This 2024-built, 176-unit asset carries no recorded debt, which is unusual for a newly constructed multifamily property and suggests either full equity ownership or off-record financing. The absentee corporate owner (ABE I HERSHMAN) has held the property for 22 years across only 3 transactions—a long-term hold pattern inconsistent with value-add or opportunistic PE strategies, though the initial acquisition at $25K in 2004 followed by construction financing in 2006 indicates original development. Without current loan data, DSCR and refinancing risk cannot be assessed, but the absence of debt may reflect either strong operational cash flow supporting full payoff or a non-recourse structure not captured in this filing. The lack of distress signals in the deed chain argues against motivated-seller dynamics driven by maturity or leverage pressure.

Key Takeaway: This 2024 Class A asset is priced as a stabilized core property, not value-add, but the 7.8% implied cap rate sits 270 bps above the Dallas submarket's 5.1% average—indicating either below-market fundamentals or an acquisition discount relative to comparable new construction.

At $9.2K NOI per unit, this property underperforms the typical Dallas Class A benchmark (typically $10.5K–$11.5K), driven by a 6.3% vacancy rate that exceeds stabilized norms for new construction. The 50% opex ratio is healthy for the vintage and geography. The implied valuation of $20.8M (appraised) yields the 7.8% cap rate; without an explicit sale price, the spread versus submarket cap rates ($188.2K/unit suggests ~$33M equilibrium value) suggests either distressed positioning, deferred leasing risk, or pricing that reflects tenant quality/lease terms below Class A standards.

This 2024 mid-rise apartment community delivers 176 units across 139.4K SF of leasable area in a D-wood frame construction with brick exterior, positioned in Dallas at a 49 walk score (car-dependent location). The property carries a "Good" quality designation with "Excellent" condition ratings, suggesting newer construction standards. Parking configuration is unspecified, and utility allocation between landlord and resident is not yet populated in the system. Advertised base rents start at $1.275K, though full unit mix and amenity package are not detailed in available data.

Rent Performance & Market Position:

This 176-unit property is underperforming submarket benchmarks across all unit types: 1-bedrooms average $1.55K versus the $1.88K market rent, and 2-bedrooms at $2.04K lag the $2.48K benchmark by 17.5%. With 11 active listings (6.3% of portfolio) and recent concessions offering rents "as low as $1.27K," the asset is in a softening posture—the property is actively discounting to fill units rather than pushing rate. The snapshot showing 22 available units (12.5% vacancy equivalent) on 3/25 confirms elevated turnover, and the wide 1-bedroom spread ($1.30K–$1.90K) suggests selective leasing or mixed lease-up velocity by floor/location rather than momentum pricing power.

Affordability risk concentrated in immediate submarket; property positioned for middle-income renters with limited upside in affluent demographics. The 1-mile radius shows material strain at 26.7% affordability ratio versus 23.7% at 3-miles, suggesting rents of $1.64K lean hard against the $60.8K median HHI locally—this $176-unit property risks sensitivity to income volatility in its primary capture zone. The 3-mile radius (71.2% renter-occupied, $73.4K median HHI) is the operative trade area and offers stronger demand depth; however, income distribution skews working-class (37.2% earn under $50K) rather than affluent, with only 21.1% earning $150K+. Population density and renter concentration improve meaningfully at 3-mile radius, but the 5-mile softening to 62.4% renter occupancy and $76.2K median HHI suggests market saturation or ownership preference beyond immediate rings. No employment or growth data provided limits assessment of wage trajectory and labor-market demand drivers.

Appraisal History

Only one appraisal on file (2025: $20.8M), so trend analysis is impossible. The 1,873.5% YoY figure is a statistical artifact—likely comparing 2025 valuation to zero or nominal 2024 basis given the property's 2024 completion. Per-unit value of $118.3K sits well below typical stabilized multifamily comps in Dallas ($130K–$160K), suggesting either below-market rents, lease-up phase dynamics, or recent delivery discount. Land represents just 5.1% of total value ($1.1M), leaving minimal redevelopment upside; the property is effectively a fully-improved, income-generating asset with limited repositioning runway.

Rating stability masks a critical infrastructure constraint. The 4.9 rating across 28 reviews reflects exceptional leasing and management execution—89.3% of reviews are 5-star, with zero maintenance or pest complaints—but the elevator bottleneck appears twice in recent reviews as a material livability issue. One reviewer explicitly noted "only one elevator in service" during move-in; another flagged just 2 elevators total for a 176-unit property, suggesting inadequate vertical circulation for the asset size. This infrastructure limitation directly contradicts the otherwise strong operational narrative and poses underwriting risk around resident satisfaction and turnover as the property seasons beyond the current honeymoon period. The team-specific praise (named staff members across multiple reviews) is operationally healthy but creates key-person dependency risk and masks whether systems-level processes will sustain this quality.