
THE
THE SARAH
A Luxury Class A+ Multifamily Investment Opportunity
THE SARAH AT LAKE HOUSTON
Humble,Texas
Investment Highlights THE SARAH AT LAKE HOUSTON
350
UNITS
2020
YEAR BUILT
17.35
ACRES
911
AVG UNIT SQFT
98%
OCCUPANCY
318,746
RENTABLE SQFT
The Sarah at Lake Houston Drone Video
WHY WE LOVE THE SARAH AT LAKE HOUSTON
- Rent Growth - Management has been able to push rents up between $200-$500 during our contract period for various units with no CAPEX
- Location, Location, Location - Submarket is a HOT Class A location with retail, access to major highways and about 15 minutes from George Bush International Airport
- Increasing NOI - In spite of increasing interest rates we have been able to keep the projected cashflow in place due to increasing NOI
- Other Income Generation Opportunities - Lot of low-hanging fruit to further push up revenues with boat-parking, building out covered parking, renting out clubhouse and covered pool cabana, premiums for units with views of lake and pool and yards.
- Recession-resistant Asset - Brand-new luxury construction means low expense ratios and low Capex budgets. No big budget repairs to plan for and a great solid property to park money over a recession.
- Institutional Quality Asset - Highly desirable asset to institutional buyers like REITs.
- High income demography - both on property and in 1 mile radius. Stable tenants and low delinquency issues during a downturn.
- Long-term Hold Options - High quality new build gives us the option to refinance and hold longer if needed.
- Instant Equity - Third party appraisal report came out at an as-is value $2M higher than our purchase price and a stabilized value that is $5M higher
- Cost Segregation Benefits - Last but not least an estimated cost segregation depreciation about 90%
EXECUTIVE SUMMARY
DEAL HIGHLIGHTS
CLASS A+ ASSET
#1IN RENT GROWTH
120% POP GROWTH
$135K AVG INCOME
IDEAL LOCATION
WHY WE LOVE THE SARAH AT LAKE HOUSTON
Management has been able to push rents up between $200-$500 during our contract period for various units with no CAPEX
Brand-new luxury construction means low expense ratios and low Capex budgets. No big budget repairs to plan for and a great solid property to park money over a recession.
Both on property and in 1 mile radius. Stable tenants and low delinquency issues during a downturn.
BEST IN CLASS AMENITIES
- Resort-style swimming pool with sunbathing ledge
- Covered outdoor entertainment and lounging areas with TVs, kitchen and outdoor fireplace
- Fitness center with cardio and weight equipment and large windows throughout
- State-of-the-art multi-sport simulator
- Executive business and conference center
- Hydration and snack bar
- Entertaining kitchen
- Game area with shuffle board
- Lakeside lounge
- Grilling areas with seating
- Hammock park
- Pet park
- Pet washing station
- Covered parking available
- Attached parking available
- Boat storage available
- Storage units available








LUXURY INTERIORS






- Granite counterops
- Subway tile backsplash
- Pendant lighting
- Undermount sinks
- Gooseneck faucet
- Stainless steel appliances
- Combination of white and light wood cabinetry with pulls
- Luxury vinyl plank flooring
- Ceiling fans in bedrooms and living room
- Side by side enclosed walk-in showers and bathtub
- Framed mirrors
- Walk in closets with built in shelves
- Alarm systems
- Washers and dryers in all units
- Natural views of the lake at the property
- Private balconies and fenced in patios
MULTI-TIERED EQUITY STRUCTURE
MULTI-TIERED EQUITY STRUCTURE

Class A investors sit in the prime position in the capital stack. Class A has a preferred return (pref) of 9% – paid out
monthly.
The minimum investment is $100,000.
Due to the position in the capital stack,Class A investors have no upside upon disposition or another capital event and do not share in depreciation or other profits or losses.
This tier is for investors who prefer stronger cash flow and minimal risk.
Class B, C, D, & E investors are at the same payment priority level in the capital stack and sit behind Class A investors, per the diagram.
The minimum investment is $50,000 for Class B and $200,000 for Class C.
The pref is 7% for Class B and 8% for Class C. Cash flow from operations remaining after paying out Class A will be distributed to Class B & C investors on a quarterly basis.
These tiers are for investors who want strong returns over the life of the investment, including both cash flow and equity. Class B & C investors will participate in the upside upon disposition or capital events.
Class B, C, D, & E investors are at the same payment priority level in the capital stack and sit behind Class A investors, per the diagram.
The minimum investment is $500,000 for Class D and $2,000,000 for Class E.
The pref is 9% for both Class D and Class E. Cash flow from operations remaining after paying out Class A will be distributed to Class D & E investors on a quarterly basis.
These tiers are our premier classes for investors who want to maximize their returns over the life of the investment. Class D & E investors will participate in the upside upon disposition or capital events.

PROJECTED INVESTOR RETURNS

OTHER INCOME POTENTIAL

PRIVATE YARDS
There are 26 private yards the property is not currently charging for. At $75 per month, we will capture $23,400 additional income per year.

STORAGE UNITS
There are 133 storage units at the property. At $75 per month, this will capture $83,790 of income per year.

GARAGES
There are 128 garages at the property. At $125 per month, this will capture $172,800 of income per year.

VALET TRASH
Valet trash generates income and keeps the property looking great. At $25 per month, this will capture $94,500 of income per year.

Total Additional Income
$667,020
Total Additional Income Potential Per Year,
Which Captures $15M+ In Additional Value

WATER/SEWER
Tenants will reimburse the property for water/sewer usage, capturing ~$108,000 of income per year.

AMENITY FEE
We will be increasing to $13 per month and charge for providing top-tier resort-quality amenities to residents. This will capture $51,870 per year.

INTERNET
We will create additional income by providing Internet to our tenants and charging them for that. This will capture $132,660 per year.
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