Serendipity Apartments - 1 Year Transformation
Serendipity Apartments was our first investment in MogulREIT II. The 343-unit garden-style apartment community is located in Dallas, Texas and was 95% occupied when we acquired this investment in August 2017. The property was acquired by the real estate company at an attractive basis compared to similar transactions in the market ($56,851/unit), and post-renovated rent increases are anticipated to be $142 per unit, a 27% premium to the rental rates at closing. MogulREIT II has invested $4,000,000 of equity in the deal.
The real estate company plans to renovate all 343 units over a three-year period as the units come available due to normal tenant turnover and raise the rents for these units after they are renovated. The real estate company budgeted approximately $3,000,000 toward capital improvements.
Through Q2 2018, 103 units of the 343-unit rent roll have been renovated. The budgeted exterior improvements consisted of fresh paint, new carpentry, landscaping and drainage, a dog park, renovated pool, vehicle access gates for additional security, building signage, new leasing office and resealed parking lots. These exterior improvements are approximately 85% complete, as of Q2 2018, and the last remaining items are ongoing foundation repairs as needed, parking lot, and additional landscaping.
MogulREIT II is a Real Estate Investment Trust (“REIT”) designed for appreciation and income through investments in equity in multifamily apartment buildings.
Investing in REIT common shares is speculative and involves substantial risks. The “Risk Factors” section of the offering circular contains a detailed discussion of risks that should be considered before you invest. These risks include, but are not limited to illiquidity, complete loss of capital, limited operating history, conflicts of interest and blind pool risk. MogulREIT II’s multifamily investments can be subject to specific risks including changes in demographic or real estate market conditions, resident defaults, ad competition from other multifamily properties.