Current Opportunities

Winwood Club

Kerrville, TX (San Antonio MSA)

81 Units, 1985 Construction

Falcon Capital Management is under contract to acquire Winwood Club, an 81-unit multifamily asset located in Kerrville, TX. Situated in the "Hill Country" of the San Antonio submarket, with market-beating 99% occupancy rate and strong, positive rent growth, the property offers significant potential for rent and property revenue increases through unit renovations and better property and asset management. With no new construction planned in the area and positive net absorption, demand remains strong in this limited-supply environment. Rent comparables in the area were all high 90% occupied with waiting lists! The property boasts resort like, 2 level pool, lounge and covered barbeque and dining area. Studios, 1 bedroom and large 2 bedroomfloor plans available. LuxerOnePackage Locker room for today's online shopper. Walking distance to an HEB grocery store and also nearby hospital and other medical services jobs. Below market rate 6.15% Fannie Mae assumable debt that is full term interest only (!) until maturity in August 2028. Going in cap rate of 7.02% results in very strong (and rare) positive leverage. 9+ foot ceilings in select units, balconies, as built stackable washer/dryer connections, fireplaces, new roofs, new boiler and new water softener system!

The Business plan is to acquire the property while assuming the existing loan due and hold until maturity, and perhaps beyond, depending upon market conditions of that time. We plan to change the smaller / regional property management group (whose regional manager has never visited the property!) and install an institutional property management company (regional is nearby in San Antonio) to implement industry best practices. We will execute exterior & interior improvements to increase rents, maximize tenant satisfaction / retention, net operating income, property appreciation and investor returns.

Disclaimer

THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, ANY SECURITY. THIS PRESENTATION HAS BEEN PREPARED IN ANTICIPATION OF A PRIVATE OFFERING OF LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS (THE "INTERESTS") IN AN ENTITY (THE "PROPERTY") TO BE FORMED BY FALCON CAPITAL MANAGEMENT, LLC (“FALCON"). THIS PRESENTATION ONLY BRIEFLY DESCRIBES THE TERMS OF THE LIMITED LIABILITY COMPANY AGREEMENT OF THE PROPERTY (THE "OPERATING AGREEMENT"), WHICH IS THE PRINCIPAL DOCUMENT GOVERNING THE RIGHTS AND OBLIGATIONS OF THE PROPERTY, ITS MANAGER AND THE PROPERTY'S INVESTORS.

ANY DESCRIPTION OF THE TERMS OF THE PROPERTY AND THE OFFERING IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE PRIVATE PLACEMENT MEMORANDUM THE WILL DESCRIBE THE OFFERING OF INTERESTS, THE OPERATING AGREEMENT AND THE SUBSCRIPTION AGREEMENT. PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THIS PRESENTATION AS INVESTMENT, LEGAL OR TAX ADVICE, AND THIS PRESENTATION IS NOT INTENDED TO PROVIDE THE SOLE BASIS FOR AN EVALUATION OF AN INVESTMENT IN THE PROPERTY.