The Residence at Midtown is a community of 296 apartment homes built in 1974, strategically located in North Dallas with immediate access to major highways and nearby employment centers and retail options. The diverse unit mix consists of one- and two-bedroom units in five unique floor plans with an average unit size of 721 square feet. The property features two townhouse floor plans that account for 46% of the unit mix. The property offers excellent, newly-refurbished community amenities including a renovated swimming pool, multiple laundry centers, playground, and business center. The property is located on the same street block as Sedona Ranch Apartments, which has been one of the top performers in Touro’s portfolio. There is much opportunity for upside and value add from an operation standpoint as well as upgrades and improvements to the physical asset. The upsides will primarily come from forced appreciation through upgrading 75% of the units to a premium level. With these upgrades, we will capture an average of $114/unit over their rent at the time of acquisition, not including additional upside from other income. Additionally, we plan to refurbish the playground and add a pergola with grills to enhance the community living experience.
