New Investment Offering – Creekside at Northlake

Located in Dallas, Texas, JKAM is pleased to present Creekside At Northlake, a 228-unit multifamily investment opportunity.

Key Investment Details

IRR: 17% | Profit Multiple: 2.09x | Avg Cash-on-Cash Return: 6%

Hold Term: 2-5 years | Pref Returns: 8% | Year Built: 2001 | Unit Count: 228 units

Why We Like The Deal

• Interest Rate Protection: The operator is buying down the interest rate by purchasing an interest rate cap, capping the total interest at 4.75%. The returns projected are assuming a maximum interest rate of 4.75%. If the Fed continues to increase rates, it will not impact the returns for this investment.
• Low Loan To Value: The initial loan to value is 60% of the purchase price, which is considered to be very low.
• Break Even Occupancy: The operator will have $1,535,000 of cash reserves in place, this means the property could be at 58.1% occupancy on day 1 after take-over and remain there for over 5 consecutive years and would still have enough reserves to cover all expenses, debt service, and break even by the end of Year 5 without doing a cash call. The property is currently 92.5% physically occupied and they expect to quickly increase that.
• Increased Renovation Velocity: In 2023, this operator has focused on increasing the velocity of renovations in order to maximize NOI and the value of their properties. This forces appreciation in a market where organic growth is unstable.
• Proven Value Add in Dallas Market: Since January 1, 2023, the operator has renovated 883 units with an average rent increase of $449. On average this is $29 above the projected rents.
• Proven Operating Partner: With a current portfolio of 4 properties, 1,134 units, and 20+ full-time staff members in Dallas, they are well-positioned to execute. Additionally, this operator manages a national portfolio of 43 properties, 8K+ units, 1.7 billion in value, and has taken 11 full-cycle over the last 36 months.
• Better Terms: Due to the size of JKAM’s investment in this deal, JKAM Fund II is receiving a 80/20 split vs. the 70/30 most retail investors receive.

Investor Timeline:

1. The final date to reserve your allocation for this offering is August 20, 2023.

Make A Reservation