[Private Deal Alert] Real Estate Investment Offering For Houston Multifamily Property With Value-Add Opportunity

Houston, Texas, the fourth largest city in the United States, is commonly referred to as the “Petro Metro”. Historically, Houston has been the home of Texas’ oil industry, which still provides hundreds of thousands of high-paying jobs to Houstonians every day. However, there is much more to Houston than just oil.

As one of the largest cities in the Sunbelt, Houston offers a host of employment options in a wide variety of fields. Whenever you have a city of nearly 3 million people, and an even larger metro area, industries like hospitality, medicine and real estate are bound to be strong as well. Houston features two airports, professional franchises in 3 major sports, a stop on the PGA tour and it’s only a 40-minute drive to beach cities like Galveston.

Combine all that with mild winters, affordable housing and zero state income tax. When you look at Houston from that perspective, it’s easy to see why more and more people who are priced out by the high rents and housing prices in places like Los Angeles and New York are flocking to Houston. Developers are taking notice of the opportunity Houston presents too.

Ashford Pointe

Multifamily housing has always been a strong alternative investment in cities with high populations and lots of good jobs. Houston definitely fits that criteria and that’s why Ashford Pointe, a new offering on the RealtyMogul investment platform, is such an intriguing proposition.

Ashford Pointe, which is sponsored on the platform by LXMI Capital, is a 224 unit apartment community on Houston’s west side. This offering is a value-add opportunity and has a per-unit cost of around $84,000, which is significantly less than comparable assets in the area. Even at the low price per unit, Ashford Pointe is projected to cash flow with a 4.5% Cap Rate.

However, LXMI believes that with a cost-effective upgrade on each unit, there is over 20% upside in rents. If these target numbers can be hit, Ashford Pointe will not only generate good cash flow for its investors, it will appreciate rapidly in value. Ashford Pointe gives investors the chance to have their cake and eat it too. The property would cash flow during the hold period and then pay off handsomely when LXMI expects it to sell for over $120k/unit.

Investment Terms

Ashford Pointe investors will need to make a minimum contribution of $35,000 to take advantage of the offering and gain equity in the project. LXMI is currently projecting the hold period to last for three years, during which time Ashford Pointe is expected to generate an internal rate of return of 17.2%. The targeted equity multiple is 1.59x, and the targeted cash on cash return is 3.2%. LXMI is planning to make its first distribution from Ashford Pointe in November 2022.

This offering is available to accredited investors in the US. Ashford Pointe will give investors who have been keeping their eye on the growth in the Houston area a rare opportunity to take advantage of a value-add offering with tremendous upside. 

View more details on offerings from RealtyMogul on Benzinga Alternative Investments.

Photo: Courtesy of RealtyMogul