past Full Cycle Investment

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.

27twentyseven apartments

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%.

Property Gallery


27TwentySeven

Multifamily Property | Dallas, TX

Photos provided by 27TwentySeven

Portfolio Performance


Project IRR

25.1%
Cash Multiple
2.46x
Hold Period
49 Months

Past performance is not indicative of future results.