Current Projects
La Jolla Place
La Jolla Place
La Jolla Place
El Paso, TX
72 Units, 2012 Construction
Falcon Capital Management is under contract to acquire La Jolla Place, a 2012 construction, 72-unit garden-style apartment community located in El Paso, TX. Out of 85 major markets studied every quarter, El Paso has consistently ranked in the top 10 and most recently was 4th best market for apartment investment. Major factors include low crime, strong schools, low supply relative to absorption, and rent growth + occupancy (both historical & forecasted) far stronger than most other markets across the US. The limited supply of new construction inventory in the immediate area coupled with the high barriers to entry for home ownership are driving the demand for multifamily housing in the market. Combined with a growing population fueled by the lower costs of living, no state income tax, infrastructure investment and plentiful job opportunities due to proximity to the border, El Paso is a very attractive apartment investment market.
The well-maintained asset, only 12 years old, comprises a consistent and efficient unit mix of 100% 2 bedroom + 1 bathroom floorplans averaging 822 square feet. The community features a welcoming courtyard, a playground, an outdoor ramada and barbeque / picnic area, laundry facilities, and all 7 buildings had a full roof replacement in 2017. Every unit features 9’ ceilings, spacious, open concept floorplans with private patios or balconies, walk-in closets, outdoor storage closets, and ample natural lighting throughout.
The property has held average occupancy of 97% since 2021. Among various reasons such as those cited above, Jolla Place is positioned for significant revenue growth and has upside potential via implementing a modest interior renovation program and capitalizing on ancillary income opportunities. 100% of the community features classic interior finishes - a blank canvas opportunity for Falcon to renovate units, modestly increase rents and increase asset value. Renovating interiors, similar to the newer construction assets in El Paso, would comfortably generate rental premiums of $125/unit/month and we plan to install 40 covered and reserved parking spaces for a $35/month premium as a value-add amenity seen at competitor properties. Combined, these value add plans will generate nearly $125k new revenue.
Winwood Club
La Jolla Place
La Jolla Place
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 bedroom floor plans available. LuxerOne Package 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!