Investors Looking At 17% Target Return In The Red Hot Dallas Ft. Worth Submarket With Offering From RealtyMogul

RealtyMogul’s online real estate investing platform has a new offering available for accredited investors. The Bay Island is a 120-unit multifamily investment located in Garland, Texas, which is part of the Dallas Ft. Worth submarket. Bay Island is a value-add community that is located on the shores of Lake Ray Hubbard.

The quality of Bay Island’s location is only expected to improve in the near future. Aside from its access to the Dallas Ft. Worth submarket, which is experiencing rapid growth, Bay Island is also in close proximity to a planned multi-billion-dollar mixed-use development. Once completed, this development will turn Lake Ray Hubbard into a premier destination for watersports, shopping and entertainment. 

Investment Highlights

In spite of being a value-add investment, Bay Island is already a strong performer, with an occupancy rate at near 97% and rents growing at a rate of 15% annually. However, project sponsor, the ParaWest Group, believes there is even more rental upside that can be realized after they complete their renovations. They are seeking $7,000,000 in investor capital to complete this renovation which will not only modernize the individual units but enhance its lakeside location.

The Garland area itself is extremely popular for its A-rated public school system and has an average annual income of nearly $100,000. The current cap rate is 5%, but the sponsors believe that after their renovations are complete, they will be able to increase rents by $150/per door. If they can hit that number, it will be a tremendous value add and result in a tidy profit for investors when the property is sold at the end of the hold period.

• Minimum investment: $35,000
• Projected hold period: 3 years
• Projected internal rate of return (IRR): 17%
• Projected equity multiple: 1.62x

Distributions are projected to begin in February of 2023.

Access offering details on RealtyMogul

About the Project Sponsor

ParaWest Group is a Texas based real estate investment and management firm that was founded in 2012. They specialize in using their applied knowledge to identify value-add multi-family investments. To date, ParaWest Group has purchased and sold 23 multi-family developments, representing over 4,000 units. They have also sponsored five different projects on the RealtyMogul platform. The first two of those projects that completed their deal cycle generated IRR of 27% and 24%.