LAKEWOOD GREENS APARTMENTS
Background
- Purchased property in 2014
- Property is close to White Rock Lake, a 1,000-acre lake with 9 miles of hiking and biking trails as well as picnicking, fishing, and dog playing areas
- Bordered on two sides by Tenison Park golf course
- Complex provides direct access to the Santa Fe Trail, a popular bike trail that leads to White Rock Lake
Investment Strategy and Process
- Assumed Freddie Mac fixed-rate loan with 8 years of term remaining
- Originated supplemental loan through Freddie Mac to match term of first mortgage and bring total leverage to approximately 70%
- Following successful Vieux Coulee strategy, AHC intends to implement a bike and kayak rental program to capitalize on the property’s adjacency to the Santa Fe Trail and White Rock Lake, to appeal to active tenants
Exit Strategy
- Sell in 2.5 to 4 years to private equity group or small institution
- Sell after common-area improvements are finished, an in-unit upgrade program is completed for a portion of the units, and rate of growth in rent increases begins to slow
AHC Advantage
Lakewood Greens demonstrates AHC’s rigorous local market analysis prior to investment. The complex enjoys a convenient location with easy access to downtown, Uptown and recreational areas. Situated in an improving neighborhood, it is well-positioned to accommodate demand from renters priced out of nearby Class A offerings.