Vintage Asset with Strong Occupancy and Value-add Opportunity

Windwater was acquired in 2012 and since closing the owner has been focused on maintaining higher occupancy and limiting disruption to tenants rather than executing any material value-add renovations. The Property is currently 95% occupied with a 5-year average occupancy rate of 95.3%. Coupled with 100% original interior finishes, this acquisition presents a tremendous opportunity to physically reposition the asset and drive in-place rents from $1,051 to $1428 post renovation. This represents a 10.8% mark-to-market and $264 renovation premium.

Best-in-Class Sponsorship

Our operating partner, The Bascom Group, is an Irvine based private equity firm specializing in multifamily, commercial, non-performing loans, and real estate related investments and operating companies. Bascom has completed over $20.6 billion in multifamily value-added transactions encompassing 349 multifamily properties and over 90,120 units Since 2005. Bascom has been very active in Texas, acquiring 40 properties totaling 14,569 units, including 9 properties and 3,093 units in Houston. Bascom has ranked among the top 50 multifamily owners in the U.S.

Reasonable Basis

Bascom is acquiring the property for $135k per unit. This represents a 12% and 33% discount to recent comparable trades and replacement cost, respectively.

See the investment memorandum for additional detail and sources.