Case Study

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The Collection - Dallas Townhomes

Identified a market opportunity to develop a rental product that was in short supply, acted quickly in a market that was rapidly gentrifying to assemble one of the largest land positions in the submarket

Investment Strategy

Purchased 25 recently-constructed rental townhomes in the Knox-Henderson / East Dallas submarket

Subsequently assembled 25 single-family residential land lots in the same submarket, where existing zoning permits denser development (mostly off-market, closing quickly using lines of credit typically unavailable to less sophisticated buyers)

Developing a portfolio of 160 condo-quality townhomes, which will be operated as a consolidated rental project under one brand for 3 – 5 years

Modern 2 bed / 2.5 bath floorplans with attached 2-car garages and large balconies appeal to urban professionals who favor larger units with dedicated parking and condo-quality finishes but prefer to rent than own

Leverage insights from operating 25 townhomes in the same submarket into the design and construction of the 160-unit portfolio; floorplan and design improvements suggested by current tenants integrated into new construction, including enlarged kitchens, larger outdoor space, ground floor study, and shared outdoor amenity space where feasible on selected sites

Multiple exit strategies: institutional buyers attracted to quality cash flow in hard-to-replicate format; condo converter(s); local investors and/or 1031 tax-deferral buyers