RIDGE PARC PHASE II-TE

The property exhibits distress signals warranting caution: the current owner (Dallas Housing Authority) acquired it in 2010 at an opaque transaction, then immediately took out a $6.0M HUD 223(f) refinance—suggesting the purchase may have been distressed or the authority was capitalizing on below-market acquisition pricing. The $21.76M appraised value against a $7.23M estimated sale price indicates a 66.8% valuation gap, signaling either severe condition issues, income underperformance, or appraisal inflation. With only $46.9K loan per unit on a property showing 16+ years of single-ownership (public housing authority), the low leverage is atypical for PE; the 2051 maturity removes near-term refinancing pressure, but the $312.6K annual debt service on a $7.2M sale price (4.3% ratio) suggests minimal debt service capacity relative to property value distress. This is a subsidy-dependent or troubled asset held for mission rather than yield.

Ridge Parc Phase II-TE is a 128-unit, 2-story garden-style apartment community built in 2005 with brick exterior and wood-frame construction, totaling 110.1K SF gross area. The property is classed as GOOD condition with 107.9K SF net leasable area, implying roughly 843 SF per unit. Located in Dallas with a Walk Score of 11, the asset is car-dependent with no specified parking details; the 3.4 Google rating and absent amenity data suggest an aging, conventionally positioned B-class product. No utility inclusions or pet policy details are disclosed.

Affordability and Income Profile
The 1-mile radius shows a pronounced affluent skew—64.6% of households earn $75K+, with a 24.4% affordability ratio that signals pricing discipline relative to local incomes. However, this tight ring (7.2K population, 2.4K households) likely underrepresents the true addressable market; the 3-mile radius reveals a broader income spread with meaningful depth in the $100K–$150K cohort (20.0%) and strengthens the case for stable, rent-paying demand.

Renter Concentration and Market Depth
Renter concentration climbs materially from 26.7% (1-mile) to 43.8% (5-mile), signaling that the property sits in an increasingly renter-dense suburban ring rather than an owner-dominated urban core. This 17.1-point spread suggests sufficient rental demand at scale, though the 1-mile pocket skews owner-occupied—a minor headwind for unit absorption but offset by the larger 3- and 5-mile markets.

Demand Risk: Income Gradient
Median household income declines 10.0% moving from 1-mile ($83.2K) to 5-mile ($75.1K), while lower-income tiers ($50K–$75K) become proportionally larger. The affordability ratio deteriorates slightly to 25.3% at 5 miles, indicating that the broader trade area relies on middle-income renters with less pricing cushion—a consideration if economic headwinds hit wage growth.

Appraisal Snapshot – Limited Data; Minimal Recent Movement

The property carries a single 2025 appraisal of $21.8M ($170.3K/unit) with flat YoY appreciation at 0.0%, suggesting market stasis or recent downward pressure that the appraiser has locked in horizontally. The land represents only 2.0% of total value ($439.7K), with improvements accounting for $21.3M—a capital-heavy structure typical of stabilized 2005-era construction that offers limited near-term redevelopment optionality. Without prior-year appraisals in the dataset, we cannot assess whether this flat reading masks a recent correction or reflects genuine market equilibrium; request historical appraisal rolls to confirm trend direction.