EL SOL DEL LAGO

APARTMENTS

A 320-unit value-add asset in Northwest Dallas, TX

Big News!! After analyzing over 300 deals, our team of sponsors with over 50 years of collective real estate experience and total Assets Under Management of $200M, is excited to announce that we are officially under contract for the acquisition of an amazing Class C, 320-unit multifamily property in one of the most robust MSAs in the country, Dallas, TX. This asset is located near Bachman Lake area and within proximity of Love Field Airport, walking distance to Sam’s Club and Walmart, two Starbucks, and Technology Boulevard which houses amazing waterfront restaurants, hotels, entertainment, including LOOK Dine-in Cinema, and it is just 18 minutes’ drive to Downtown Dallas.

Investment Preview

PROJECTED INVESTMENT RETURNS.

Purchase Price: $27.6M
Equity Multiple (5-Yr Hold): 2.6x
Average Annualized Total Return: 26.4%
Total Return (Cash Flow + Equity): 132%
Average Annualized Cash Flow: 6.47%
IRR: 19.3%
Minimum Investment Amount: $50k

With 100% of the units still with classic finishes, this deal immediately presents us the opportunity to perform unit upgrades during lease turns and bring rents to market rates. Being in a prime location, El Sol Del Lago Apartments currently has a 97% occupancy which outperforms the Northwest Dallas 6.5% average vacancy (CoStar). Cost Segregation will be performed to maximize tax savings through bonus depreciation.

For this deal, we are obtaining a new 10 Year 5.6% Fixed Interest Rate loan loan (5 yr Interest Only) at 74% leverage with the potential for an additional mezzanine. With such leverage, we will still achieve a Debt Service Coverage Ratio (DSCR) of 1.84 in Year 1, with most lenders only requiring a DSCR of ~1.25. This level of DSCR is very rare in today’s market, as buyers will have to come out of pocket with more down payment to meet lenders’ DCSR requirement. DSCR is essentially a measure of cash flow cushion in the deal and is calculated as the total NOI ÷ debt service. A DSCR of 1.84 means we’re projecting Year 1 NOI to be sufficient to cover the debt payment almost 2 times over.

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Property Photos

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Other Reasons We Love this Deal

FAST GENTRIFYING AREA

Three-mile median household income ~$60k
Home values within a mile radius >$350K (CoStar)
Visible changes with new construction taking place all over
Diversified job market: Aviation (Dallas Love Field Airport, Southwest Airline HQ), Healthcare (Children’s Health, UT Southwestern Medical Center, Parkland Health), Manufacturing (Texas Instruments Inc., Borden Dairy), Service Businesses and Banks (Bank of America, JP Morgan, AT&T, Atmos Energy.)

OUTSTANDING PROPERTY CHARACTERISTICS

Owner self-managed the property which means this asset has yet to achieve its full potential
100% of the units ready for upgrade (A lot of meat on the bone)

HIGH LEVEL BUSINESS PLAN

Bring rents to market
Upgrade 60 units to basic finishes and 100 units to premium finishes
Renovate and reopen non-functional clubhouse to add fitness center and to cater to community events
Add dog park and implement pet fees and pet rent
Implement paid covered & reserved parking
Extend patio on all the ground units
Implement water conservation (annual $250k savings)

Deal Sponsor Team Experience

Sponsors are Accredited Investors
Collectively over 50 years of Real Estate experience
Currently managing a portfolio of 15 properties with over 3000 units
Total asset value of $200M+
Equity Raised $100M+

Submit your soft commitment today to secure your spot in the El Sol Del Lago deal. As always, priority will be given to existing investors, followed by the order soft commitments are received.

Invest in this Deal

View the Webinar Slides

Contact your Sponsor

If you have any questions, or if there’s anything we can help clarify, please contact our Investor Relations team at ir@westworthcapital.com or book a meeting directly with me.

We look forward to partnering with you!

Dami Fadipe and the Oradell (ESDL) Team

NEW DEAL