Sierra Heights

The thesis

Sierra Heights was a 136-unit value-add in Irving — inside the Dallas–Fort Worth market we underwrite every day, close to the people who would operate it. The plan was conventional on paper: renovate the units, close the gap to renovated comps, and let stabilized performance set the exit.

The deal was underwritten to a five-year hold. We never underwrite to the best case; we underwrite to the plan.

Execution

The renovation scope completed ahead of schedule. Rents reached year-three projections by month eighteen — the value-creation portion of a five-year plan, finished in a year and a half.

That pace was not luck. It is what vertical integration is for: when the sponsor, the property manager, and the construction team are the same firm, the business plan does not wait on anyone’s phone calls.

The exit

We sold in month 25. The market presented a buyer willing to pay for stabilized performance we had already created — and when the plan is done, holding longer is just re-underwriting someone else’s deal.

The outcome

A 1.86x equity multiple and a 37.24% actual IRR to our partners, in 25 months against a 60-month underwriting. The IRR is the discipline made visible: returning capital early, once the work is finished, is the strategy.