CrowdStreet: Elmsgate At Cliffside

Real estate investment platform CrowdStreet announced an offering for Elmsgate at Cliffside, a Class A multifamily community in Arlington, Texas.

The property’s average rental rate is $1,329, and the project's sponsor intends to bring rents up to market rates through significant value-added upgrades. The property, centrally located in the Dallas-Fort Worth metropolitan area, is being acquired and renovated at an advantageous cost basis, allowing the facility to be brought up to a top-tier standard. 

The demand for multifamily housing in the area has grown significantly in recent years.  According to CoStar Group, the Arlington submarket is expected to see a 6% population increase while the Dallas-Fort Worth submarket is expected to see an 11% increase over the next five years. 

A major economic hub, the Dallas-Fort Worth metro area is home to 43 Fortune 1000 companies and is listed as the No. 2 Overall Real Estate Prospect Market by Urban Land Institute. These factors, combined with a constrained multifamily housing market, have led to a persistent supply and demand imbalance putting Elmsgate at Cliffside in a good position to maintain residential occupancy and increase rent over time. 

The majority of units in the three-story, 400-unit garden-style community will receive exterior and interior upgrades. Offering sponsor Knightvest Capital plans to implement the “Quartz” upgrade package which includes new paint, flooring, appliances, countertops, backsplashes, cabinet doors and custom closets. While the property is being acquired in excellent structural condition, the renovations are expected to elevate the property to the level of top-tier competitors in the area and create an increase in net operating income. 

Since its inception in 2007, Knightvest Capital has sold over 15,000 units with an average internal rate of return of 30% and multiple of 2.2 times. Knightvest’s office is 25 miles from Elmsgate and the company is an expert in the Dallas-Fort Worth area. The group has a portfolio that includes 30 assets in the Dallas-Fort Worth area. It also has owned, managed and sold five separate multifamily properties in the submarket between 2013 and 2022. 

The real estate investment firm has demonstrated success in similar investments, including two properties less than 10 miles north of Elmsgate that increased rents by 30%. Knightvest is managing 95 properties with an asset value of more than $6.36 billion.

The minimum investment for Elmsgate at Cliffside is $25,000.

CrowdStreet will host a live webinar at 10 a.m. Pacific Time on June 1 at 10:00 a.m. 

View details of CrowdStreet’s offerings

Photo courtesy of CrowdStreet