Apr 13, 2015 7:15 EST

Villas at LeBlanc Park – Stabilized cash flowing Class B multifamily asset located in the desirable South Hulen submarket of Fort Worth, TX

iCrowdNewswire - Apr 13, 2015

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
SPONSOR

Aldwin Apartments

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.

SUMMARY

Sponsor: Aldwin Apartments
Targeted XIRR: 19.6%
Targeted Annual Cash Yield: 11.0% avg
Targeted Hold Period: 4 ¼ Years
Investment Type: Equity
Property Type: Class B Multifamily
Location: Fort Worth, TX
Purchase Price: $11,125,000
Price Per Unit: $66,964
Price Per Sq Ft: $72
Sponsor Co-Investment: $500,000
Rentable Sq Ft : 156,876
Lot Size: 6.87 acres

DOCUMENTS

INVESTMENT OVERVIEW

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.

Transaction Summary

Purchase Price $11,125,000
Closing Costs $524,523
Improvement Reserve $570,800
Total Costs $12,220,323
Sources
CrowdStreet Equity $2,820,323
Aldwin Co-Investment Equity $500,000
First Lien Debt $8,900,000
Total Sources at Closing $12,220,323
Loan Summary
Interest Rate 4.34%
Amortization 30 years
Interest Only Period 2 years
Loan Term 10 Years
Loan to Cost 72.8%

Summary of Terms

Equity Investment Amount $3,320,323
EQUITY CONTRIBUTION
CrowdStreet Investors 85%
Aldwin 15%
PREFERRED RETURN
CrowdStreet Investors 8%
SPLIT AFTER PREFERRED RETURN
CrowdStreet Investors 65%
Aldwin 35%
CrowdStreet Investor Targeted XIRR
(4 ¼yr)
19.6%
CrowdStreet Targeted Investor Equity Multiple 1.73x

Property Snapshot

Acquisition March 2015
Market Rents (avg) $799 $819
Economic Occupancy 84% 88%
T3 NOI* $681,102 $752,000
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

Q1 Q2 Q3 Q4 Total
Year 1 $50,000 $1,317 $1,317
Year 2 $1,485 $1,485 $1,485 $1,485 $5,941
Year 3 $1,169 $1,169 $1,169 $27,522 $31,029
Year 4 $1,390 $1,390 $1,390 $1,390 $5,558
Year 5 $1,510 $1,510 $1,510 $38,128 $42,658

THE PROPERTY

Property Description

Address 6250 Granbury Cut off Fort Worth, TX 76132
Units 168
Number of Buildings 12
Site Acreage 6.9
Floors One, two and three
Parking Stalls 343 (2.04 per unit)
Zoning MFR – City of Fort Worth
Net Rentable (SF) 156,876
Construction Vintage 1985
Superstructure Wood-framed
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
Elevators None
Fire and Life / Safety Fire extinguishers, smoke detectors and audio/visual life safety devices (common areas).

Unit Mix

Unit Type Number SF
1BR/1BA 24 660
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
Total 168 (934 avg)

Capital Budget

Description Amount Description
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
Contingency $12,900
Supervision Fee $50,000
Total* $570,800

* $66,485 Already deployed since acquisition


THE LOCATION

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.


Leadership Team


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.


Seth Weinroth

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.

 

 

Contact Information:

John N. Whitman
Seth Weinroth

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