Update on Parkwest: The First Class-A Small Multifamily Project in Greater Houston

This morning, I just wanted to provide an update on Parkwest – the first Class -A small multi family new construction project from Value Builders in the Greater Houston market we opened up for pre-construction sales in September.

PRICE REDUCTION 

As you’ve probably heard, mortgage interest rates have been rising steadily since over the last couple of months. When the units were released for pre-construction sales, preferred lenders could secure interest rates of 5.00-5.125% on investment properties purchased by well qualified investors. At this time, going rates are in the 5.375 and 5.5% range. 

Since the developer is committed to providing a solid return on investment for investors in this project, they’ve decided to reduce prices so that the properties provide the same return they did at the lower interest rates.

Below is the updated pricing:

Plan 2573 – 1 Story  3 BR 2 Bath $432,300 

Plan 2662 – 1 Story  3 BR 2 Bath $441,000 

Plan 2930 – 2 Story 3 BR 2.5 Bath $444,000 

Plan 3004 – 2 Story  3 BR 2.5 Bath $444,000

RENT STUDY 

Also, we completed a detailed rent study of apartment complexes in the vicinity of the project that would constitute our competition for tenants. 
Some of the important takeaways from the study:

1. The two most comparable apartment complexes by age and finishes are The Fountains of Conroe and The Retreat at Conroe.
2. Rents at apartment complexes change every week and depend on the season. One of the complexes quoted $1850 just a week ago but $1600 when we did the study. They mentioned that during the high season (spring and summer) their vacancies are very low and their pricing is at the highest. 
3. Availability was non-existent to very low. Most complexes had no 3-bedroom units available for lease and they all had a waiting list.
4. Rents for three bedroom units are $1600 plus a $100-$150 add-on for a one car garage. Average size of the units 1325sf. 
5. Units in comparable apartment complexes come with refrigerators and full-sized washers and dryers included at no extra charge. 

FINAL THOUGHTS

As of the time of this post, the project is 25% sold out with 7 duplexes under contract and several investors in the consideration stage. Below is the updated site map with sold units marked. Based on prior experience, unit sales will start accelerating now 1/4 of the project has sold. 

If you’re considering purchasing an investment property in this new project, please contact us or if you’re seeing this in your email just Hit Reply