Rosemont Apartments – 776 Units

Investment

Team Strengths
60 years of combined experience in commercial real estate with more than 50 transactions executed successfully.

Market/Submarket
Due to the high barriers to entry in many Houston municipalities such as Webster, League City, and Seabrook there are currently no multifamily properties under construction within the submarket, which suggests strong future rent and occupancy fundamentals for the Property. Residents at the Property have access to nearby Baybrook Mall, providing high end shopping in addition to convenient retail access for everyday needs. In addition, the Property is zoned to the award winning Clear Creek ISD (sought after school district).

Through an extensive capital improvement budget ongoing expenses will be reduced during the hold period, rents will be increased $180 – $450 per unit based on comparable evidence.

Deal Structure
Single Purpose Entity (SPE) owned by a Texas limited partnership.

Rehabilitation and Rent Improvement Program

Due to the high barriers to entry in many Houston municipalities such as Clear Lake, there are currently no multifamily properties under construction within the submarket, which supports strong future rent and occupancy fundamentals

Income Improvement

• Team has executed 22 similar projects with over 60 years Multi Family development leadership experience
• The market / sub-market has high market demand for rental stock which supports rehabilitation objectives
• Net Operating Income will be increased via phased renovation program, expense improvement campaign and attracting high quality tenants while avoiding void periods

Renovations

An extensive capital improvement budget coupled with targeted expenses reduction program during the hold period will result justify rent increases averaging between $250 – $300 per unit based on comparable units in the sub market neighborhood

• Detailed inspection conducted to ascertain upgrade scope for interior and exterior
• Schedule of renovation compiled as basis for units turnover per quarter and for exterior renovations
• Compiled bottoms up Budget for Capital Expenses
• Target rent after renovations ascertained based on market surveys

Expenses Improvement

• Conducted average cost analysis to operate comparable properties vs. seller base line to identify areas of improvement
• RUBS (make the tenant pay for common utilities)
• Evaluated cost benefit analysis for water consumption reduction plan with low flow faucets