5026 ZION RD

5026 Zion Rd trades at a compressed 8.0% implied cap rate despite 2023 vintage and 45.0% opex ratio, signaling stabilized-asset pricing rather than value-add positioning. NOI per unit of $10.4K significantly outpaces typical Dallas Class B benchmarks (~$8–9K), driven by strong $7.2M effective gross income on 381 units, though the 9.7% vacancy suggests either market softness or lease-up drag for a recent delivery. The 45.0% opex ratio is healthy for this asset class and vintage, leaving limited operational upside. At $159.1K per unit implied pricing against $49.4M appraised value, the property commands Class A+ terms—the cap rate compression indicates either below-market financing assumptions in the appraisal or market repricing since valuation.

5026 Zion Rd, Garland—381-unit, 2023-built garden-style apartment on 336.7K SF with wood-frame construction and brick exterior in EXCELLENT condition. Units feature 9–10 ft ceilings, quartz countertops, stainless appliances, in-unit W/D, smart home technology, and private balconies/patios; finishes skew upscale with soaking tubs and spa showers across the portfolio. Garage parking included; residents pay electric, water, and gas separately. Located off I-30 with restricted walk score (39), positioned as suburban-professional housing ~10 minutes from Rockwall. Pet policy caps 2 animals per unit with $350 non-refundable fee per pet plus $25/month, with significant breed exclusions including pit bulls, German Shepherds, and huskies.

Rental Performance Summary – 5026 Zion Rd

The property is underperforming market benchmarks across all unit types: 1BR units rent at $1.5K versus a $1.5K market comp (at parity), but 2BR units lag at $2.2K against a $2.2K benchmark, suggesting pricing pressure in larger units. With 37 active listings against 381 units (9.7% availability) and aggressive 10-week concession packages still in place, the property is in a leasing-up posture—concessions of this depth typically signal either recent deliveries, significant turnover, or persistent leasing friction. The lack of prior snapshot data precludes velocity assessment, but the current asking rent of $1.7K and wide spread ($1.1K–$2.95K) indicates a mixed-quality portfolio or aggressive mix-shift positioning.

Affordability and Income Support
The property's $1.74K monthly rent is sustainable across all radii, with affordability ratios of 21.1–22.7% clustering well below the 30% threshold. The 1-mile micro-market is notably weaker—median household income of $72.8K supports rent, but the income distribution skews middle-class (24.9% in the $50–75K band) with limited high-earner concentration (14.8% above $150K). The 3-mile and 5-mile rings show materially stronger income profiles, with 40.1% and 40.6% of households earning $100K+, signaling that the property's addressable tenant pool expands meaningfully beyond its immediate context.

Renter Concentration and Market Depth
Renter occupancy holds steady at 34–37.5% across all radii—unremarkable for a high-supply multifamily submarket but sufficient. The 3-mile radius (37.5%) outperforms the 1-mile (36.5%), suggesting better supply-demand fit at mid-ring distance rather than dense core, a pattern consistent with suburban-leaning Dallas multifamily.

Demographic and Growth Signals
Average household size declines modestly from 3.06 (1-mile) to 2.87 (3-mile), pointing to a younger, smaller-unit demographic mix closer to the property—favorable for a 381-unit Class A/B community. The 5-mile income plateau ($90.7K vs. $90.5K at 3-mile) and stable household size (2.95) confirm geographic maturity with no tailwind from incoming higher-income migration.

Unit mix data is incomplete and unreliable for investment decision-making. The property reports 381 total units but only 37 units are accounted for across all bedroom types (2 studios, 24 one-bedrooms, 11 two-bedrooms), leaving 344 units unclassified. The disclosed mix skews heavily toward one-bedroom units (64.9% of documented units) at $1.5K avg rent, with two-bedrooms commanding a $692 premium to $2.2K despite representing just 29.7% of the sample. This extreme concentration in one-bedroom product suggests either a student/young professional profile or a data reporting failure; without clarity on the missing 90.2% of units, bedroom distribution analysis and market-fit assessment cannot proceed.

Appraisal & Valuation

The sole 2025 appraisal at $49.4M ($129.6K/unit) reflects a newly stabilized 2023 asset with minimal land value ($2.2M, 4.5% of total)—typical for purpose-built multifamily where improvements dominate. The 1177.0% YoY figure is a valuation methodology artifact (likely comparing to nominal or zero prior-year basis) rather than genuine price appreciation; insufficient historical data prevents trend analysis. Limited appraisal history precludes redevelopment assessment, though the 95.5% improvement ratio offers no near-term land value upside unless significant density or repositioning is planned.