Value-Add Multifamily Investment Offering Now Live With a 17.8% Target Annualized Return

A new offering made it to the real estate crowdfunding platform CrowdStreet this week: The Boulders Apartment Living, a multifamily community located in the Garland submarket of Dallas/Ft. Worth, with an excellent target internal rate of return (IRR) of 17.8%.

The property is a vintage, 348-unit, 2- and 3-story, garden-style apartment complex built in 1984, with a unit mix that includes studios, 1-, 2- and 3-bedroom units with average footage of 771 square feet. 

A fitness center, covered parking, clubhouse, tennis courts, a resort-style pool and other community amenities are some of the features The Boulders Apartment Living offers. The interior features include walk-in closets, a breakfast bar, washer and dryer connections, fireplaces, pantries and private balconies and patios.

Investment Highlights: The deal sponsor is seeking to raise $15 million in equity to help fund the $54.8 million acquisition and planned renovations. 

The Boulders Apartment Living's occupancy rate sits at 94.5% with positive cash flow, but the sponsor plans to renovate the entire complex over the target hold period to gain a $200 rent premium per month for each unit.

In addition, the sponsor will execute a sales strategy to maximize sales proceeds upon achieving the budgeted rent increases and reaching complete stabilization. The anticipated sale price at the end of the target hold period is just over $81.96 million. 

• Minimum investment: $25,000
• Target IRR: 17.8%
• Target annual cash yield: 4.1%
• Target equity multiple: 1.9x
• Target investment term: 4 years

View offering details on CrowdStreet

Deal Sponsor: RH Capital and its partner RedHill are multifamily industry leaders, aiming to make a good economic impact and add value for their investors, enrich the communities where they invest and improve the quality of life for local citizens.

Its achievements have allowed it to grow and deliver essential services and value solutions to its clients, as well as exceptional, high-risk-adjusted returns to its investment partners. The sponsor has $1.76 billion in assets under management, encompassing over 9,510 units across the United States.

Photo: Courtest of CrowdStreet