Saturday, August 4, 2012


Worth Street Apartments
5203 Worth Street
Dallas, Texas 75214



Executive Summary/Property Description

The Worth Street Apartments, constructed in 1925, is a two-story, twelve-unit complex situated within the Munger Place Historic District in the City of Dallas.  The building features ten efficiency unites and two loft style one bedrooms that have been recently updated. It is close to Downtown Dallas, White Rock Lake, Baylor Hospital, Fair Park, Deep Ellum, Greenville Avenue, and SMU. Several amenities are within walking distance, which includes Trader Joe's and Wal-Mart Neighborhood Market, both under construction. The newly updated streetscape of Greenville Avenue provides a close by area of entertainment with bars and restaurants. 

Information below is offered by the seller.

Market Analysis

Population is increasing in Texas, including the Dallas-Fort Worth Area. According to MPF Research, vacancy rates remain low and market rents are expected to increase in the Dallas area by 3.5% over the next 2 years. (http://www.dallasnews.com/business/commercial-real-estate/20101102-Dallas-Fort-Worth-apartment-rents-will-5724.ece)
According to city-data.com, the medium gross rent in 2009 is $784. Every unit in this complex is well below that, which ensures a high occupancy rate.


Cash Flow

Based on the asking price of $549,000, an interest rate of 5%, and a loan that matures in 10 years, and $20,000 in acquisition costs, the property produces a little cash after taxes.






Based on a purchase price lower than the asking price, the property generates more after tax cash flow than before.







Assumptions for the cash flow are as follows: