9550 Long Point Road, Houston, TX
Completion Date: 2013
Net Rentable Area: 223,000 S.F.
Number of Buildings: 15
Asset Type: Multifamily
Valencia at Spring Branch Apartments is a 228-unit, garden-style apartment complex located in Houston, Texas. The property consists of 15 two-story buildings situated on 7.5 acres. The property features a swimming pool, four laundry rooms and is located approximately 10 miles northwest of downtown Houston, in a submarket known as Spring Branch.
Ytech International acquired this asset through the purchase of a portfolio from an institutional hedge fund and secured a commercial mortgage-backed securities (CMBS) loan for the asset.
Ytech completely redeveloped the property through capex infusion of more than $3.2 million and leased the units until stabilized occupancy was achieved. Its redevelopment plan involved roof replacements, interior renovation, heavy down unit rehabilitation, parking lot and driveway repairs, and appliance package upgrades. It was completed in November 2013. Ytech achieved stabilized occupancy by April 2014, and the property is currently 96 percent leased.
Ytech realized that this property had intrinsic value but needed to be repositioned within its submarket. The Spring Branch area will always have a strong demand for rental apartments given that it has been listed as an A-grade school district.
Ytech’s management and marketing plan for this project placed an emphasis on attracting families. Since acquisition, Ytech has been able to increase the property’s net operating income (NOI) by 31 percent.