The property carries $254.956M in active debt against a $28.6M appraised value—a structural red flag indicating either severely outdated valuation data or material distress. The current owner has held for 8.5 years with 10 recorded transactions, including multiple quit claim deeds (2007, 2014) that suggest prior ownership complications; the Federal Home Loan Mortgage debt originated in 2015 with a 24-month term now grossly matured, signaling refinancing urgency or potential default. At $452.9K per unit in total debt versus estimated $516.5K sale price per unit, leverage appears unsustainable absent substantial undisclosed equity or income performance, and the absence of DSCR data combined with absentee ownership and maturing debt points to a motivated seller scenario, though the appraised value disconnect requires immediate clarification before proceeding.

Allegro Place Phase II is a 121-unit, four-story mid-rise apartment community built in 2012 in Addison with brick exterior and wood-frame construction. The property totals 95.0K gross building area across excellent-condition units, suggesting Class A/B finishes consistent with its post-2008 vintage and quality rating. Parking type is not specified in available data. Located in Addison (Walk Score 68), the asset sits in a car-dependent suburban market north of Dallas with moderate pedestrian accessibility.

Affordability and Demand Mismatch in Urban Core

The 1-mile radius presents a critical tension: an 83.7% renter concentration signals strong multifamily demand, but the 24.6% affordability ratio—higher than the 20.8-20.9% seen in outer rings—suggests the immediate submarket may be pricing at the upper bound of income support. The $81.2K median household income in the 1-mile zone supports this strain; renters there are disproportionately concentrated in the $100K-plus brackets (36.8% combined) versus the 10.2% earning under $25K, indicating a bifurcated market where affluent renters coexist with limited workforce housing stock. The sharp drop-off in renter concentration from 1-mile (83.7%) to 3-mile (65.5%) to 5-mile (56.6%) reveals an urban-core asset dependent on a compressed, higher-income renter base rather than broad demographic lift—a supply dynamic that supports pricing but limits tenant diversity and downside cushion.

Appraisal History & Valuation Analysis

With only one appraisal on record (2025), trend analysis is impossible, but the current $28.6M valuation yields $236.0K per unit—reasonable for a 2012-vintage Class B product in the Dallas market. The 3.6% YoY appreciation suggests modest market momentum, though without prior-year data the baseline is unclear. Land represents just 3.4% of total value ($965K), indicating minimal redevelopment upside; the 96.6% improvement weighting reflects a stabilized, fully-built asset with limited repositioning runway. Request full appraisal history (2020–present) to assess whether this growth trajectory tracks market or signals operational outperformance.