An Houston-based investment group purchased 3 apartment communities (total 280 units) with a value-add strategy: renovate units, upgrade amenities, and raise rents. The total renovation budget was $2M over 18 months. Tell Projects was selected as the general contractor.
Property 1: 120-unit garden-style in Greenspoint. Class C. Purchase price: $8.5M. Renovation budget: $850K ($7,083/unit). Target: raise rents from $850 to $1,100 (+29%).
Property 2: 96-unit mid-rise in Sharpstown. Class C. Purchase price: $7.2M. Renovation budget: $720K ($7,500/unit). Target: raise rents from $775 to $1,050 (+35%).
Property 3: 64-unit garden-style in Aldine. Class C. Purchase price: $4.8M. Renovation budget: $430K ($6,718/unit). Target: raise rents from $750 to $950 (+27%).
Renovation Scope (all properties): Kitchen: new cabinets, granite countertops, stainless appliances, tile backsplash. Bathroom: new vanity, toilet, flooring, light fixture. Flooring: LVP throughout. Paint: full unit. Fixtures: new lighting, ceiling fans, door hardware. Exterior: paint, landscaping refresh, pool deck repair, clubhouse upgrade.
Execution Strategy: We renovated 5-8 units per week across all 3 properties simultaneously. Dedicated project manager for each property. Weekly progress reports to ownership. Bank draw management for the construction loan.
Result (18 months): All 280 units renovated. Average rent increase: 22% (from $798 avg to $973 avg). NOI increased by $585,000/year. Property valuation increased by approximately $7.3M (at 8% cap rate). Total ROI: 365% on renovation investment.
Call (832) 203-7987 for apartment portfolio renovation planning.
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