Starting in 2014, Advalurem acquired a large ownership interest in Bella Madera, a 612-unit garden-style apartment community located in Lewisville, TX. The Property features distinctive ‘Tuscan’ architecture and offers resort-style amenities. Advalurem initially provided the partnership with JV equity to acquire the property and in the subsequent year, provided follow-on preferred equity to buyout a partner.
The property, located in northern Dallas, is less than 2 miles from significant demand drivers, including Toyota’s new North American Headquarters, JPMorgan Chase’s new office campus, and Berkshire Hathaway’s Nebraska Furniture Mart. The Property’s immediate area, which includes neighboring towns of The Colony and Carrollton, have been named by Money as one of America’s “Best Places to Live.”
The business plan calls for increasing cash flow over a five year holding period through improving operations, upgrading select units, as well as drafting off strong demand fundamentals. Advalurem structured its investment as preferred equity and common equity within the same partnership capitalization. Advalurem retained key partnership rights providing a path for early liquidation and approval over certain management decisions. Advalurem expects to hold the investment for seven years with an overall return in the mid-teens.