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%.