Bonita Gardens Apartments 3410 Fordham Rd

Summary:
The Multifamily Group is pleased to present Bonita Gardens, a unique, value-add opportunity in Dallas, Texas. Constructed in 1974, the property consists of 136 units averaging 732 square feet. The property offers one and two-bedroom floorplans. 79% of the units (108) are two-bedrooms. The property is currently 92% occupied matching the occupancy rates of 92% in the Dallas-Cedar Crest submarket (Yardi). There are around 50 units that are receiving assistance through local housing authorities. Effective rent growth for the Southeastern Dallas submarket is at 6.4% year-over-year (Yardi). The U.S. Census Bureau shows that 58% of Dallas’ population are renters. Bonita Gardens is being offered free and clear of existing debt.
Value-Add:
Rents on the two-bedroom units are $124/unit/month under the area market rate and can be increased with renovations. The renovations are estimated to be $1,500 for the 108 units and would cost a total of $162,000. This would bring an added revenue stream of $5,400/month and $64,800/year with a capitalized value of $925,714 on a 7% exit cap.
Location:
Less than 7-miles to downtown Dallas, with easy access to I-45, TX Hwy-175, and Loop-12 makes this area highly sought after. Bonita Gardens has a great level of visibility off Fordham Road with more than 18,800 vehicles passing by per day. The property is within walking distance of two convenience stores and two city parks. The K-12 schools are a quick drive 1.5 to 3-miles away. Paul Quinn College is less than 4-miles away. There is a new retail center planned just 3-miles from the asset bringing new stores and Frost Bank. The Dallas Zoo, which was approved for $100MM in renovations, and the planned engineering marvel over I-35, Southern Gateway Park, are less than 5-miles away. The American Growth Project ranked Dallas as the 5th fastest-growing city in 2022 considering several factors including GDP and population growth. The U.S. Census Bureau counted 1,304,379 residents in Dallas, Texas in 2020. The metroplex saw 6.5% job growth in the year ending in October 2022, while LA and New York saw 4.3%, according to the latest DFW Resiliency report. DFW is estimated to have grown by another 120,000 people during the pandemic. Amazon, Walmart, Dart Container Corp., Dolco Packaging, Procter and Gamble, and DXP Enterprises Inc. have sprawling warehouses in DFW. Dallas is a continually growing city with six Fortune 500 companies that have relocated here in the last six years.