Acquisition: Ranchwood

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Ranchwood Apartments was acquired in April 2014 from a non-profit seller and was brokered by Mr. Hashir Salim with KET Enterprises. The property was 60% occupied at rents only 62% of market rents and was beset by code deficiencies cited by the City of Houston. After due diligence was completed the acquisition was closed using debt secured through Peyton Jones with Green Bank.

The Plan

With 60% property occupancy at acquisition, we are able to more selectively reshape rent roll to market rates to minimize vacancy-driven carrying costs. In addition, improved for- profit management in place yields better allocation of resources as well as better client service levels and stronger leasing activities. Finally, the property receives an extensive renovation package to support the reposition as well as address deferred maintenance issues including:

  • New Hardie siding and paint
  • Roof replacement on all buildings
  • Fencing, access gate and parking lot repairs
  • Playground, signage, and landscaping
  • Code and building systems improvements
  • Unit interior upgrades
  • Security and operational improvements

In addition, the SI plan incorporated the assets heart of the Willow Watering Hole location including access to hiking and jogging trails from property, as well as the scenic views associated with the park.

Summary

Currently, project is well ahead of expectations. Rental rates are well in excess of pro forma estimates.
Property maintains a high occupancy while rents are cycled to market and renovated units are occupied.
Maintenance expenses below estimates due to economies of scale provided by sister asset located nearby, while service levels remain high.

Before

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After

Ranchwood_2346_600x400 Ranchwood_2351_600x400 Ranchwood-Exterior Ranchwood-Interior-(2) Ranchwood-Interior