Lake Highlands: An Award-Winning Transformation in Dallas, TX
This Dallas property is in a family-oriented submarket with high median income and a great school district. It’s close to recreational trails as well as the Lake Highlands Town Center, a mall offering unique shopping and dining options.
There was a significant opportunity to improve operations, as an absentee owner’s inattention and lax screenings resulted in community challenges including delinquency and crime. After a failed initial sale, the owner accepted an offer $1.2 million below highest bidder due to certainty of execution.
The transformational community turnaround won an “apartment of the year” award.
Acq./Exit: Sep 2015/Mar 2018
Total units: 1,060
Invested equity: $15,500,000
Total Cap./Unit: $56,060,000/$52,900
Exit Price/Unit: $86,975,000/$82,000
Rent CAGR/NOI CAGR: 12.1%/44.7%
Gross IRR/MOIC: 47.1%/3.2x
- Invested $12,500 per unit to upgrade interiors and enhance amenities including sports courts, pool and a gym; resolved deferred maintenance; and implemented after-school and educational social programs for children.
- Won 2017 “Apartment of the Year” within the Lake Highlands improvement district after community turnaround within first nine months of ownership.
- Sold asset to a $500 million+ value-add manager after a 2.4 year hold; achieved a disposition price $11 million higher than acquisition underwriting, which assumed a five-year hold period.