Trails at Creekside Apartments

Allen, TX

  • Target Annual Cash 7.9%
  • Target IRR 14%
  • Target Equity Multiple 1.82x
  • Asset Profile Core Plus
  • Min. Investment $50K
  • Estimated Hold 5-10Y
MLG Capital Milwaukee, WI

Multi-Family Property

About this Property

MLG Capital is excited to pursue the acquisition of Trails at Creekside, a beautiful 444–unit, spectacularly-located garden style apartment complex. The asset is located in Allen, Texas, a “50-yard line” location for apartments, and where a large portion of the job and population growth is happening in Dallas, Texas Metroplex.

This property provides a unique blend of capital preservation, upside guided by MLG’s talented management team, and attractive returns. Recent sales in the current market place indicate that MLG is acquiring at an attractive basis, in some circumstances pricing may be similar to some Class B properties, on a per unit basis. MLG projects a 5 Year Average Cash-on-Cash at 7.9% and a net IRR of 14.0%, while utilizing low fixed rate debt at 4.25% interest rate at 62% LTC with a life insurance company. This is a high-quality asset that can capitalize upon new MLG affiliated professional management to grow the value.

MLG is making this offering available to RealCrowd investors. MLG projects to strategically grow the asset value. Furthermore, the asset is located in and near municipalities that have limited new zoning for apartments long term.

Read more Read less

Key Points

  • High Quality: Trails at Creekside is a class A++, Garden‐Style multi-family property built in 2014. It features granite countertops, stainless steel appliances, expresso cabinets with brushed nickel hardware, island kitchens, and full-sized washer and dryer sets.
  • Excellent Pricing: Recent sales in the current market place indicate that MLG is acquiring at an attractive basis, in some circumstances pricing may be similar to some Class B properties, on a per unit basis. Please see the Investment Summary book for more information.
  • Limited Zoning and High Construction Costs: According to data from the Bureau of Economic Analysis, construction costs have risen 25% over the past five years due to labor shortages, greater material costs, higher-end designs, and regulatory issues. Local Municipalities also are limiting the number of new apartments approved which may limit future supply (new apartment competition). Due to higher construction costs and building requirements, competing deals in lease up are currently asking more than our current rents.
  • Implementing Professional Management: MLG projects to enhance management operations over a pro forma five-year hold. MLG plans to utilize affiliated top personnel for leasing and management to implement these changes. Furthermore, these changes we project will stabilize the current rents closer to the market rental rates.
  • High Income Area: The City of Allen boasts one of the strongest demographic bases in the DFW metroplex, with an average household income of $146,420 and a highly educated workforce in which 53% of adults have at least a Bachelors degree.
  • Barriers to Entry – High Home Prices: Many young professionals starting out can’t afford a $400-$750k home in the area. Residents desire Class A living and expect a great amenity package which the Trails at Creekside property offers. The city has also put restrictions on developers, forcing them to build more one-bedroom units because the city views one bedrooms to be the most needed option for residents of Allen.
  • Exponential Growth: DFW is expected to add 130,000 people between the ages of 20-34 over the next 5 years and they will need one bedrooms to live in.
  • Top Tier School District: Trails at Creekside is served by the Allen Independent School District (ISD), one of the most prestigious districts in the State of Texas. Allen ISD is ranked the 6th best school district in all of Texas and is ranked in the top 1% nationwide according to Niche.

Financials

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Location Details

Allen, TX

The Trails at Creekside is located in the city of Allen, which is part of the northern suburbs of Dallas. Located in Collin County. The drive time to Downtown Dallas is 35 minutes, the drive time to Legacy West is 15 minutes, and the drive to CityLine is 20 minutes. The property is located near three major thoroughfares: SH-121 (aka Sam Rayburn Tollway) which runs east and west, I-75 which runs north and south and the North Dallas Tollway which runs north and south. These three arteries dominate the traffic flow in Allen and lead to the largest employment centers including – Legacy West, Legacy Business Park and the $5 Billion Mile master-planned mixed-use development. These three employment centers alone provide employment for an estimated 33,000 professionals, while continuing to draw global corporations such as Toyota (7,000 jobs), JPMorgan Chase (6,000 jobs), and Liberty Mutual Insurance (5,000 jobs) to the area. Other well-established firms continue to grow their Legacy presence, with businesses such as FedEx, which recently relocated 1,220 employees to Legacy, and Fannie Mae, which is consolidating its operations to Granite Park bringing an additional 1,000 employees. Also nearby, the new $1.5 billion CityLine development located at the intersection of President George Bush Turnpike and US-75 consists of 2.5 million square feet of office space, 935 varied residential units, over 231,600 square feet of retail anchored by Whole Foods with premium shopping and dining options, a 150-room signature Aloft Hotel, and two recreational parks. The area also has become a beacon for job growth, with State Farm’s new 1.5 million square foot regional headquarters in CityLine expected to add approximately 8,000 jobs to the immediate area while Raytheon is moving 1,700 employees from its Garland operations into a new Cityline campus.

Read more Read less

Documents

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline for this opportunity is August 31st, 2018.

The first projected distribution is scheduled for January 2019

Distributions are scheduled to go out on a quarterly basis.

No, this offering is only available to US residents.

MLG in its proforma does not project to pay a debt pre-payment penalty fee if sold prior to the loan maturing or allowing the debt to paid without penalty. MLG projects a future buyer will either assume the loan at their cost or will consider paying a prepayment penalty if the best interest of the investment group at the Manager’s election.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send MLG Capital and/or RealCrowd a message. If you have a question about this offering ask MLG Capital. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Trails at Creekside Apartments.

In the meantime, please review the offering documents and financials.

Signup for our free 6 week course on the fundamentals of commercial real estate investing.

;