Iconic Development, LLC (“Iconic”) is pleased to announce the acquisition of a 175–unit, 223-bed student housing portfolio in Denton, Texas, serving the off-campus housing needs of University of North Texas students (enrollment > 36,000).  Iconic purchased the property in January 2009, with equity funded by a family office and other high net worth individuals and a 7 year Freddie Mac mortgage.

The properties are 0.2 and 0.3 miles from the University of North Texas in Denton, which is one of the fastest growing cities in the U.S.

The acquisition price represented a favorable cap rate due to the fact that few buyers were active in the 2008/2009 timeframe.  Iconic was able to finance the deal through Freddie Mac through Capmark's (now Berkadia) Designated Underwriting Service during a time when multi-family lending had all but ceased.  The business plan is to perform Iconic’s Propriety Green Rehab over 24 months while reinvesting cash flow from operations, stabilizing the asset and paying 10-14% cash-on-cash dividends during the anticipated four-to-five year investment period.

Established in 2007, Iconic Development is headquartered in Evanston, IL.  The firm owns a portfolio of more than 1,400 leasable units.  The firm’s principals, who have completed over $2 billion of transactions, invest their own capital in every Iconic investment.