Property Details
Stabilized Cashflow  Below Market Rents  NOI Growth 
Asset Profile
Value Add

The Jaxon Apartment Homes

Arlington, TX

Multi-Family Property
CAF Capital Frisco, TX
CAF Capital
  • IRR 17.3-18.1%
  • Equity Multiple 1.6-2.1x
  • Hold Period 3-5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 1.29%
  • Stabilized Cash on Cash 4.8% Y2
  • First Distribution Oct 2022
  • Distribution Frequency Monthly
  • Co-Investment 4.5% ($870K)
  • Preferred Return 11%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 62.8%
  • Current Occupancy 93%

About this Property

"DFW Multifamily Value-Add Acquired Off Market Appraised $3M Higher than Purchase Price with Proven Upgrade and Operational Upside"

-Jeremy Thomason, CAF Capital

Property Address 2502 Burney Oaks Lane
# Units 240
Year Built 1984
Year Renovated N/A
Square Footage 190,540 sq. ft.
Current Occupancy 93%
Market Occupancy 95%
Current Average Rents $1,145
Average Market Rents $1,338
Purchase Price $41,500,000
Price/Sq. Ft. $217.80/Sq. Ft.

Top Questions

All answers are provided by the sponsor, CAF Capital, or its representatives.

What are you buying this property?

Jeremy Thomason, CAF Capital: "CAF looks for high quality assets in great locations. The Jaxon is just that. Centrally located in the heart of DFW, the Jaxon was built in 1984 and is 240 units."

"This opportunity was brought to CAF off market through broker relationships. During evaluation, the CAF team uncovered an asset that had been well maintained, is achieving double digit lease tradeouts, and still had plenty of value to capture through unit upgrades."

"Having a proven renovation program that CAF has implemented in dozens of deals across this MSA and proven premiums by the previous owner gives them extreme confidence in executing their business plan."

 

What are the most important aspects of this investment opportunity for the investors?

Jeremy Thomason, CAF Capital: "First and foremost, this opportunity was closed by CAF Capital on August 15th, 2022. Since this is a closed deal, with a portion of equity being backraised--this presents a unique and uncommon opportunity. This removes any transactional execution risks that passive investors face in today's market."

  • Value-Add Opportunity: The Jaxon offers tremendous opportunity for CAF to implement a value add program consisting of Unit upgrades, management improvements, and Other Income Opportunities.”
  • Off Market Acquisition: This investment opportunity was sourced by CAF's Acquisitions team through their relationships with a local brokerage team. Without it being widely advertised, CAF Capital was able to acquire at a more attractive basis.”
  • Location: CAF's team is bullish on this location in North Arlington less than a mile from major highways (Highway 360 and I-30). This location has ease of access to Arlington Entertainment District (AT&T Stadium, Texas Live, Globe Life Ballpark).”
  • Expertise in DFW: CAF Management manages over 30 properties in DFW. This is extraordinary scale in one particular MSA. The CAF team's in depth knowledge and experience into this market give us extreme confidence in the Jaxon value add business plan.”

 

What is your investment strategy/business plan?

Jeremy Thomason, CAF Capital: "CAF's business plan consists of the following:"

"Unit Upgrades: CAF plans to upgrade 87 units (36%) to achieve a $200/unit premium. This upgrade is considered a light value add where they'll update to Stainless Steel appliances, new cabinet fronts, quartz countertops, kitchen backsplash and faux wood flooring. This is a proven renovation scope that CAF has implemented many times."

"Other Income Opportunities: CAF plans to add washer dryer units to 144 units for a $50 premium and add 20 pet yards for $125/premium. Each of these items are proven--CAF has executed this with similar properties many times."

"Exterior Capex: CAF's team has scoped all costs and is budgeting an additional $1.6M for exterior renovations and amenity improvements. This includes landscaping, gate repairs, foundation repairs, improve lighting to name a few. They have a team of experts that conduct diligence and collect bids from various vendors to complete desired work."

"Financing: CAF strategically sourced bank debt that will pay for future capex and have mitigated interest rate risk by purchasing a cap. Their underwriting projects to hit the cap immediately thereby eliminating any volatility investors could experience in cash flow."

"Hold Period: CAF is advertising this as a 3-5 year projected hold, however many aspects of this business plan lean towards it being a 3 year hold. The interest rate cap is for 3 years, the IO period is 3 years, the step down pre-payment penalty goes to 3 years. CAF will work hard on executing the business plan and periodically evaluate the market and determine the opportune exit."

 

What are the risks and how are you mitigating those risks?

Jeremy Thomason, CAF Capital: "Investing in Multifamily comes with a variety of risks most notably.. operational risks."

"By having in house property management, CAF is able to mitigate many of these risks and have clear insight into each property's performance. CAF Capital has instant communication, control, and ground level insights with CAF Management. Their team has precise knowledge on costs--which allow for high degree of confidence in their assumptions and proforma."

"For this deal, CAF has worked hard to de-risk theirselves from the capital markets risk that is on the mind of many investors. They've purchased an interest rate cap essentially fixing their floating rate, yet still maintaining a step down pre-payment penalty. Much of the risk is associated with the pricing volatility with interest rate caps right now. Since this deal is already closed---CAF has this number solidified and are not subject to that number rising."

 

NOTE: All answers provided by the sponsor, CAF Capital, or its representatives.

About this Property

"DFW Multifamily Value-Add Acquired Off Market Appraised $3M Higher than Purchase Price with Proven Upgrade and Operational Upside"

-Jeremy Thomason, CAF Capital

Property Address 2502 Burney Oaks Lane
# Units 240
Year Built 1984
Year Renovated N/A
Square Footage 190,540 sq. ft.
Current Occupancy 93%
Market Occupancy 95%
Current Average Rents $1,145
Average Market Rents $1,338
Purchase Price $41,500,000
Price/Sq. Ft. $217.80/Sq. Ft.

Top Questions

All answers are provided by the sponsor, CAF Capital, or its representatives.

What are you buying this property?

Jeremy Thomason, CAF Capital: "CAF looks for high quality assets in great locations. The Jaxon is just that. Centrally located in the heart of DFW, the Jaxon was built in 1984 and is 240 units."

"This opportunity was brought to CAF off market through broker relationships. During evaluation, the CAF team uncovered an asset that had been well maintained, is achieving double digit lease tradeouts, and still had plenty of value to capture through unit upgrades."

"Having a proven renovation program that CAF has implemented in dozens of deals across this MSA and proven premiums by the previous owner gives them extreme confidence in executing their business plan."

 

What are the most important aspects of this investment opportunity for the investors?

Jeremy Thomason, CAF Capital: "First and foremost, this opportunity was closed by CAF Capital on August 15th, 2022. Since this is a closed deal, with a portion of equity being backraised--this presents a unique and uncommon opportunity. This removes any transactional execution risks that passive investors face in today's market."

  • Value-Add Opportunity: The Jaxon offers tremendous opportunity for CAF to implement a value add program consisting of Unit upgrades, management improvements, and Other Income Opportunities.”
  • Off Market Acquisition: This investment opportunity was sourced by CAF's Acquisitions team through their relationships with a local brokerage team. Without it being widely advertised, CAF Capital was able to acquire at a more attractive basis.”
  • Location: CAF's team is bullish on this location in North Arlington less than a mile from major highways (Highway 360 and I-30). This location has ease of access to Arlington Entertainment District (AT&T Stadium, Texas Live, Globe Life Ballpark).”
  • Expertise in DFW: CAF Management manages over 30 properties in DFW. This is extraordinary scale in one particular MSA. The CAF team's in depth knowledge and experience into this market give us extreme confidence in the Jaxon value add business plan.”

 

What is your investment strategy/business plan?

Jeremy Thomason, CAF Capital: "CAF's business plan consists of the following:"

"Unit Upgrades: CAF plans to upgrade 87 units (36%) to achieve a $200/unit premium. This upgrade is considered a light value add where they'll update to Stainless Steel appliances, new cabinet fronts, quartz countertops, kitchen backsplash and faux wood flooring. This is a proven renovation scope that CAF has implemented many times."

"Other Income Opportunities: CAF plans to add washer dryer units to 144 units for a $50 premium and add 20 pet yards for $125/premium. Each of these items are proven--CAF has executed this with similar properties many times."

"Exterior Capex: CAF's team has scoped all costs and is budgeting an additional $1.6M for exterior renovations and amenity improvements. This includes landscaping, gate repairs, foundation repairs, improve lighting to name a few. They have a team of experts that conduct diligence and collect bids from various vendors to complete desired work."

"Financing: CAF strategically sourced bank debt that will pay for future capex and have mitigated interest rate risk by purchasing a cap. Their underwriting projects to hit the cap immediately thereby eliminating any volatility investors could experience in cash flow."

"Hold Period: CAF is advertising this as a 3-5 year projected hold, however many aspects of this business plan lean towards it being a 3 year hold. The interest rate cap is for 3 years, the IO period is 3 years, the step down pre-payment penalty goes to 3 years. CAF will work hard on executing the business plan and periodically evaluate the market and determine the opportune exit."

 

What are the risks and how are you mitigating those risks?

Jeremy Thomason, CAF Capital: "Investing in Multifamily comes with a variety of risks most notably.. operational risks."

"By having in house property management, CAF is able to mitigate many of these risks and have clear insight into each property's performance. CAF Capital has instant communication, control, and ground level insights with CAF Management. Their team has precise knowledge on costs--which allow for high degree of confidence in their assumptions and proforma."

"For this deal, CAF has worked hard to de-risk theirselves from the capital markets risk that is on the mind of many investors. They've purchased an interest rate cap essentially fixing their floating rate, yet still maintaining a step down pre-payment penalty. Much of the risk is associated with the pricing volatility with interest rate caps right now. Since this deal is already closed---CAF has this number solidified and are not subject to that number rising."

 

NOTE: All answers provided by the sponsor, CAF Capital, or its representatives.

Offered By

CAF Capital

CAF Capital

Frisco, TX

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Assets Under
Management

Currently
$2.25B No assets reported
Exited
$922.7MM 30+ assets
Portfolio LTV
57.3%  
Historical
Realized Returns

Total IRR
22.5%  
Equity Multiple
1.8x  
Annual Cash
N/R  
Years Of
Experience

As Principals
10+ years  
In Business
11 years  
Size
60 Staff * Dedicated investor relations
* All information is reported by CAF Capital as of 9/12/2022.
Assets Under
Management

Currently
$2.25B No assets reported
Exited
$922.7MM 30+ assets
Portfolio LTV
57.3%  
Historical
Returns

Total IRR
22.5%  
Equity Multiple
1.8x  
Annual Cash
N/R  
Years Of
Experience

As Principals
10+ years  
In Business
11 years  
Size
60 Staff * Dedicated investor relations
* All information is reported by CAF Capital as of 9/12/2022.

Financials

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Offering Financial

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Location Details

Arlington, TX

Jeremy Thomason, CAF Capital: "Jaxon Apartment Homes is situated in North Arlington which is dead center of the DFW metroplex. As a company, CAF particularly likes the DFW market because of the backyard nature as CAF has owned and operated in this market for over 10 years. The CAF Management team currently manages over 30 properties in DFW."

"DFW continues to be one of the best markets in the country for it's investor friendly tenant/landlord laws, incredible corporate relocation/job growth, and corresponding rent growth."

"The Jaxon sits about a mile north of I-30 which travels East to West that feeds into Dallas and Forth Worth Respectively. With this location the Jaxon is 25 mins from Dallas, 30 mins from Downtown Forth Worth, and 15 mins south of DFW International Airport."

"If you zoom in further, the Jaxon is is an ideal location for its proximity to the Entertainment district of Arlington. Access to AT&T Stadium, Globe Life Field, Texas Live, and Six Flags over Texas are all within a five minute drive."

Documents

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Offering Agreement Documents

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