Parkside Place provides investors with the opportunity to access the highly competitive multi-family Texas market through local sponsors with significant local experience in multi-family and affordable housing projects. At a cost of $84,000 per unit, this is a discount to recent comparable sales which have sold at significant premium, it offers an attractive year 1 cap rate of 7.25%. In addition, Asset Living will be hired as property manager, bringing a wealth of local experience managing similar types of properties. Asset Living is currently ranked #4 among the largest apartment managers nationwide.   

This property has the potential to generate attractive risk-adjusted returns for investors due to factors that include; high barriers to entry, limited new supply under construction, and consistent rent growth across the submarket providing a solid fundamental base for upgrading units and growing rents at Parkside Place. FNRP ownership will acquire the asset fee-simple, then transfer the property to the Southeast Texas Housing Finance Corporation as a ground lessor with FNRP ownership retaining a leasehold ownership position post-closing. The ground lease will provide a full real estate tax abatement for the entire 99-year term of the ground lease, resulting in immediate NOI growth and value creation.

The location of the property is close in proximity to high quality retail and community services, as well as Beltway 8 and Interstate 45 which provides residents quick access to Houston’s major employment centers. Parkside is ideally situated in an area that has seen an increasing demand for multi-family housing due to relative affordability and access to quality education and growing local demand drivers like Port of Houston, Bayport Industrial District, NASA, and Hobby Airport. There are 292,000 people within a 5-mile radius with an average household income over $71,000, making it an ideal location for multi-family housing.