Summary

Briardale is a 160 unit apartment complex located in the city of Plano, TX, part of The Dallas Fort Worth (D/FW) metropolitan area that has experienced significant job growth during the last twelve months with the trend projected to continue. The city is approaching full development with no vacant zoned multifamily sites west of SH-75.

Plano is a premier northern suburb of Dallas and is readily accessible to the D/FW airport and major highways including the Dallas Tollway, Bush Turnpike, SH-75 and SH-121. Plano is home to many large and diverse corporations located in the Legacy Business Park and along major travel corridors. In 2005, Collin County employers (Plano is the largest city) created more than 20% of new job growth nationally. Major employers within one mile of Briardale include Medical Center of Plano, Dallas Morning News, Alcatel, and Perot Systems. Other major employers in Plano include EDS, PepsiCo/Frito Lay, JC Penney, Cadbury Schweppes, Ericsson, AT&T Wireless, Rent-A-Center, Intuit, and McAfee.

The rental market in Plano has been strengthening over the past eighteen months. The market has seen improved demand due to job growth, a lack of new supply, and lower affordability of single family housing. Sturdy growth in the business and financial service industries has been a boon to Dallas in the past two years. Dallas has the highest concentration of key national business services industries, such as accounting, legal, consulting, advertising and banking, in Texas, and the ninth highest in the nation. This ranking underscores Dallas’s large and rising role as a national and global business center.

At the time of acquisition the property was 92% occupied. A capital appreciation investment profile; along Independence Parkway which has significant daily drive-by traffic thereby supporting the leasing of the units. The primary strategy is to implement a rehab program, with much of the focus on the exterior enhancement of the property. The rehab expenditures are expected to allow Briardale to compete with other apartment projects in the area and achieve market occupancy levels. Market fundamentals have tightened; the upswing for apartment investing in Dallas is being driven by a combination of employment growth, lack of new construction, and reduced affordability of single family housing.