Villas at LeBlanc Park
Stabilized cash flowing Class B multifamily asset located in the desirable South Hulen submarket of Fort Worth, TX
- 19.6% Targeted XIRR
- 11.0% avg cash-on-cash return
- 4 ¼ year targeted holding period
- 168 units – 97% occupied with stable history
- Opportunity to refinance and return substantial equity within 3 years
- New roofs in 2012
- Family-oriented design with 86% large two bedroom units
- 10.2% increase in trailing three month NOI since acquisition
Aldwin acquires properties in key metropolitan areas that are likely to achieve higher than average employment. We target assets which have maintained high occupancy rates. We look for opportunities to increase value by improving returns through capital and operational efficiencies.
Aldwin, based in Massachusetts, owns six properties and 1,495 units in Virginia, Massachusetts and Texas. Aldwin is an owner, property manager and asset manager of apartment communities. Aldwin’s founders have extensive experience in multifamily valuation and financing as well as wide-ranging management expertise. John N. Whitman has over a quarter century of commercial real estate experience focused on principal transactions, originating and structuring more than $25 billion in first mortgages, B-notes, mezzanine loans and equity primarily focused on multifamily assets. Seth Weinroth has over 20 years of business startup and operations experience. He founded and successfully exited 4 high-tech, accounting and legal support service firms.
|Targeted Annual Cash Yield:||11.0% avg|
|Targeted Hold Period:||4 ¼ Years|
|Property Type:||Class B Multifamily|
|Location:||Fort Worth, TX|
|Price Per Unit:||$66,964|
|Price Per Sq Ft:||$72|
|Rentable Sq Ft :||156,876|
|Lot Size:||6.87 acres|
Villas at LeBlanc Park (the “Property”) is a well maintained Class B asset located in the desirable Hulen Bend sub-market of Fort Worth, Texas.
Aldwin acquired Villas at LeBlanc Park on July 21, 2014. Aldwin Villas LeBlanc, LLC (the “Company”) owns 100% of the equity interests in Villas at LeBlanc Park and is the owner of record of the property. The Company, which was capitalized with $3,320,323, is offering CrowdStreet investors the opportunity to acquire membership interests in the Company at its original basis.
The Managing Member of the Company is Aldwin Partners, LLC (“Aldwin” or the “Sponsor”). Aldwin is Sponsor of the project and the Managing Member of Aldwin VL Manager, LLC, which is the non-member Manager of Villas LeBlanc, LLC.
Both the Company and Aldwin are of the opinion that the acquisition of Villas at LeBlanc Park was attractive for the following reasons:
- The Asset was purchased from an entity controlled by Olympus Property, (“Olympus”) who acquired it in 2009. Since their acquisition approximately $736,000 was invested in capital improvements at the property. Most notable is that the property received all new roofs in 2012.
- The Sponsor believes Olympus decided to sell because that was consistent with their investment strategy. The Property was marketed by ARA.
- Villas LeBlanc LLC will invest approximately $571,000 in the first 24 months mainly on interior upgrades, improved landscaping and enhancements to the pool area. The renovation project will concentrate on updating unit interiors in an effort to raise rental rates.
- The implementation of the business strategy, which includes the renovation plan and aggressive management oversight, is designed to retain and attract higher paying tenants. Aldwin projects the result will be an increase in net operating income of 13% during the first (two) years of ownership.
- Villas at LeBlanc Park is approximately 97% occupied. Most of the tenants are employed in education, health care or the service sector. They typically earn $26,000 – $40,000 annually.
|Aldwin Co-Investment Equity||$500,000|
|First Lien Debt||$8,900,000|
|Total Sources at Closing||$12,220,323|
|Interest Only Period||2 years|
|Loan Term||10 Years|
|Loan to Cost||72.8%|
Summary of Terms
|Equity Investment Amount||$3,320,323|
|SPLIT AFTER PREFERRED RETURN|
|CrowdStreet Investor Targeted XIRR|
|CrowdStreet Targeted Investor Equity Multiple||1.73x|
|Market Rents (avg)||$799||$819|
|Operating Reserve Balance||$570,800||$504,315|
|Operating Cap Rate||6.1%||6.8%|
* T12 at acquisition
Annual Investor Cash Flow Summary
Hypothetical $50,000 Investment
Quarterly Investor Cash Flow Summary
|Address||6250 Granbury Cut off Fort Worth, TX 76132|
|Number of Buildings||12|
|Floors||One, two and three|
|Parking Stalls||343 (2.04 per unit)|
|Zoning||MFR – City of Fort Worth|
|Net Rentable (SF)||156,876|
|Exterior Finishes||Masonry brick, fiber cement siding, wood siding|
|Foundation Type||Concrete slab on grade|
|HVAC||Individual split systems with condensers and air-forced furnaces|
|Roof System||Asphalt shingles; full replacement in 2012|
|Fire and Life / Safety||Fire extinguishers, smoke detectors and audio/visual life safety devices (common areas).|
|2 BR/1.3 BA||32||912|
|2 BR/2 BA||20||924|
|2 BR/2 BA||36||975|
|2 BR/2 BA||24||976|
|2 BR/1.3 BA||32||1,089|
|Parking / Paving / Striping||$2,000||Concrete repairs|
|Sidewalks||$1,000||Repair Trip Hazards|
|Carpentry||$6,000||Missing & loose trim, patio fences, storage door replacement|
|Pool||$28,500||Pool deck sealing; paint pool & perimeter fence; planters, windscreens|
|Railings & Stair Stringers||$15,000||Painting & welding repairs|
|Plants & Lawn||$10,000||Repair bare areas; install hardscape|
|Windows / Screens||$15,000||Window beading replacements|
|Conduits||$4,000||Repair feeds on Buildings 2 & 3|
|Unit Renovations||$420,000||Black appliances, faux wood flooring, 2 inch blinds, nickel hardware, lighting, backyard fencing|
|HVAC||$6,400||Replace 10 units over the next 2-3 years|
* $66,485 Already deployed since acquisition
Villas at LeBlanc Park is located in the highly desirable southwest Fort Worth area, an affluent neighborhood located 10 miles from Downtown Fort Worth and close to major thoroughfares including the newly completed $1.4 billion Chisholm Trail Parkway and Interstate 20. The area is close to some of the highest single family prices in Fort Worth. Villas at LeBlanc Park is within two miles of the Hulen Mall, which is a premier retail destination in metropolitan Fort Worth. In addition, it is located less than five miles away from prestigious Texas Christian University. Located within ten miles of the property is the Medical District, which contains 39,000 jobs and generates $5.5 billion into the local economy.
Villas at LeBlanc Park falls within the highly regarded Crowley Independent School District. Oakmont Elementary school is a short walk across LeBlanc Park and the rest of the public schools are within a 4.6 mile radius. There are 10 elementary schools in the district. In the recently released rankings, Oakmont received the top accountability rating and was one of only two elementary schools in the district to achieve four of six potential Campus Distinction Designations for academic achievement in Reading, Mathematics, Student Progress in the top 25% and Closing Performance Gaps. The intermediate school is Sue Crouch and the middle school is Summer Creek. Both were also awarded the top accountability rating.
The median single family home price within a one mile radius is $160,770. Crime in the area is moderate, with minimal incidents reported at the property address in the past year. Villas at LeBlanc Park Apartments is directly adjacent to the 15 acre public LeBlanc Park. A number of units have direct views of the park. On the opposite side of the park is Oakmont public elementary school. Major employers in the area include the retail establishments in and around the Hulen Mall, the adjacent medical district as well as the Carter Industrial Park, which is home to a host of corporations, including Alcon Laboratories, Miller-Coors Brewing, Green Bay Packaging, Mother Parker’s Coffee, Tyson Foods, Save-a-Lot, and Mrs. Baird’s Bread.
John N. Whitman
One of the two Managing Directors of Aldwin Partners, LLC d/b/a Aldwin Apartments. Over a quarter century of commercial real estate experience focused on principal transactions, originating and structuring more than $25 billion in first mortgages, B-notes, mezzanine loans and equity. Originated, underwrote and structured hundreds of commercial real estate debt and equity financing transactions. Virtually all completed transactions were valued higher than $20 million. Oversaw asset due diligence and investment committee process for funding approval.
- RBS Greenwich Capital
- Credit Suisse Group
- Donaldson, Lufkin & Jenrette
- Nomura Asset Capital Corporation
- Bear Stearns
- Cushman & Wakefield
- Leggat McCall Advisors
Co-head of commercial mortgage originations at Credit Suisse Group, MBA from Fordham University, Graduate School of Business, and BA from Roger Williams University.
One of the two Managing Directors of Aldwin Partners, LLC d/b/a Aldwin Apartments. Over 20 years of business startup and operations experience. Founded and successfully exited 4 high-tech, accounting and legal support service firms. CEO or COO of two $15 million companies employing over 100 professionals. Directly responsible for all key operations including sales, marketing, accounting, finance, legal, HR, hiring, training and administration. Registered attorney. J.D. from the New England School of Law. Bachelor’s degree in Business Administration from the University of Miami.