Case Study: Crenshaw Grand

The Opportunity

Crenshaw Grand was the off-market acquisition of a fully stabilized 264-unit, garden style apartment community at the intersection of the supply-constrained Pasadena and Clear Lake submarkets in Houston, TX. BCP acquired the property, developed in 2015, at a 25% discount to prior area sales and replacement cost thanks to an accretive loan assumption of the seller’s in-place Freddie Mac loan andBCP’s existing relationship with the in-place property management company.

Project Story

• In 2018, MLG Capital, an institutional real estate fund manager, purchased the property in a closed-ended fund series and secured a 4.7% interest-only,10-year Freddie Mac loan.
• The fund is approaching the end of its investment period, and the property was listed for sale in Q2 2023.
• The property went under contract in 2023 but was dropped due to the buyer’s inability to close.
• Having worked on a potential sale for over a year, the seller is highly motivated to sell at a significant discount to the prior sale price. BCP’s purchase price isa 7% discount to the prior buyer’s purchase price and is a 25% discount to recent area sales and replacement cost.
• Through a relationship with the seller’s listing broker and a supportive recommendation from the seller’s property management (Valiant Residential), BCP was able to secure the deal off-market and went under contract in March 2024.

Capital Improvement Plan

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Valiant Residential has managed the property since 2018 – eliminating potential management blind spots. Due to the rental upside potential of a value-add plan, Valiant has already received bids for many of BCP’s desired projects. The onsite team is excited & ready to execute on-property enhancements.

In the first months of ownership, BCP’s main goal is to further amenitize the property in the following categories:

Exterior Appeal: Paint, Landscaping

Underutilized Space: Courtyards, Pool

Dated Equipment: Fitness, Pool Fixtures, Seating

Select Unit Improvements: Stainless Steel Appliances,Expanded Pet Yards

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