— Deal room · Due Diligence · Houston, Texas
Fuse at Park Row
Unlock value in a prime West Houston asset located near the Energy Corridor.
- Under Contract
- Due Diligence
- Capital Raise
- Closing
- Funded
— The opportunity
Fuse at Park Row is a 318 unit Class A multifamily asset offering a rare 100 percent untouched value add opportunity. Located in the highly desirable West Houston area and zoned to the top ranked Katy ISD, this property provides stable cash flow with monthly distributions. Our strategy focuses on interior renovations and exterior improvements to capitalize on the property's prime location near the Energy Corridor.
— Why this deal
- 01
Institutional quality 318 unit Class A garden style property built in 1998.
- 02
Significant value add potential with a 2.66 million dollar renovation budget.
- 03
Excellent location zoned to the number one ranked school district in Houston.
- 04
Proximity to the Energy Corridor provides access to over 94000 local employees.
- 05
Sponsorship team with a proven track record of 10 full investment cycles.
- 06
Tax benefits available through a cost segregation study offering significant year one paper losses.
Property Overview
Fuse at Park Row is a 318 unit garden style apartment community spanning 14.47 acres in West Houston. Constructed in 1998, the property features stucco and stone exteriors, PVC plumbing, and pitched 30 year shingles. The community includes 15 residential buildings and a clubhouse, supported by a 24 hour fitness center, pool, and remote controlled access.
Market Strategy
The asset is positioned within a high barrier to entry market near the Energy Corridor and Memorial City, which employ over 180000 professionals combined. The surrounding area is characterized by strong home values ranging from 600000 to 1000000 dollars. With rent comparables showing 94 percent occupancy, the property is well situated for growth.
Business Plan
Our value add strategy targets interior unit upgrades, clubhouse renovations, and exterior painting to drive rental income. We are investing 1.66 million dollars into interiors and 746000 dollars into exterior improvements. We intend to exit at 197000 per unit, which remains below the 2022 seller cost basis of 216000 per unit.
Returns
The offering features a target raise of 14.5 million dollars with a minimum investment of 50000 dollars. Monthly distributions are expected to commence within 1 to 3 months. Investors can choose from various classes: Class A (8 percent pref, 18.59 percent IRR), Class B (8 percent pref, 17.53 percent IRR), Class C (7 percent pref, 16.41 percent IRR), and Class D (7 percent pref, 11.01 percent IRR). The projected IRR for the offering ranges from 11.0 to 18.6 percent with equity multiples between 1.6 and 2.2x.
Sponsorship and Risk Mitigation
The sponsorship team of Dustin Miles, Hayden Harrington, and Sid Shamim has purchased over 900 million dollars in assets and operated over 6700 units. To align interests, the team is investing over 500000 dollars into the deal. Our risk mitigation includes a 7 year fixed rate debt structure and breakeven occupancy stress tests as low as 72.73 percent in year 5.
— Ready to move
Secure your position in Fuse at Park Row.
Rule 506(c) offering. Open to verified accredited investors only.