Reserve at Channelview Gardens

Reserve Channelview2

Investment Rationale

  • Well Located on a busy thoroughfare in the strong blue collar Houston submarket of Channelview with , nearby industrial centers, Sheldon ISD schools, commercial and Interstate 10.
  • Good unit mix with sound construction and a good intrinsic amenity list allowed for effective allocation of rehab funds.
  • Negotiated favorable acquisition terms with distressed seller due to poor condition and low occupancy.
  • Prior to acquisition, SI due diligence processes revealed that inefficiencies were due to largely to ineffective actions by capital-poor current ownership, and application of a well-directed management and rehabilitation plan would result in substantially improved operations.
  • Negotiation of master lease agreement with large corporate client allowed for quick, efficient lease up of renovated units at market rates, pushing NOI well above pre- acquisition estimates.

Current Status

  • After stabilization and a hold period, Reserve at Channelview Gardens Apartments was sold in 2007, in a market rate transaction.