Investment highlights:
– 99 Unit Class “C” Asset Located in Fort Worth, TX
– True Value Add Opportunity Through Deferred
– Maintenance and Property Management
– Rents Presently Operating Well Below “All Bills Paid”
– Market Rates; Potential to Increase by $0.50 Per Square Foot
– 42 Percent of Leases have Expired or On Course to Expire in First Quarter in 2018
– Potential to Improve Dated interior Units and Bring Rents to Market Levels
– 65 Percent Two-and Three-Bedroom Units; Large Floor Plans and On-Site Leasing Office
– 20 Percent Reduction in electricity Contract Coming June 2018
– Excellent Freeway Visibility From Interstate-35 (152,026 VPD)
– High-Density Employment Area (Miller Coors, Ben E. Keith Beverages, Lineage Logistics, Home Depot, Alcon-Aspex Campus)
Please click on the link below to access the OM and Due Diligence materials. In the upper righthand corner of the website, there is a CA “View Agreement”, once filled out you will have access to the OM an DD items:
Investment Narrative:
Sun Ridge Apartments is a 99 unit multifamily asset with 98- units income producing with one unit used as the leasing office. Sun Ridge is located at 6608 South Freeway in Fort Worth, Texas. Built in 1969, the property is situated in an established neighborhood with a mix of residential and some multifamily properties. The property provides excellent visibility and accessibility from Interstate-35 in Fort Worth. Located between Interstate-35 and Highland Terrace Street in south Fort Worth offers high-density employment from companies such as Miller Coors, Ben E. Keith Beverages, Lineage Logistics, Home Depot, and Alcon-Aspex Campus. The property provides a great family-oriented community with
Wedgewood Middle School nearby.
The asset consists of nine buildings spread over 4.56 acres with brick and wood exterior, concrete slab foundations, asphalt parking lot, mature trees and shrubs, both flat and pitched roof composition. Sun Ridge has individual HVACs and a boiler system onsite.
In addition, the property has two separate buildings structures, one has mansard roofs and the other is pitched. The mansard roof buildings are separately metered and the pitched roof buildings are master metered.
Common area amenities include but not limited to, controlled access gate, sparkling swimming pool, laundry facilities, an on-site leasing office, and an on-site bus stop (065).
Sun Ridge Apartments has an excellent unit mix of 29 percent one-bedrooms, 60 percent two-bedroom units, and 11 percent three-bedroom units. Floor plans range in size from 750 square feet to 1,440 square feet with an average of 1,065 square feet.
Unit amenities include but not limited to, unit patios and balconies in select units, walk-in closets, mini blinds, and frost-free refrigerators.
A well-capitalized investment group can potentially improve the unit’s interiors by updating flooring, paint, cabinets, kitchen appliances, light fixtures, bathrooms, adding new mini blinds, solar screens, and hardware.
Post capital improvements new ownership can enhance operations. One path is by increasing rents at market rate “All Bills Paid” levels while focusing on the reduction of required utility expenses through water reduction, various energy saving initiatives such as adding solar screens, adding new energy efficient windows, and ensuring air handlers are clean and functioning properly. Present ownership reportedly has an agreement with a new electric energy that begins in June 2018 and should reduce current billing to the tune of 20%.
Another path is implementing stringent property management techniques in place and systematically passing through all expenses to the tenants over time. With ninety-eight income producing units the
property has the ideal economies of scale to engage a third party reputable property management firm to retain market rate rent levels for either path.
Presents rent rates appear to be at 2014 market levels. In comparison to communities operating as “All Bills Paid” within the submarket, Sun Ridge Apartments are on average 50 cents per square foot below market rents. 42 of 98 units or 42 percent of leases have expired or are on course to expire in first quarter 2018. This allows for a new owner to add value immediately through renewals at market rents.
Investors seeking a true value-added opportunity can begin taking advantage of this historically high occupied asset, and its excellent visibility from Interstate-35 in one of the nation’s fastest-growing markets should seriously consider Sun Ridge Apartments in Fort Worth, Texas.
Sun Ridge Apartments - 6608 South Freeway, Fort Worth, Texas 76134
