Case Study: Prose Lonesome Quail

The Opportunity

Prose Lonesome Quail is the development of a 390-unit,3-story garden style multifamily community in New Braunfels, TX, one of the fastest growing cities in the US. This investment is emblematic of our best-in-class, low-cost basis strategy. The project will be developed by AllianceResidential Company, a best-in-class, vertically integrated developer who builds market-rate multifamily at a significantly lower cost basis than competitors. Alliance arguably has one of the most impressive track records in the country. We are particularly excited as this is the only opportunity for accredited, RIA, and the majority of family office investors to invest directly in a best-in-class developer such as Alliance. Typically, these are strictly offered to institutional investors. 

Prose, Alliance’s Workforce housing brand was established in2018 to address demand for quality affordable apartments. Through years of research and development, Alliance created highly cost-efficient product constructed to a lower price point, targeting rents up to 20% lower than comparable apartments. This important segment starts to address a growing affordability gap and a shortage of affordable housing.

Scale Is A Competitive Advantage

Large scale, vertically integrated multifamily developers have:

• In-house general contracting construction affiliate
• Internally generated real time construction cost data visibility
• Redundancy in due diligence review and process driven mitigation of blind spots
• Wealth of experience from repetitions
• Subcontractor familiarity with product, work scope, and overall volume provides significant pricing benefits
• Building with repeatable site development and building plans

How BCP Won The Deal

BCP’s Performance-Based Structure, designed to attract top-performing opportunities, incentivizes our investment partners to self-select only their “home run” projects with the lowest execution risk and highest return potential. Our fixed “High Pref” investor return structure compels our partners to pay a higher investor return in exchange for substantially increasing their overall profit when compared to traditional waterfall structures.

Project Details

Location Advantage

Located just north of downtown New Braunfels, Prose LonesomeQuail will be the nearest multifamily project by drive time to three large, under-construction industrial projects that will be bringing more than 1,000new jobs to north New Braunfels.  

Representative Images

New Braunfels Growth

The City of New Braunfels recently completed its 2024-2029 strategic plan, which revealed that employment in the city has grown by 64% since 2013, but 73% of residents still commute outside of the city for employment. This bodes well for the lease-up of Prose Lonesome Quail as our site is on the North side of New Braunfels where residents can easily access both I-35 South and I-35 North.

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