The Grove on Gladstell

Summary:

The Multifamily Group is pleased to present the exclusive offering of The Grove on Gladstell, an attractively renovated and well-located property in Conroe, Texas just north of the Houston MSA. Constructed in 1972, the property consists of 52 units averaging 1,016 square feet. The property offers one and two-bedroom floorplans. 80% of the units (42) have two-bedrooms with large family-style floorplans with 930 and 1,330 square feet. 18 of the two-bedroom units are loft-style allowing for the loft to be used as a third bedroom or second family room. The property is currently 90% occupied with strong occupancy rates in the submarket at 94% (Yardi). The asset is being offered free and clear. See a debt quote from Old Capital on pages 31-32.

Value-Add:

All 52 units have renovated interiors with updated flooring, countertops, cabinets, bathrooms, appliances, and fixtures. Although the property has a Clothing Care Center, we suggest adding washer/dryer hookups and installing in-unit washer/dryers in all units. Since the property has large units, this will appeal to families and compete with newer vintage properties that have this as a standard amenity. Water RUBS could be increased with the addition of the washer/dryer units.

Location:

Conroe is a growing city with several new developments and revitalization projects in the works along with a huge master planned development coming in less than 3-miles from the Grove on Gladstell. Grand Central Park is a 2,046-acre development with 1,600~ houses planned. Including 700,000 SF of retail and restaurant space with tenants such as Kroger, HomeGoods, Ross, and Michaels. With over 100,000 residents, the city has seen an annual growth rate consistently over 3% and grown more than 65% since 2010, according to the Conroe Economic Development Council. The property is right near Interstate 45 which makes this area highly sought after for commuters. Conroe was the fastest-growing large city in the U.S. from 2015-2016. The property has a high level of visibility off Gladstell with more than 12,000+ vehicles passing it per day. Target, Wal-Mart Supercenter, Sam’s Club, Quik-Trip, and many national chain restaurants are within a 10-minute drive on I-45. The Conroe ISD received an overall rating of A by Niche, and all Pre-K-12 schools are only a 2-10 minute drive from the property. Conroe is home to Lone Star College Montgomery (11-minute drive) and has a satellite campus of Sam Houston State University (5-minute drive). The asset is near 3 parks and close to the Lake Conroe area. Conroe Park North Industrial Complex – hiring 3,000+ employees – is about 7-miles away. ExxonMobil Houston Campus with over 10,000 employees and Chevron Phillips Chemicals with over 1,200 employees are both between 10-15-miles away. Conroe is directly north of Houston and downtown Houston is within 40-miles. Houston’s MSA population is projected to grow to 8 million residents in the next 5 years. Houston has a global economy and is the largest city in Texas.

Property Description

• Great Unit Mix With More Than 80% of Units 2 Bedroom and Average Unit Size Greater Than 1,000 SF

• Qualifies for Agency Financing at 70% LTV

• Stable Property With Day 1 Double Digit Cash Flows

• Average Rents of $1,101/Month; 90% Current Occupancy

• Great Location off Interstate 45 for Commuting to Jobs, Schools, and Daily Necessities