The Real Estate Physician is excited to announce the successful acquisition of Marabella Apartments!
Let’s take a brief look at what makes Marabella at Las Colinas Apartments an attractive investment opportunity.
The Deal
Marabella Apartments is a 415-unit asset built in 1989. It is an institutional grade quality asset with highlights including: large floor plans, 9 ft. ceilings, and in-unit washer and dryer.
The Opportunity
We anticipate 8% preferred return to investors annually, 19.8% IRR, and 2.27X equity multiple of capital.
The property is in excellent condition, but the quality does not meet the market demands the affluent residents that Las Colinas attracts. Previous owners renovated and leased 45% of the units but are not up to standard compared with surrounding competition. The sponsors for this investment opportunity plan to renovate the remaining 55% of units to exceed local standards with a projected rent increase of $106-178 a month which will continue to be $300-500 less than current market rents in the area.
The Market
Marabella Apartments is located in the upscale Las Colinas, TX, one Dallas’ strongest submarkets for office and residential properties. It is home to the largest office park in North Texas with over 11 Fortune 500 companies. The metropolitan area supports over 3.7 million workers, has added ~110,000 jobs over the past 12 months, and is one of only two national markets to add 100k or more jobs over this period.
The Sponsors
Ashcroft Capital, LLC has acquired 6,278 units with a current $570,000.000 portfolio value. The company seeks multifamily acquisitions appropriate for institutional and high net worth funds. Ashcroft prides itself on having a depth of experience in the industry and uses this experience to identify comparatively low-risk investments that have excellent revenue growth potential. To learn more, visit their website.
The Investors
Investors in this opportunity are looking at strong projections ahead, and we would like to thank them for continually partnering alongside us. We look forward to connecting with investors who are interested in similar opportunities in the future.