Case Study- Forum at Grand Prairie
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Forum at Grand Prairie
(Midwest Multifamily)
Prevail Alternative Assets is pleased to announce the Forum at Grand Prairie—a promising multifamily acquisition opportunity located in Grand Prairie, TX. This investment presents a unique chance for long-term ownership with significant upside potential.
The Forum at Grand Prairie is ideally situated in a well-established suburban area with quality schools and offers convenient access to both Dallas and Fort Worth, enhancing employment opportunities.
Our partner, ClearWorth Capital, specializes in revitalizing and repositioning underperforming multifamily real estate assets through strategic physical improvements and operational enhancements.
If you have any questions, please reach out to your advisor or contact Regan Smith at rsmith@prevailiws.com
Investor Return Summary*
- Class A – $500,000 per Share
- 19% LP Net IRR Target
- 2.30x Equity Multiple Target
- 8.50% Cash Yield (Stabilized)
- Class B – $200,000 per Share
- 19% LP Net IRR Target
- 2.30x Equity Multiple Target
- 8.50% Cash Yield (Stabilized)
- Class B – $100,000 per Share
- 19% LP Net IRR Target
- 2.30x Equity Multiple Target
- 8.50% Cash Yield (Stabilized)
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Investment Snapshot
- Total Project Cost – $55,058,084
- Senior Loan – $31,850,000
- 57.9% Loan-to-Cost
- 5.90% Fixed Rate
- LP Equity – $20,860,275
- Prevail Equity – $6,000,000
- GP Equity – $2,317,808
Property Information
- Our acquisition price is approximately 32% lower than recent comparable trades, both on a price per unit and price per square foot basis. This strong positioning, combined with an underwritten cap rate of around 5.75%, makes this investment particularly attractive due to its low initial cost and potential for significant upside.
- The property’s exterior, unit interiors, and branding are poised for a significant transformation, shifting from an average or below-average state to one that resonates with residents, thereby leading to heightened rental rates.
- The Forum was constructed in 2006 and is an attractive property situated in a secure, family-friendly neighborhood. It is located in a market with strong fundamentals and close to major employers, all indicating a bright future for this asset.
- The Dallas-Fort Worth area saw an influx of 150,000 people over the past year, bringing the population to over 8.1 million according to the U.S. Census Bureau. Additionally, CoStar predicts that population growth within a 1-mile radius of the Forum at Grand Prairie will continue at a rate of 3% annually through 2028, indicating a robust and growing market for renters.
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*These are all preliminary estimates, with no guarantee of performance, and involve risk.