Total number of units: 320
4003 N Belt Line Rd
Irving TX 75038
Glen Arbor Apartments is a 320 unit apartment complex built in 1981 and located on 12.86 acres in Irving, Texas. The apartments are two story wood frame with a combination of brick veneer and stucco exterior with pitched composition shingle roofs. All units are individually metered for electricity and have individual HVAC units providing for low maintenance.
The property was put under contract April 3, 2012, by Knightvest Capital of Dallas who has been Panther’s partner in most of our multifamily acquisitions. Knightvest provides onsite property management services and invests alongside Panther who provided 72.7% of the acquisition equity. Knightvest also obtains the third party debt component for the transaction and provides any guaranties required by the lender. Panther FW Investments and its’ investors provide no guaranties on the debt.
Panther closed the transaction on May 24, 2012. Glen Arbor was located in a high occupancy sub-market but was undermanaged resulting in below market rents along with sorely needed capital improvements.
The acquisition offered immediate 10% annual distributions to our investors. Glen Arbor was purchased for $10,700,000 ($33,437 per unit). This transaction was a value-add project scheduled to take approximately 36 months. Knightvest was able to capture this value-add component in 29 months. Overall occupancy remained in the mid-90s while growing rents over $138 per month on average. Knightvest implemented a modest interior upgrade program, including resurfaced countertops, new hardware, flooring and some new appliances.
EXECUTION AND SALE
Harvesting the added value with some future profit left for the next owner was commenced in the summer of 2014. Call for offers occurred July 1, 2014. We received 7 serious offers to purchase the property. Glen Arbor was sold for $45,842 per unit.
Panther’s original presentation projected hold period was 3 to 5 years with an exit cap of 7%. At the time of sale, we had owned the property 29 months and sold at 6.84% cap rate.
Panther FW investors achieved an annual return on investment in excess of 20%.