Located in Opportunity Zone Near Demand Drivers

Driftwood Apartments is located centrally in the Downtown Submarket, offering very close proximity to elementary schools, high schools, Del Mar Community College campuses, Texas A&M – Corpus Christi, Hospitals, Ocean Drive, and popular retailers such as HEB, Walmart, Home Depot, Starbucks, and Whataburger. Demographics in this area strongly support quality workforce housing such as Driftwood Apartments. The average household income of $65,205 in a 2-mile radius and $66,810 in a 5-mile radius bodes well for the property.

Both tenants and employers are attracted to the area due to the high quality and low cost of living. Corpus Christi is #4 in the nation for purchasing power and #1 in Texas for “What $100,000 is Actually Worth in the Largest U.S. Cities,” according to SmartAsset. Corpus Christi was also ranked #1 for Best Cities to Start a Business according to Lantern by SoFi. Tesla recently announced they are breaking ground on a 1,200+ acre lithium refinery, located in the greater Corpus Christi area of Texas. Once complete, the facility will represent an investment of greater than $1B in Southwest Texas, bringing an estimated 1,000 construction jobs and approximately 250 employees.  

The property is less than 0.5 mile from heavily traveled South Staples Street. It is 1.5 miles from State Highway 286, a major north/south throughfare which goes from Downtown Corpus to State Highway 358, and less than 2.5 miles from Ocean Drive, a 7-mile stretch running parallel to Corpus Christi Bay with waterfront real estate, parks, and walking/biking trails. Although the property is located near the waterfront, it is not in a FEMA designated flood plain.

Driftwood Apartments is located in an Opportunity Zone, encouraging new development in the area that will benefit the property in the long term. There may be opportunities for new ownership to take advantage of this designation through continued development/enhancements to the property.

$2MM Invested in CapEx in 2022

Current ownership invested $2,000,000 in CapEx in 2021 & 2022, providing a strong foundation for new ownership to focus on cosmetic renovations and operational improvements that will increase revenue. Exterior renovations include repainting the exterior, repairing the parking area and concrete walking paths, replacing exterior lighting, installing solar screens on all front exterior windows, and replacing roofs on 38 of the 40 buildings, with associated wind certifications included. Interior renovations include LED ceiling lights, 52” fans, blinds, new floors (vinyl plank and refinished hardwood), new bath vanities and lights, dual flush toilets, and mini split AC units with heat, as well as repainted cabinets and resurfaced countertops in the kitchens. 80% of units have updated black refrigerators and stoves. The majority of the units have been replumbed with PEX, and new water heaters have been installed in most of the units.

90% Occupied with Value-Add Opportunity 

Overall, tenants are satisfied with the current amenities, as evidenced by the strong 90%+ occupancy rate. Current community amenities include an on-site leasing office, pet-friendly policies, and abundant parking. Units currently feature updated flooring, balconies/porches on 4-plex units, new mini-split air conditioners/heaters in all but three units, and LED lighting.

New ownership has the opportunity to build upon this foundation of amenities and increase revenue. Infrastructure is currently available to finish out the on-site laundry facility, not only creating an additional revenue stream, but adding a major convenience for the tenants. In addition, there are two units that require finish-out that can be utilized as two- bedroom units or a combination of one two- bedroom and a leasing office, allowing the new owner to lease the existing renovated unit currently being utilized as the leasing office.