Investment Overview

Phoenix Commons is a 418 unit, individually metered community that is conveniently located and enjoys great visibility at the intersection of Interstate 20 and Granbury Road in Fort Worth, Texas. This solid, class B location boasts great proximity to area retailers, employers, and schools. Texas Christian University, Hulen Mall, the high end Clearfork and Edwards Ranch developments and the new Chisholm Trail Parkway are all within just a few moments’ commute from the property. Residents enjoy immediate access to Interstate 20, with no competing multifamily communities for roughly a two-mile radius, which is a rarity for a property located near so many economic drivers. The subject property consists of four distinct phases totaling 66 buildings which are all run as one community out of one central office building (built in 2005) in the middle of the property. The four phases were constructed between 1967 and 1971 and have individual HVAC units, electric meters, and individual hot water heaters. All the roofs have been replaced over the past five years, and current ownership has maintained the properties well with nearly $5 million in capital improvements since 2022. The common area amenities currently offered are three large swimming pools, a barbecue area, clubhouses, and onsite laundry facilities. Numerous opportunities and ample space are available for new common area amenities to be added. The unit mix consists of 75 percent two-bedroom and three-bedroom floorplans with an overall average over 1,000 square feet, making this an attractive place for families to live. Phoenix Commons offers a new owner a rare opportunity to acquire a large value-add project at a phenomenal basis and create significant additional value and long-term cash flow. The current ownership has placed an HFC on the property, which allows for a near complete exemption from paying property taxes. By simply maintaining current lease trade out trends (page 46), and marking economic occupancy to submarket averages, new ownership can increase yields from 9% currently to over 15% within the first year alone. As a result, new ownership can enjoy going-in cash flow well above market with the opportunity to dramatically increase yields in the months and years ahead, which should also allow for substantial capital appreciation as well. The property is available free and clear of existing debt, so both bridge and CMBS financing options are available for review in the virtual deal room and the OM.