Apartment purchase and improvement in Dallas, TX
- Number of Units 476
- Year Built 1985
- Structure Preferred Equity
- Projected Holding Period 1.5-2 years
- Projected Annual Dividend 8.0%
- Projected Annual Total Return 8.0%
The Water Ridge property is located just south of the intersection of I-183 and Highway 161, an attractive site for potential residents due to its proximity to several major employment centers. The largest nearby employer is the DFW airport, with other major employers including American Airlines and Hospital Corp of America. Known for its telecom, financial services, airlines, healthcare, and energy industries, Dallas has a diverse mix of large employers. While the property has received significant upgrades, there remains ample opportunity to drive value. Approximately 37 of the 476 units remain to be renovated with new plumbing fixtures, lighting fixtures, hardware, cabinet resurfacing, countertops, faux wood flooring, paint, window treatments, and black appliances. Of the 439 renovated units, 337 are designated as ultrapremium units and have stainless steel appliances, designer backsplashes, and espresso cabinetry. Renovated units are experiencing significant premiums as compared to nonrenovated units and with only 84% of the units occupied, there remains significant upside to bring the occupancy rate up to market and drive rents higher in the process.