Highland Bluffs
Download Case Study- B
Asset Class
- 2014
Acquisition Year
- 7
Years
Held - 357
Number of Units
OPPORTUNITY
Westmount acquired a 357-unit Class B garden-style community named the Villas at Montierra in 2014 for under $25k per door. The 1980s vintage asset was located in an infill location, with in-place rents lower than comparable properties. Westmount saw value in the property’s workforce housing nature, due to the high proportion of larger units (50% two-bedroom units) to support families. The location, just north of Interstate 30 along Buckner Boulevard, offers easy access to downtown Dallas and public and school transit systems and is near many retail and employment centers.
SOLUTION
Westmount created value by undertaking significant capital improvements, improving management, implementing operational efficiencies, and identifying housing voucher gain-to-lease opportunities. $1.79 million was spent on capital improvement such as re-siding and repainting all buildings, upgrading unit balconies and patio enclosures, and repurposing a pool. Additionally, Westmount successfully completed a Unit Remediation program, including over 80-unit upgrades, following the Winter Storm Uri in 2021.
TAKEAWAY
The success of Highland Bluffs is due to the many capital improvements, proactive asset management, and acquiring the property at an attractive basis. Westmount’s value-add program has proven effective across all classes of multifamily properties, with Highland Bluffs being another great example. Westmount successfully stabilized occupancy, improved the operational efficiency of the property, and increased NOI, all of which helped provide outstanding returns for our stakeholders.
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