McKinney, TX

mckinney

Overview

Purchase Price:: $2,600,000
Total Project Cost: $24,000,000
Equity Required: $4,800,000
Development Timeline: 2 years
Estimated Project Value: $34,000,000
Projected Return: 1.8 x Multiple
Purchase Date: 10/29/2019

Opportunity

Approximately 13.2 acres of vacant land  in McKinney, Texas were acquired on October 29, 2019, for the development of a horizontal multifamily community. The initial site plan consists of 124 units, with a unit mix of one, two- and three-bedroom units. Amenities at this community will include a dog park, bocce ball court, resort style pool, spa, BBQ grills, playground, valet trash pickup and walking trails throughout common space. The units range in size from 702 to 1,567 sq.ft. Each unit is outfitted with in-unit washer and dryer, granite countertops, stainless steel appliances, a private backyard enclosed by a wooden fence, dog doors and modern finishes throughout. In addition, most units have private attached garages.

Since acquiring the land, we have been working with the City of McKinney to rezone the property in order to modernize the current archaic zoning. We continue to work with our team of engineers, designers, and consultants to fine tune and maximize the opportunity.  Construction is expected to begin in Q2-2020 and we anticipate completion within twelve (12) months. The property is being developed with the expectation of holding the asset long term with a refinance into permanent debt after construction concludes. However, a final decision on exit strategy will be made at the end of construction, depending on market conditions at that time. If the timing and conditions point to a sale as a more logical and profitable solution for our investors we’ll capitalize on the opportunity by selling the asset.