NNN Chartwell Court, LLC
Available for ยง1031 exchange w llc investment
Offering Purchase Price: $19,550,000
Offering Price Per SF: $80,453
- Purchase Date: 2nd Quarter, 2007
- Offering LTV: 63.68%
- Offering Price Cap Rate: 5.96%
- 1st Year Cash Flow: 6.28%
Chartwell Court is an institutional quality, 243-unit Class A apartment community in North Houston, Texas. Located on more than 14 landscaped acres, the approximately 254,000-square-foot property includes 19 two-story soft toned brick residential buildings and an inviting clubhouse/leasing office as well as striking resort-style pool area featuring fountains and multi-colored brick surrounds.
Available for ยง1031 exchange w llc investment
Chartwell Court enjoys considerable frontage along the heavily-trafficked Ella Boulevard, and offers easy access to Interstate 45, Hardy Toll Road, Sam Houston Tollway (Beltway 8), and lies approximately five miles from George Bush Intercontinental Airport. The property is currently 91% occupied, and features a generous parking ratio of 1.9 spaces per unit.
Property Summary
Chartwell Court is an institutional quality, 243-unit Class A apartment community in North Houston, Texas. Located on more than 14 landscaped acres, the approximately 254,000-square-foot property includes 19 two-story soft toned brick residential buildings and an inviting clubhouse/leasing office as well as striking resort-style pool area featuring fountains and multi-colored brick surrounds. Chartwell Court offers a spacious average unit size of 1,043 square feet per unit, each of which include an attached remote entry garage, ground floor slate entries, nine-foot ceilings, crown moulding, fullsize washers and dryers, frost-free refrigerators with ice makers, and other luxury amenities. Chartwell Court enjoys considerable frontage along the heavily-trafficked Ella Boulevard, and offers easy access to Interstate 45, Hardy Toll Road, Sam Houston Tollway (Beltway 8), and lies approximately five miles from George Bush Intercontinental Airport. The property is currently 91% occupied, and features a generous parking ratio of 1.9 spaces per unit.
TIC Offering
- Offering Size: $7,100,000
- Price Per 1% Ownership: $71,000equity:ย $124,500 ย and assumed debt
- Minimum Investment per SPE: 3.00% =$213,000 equity and $373,500 assumed debt for a total purchase price of $586,500
- Suitability: Accredited Investors Only
LLC Offering
- Offering Size: $355,000
- Price Per Unit: $5,000
- Minimum Investment: $25,000
- Suitability: Accredited investors only
Business Plan
- Preserve the capital investment.
- Realize income through the acquisition, operation and sale of the
property. - Make monthly distributions, which may be partially tax-deferred as a result of depreciation and amortization expenses.
- Within approximately five years, profitably sell the property based on the value added through effective management and operation of the property.
- There is no guarantee that the business plan will be successfully executed, that the propertyโs value will be enhanced, or that the property will be sold within the planned time period.
- The Property was originally constructed in 1995 and may require more capital expenditures than newer buildings.
- A number of apartment communities of similar size and amenities are located in the Houston, Texas apartment market and may compete with the Property. Competition from nearby apartment communities could make it more difficult to attract new tenants and ultimately sell the Property on a profitable basis. According to REIS, Inc., the vacancy rate for the fourth quarter 2006 in the Houston apartment market is approximately 7.1% and the vacancy
rate in the Northborough submarket for the same period is approximately 8.5%. - Conflicts of Interest – An affiliate of the manager acquired The Park at Spring Creek Apartments in June of 2005, approximately 17 miles from the Property.
Unit Amenities
- Nine-Foot Ceilings and Crown Moulding
- Built-In Microwaves
- Automatic Icemakers
- Large Garden Style Oval Bathtubs
- Full Size Washers & Dryers
- Slate Entries
- Panic Alarms
- Private Attached Garages with Remote Access
- Wood-Burning Fireplaces
- Built-In Bookshelves
- Dual Vanities
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Community Amenities
- Clubhouse
- Resort Style Swimming Pool with Fountains
- Indoor Jacuzzi
- 24 Hour Fitness Center
- Sun Deck
- Wireless Internet Cafe
- Courtyard with Grills
- Landscaped Grounds
- Pet Stations
- Controlled-Access Entry Gates
Location Information
Houston is the largest city in the state of Texas and fourth-largest in the United States (trailing only New York, Los Angeles and Chicago). The city covers more than 600 square miles and is part of the seventh-largest metropolitan area in the U.S. with a population of more than 5.2 million. One of the fastest growing cities in the nation, Houston is home to a thriving business economy that has rapidly diversified from its strong energy base. Home to 18 Fortune 500 companies and more than 5,000 energy related firms, Houston is considered by many as the Energy Capital of the world. This economic diversification includes growth in high-technology industries, medical research, health care and professional services.
Apartment Market
- A total of 6,350 units are scheduled to come online in the Houston area this year, an increase of only 1.4 percent to existing inventory. New supply in 2006 expected to be consistent with last yearโs deliveries.
- The gap between average Class A asking rents and the monthly mortgage payment for a median-priced home, using traditional financing, has increased 52 percent in the last year, due primarily to higher interest rates.
- Houston employers added 21,300 jobs during the first half of 2006, bringing the 12-month gain to 66,000 jobs. During the third quarter, payrolls are expected to rise by another 6,800 positions.
- The U.S. Department of Laborโs Bureau of Labor Statistics (BLS) reported a seasonally unadjusted employment rate of 4.7% in September, down from 5.8% a year earlier.
ABOUT Triple Net Properties, LLC
Triple Net Properties, LLC has time-tested experience in real estate syndications, acquisitions, development, construction, leasing and property management. Triple Net currently manages a growing portfolio of over 32.5 million square feet of property in 28 states valued at over $4.3 billion. Although past performance is no guarantee of future results, Triple Net Properties, LLC has an unparalleled track record and has acquired 234 properties to date. Triple Net and affiliates have sold 81 properties valued at $1.80 billion since 2000.
Triple Net Properties, LLC is a wholly-owned subsidiary of NNN Realty Advisors, Inc., a nationwide commercial real estate asset management and services firm.