CHRONOS

PROPERTY INFORMATION

SUMMARY

BRIEF DESCRIPTION

The Chronos Portfolio represents an attractive, off-market opportunity to acquire and reposition a very well-located but undermanaged portfolio in WindMass’ targeted Dallas submarkets

OVERVIEW

Five well designed, class A properties built between 2002 and 2008 in prime locations with excellent amenities
High occupancy complexes that are currently achieving $119 rent increases (9.8%) on new leases, despite weak management and lack of renovations
Undermanaged and under-invested assets in WindMass’ target submarkets in the DFW area
Large unit sizes and favorable unit mix consisting of townhouse-style units and 50% two-bedroom units that will enable substantial rent increases once renovated
Upside from executing our proven WindMass playbook including renovation, rent optimization, and expense management
Off market deal driven by dissatisfied equity partners of seller at an attractive basis of $189k per unit, well below comparables
Compelling gross IRR of 26% and 3x MOIC

BUSINESS PLAN

WMC will upgrade management and implement a property improvement plan to tap demand for updated and amenitized apartments in Dallas/Fort Worth as we have done successfully in prior investments.

Active Asset Management: The Current owner self manages and has not spent adequate time or capital on marketing, property aesthetics, or building a capable management team. The Portfolio exteriors are in good condition but will benefit from landscaping and improved signage. Due to weak management, rents have lagged, which WMC will rectify.
Property Management: Indio Management, a fully-integrated property manager, with; in-house accounting, IT, human resources, maintenance, management, bookkeeping, leasing and marketing departments, and with over 300 full time employees. This allows WMC to focus exclusively on acquisitions and asset management. Indio has also reviewed leasing forecasts and agrees with WMC's projections. Furthermore, Indio's CEO, Seth Bame, is on the advisory board for WMC and part of the GP group. Indio manages all WMC's properties, and WMC owns a portion of Indio.
Renovations: The interior of the units look "tired" due to a lack of updates. WMC will spend approximately $10.7mm (10,000 per unit) in capital improvements including; faux wood floors, baseboard and ceiling trim, in-unit laundry improvements (water and ventilation connections already installed), installation of black and stainless kitchen appliance packages, kitchen cabinets and counter tops replaced, bathroom updates (low flow toilets), fixtures, LED can-lighting and hardware updates. WMC also intends to landscape the Portfolio, fix exterior issues and place back lit signage at the entrance to improve curb appeal.
Parking and Laundry: The Sponsor will begin charging $50 for already existing garages and covered parking spaces. Few competitive properties offer this much covered parking or garages. In addition, every unit across the entire portfolio has washer and dryer connections. WMC will install W/D packages in the remaining units (approximately 20% already installed) and charge a $35-$50 premium to tenants as an add on to rent.
Rebranding: The Portfolio will benefit from rebranding and is discussing with the Indio's marketing team. The Portfolio will also be marketed on major apartment websites, Indio's platform, as well as individual websites for each property.

REAL ESTATE FOR PORTFOLIO INVESTORS

We are actively looking for interested investors. You may qualify to invest with us as either an accredited or sophisticated investor according to SEC guidelines. Click the “Start Investing” button below to fill out our investor form and find out if you qualify to join our multifamily investment team.