The 32 unit Shepherd Lane Apartments is a strong investment with some value-add potential in a growing submarket of Dallas. This property is currently operating at an NOI of $166,288 and is 90.6% occupied. Unit sizes are larger than average for the area, with 2 bedroom units featuring washer/dryer connections, private patios, and wood-burning fireplaces. Around $300,000 has been spent on capital improvements by the current owner since 2017. Exterior renovations include: Resurfaced parking lot, security gate installation, upstairs decking, and exterior painting. About 90% of the unit interiors have been renovated, which include: Faux wood plank flooring, new counter tops, two-tone paint, stainless steel appliances, new electrical and plumbing fixtures, and built-in microwaves.
There is a laundry facility on-site with new equipment installed in January 2019. The pool was recently closed, which will save approximately $10,000 in annual water expense. Waller Group Property Management is the current management company and will continue to manage upgrades and management for new ownership. Strong value-add plays exist in implementing RUBS at $25/unit to recover water expense, saving around $9,600 in annual utilities. Additional value-add component could be integrated through building an additional 12 units at the entrance of the property. These podium-style units can be built over the parking lot and will create 14 covered parking spots. 1 bedroom rent was increased in October 2019 to $850, and will be increased for each unit as leases renew. Current owner is selling to use equity for a project they’ve identified in another market.
LOCATION OVERVIEW
With an average effective rent growth of 4.1% over the last 12 months, Mesquite, TX is clearly still one of Dallas' original "boomburbs". The multifamily submarket has seen many value-add trades in the past few years due to its surplus of older, garden-style properties. Mid-city submarkets usually rely on blue-collar job growth, which has been especially strong in the retail and trade/distribution sectors of Mesquite. UPS is the largest employer in the area with over 3,000 jobs, while Ashley Furniture recently opened a regional distribution center in early 2019, adding over 350 jobs. The market may also see an influx of healthcare jobs in the near future if the long-planned, $250MM Verde Center at Peachtree Wellness Center is approved. The median household income within 1 miles of the property is $41,004. Projected population growth rate within 1 mile of the property is 7.15% over the next five years.
Call Logan: 214-736-1500
Full details here: https://wallergrouphomes.com/properties/?propertyId=432392-sale
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