Verandas Bear Creek

5455 Timber Creek Place Dr, Houston, TX 77084

Investment Details

Location Houston, TX
Asset Class B
Acquired Date July 2015
Number of Units 124
Purchase Price $7,840,00
Sale Date July 2018
Sale Amount $11,500,000

Location

Verandas at Bear Creek, a 211-unit apartment complex located in West Houston, represented a compelling medium value-add opportunity in a growing submarket. With its prime location and potential for rental growth, the property was ideally positioned for a strategic repositioning to enhance its overall appeal and profitability.

The value-add strategy focused on implementing high-end finish-outs throughout the complex, this included modernizing units with premium materials, updated appliances, and enhanced fixtures. As a result of these upgrades, the average rent increased by approximately $185 per unit per month. The improvements were tailored to offer a competitive edge in the market while maintaining cost efficiency, ensuring the renovations delivered strong returns on investment.

By utilizing straight bank debt as the primary financing vehicle, Nord Group was able to maintain favorable lending terms throughout the project, maximizing investor returns while minimizing financing costs.

Upon completion of the value-add renovations and operational enhancements, Verandas at Bear Creek delivered outstanding financial performance. The project achieved an impressive 21.95% annual IRR for investors, showcasing the success of Nord Group’s value-add strategy.