case study

Customizing improvement plans across a large portfolio

DFW 5 Portfolio
Dallas, Texas

After assessing the region’s tremendous job and income growth forecast, Balfour Beatty Communities seized on the opportunity to acquire a five-property portfolio in the Dallas market totaling 1,598 units. The assets were acquired in June 2015 and conveniently located near downtown Dallas, Fort Worth, Carrollton, Arlington, and Plano. Given the region’s diverse renter population, we knew it was critical to customize a portfolio improvement plan that would orient each asset for maximum success in its respective submarket. A repositioning program was developed and implemented specific to each asset including unit interior renovations and amenity enhancements. Select features were identified for each asset for significant unit renovations including upgraded countertops, refinished cabinetry with hardware, tile backsplashes, stainless steel appliances, new flooring and lighting, plumbing fixtures, and new HVAC units.

After continuous evaluation of the portfolio’s performance and the economic environment of the Dallas market, we determined that the optimum opportunity for disposition was attainable even sooner than our projected 5-year hold. Upon disposition, the portfolio investment yielded an IRR of 22% in 3.5 years.

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Before and After

in 3.5 years