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Founders Grove Capital

Estates at Las Colinas Update History

formerly known as Marabella

September 2020

We achieved a near perfect collections rate (98.4%) last month, but occupancy (86.6%) remains a challenge due to staffing issues and the impacts of COVID-19.

Distributions

You will receive a quarterly distribution by the end of the month. It will equal 1% of your initial investment. For example, if you invested $100,000, you would receive $1,000.

This is less than a full quarter’s worth of preferred return, which is 2% (8% preferred return divided by 4 quarters equals 2%). Therefore, the difference between the preferred return and what is distributed will accrue and be paid out at sale. The reasoning behind this lowered distribution is outlined in the “Operations” section below.

The next distribution is schedule for the end of January. It will cover October, November, and December.

Financials

The Q3 financials (rent roll and trailing 12-month profit and loss statement) are now available on the Investor Portal. Login to your account to view by clicking here.

Operations

Collections remained nearly perfect again last month. We collected rent on 98.4% of the occupied units. However, occupancy remains a challenge.

Current occupancy is 86.6% (compared to 88.2% last month) and preleased occupancy is 89.8%.  The Las Colinas submarket of Dallas has continued to be negatively impacted by COVID-19 and the resulting unemployment. We are battling against notice-to-vacates caused by job losses, home purchases, and moves to other more rural areas outside of DFW.

To improve operations, we’ve brought on a new manager, Betsy, who comes highly recommended. She is evaluating the staff and has studied the market comps to provide us with new guidance on how to improve occupancy.

Additionally, Frank remains in Dallas and is spending a lot of time at Estates at Las Colinas to focus on improving the operations.

Renovations

All new signage has been installed (click here for pictures of the monument sign, directional signage, and leasing center signage)

Interior renovations remain on pause and will continue to offer a reduced asking rent on vacant units until occupancy has stabilized.

Once we’ve achieved stabilized, we will perform partial renovations rather than full renovations. We determined we can achieve a higher ROI with a lower spend per unit.

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting to follow the social distancing guidelines. In October, these events will include:

Halloween Patio Decorating Content
Breakfast on the Go

August 2020

Collections (98.8%) are very strong at Estates at Las Colinas, however, occupancy (88.2%) continues to be a challenge.

Timing for Monthly Recap Email Update

Moving forward, the monthly updates will be sent out by the last Friday of the month. This will allow us to more closely align with internal operations while providing you with the information you need to stay updated on the property. 

Expect to receive the September Recap email by Friday October 30th.

Distributions

We plan on continuing to do quarterly distributions for this property to remain conservative. The next distribution will be going out by the end of October. We will let you know the amount of the next quarterly distribution in next month’s update.

Operations

The occupancy rate remained sub-90s. Current occupancy is 88.2% and preleased occupancy is 86.5%. The challenge stems from notice-to-vacates (NTV) from residents who have lost jobs, purchasing homes, or moving into rural areas. Additionally, many prospective residents are unqualified.

We are providing the NTV residents with wine, crackers, and cheese to cancel the NTVs and increase occupancy (Click here for a picture) and providing welcome gift packages to new residents who sign a lease (Click here for a picture).

Collections remain strong at 98.8%. However, earlier this month, the CDC issued an eviction moratorium effective from September 4th to December 31stClick here for article with more details on the moratorium.


Due to the high collections rate, we are uncertain if the renewed moratorium will affect operations. Nonetheless, after the CDC’s announcement, we immediately began working with our property management company to establish strategies to work within the guidelines of the moratorium while mitigating operational impacts.

In the meantime, Frank will remain in DFW and continue to spend time with Estates at Las Colinas management to reverse the occupancy rate trend.

Renovations

We will continue the pause on interior renovations and to offer lower rents until occupancy has stabilized.

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting to follow the social distancing guidelines. In September, these events will include:

  • Movie Night
  • Birthday Party for September Birthdays
  • Renewal Party

July 2020

Occupancy has continued to be a challenge but is beginning to trend in the positive direction. The collections, however, continue to remain strong at Estates at Las Colinas.

Distributions

Last month, you received a quarterly distribution equal to 1% of your initial investment. Since this was less than a full quarter’s worth of preferred return, which is 2%, the difference will accrue and be paid out at a capital event or when the property cash flow allows for it. We will let you know by October, which is the next scheduled quarterly distribution, if we will transition back to monthly distributions.

Operations

Occupancy continues to be a challenge at Estates at Las Colinas. Current occupancy has remained at 88.9%. However, preleased occupancy has increased to 90.4%. This is due to the surrounding market being hit particularly hard by the effects of the coronavirus pandemic. Therefore, a lot of the prospective residents applying for leases are not qualified. We are, however, making sure all vacant units are turned and ready to be leased so that the applicants who are qualified can move in as quickly as possible.

New marketing strategies being implemented to increase occupancy include:

Upgrading to the highest level on Apartments.com (Diamond Plus)
Offering specials and bonus incentives on our stale units (i.e., vacant for 30 days or more)
Increasing presence on Facebook and Google
Placing a banner on the clubhouse to increase walk-ins
Temporarily reducing prospects’ monthly fees (i.e., valet trash, recycling, cable, and other additional fees)


Collections at Estates at Las Colinas continue to be strong. Therefore, our focus will continue to be on increasing occupancy and generating qualified leads.

Renovations

Until occupancy has stabilized, interior renovations will remain on pause and we will continue to temporarily offer reduced rental rates on vacant units.

Resident Activities

We are continuing to be creative with the types of resident appreciation events we are hosting to follow the social distancing guidelines. In August, these events will include:
Breakfast On The Go
Renewal Party
Popsicle Pop In

June 2020

The operations at Estate at Las Colinas continue to be impacted by the coronavirus and the resulting unemployment. Collections remain strong but occupancy continues to be our main challenge. Ashcroft Capital co-founder Frank Roessler has temporarily relocated to Dallas to help our management team improve the operations.

As always, our focus remains the same – the preservation of your capital investment.

Here are updates on what we’ve done at Estates at Las Colinas over the previous 30 days to preserve your capital investment:

Distributions

As a reminder, we decided to temporarily transition from monthly distributions to quarterly distributions at Estates at Las Colinas. We also decided to temporarily suspend collecting our asset management fees.

We will be sending out a distribution by the end of the month. It will equal 1% of your investment. For example, if you invested $100,000, you will receive $1,000.

This is less than a full quarter’s worth of preferred return, which is 2% (8% preferred return divided by 4 quarters equals 2%). Therefore, the difference between what is owed and what is distributed will accrue and be paid out at a capital event. The reasoning behind this lowered distribution is outlined in the “Operations” section below.

The next distribution is scheduled for the end of October. It will cover July, August, and September. We will let you know by then if we will continue quarterly distributions or transition back to monthly distributions.

Financials

As a reminder, we now upload the quarterly financials to the investor portal. If you already set up your account, you can immediately download the Q2 2020 financials (rent roll and 12-month profit and loss state) by logging into the portal by clicking here.

Operations

Maintaining occupancy continues to be the number one challenge at Estates at Las Colinas. The current occupancy is 88.9% and preleased occupancy is 88.2%. The Las Colinas area has been hit particularly hard by the effects of the coronavirus pandemic and resulting unemployment.

Collections have not been an issue because residents are still paying rent. We’ve maintained a 90%+ collections rates since April. However, we are not seeing the qualified leasing traffic at the rate we’d expect for this time of the year.

The biggest action we’ve taken to improve the operations at Estate at Las Colinas is temporarily relocating our co-Founder, Frank, to Dallas. He has and will continue to spend a significant amount of time at Estates at Las Colinas. Frank and the team have been putting their heads together to figure out how to get to 95% occupancy as soon as possible. Here is a list of actions taken so far:

Upgraded to the highest level on Apartments.com (Diamond Plus)
Offering specials and bonus incentives on our stale units
Increased presence on Facebook and Google
Placed a banner on our clubhouse to increase walk-ins
Reduced prospects’ monthly fees to break even with expenses (i.e., valet trash, recycling, cable, and other additional fees)
Stayed open on the Fourth of July
Improved relationships with locators
Currently, we are focusing on creating relationships with local animal rescues, moving companies, and other small businesses to increase standing in community.

Also, we are looking into ways to help our staff turn units quicker, which will decrease vacancy. Our Director of Construction, Doug Palmer, is training staff to turn units quicker.

Renovations

We have continued our pause on interior renovations. We’ve also lowered our market rents temporarily until Estate at Las Colinas stabilizes. Frank has toured all competitor communities to help set our new pricing based on his thoughts on where we stand in the market.

Resident Activities

We are continuing to be creative with the types of resident appreciation events we are hosting to follow the social distancing guidelines. In July, these events will include:
Hero of the Month
Popsicle Pop In
Kona Ice Truck


May 2020

 

The operations at Estates at Las Colinas have been affected by the effects of the coronavirus and the resulting unemployment. Our current residents are paying rent, but as you will see in more detail below, we are not seeing the qualified traffic at the rate we’d expect for this time of the year.

As always, our focus remains the same – the preservation of your capital investment.

Here are updates on what we’ve done at Estates at Las Colinas over the previous 30 days to preserve your capital investment.

 

Distributions

As a reminder, we decided to temporarily transition from monthly distributions to quarterly distributions at Estates at Las Colinas. We also decided to temporarily suspend collecting our asset management fee.

The next distribution is still scheduled for the end of July. It will cover April, May, and June. In July, we should have a better understanding of how the pandemic has affected Estates at Las Colinas and will decide if we can transition back to monthly distributions or if that needs to be extended.

 Friendly Reminder:  We still have some investors who have not logged into the investor portal, and some who still need to add or update their information. If you have not done so already, we would like to remind you to please log in to the investor portal and complete your profile information, as well as review and/or update your payment information. It is very important to complete the appropriate steps in order to continue to receive your distributions to your preferred location. Please click here for the instructions. If you have not received your invitation or it recently expired, and you need it re-sent, please contact InvestorRelations@ashcroftcapital.com (DO NOT create a new profile, as it will not connect you to your investments already in the system). If you have already logged in and would like to be taken directly to the portal click here.  

 

Operations

Maintaining occupancy is the number one challenge at Estates at Las Colinas. We have noticed that many of our prospective residents do not meet our strict qualifications because they have debts with other landlords and/or lost their jobs due to the pandemic. The current occupancy is 87.7% (compared to 90% last month) and preleased occupancy is also 87.7%. To help spur leasing we have allowed our staff to reduce rents by up to $200 on certain renovated floor plans. Several of our competitors in the immediate submarket have also reduced rents and suspended renovations.  For non-renovated units, we lowered the asking rent below market rates to help with occupancy as well during this time.

We are actively looking for ways to help our staff turn units quicker and have already implemented some strategies. For example, our director of construction, Doug Palmer who is based in Dallas, is training staff on how to more effectively turn units.

Collections from the in-place residents has been strong. Additionally, our expenses are performing well compared to our initial projections.

 

Renovations

We completed all major exterior capex projects prior to the coronavirus pandemic and interior renovations are still on pause until we re-stabilize.

We are, however, actively looking into partial renovations. We discovered we can achieve more digestible rental premiums and a higher return on investment in the current market by reducing our renovation scope. Doug has already priced out a partial renovation, and once we begin renovations again we will offer partially renovated units to prospects.

 

Resident Activities

We are continuing to be creative with the types of resident appreciation events we are hosting to follow the social distancing guidelines. In June, these events will include:

  • Taco Truck
  • Snow-Cone Truck
  • Scavenger Hunt

 


 

April 2020

 

We have continued to focus on the preservation of your capital investment during the coronavirus pandemic.

Here are some updates on Estates at Las Colinas over the previous 30 days:

 

Distributions

We have temporarily transitioned from monthly distributions to quarterly distributions. This proactive measure will give us time to assess how the pandemic has affected Estates at Las Colinas, allow us to remain conservative and help us better preserve your capital investment.

Therefore, the next distribution is scheduled for the end of July. It will cover April, May, and June. In July, we should have a better understanding of how the pandemic has affected Estates at Las Colinas and will decide if we can transition back to monthly distributions.

 

Friendly Reminder:  We would like to remind all investors who have not yet logged in to the Investor Portal and completed their profile information, as well as reviewed and/or updated their payment information to do so. It is important to complete the appropriate steps in order to continue to receive your distributions to your preferred location. Please click here for the instructions. If you have not received your invitation or it recently expired, and you need it re-sent, please contact InvestorRelations@ashcroftcapital.com. If you have already logged in and would like to be taken directly to the portal Click here.  

 

Operations

Due to social distancing and stay-at-home orders, we are continuing to offer virtual tours and YouTube video unit walkthroughs for prospective residents.

 

Resident Activities

We are also continuing to be creative with the types of events we are hosting for the residents to promote engagement of residents, as well as social distancing. In May, these events include:

  • Taco Truck
  • Snow-Cone Truck
  • Household Scavenger Hunt

 

March 2020

 

Distributions

One major area of focus has been rent collections. We have made arrangements with some of the residents who are facinga coronavirus-related hardship at Estates at Las Colinas to pay their rent by the 25th. Therefore, I will send another email on the 27th with an update on the status of collections and if we feel we need to defer distributions based on how the resident base is impacted. However, our breakeven occupancy is 78.6%. This means we will be able to cover all expenses, and conserve your investment, at an occupancy rate that is 78.6% or higher.

 

Operations

While our leasing traffic has slowed down, we are offering virtual tours and creating YouTube videos of unit walkthroughs. Click here for a sample virtual tour at Estates at Las Colinas.

We continue to move forward with numerous construction projects, making sure that job safety is the number one priority. In fact, it is a great time to move forward with these projects with minimal disruption to our residents. We renovated 18 new units in March.

We are instituting a “Hero of the Month” and “Hero of the Week” program that honors our essential workers whose dedication and hard work are nothing short of inspiring.

We applied and were approved for the Paycheck Protection Program, which should allow us to significantly reduce our payroll expense.

We are actively monitoring and complying with Texas guidance on eviction proceedings as well as complying with new standards from our lenders.

Everyone at Estates at Las Colinas is adapting quickly to this new reality.

 

Residents

Our operational goals are always to meet and exceed residents’ standards and their safety and happiness is our mission. During these challenging times, we’ve constantly provided local and national resources for our most impacted residents. These include local housing organizations, churches, and food banks.

Since our gym and common areas are closed, we are hosting resident events that promote social distancing. In April, these include:

  • Delivered sweets and treats to employees
  • Delivering April birthday cards
  • Spread the Love with sidewalk chalk available to our residents

 

Financials

Since we have now successfully rolled out the Investor Portal, the quarterly financials will be available for download off of the Investor Portal. We will upload Q1 2020 financials (a current rent roll and trailing 12-month profit and loss statement) by the end of April. You will receive an email once they are available.

 

If you have already logged in and would like to be taken directly to the portal Click here.  If you have not received your invitation or it recently expired, and you need it re-sent, please contact chat@ashcroftcapital.com  In order to expedite any future or previous distribution requests changes, you must log in to the portal and add your complete profile information in order to make any changes to your payment information. Without doing so, the system will not allow it. If you need help navigating through the portal you may contact IMS support at 855-866-0889. Please click here to view the investor portal FAQ document.

 

I am  proud to be your investment partner and look forward to working through today’s challenges together. I hope that you and your family are well.

 


 

February 2020

 

As a reminder, we launched the new Ashcroft Capital Investor Portal. You should have received an invitation already. If you didn’t, please check your spam folder. If it isn’t in your spam folder, please let us know by emailing chat@ashcroftcapital.com. 

If you haven’t done so already, please login and confirm that your personal information is accurate. If not, please make sure that you update it by adding all your current information as well as updating payment information. If we need to make any changes to any of your deal information only, please let us know by emailing chat@ashcroftcapital.com. You can read and review the FAQ page by clicking here.

Starting on May 1st, you will be able to download a statement showing all the distributions that you’ve received to date.

Also, we will upload your 2019 K-1 tax document to the new investor portal by March 31st. You will be notified via email once it is available. We do not have a specific date other than to say that it will be available no later than March 31st. 

 

We are continuing to achieve our projected rents on all newly-renovated unit leases.

The following resident appreciation and retention events are being/were hosted in March:

    • Spa Day – March 1st
    • Personal Trainer & Health Advice – March 16th
    • Raffle for Lucky Charms – March 25th

In related news, Dallas-Fort Worth ranked 2nd out of all major US cities in the forecasted net migration in 2020 by Marcus and Millichap. Dallas-Fort Worth is expected to have a net migration of 69,600 people in 2020, which is 0.9% of its population. This is great news and reinforces our thoughts on the continued demand for multifamily housing in the market. Click here to learn more.

 


 

January 2020

Things are continuing to go well as we implement our value-add business plan at Estates at Las Colinas.

I am excited to announce that my partner, Ashcroft Capital, will be launching a new Investor Portal, which is designed to improve communication and engagement with you, our partner. When the portal is officially launched, I will send you an email with instructions on how to login, as well as an FAQ guide about how to use the portal.

Also, we will upload your 2019 K-1 tax document to the new investor portal by March 31st. You will be notified via email once it is available. We do not have a specific date other than to say that it will be available no later than March 31st. The IRS revised the 2019 K-1 to require additional information for all partners investing with a disregarded entity (i.e., a single-member LLC). If you are investing with us with a single-member LLC, please fill out this AdobeSign document by clicking here.

 

We are continuing to achieve our projected rents on all newly-renovated unit leases.

The following resident appreciation and retention events are being hosted in February:

    • Breakfast On The Go – February 14th
    • Nacho Bar – February 27th
    • Hershey Kiss Raffle – February 29th

In related news, according to the most recent Bureau of Labor Statistics economic data, Texas added more jobs in 2019 than any other state. Additionally, the Dallas-Fort Worth-Arlington MSA was the #2 ranked market in the number of new jobs added in 2019. In fact, the number of new jobs added in 2019 outpaced the total number of jobs added in 40 out of 50 states. Click here to learn more.

 


 

December 2019

 

You can download the quarterly financials (rent roll and profit and loss statement) by clicking here.

 

We are continuing to achieve our projected rents on all newly-renovated unit leases

The following resident appreciation and retention events are being hosted in January:

    • Resident Birthday Party – January 16th
    • Renewal Party – January 25th
    • Resident Happy Hour – January 30th

In related news, an article discussing the strong growth in professional services in Dallas Fort Worth’s office market stated that Las Colinas-Irving currently has 2 million square feet of Class A office product under construction. Additionally, Las Colinas has added over 54,000 employees since 2009, which is “equivalent to a full Boeing 737 landing in Las Colinas every day for a year, unloading its passengers and everyone staying.” Click here to read more.

Lastly, click here for a news article that reinforces our thoughts on the continued strength of multifamily housing. According to data compiled by Deutsche Bank, the median age of US homebuyers is now 47. For comparison, the median age of US homebuyers in 1981 was 31. Much of this rise can be attributed to the extreme reduction in young, first-time homebuyers in the housing market. This means more and more people will be renting rather than buying.

 


 

November 2019

 

We are continuing to achieve our projected rents on all newly-renovated unit leases

All major capital expenditure projects are completed. Click here for HD pictures of the new signage

The following resident appreciation and retention events are being hosted in December:

    • Breakfast On The Go – December 6th
    • Community Awareness Event – December 12th
    • Resident Wrap Party – December 20th 

In related news, a corporate relocation, site-selection expert explained why Fortune 500 companies are moving their headquarters from California, New York, New Jersey, and Connecticut to states like Florida and Texas. One of the main reasons is that the pro-business policies, low taxes, and fiscal restraint will enable Florida and Texas to “best weather the storm of an economic downturn.” Click here to read more.

 


 

October 2019

 

We are continuing to achieve our projected rents on all newly-renovated unit leases

Capital expenditure updates:

    • Landscaping is nearing completion and all other major capex projects are completed.

The following resident appreciation and retention events are being hosted in November:

    • Management Meet & Greet – November 13th
    • Renewal Party – November 19th
    • Police Officer Community Awareness – November 29th 

In related news, Microsoft plans to hire as many as 575 employees to expand its technology center in Irving, TX, which is the submarket in which Estates at Las Colinas is located. Microsoft also plan on investing $31 million into this expansion. This reinforces our thoughts on the strength of the Irving submarket. Click here to learn more.

 


 

September 2019

 

Please click here to download the quarterly financials statements (current rent roll and profit and loss statement).

We are continuing to achieve our projected rents on all newly-renovated unit leases

Leasing:

    • We have hired an experienced and acclaimed property manager and her team to drive occupancy over 90%.
    • We have added sign spinners and direct mailers to our marketing outreach as well

Capital expenditure updates:

    • We are putting the final touches on the landscaping to finish the exterior capex projects.

The following resident appreciation and retention events are being hosted in October:

    • Fall Kick-Off Party – 10/17
    • Mini-Pumpkin Painting – 10/24
    • Trick-or-Treat – 10/31

 


 

August 2019

 

We are continuing to achieve our projected rents on all new renovated unit leases

We are continuing our increased marketing outreach and are offering a rent special to increase occupancy. We are projected to exceed 90% occupancy by the end of the month.

Capital expenditure updates:

The following resident appreciation and retention events are being/were hosted in September:

    • Community Awareness Event
    • NFL Kickoff Party
    • New Team Meet-and-Greet Party

In related news, the ride-sharing company Uber plans on opening a new regional hub in downtown Dallas. This is expected to bring about 3,000 new jobs to the area and result in a $400 million annual payoff. Click here to learn more.

 


 

July 2019

 

To increase occupancy, we are increasing our outreach marketing and offering a rent special, plus we expect an increase in traffic due to the new amenities and clubhouse being nearly completed.

We are continuing to achieve our projected rents on all newly-renovated unit leases.

Capital expenditure updates:

    • Roof repairs are completed
    • The resident lounge is completed – click here for a video
    • The clubhouse renovations are in progress
    • New signage is in production
    • Landscaping upgrade is in progress
    • Concrete repairs are in progress

The following resident appreciation and retention events are being/were hosted in August:

    • Brunch – 8/10
    • Pool Party – 8/17
    • Happy Hour – 8/23

The four biggest Texas metro areas, including DFW, surpassed the total number of tech workforce in the traditional tech strongholds of Silicon Valley and New York City. Combined, the four metros have 367,460 tech workers compared to 353,760 in New York and 264,374 in Silicon Valley. According to CoStar analysts, the lower cost of living in Texas is responsible for this surge in the tech labor pool, which is great news for the DFW and Texas market as a whole. Click here to learn more.

 


 

June 2019


We are achieving our projected rents on all new renovated unit leases.

Capital Improvement Projects:

    • Clubhouse: Renovation is in progress and scheduled to be completed by the end of July.
    • Resident Lounge: Renovation is in progress and scheduled to be completed by the end of July.
    • Package Room: In progress.
    • Signage: In progress.

The following resident appreciation and retention events are being hosted in July:

    • Sundae Bar: 7/7
    • Breakfast-on-the-Go: 7/11
    • Pizza Party: 7/16
    • Pool Party: 7/27

In related news, the State of Texas topped WalletHub’s annual report on the best and worst states to start a business in 2019. The states were compared across 26 key indicators and were ranked based on business environment, access to resources, and business costs. This reinforces our thoughts on the continued strength of our submarkets within the state of Texas. Click here to learn more.

 


 

May 2019

As a reminder, we officially rebranded Marabella and the new name is Estates at Las Colinas. Here are some property-specific updates from the month of May:

We are achieving our projected rents on all newly-renovated unit leases.

Capital Improvement Projects:

    • Clubhouse: Demolition is underway and renovations are scheduled to be completed by the end of July.
    • Resident Lounge: Demolition is underway and renovations are scheduled to be completed by the end of July.
    • Pool Furniture: Scheduled for delivery the week of 6/17.
    • Landscaping: In progress.
    • Signage: In progress.

The following resident appreciation and retention events are being hosted in June:

    • Breakfast at the Gate: 6/11
    • Resident Meet & Greet + Model Open House: 6/19
    • Popsicles by the Pool: 6/28

In related news, the state of Texas added more jobs year-over-year than any other state (283,000 jobs, which is a 2.7% job growth). Also, Texas added 26,900 new jobs in April, marking the 108th consecutive month of job growth. Click here to learn more.

 


 

April 2019


We have officially rebranded the property and the new name is Estates at Las Colinas.

We have begun our interior and exterior renovation projects. Click here for over 50 HD pictures of Estates at Las Colinas

The following resident appreciation and retention events are being hosted in May:

    • Ice Cream Social: 5/18
    • Pizza and Wine: 5/24
    • Breakfast-at-the-Gate: 5/31

In related news, Allstate Insurance Co. plans to hire 1,300 new employees and invest over $11 million over the next 5 years in a major ramp-up of its Irving operations. Click here to learn more.

Additionally, in HFF’s monthly MSA employment report, Dallas-Fort Worth ranked 2nd in the nation in total new jobs and percent job growth, and was one of only two MSAs to add more than 100,000 jobs. Click here to learn more.

 


 

March 2019

We closed on Marabella at the beginning of March and have begun to implement our value-add business plan.

Numerous residents approached management during our takeover and expressed optimism and happiness for the management change

The following resident appreciation and retention events are being hosted in April:

    • Breakfast-on-the-Go: 4/12
    • Open House: 4/20
    • Yappy Hour: 4/27

In related news, the majority of North Texas office leasing was in Dallas’ far northern suburbs including Las Colinas. Click here to learn more.

 


 

December 2018

We are purchasing Marabella, a 415-unit apartment community located in Las Colinas, an upscale submarket that attracts affluent renters in the Dallas suburb of Irving, TX.

Value-add opportunities:

    • Las Colinas is a strong submarket that is home to eleven Fortune 500 companies, including six headquarters. These headquarters are all located within a six-mile radius of the property, including ExxonMobile and Kimberly-Clark
    • After we were awarded the deal, McKesson (#6 on the Fortune 500 list) announced that they will relocate their global headquarters to Las Colinas and will be located within a 10-minute drive of the property
    • We will be updating 100% of the unit interiors to meet the demands of the renters and are projecting rents that are $300 to $500 below the market leaders
    • The neighborhood in which Marabella is located has an average home value of $445,000, including homes valued at over $2 million within one mile. The average household income in the area is over $134,000
    • Las Colinas is highly desirable to young professionals given its proximity to major employers and entertainment destinations, including the Toyota Music Factory, a $173 million concert and cinema venue, and Water Street, a $100 million lakeside development with over 60,000 sqft of shopping and restaurants

Additional information:

    • Projected to exit in 5 years with the following returns:
      • 9.0% investor cash-on-cash return (excluding proceeds from sale)
      • 25.3% investor cash-on-cash return (including proceeds from sale)
      • 19.8% IRR
    • Min investment: $50,000
    • Closing date: 3/29/19
    • Funding date: 12/20/18 thru 2/28/19 (first-come, first-serve basis)

Click here to view the detailed Investment Package.