CityParc at Keller

Fort Worth Apartment Complex Yields High Returns Despite National Recession

About the Property

  • Year Built: 2007
  • Total Units: 312
  • Class: A Development
  • Cost: $26.9 Million

Opportunity

CityParc at Keller is a Class A ground-up development located in a highly desirable Dallas/Fort Worth Metroplex suburb with strong demand-driving fundamentals. With Texas leading the nation in economic growth and DFW serving as the financial and professional hub of the Southwest, the expected returns on the project exceeded 20% at the time of acquisition.

Execution

We partnered with an institutional-quality European equity partner to quickly execute the development and construction. As the project was nearing completion in late 2007, the national economy began to show signs of distress. We remained confident that the fundamentals identified in the market would weather the storm, supplemented by superior marketing and leasing efforts and micro expense control.

Result

Not only was the project completed well below the estimated cost, the execution of CityParc at Keller is a case study for managing downside risk in the face of economic hardship. Despite entering lease-up in the heart of the 2008 recession, the project exceeded the hurdle rate and delivered 2x multiple to investors upon exit in 2014.