Multi-Housing

Life at Emerald Oaks

7440 TX-6 Hitchcock, Texas United States 77563
Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A
Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A

Documents

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Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Attributes

Year Built 2001
Building Area
Land Area
Number of units 160

Property Description

The Life at Emerald Oaks is garden-style, low-density multi-housing community in Hitchcock, Texas, centrally positioned between Houston and Galveston with 20-minute commutes to both destinations. The 2001 vintage,160-unit asset is immaculate, well-maintained, and primed for growth in a barriers-to-entry submarket. It offers a natural pathway to significantly raise income due to the ability to increase rents on legacy LIHTC units that are transitioning to market-rate, the continuation of value-add interior renovations, and the opportunity boost other income with utility reimbursements and monetization of garage rentals on the converted units. The Life at Emerald Oaks is available on an All Cash basis.

Investment Highlights

  • Ultra-low density, large site with abundant, park-like greenspaces
  • Well-maintained with little to no deferred maintenance
  • Strategic unit mix for suburban location with 70% 2B and 3B units
  • 160 detached garages available (1:1 ratio with units)
  • Exiting Low Income Housing Tax Credit (LIHTC) program, completed the Qualified Contract (QC) program, and will complete decontrol period in December 2021
  • 40% of units or 63 units total will be available to convert to market-rate units and renovate at end of decontrol period, or when the units turn, whichever occurs first
  • LIHTC units currently average $226/month lower rents than market-rate renovated units
  • 11 classic units available to upgrade on turns
  • Add $36K in incremental revenue per year on converted LIHTC units with RUBS implementation
  • Increase other income by adding and increasing garage fees, which currently are available for no charge or at below-market rates of $15-$30/month
  • Add washers/dryers to classic and converted LIHTC units for $40/month premiums
  • Implement valet trash for additional $20/month fee on all 160 units
  • Additional rental income, utilities reimbursement, other income gains should equate to an incremental $800K+ of NOI per year
  • Increase competitiveness by adding poolside and courtyard grilling areas and by adding amenities with underutilized green spaces
  • Market-rate comparables in submarket are averaging 31% higher average rents
  • 47% premium to own in area and constrained renting options with only 29% of area housing stock as renter-occupied
  • #5 ranked multi-housing submarket in Houston (out of 42) for overall performance, including 5.8% rental rate growth over the past 6 months (annualized)
  • Zoning restrictions in Hitchcock prevent multi-housing overbuild, resulting in limited existing Class A supply
  • Class A rents have increased 34% in submarket since 2015
  • 2.9% and 3.3% projected average annual rent growth over the next three years in submarket by Axiometrics and YardiMatrix respectively
Last Updated Date: 20 Oct 2020
Christopher Young
Christopher Young
Senior Director, Capital Markets
License details
TX-630674
Joey Rippel
Joey Rippel
Senior Director, Capital Markets
License details
TX-654288

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Last Updated Date: 20 Oct 2020

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