Near the North Dallas Corridor I-820, the project offers easy access to DFW airport as well as downtown Fort Worth. The complex is in close proximity to a number of major employers, including Bank of America, Motorola Employee Credit Union and Alliance. The dynamics of North Fort Worth is proven by some major recent lease contracts, including UPS (500.000 sq.ft.), Quietside (200.000 sq.ft.) Exel (175.000 sq.ft.) and American Tire (137.500 sq.ft.)
Furthermore, in the immediate area there are various shopping centers and a number of green areas including parks and golf courses. Fossil Hill Apartments is located within walking distance of the Haltom High School and John D. Spice Elementary School. The high school ratings are beneficial to the local apartment market as well as the leasing of Fossil Hill Apartments. For families a school district with high ratings is an important incentive to motve to.
The complex consists of 216 rental apartments, in 18 two-story buildings incl. the usual common areas such as a clubhouse with fitness center, a leasing office and two swimming pools. In addition, a laundry facility and 24 carports generate additional income. The complex, which is built in 1985, is well maintained. Over the last 20 years, the maintenance manager has done a great job in the maintenance of the complex with great attention to detail, care and attention. Besides that, the basic structure of the building and roof are in good condition.
Key data
Location
5700 North Beach Street, Haltom City Fort Worth, Texas
Initiator
REALIANCE USA B.V.
Local partner
InterCapital Group (ICG)
Property manager
Vesta Management Services (Vesta)
Category
Renovation and management of 216 apartments
Expected investment term
Five year
Exit strategy
Sale to an (end) investor
Participation
Minimum US$ 125,000 excl. 3% emission costs
(160 participations of US$ 25,000)
Structure
Direct in Fossil Hill Apartments LP
Equity
– Dutch and German investors US$ 4,000,000
– General Partner US$ 700,000
Projected gross capital growth
91.3% over five year
Projected gross ROI
18.3% per year
Unique selling points
Economic power house Dallas/ Fort Worth is one of US most dynamic regions, is business friendly and has a highly educated / young population.
DFW has a high demographic and employment growth resulting in a strong demand for rental apartments.
Project is highly visible and excellently located towards employments centers e.g. around DFW airport and Fort Worth Central Business District.
Local partner is very experienced as investor and property manager with similar projects in her core target market DFW.
Mitigated risk profile strengthened by a 10-yearsfixed rate loan, so there is no refinancing risk during the investment term.
Competitive interest rate with regard to the loan in combination with a high economic occupancy provides a cash return of minimal 8% per annum.
General Partner participates for a substantial amount.
Location
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl
