Current AUM:
$116,575,000
Equity Placed:
$19,400,000
Total Assets Under Contract:
$34,500,000
Projected Capital Raise:
$18,462,000
Stabilized, Cash Flowing B-Class
Asset in Houston, TX
Key Metric Overview:
Projected Equity Raise:
$18,462,000
Total Cost:
$39,162,000
Loan Amount:
$20,700,000
Total # of Units:
236
Year Built:
1978
Projected Target Average Cash on Cash: Raise:
7%+
Target IRR:
7%+
Target Equity Multiple:
1.7x
Zocalo is a fully stabilized, 96% occupied 236 unit B-Class asset in the Spring Branch submarket ofHouston, TX.The property has received north of $11m in CapEx from previous ownership making it adesirable, turn-key, cashflowing asset. The property is located next door to our most recentacquisition, Hollister Oaks.
Our business plan is to implement a light value-add componentthat includes adding washer & dryerconnections to 1 Bedroom Homes, installation of smart-home technology to modernize theproperty (locks & thermostats),installation of a pet washing station at the dog park, and addingadditional covered parking.
Implementingtheseimprovements tohelpcapture market rents,and drivingefficienciesinexpenses through market concentration willallowus to capture the remaining upside while cashflowing from day1.
1920 Hollister St, Houston, TX 77080
Property Type:
Multifamily
# of Units:
60
Year Built:
2017
Key Metric:
Loan Amount:
$7,924,812
Date of Acquisition:
February 2022
Cap Rate:
4.00%
Market Value:
$10,575,000
Equity Placed:
$3,700,000
Target Average Cash on Cash:
6%+
Target IRR:
15%+
Target Equity Multiple:
1.9x
HollisterOakswas acquired due to its attractive location, age, and upside potentialdue to poormanagement.
It was discovered during due diligence and confirmed post-acquisition that the previous property managerwas allowing lowquality tenants in this Class-A asset. Many long term leases were $200-300+ below market,and the quality of the approvedresidents on-site was low. This left significant upside to repurpose theresident base, implement a light value-add plan, and drive the NOI to its potential through rate increases tomarket rent
Hollister Oaks was acquiredin February 2022. Itiscurrently undergoing are purposing of residents and is currently 87% occupied, 90% pre-leased.
1801 Lone Oak Rd, Weatherford, TX 76086
Property Type:
Multifamily
# of Units:
396
Year Built:
2020
Key Metric:
Loan Amount:
$58,700,000
Date of Acquisition:
November 2022
Cap Rate:
3.75%
Market Value:
$78,500,000
Equity Placed:
$5,800,000
Target Average Cash on Cash:
7%+
Target IRR:
33%+
Target Equity Multiple:
2x
Lone Oak was a new-construction asset acquired during lease-up. It is located in Weatherford, TX, a fast-growing submarket of Dallas-Fort-Worth. The developer left plenty of upside potential with its lack ofenhanced and modern amenities. Our business plan is to lease up the property, upgrade units with a tile backsplash and tech package, and improve the amenities on-site suchas the pool.
Lone Oak was acquired in November 2021. It is fully stabilized and is currently 96% occupied, 98% pre-leased.
4645 Tamarack Blvd, Columbus, Ohio 43229
Property Type:
Multifamily
# of Units:
151
Year Built:
1970s
Key Metric:
Loan Amount:
$6,675,000
Date of Acquisition:
October 2021
Cap Rate:
4.74%
Market Value:
$8,900,000
Equity Placed:
$4,300,000
Target Average Cash on Cash:
8%+
Target IRR:
14%+
Target Equity Multiple:
2x+
The “3-Pack” portfolio in Columbus, Ohio consists of three Class-C assets all acquired from the same seller in a B-Class area. They are in close proximity to each other, leaving an opportunity to leverage economies of scalethrough management. These properties were acquired for an attractive cost-basis and had a lot of potential upside through renovations. Over $1m of CapEx is currently being injected into the property. They were acquired using three separate loans, leaving maximum flexibility to refinance or sell any of the assets individually to further improve investor returns.
The Columbus portfolio was acquired in October2021. It is still undergoing are purposing of residents and renovations and is currently 81% occupied
11500 Green Plaza Dr, Houston, TX 77038
Property Type:
Multifamily
# of Units:
240
Year Built:
1979
Key Metric:
Loan Amount:
$17,924,000
Date of Acquisition:
May 2021
Cap Rate:
5.60%
Market Value:
$18,600,000
Equity Placed:
$5,600,000
Target Average Cash on Cash:
8%+
Target IRR:
20%+
Target Equity Multiple:
2x+
The Sophia, formerly known as Canyon Club, was acquired from a 20+ year, mom & pop owner who did no renovations to the property during ownership. At the time of acquisition, the property had extremely high occupancy due to low rents but provide da poor quality of living for families on-site. We plan to inject over$3.8m of CapEx into the property to bring this property back to life.
The Sophia was acquired in May 2021. It is still undergoing a repurposing of residents and renovations and is currently 93%occupied. Most exterior CapEx improvements have been made, and units are being fully renovated as they become available
*DEFINITION OF ACCREDITED INVESTOR
You qualify as an Accredited Investor if you meet any of the following criteria: a) You earn over $200,000 in annual income, b) You, together with your spouse, earn over $300,000 in joint annual income, c) You have a net worth, exceeding $1,000,000 (excluding the value of your primary residence), individually or together with your spouse.
DISCLAIMER
The material on this website is for the general information of our clients and visitors. This website does not constitute an offer to sell or a solicitation of an offer to buy or sell any security or investment product. It may not be relied upon in connection with any offer or sale of securities. Nothing on this website recommends that you purchase, sell or hold any security or pursue any investment style or strategy. Nothing on this website is intended to be, and you should not consider anything on the website to be investment, accounting, tax, or legal advice. Investments may only be made pursuant to a Private Placement Memorandum of Blue Oak Capital.
