The Wilkinson team is pleased to announce that the acquisition of Spring Parc Apartment Homes was completed on Tuesday, February 16th, 2021 as expected. Located at 18250 Marsh Lane, Dallas, TX 75287, the property was constructed in 1986 and consists of 304 residential units. This acquisition was Wilkinson’s first since the effects of the COVID-19 crisis began in earnest in March 2020. This marks our sixth major transaction, including three property sales and the refinancing of two additional properties, in the past year.
Spring Parc is a well performing asset that sits in the path of growth as Dallas continues to expand northward. Sitting right off President George Bush Turnpike, Spring Parc is conveniently located with easy access into the Addison-Legacy-Frisco “Platinum Corridor” along the Dallas North Toll Road. The immediate neighborhood around Spring Parc provides great visibility and walkability from the property. The property currently attracts primarily young professionals due to its location and higher concentration of one-bedroom units. This demographic makes up the overwhelming majority of the submarket as it provides easy access to many major employers to young working professionals.
Spring Parc presents an attractive value-add opportunity. The current ownership group has proven out a mid-level renovation on 118 of the current units achieving an average $150 premium on a $5,700 renovation. The opportunity remains to finish the remaining classic units and bring them up to the same level of renovation that has been proven at the property. This will bring significant value into the property as well as help Spring Parc with competitors nearby who are undergoing similar style of renovations. A majority of the heavy exterior capital improvement items have already been done, such as new roofs, new balconies, and landscaping work leaving the interior units as the focus of cap ex work.
While the closing transaction went off without a hitch, one of the smoothest our team has conducted, residents and staff awoke to record low temperatures. Many of the buildings were left without water or power, as were many businesses including restaurants and grocery stores in the surrounding area. 25 of 304 units suffered significant damage caused by burst water lines, with an additional 42 apartment homes encountering minor damage. With so many throughout the local area, and throughout the Midwest and South effected by unusual freezing temperatures, our team coordinated with local food trucks to bring much needed comfort and nourishment to residents and staff as early as February 18th when power was restored to the property. We could not be more appreciative of the residents and on-site staff for their resilience and understanding during this difficult time.
Here are a few project details:
Property Level Performance
Internal Rate of Return 14.9%
Equity Multiple 1.77x
Increase in Value 26.13%
These forward-looking statements are only predictions and are based upon various assumptions, which may prove to be incorrect. Actual events or results may differ materially. The Company cannot guarantee future results, levels of activity, performance, or achievements. Expected Average Cashflow. Internal Rate of Return.
More property level information can be found here.
Should you have any questions would like to learn how to participate in this project or projects like Spring Parc, please do not hesitate to let me know how I can help at your convenience.
Wishing you all our best,
David and the Wilkinson Team