Number of Units: 160 units
Purchase Price: $6,310,000
Purchase Date: June 12, 2015
City: Lake Jackson, TX
Price Per Unit: $39,437
Cap Rate: 10.62%
Cash On Cash: 12.92%
Rentable Sq. ft: 125,267
Price Per Sq. ft: $50.37
Land: 9.01 acres
Estimated Present Valuation:
Value Add
This asset had many things that we could improve to increase the value. Some features that needed improving were the Leasing office building, as well as two buildings had underground plumbing issues and were offline. In addition, the parking lot needed to be repaved, two buildings had foundation problems and many units needed a major upgrade. We knew we can correct these and more things and make it a great community to live in. Vinney had an eye on this asset for the last two years. We are able to increase rents for the property and charge more for the upgraded units.
Actual Performance
The returns to investors have been strong. The job market in this property’s area was and is very strong. We were able to increase rents as the leases came due for renewal. By bringing a strong Management team to the property, the asset has been performing very well.
Cash Flow Distributions
We are very excited that the asset is managed by top Community Manager with a strong staff under our supervision. The investors have been getting regular quarterly Cash Flow checks since the purchase.
Renovations
Since we bought the asset, renovations have been constantly executed to make this an excellent community to live in. In just 3 months, we have initiated 37 renovation projects and successfully completed many of them. We are changing the signage, curb appeal, trimming and removing trees, changing balconies, doors, staircases and landings. Sidewalks and the grounds of the property have been repaired also.
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