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Income Properties Portfolio

Players Involved in Deal

Mortgage Lender: CBRE

Lender: The Bancorp Bank (bridge) and then Freddie Mac

Terms: 3 years interest only with two 1-year options, 30 year amortization, Libor + 325 basis points

Construction Manager: Mike Cabrello, Three Pillars Capital Group

Property Management: Greenline Apartment Management

Co-GP(s): Prasad has been a great partner on many deals and we have a strong relationship. 

Key Partner
​Under Consideration

Important Videos About The Deal

​Key Partner

Key Principal Selection Discussion

General Partner

Introduction to Ridge Point Apartments

Josh Welch, Founder
​Lucas Fertitta, Director of Acquisitions

General Partner

Live Updates/Timeline

12/2/2019-  TPCG preparing to go under to purchase Ridge Point Apartments

12/22/2019- TPCG has completed physical and financial due diligence on the asset

12/22/2019- TPCG has selected key partners who will be promote to co-GP. We have picked Prasad (on this 6th deal now), Joel and Sudhir.

01/13/2020- Heading into the closing of the deal. From here on out it's usually just a bunch of paperwork.

The Property

This is a 168-unit Class B property that is 96% occupied. It's located in a highly dense, middle income part of Houston, TX. It is very close to our other properties and we have a solid understanding of the sub-market.

Occupancy: Properties in this part of Houston generally observe 90%+ occupancy. Houston is experiencing solid population growth and Class B & C is generally recession proof. In a good economy, Class B & 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 by executing a rehab plan similar to what we have done on our other properties. Given that TPCG understands this market well, the executional risk is greatly reduced. TPCG already owns multiple properties in this market. 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 to a Class B+ by performing extensive interior and exterior rehab, putting in a better tenant profile and increasing 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.

Due Diligence

Three Pillars team conducts inspection, due diligence and unit walk through

Rehab Example

A glimpse into a previous rehab project

Key Partner

Key Partner

Key Partners

We will allow select individuals to be given the opportunity to be selected as Key Partners on this deal. As those selections are made, they will be added here. This is the fastest way for the key partners to get a deal done, build their track record and credibility (read more on Become a Partner 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.

Key Partner

Ridge Point Apartments

​This page discusses all details pertinent to the deal and gives live updates about the closing process.