Moran & Company has made our reputation on setting the new standard in real estate investment sales. We do this by developing the most compelling investment thesis, delivering the best marketing materials, and executing an exhaustive marketing process. Investors deliver core pricing only when they know an asset falls into a core risk profile. The quality of our marketing materials, the thoughtfulness of our marketing process and our reputation in the multifamily market is what allows us to demonstrate an asset's core profile and is what enables us to achieve the highest core valuations for our clients.
Routh Street Flats
Routh Street Flats redefines what luxury urban living in the Dallas Metro area can be. Routh Street Flats is located at the heart of the vibrant, urban Uptown District. Boasting a Walk Score of 92, Routh Street Flats is three blocks from Whole Foods, one block from the Katy Trail (one of region’s best outdoor lifestyle amenities), and steps from a world-class restaurant and nightlife scene.
Against the backdrop of the hip Uptown District, our client, delivered an asset featuring: a rooftop terrace with stunning views, an infinity-edge saltwater pool and an indoor/outdoor clubhouse and fitness center, targeted directly to the Uptown District renter. The result is one of Dallas Metro’s most desirable core investment opportunities.
The Challenge: Routh Street Flats’ incredible location and incredible product execution manifested in an outstanding lease-up, reaching 99% occupancy in less than 12 month. The challenge for the Moran Team was in defining stabilized rents and operations and pushing the market to underwrite the highest stabilized rents for a property coming out of lease-up.
At the time of our marketing, Routh Street Flats was stabilized but it had yet to go through its first turn of lease-up residents, and as a result had not yet burned off construction concessions. Moreover, as one of the Metro’s hottest submarkets, there were several new communities in lease-up and under development and the question from the market was how to underwrite stabilized rents for Routh Street Flats as a core asset with core returns.
The Solution: The Moran Team had to build a thoughtful and bullet-proof case for underwriting stabilized rents and operations. To do this, the Moran Team leveraged the decades of experience and a deeply analytical tool-kit to create a detailed rental market analysis comparing Routh Street Flats’ lease-up performance against other comparable rental properties. In doing so, we determined that the key to rent equilibrium in the market was not just about an absolute supply number, but how that supply was meeting demand.
For instance, our analysis of the rental market showed that while concessions were being offered to drive a lease-up velocity for new assets, stabilized properties were eliminating concessions altogether.
Moreover, Routh Street Flats’ design is unique among its competitive set. Routh Street Flats was designed with a smaller average unit size, resulting in lower whole-dollar rents, which contributed to the property’s remarkable lease-up and would continue to offer the property a long-term sustained advantage within the rental market.
Finally, deeper analysis of future supply reinforced our thesis that Routh Street Flats’ unique common area and unit design would continue to insulate the property from new deliveries, resulting in better than market returns for a core asset.
Conclusion: We focus on creating value for our clients and that commitment requires turning over every stone on every deal, even those deals that would otherwise seem to sell themselves.
Routh Street Flats closed in December 2016. The Moran Team’s marketing of the asset generated significant investor interest and our analysis of the rental market created greater transparency for the market to underwrite aggressive stabilized for rents for the property, ultimately maximizing value for our client.