Flatirons Equity Portfolio
When speaking with investors looking to increase their knowledge of Multifamily we often get asked where to start. In 2022 and 2023 we passively invested in 10 different opportunities totaling 3,460 doors with 14 unique properties in total. We would be happy to discuss what we liked about each of these opportunities, how we evaluated the investment returns and analyzed the sponsor underwriting. We also acquired three properties as part of the General Partner ownership team. As part of those acquisitions we participated in most aspects of the opportunity including analyzing and underwriting, securing debt, due diligence, capital raising, investor relations, and asset management. Reach out to schedule some time to learn more!
01 The Harlowe
(Passive Investor) 05/2022
The Harlowe (Formerly Montclair Estates) is a 113 unit Class B 55+ apartment community in Garland, TX. The asset is located in a submarket of Dallas/ Fort Worth, TX which is one of the top job markets in the United States, This asset has tremendous value add potential and the demand for this type of product in this submarket is extremely high! Montclair is located in a phenomenal location within Garland and is within a close proximity to many major economic divers in the Dallas-Fort Worth market and is within 2,000 ft of the Dallas Athletic Club. This was our first ever passive investment in Multifamily!
02 Keystone Farms
(Passive Investor) 07/2022
Keystone Farms (pictured above) was the second Multifamily Property Teresa and I passively invested in 2022. It is a 90 unit class B property built in 1998 with units having a townhome style feel in the hot market of Nashville, Tennessee. Nashville is experiencing tremendous economic growth from many industries adding new offices including Oracle announcing its HQ2 and Amazon adding over 5,000 new jobs. This is increasing buying power of tenants with median household incomes on the rise and supply in short demand. The property is closing next week and is already achieving up to 9% above proforma rents on some unit types before implementing the business plan! The sponsorship team secured 7 years of fixed rate date on this property providing excellent risk hedge in today's rising rate environment.
03 Sedona Square
(Passive Investor) 07/2022
Sedona Square is a 250-unit multifamily community in Houston, TX built in two phases during 1982 and 1983. The property is comprised of 16 residential buildings spread across a 4.3-acre site. Sedona Square offers residents a selection of 1 bed/1 bath, 2 bed/1 bath, 2 bed/2 bath and 3 bed/2 bath floor plans.
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Sedona Square sits in the Alief Submarket, 30 minutes southwest of Houston CBD. This area is characterized as one of the most ethnically diverse neighborhoods in the MSA, as there are several Asian, African, and Hispanic restaurants and retailers nearby. The immediate area is a mix of residential buildings, office parks, retail, and education centers. Additionally, Sedona Square feeds into Alief ISD schools, several of which are just minutes from the property, offering convenience for families.
04 Verano Apartments
(Passive Investor) 07/2022
Verano is a 1980-built, 312-unit multifamily community in Houston, TX. The property is comprised of 22 residential buildings spread across a 9.5-acre site. Verano offers residents a selection of 1 bed/1 bath, 2 bed/1 bath, and 2 bed/2 bath floor plans.
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Verano sits in the Briar Forest/West Memorial Submarket, between several high traffic roads in Interstate 10, Sam Houston Tollway, and Westpark Tollway. The property boasts proximity to major employment hubs, Energy Corridor and Westchase. Energy Corridor employs over 94,000 employees, and Westchase employs more than 50,000 workers. Verano is surrounded by an abundance of retail and entertainment options. Nearby are City Centre and Memorial City Mall, retail destinations that feature everyday brands to upscale retailers and sophisticated retail.
05 Rock Creek
(Passive Investor) 07/2022
Rock Creek is a 572-unit multifamily community in Houston, TX built in two phases during 1980 and 1983. The property is comprised of 39 residential buildings spread across a 20.6-acre site and has been well-maintained by the current owner. Rock Creek offers residents a selection of 1 bed/1 bath, 2 bed/1 bath, 2 bed/2 bath, and 3 bed/2 bath floor plans.
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Rock Creek sits in the Northwest Houston Submarket, 20 minutes north of Houston’s CBD. The property is located just off Interstate 45, which provides residents quick and easy access to Houston's significant employment and entertainment centers. Rock Creek is surrounded by retail centers, residential buildings, parks and trails, and healthcare facilities in the immediate area. Rock Creek is also a part of the highly desirable Spring ISD and is located just minutes away from several ISD schools.
06 Seville Apartment Homes
(Passive Investor) 08/2022
Built in 1982, Seville consists of seventeen two-story buildings in a park-like setting featuring large, home-like floorplans, which average 930 square feet and include full-size washer/dryer connections in 100% of the units. The units also feature private patios, offering residents more space and privacy. This powerhouse submarket is in great demand due to its location, employment opportunities, NEISD school district, and proximity to airport and major thoroughfares. Both properties offer tremendous opportunities for our vertically integrated teams to generate significant upside for our investors.
07 Castle Hills Townhomes
(Passive Investor) 09/2022
Built in 1997, Castle Hills Townhomes is a 148-unit townhome community featuring spacious units with 84% attached garages, fireplaces, and private yards providing tenants with an enhanced living experience. This powerhouse submarket is in great demand due to its location, employment opportunities, NEISD school district, and proximity to airport and major thoroughfares. Both properties offer tremendous opportunities for our vertically integrated teams to generate significant upside for our investors.
08 Ariva Apartments
(Passive Investor) 09/2022
Ariva is a 176-unit Class B value-add multifamily investment opportunity in Dallas/Fort Worth,
TX. Built in 1979, the asset consists of 18 two-story buildings with pitched roofs, 5 boilers,
individual HVAC and electric, and 263 covered/49 open parking spaces. Purchase price is $23.9M
with $2.2M in Capex, an attractive $136k/unit as comparable properties are currently trading at
$140k/unit.
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Located in a 1-mile high MHHI of $63k, Ariva is situated in SW Fort Worth, off I-20 between the
major thoroughfares of Chisholm Trail Parkway and 35W. Altamesa Blvd connects those two
arteries with Ariva just north of Altamesa on Woodway Dr. Healthcare, government/defense,
university, and retail are key demand drivers. Lockheed Martin, Southside Medical District,
Texas Christian University (TCU), Hulen Mall retail as well as Amazon and Walmart distribution
centers are major area employers.
09 The District at Midtown
(General Partner) 09/2022
The District at Midtown (formerly the Verge Apartments) is a 217-unit apartment community in one of the top job markets in the United States, Dallas, TX! This asset has tremendous value add potential and is located in a phenomenal location that is within close proximity to many major economic drivers in the Dallas-Fort Worth market. Below are a few details about the asset and the details of the investment.​
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Asset Class: C Class
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Debt: 7-10 Year, 58-59%% leverage, fixed-rate loan 4.86%
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5 Year Projected Total Return: 100.22%
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Annual Cash on Cash Projected Return: 5.14%
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IRR: 20.04%
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Capital Raise: $17,000,000​
This asset is located in far North Dallas, where CoStar projects 5.12% rent growth annualized over the next 5 years. The direct area Verge is located in has also seen a staggering 6.37% annualized rent growth over the last 10 years. The asset also sits less than a few blocks off of Interstate 635, a major thoroughfare and has EXTREMELY low bad debt and delinquency due to the type of tenant base. Verge and all Competitors currently have 95-100% occupancy as is!
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The District at Midtown is walking distance to the Galleria Mall with Nordstrom, Apple, Louis Vuitton, Zara, Sephora and more. The asset is also located inside of the Dallas Midtown Development project which is set to break ground in 2022. The plan highlights include parks and open space, two luxury hotels, iconic office towers, luxury condo units, a 10 screen AMC movie theater, boutique shopping, restaurants and entertainment venues.
10 Aria Apartments
(Passive Investor) 12/2022
Aria Apartment Homes built in 1982 & 1983 has 184 units and is located on 12.3 acres in the highly desirable North Arlington submarket. In addition to being in a superior location, residents enjoy a community with a best-in-class amenity package and a mix of one- and two- bedroom floor plans.
The Seller has maintained the property, particularly by implementing a premier renovation program in less than 30% of the units. These units have been equipped with stainless steel appliances, granite/quartz countertops, new cabinet fronts, custom tile backsplash, new flooring, brushed nickel features and hardware, and upgraded bathrooms. WindMass will renovate the remaining 70% classic units and continue increasing rents to their full potential.
11 Ventura Apartments
(Passive Investor) 12/2022
Ventura Apartment Homes, 476 units, is conveniently located on 17.6 acres in the highly coveted North Arlington submarket. In addition to being in a superior location, residents enjoy a community with a best-in-class amenity package and a mix of one- and two-bedroom floor plans.
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The community offers a best-in-class amenity package consisting of a resort style pool, an outdoor sports court, a courtyard with a grilling station, a unique dog park, covered parking, and a laundry facility. This strong amenity package along with significant capital expenditures targeted to increase curbside appeal has created an inherent leasing advantage for the property allowing it to maintain occupancy levels in the high 90%’s.
12 Berkshire Square Apartments
(General Partner) 09/2023
Berkshire Square Apartments is a 124-unit apartment community in the excellent Richardson submarket of Dallas, TX! This asset has tremendous value add potential and is located in a phenomenal location that is within close proximity to many major economic drivers in the Dallas-Fort Worth market. Below are a few details about the asset and the details of the investment.​
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Number of units: 124
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Debt: 10-Year Fixed-Rate Freddie Mac loan with five years of interest only
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Leverage: 65%
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5-Year Projected Total Return: 90%+
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Annual Cash on Cash Projected Return: 5%+
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Capital Raise: ~ $8,650,000
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Minimum Investment: Minimum investment of $60,000 (Cash & Solo 401k funds acceptable / IRA funds may be accepted depending on timelines)
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Estimated Date Investment Will Open to Investors: August 3rd
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Estimated Time of Closing: September 17th
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Depreciation Losses: Bonus depreciation will be applied to the 2023 tax year, and we will be doing a cost segregation study on this asset to maximize depreciation losses.
13 Maravilla Apartments
(General Partner) 12/2023
Maravilla Apartments, a 310 unit apartment complex in Dallas near Love Field was our latest acquisition which closed in December 2023. Below is an overview of some of the details we verified during due diligence in building the business plan.
5 Key Takeaways From Due Diligence
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Maravilla is currently 98.1% occupied and 100% Pre-Leased! - With this property trending toward 100% occupancy, we anticipate a seamless takeover, especially considering we are keeping the same property management team in place. We are grateful to know the current owners and are happy to continue on with a new capex plan.
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Most unit types are already achieving our projected proforma rents! - After we implement the interior renovations and upgrade the amenities as planned, we have complete confidence in achieving and beating our proforma rents in this market.
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Our capex budget fits perfectly with the due diligence results- After receiving bids from multiple contractors for all interior renovations and CapEx projects, we confirmed that we have sufficient funds to transform this property to the next level.
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Our competitors at Maravilla are, on average, at 98%+ occupancy! - We physically shopped comparable properties in the neighborhood to confirm high occupancy in all comps. For example, Cornerstone Apartments, a 240-unit inferior property across the street from Maravilla, is 99% occupied, achieving rents at our proforma targets!
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Delinquency is near zero! - After thoroughly auditing all financial statements, we confirmed that delinquency and bad debt amounted to only 0.52% of Gross Potential Rent. These residents pay their rent on time monthly, giving us added confidence in achieving our projected returns.
14 The Edge Apartment Homes
(Passive Investor) 12/2022
The Edge Apartment Homes, located in a powerful submarket, Abilene, Texas is a 288 unit apartment complex.
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Average Annual Cash Flow Over 7%
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90% Total Return Projected on a 3-5 Year Hold
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IRR Projected to be 15%
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Assuming a FIXED RATE loan with 10yr+ term remaining with 4.22% interest rate
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Loan Assumption has been approved! We will close in 2023
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288 Unit B-Class Property
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Constructed in 1982 (all PVC plumbing)
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Sponsors own two properties across the street
**95% occupancy for past 2 years in our properties across the street
**Historically low delinquency across all Abilene properties in our portfolio -
Economies of scale - At close we will have 516 units in a 1-block radius
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62% Bonus Depreciation tax benefit estimated in the first year
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Purchase 7% below the initial whisper price of $21M
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Property is in great shape! Lender required repairs total $37K (all repairs were accounted for in rehab budget)
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No new deliveries in next 2 years in the market
15 Next Opportunity
(General Partner) Q1/2024
We are actively looking for new opportunities to acquire a property in the Dallas/Fort Worth or Nashville metro area. Out of hundreds of properties we evaluate each year we choose less than 3% to move forward on to an offer stage.
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(General Partner) Q2-Q3/2024
