Advalurem Group invests in multifamily property Bella Madera

Advalurem Group, a nationally focused real estate investment firm, has acquired ownership interest in Bella Madera, a 612-unit, class A, garden-style apartment community located in the growing Dallas submarket. The apartment community was built in 2009 and is currently 91% occupied. It features distinctive 'Tuscan' architecture and offers resort-style amenities including a well-appointed clubhouse, upscale fitness center, and multiple cascading pools. It is in close proximity to significant job demand drivers including the prominent business parks of Legacy in Plano and Las Colinas in Irving. The property's immediate area, which includes neighboring towns of The Colony and Carrollton, were previously named by Money magazine as one of America's "Best Places to Live." Advalurem Group's ownership interest in Bella Madera was purchased in an off-market transaction, as Advalurem Group's local partner was offered the opportunity after closing another sale with the owner, a regional merchant builder. In addition, value was created by assuming an existing long-term loan that was restricted from early repayment. "The unique opportunity resulted in a material price reduction and will go toward generating value-added returns without relying heavily on asset appreciation," said Advalurem Group principal and founder, Gabriel Pozo. The strategy is to enhance cash flow through optimal revenue management and to provide institutional management until the end of the loan term, when the property can be sold unencumbered to unlock the equity value that was gained at closing. The investment is projected to generate compelling risk-adjust returns for investors.