27TWENTYSEVEN
In September of 2013, Bridgeview Real Estate (“Bridgeview") started development on a 152-unit Class A apartment community in the Medical District of Dallas, TX. Named 27TwentySeven for its location at 2727 Kings Road, the complex consisted of two three-story buildings with both tuck-under and surface parking.
The underlying investment thesis centered around proximity to the expanding Medical District, a lower cost basis than competition, strong market and submarket employment growth. Costs for the project totaled $16.59 million (~$109,000 per unit), funded by a $12.15 million senior loan, $3.1 million of equity, $925,000 of mezzanine, and $370,000 of developer co- investment.
While the initial PPM included a projected holding period of 30 months, the anticipated sale price was under $21 million. The actual investment period of 49 months allowed Bridgeview to benefit from positive demand factors and a compressed cap rate environment, which led to a sale price ($25.4 million) over 22% higher than projected. This, combined with a low basis in the property due in part to not needing a parking garage, was a key factor in driving returns. Rents per square foot at the time of sale were similarly higher than projected – at an average of $1.84, compared to pro forma estimates of $1.49, the difference was over 23%.
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27TwentySeven
Multifamily Property | Dallas, TX
Photos provided by 27TwentySeven
Portfolio Performance
25.1%
2.47x
49 Months
Past performance is not indicative of future results.
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*The information contained herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in the firm’s limited partnerships involve a high degree of risk, including the possible loss of your investment, and they are potentially illiquid with an uncertain liquidity date. Prospective investors should carefully review the “Risk Factors” section of any private placement memorandum. Past performance is not indicative of future results.
**BV Capital is a member of the Bridgeview family of companies based in Dallas, TX. BV Capital offers investments to existing private clients, broker dealers, registered investment advisors and family offices through BV Securities (FINRA / BROKERCHECK / Reg BI) as Bridgeview’s managing broker dealer. BV Capital manages the financial and administrative operations for Bridgeview and BV Securities offerings.**
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