SCOTCH CREEK APTS

Refinancing risk is elevated due to loan maturity within 13 months. The $65.0M loan originated 11/30/2017 on a 156-month term matures 11/30/2024, creating immediate refinancing pressure at current rate environment. Leverage of $507.8K per unit (65M ÷ 128 units) against a $189.1K per-unit appraised value signals aggressive capital structure; without current DSCR or rate data, refinance viability is uncertain. The ownership chain shows no distress signals—a single entity has held the asset cleanly for 8.3 years with one prior 2017 acquisition, indicating a stabilized hold rather than a flip strategy, but the maturing debt and no visible refinance activity warrant immediate clarification on lender stance and exit plans.

Scotch Creek is a 128-unit garden-style apartment built in 2012 with brick exterior and wood frame construction across three stories, totaling 103.1K SF. The property carries an "Excellent" quality and condition rating. The asset is located in Dallas with a walk score of 25, indicating car-dependent surroundings; parking type is not specified in available data. No amenity details, utility inclusions, or pet policies are documented in the record.

Affluent renter market with strong affordability fundamentals, but geographic income compression signals suburban positioning. The 1-mile radius exhibits a pronounced high-income skew (61.7% earning $100K+) with median household income of $137.6K and 74.7% renter concentration—indicating dense demand from upper-income renters. However, the 3-mile median income drops to $129.0K and renter occupancy falls to 54.8%, suggesting the property sits on the periphery of a higher-income urban core rather than within it. Across all three rings, affordability ratios cluster tightly (16.7–18.2%), implying stable rent support; critically, the 1-mile cohort's 33.0% $150K+ income bracket provides pricing power and low lease-up risk. Prime renter age data is absent, limiting demand trend assessment.

Appraisal History & Valuation

Scotch Creek's $24.2M valuation (2025) reflects a 6.7% year-over-year gain, translating to $189.1K per unit—consistent with stabilized product in Dallas's tier-2 submarkets. Land represents only 8.4% of total value ($2.0M), indicating minimal redevelopment upside; the 2012 vintage and 91.6% improvement ratio suggest the asset is locked into its current footprint with limited feasibility for density or repositioning. Without prior appraisals, trend direction cannot be assessed, but the modest YoY appreciation signals neither distress nor outsized market repricing.

Review data is too sparse to inform investment decision. With only 2 reviews total—one five-year-old 5-star and one recent 1-star with no text—the 3.0 aggregate rating lacks statistical reliability and provides zero visibility into operational performance or resident satisfaction drivers. The 5-year gap between reviews and absence of narrative detail in either submission prevents trend analysis or root-cause diagnosis of the recent negative rating. Recommend conducting on-site management interviews and requesting direct resident feedback before underwriting.