consists of both an operational arbitrage and light value add improvement strategy.  The asset was historically managed by the Seller’s private management company who implemented a hands-off approach to management.  The current owner failed to charge in-place tenants for standard other income charges including pet fees, pet rent, covered parking, and application fees.  Upon acquisition, the Sponsor will immediately standardize other income charges on new leases which provides.   The Sponsor is an active participant in the market and based on their success in executing value-add business plans in the area, believes that an opportunity exists to implement a light interior renovation plan, in addition to an upgrade to the common area amenity package in order to achieve proforma renovated rents.  Once the renovation is complete, the property will provide a desirable mix of units in a market where affordable, Class B apartments, are in high demand.