Asset Overview

  • 180 Unit Apartment Complex

  • Houston, Texas

  • Value Add
  • Core Plus

Asset Details

CalTier Fund 1 invested in 506 South Apartments, located in Houston, Texas, investment, in December 2021 with our real estate partner, Cloud Capital.

Cloud Capital recently gave us this update on the market:

There is serious demand for clean and affordable apartments in Clear Lake/Webster submarkets next to NASA. In fact, one of the comps to 506 South sold for $126K/unit, which is $27K/unit higher than our purchase price for 506 South. That’s a $4.8M delta!!!!

The Property Manager is already receiving positive feedback since taking over. This has led to the residents having a much more positive experience with upgraded living spaces, quick maintenance response times, and responsive management, among other feedback from the residents.

Many of the Deferred Maintenance/CapEx projects are complete, including the following:

  • Refresh of Laundry Rooms 1&2
  • Mail Room Refresh
  • Landscaping Refresh
  • Removal of Tree Stump
  • Gutter Cleanout
  • Carport Repair
  • Tree Trimming
  • Staircase Welding and Repair
  • Balcony Repairs
  • Replacing Support Beams
  • Replacing Boilers 1&2
  • Replacing Sewer Line in Building 11
  • Installing new LED exterior lighting
  • Removing all Rotten Fencing
  • Installation of new security cameras
  • Power washing
  • Painting the Exterior
  • Repairing the Sidewalks
  • Remodeling the Leasing Office
  • Refreshing the Amenities and Pool

Currently, 506 South is 86.67% occupied and 92.22% pre-leased. New leases are increasing by 19.28% year on year and renewals are increasing by 6.65%.

View Our Other Investments

“Everyone should have access to the best commercial real estate investments. Not just the 1%.”

CalTier CEO & Founder
Matt Belcher

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