- High-Occupancy Submarket
- Limited Supply with No New Construction
- Prime Value-Add Opportunity
- Strong Employment Drivers Supporting Rent Growth
- Offered Free and Clear
High-Occupancy Submarket
The Kerrville Portfolio consists of 405 units across five properties, situated in a 95.6% occupied submarket. The portfolio includes Chimney Forest (49 units), La Casa (134 units), Lime Creek (124 units), Midtown (20 units), and River Oaks (78 units), offering investors a well-diversified asset base with strong existing demand.
Limited Supply with No New Construction
Kerrville remains an undersupplied market, with zero new multifamily developments or assets currently in lease-up. The lack of new competition ensures continued demand for well-located, upgraded rental housing.
Prime Value-Add Opportunity
With $7,500 per unit in targeted renovations, the portfolio presents a compelling value-add opportunity. Upgrades such as stainless-steel appliances, cabinet refinishing, flooring enhancements, and bathroom renovations are projected to drive up to $200 in rent premiums across the following unit types, making it a highly attractive repositioning opportunity:
- Studio Units: $100 per unit rent premium
- 1 BD/1 BA Units: $150 per unit rent premium
- 2 BD/2 BA Units: $200 per unit rent premium
There are multiple comps that serve as a strong market comp, demonstrating the rent growth potential achievable through value-add renovations. Investors can leverage proven demand for upgraded units in the area to maximize returns.
