VILLAGE OF ROWLETT

Village of Rowlett trades at a 6.59% cap rate despite a 45.0% opex ratio and $9.7K NOI per unit—roughly 10–15% below Dallas Class A/B comps—suggesting the market is pricing in near-term operational upside rather than stabilized yield. The $10.6M gap between appraised value ($47.6M) and estimated sale price ($36.6M) signals either appraisal inflation or the analyst is modeling a meaningful value-add thesis, though a 2.12x DSCR and 4.8% vacancy indicate the asset is performing respectably today. At $147K per unit versus the $159K submarket benchmark, the property trades 7.6% below comps on a unit basis, consistent with the cap rate premium. The operational profile (modest expense ratio, strong debt service coverage) supports a hold or moderate repositioning strategy rather than distressed acquisition.

Village of Rowlett is a 249-unit, 2016-built garden-style apartment community in suburban Dallas (Rowlett, Dallas County) with wood-frame construction across three stories and detached garage parking. Unit finishes are oriented toward the upper-mid market with granite countertops, stainless steel appliances, wood-style flooring, and washer/dryer in-unit; the property also offers two-story townhome and live/work floor plans alongside traditional apartments. Pet policy allows two animals per unit at $350 nonrefundable each plus $25/month per pet; no utilities are included in rent. The property's walk score of 58 reflects car-dependent suburban positioning, though amenities include a resident clubhouse and covered outdoor spaces.

Village of Rowlett is materially underrented across all unit types relative to submarket benchmarks, with elevated vacancy signaling weak lease-up momentum. Two-bedroom units command $1.8M average rent versus a $2.1M market benchmark (15.3% discount), while one-bedrooms lag by 12.8% ($1.4M vs. $1.6M). The property is currently offering 6 weeks free on select units—a aggressive concession typical of soft market conditions—with 32 units available out of 249 (12.9% occupancy gap). Recent lease activity shows wide rent dispersion within bedroom types ($1.3K–$1.5K for 1BR; $1.6K–$2.1K for 2BR), indicating selective pricing rather than market-rate leasing, consistent with concession-driven placements.

Affordability strain in an affluent but renter-light submarket. The $1.54K monthly rent consumes 20.0% of the 1-mile median household income ($89.9K), which is healthy, but the immediate trade area skews heavily owner-occupied (42.1% renter), limiting demand density. Income distribution is top-heavy—45.6% of 1-mile households earn $100K+—signaling this is an affluent suburban ring, not workforce housing, yet only 25.4% renter concentration at 3 miles suggests renters here are price-constrained secondaries choosing to rent despite ability to buy. Population scale at 5 miles (226.6K households) provides demand breadth, but the property is isolated in the ownership core; rent levels align with area income but compete against ownership optionality rather than deep rental preference.

Appraisal Analysis – Village of Rowlett

The property appreciated 2.0% YoY to $47.6M ($191.1K/unit), reflecting modest market momentum in a relatively new asset (2016). Land represents only 1.7% of total value ($785.2K), indicating minimal redevelopment optionality—the improvements are the full story here. Single-year data limits trend visibility, but the valuation appears rational for a stabilized, Class A product; without comparable sales or prior appraisals, downside/upside scenarios remain undefined.