Fund 3-MFI Apollo Heights
Dallas, Texas
Total
Units
Total Units
248
Hold
Period
Hold Period
2-5 Years
Purchase
Price
Purchase Price
$35M
Invest Equity
Raised
Total Equity Raised (Sponsor)
$19.4M
Target Annual Rate of Return
20.40%
Target Equity Multiple
2.02x
Target Average Cash on Cash
5.00%
Property Photos
Investment Overview: Rise Apollo Heights
Dallas, Texas
Acquisition & Strategy
Rise Apollo Heights is a 248-unit value-add multifamily property located in the Garland submarket of Dallas. We are partnering with Rise48 Equity to execute a proven value-add strategy, leveraging their vertically integrated operations and $2B+ in assets under management. The property benefits from strong employment access, favorable demographics, and continued investor interest across the Dallas-Fort Worth metro
This asset was sourced entirely off-market from a distressed seller who had purchased at the height of the market in 2022. Due to poor debt structure and recent interest rate volatility, the seller is exiting at a $15.5 million loss, providing immediate equity and a cost basis well below replacement value.
We are acquiring the property at $135,000 per unit with a 62.8% loan-to-value ratio. The existing debt carries a capped rate of 4.75% with no prepayment penalty, allowing for early exit or refinance flexibility based on performance.
The business plan includes in-unit washer and dryer installations across the property to drive strong cash flow early in the hold period, even prior to full renovation maturity.
Value Creation & Market Dynamics
The repositioning strategy includes upgrading 88 % of units to (217) to the “Diamond Level” finish used successfully in other projects. The in-place average rent of $1,080 is projected to increase to $1,320 post-renovation, representing a $240/unit lift across all units.
Dallas’s exceptional job and population growth continues to drive demand. With a low-cost basis of $135,000 per unit and low leverage at 62.8% LTV, this deal offers strong downside protection and room for future value growth.
Market Analysis
Charlotte is ranked #3 in the U.S. for population growth and has added over 54,000 new jobs in the past year alone. Major investments from a diverse employment section from Raytheon, Texas Instruments, AT&T, and Baylor Scott & White— point to continued economic vitality. Additionally, Dallas’s 2025 projected rent growth of 1.25% and increasing occupancy underscore the resilience of this market.
The property’s location in the East Dallas submarket places it within proximity to 15,000+ jobs within 13 miles and nearby housing demand drivers, offering a compelling opportunity for stable cash flow and long-term appreciation.
Financial Performance & Forecast
The investment targets a 2.02x equity multiple over a 2-5-year hold with projected average annual returns of 20.4%. Initial year cash flow is estimated at 3.7%, growing to 6.8% by Year 5. A conservative underwriting approach was used, including an interest rate cap at 4.75% and $1.7M in cash reserves for downside protection.
Key Investment Metrics
- Acquisition Price: $35,000,000
- Equity Raised: $19,400,621
- Average Annual Return (AAR): 20.4%
- Internal Rate of Return (IRR): 16.0%
- Equity Multiple: 2.02x
- Avg. Annual Cash Flow: 5.0%
- Minimum Investment: $100,000
Conclusion
Rise Sunridge exemplifies our ability to source off-market, institutional-quality assets with a strong upside and minimal downside risk. By capitalizing on below-market pricing, a clear renovation path, and long-term market tailwinds in Dallas this asset is positioned to deliver compelling returns.
This investment underscores Cramlet Capital’s focus on executing fundamentals-driven strategies in high-growth markets alongside best-in-class operating partners.
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