530 buckingham road richardson, texas 75081

I N V E S T M E N T
S U M M A R Y
530 BUCKINGHAM ROAD
RICHARDSON, TEXAS 75081
Investment Summary
OFFERED PROPERTY
JLL is pleased to present Sonterra at Buckingham, a terrific value add
opportunity located in the explosive Richardson, Texas market. This 312-unit Class
A garden-style multifamily community is strategically developed at the gateway to
Richardson’s “Telecom Corridor,” which boasts the second highest concentration
of corporate employers in the Dallas/Fort Worth metro area. Proximity to major
employers is more significant than ever at Sonterra at Buckingham with State
Farm and Raytheon planning to bring approximately 13,000 employees to the nearby
CityLine development in the coming months. In addition to the large employment
base, the property is also positioned near a plethora of retail services, award
winning schools, medical facilities and a number of recreational venues that offer
residents a true live, work, play atmosphere with seemingly endless opportunities.
Completed
in
1996,
Sonterra at Buckingham
Type
Description
# Units
SF
is a quality built, attractive
A1
1 Bd / 1 Ba
48
600
garden-style property with
A2
1 Bd / 1 Ba
72
705
excellent drive up appeal
A3
1 Bd / 1 Ba
48
835
B1
1 Bd / 1 Ba
36
1,000
that is well positioned
B2
1 Bd / 1 Ba
36
1,000
within the market to
B3
2 Bd / 1 Ba
48
1,125
benefit from an interior
C1
2 Bd / 2 Ba
24
1,390
enhancement
program.
Totals / Averages:
312
894
With 9-foot ceilings,
detached garages and
spacious walk-in closets, this property is a prime candidate for investors that are
looking for a property that is well received by the community and offers immediate
rental rate upside.
SONTERRA AT BUCKINGHAM UNIT MIX
The property is served by the Richardson Independent School District, which has
been recognized as one of the best in Dallas/Fort Worth. Post-secondary education
facilities including Richland College (2 miles) and the University of Texas at Dallas
(5 miles) are within the immediate area.
INVESTMENT SUMMARY
Price
TBD
Terms
Cash - to - Note
Freddie Mac Below Mkt. Interest Rate:
Number of Units
Year Built
Avg. Unit Size
Occupancy/Leased (07/07/2014)
Avg. Effective Rent/Unit on Upgraded Units
Avg. Effective Rent/SF on Upgraded Units
Address
3.57%
312
1996
894 SF
98%/104%
$1,202
$1.12
530 Buckingham Rd.
Richardson, Texas 75081
2
Investment Summary
INVESTMENT HIGHLIGHTS
EXCELLENT VALUE-ADD OPPORTUNITY
Sonterra at Buckingham was originally constructed
in 1996. The property is engaged in a unit enhancement
program, and has been achieving average rental rate
premiums of $92 per month per unit on upgraded units.
This represents a huge opportunity for a new owner to
continue the improvement program and increase revenue.
■ The upgrade package includes plank flooring, new
countertops, brushed nickel cabinet pulls and hinges,
new light fixtures, fans, door hardware and faucets.
Currently, the property is also offering the option of
installing stainless steel appliances for an additional
premium of $55 per month per unit.
■ Additional upgrades that could be implemented in
addition to those in place are tile backsplashes, the
installation of more washer/dryer sets and 2” faux
wood blinds in the units. Some common area upgrade
opportunities are to upgrade the leasing center and
redo the fitness center.
■ An opportunity also exists to add fenced backyards to
a select number of ground floor units for a premium
of $100.
■ Other properties in the area that have completed
similar unit upgrade programs are currently averaging
$1.20 per square-foot, indicating an excellent
opportunity to increase revenues upon completion of
the upgrades at Sonterra at Buckingham.
3
Investment Summary
Plano
Custer Rd
Downtown
Plano Station
Plano Research/
Technology
Crossroads
W. Plano Pkwy
Bush Turnpike
Bush
Turnpike
Station
E Renner Rd
Galatyn
Park
Station
Canyon Creek
Country Club
Crowley
Park
E Campbell Rd
Jupiter Rd
Telecom
Corridor
Sherrill
Park
Grove Rd
DA
DA RT Re
RT
d
Ora Line
ng
eL
ine
W Belt Line Rd
Huffines
Park
Spring
Valley
Station
Sherman
Pocket Track
W Buckingham Rd
Garland
Richland
College
Walnut St
Garland Ave
Spring Valley Rd
Dallas LBJ/Central
Plano Rd
Arapaho Rd
Arapaho
Center
Station
Gree
nvill
e Av
e
Coit Rd
Richardson
■ Texas Instruments, Fossil, AT&T,
University of Texas at Dallas,
Blue Cross Blue Shield and many
others are among the nearby
employers.
■ The new CityLine development
will is less than 10 minutes from
Sonterra at Buckingham and
be an 8 million square-foot master
planned mixed use development
including entertainment, office,
residential, retail and dining
locations. Included in the
development is the new State
Farm and Raytheon offices which
are slated to introduce over
13,000 jobs to the Richardson
submarket.
Shiloh Rd
Waterview Pkwy
ge
Pre iden t Geor
s
PROXIMITY TO MAJOR
EMPLOYMENT
Richardson is experiencing a
major influx of new employers and
Sonterra at Buckingham benefits
from an A+ location just minutes
from a variety of employment hubs.
N Garland Ave
W 15th St
Station
4
Forest Ln
Investment Summary
STRONG MARKET FUNDAMENTALS
Strong rental demand has led to an outstanding occupancy
level of 96.6% for the Richardson submarket, according to the
MPF Research year-ending 2nd Quarter 2014 report. Currently,
Sonterra at Buckingham is 98% occupied and 104% leased,
and has managed to increase effective rental rates 4.13% over
the past 12 months.
■ With the continuation of the unit enhancement program
and the positive market trends, the property can increase
effective rental rates more rapidly.
■ The Richardson submarket has been a highly desirable,
strong performing submarket over the years, as seen by the
following:
• Ranked #1 within the top 5 submarket occupancy leaders
in D/FW
• Ranked within the top 5 submarkets with the highest
quarterly rent change in D/FW
• Ranked within the top 5 highest annual rent change
submarkets in D/FW
FAVORABLE MARKET RATE DEBT
Sonterra at Buckingham offers potential investors the
opportunity to acquire a well-established asset with a plethora
of upside. In addition, the property has favorable debt a at
below market rate of 3.57% with 8 years remaining and the
opportunity to add supplemental financing.
5
Investment Summary
AMENITIES
■ Business center
■ Gym
■ Clubhouse
■ Playground
■ Two dog parks
■ Private balcony / patio
■ Outside storage closets
■ Laundry room on site
■ Stainless steel appliances*
■ Plank flooring in kitchens & baths
■ Full size washer & dryer connections
■ Fully equipped kitchens
■ Large oval garden tubs
■ Ceiling fans
■ Crown molding
■ Spacious walk-in closets
■ Air conditioning
■ Frost-free refrigerator with ice-maker
■ Nine foot ceilings
■ Pantries*
*Select homes
6
Further information is available from the seller's exclusive representatives:
Sales Contacts
Jeff Price
Managing Director
(214) 438-6401
jeff.price@am.jll.com
Bill Simmons
Senior Vice President
(214) 438-6352
williamT.simmons@am.jll.com
8343 Douglas Avenue, Suite 100
Dallas, Texas 75225
www.jll.com/Dallas