New Investment Offering – Verdir at Hermann Park

Direct Investments, Opportunities

Alternative Investors Mastermind Postcast

Hosted by Jack Krupey

Alternative Investors
Mastermind Postcast

Hosted by Jack Krupey

The JKAM team is excited to share our newest investment opportunity Verdir at Hermann Park, a 224-unit Multi-family Value Add opportunity located in the heart of Houston. 

Key Investment Details

IRR: 15%+ | Profit Multiple: 1.7x | Avg Cash-on-Cash Return: 6.2% 

Hold Term: 4 years | Pref Returns: 7% | Year Built: 2004 | Unit Count: 224 units

Why We Like The Deal:

2.5% Fixed Rate Debt –  GREEN Certified, HUD Certified 2.5% interest rate. More than 20% of the property was enhanced to be GREEN Certified, then it was refinanced on a bridge loan into a HUD loan at an incredible 2.5% interest rate. A 5% prepayment penalty is already assumed in the model. That said, it’s likely the next buyer is going to assume the loan. 

Light Value Add Renovations  – 99 of 224 units will be renovated. With those 99 units, they’re purposely spreading it across 3 years so it’s only 3 units renovated per month. Renovations are underwritten at  $6K/unit for most units, with a few upwards of $7K for the full renovations. These are projected to yield $180/month rent bumps, on top of bringing the units up-to-market rent.

Class A/A- and Proximity to Houston Medical Center – While JKAM typically focuses on Class B Multifamily, the Verdir at Hermann Park’s location is compelling as the tenants are primarily employed by Texas Medical Center down the street. The property is 93% occupied, and rents are 100% collected by the 5th of every month. Co-sponsor is a doctor who lives in that area. The property is also in close proximity to Rice University, The Houston Astrodome, the museum, district, and the Houston Zoo.  

Off-Market Sale: This property was wrapped up in a portfolio last year – but the buyer couldn’t buy it due to bridge loan terms. The seller said they weren’t going to sell, but our operating partner remained in touch, and 1-year later the seller is proceeding with selling to our Operating Partner.

Proven Operating Partner – JKAM had a successful exit on Lion’s Gate Apartments, in which we invested with this same operating partner. They are not only proven but delivered a 36% IRR on that deal. 

Distributions – Cash Flow Positive Day 1 on current, in-place rents and current occupancy, distributions to begin within 90 days.

Better Terms: Due to JKAM’s pre-existing relationship with the Operating Partner in this deal, our investors can receive the Class C terms that are typically reserved for investments of $250,000+ for JKAM’s minimum of $50,000.

Steps to invest:

  1. Make A Reservation
  2. Schedule A Call
  3. Verify Accreditation
  4. Review & E-sign Docs
  5. Fund

Investor Timeline:

  1. This offering has limited space and will be on a first come first serve basis. 

Make A Reservation