Imperial Landing Apartments

Acquisition Manager: Greg Nelson
Number of Units: 265
Year Built: 1978
Acquisition Date: 2013

Sentinel Capital purchased Imperial Landing Apartments in the 4th Quarter of 2013. The property is located in the Northeast Houston Submarket of Greenspoint, located directly in-between Interstate 45 and the Hardy Toll Road.

Imperial Landing, at the time of acquisition, was in close proximity to a to be developed industrial park (Pinto Business Park). Pinto Business Park, to-date, is fully developed as we anticipated and several major distribution companies, such as Sysco, are occupying space at this development.

The property consists of 328 units constructed in 1978, and is the ideal product supply for the blue-collar workforce demographic that is positioned in this market. We purchased this property on an off-market, principal to principal basis from a seller whom had owned the property since 2007. Being that the property was being owner-managed by the wife of the seller and the current manager had been on-site for over 20+ years, we discovered through our due diligence an extraordinary amount of improvement opportunity, some of which was a day-one opportunity post-acquisition.

Some of the revenue opportunities we found were through; overpriced service contracts, below market rents with no RUBS programs intact, and several units that were occupied with family members of the seller whom were not paying any rent.
Through our asset management and operational team, we were able to replace the manager resulting in rent receipt increasing immediately, release non-revenue units, rebid all of the property service contracts, institute a RUBS program as leases renewed, and perform value-add enhancements such as repainting the property and interior upgrades to bring rental rates to the market demand. Within three months of Sentinels ownership we increased annual revenue by $150,000.

The property has performed exceptional since and in 2016 we were able to be released from the seller financing we put in place, refinance the asset, while withdrawing over 115% of our initial equity.