Villas de Serenada: Rent, Occupancy Soar Near DFW Airport
Villas de Serenada’s proximity to DFW International Airport, highly concentrated institutional ownership, high median income and strong school district set up this property for considerable growth potential.
It was acquired from an institutional value-add investment manager struggling with underperformance and loss of financial incentives post-recession.
Comunidad Partners upgraded homes as well as outdoor amenities such as sports courts, inviting pools and a gym, embracing the opportunity to improve operations and lift rents and occupancy.
Acq./Exit: Feb 2015/May 2018
Total units: 208
Invested equity: $2,900,000
Total Cap./Unit: $13,300,000/$63,900
Exit Price/Unit: $20,900,000/$100,500
Rent CAGR/NOI CAGR: 9.8%/16.9
Gross IRR/MOIC: 50.7%/3.5x
- Invested about $12,500 per unit to upgrade interiors and enhance property amenities, driving rents and occupancy to market levels.
- Implemented social impact programs including Feeding America lunches for kids, after-school programs, tax refund assistance and more.
- Sold asset to a $250 million+ value-add investment manager after a 3.3-year hold; achieved a disposition price $6 million higher than original underwriting, which assumed a 5-year hold period.