The JKAM team is excited to share our newest investment opportunity Madison at Bear Creek, a 180 unit Multi-family Value Add opportunity located in one of Houston’s top submarkets.
Participation in this project is being offered through the JKAM Diversified RE Fund II or as Direct Investment.
Key Investment Details
Avg. COC: 5% | Projected IRR: 16%
Equity Multiple: 1.53x | Projected Hold Period: 3 yrs
Annualized Return: 17.9% | LTC: 68.7%
Why We Like The Deal:
- Immediate Monthly Distributions- Deal closes in November, December’s distribution is paid in January.
- Multiple Exit Strategies – Projected 3 year hold, but the debt is fixed rate 7-yr term, which allows for some flexibility with the exit strategy.
- Full Value Add – 100% of the units are in ‘Classic Condition’ meaning there’s plenty of value that can be captured through renovations.
- Class B Workforce Housing – Stable asset class with 100% of the units in classic condition, maximizing upside of the value-add strategy.
- Pro-forma Renovated Rents – for this Class B asset remain $400-700 below Class A rents in this submarket.
- Sponsor Owns Property Next Door – Allowing for cost reductions and property management synergies across both properties. They also own and operate over 2,500 multifamily units in Texas with vertically integrated property management.
- Strong Occupancy In The Bear Creek Submarket – Tight submarket, no new supply, and 97% occupancy in a 1-mile radius. This property maintains a 98% occupancy with the Year 1 breakeven occupancy of 85%.
- Lease Renewal Value Capture – Below market rents allow for lease renewal value capture in the current classic condition.
- Sponsor Buy-in – Personally investing 4% of the total equity.
- Tax Advantaged – 60% Year 1 Accelerated Bonus Depreciation.
Make A Reservation
- This offering has limited space and will be on a first come first serve basis.
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