Brookhollow Apartments, Dayton, TX

Brookhollow Apartments is a 108,096 square foot multifamily complex situated on a 5.8075-acre lot in Dayton, Texas.

Property:

Built in 1983, the property comprises 128 units. It offers both 1- and 2-bedroom layouts, with unit sizes ranging from 668 to 962 square feet. With an impressive occupancy rate of 95%, Brookhollow Apartments represents a prime investment opportunity within the rapidly growing Houston Market. The property features an array of modern amenities, including a fitness center, swimming pool, playground, and has easy access to major highways.

Strategy:

We will nvest over $1m in capital for property renovations to improve curb appeal, interior and exterior amenities, and interior unit finishings. This will allow us to increase rents. We will also implement other sources of revenue while improving operating expenses.

Highlights:

• Very attractive purchase price at $60k a door with average rents of $975 per door.
• Cash-flowing asset: high historical occupancy (over 90%,), enabling a 6.5% CAP rate at acquisition.
• Market demand: over the past three years, rents in the Liberty County submarket have increased by 9.2%, outpacing the Houston market’s average of 7.5%.
• Solid location & demographics: within a 3-mile radius, the areas affluent demographics showcase an average household income of $62,000.
• Great debt financing: ability to assume a $5,060,000 full-term interest-only Fannie Mae loan expiring in 2030, at 3.25% interest rate.
• Income upside potential: multiple paths to raise rents through improvements on curb appeal, interior and exterior amenities, and interior unit finishings.