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Financials and the Offering Memorandum can be found on our website using the link below.
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 $207,872 at a 7.00% cap rate and is 96.9% occupied. Unit sizes are larger than average for the area, with 2-bedroom units featuring washer/dryer connections and wood-burning fireplaces. All units feature private balconies or patios.
Over $310,000 has been spent on capital improvements by the current owner since 2017. Exterior renovations include: Resurfaced parking lot, security gate installation, 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 swimming pool was recently filled in September 2020, lowering the annual water expense and increasing NOI. Property taxes were also recently disputed and reduced to $38,767.
The current average of effective rental rates is $1.30/sf while the proven average of new move ins is $1.44/sf. Increasing rents to this market rate will realize an additional $40,000 in annual revenue.
Waller Group Property Management is the current management company and will continue to manage upgrades and management for new ownership. Strong value-add play exists in implementing RUBS at $25/unit to recover water expense, saving around $10,000 in annual utilities. Current owner is selling to use equity for a project they have identified in another market. Financials and Offering Memorandum can be found on our website using the red link above.
Call Logan: 214-736-1500
Full details here: https://wallergrouphomes.com/properties/?propertyId=432392-sale
