Advalurem Group is pleased to announce the acquisition of ownership interest in Bella Madera, a 612-unit, Class A, garden-style apartment community located in the growing Dallas submarket of Lewisville, Texas.
The apartment community was built in 2009 and is currently 91% occupied. It features distinctive ‘Tuscan’ architecture and offers resort-style amenities including a well-appointed clubhouse, upscale fitness center, and multiple cascading pools. It is in close proximity to significant job demand drivers including the prominent business parks of Legacy in Plano and Las Colinas in Irving. The property’s immediate area, which includes neighboring towns of The Colony and Carrollton, were previously named by Money magazine as one of America’s “Best Places to Live.”
Bella Madera was purchased in an off-market transaction, as Advalurem Group’s local partner was offered the opportunity after closing another sale with the owner, a regional merchant builder. In addition, value was created by assuming an existing long-term loan that was restricted from early repayment. The confluence of events resulted in a material price reduction and will go toward generating value-added returns without having to rely heavily on asset appreciation.
The strategy is to enhance cash flow through optimal revenue management and to provide institutional management until the end of the loan term, when the property can be sold unencumbered to unlock the equity value that was gained at closing. The investment is projected to generate compelling risk-adjust returns for investors.
Advalurem Group is a real estate investment firm that specializes in providing equity for middle-market commercial real estate. The firm targets moderately sized real estate investments through joint venture structures and aims to become the leading equity source for this market segment. The group invests across all major property sectors and along the risk/return spectrum with an emphasis on core-plus and value-added strategies. Advalurem Group is managed by investment professionals who have extensive real estate private equity and investment management experience. The firm is based in New York.
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