Case Study: Belle Spring Branch
Opportunity
Belle Spring Branch was the off-market acquisition of a fully-stabilized 258-unit, 5-story midrise apartment community in the rapidly developing submarket of Spring Branch East in Houston, TX. The property was developed by a local Houston developer, Dakota Enterprises, in 2021. BCP was able to acquire the property at a 26% discount to replacement cost and a 29% discount to comparable multifamily sales in the submarket thanks to accretive financing pre-approval from Fannie Mae (government loan agency) which gave the seller confidence in BCP’s ability to close the transaction.
“We have been in a long bull market, and track records will be challenged.” Buchanan said. “We have never lost investor principal or made additional capital calls, and do not foresee this changing.”
- Keith Buchanan
BCP’s value-add strategy at the property includes:
- Bringing in a high effective property management team to aggressively drive rents and keep operating costs to a minimum
- Introducing new amenities including a dog-wash station and a bike garage
- Xeriscaping the property’s amenity courtyard and landscaping to improve water usage and visual appeal
- Upgrading existing amenity areas with Class-A consistent conveniences
- Restructuring and improving the reserved parking system