5520 Gaston Ave

INVESTMENT SUMMARY

5520 Gaston Avenue was originally named the Royal Palm Apartments and constructed in 1955. It was owned by the same family for over 55 years. Gaston Avenue is a two story 14,200 sf multifamily value-add rehab. The interior walls of the rehab were brought to the studs and individual units were realigned and modernized to maximize efficiency and appeal.

PURCHASE RATIONALE

5520 Gaston Avenue was originally named the Royal Palm Apartments and constructed in 1955. It has been owned by the same family for over 55 years. The area is gentrifying considerably and this property has been severely underutilized. The costs for Class A new construction, which may be somewhat overbuilt resulting in concessions, are very high and ultimately result in the need for high rents. There is a need for updated lower to moderate income rentals in the Dallas Metropolitan area.

EXIT STRATEGY

Stabilization should occur in year 2 with a 2% rental increase projected for the next 11 years. This project was initially a buy and hold; however, the partners will sell the project within 2 years for a 15% profit as a recapitalization event for other larger projects.