Devonshire Lake Dallas

Devonshire Lake Dallas consists of 140 garden style units constructed in 2015. The property features brick and stone exteriors, high quality amenities such as a 24-hour fitness center and swimming pool, and an average unit size of over 1,000 square feet. Located near Lewisville Lake, this asset offers an excellent foundation for professional management.

Our strategy focuses on a value-add program targeting the 100% classic interior units. With a total renovation budget of 1.8 million, we plan to implement light upgrades at turnover that support 100-200 rent premiums per unit. This initiative will bring our in-place rents closer to the submarket average of 1,662.

Operations will be optimized through a hands-on management approach. By leveraging our experience across 3,200 units in Texas and Oklahoma, we intend to bridge the gap between current 90% occupancy and the 94% submarket average.

Investors in the Class C offering receive a 7% preferred return with a target cash on cash of 7-9%. The total project is designed to deliver a target IRR of 16-18% and an equity multiple of 2.16x over the 5 year hold period. Monthly distributions are expected to begin within 1-3 months of closing.

The capital structure includes an existing fixed rate HUD loan at 3.18% which provides significant stability against interest rate volatility. Our vacancy stress test demonstrates that the property maintains a breakeven occupancy for debt service as low as 74.9% in year one, providing a substantial cushion for investors. Additionally, the property benefits from a 50% tax abatement, further insulating cash flow.

Momentum Multifamily brings a track record of 350 million in purchase volume since 2014. Our team has successfully full cycled 9 assets with an average equity multiple over 2x and an average hold period of 3.2 years. We are committed to this project with a sponsor investment of 500,000 or more.