1) The Park Terrace III - consists of three properties managed as one. The offering is a value enhancement opportunity. The properties are being offered on an "All Cash" basis (Buyer to acquire a new loan). The subject sites consist of three non-contiguous tracts of land located at 8001 Brockton Street, 8250 and 8265 Park Terrace Boulevard, Houston, Harris County, Texas 77017. 8001 Brockton is approximately 2500 feet from the two Park Terrace tracts. Park Terrace III consists of 3 "C" grade garden style apartment properties with a total of 46 units located in 5 buildings. There is one laundry room at 8265 Park Terrace and it services all 3 properties. The owner has performed $450,000 or $9,783/Unit in renovations across the 3 properties, which includes new roofs at two of the properties. This area has a blue collar workforce demographic with housing in the area being comprised of mostly B and C grade workforce housing. The properties are all individually metered with window units in all 1B units and HVAC in the 2B units. There is no water RUBS implemented at any of the 3 properties, for additional income a new owner may be able to implement a water RUBS.
2) Location & Accessibility -The subject properties are located in a neighborhood that provides good access to major freeways, employment areas, museums, universities, public parks, and recreation facilities. Due to the subjects' proximity to several large employment centers, demand for residential and commercial property is good and should remain high within the neighborhood. The time spent commuting to the Central Business District is relatively short when compared to the average commuting time from other areas in the Houston area. As it is with any area near the 610 Loop, this area has realized signs of revitalization and growth in the recent past.
3) Strong Rent Growth - The properties are located in the U of H / I-45 S sub-market of the Houston MSA. This sub-market generally has above average occupancies when compared to the Houston Market average. To further increase potential income, a new owner could continue the interior renovation of the units to allow for additional upside in the rents and implement a RUBS for water.