Legacy Apartments

Investment Summary

Property

The Terrace is a gated community built in 1974 with 106 units and located in North East San Antonio. The property features a pool, two laundry facilities, office, mail room, ample outdoor courtyard areas and over 3 parking spots per unit.


Strategy:  Low basis acquisition of workforce housing with significant upside through re-positioning, adding 24 units, and charging back utilities.

Projected Returns

While the execution of our business plan is going well we are still in the early stages.  Below are the projected returns we expect to see if all goes according to plan.

  • Average Annual Return: 18.5
  • Preferred Return: 7.0%
  • 5 Year Equity Multiple: 1.9 

Opportunity Highlights

Our business plan includes the following improvements.

  • Family owned and managed since 2013, there were countless areas for operational improvement. We contracted professional third party property management from day one to implement best practices, reduce expenses, improve operations, and maximize profitability.
  • Nearly 100% of tenants were not paying electric or water bills.  The property was individually metered for electric, and we will leverage Appfolio’s graceful utility billing system to bill back water. New leases and lease renewals will pay all utilities.
  • The Property is currently 106 units. A previous owner combined 48 upstairs/downstairs units into one 24 larger apartments by connecting them with a spiral staircase. Plumbing, electrical, HVAC and metering are all in place.  This presents an excellent opportunity to add 24 units back to the property for a substantial increase in yearly revenue.

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