"The broker called us and said 'this is a deal for you,'" recalls Jay O'Connor, founding partner of Mosaic Residential, which has been carving out its niche in Texas metros with value-add acquisitions.
The retooling at the 95%-leased Waters Park Apartments, situated on 8.16 acres at 1401 Shady Lane, got under way as soon as the deed changed hands.O'Connor tells GlobeSt.com that the upside will come from a management change and post-renovation rent hikes that are projected to be $125 per month for each unit.The complex's average monthly rent presently is $672.Mosaic Residential
slid in its in-house management team to replace the seller's out-of-state property manager, according to O'Connor
jumped into a contract due to the asset's location beside the park and along a cul de sac, tenants' mix and condo neighbors selling for $95,000 to $110,000 per unit."It gave us a little bit of confidence," he
says, adding "it's a great Mid-Cities location."
Waters Park is a mix of one-, two- and three-bedroom units from 700 sf to 1,300 sf.O'Connor
says the majority of renovations will be unit interiors in a floor-to-ceiling makeover.Absolute Turnkey Services Inc.
of Houston is the general contractor.O'Connor
says the plan is a two- to three-year hold although debt was placed with a five-year term to cover all bases.
says renovation capital was provided through Capmark's
"mezz mod program" and the acquisition funded in a senior note.