Brentwood Court Apartments
43 Units
$2.3M
1901 Handley Dr, Fort Worth, TX 76112
Executive Summary
Furlo Capital, LLC is an Oregon Limited Liability company with offices in Corvallis, OR, and is arranging for the acquisition of undivided real estate interests in the above properties by a limited number of accredited and qualified investors.
Investment Overview
Purchase price: $2.3M
Rehab costs: $85K
Total cost per door: $53,48
43 units
Seeking $957K total cash/equity investment
Investment Details
A - Share 80%, B - Share 20%
1% A share equals $9,500
Minimum of $28,500 per investor
Projected average annual returns of 10% - 17%
1% share average annual cash flow: $534 (5.6% on original investment)
Depreciation Benefits (proportionate share, talk to your CPA)
Cash flow distributions are made at the end of each quarter
Key Milestones
10/18/2022 = Close on property
Q1 2023 Stabilization (90%+ occupancy)
Investors should be prepared to leave their money in for a minimum of 5 years, even though there is a possibility to re-finance and repay the investor's principal before then. Investors have the option of getting cashed out of their investment between years 4 and 5 at 90% of the fair market value of their shares. If we refinance or sell the property, investors first receive their principal back, then receive 70% of any profits.
See below for more information about the property, its current performance, our strategy to increase income, and our financial projections.
This information is authorized for use only by a limited number of persons with an existing relationship with Furlo Capital and who have been qualified and accepted as accredited investors by Furlo Capital, by furnishing proof of substantial income (200,000/yr or $300,000/yr if married) over the current last two years, or a net worth of $1,000,000, and extensive investment experience. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the real estate interests in this property package or passed upon the adequacy or accuracy of this document. Any representation to the contrary is a criminal offense.
This material does not constitute an offer or a solicitation to purchase securities. A private placement memorandum can only make an offer. This document is an informational summary and is authorized for use only by accredited investors with an existing relationship with Furlo Capital, and have been accepted as qualified and accredited investors by their experience and financial circumstance.
About The Property
The subject property is a 43-unit multifamily apartment building located at 1901 Handley Dr in Fort Worth, Texas.
The building has excellent access to I-820, I-30, and retailers.
The property consists of 4 buildings on 1.19 acres, brick exteriors, concrete slab foundations, an asphalt parking lot, and pitched roofs. The assets lot is fenced, features a courtyard, community grill, picnic area, and has mature trees and shrubs.
Unit mix:
31 one-bedroom / one-bath units at 651 SF.
11 tw0-bedroom / one-bath units at 909 SF.
1 efficiency unit at 742 SF for an average of 702 SF.
Amenities include washer and dryer hookups, online services, property manager onsite, individual HVACs, granite countertops, walk-in closets, ceiling fans, cable, and high-speed internet ready.
Kitchens have granite countertops, microwaves, dishwashers and garbage disposals, range ovens, and refrigerators. The units also feature stylish vinyl flooring, carpet, large closets, and nice linen closets.
Offering Memorandum
On mobile, tap on the PDF to see the full OM.
BrentwoodApartments-OM.pdfThe Opportunity and Business Plan
The property offers an opportunity to shift to a more professional property management:
Improve occupancy from 88% to 95%
Potentially pass through the bulk of $35k in utility expenses.
In the last twelve months, current management has paid $67k in payroll - the equivalent of a 16% management fee.
According to Dallas News, the metro has eight million residents and is on course to have an additional one and a half million new residents by 2025, thus driving the demand for quality housing.
Acquisition Summary
Closing costs include origination fees, appraisal, property inspection, legal fees, recording fees, and transfer taxes. The acquisition fee is payable to Furlo Capital at closing. Repair escrows are kept in the operating account until needed.
Seller-Disclosed Financials
Rent Roll
On mobile, tap on the spreadsheet to see the full rent roll.
Income and Expenses
On mobile, tap on the spreadsheet to see the full income and expenses.
Financial Projections
Here's the 5-year P&L Projection:
On mobile, tap on the spreadsheet to see the full P&L.
NOTE: The rates of return displayed on this page are only projections, and are not guarantees of any sort. Actual returns may vary widely, due to many economic and marketplace factors beyond our control.
Equity Return at Resale
We assume we will be able to sell the building at the now-going cap rate of 7.5% for a well-performing asset in this area of Fort Worth TX. All investor capital is returned first before the remaining proceeds are split according to the investors’ equity share.
On mobile, tap on the spreadsheet to see the full equity return.
Management and Advisors
James Furlo
President, Managing Member
James was a data scientist for HP for 12 years. During that time, he saved and invested in multi-family rentals. Today he manages 17 residential units, 70 storage units, 26K SF of warehouse space, and is beginning to build 57 RV storage spaces on a 1.5 AC vacant lot. Past purchases include two duplexes, and single-family home, and a 1.5 AC vacant lot in Indiana. Learn more
Robin Alexander, Frontline Property Management, Inc.
Property Management
Frontline is a well-established company with over 30 years of service for 250+ investors. They offer property management, leasing, rehab coordination, maintenance coordination, and full-service accounting in the Fort Worth and Dallas area. They are also investors with many investments across the area, so they understand the issues surrounding effective management services. Learn more
Mark Allen CCIM, Onyx Legacy Group
Real Estate Attorney
Mark handles all legal matters related to the real estate transaction. Before forming the Onyx Legacy Group, Mark served as Senior Vice President at Colliers and Vice President at Marcus & Millichap within the National Multi-Housing Group as the Director of the Allen Multifamily Team. Since entering commercial real estate in 2010 with Sperry Van Ness, Mark has worked on acquiring and disposing of numerous multifamily, retail, medical and corporate users. Learn more
Syndication Attorneys, PLLC
SEC Attorney
Syndication Attorneys handles all legal matters related to SEC compliance. Their Attorneys are versed in all aspects of the JOBS Act, including Regulation A+, Regulation D, Rule 506 (b&c), and Regulation Crowdfunding, as well as Regulation S (International) and public offerings. Learn more
Next Steps
The funding deadline is 10/18/2022, and it's a first come first serve. If you're interested in partnering with us, let's discuss it. You can send James an email, text/call him at 408-334-3000, or schedule a meeting.