Sunridge Villas

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Address: 10001 Westpark Drive, Houston, Texas, US
Created date: December 7, 2023
Date last updated: February 7, 2024

Property Description

Waller Group is proud to present a fractional portfolio of 20 unit townhome style condominiums in the Westchase submarket of Houston, TX. The portfolio consists of 10 – 1 bed / 1.5 bath unit (905 SF), 6 – 2 bed / 1 bath units (808 SF), and 4 – 2 bed / 2 bath units (989 SF). Interior renovations were completed in early 2020, including new kitchen countertops, sinks, appliances, new bathroom fixtures and vinyl flooring. Externally, eight of the buildings have been repainted in addition to resurfacing of the stairwells. The HOA recently replaced the roofs this past year. Woodchase Park was recently opened (October 2021) just steps away from the property and accessible via sidewalk and features lots of food trucks, activities, and events. Built in 1983, the units are located inside of a larger condominium community consisting of 67 total units. Each unit pays a monthly $310 HOA fee that includes insurance (covers exterior/fixed structures inside unit), water, sewer, trash, and exterior maintenance needs. The community also offers a newly re-paved pool. Owning roughly 30% of the properties in the community gives the new owner a majority in voting rights, allowing influence over how HOA fees are spent.(new owner can take a board seat and control the HOA board). This level of control is significant in a situation such as this, giving the new owner the power to direct spending and maximize value of improvements and monthly costs. New owner can direct the HOA to do some preventative work to lower the HOA fees across the board. Additionally, current owner has an additional 10 units (currently vacant) that are available for purchase once current ownership leases up and stabilizes the units. Current owner is open to adding a ROFR to purchase contract to leave this option open to buyer. New ownership has the opportunity to implement interior renovation program with black or stainless steel appliances (from white currently), vinyl plank (from vinyl sheet/carpet currently), cabinet front door resurfacing, light fixture upgrade, granite countertops, adding full-size or stackable W/D in each unit, and upgrading covered parking lot covers. Current rent comparables achieving top of the market rent in the submarket contain vinyl plank flooring, black appliances, W/D connections, and HVACs, but lack granite countertops, stainless steel appliances, stackable or full-size W/D, and updated cabinetry, so there may be additional room to push rents beyond where market rents currently stand. An additional income opportunity would be adding in-unit stackable or full-size W/D units and charging $50 / month, adding lease violation fees, month to month fees, billing back for pest control fees, adding pet deposit/fees, and charging for parking. New ownership, based upon area rent comps, can raise rents up to $245 / unit, which is a $0.27 / sqft rent bump. With this bump, new ownership can achieve an annual NOI of $137,130. New owner also has the opportunity to use Houston Housing Authority voucher program to increase rents. The property sits in a zip code eligible for Tier B payment standards. 1 BD payment standard is $1,532 and 2 BD payment standard is $1,835. The property is currently managed by a 3rd party management company for the greater of 6% of EGI or $60 / unit. Current management is willing to stay on for new owner. Proforma financials were underwritten with a 6.0% management fee.

Key Property Information

Listing Status: Available
Listing Type: Highest & best offer
Multifamily type: Apartments
Price: $1,400,000
No. of Units: 20
Cap Rate: 8.01%
Opportunity Zone: No
Price per unit: $70,000
Address: 10001 Westpark Drive, Houston, Texas, US

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