Cancun Apartments

1855 Wirt Rd, Houston, TX 77055

Investment Details

Location Houston, TX
Asset Class B
Acquired Date April 2015
Number of Units 326
Purchase Price $15,644,000
Sale Date July 2018
Sale Amount $18,180,000

Location

Cancun Apartments, a 309-unit apartment complex located on Houston’s west side, represented a significant value-add opportunity in a growing market. The property’s prime location, combined with its potential for rental income growth, made it an ideal target for repositioning and optimization.

The value-add approach centered around achieving substantial rental increases, with the average rent rising by more than $200 per unit across the complex. These rental bumps were achieved through targeted upgrades and improved property management practices, which elevated the quality of the apartments while enhancing the living experience for tenants. By utilizing bank debt as the primary lending source, Nord Group was able to maintain favorable financing terms throughout the project, optimizing returns for investors while keeping operational costs manageable.

In addition to the rental income growth, Nord Group focused on operational efficiencies, streamlining expenses while maintaining the property’s appeal and tenant satisfaction. This combination of increased revenue and controlled costs led to a significant enhancement in the property’s net operating income (NOI), driving overall asset appreciation.

Upon the successful sale of Cancun Apartments, investors saw a strong return on their investment, with a 20.49% annual IRR. The project’s success underscored Nord Group’s ability to execute value-add strategies in high-potential markets, transforming underperforming assets into high-performing investments.