The Waller Group is proud to present the 93.8% occupied, 16- unit stabilized property in League City, TX. League City is one of the most educated, highest-earning cities within the South Houston market. The subject property is located within a historic district that doesn’t permit future development of apartment units, ensuring solid barriers to entry and limited supply pressure. Current ownership has renovated the property by finishing a lot of the exterior work, including repaving the parking lots and upgrading the exterior paint. Some of the interior units have been upgraded, but many are prime for an upgrade to unlock higher rents. The subject property features a gas water boiler. The roof needs to be replaced. Current ownership received a bid estimating $25k to repair the roof. The property is available because current ownership is looking to reinvest proceeds.
Current ownership is achieving $94,130 in annual NOI. New ownership, based upon area rent comps, can raise rents up to $213 / unit, which is a $0.27 / sqft bump. With this bump, new ownership can achieve an annual NOI of $130,770. The subject property has the space for W/D connections to be added, as well. Rent comps of a similar vintage with W/D connections on upgraded interior units command $1.57 / SF for 1 BD units, and $1.45 / SF for 2 BD units, which is $83 / unit higher than current proforma rents. Additionally, there is the opportunity to implement additional income fees through application fees, late fees, pet deposits/fees, pet monthly fees, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. The property is currently managed by a 3rd party management company. 3rd party management can be extended to new ownership.