The Greens of Fossil Creek
5960 Travertine Lane, Fort Worth, TX 76137 · 288 Units · 2008 Vintage
Consumer First Capital Partners is pleased to present the opportunity to acquire The Greens of Fossil Creek (the “Property” or “Fossil Creek”), a 288-unit, institutional-quality apartment community in the North Fort Worth, Texas submarket. Fossil Creek features multiple floor plans consisting of one- and two-bedroom units. With in-place rents at a meaningful discount to newer competitors, Fossil Creek offers a clear opportunity to grow revenue through a targeted value-add program, resetting its 2008-vintage interiors to compete with newer, top-of-market properties.
Attractive Basis
2008-Vintage Interiors
Significant Rent vs. Own Gap
Business Plan & Renovation
The business plan is to renovate 75% of the units at the Property through an interior enhancement program that includes updated cabinetry, appliances, flooring, paint, lighting, fixtures, and backsplash.
Debt & Capital Structure
The acquisition is underwritten with moderate leverage, and debt-service coverage consistent with lender requirements. Targeted financing assumes floating-rate debt priced at a spread over SOFR.
Investment Rationale
Current rents are at a significant discount below the competitive set average. A five-year hold provides time to execute the renovation plan, season NOI growth and realize value for the limited partners to bridge the cap between newer assets across the competitive set.
Discount to Replacement Cost
Estimated replacement cost per unit represents a significant premium to the targeted acquisition price, creating a meaningful barrier to competing new supply.
Limited Future Supply Amid Population Growth
Year-to-date, demand has outpaced supply in the North Fort Worth, with only one delivery within three miles of Fossil Creek. No additional units are under construction within three miles, while population within one mile is projected to grow 6.0% through 2030.
Rent vs. Own Affordability Gap
Estimated monthly homeownership costs of represents a 52% discount to owning, resulting in many residents being priced out of the "for-sale" housing market.
Interested in this offering?
This presentation has been prepared by Consumer First Capital Partners (“CFCP”) solely for informational and discussion purposes. The information contained herein is preliminary, is subject to change without notice, and does not constitute an offer to sell or a solicitation of an offer to buy any security, investment interest, or other financial product. Any offer or solicitation will be made only pursuant to definitive offering documents and in accordance with applicable securities laws.
Certain statements contained in this presentation may constitute forward-looking statements, including statements regarding CFCP's investment strategy, market conditions, anticipated investment opportunities, distributions, returns, and the future growth or performance of CFCP. Forward-looking statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties. Actual results may differ materially from those expressed or implied.
Any target, projected, illustrative, or hypothetical returns, including internal rates of return (“IRR”), multiples of invested capital (“MOIC”), cash distributions, cash yields, or other performance metrics, are presented for illustrative purposes only and are not guarantees of future performance. There can be no assurance that any investment objective or target will be achieved. Past performance, including the prior experience of CFCP's principals or partners, is not indicative of future performance.
Investments in private real estate and private investment vehicles involve substantial risk, including the possible loss of some or all invested capital. Such investments may be illiquid and subject to market volatility, interest rate risk, financing risk, construction and renovation risk, operational risk, regulatory risk, and other factors outside of CFCP's control. Prospective investors should conduct their own independent due diligence and consult with their legal, tax, accounting, and financial advisors before making any investment decision.
Certain information contained in this presentation has been obtained from third-party sources believed to be reliable; however, CFCP has not independently verified all such information and makes no representation or warranty as to its accuracy or completeness. Any opinions or views expressed are those of CFCP as of the date of this presentation and are subject to change without notice.
The offering described herein is intended to be conducted pursuant to Rule 506(c) of Regulation D and is available only to accredited investors, subject to the terms and conditions of the definitive offering documents and applicable securities laws. Prospective investors should review the Private Placement Memorandum, subscription documents, and other definitive materials before making an investment decision.