Investment Overview

Carmen is a 264-unit, individually metered community located in Fort Worth, Texas along Normandale Drive, which is situated at the junction of Interstate 30 and Loop 820 just 10 minutes west of downtown. This convenient location offers an easy commute to many area employers, including Lockheed Martin and the Joint Reserve Base, Amazon, Ridgmar Mall, and the huge new Walsh Ranch Development (see pages 16-17). Fort Worth is one of the nation’s fastest growing major cities, with well above-average growth in population, employment and rents projected for years to come. The subject property was built in 1985 and consists of 25 buildings which are comprised of brick veneer and Hardie plank siding, with pitched composition roofs (2024) on concrete slab foundations. The property is in good physical condition, with roofs, siding, and exterior paint all having been replaced over the past several years. All units include washer/dryer connections, smart door entry systems, patios or balconies, and large closets. Common area amenities include an inviting clubhouse, large sparkling swimming pool, dog park, controlled access gates, and existing space for on-site laundry facilities. Carmen presents a new owner with a rare opportunity to acquire an operationally underperforming but physically well-maintained and well-positioned multifamily asset in D/FW at a generationally attractive basis due to the current underperformance of the operation. With the acquisition and fresh capital stack, a new owner can make strategic physical improvements without undertaking a “heavy lift” with physical renovations and focus on installing professional management and improving the operation to the submarket standard. Utility cost savings are also possible to further increase NOI. There are currently 20 down units that need to be brought online, but outside of that project, there are no major physical deficiencies to correct. By stabilizing the operation, new ownership can enjoy great cash flow and capital appreciation on this investment. Carmen can also be acquired along with its sister property located across the street, Celine, for a potential total of 520 units and outstanding economies of scale. Attractive new bridge financing options are available for this acquisition as well.