Property Details
Below Market Rents  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Lakeside Place Apartments

Houston, TX

Multi-Family Property
Lurin Dallas, TX
Lurin
  • IRR 27.6%
  • Equity Multiple 2.1x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash N/R
  • Stabilized Cash on Cash 12% in Y3
  • First Distribution Dec 2021
  • Distribution Frequency Quarterly
  • Asset Profile Value Add
  • Loan-to-Value 74.6%
  • Current Occupancy 86%

About this Property

Address 201 Wilcrest Drive
Square Footage 780,217 sq. ft.
# of Units 734
Year Built 1976
Year Remodeled 2018
Current Occupancy 86%
Market Occupancy 93%
Current Average Rents $0.90/sq. ft.
Average Market Rents $1.16/sq. ft.
Purchase Price $66,000,000
Price/Unit $89,920
Stabilized Loan to Value 75.1%

Why you are buying the Property?

The acquisition represents an opportunity to acquire a Class B garden-style community in one of the best-performing multifamily markets in the Houston metro. Lurin plans to use its management and construction teams to start interior and exterior renovations and to execute an aggressive marketing campaign. By strategically repositioning the property, Lurin will market the property’s desirable location to bring rents and occupancy in-line with properties of similar vintage in the immediate sub-market. The property is currently 86% occupied and current effective rents are over 20% below market.

 

What is your investment strategy/business plan for the Property?

Lurin plans to upgrade the remaining 340 units bringing every unit in line with the high-end standard in the market including washer dryer connections. This includes faucets, sinks, cabinet hardware, blinds, paint cabinets, new cabinet fronts, new counter tops and backsplash. Every unit at the property has received new paint, carpet and stainless-steel appliances. Lurin will bring remaining units to upgraded standard by adding fixtures and lighting packages, as well as washer and dryer connections in remaining units. Lurin anticipates spending approximately $2,900/unit on exteriors and $9,500/unit on interiors. Exterior works would include roofs, landscaping, HVAC/mechanical, repairing patio fences and balconies, lighting, gates/fencing and painting the building exteriors. As a result, Lurin will seek to increase rental rates on average $189 per unit.

 

What are the first 3 steps you will take to maximize cashflow and property value?

Lurin plans to use its management and construction teams to start interior and exterior renovations and to execute an aggressive marketing campaign. The total renovation budget is $12,250/unit taking the property rents more in-line with similar renovated comps and market occupancy in-line with what we are achieving at our nearby asset – The Estates at Avenstar (FKA Monte Carlo)

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. Current effective rents are about $252 below the submarket Class B average, representing a significant upside potential
  2. Property was under contract for $74,250,000 right before Harvey -- $8,250,000 more than our contractual price and before the entire property was completely renovated. The property has since been injected with $44 million in order to remediate and restore the Property damaged by the Hurricane.
  3. We manage another property in the sub-market where we are hitting proforma rents on partially upgraded units. The same proforma rents are underwritten for Lakeside. Therefore, given our market knowledge and experience in the sub-market, coupled with an attractive purchase price we believe this is an attractive opportunity to expand our footprint in the Houston area.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

  • Property is located in the Briar Forest submarket, directly across the street from Lakeside Country Club and in the affluent residential enclave known as Lakeside Forest where current home prices average $690,545
  • Lakeside sits on the best side of Wilcrest Drive which has 19,634 cars daily and 238,217 employees within a 5 miles radius
  • Property was under contract for $74,250,000 right before Harvey -- $8,250,000 more than our contractual price and before the entire property was completely renovated (276 first floor units newly renovated post Harvey)
  • Since then the property has been injected with $44 million in order to remediate and restore the property damaged by the floods caused by the controlled release of water from the Addicks and Barker Reservoirs post-Hurricane Harvey
  • Current effective rents are about $252 below the sub-market Class B average, representing a significant upside potential
  • Capital renovations totaling $12,250 per unit will generate a $189 per month rent premium over unrenovated units

 

How are risks being mitigated during the hold period?

Lurin's multi-family platform employs a straightforward investment strategy. They seek to acquire distressed and stressed assets in favorable locations at significant discounts to replacement costs, maximize value by addressing any property or operational issues through aggressive asset management and targeted value-add initiatives, and seek to capitalize on the investment opportunity once their objectives are accomplished.

Lurin has a fully integrated platform that manages all aspects of acquisitions, construction, asset management, property management, capital markets and dispositions. This integrated platform enables the firm to effectively execute its business plans and deliver optimal performance during each stage of the value creation process. The firm’s primary focus to its investors is to generate attractive risk adjusted returns across market cycles while protecting investor capital by acquiring assets at a significant discount to replacement cost.

About this Property

Address 201 Wilcrest Drive
Square Footage 780,217 sq. ft.
# of Units 734
Year Built 1976
Year Remodeled 2018
Current Occupancy 86%
Market Occupancy 93%
Current Average Rents $0.90/sq. ft.
Average Market Rents $1.16/sq. ft.
Purchase Price $66,000,000
Price/Unit $89,920
Stabilized Loan to Value 75.1%

Why you are buying the Property?

The acquisition represents an opportunity to acquire a Class B garden-style community in one of the best-performing multifamily markets in the Houston metro. Lurin plans to use its management and construction teams to start interior and exterior renovations and to execute an aggressive marketing campaign. By strategically repositioning the property, Lurin will market the property’s desirable location to bring rents and occupancy in-line with properties of similar vintage in the immediate sub-market. The property is currently 86% occupied and current effective rents are over 20% below market.

 

What is your investment strategy/business plan for the Property?

Lurin plans to upgrade the remaining 340 units bringing every unit in line with the high-end standard in the market including washer dryer connections. This includes faucets, sinks, cabinet hardware, blinds, paint cabinets, new cabinet fronts, new counter tops and backsplash. Every unit at the property has received new paint, carpet and stainless-steel appliances. Lurin will bring remaining units to upgraded standard by adding fixtures and lighting packages, as well as washer and dryer connections in remaining units. Lurin anticipates spending approximately $2,900/unit on exteriors and $9,500/unit on interiors. Exterior works would include roofs, landscaping, HVAC/mechanical, repairing patio fences and balconies, lighting, gates/fencing and painting the building exteriors. As a result, Lurin will seek to increase rental rates on average $189 per unit.

 

What are the first 3 steps you will take to maximize cashflow and property value?

Lurin plans to use its management and construction teams to start interior and exterior renovations and to execute an aggressive marketing campaign. The total renovation budget is $12,250/unit taking the property rents more in-line with similar renovated comps and market occupancy in-line with what we are achieving at our nearby asset – The Estates at Avenstar (FKA Monte Carlo)

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. Current effective rents are about $252 below the submarket Class B average, representing a significant upside potential
  2. Property was under contract for $74,250,000 right before Harvey -- $8,250,000 more than our contractual price and before the entire property was completely renovated. The property has since been injected with $44 million in order to remediate and restore the Property damaged by the Hurricane.
  3. We manage another property in the sub-market where we are hitting proforma rents on partially upgraded units. The same proforma rents are underwritten for Lakeside. Therefore, given our market knowledge and experience in the sub-market, coupled with an attractive purchase price we believe this is an attractive opportunity to expand our footprint in the Houston area.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

  • Property is located in the Briar Forest submarket, directly across the street from Lakeside Country Club and in the affluent residential enclave known as Lakeside Forest where current home prices average $690,545
  • Lakeside sits on the best side of Wilcrest Drive which has 19,634 cars daily and 238,217 employees within a 5 miles radius
  • Property was under contract for $74,250,000 right before Harvey -- $8,250,000 more than our contractual price and before the entire property was completely renovated (276 first floor units newly renovated post Harvey)
  • Since then the property has been injected with $44 million in order to remediate and restore the property damaged by the floods caused by the controlled release of water from the Addicks and Barker Reservoirs post-Hurricane Harvey
  • Current effective rents are about $252 below the sub-market Class B average, representing a significant upside potential
  • Capital renovations totaling $12,250 per unit will generate a $189 per month rent premium over unrenovated units

 

How are risks being mitigated during the hold period?

Lurin's multi-family platform employs a straightforward investment strategy. They seek to acquire distressed and stressed assets in favorable locations at significant discounts to replacement costs, maximize value by addressing any property or operational issues through aggressive asset management and targeted value-add initiatives, and seek to capitalize on the investment opportunity once their objectives are accomplished.

Lurin has a fully integrated platform that manages all aspects of acquisitions, construction, asset management, property management, capital markets and dispositions. This integrated platform enables the firm to effectively execute its business plans and deliver optimal performance during each stage of the value creation process. The firm’s primary focus to its investors is to generate attractive risk adjusted returns across market cycles while protecting investor capital by acquiring assets at a significant discount to replacement cost.

Offered By

Lurin

Lurin

Dallas, TX

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Assets Under
Management

Currently
$535MM 10+ assets
Exited
$52MM less than 10 assets
Portfolio LTV
72%  
Historical
Realized Returns

Total IRR
N/R  
Equity Multiple
1.65x  
Annual Cash
N/R  
Years Of
Experience

As Principals
20+ years  
In Business
4 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Lurin as of 11/15/2019.
Assets Under
Management

Currently
$535MM 10+ assets
Exited
$52MM less than 10 assets
Portfolio LTV
72%  
Historical
Returns

Total IRR
N/R  
Equity Multiple
1.65x  
Annual Cash
N/R  
Years Of
Experience

As Principals
20+ years  
In Business
4 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Lurin as of 11/15/2019.

Financials

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Offering Financial

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Location Details

Houston, TX

An opportunity to acquire a Class B garden-style community in one of the best-performing multifamily markets in the Houston metro. The local submarket is ranked #5 out of 42 total submarkets for overall performance, and the Class B rent levels are ranked #3 in the metro. Lakeside Place is directly across from the exclusive Lakeside Country Club and adjacent to the Lakeside Forest neighborhood, where current home prices average $690,545. The average household income in a one-mile radius is $127,024. Residents are located within 15 minutes of the Energy Corridor, Westchase District and Memorial City with multiple highway and local thoroughfare commute options. The property sites on over 32 acres and has approximately 2,400 feet of frontage and visibility on Wilcrest Drive with exposure to 19,634 cars daily. In addition, the property has 13 grocery-anchored shopping center located within ten minutes and is within walking distance of the Buffalo Boyou Trails and Terry Hershey Park.

Documents

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Offering Agreement Documents

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