Real Estate Investment - Chatham Village

Houston Texas Investment Option

About This Property                     

Western Wealth Capital is proud to offer investors an opportunity to invest in Chatham Village Apartment Homes, a 210-unit, luxury apartment community located in Houston, Texas. Built in 1984, the property offers tremendous upside potential, with most units still retaining some original interior fittings.

Chatham Village is adjacent to the Clear Lake Area and its tech industry. The property is conveniently located off Bay Area Boulevard, which gives quick and convenient access to the I-45; connecting the property to the Houston metro and a multitude of dynamic employers including NASA Johnson Space Centre, Boeing, The University of Houston at Clear Lake, Clear Lake Medical Centre and Ellington Airport.

Business Plan

This involves increasing the net operating income over a five-year period using Western Wealth Capital’s disciplined and consistent value-add program. The main drivers to increase the net operating income are:

• Normalize rents and bring to market average – Current owners are operating with disparity between rents of like-units across the property. Western Wealth Capital intends to reduce that disparity using our proven lease management approach. 
• Interior Upgrades: Classic to Goldstar – There is huge potential for interior upgrades on this property. Western Wealth Capital plans to complete full interior upgrades to 41 of the 210 units (20%). We have modelled a projected $125 per month per unit increase in rental income.
• Interior Upgrades: Partially Upgraded to Goldstar – Western Wealth Capital plans to complete partial interior upgrades to 47 of the 210 units (22%). We have modelled a projected $50 per month per unit increase in rental income.
• Washer & Dryer Value-Add Opportunity – Select units have washer and dryer connections, making WWC washer/dryer installations quick, low-cost and easy to implement. We plan to install washers and dryers in 138 units (66%), enabling an increase of $40 per unit per month of rental income.
• Private Backyard Units – A high-demand feature in this sub-market. Chatham Village presents the opportunity for us to install fenced-in backyards and enhanced patios on 10 ground-floor units and charge an additional $75 per unit per month

Property Overview

Built in 1984, Chatham Village Apartment Homes average 889 square feet and deliver one, two and three-bed suites, featuring washer/dryer connections in select units. Chatham Village has 74 units (35%) dedicated for low income housing, as part of a Land Use Restriction Agreement (LURA) that matures in 2035. The income thresholds are not significantly different from Chatham Village’s existing rents and are not anticipated affecting the existing or future tenant pool. The income restrictions are tied to the annual median household income (AMI) for Harris County, which is projected to rise annually based upon the robust local economy. The property is conveniently situated near the intersection of Bay Area Boulevard and Galveston Road. Chatham Village is less than 2 miles from Interstate 45, which serves as the main transportation corridor through Houston’s metropolitan region. 

With the superior position Chatham Village enjoys in Webster, there continues to be ample opportunity to add significant value to the property by implementing the Partnership’s value-add program. The previous owner recently spent over $1.7 million upgrading the building and common areas, leaving room for further investment to be concentrated on the apartment unit interiors. Chatham Village is zoned to the #1 High School in a highly regarded school district and has consistently maintained an occupancy above 90% for the last decade. Submarket occupancy is also strong and above 90%, with renovated market comparables achieving up to 18% higher rents (Chatham Village OM, 2018).

Location Overview 

• The property is ideally located near the intersection of Bay Area Boulevard and Galveston Road, less than 2 miles from Interstate 45, which runs north from Galveston, through Houston and has a $93 million expansion underway (Chatham Village OM, 2018). 
• Chatham Village is close to many major employers, including Boeing (1,650 jobs) and NASA Johnson Space Centre (10,000 jobs) (Chatham Village OM, 2018). 
• Situated less than a 10-minute drive from Ellington Airport (10,000 jobs) a joint use facility for NASA, the U.S military, aviation, the nation’s 10th commercial spaceport and soon the U.S. Space Force (Chatham Village OM, 2018). 
• The 3rd largest marina in the country with over 7,500 marina slips and multiple yacht clubs is within a 15-minute drive of the property (Chatham Village OM, 2018). 
• The 8,800+ businesses withing a 5-mile raduis of Chatham Village provide 99,600+ jobs (Chatham Village OM, 2018). 
• This area has attracted a young and trainable workforce due to its robust economic development, seen in Houston’s averge age of 32, well below the national average of 38 (Chatham Village OM, 2018).

Investments Start at $25,000 USD