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McCallum Communities – Dallas, TX
419-Unit Apartment Community – 506(c) Offering
Why You Should Consider This Project
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High Quality Location & Excellent Submarket Fundamentals
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Average Submarket Rent Growth (2022): 12.7%
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5-Year Population and Household Growth: 20+%
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No New Supply Under Construction within 3.0 Miles
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Strong Renter Demand (Average Submkt Vacancy: 4.5% – Q3 2022)
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Clear Rent Growth Upside & NOI Growth Achievable through Value-Add Renovations and Mark-to-Market Leasing
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Low-Leverage Transaction (52% LTC)
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Average Debt Service Coverage Ratio of 2.37x during the Hold Period
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Assumption of Attractive In-Place Freddie Mac Loan
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2.9% Fixed Interest Rate with 12 months of interest only period remaining
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Attractive Purchase Price Basis of $124,105/unit
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Similar Vintage and Location Sales Comparable Range between $146k-166k/unit
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Conservative Exit Cap Rate Assumption of 5.50%
Address: 7740 & 7777 McCallum Boulevard, Dallas Texas 75252
Property type: Rental Apartment/Multifamily
Strategy: Value Add
Price Acquired: $52,000,000
Offering size for LP Equity: $8,000,000
Hold Time: 5 Years
Exit Strategy: Planned outright sale of property
IRR*: 23.9%
LP Preferred Return*: 8%
Minimum Investment: $100k (Limited Spaces for $50k)
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* The preferred return / IRR is not guaranteed as it relies on the performance of the asset
Value-Add Opportunity:
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Comprehensive Interior Renovation Program, 90%+ of the existing units are in Classic Condition
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Exterior Cosmetic Improvements to enhance curb appeal and leasing
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Amenity Enhancement and Upgrades (Pool Areas, Social Court, and Fitness Center)
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Opportunity to Add Other Income Sources (Washer/Dryer 100% Hook-Up in Units and Parcel Lockers)
Property Details
Submarket: Far North Dallas
Units: 419
Unit Mix: (1) Studio, (390) 1-Bedroom Units and (28) 2-Bedroom Units
Ave Unit SF: 595 SF
Total Rentable SF: ± 249,475 SF
Current Occupancy: ± 91%
# of Buildings: 14 (mix of 3 and 4 story structures)
Major Building Systems: 100% of the Roofs were replaced in the last 4-5 Years, MEP, windows and other major building systems are functional and do not require immediate replacement or substantial repair.
Submarket and Neighborhood Fundamentals
Submarket: Far North Dallas [3rd Highest Rent Growth Submarket]
1-Mile Median HH Income: $48,782
3-Mile Median HH Income: $77,630
3-Mile Employment: 64,856
5-Yr Projected Population Growth: 21.90%
Neighborhood Profile:
% of Neighborhood as Renters: 98.7%
% of Neighborhood Single Person HH: 72.7%
Median Home Value: $531,115
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Submarket & Neighborhood Attributes that Support the Business Plan:
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Strong Projected Population Growth (US Average Annual Pop Growth is less than 1%)
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Median Household Incomes that Support Rent Growth
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High % of Renters and Single Person Households
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Strong Access to Jobs and Employment Opportunities (1 mile from George Bush Turnpike)
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Strong Affordability Gap between Home Prices (Mortgage/Ownership Costs) and the Rentable Market
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Close Access to High Quality New Retail & Shopping Corridors Along W Campbell Road (South) and in Plano (North)