Strong Revenue Management Bolsters Floundering Dallas Property

The Avenues at Carrollton is a 268‑unit multifamily community located at the border of Carrollton and Plano, Texas - just three miles north of Dallas. When RMR Residential acquired the asset, it presented a compelling opportunity: a well‑located property that was materially underperforming the surrounding market yet required minimal capital investment to reposition. Through disciplined revenue management, targeted marketing and strong operator relationships, RMR Residential executed a highly effective value‑creation strategy culminating in the asset’s sale for $75.3 million in December 2021.

Investment thesis

When brought to market, The Avenues at Carrollton lagged its competitive set in both occupancy and rent growth. Primary drivers of underperformance included:

• Sub‑market rents not fully maximized. The seller prioritized maintaining occupancy by avoiding rent increases, which caused the property to trail well behind competitive assets.
• Minimal marketing exposure. Limited investment in outreach and digital marketing hindered leasing traffic and slowed absorption.

Despite operational challenges, the asset required very little capital expenditure - an attractive foundation for a performance turnaround strategy. RMR Residential’s long-standing relationship with the seller provided early insight into the offering and enabled a streamlined, efficient closing process.

Our approach

With the asset’s strong fundamentals and desirable North Dallas location, RMR Residential focused on operational optimization rather than physical renovation.

Implementing sophisticated revenue management. RMR Residential deployed an advanced revenue management system to:

• Continually monitor rent levels across the competitive set.
• Identify real‑time pricing opportunities.
• Ensure asking rents remained at or above market based on the property’s positioning.

Aggressive resident retention and renewal strategy. The team instituted targeted, strategic rent increases on renewals, aligning current residents with true market pricing. Increases were supported by:

• Strong communication around value and service.
• Improved responsiveness and resident engagement.
• Data‑driven pricing tools to guide renewal offers.

Expanded outreach marketing for new leases. Immediately upon acquisition, RMR Residential launched a renewed marketing push, including:

• Targeted outreach to major employers across North Dallas.
• Strengthened digital marketing presence.
• Enhanced on‑site leasing strategies and follow‑up processes.

Performance impact

The asset was sold in December 2021 for $75.3M, generating a gross IRR and MOIC of 26% and 3.3x, respectively, over the 5.8-year hold period.

The successful repositioning and sale of The Avenues at Carrollton highlights RMR Residential’s ability to identify underperforming assets, deploy effective operational strategies, and generate outsized returns - even in situations where physical improvements play a minimal role. Through data‑driven revenue management, strategic marketing and deep market relationships, RMR Residential transformed an undervalued property into a high‑performing investment in less than six years.