Ranch@Sienna
Class A, 2016 vintage, 312 units, Houston TX
Projected Total Return
100%
Projected Annual IRR
16%
Projected Equity Multiple
2x
Target Bonus Depreciation
100%
Projected Total Return
100%
Target Hold Period
3 - 5 years
506(b) offering
Property Highlights
Ranch@Sienna is Class A property built in 2016. This is a very high quality asset with 136K as the Average Household income within one mile radius. This property is located in Award winning & Supply constrained Sienna Master Planned Community. This is a very strong submarket with limited supply.
PROJECTED RETURNS FOR 3 – 5 YEAR HOLD:
- Projected Average Cash on Cash Return: 8%+
- Total Return: 90%+
- Projected Annual IRR: 16%+
- Projected Equity Multiple: 1.9X
- Min Investment: $50,000
- This is 506(b) offering
- Target 100% Bonus Depreciation for 2022
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Highlights
Investment Preview
- 2016 vintage, stone exterior, majority 2-3 bedrooms, all in-unit W/D, large average floor plans, attached/detached garages
- Value add strategy: upgrade units on turns and increase rents to market rates; implement local, experienced professional 3P property management
- Upscale Building in an Upscale Master-planned Community
- 5 Year hold; multiple exit opportunities - exit via sale or refinance (given vintage, this is also a great candidate for a longer hold term hold via re-syndication at yr 3-5)
- NOT in flood zone
Location, Location, Location!
- Located in Award Winning & Supply Constrained Master Planned Community
- Ranked among the top 15 communities in the Nation
- Ranked as Top Community of the Year in Houston
- Numerous Retail Development Projects are in planning stages adjacent to the Property
- Located just off the Fortbend Tollway Expansion Providing Convenient Access Throughout Houston
Demographics
- High Growth Location with Affluent Surrounding Demographics and A-Rated Schools
- 92% Population Growth (2010-2020), 21% Projected Population Growth (2020-2025)
- $120,000 one-mile Median Household Income
- Homes Values up to $1.4MM near the Property
- All Local Schools have "A" rating (Niche.com) and given 9/10 Test Score Ratings (GreatSchools.org)
Strong Sub-Market Fundamentals
- Strong Submarket Fundamentals w/ No Apartment Units Under Construction
- 19.1% YoY Rent Growth in 2021
- 7.8% Projected Rent Growth in 2022
- The Property is receiving 14% Rent Increases on Recent LeaseTradeouts (Our Proforma Rent Increases are only 10%)
Outstanding Property Characteristics
- Majority 2-3 Bedrooms with Over 50% Attached Garages
- Among Largest Floorplans in Submarket
- Current Owner is Painting the Entire Exterior Now
- Sprinkler Systems in All Units
- Numerous A-Class Amenities
Great Value Add Opportunity
- 1st Generation Value Add - Seller is Original Owner/Developer
- Opportunity to Upgrade 100% of the Units & Increase Rents $250-350 on Average
- Opportunity to Provide a Technology Package & Added Community Amenities