HOUSTON TRIPLE PLAY OVERVIEW
The Game Plan for
Three Target Investment Properties
Three Property Portfolio
…of well positioned apartment communities representing nearly 1,300 units negotiated off-market.
Current Valuations are Favorable
…to local market comparative property values.
Rapidly Growing Houston Market
…is poised for significant under-supply dynamics.
Rescue Capital Investments
…in two properties deployed as preferred equity with priority treatment.
Impending Loan Maturity Incentives
…for seller to divest quickly, allowing purchase at a discount.
HOUSTON TRIPLE PLAY OVERVIEW
The Game Plan for
Three Target Investment Properties
Three Property Portfolio
…of well positioned apartment communities representing nearly 1,300 units negotiated off-market.
Current Valuations are Favorable
…to local market comparative property values.
Rapidly Growing Houston Market
…is poised for significant under-supply dynamics.
Rescue Capital Investments
…in two properties deployed as preferred equity with priority treatment.
Impending Loan Maturity Incentives
…for seller to divest quickly, allowing purchase at a discount.
HOUSTON TRIPLE PLAY OVERVIEW
The Game Plan for
Three Target Investment Properties
Three Property Portfolio
…of well positioned apartment communities representing nearly 1,300 units negotiated off-market.
Current Valuations are Favorable
…to local market comparative property values.
Rapidly Growing Houston Market
…is poised for significant under-supply dynamics.
Rescue Capital Investments
…in two properties deployed as preferred equity with priority treatment.
Impending Loan Maturity Incentives
…for seller to divest quickly, allowing purchase at a discount.
HOUSTON TRIPLE PLAY OVERVIEW
The Game Plan for
Three Target Investment Properties
Three Property Portfolio
…of well positioned apartment communities representing nearly 1,300 units negotiated off-market.
Current Valuations are Favorable
…to local market comparative property values.
Rapidly Growing Houston Market
…is poised for significant under-supply dynamics.
Rescue Capital Investments
…in two properties deployed as preferred equity with priority treatment.
Impending Loan Maturity Incentives
…for seller to divest quickly, allowing purchase at a discount.
HOUSTON TRIPLE PLAY OVERVIEW
The Game Plan for Three Target Investment Properties
Three Property Portfolio
…of well positioned apartment communities representing nearly 1,300 units negotiated off-market.
Current Valuations are Discounted
…to original purchase price and local market comparative property values.
Rapidly Growing Houston Market
…is poised for significant under-supply dynamics.
Rescue Capital Investments
…in two properties deployed as preferred equity with priority treatment.
Impending Loan Maturity Incentives
…for seller to divest quickly, allowing purchase at a discount.
The Houston Triple Play
Target Investments
Two Rescue Capital Investments
(Over 900 Units)
Two Preferred Equity Investments with great terms to provide our fund with priority treatment, anticipated significant cash flow, additional potential upside, with a plan we designed to stabilize the properties and provide accredited investors with a greater opportunity to see a return of capital.
The Fund's preferred equity position is first in line to receive cash flow from operations, sale, or refinancing. For capital events, preferred equity is entitled to an 18% IRR (to Fund 17) before common equity investors in the property have their capital returned.
Growth Drivers:
The last dollar of the fund’s preferred equity position is still only 74-83% of current property valuations
Seller seeking recapitalization to facilitate loan modification/extension, presenting an ideal entry point on favorable terms
Expected loan extension anticipated to allow time to pursue the HFC tax abatement strategy
Key Strategy: Rent optimization in a submarket with 3.6% projected annual rent growth
Two Preferred Equity Investments with great terms to provide our fund with priority treatment, anticipated significant cash flow, and additional potential upside, with a plan we designed to stabilize the properties and provide accredited investors with a greater opportunity to see a return of capital.
The Fund's preferred equity position is first in line to receive cash flow from operations, sale, or refinancing. For capital events, preferred equity is entitled to an 18% IRR (to Fund 17) before common equity investors have their capital returned.
Growth Drivers:
Current valuations discounted to original acquisition price
Preferred equity break-even valuations are at 74-83% of current property valuations
Expected loan extension anticipated to allow time to pursue the HFC tax abatement strategy
Seller seeking recapitalization to facilitate loan modification/extension, presenting an ideal entry point on favorable terms
Turnaround Strategy: Rent optimization in a submarket with 3.6% projected annual rent growth
One Off-Market Acquisition
(Nearly 400 Units)
This off-market acquisition opportunity is poised to benefit from targeted renovation, rent growth, Houston market momentum, and forecasted cap rate compression.
The need to sell this well-positioned property has been triggered by the timing of debt maturity and limited capital options available to the seller.
Growth Drivers:
Below comparable market current valuation
Below market rental rates to be increased by $200-300 per unit per month
Planned short-term stabilization with potential long-term capital event upside
Widening supply demand dysfunction expected to drive rent growth
Key Strategy: Optimization of operations targeted to achieve growth in rent and NOI in this high-demand inner-loop submarket
This off-market acquisition opportunity is poised to benefit from targeted rent growth, Houston market momentum, and forecasted cap rate compression.
The need to sell this well-positioned property has been triggered by the timing of debt maturity.
Growth Drivers:
Below comparable market current valuation
Below market rental rates expected to be increased by $200-300 per unit per month
Planned short-term stabilization with potential long-term capital event upside
Widening supply demand dysfunction expected to drive rent growth
Turnaround Strategy: Efficient stabilization and repositioning in a high-demand inner-loop submarket targeted to achieve positive rent growth.
Houston Multifamily
Tailwinds
Houston’s Unmatched Growth Metrics
#1 U.S. Metro for Population Growth (496,000 new residents projected by 2029 according to Newmark)
#1 in U.S. Employment Growth (172,000+ new jobs by 2029 according to Moody’s)
Rent Growth Acceleration: Forecasted 2.9%—effective rent growth from 2025-28 (according to AxioMetrics, Real Page, Realty News Report)
#1 U.S. Metro for Population Growth (496,000 new residents projected by 2029 according to Newmark)
#1 in U.S. Employment Growth (172,000+ new jobs by 2029 according to Moody’s)
Rent Growth Acceleration: Forecasted 2.9% —effective rent growth from 2025-28 (according to AxioMetrics, Real Page, Realty News Report)
Limited New Supply Enhances Value
Only 6% of total new-build inventory is under construction, compared to higher levels in Austin and Dallas (according to Newmark Houston Multifamily Market Report)
Class A absorption remains strong at 20,291 units in 2024, exceeding 10-year averages (according to Newmark Houston Multifamily Market Report)
Rising cost of homeownership further drives demand for high-quality rental housing
Only 6% of total new-build inventory is under construction (compared to higher levels in Austin and Dallas according to Newmark Houston Multifamily Market Report)
Class A absorption remains strong at 20,291 units in 2024, exceeding 10-year averages (according to Newmark Houston Multifamily Market Report)
Rising cost of homeownership further drives demand for high-quality rental housing
Stabilization & Cap Rate Compression Timing
Cap rates in Houston are decreasing with compression expected to drive increase in value as interest rates continue to decrease
Favorable asset pricing today offers potential for quick appreciation as market conditions improve
Transaction volumes are rebounding, indicating increasing investor confidence
Risk Mitigation Through
Preferred Equity Position
Risk
Mitigation
Strategic Advantages of Preferred Equity Investment
Risk Reduction Strategies Through Preferred Equity
Priority Cash Flow Position – Preferred equity is first in line for distributions from cash flow, sales, or refinancing before common equity investors in the property
Downside Risk Mitigation – Break-even valuations range from 74-83% of current property valuations, providing a cushion against market fluctuations.
Targeted Return Structure – Capital events are structured to aim for preferred equity returns of up to an 18% IRR, with additional upside potential
Consistent Cash Flow Potential – Preferred equity is entitled to an 8% return from available cash from operations before common equity distributions
Active Oversight & Governance – Wilkinson maintains approval rights over budgets and major decisions and receives weekly operational reports to enhance accountability
Preferred Equity Returns expected to the fund
Capital events expected to be structured to provide preferred equity returns up to an 18% IRR plus additional upside potential
Preferred equity break-even valuations are at 74-83% of current property valuations
Preferred equity entitled to 8% return from available cash from operations before common equity receives any cashflow from operations
Governance & Oversight: Wilkinson will have approval rights over operating budgets and other major decisions and will be involved in weekly asset management meetings and will receive weekly reports on operations
Priority Cash Flow Position –
Preferred equity is first in line for distributions from cash flow, sales, or refinancing before common equity investors in the propertyDownside Risk Mitigation –
Break-even valuations range from 74-83% of current property valuations, providing a cushion against market fluctuations.Targeted Return Structure –
Capital events are structured to aim for preferred equity returns of up to an 18% IRR, with additional upside potentialConsistent Cash Flow Potential –
Preferred equity is entitled to an 8% return from available cash from operations before common equity distributionsActive Oversight & Governance –
Wilkinson maintains approval rights over budgets and major decisions and receives weekly operational reports to enhance accountability
Walk Off
With…
Potential for 18% IRR to the Fund with structured upside participation
Invest in premium Houston multifamily assets at below-market value
Acquire premium Houston multifamily assets at favorable pricing
Invest alongside proven sponsors with risk-mitigating strategies
Capitalize on Houston’s economic momentum for long-term growth
We’ve already started booking calls. For more details, financial modeling, and investor participation options, please fill out the form to book a call with our Investor Success team.
We’ve already started booking calls. For more details, financial modeling, and investor participation options, please fill out the form below to book a call with our Investor Success team.
*Wilkinson® is not an investment adviser or a broker-dealer. All prospective investors should consult with their own advisors before deciding to invest. This does not constitute an offer to sell or the solicitation of an offer to buy securities. Securities may be sold only to accredited investors and only through an offering memorandum.Total transaction volume rounded up to nearest $100K.
(509) 965-4240
©2025 Wilkinson Corporation. All Rights Reserved
*Wilkinson® is not an investment adviser or a broker-dealer. All prospective investors should consult with their own advisors before deciding to invest. This does not constitute an offer to sell or the solicitation of an offer to buy securities. Securities may be sold only to accredited investors and only through an offering memorandum.Total transaction volume rounded up to nearest $100K.
(509) 965-4240
©2025 Wilkinson Corporation. All Rights Reserved
*Wilkinson® is not an investment adviser or a broker-dealer. All prospective investors should consult with their own advisors before deciding to invest. This does not constitute an offer to sell or the solicitation of an offer to buy securities. Securities may be sold only to accredited investors and only through an offering memorandum. Total transaction volume rounded up to nearest $100K.
(509) 965-4240
©2025 Wilkinson Corporation. All Rights Reserved.
*Wilkinson® is not an investment adviser or a broker-dealer. All prospective investors should consult with their own advisors before deciding to invest. This does not constitute an offer to sell or the solicitation of an offer to buy securities. Securities may be sold only to accredited investors and only through an offering memorandum.Total transaction volume rounded up to nearest $100K.
(509) 965-4240
©2025 Wilkinson Corporation. All Rights Reserved
*Wilkinson® is not an investment adviser or a broker-dealer. All prospective investors should consult with their own advisors before deciding to invest. This does not constitute an offer to sell or the solicitation of an offer to buy securities. Securities may be sold only to accredited investors and only through an offering memorandum. Total transaction volume rounded up to nearest $100K.
(509) 965-4240
©2025 Wilkinson Corporation. All Rights Reserved.