Devonshire Lake Dallas: 140-Unit Class A Multifamily, Lake Dallas, TX
Status: Open, closing pending HUD
Open to verified accredited investors; the closing date will be set once HUD completes its paperwork.
The Property
| Address | 300 E. Swisher Rd, Lake Dallas, TX 75065 (Denton County, Dallas–Fort Worth) |
|---|---|
| Type | Class A garden-style multifamily |
| Units | 140 |
| Year built | 2015 |
| Site | 7.30 acres |
| Average unit | About 1,029 sq ft |
| Purchase price | $22.0 million (about $157,142 per unit; $152 per sq ft) |
Lake Dallas sits along I-35E in Denton County, between Denton and Lewisville, within the Dallas–Fort Worth metroplex.
What Stood Out in Our Review
Fixed-rate debt already in place
The purchase assumes an existing fixed-rate, amortizing HUD loan (assumption subject to HUD approval). Fixed-rate debt removes interest-rate risk on the loan during the hold, though it doesn't remove other risks.
A defined improvement plan
About $1.8 million of planned capital improvements (roughly $1.03 million for unit interiors and $771,000 for exterior and amenities), with the operator targeting rent increases on renovated units. Planned work and rent increases may not be achieved.
Property-tax abatement
According to the operator, 28 of the 140 units are rent- and income-restricted under a land-use restriction agreement that provides a property-tax abatement through 2045.
The Operator: Momentum Multifamily
Momentum Multifamily, led by Dustin Miles and Hayden Harrington, sponsors and operates the property. The operator's general partners are investing their own capital in the deal. Details on the operator's track record are in the offering materials.
How the Investment Is Structured
Omega investors invest in an Omega feeder vehicle. The feeder invests as a limited partner in Momentum Multifamily's Devonshire Lake Dallas offering, which owns the property. Both the Omega feeder and Momentum's offering are Rule 506(c) offerings.
Summary of Terms
| Minimum investment | $100,000 |
|---|---|
| Minimum raise | $500,000; if not reached, subscriptions are returned |
| Target hold | About 5 years (target, not guaranteed) |
| Omega fee | 2.0% one-time due-diligence fee; no annual management fee, refinance fee, or disposition fee at the Omega level |
| Operator fees | Charged at the operator level as described in Momentum's offering documents (e.g., acquisition and asset-management fees) |
| Liquidity | No redemptions; expect to hold for the full term |
| Profit split and distributions | Described in the Private Placement Memorandum (provided to verified accredited investors) |
This is a summary. The Private Placement Memorandum and subscription documents govern and control over anything on this page.
Request Offering Materials
Offering materials are provided to accredited investors. Email us or book a call, and we'll follow up to begin accredited-investor verification.
Key risks
Every private real estate investment carries risk. Among them:
- Loss of capital: you could lose some or all of your investment.
- Illiquidity: there is no public market for these interests, and you should expect to hold for the full term.
- Market and operating risk: rents, occupancy, expenses, and property values can move against the plan.
- Leverage and interest-rate risk: debt magnifies losses as well as gains; refinancing and sale conditions can change.
- Sponsor and operator risk: results depend on the people executing the business plan.
- Fees: fees at each layer reduce what investors receive (in a fund-of-funds structure, there are fees at both the Omega level and the underlying sponsor level).
- Tax risk: tax outcomes depend on your situation and on law that can change. Retirement-account investors may owe tax on certain income (UBTI).
- Value-add risk: renovations may cost more or take longer, and rent increases may not be achieved.
- Concentration: one property in one metro area.
- Rent- and income-restricted units: 28 units carry affordability requirements that limit rents and require compliance.
- Assumed HUD loan: lender approvals, prepayment terms, and loan covenants may limit flexibility at refinance or sale.
- Two layers of fees (Omega feeder and operator).
- Dependence on the operator: Omega does not control day-to-day property operations.
Read the risk factors in the offering documents before investing.
Property and operator figures above are from the operator's materials and have not been independently audited by Omega. Rule 506(c) offering: accredited investors only. Not an offer to sell securities; offers are made only through the offering documents.