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Greetings!
I am excited to share that after years of patiently sifting through hundreds of properties in an overheated market, we've finally uncovered a unique opportunity that stands out from the rest. This deal represents a clear departure from the inflated valuations and overpriced mediocre multifamily properties that have plagued the market over the last few years. With solid fundamentals and a compelling return profile, it's a rare chance to secure a sound investment in an uncertain landscape. I’ll personally be investing significantly in this one myself.
I'm excited to introduce Woodcrest Apartments, a prime 224-unit multifamily complex in Lubbock's desirable southwest. With its proximity to downtown and Texas Tech University, it's a promising investment opportunity.
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The property encompasses 181,602 square feet, featuring units averaging 811 square feet and achieving an effective rent of $806 per unit.
The complex boasts an impressive occupancy rate of over 88%! (Feb), underscoring its market appeal and investment viability (despite the current management inefficiencies and lack of reinvestment into the property).
Highlights of the deal:
📌 Motivated Seller!
📌 Incredibly low basis of $58,500/door (~$5M Discount)
📌 Assumable Debt @ 4.29% thru May 2026
📌 Value-add upside 🚀 with cashflow 💸 in year 1!
📌 Lubbock has over $2B in new investment creating 10,000+ new jobs (This is huge for a market with only 330K people).
📌 Lubbock is the Hub City of West Texas and hosts a diverse economy spanning healthcare, technology, agriculture, manufacturing, education, and retail, solidifying its status as a regional economic powerhouse.
📌 Conservative underwriting and projections
📌 Strong Property Management team with over 15K units under management
📌 Located in (the SW corridor of Lubbock which is strongest part of town!)
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Why We Like This Opportunity
📌 Acquiring the property at a 25% Discount
📌 1985 B Class asset, 224 Doors
📌 Growth Market
📌 Lubbock is not experiencing the new multifamily supply issues many other markets are dealing with (which means we will continue to see rent growth)
📌 Exterior upgrades to pool, office and amenities
📌 100% classic interiors - ability to raise rents by $80+
📌 Significant amount of bonus depreciation available
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Additional Investment Projections
📌 Cash on Cash (Average): 7%
📌 IRR: 16.3%
📌 Equity Multiple: 2x
📌 Investment duration: 5 years
📌 Minimum Investment: $50,000
📌 Expected Closing Date: 4/22/24
📌 Funding Deadline: 4/20/24 – Accepting reservations NOW
📌 Cash or IRA funds welcomed
Next Steps:
The investment portal is coming together and should be available soon. If you are interested, you need to MAKE A RESERVATION.
We anticipate a high level of interest in this deal, so if you are considering placing an investment, we recommend you secure a reservation NOW! Investments will be accepted on a first-come first-served basis. Preference may be given to those with $150k or more in an event of oversubscription.
For any inquiries or further information, please feel free to respond to this email or schedule a 30 min block with me.
IMPORTANT NOTE: This is a 506(B) private offering which requires investors in this deal to have a relationship with us. Please don’t forward this email or share with others. If you know someone else who may be interested, please make an introduction. If you make an introduction to someone who someone who eventually invests with us, we’ll send you a free Yeti coffee mug!
Best regards,
