Highly Desirable Neighborhood – Westchase is one of Houston’s most prominent neighborhoods. Located west of uptown and just south of the energy corridor, the neighborhood has great access to many of the city’s top employers, retail, and entertainment.
Management Upside Opportunity – The current on-site staff has proven ill-equipped to handle an asset of this size and complexity, as evidenced by two property manager changes and near 100% staff turnover. A highly experienced property management team from another property in Houston who has a successful track record of turning around and leasing up deeply mismanaged properties will be placed at The Quinn.
Below Market Rents – Rents at The Quinn are among the most competitive in Westchase. Poor management has made it impossible for the property to command rents on par with peers. With the right team in place, rents will be marked to market over time to match those of its comp set.
Minimal CapEx Needed – $6.8M in capital expenditures have already been spent improving the exteriors and approximately 45% (329 units) of the interiors. As part of the acquisition, $1.9 million of capital will be strategically utilized to clean up the property and fix any deferred maintenance that may exist, which will restore the asset to the level of quality of its best performing comps.
Since closing in August 2018, the current partnership has invested $6.8M of capital into value-added projects including a complete exterior renovation including building, parking lot, and site area improvements. With 329 units renovated to date, the remaining 55% of the interior unit’s classic will be left as meat on the bone for the next buyer. A light value-add plan will be implemented which includes adding other income items like washer/dryer sets in 100 units. Capital will be spent on cleaning up the tennis court area in front of the property. There are currently seven tennis courts on the west side in the center of the property which are dilapidated and unusable. This sport court area is currently a significant eyesore on the property and is in desperate need of renovating/repurposing. The business plan includes a significant placemaking component that is centered on completing the conversion of these seven dilapidated tennis courts into a crown jewel outdoor amenity space that will include a running track, soccer field, exterior workout area, outdoor kitchen, covered and uncovered lounge areas, a tree garden, shuffleboard area, shaded tables, and a pool pergola.