We are very happy to announce that CalTier Fund 1, LP has made another participating investment into a multi-family asset with our new partner Bakerson and Camino Verde Group.
This is incredibly exciting for us at CalTier and for our investors because we have had our eye on the Dallas/Forth Worth area for some time now, waiting for the right opportunity that fit our target deal metrics. Bakerson is an experienced operator and has done a fantastic job in finding this asset.
- 152 units (16 1 Bd/1Ba, 96 2Bd/1Ba, 40 3Bd/1.5Ba)
- 134,800 SF
- Constructed 1968
- 7.5 Acres property
- Centrally located near bus routes major employment
- Trending workforce location
- Neighboring development ‘Cowan Place’ just broke ground, which is a mixed-income property
From Bakerson – “We are excited to take on this 152-unit project within the heart of Fort Worth, Texas. We are purchasing this asset with its occupancy at almost 100%. The seller is liquidating their older assets to focus on newer properties. We have a clear plan to update units and attract longer-term permanent residents. Within 2 years we will have completed a 75% of the unit updates and complete the rest by year 3.
During this update we will bring rents to market and institute utility bill back to capture costs of water, sewer, trash, electricity and common area expenses. Current rents are easily $80 – $110 below current market for equivalent units.
Upon 90-for-90, where we have 90 days of 90% occupied and collected rents, we expect to refinance for 10+ years for our hold period. Throughout ownership we plan to keep our fingers on the pulse of market rents, market amenities and other economic metrics to properly protect this asset within any economy.
Our aggressive, yet competitive, bridge financing should bring funds in for rehab as well as purchase. And, this should bring higher profits to the project which includes you, the investor.”
Value Add Upgrades:
- Remodel and upgrade units
- Resurface countertops
- Install new flooring
- Paint Cabinets
- Add backsplashes
- Paint walls
- Install low-flow water devices
- Paint exterior
- Install new playground
- Implement utility bill-back system
- Capture loss to lease difference. Rents are below market value
We are looking forward to developing this relationship with such a great growing team and finding more assets like these in areas with strong economic drivers.
If you have yet to make your investment into CalTier, start here.