Westmount at Colonnade
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Asset Class
- 2015
Acquisition Year
- 3
Years
Held - 192
Number of Units
OPPORTUNITY
The Colonnade is a Class A, garden-style apartment community conveniently located one half mile from State Highway 360 on Osler Drive in Grand Prairie, Texas. At the center of the DFW Metroplex, this location provides quick access to nearby employers such as DFW Airport, Lockheed Martin, General Motors and Bell Helicopter-Textron, Inc. The property was built in 2001 and consists of 192-units with an average unit size of 1,000 square feet. Overall, the community has been well-maintained with an average historical occupancy of 90.3% and is in great condition for an asset of this vintage.
SOLUTION
The Colonnade presented Westmount with a unique opportunity to acquire an institutional-quality asset with great value-add potential. Because the property had been historically well-managed, Westmount was able to direct the majority of its renovation expenditures towards revenue-generating improvements rather than curing deferred maintenance issues. Westmount completed a $1.7 million enhancement program which included updating lighting and plumbing fixtures, cabinetry, countertops, appliances, amenities, landscaping, brushed nickel accents, faux wood flooring, as well as some other repairs.
TAKEAWAY
The Colonnade demonstrates Westmount’s ability to identify potential for rent premiums and apply its value-add strategy across different classes of multifamily assets. Although the community does not fit the typical mold of Westmount’s target assets, the firm successfully applied its value-add enhancement formula which increased occupancy to 95% with rent growth of 3% per annum. Furthermore, unforeseen costs arose during ownership which required Westmount to pivot from the original strategy. Our in-house engineering team was able to successfully manage these costs and maximize the asset’s value. Ultimately, Westmount was able to effectively solve the unexpected issues due to the expertise of the in-house engineering and construction team.
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