Cypress Ridge is a 244 unit, garden style, gated apartment community comprised of 21 residential buildings that was acquired as a highly distressed “B“ Class property in 2011. It was purchased at a 53% discount to the loan balance, for a purchase price of only $11,600 per door. Upon closing, the property only had an occupancy rate of 31%, was missing many AC units and needed extensive renovations.
An initial capital investment of $9,300 was required to renovate, restore and stabilize the property. The property is located in the north Houston area. After closing, roughly $1.1 Million was spent on the exterior property, replacing the roofs, balconies, siding, landscaping and completely repainting the exteriors of each building with premium paints.
Another $1.3 Million was spent on the interiors, essentially gutting out each unit and replacing drywall,kitchens, countertops, flooring, paint and appliances. Some of the challenging floor plans were altered, and in some cases combined with others, in order to create more efficient and higher yielding floor plans. The property’s renovations have subsequently been successfully completed and the property is stabilized at over 90% occupancy. Rental revenue has continued to surpass the properties all time high.