Sycamore Flats Pasadena, TX

Investment Highlights

• Houston MSA Location Near Employment, Entertainment, & Highways
• Significant CapEx in Past 12 Months: Virtually No Deferred Maintenance
• Proven Value-Add Opportunities: Address Loss to Lease & Increase EGI Nearly 12%
• Offered Free & Clear of Existing Debt

Houston MSA Location Near Employment, Entertainment, & Highways

Located just 20 miles southeast of downtown Houston, Sycamore Flats’ prime accessibility—less than a mile from the Sam Houston Tollway and key highways like 225, Beltway 8, and I-610 Loop—ensures seamless connectivity to major employment centers and surrounding areas. The property’s proximity to Houston Hobby International Airport (7.4 miles) and George Bush Intercontinental Airport (30 miles) further enhances its appeal. 

Sycamore Flats is within easy reach of key destinations, including the University of Houston (15 miles), the Houston Medical Center, Midtown, and NASA-Johnson Space Center (14 miles), ensuring a strong pool of renters working in education, healthcare, and aerospace industries. Additionally, the property is located near recreational and entertainment venues such as the Pasadena Convention Center, Houston Cruise Port, and Armand Bayou Nature Center, offering lifestyle benefits that enhance resident satisfaction. Its location just 15 miles from Houston’s Museum District and Medical Center ensures a steady demand from professionals and students looking for affordable yet accessible living near key cultural and employment hubs.

The area’s economic stability is bolstered by major employers like Shell Chemical, BASF Corp., Boeing, BP Amoco, and the University of Houston-Clear Lake, with the petrochemical industry serving as Pasadena’s largest economic driver. This robust job market attracts a diverse population of professionals seeking quality rental housing. Proximity to prominent retail centers, such as Spencer Square Mall and acres of big-box shopping options (Lowe’s, Target, Best Buy, and more), ensures that Sycamore Flats’ residents have convenient access for everyday needs.

Significant CapEx in Past 12 Months: Virtually No Deferred Maintenance

Current ownership has invested $200,000 into property renovations within the last 12 months. These updates include modern vinyl plank flooring, upgraded kitchens and bathrooms, new black appliances, and stylish kitchen backsplashes in select units, ensuring the property offers contemporary living spaces that appeal to today’s renters. Additionally, the property boasts a durable metal roof, reducing future maintenance costs and adding long-term value.

Unit amenities, such as walk-in closets, ceiling fans, and mini blinds, enhance tenant comfort, while the recently remodeled interiors provide an immediate appeal for prospective renters. The property’s onsite laundry facility adds convenience, and a picnic area with a canopy offers residents a communal space for relaxation. Ample parking ensures hassle-free living for tenants, further boosting the property’s desirability.

Proven Value-Add Opportunities: Address Loss to Lease & Increase EGI Nearly 12%

By addressing the loss to lease and stabilizing rents, a new owner can expect to increase the effective gross income (EGI) by nearly 12%. This immediate potential for revenue growth enhances the property’s appeal for investors seeking a strong return on investment. Based on a 5-year hold, this opportunity could deliver a 9.5% levered internal rate of return (IRR), making it a financially attractive option for long-term investors.

There is also a proven opportunity to increase average monthly rents by $55 per unit as-is, without requiring major capital improvements. With virtually no deferred maintenance, the property offers a low-risk path to improving cash flow from day one. This makes Sycamore Flats not only a stable investment but also one with significant upside potential, appealing to investors looking to capitalize on under-market rents and optimize property performance.

Offered Free & Clear of Existing Debt

Sycamore Flats is being offered free and clear of existing debt, providing the new owner with full control and flexibility in shaping the financial structure of the investment. This allows potential investors to pursue various financing options that best align with their investment strategy, enhancing the overall appeal and customization of the portfolio.

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