Asset Details
CalTier Fund 1 invested in Lakewood, an 88-unit garden-style value-add multi-family asset located just outside Houston, Texas in March 2021.
Our real estate partner and the on-site team have worked extremely hard to execute on the business plan, surpassing the original 4-year projections after just 12 months.
Lakewood has garnered quite a reputation and achieved one of the highest rent growth and occupancy in the entire Texas City submarket.
In 2022, Net Rental Income increased 10% as we saw 13% new lease and 7% renewal growth.
Currently, occupancy is at 94.32% and pre-leases at 95.45%
Renovations on the 88 units are complete, including updating each unit with stainless steel appliances, repainted cabinets, sprayed laminate countertops, wood-style flooring, modern lighting, and upgraded hardware and plumbing fixtures. These upgraded units are garnering a 16.4% average rent increase per unit.
Overall, rents for workforce housing, like Lakewood, in the job-rich submarket have increased by 44% over the past decade compared to 36% in the Houston metro market and in general, the greater Houston area ranks in the Top 10 in the U.S. for projected migration from 2021-2023.*
To date, based on the monies invested in Lakewood, the CalTier Fund has received a 23.4% return on its investment.
Updates About This Asset
Property update: Lakewood Apartment acquisition in Houston, TX
The project is expected to generate an annualized return of roughly 15.3%, net IRR, by CalTier Fund I LP partners. Disclaimer: The realized return on an individual project may vary significantly from your portfolio-level return as a CalTier investor. The CalTier Fund investment in the 88-unit apartment home community in a suburb of Houston officially closed in late March 2021. The property was sourced off-market through a proprietary relationship with the owner. The submarket continues to show strength in ...
