Marbella Apartment Homes is a garden-style apartment community consisting of 783 units located in Corpus Christi, TX. The property was built between 1973, 1978-1979 & 1983. The property was purchased off-market and will undergo an extensive re-branding and reposition with a new capitalization of close to $10M in CapEx, which will also include, among other things, repainting, security enhancement, functional controlled access, new LED wall packs for bright night light, roughly 550 unit upgrades, new pool, new large bark park, new amenities, and plenty of green space. The reposition has just begun – more to come on this exciting new asset.
INVESTMENT HIGHLIGHTS & PROJECTIONS
- Average cash-on-cash returns of 10% with 2.12x equity multiple in 5 years. (18%+ IRR)
- 100% of the unit interiors remain in classic condition and 70% will be upgraded to include new vinyl plank flooring, counter tops, black appliances, two-tone paint, upgraded lighting, electrical and door fixtures. The new interior renovations are projected to achieve $125/mo rent premiums on average. Clear Value-Add Strategy.
- Cost Segregation/Bonus Depreciation on the asset is extraordinary due to our Pref Equity stake and size of the deal. Initial projections provided by Madison Specs indicates investors will receive roughly $215-227k total tax benefit based on price and expenditures over the life of the deal, with roughly $140-155k taken year one per $100k invested.
- The property is in the Southside Market of Corpus, one of the primary submarkets in Corpus. The neighborhood is well established – Corpus’ newest Starbucks just opened less than 1 mile away.
- Corpus was recently named one of the Top 5 markets for occupancy growth per Yardi Matrix, due primarily to the lack of development over the past several years.