Passive Investment Opportunity
Cottonwood at Park Central
This is the third look-alike property we have in the No.1 job/population growth market, Dallas, with a proven value-add track record, established management team, and outperforming returns.
Investment Overview
Note: This 506(c) syndication is open to ACCREDITED investors only.
15%
Targeted IRR
10-12%
Projected Annual
Cash-on-Cash
5-10 Years
Holding Period
8%
Preferred Return
Invest In This Deal
If you’ve decided you want to invest in this deal, fill out the form below to be added to our investor portal where you can place your soft-commitment and save your spot in this investment. The minimum investment for this opportunity is $100,000 and is open to accredited investors only.
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Gain access to the info you need to invest, including a recording of our live investor webinar.
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Note: This 506(c) syndication is open to ACCREDITED investors only.
Opportunity Summary
Pandemic Resilience
Landlord Friendly State:
- Texas is very pro-landlord
- Government is providing significant assistance programs
- In Dallas, evictions are still possible when tenant doesn’t follow CDC rules that requires them to provide evidence they are seeking a job, to establish a rent payment plan, etc.
Resilient Renter Base
- A & B Class residents with higher education and income are less impacted. We are focusing on ‘grey collar’ residents, who typically have fewer collection issues.
Timeline
0-18 Months
Complete exterior upgrades – painting, landscaping, concrete work
As units turn, roll out interior operational upgrades – faucets, LVP, bathroom reno
Implement lead-capture system with 24/7 live-assist and 15-minute response time
Continue pushing rents on renewals to catch up to market rents
18-36 Months
Continue stable operations
Begin testing higher upgraded units to see what the market will bear
We anticipate doing a supplemental loan at end of year 3 (75% LTV @ 3.8% fixed) to be able to return 50% of capital back to investors
Continue cash flowing
Property Details
The Property
Year Built: 1983 + 1995 (Three Story)
Buildings: 17 Total | 15 Residential
Units: 270
Property Amenities
Pet Park
Gated Entrance
Playground Area
24×7 Laundry Rooms
Outdoor BBQ Station
Expansive Fitness Center
Resort-Style Swimming Pool
Clubhouse & Business Center
Dallas, TX
Dallas is one of the most recession-resistant multifamily investment markets in the nation.
Its high concentration of financial and professional service firms generate an exceptionally affluent tenant base, while its diverse economy and rapidly growing population continue to drive demand and stimulate rent growth.
The metroplex consistently maintains a remarkably low unemployment rate coupled with nation-leading employment growth, making Dallas and Fort Worth two of the most desirable places to live and invest in the country.
Business Plan
Existing
Planned
On average, the current rent is $50-$75 below market for units with similar interiors
After renovations, the rents can grow an additional $100-$150 to meet market rates for renovated units
Cottonwood has been owner-managed during its current ownership tenure. They have done a good job at upgrading the complex but have shorter-term capital and are looking to redeploy in newer projects.
Brought into REM’s Property Management along with our other portfolio of properties which include Millennium Dallas and North Creek (within 3miles).
The interiors have been moderately upgraded over the past 5 years. The exterior/curb appeal has been well maintained and only needs minor tweaking to upgrade. Same with signage and name.
The current “renovated” units will be our “classic” units. The Richardson and Lake Highlands markets continue to provide a high-level resident demographic driving a strong demand for A-Class product.
Capital Improvements
Existing Units
71 units require full renovation to achieve A-Class level. These have outdated interiors with older classic looking cabinets, flooring, appliances, tub surrounds, etc.
199 units require light renovation to achieve A-Class level. These have recently been renovated with LVP Flooring , Cabinets, Lighting and Paint.
Upgraded Units
Complete Laminate Vinal Plank (LVP)
New appliances
Repainted interiors
Bathroom vanity mirror frame and lighting
Resurfaced tub surrounds
Resurface/replace kitchen cabinets
Light Fixturing
Existing Exterior
General curb appeal needs enhancement
Striping of parking lot
Concrete repairs
Landscaping
Upgraded Exterior
Landscaping/Curb Appeal
Add 1st floor yards
We Are Multifamily Investment Professionals
Experienced
With a combined 100+ years of experience and $300MM in closed multifamily transactions, we have the subject matter expertise, key relationships, and proven track record to execute profitable deals.
Conservative
We are opportunistic investors focused on creating long term value. We stress test our deals and use leverage carefully to create sustainable cash flow and limit our risk.
Diligent
Closing a deal, while challenging, is the easy part. Executing on the business plan is the hard part. It takes perseverance and persistence to achieve what we set out in our underwriting.
Get Access To The Full Investor Kit
Included in our investor kit is the recording of our live investor webinar where we go over ever detail of the property.
