Salt Creek Ranch Townhomes
Lubbock, TX
Download Offering Memorandum
Co-Manager
Cor3 Capital LLC
Asset/Strategy Type
Single Family Built-for-Rent
Minimum Investment
$50,000
Additional
Information
Express Interest
Targeted Hold Period:
3 years
Final Unit Count:
80 Single Family Homes
Fairway America, LLC (“Fairway”) and Cor3 Capital LLC (“Cor3”) (collectively the “Co-Managers”) intend to recapitalize Salt Creek Ranch Townhomes (the “Community“ or “Property”) located in Lubbock, TX. The 80-unit, 2018 built townhome community is located approximately 16 miles from Lubbock Preston Smith International Airport and 9 miles from the heart of downtown Lubbock. The Co-Managers believe the Community is a unique opportunity to acquire a townhouse subdivision built in 2018 for the rental market. As a result, the business plan is expected to generate competitive returns.
Investment Summary
- Desirable Location: The Property is situated in a desirable location within the submarket, in close proximity several schools. The Property is located across the street from Laura Bush Middle School & Lubbock Cooper West Elementary and is conveniently located 5.5 miles from Miller Elementary School, 6.2 miles from Lubbock Christian University, and 6.2 miles from Lubbock Christian School, a private elementary, middle, and high school. Additionally, the Property is only 7.6 miles from Texas Tech University, which has an enrollment of approximately 40,000 students.1
- In-Place Cash Flow and Mark-to-Market Opportunity: The Property is currently 98% occupied, providing an opportunity for investors to benefit from immediate expected cash flows. Additionally, the project offers potential upside through leasing up the remaining vacancies, as well as expiring leases, at market rates which are estimated to be +14.7% higher than average in-place rents.
- Strong Market Fundamentals: The Outlying Lubbock County submarket has shown resilient strength in the past year, with market rents having increased 7.4% to an average $941 per unit per month, resulting in an average rent burden of approximately 13.7%.2 Additionally, the submarket reported positive net absorption over the past 12 months, absorbing approximately 5.8% of the total units in the market, placing upward pressure on market rents.2
The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, lack of diversification, and capital call risks. This opportunity is unsuitable for investors who are not prepared to hold their ownership position indefinitely and who cannot afford a complete loss of capital.
1 https://today.ttu.edu/posts/2020/09/Stories/Enrollment
2 CoStar Analytics Multifamily Statistics, April 2022
Property & Renovation Summary
Address
5811 102nd Street
City / State
Lubbock, TX
Year Built
2018
Renovated Units
80 units
Average Unit SF
925 SF
Rentable Building Area
74,000 SF
Average Targeted Market Rent
$1,281
Expected Hold Period
3 years
Total All-In Cost
$15,684,900
