Investment Overview

Luna is a 300 unit, individually metered community located in Dallas, Texas along the frontage road for Highway 67, just south of the junction of 67 and Interstate 20. This dynamic location offers an easy commute to downtown Dallas, major retail, and countless area employers, including the many new industrial developments that have been taking place in the area over the past decade that continue today. This development has been a significant driver of employment for the area, and is expected to continue for the foreseeable future, along with a major redevelopment that is currently taking place at The Shops at Red Bird. This redevelopment is currently in progress, and will include significant new office, retail, hospitality, and common areas for community events, which will be an additional economic driver for this submarket for years to come. The subject property was built in 1985 and consists of twelve, two- and three-story buildings which are comprised of brick veneer and wood siding exteriors, with pitched composition roofs on concrete slab foundations. The property features individual HVAC’s and washer/dryer connections in every unit. The long-term owner has maintained the property exceptionally well, with $2.5 million in major capex over the past few years including all new windows, significant interior upgrades and exterior improvements. Residents enjoy the large sparkling swimming pool, fitness center, business center, and a playground. Unit interiors include private patio/ balconies with storage, walk-in closets and pantries. Luna offers a new owner a great opportunity to acquire a large, well maintained, and stable property in one of the nation’s best rental markets at a wonderful basis and enjoy attractive yields from day-one of ownership. There is also significant upside by increasing the currently below-market rents closer to area comps (see case studies on pages 12-15) and reducing water usage through a water conservation program detailed on page 43. Also, a new owner can boost NOI by renting washer/dryer equipment to residents who don’t have their own, which has been successful at other properties in the area. By implementing such a strategy, NOI could see a 25 percent increase within a short time frame with minimal capital investment, making this a unique prospect in a market where most value-add opportunities involve major capital improvements to realize operational upside.