10630 Beechnut Street, Houston, TX
Completion Date: 2013
Net Rentable Area: 250,740 S.F.
Number of Buildings: 20
Asset Type: Multifamily
Sunset Crossing Apartments is a 328-unit, garden-style apartment complex located in Houston, Texas. The property consists of 20 two-story buildings situated on 12.31 acres with parking for 514 vehicles, resulting in a parking ratio of 1.57 spaces per unit. The property is well located along two major thoroughfares: Beechnut Street and Wilcrest Drive, just west of Beltway 8, in the western portion of Houston, approximately 13 miles west of the central business district. The property is located within the Alief submarket, near the intersection of South Kirkwood Road and Bissonnet Street and is approximately 21 miles southwest of downtown Houston along U.S. Highway 59.
Ytech International acquired this asset through the purchase of a portfolio from an institutional hedge fund. The company secured a balance sheet loan from an institutional lender for the property.
After conducting extensive research on the project and its surroundings, Ytech was able to determine that the value of the property was understated as a result of operating inefficiencies and the need of minor rehabilitation. Immediately after acquisition, Ytech’s construction and management teams aimed to assess, create and execute an operational plan that effectively reduced expenses and increased revenue in a timely manner.
Simultaneously, Ytech launched a marketing campaign, and as a result, it sold the property at a significant premium in less than 90 days. The sale resulted in an internal rate of return (IRR) of more than 50 percent for Ytech. At asset disposition, the property was at 94 percent occupancy.