Fund Acquisitions

Upper E Apartments - Dallas, TX

Upper E Apartments
Property Upper E Apartments
Description

Upper E is a unique property, consisting of 466-units amongst 15 separate garden style apartment buildings located along Gaston Avenue and Live Oak in the East Dallas Area of Dallas, Texas. Built during the period from 1955 - 1974, the Upper E portfolio offers 58 different floor plans and approximately 330,559 of net rentable square feet, with an average unit size of 709 sq. ft. The property has 6 swimming pools, 14 laundry facilities, controlled access gates as well as a separate building containing a central Leasing Center.

Location Just minutes from Downtown Dallas and the Arts District, each of the properties are beautifully landscaped and nestled amongst the historic mansions of Swiss Avenue and beautiful homes of the Munger Historic District. Additionally, they are in walking distance to Lakewood and White Rock Lake, the shopping and entertainment areas of Greenville Avenue and the Deep Ellum night life.
Date Purchased November 4, 2010
Condition at time of Purchase

Between 1999 and 2003, extensive renovations were made to the properties, estimated in excess of $7,000,000. Subsequently, additional capital improvements in excess of $1,000,000 were made which include, but are not limited to; improvements made to; the interior and exterior of the properties, site work, mechanical systems, and unit replacements such as, new floors and carpeting, replacing HVAC units, new drapes and blinds, etc. The property overall is in excellent shape. There is minimal deferred maintenance required except for 4 down units that need to be renovated and rented. The prior owner, a large institution, “over managed” the property as evidenced by its extremely high operating expenses. The property was 92% occupied at the time of closing with an average monthly rent of $.89 per sq. ft.

Repositioning - In Progress

Renovate and re-rent the 4 down units. Create a new modern interactive website. Significantly, reduce the excessive operating expenses inherited from prior ownership. Upgrade the properties over the next 3-5 years, as was done with those in the immediate vicinity, in order to attract a more upscale tenancy and higher achievable rents. Many neighboring properties are averaging approximately $1.10 per sq. ft. by offering a more upscale amenity package to their tenants.

The property was originally purchased in 1998/1999 for approximately $35,000,000 with the intention of converting the units to condominiums. The owner invested a tremendous amount of money on funding improvements and shortfalls, but simply ran out of money. Additionally, the market crashed and the recession was in full gear. At the time of foreclosure in March 2005, the outstanding note balance was $21,475,498 ($46,085 per unit). Archon Residential, an affiliate of the Goldman Sachs Whitehall Group, purchased the note, completed the foreclosure and has owned and managed the property since 2005.

Property Summary

Upper E

Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments Upper E Apartments

Upper E Apartments Upper E Apartments

Contact Info

Rolling Cash Equity Group
1430 Broadway - 14th floor
New York, N.Y. 10018
Tel: 646-519-8490
Fax: 646-519-8494
info@rollingcashequity.com