1) Houston Income Properties, Inc. is pleased to present investors with the opportunity to acquire The Pointe Apartments, a class "C", 517 unit, approximate 50% occupied, garden style community located in Pasadena, Texas.
2) Property Highlights - The Pointe is a value add opportunity. The housing in the area is mostly B and C grade workforce housing. The property had some water damage to some of the units during Harvey in 2017 when an unprecedented 50 inches of rain fell in the area. Even though some units received water damage from the event, the property does not lie in a flood plain and the owner did not have flood insurance to cover the damage. There are over 100 units that are down due to water damage. The owner has cut the sheetrock out of all the water damaged units and is fixing them as they are needed. 10 of the 47 buildings have roofs that were put on after Harvey. There is a potential value add opportunity post renovation of the property which would include bringing the down units back on line. The property is an "All Bills Paid" property. Post rehab, a new owner may be able to rebill some or all the utilities or raise the rents to meet the other properties in the area that are all bills paid. This area has a predominately Hispanic demographic and is situated off IH-45 between the Port of Houston and the Clear Lake area of southeast Houston.
3) Location and Accessibility - The Pointe Apartments’ location in the Pasadena area is ideal since it resides in one of the areas major employment centers, the Bay Area Houston Partnership. More than 60% of the residents in this area live within 29 minutes of their work (compared to the 75 minute average for the City of Houston). The location gives convient access to Highway 225, I-45 and Beltway 8, which allow access to the major employment centers in the area, including the Houston CBD., the Port of Houston, the numerous refineries along Highway 225, the Bayport Industrial District in LaPorte and the Clear Lake area where NASA is located.
4) Strong Rent Growth -The The property is located in the southeast sub-market of the Houston MSA. This sub-market generally has above average occupancies when compared to the Houston Market as a whole. The Pasadena market is a "barriers to entry" market limiting the amount of new multi-family construction, which limits competition in the area which keeps values higher on the existing communities.