Income Properties Portfolio
Important Videos About The Deal
San Francisco CA
Players Involved in Deal
Mortgage Lender: LMI Capital
Lender: Freddie Mac
Terms: 3 years interest only, 30 year amortization, 5.12%
Construction Manager: Fernando Zamarripa, Three Pillars Capital Group
Maintenance Manager: Kent Herring, Three Pillars Capital Group
Co-Founder of Income Properties Portfolio
Talks about becoming a Key Principal
We will allow select individuals to be given the opportunity to be selected as Key Principals (KPs) on this deal. As those selections are made, they will be added here. This is the fastest way for the KPs to get a deal done, build their track record and credibility (read more on Become a Principal page).
We want to make sure that those individuals who are ready to do a deal done get a fair chance. The number of applications has been high, so the selection process takes time.
NOTE: THIS PAGE IS ONLY INTENDED FOR KEY PRINCIPALS AND DOES NOT CONSTITUTE AN OFFER
This is a 40-unit Class C property that is 100% occupied. It's located in a highly dense, blue collar part of Houston, TX.
Occupancy: Properties in this part of Houston generally observe 95%+ occupancy. Houston is experiencing solid population growth and Class C is generally recession proof. In a good economy, Class C occupancy is strong and maintains steady rates during economic troughs as people downgrade from Class B to Class C. Current owner is very unsophisticated in managing the operations, rehabbing units and optimizing revenue.
Business Plan: What makes this a great acquisition is that rents can be increased ~27% and there is a clear value add. Given that TPCG understands this market well, the executional risk is greatly reduced. TPCG already owns multiple properties in similar markets and the same manager will manage this property as well. This will allow the salary, wages and office expense to be spread across those properties making our operational expense lower than what a solo owner would run it for. Expenses are not properly controlled. Three Pillars completed rehab on a similar properties near by and achieved above market rents setting a new trend for competing properties to follow. This property fits squarely in their area of expertise.
The business plan is to reposition the property by performing extensive interior and exterior rehab and put in a better tenant profile and increase rents. TPCG has it's own construction crew that will perform all rehab. They also have their own maintenance team to perform repairs and maintenance. This alone will result in a lot of savings on the repairs and maintenance line item. Furthermore, the water bill can be lowered, as they did on their previous acquisition.
Inwood Meadows Apartments Due Diligence
Three Pillars team conducts inspection, due diligence and unit walk through
A glimpse into a previous rehab project
07/10/2018- Buyer and seller have agree to price and terms.
07/25/2018- TPCG sent the purchase and sale agreement to the seller to execute. Debt terms are being firmed up.
07/31/2018- TPCG is now under contract to purchase this property. Inspection is scheduled for Friday, 08/03/2018.
08/07/2018- TPCG is working on closing and taking over Inwood Meadows. Inspection is complete. Working with lender on closing steps.
09/10/2018- Closing is set for 9/28/2018!
Introduction to Inwood Meadows Apartments
Josh Welch, Founder
Lucas Fertitta, Director of Acquisitions
Key Principal Selection Discussion
San Diego, CA
Three Pillars Capital Group