(#7204) Houston, $9.2m, equity: OFF-MARKET DEAL--Multifamily complex of 100+ doors, c-class, 1960s vintage, on sale
The purpose of this summary is to present a commercial real estate investment in Houston TX. Specifically, a multifamily complex comprised of 100+ doors on one property held by a single owner. Said owner is private, conservative, and not in the habit of selling many of his holdings, which currently stand at 1000+ doors in Houston alone. This particular property is C class, 1964 vintage.
An OM from May 2019 states that the T12 at the time was $620k. The asset grossed $121K in March at 90%+ occupancy. Extrapolating that to 12 months at 50% expense ratio, an NOI of $700K is possible. The CAP at that price would be quite attractive. Seller has simple terms: a non-binding LOI or PSA would spell serious intent and open the door to DD and a look at the books.