We’ve invested roughly $10.67 million in the Laurel Heights at City View Apartments (formerly Remington Hill), a 440-unit apartment community in Fort Worth, Texas. This project is part of a four-asset portfolio we acquired in the area, which has experienced strong demand driven by some of the highest population and employment growth in the country.

At a strategic level, all signs point to us being even later in the economic cycle, with asset prices at near-record highs. However, a brief period of low interest rates and a dip in prices in Q2 2019 created a window of opportunity for us to make equity investments into apartment properties like this one at attractive risk-adjusted returns.

Business plan

At the time of our acquisition, the property was roughly 95% occupied. Our partner, American Landmark Apartments, plans to complete interior renovations on all of the apartments and improve the clubhouse, pool area, and landscaping. We expect this value-add program to drive an increase in rental income, and consequently, the overall value of the property.

Following the completion of renovations, we plan to actively manage the property for roughly ten years before seeking opportunities for an exit via sale or refinance. Our goal is to earn consistent income over the duration of our holding period, with the potential for long-term upside by selling the property for more than we put into buying and renovating it.

Why we invested

  • Experienced sponsor: American Landmark Apartments (ALA) currently owns and operates over 24,000 units with a diverse real estate portfolio valued in excess of $2 billion. Prior to this acquisition, we have partnered with ALA on eleven other projects, including The Enclave at Lake Ellenor in Orlando, which achieved a 39% appreciation in appraised value in just 21 months.
  • Healthy local economy: The Bureau of Labor Statistics reported a 2.9% increase in employment between May 2018 and May 2019 for the Dallas-Fort Worth-Arlington MSA, nearly double the national average of 1.5%. With Toyota, Liberty Mutual, and JPMorgan Chase having recently expanded their operations in the area, we expect continued strong demand for reasonably-priced apartment housing.
  • Income-generating asset: The property was 95% occupied at the time of our investment, generating consistent cash flow through rental income.

As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.