Living Oaks
Acquired May 2025
10.65M Purchase Price
4.35M Equity Raised
The Asset Story
When we first walked into Living Oaks, we were impressed by how well the property had been cared for, especially for a community built in 1985. The owner had held this 101-unit asset for more than 25 years and ran it with pride, resulting in virtually no deferred maintenance and a property that was already operating smoothly. As he looked to move on to larger assets, it created a rare opportunity to acquire a well-run community at an attractive basis from a seller who prioritized certainty of close over top-of-market pricing.
The value-add opportunity wasn’t about fixing problems; it was about catching up to the market. Rents were well below comparable properties, utilities were not being consistently passed through to tenants, and roughly 70% of the units presented an opportunity for thoughtful upgrades with a more modern aesthetic. We believed rents could move to market relatively quickly through disciplined execution and premium unit renovations.
Beyond the asset itself, the location stood out. Living Oaks is tucked into a quiet, peaceful neighborhood in Red Oak, surrounded by strong single-family communities, good schools, and a limited supply pipeline with no new multifamily construction coming online. With convenient access to Dallas via major highways, nearby shopping and dining, and a calm residential setting that attracts long-term tenants, the property offered both stability and upside.
Value Add Strategy
Aligning in-place rents with market levels while driving long-term rent growth in a supply-constrained submarket
Premium upgrades to approximately 70% of units
Meaningful NOI improvement through utility reimbursements and water-efficiency initiatives
Why This Acquisition
Target ~18% IRR over the hold period
2.0x+ equity multiple assuming a five-year exit
Fixed-rate financing with built-in flexibility for a cash-out refinance in Year 3 that would return ~50% of invested capital