BENA Capital Announces Multifamily Acquisition in Granbury, TX

BENA Capital is pleased to announce its latest acquisition of a multi-family apartment asset in Granbury, Texas.

The property is located in a growing suburb of Fort Worth, 5 minutes to the downtown town square, across the street from the Lake Granbury Medical Center, and 45 minutes from Fort Worth. We identified Granbury as a prime target for the fund because the city has been growing at roughly 40% per decade, and the population is expected to grow by another 50% over the next 20 years. Both the unemployment rate and the poverty rate are below the national averages.

Given its proximity to Fort Worth, many families choose to live in Granbury for its safe, small-town feel while working in Fort Worth, which is the fastest growing metropolitan area in the country, adding over 146,000 residents in 2017. Fort Worth is the 15th largest city in the United States and continues to grow substantially, both in numbers of residents and jobs. Over the past 12 months it has added jobs at twice the rate of the national average. Cities with this type of robust growth are rare, and an effective strategy to capitalize on this growth is to acquire solid properties in areas just on the fringe of this rapid growth. These types of properties tend to benefit from price appreciation as the population searches for additional housing units.

As a result, we are excited about the prospects of this property for the BENA Capital Mosaic Fund, focused on generating stable rental income streams for investors. We acquired the property with one unit vacant and had a contractor in the unit ready to perform make-ready work the day of closing. The vacant unit was leased in 4 days at an above-market rate and we are having rent increase discussions with the current tenants. Our goal is to maximize cash flow while also moving up rents over the next 6-12 months.

The Fund’s all-cash offer, paired with niche market knowledge and strategic partnerships that enabled a quick close, beat out 6 other bids. These attractive terms allowed us to acquire the asset at a competitive price.

We plan to implement a phased strategy to improve the property during Q1-Q2 2019. Initially, we will target value-add projects and repairs to improve the appeal of the property. In parallel, the hands-on property management team we have hired is familiar with the local market, and will increase current rents to further enhance cash flow.