Summary

Prairie Place, a 208 unit apartment complex, is located in the city of Plano, Texas, a premier northern suburb of Dallas, 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 Prairie Place 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. Business services, trade, and financial service industries are projected to drive growth.

At the time of acquisition the property was 88% occupied. A capital appreciation investment profile; Prairie Place is situated 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 Prairie Place 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.