Multifamily Repositioning Project

Houston, Texas

Multifamily Repositioning Project

Houston, Texas

Asset:

  • 659-units in poor physical condition with weak in-place management at acquisition.
  • Located in a historically depressed submarket in Houston, Texas.

Investment Strategy:

  • Nimes captialized on untapped upside given that it was located near major employment centers and in the expected path of gentrification.
  • Invested capital to: upgrade unit interiors and common area amenities; complete physical repairs; and overhaul exterior appearance of the asset.
  • Inspired a new management team that was enthusiastic about the property’s potential and was trained to meet higher operational standards.

 Outcome:

  • Rental rates climbed 25%+ in the first two years of ownership and continued to increase thereafter.
  • The tenant base has significantly improved, leading to lower delinquency and collection loss.
  • Underwritten net operating income targets were exceeded.
  • Competitive assets have taken notice and are now upgrading, leading to an overall improvement of the neighborhood.

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