244 Unit LIHTC Affordable Community Very Well Located in Dallas-Ft. Worth Metroplex
Market-Rate Reposition in 2025 With Current Market Rent Delta of $257
In-Place Rents 15% Below Newly Released 2019 Net Max LIHTC Rents Creating Opportunity to Immediately Grow NOI
Well-Maintained Asset with Significant Capital Improvements by Current Owner
The Berkadia Investment Sales team is pleased to present the 244-unit Estrada affordable LIHTC community, boasting well-proportioned one, two, and three-bedroom floorplans averaging 836 square feet. Estrada is located within the Carrollton/Farmer’s Branch submarket and has exhibited strong fundamental trends since 2014 with vacancy currently averaging 5.6%. Estrada’s location offers it excellent connectivity to many of Dallas-Fort Worth's major employment and retail hubs, including the Platinum Corridor, Midtown, and Legacy West. The property is located within a 5-minute drive from four of Dallas’ major thoroughfares - Interstate 35E, the Dallas North Tollway, Interstate 635, and the George Bush Turnpike, providing convenient access to nearly any Dallas-Fort Worth major employment center.
Built in 1969 and substantially renovated in 1995 with Section 42 Low-Income Housing Tax Credits (LIHTC), the subject is positioned to benefit from a market-rate conversion upon the expiration of the extended-use period in 2025. In addition to its tax credit potential, Estrada offers multiple opportunities to substantially increase NOI in the interim as current in-place rents are 8% below net max LITHC rents. Market rents across all comparable market-rate properties in the submarket are average $1,133, creating a $257 rent premium upon conversion to market-rate at the end of the extended-use period representing a potential 30% increase in income.
Additionally, current ownership deployed over $1,375,000 in capital improvements which include but are not limited to new roofs, new parking overlay, electric panel upgrades, and other items providing an investor an opportunity to acquire a well-maintained asset with no deferred maintenance.
Average Unit SF
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