Los Cabos

los cabos4

Investment Rationale

  • Located in Texas City, Texas, a secondary submarket in the Houston MSA, nearby schools, commercial and employment centers, including Galveston, Texas City and Houston industrial centers.
  • Physically sound and efficiently constructed 1984 asset was purchased at a discount to replacement and to market.
  • Operational condition of asset at acquisition allowed the implementation of the SI Operational Plan to eliminate many inefficiencies that were causing the underperformance of the asset on both the income and expense side of the ledger.
  • Minimal deferred maintenance noticed during due diligence and allowed for a scaled back, micro-focused rehabilitation, achieving a good return on investment of rehab dollars.

Current Status

  • Fully stabilized and performing in excess of pro-forma estimates.
  • Favorable permanent financing terms.
  • Asset is in good repair with all rents cycled to market rates.