Investment lead: Nick Gruy | nick.gruy@sentinelcapllc.com
Sentinel Capital purchased Imperial Landing Apartments in the 4th Quarter of 2013. The property is located in the Northeast Houston submarket of Greenspoint, directly between Interstate 45 and the Hardy Toll Road.
At acquisition, the asset was adjacent to the then-to-be-developed Pinto Business Park (now fully built out and occupied by major distributors such as Sysco). The property consisted of 328 units constructed in 1978 and served the blue-collar workforce demographic. We acquired the community via an off-market, principal-to-principal transaction from a long-time owner.
During diligence we identified significant operational upside (legacy management, over-priced service contracts, below-market rents without a RUBS program, and several non-revenue units). Post-close we replaced management, normalized contracts, implemented RUBS upon renewal, and executed targeted value-add upgrades. Within the first three months, annualized revenue increased by approximately $150,000.
Performance remained strong; in 2016 we were released from seller financing, refinanced the asset, and achieved a return of over 115% of initial equity.
