Investment Overview

Riverbend is a 160 unit, individually metered community conveniently located in DeSoto, Texas near the intersection of North Hampton and Wintergreen Roads. This solid location boasts a one-mile median household income of more than $62,000 and offers easy access to Interstates 20 and 35. This mature suburb of Southern Dallas county is home to significant industrial development, which has driven strong employment and rent growth over the past 10 years and is poised to continue its strong performance in the years ahead, with the workforce projected to grow by 75 percent over the next decade. The subject property was built in 1970 but underwent a $21,000+ per unit renovation in 2017/2018, and consists of 20, two-story buildings, which are comprised of brick veneer and stucco exteriors with pitched composition roofs on pier and beam foundations. The renovation project in 2017 (see page 33 for details) involved the replacement of all roofs, most mechanicals, and full unit interior renovations including all new countertops and cabinetry. The property also has individual HVAC’s and offers a great mix of large floorplans averaging 950 square feet. Riverbend offers a new owner a great opportunity to acquire a stable, well-located property surrounded by strong employment growth at an attractive basis and enjoy a great cash-on-cash return from day-one of ownership of nearly 10 percent. Furthermore, there is significant upside on the table by improving property operations to reflect the submarket average for economic occupancy, and by bringing rents closer to area comps with similar floorplans (see case studies on pages 12 and 13 and rent survey in section 4). There is also an opportunity to dramatically reduce water usage through the repair of underground leaks. By making these improvements to the operation, a new owner can realistically increase yields into the high teens within just a couple of years. Attractive, positive leverage agency financing is also available at 75 percent LTV.