Case Study- Vantage at Tomball
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Vantage at Tomball
(Midwest Multifamily)
Prevail Alternative Assets – in partnership with ClearWorth Capital – is pleased to announce Vantage at Tomball – a multifamily acquisition opportunity located in beautiful Tomball, TX, a NW suburb of Houston, TX. Vantage presents an opportunity to acquire a recently-developed asset in a growing corridor with favorable macroeconomic trends.
Vantage at Tomball is a rare newly constructed asset (2022 vintage) in a booming submarket surrounded by multiple Fortune 500 employers, fantastic school districts and direct access to the every growing Grand Parkway Toll Road (TX-99).
ClearWorth Capital specializes in revitalizing and repositioning underperforming multifamily real estate assets – they have 25 years of experience in the greater Houston area and have developed, acquired, and managed 3,000+ units within 10 miles of Vantage.
If you are interested in this opportunity or have any questions, please reach out to your advisor or contact Regan Smith at rsmith@prevailiws.com
Investor Return Summary*
- LP Common Equity Contribution
Class A Common Equity – $4,000,000- 9% Preferred Return
- Net IRR Target:Â 24% – 26% (36 Month Hold)
- LP Net Equity Multiple Target: 1.92x
- Stabilized Cash Yield Target: 6.50%
- LP Common Equity Contribution
Class B Common Equity – $3,019,632- 9% Preferred Return
- Net IRR Target:Â 24% – 26% (36 Month Hold)
- Net Equity Multiple Target: 1.83x
- Stabilized Cash Yield Target: 6.50%
Investment Snapshot
- Total Project Cost – $43,888,480
- Senior Loan – $29,003,337
- 65.2% Loan-to-Cost
- 5.95% All-In Rate
- LP Equity – $15,019,632
- Prevail Equity – $11,000,000 (46.7%)
- GP Equity – $1,668,848
Property Information
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- We are purchasing a 2022 vintage asset from the original developer at a price significantly below replacement
cost. A previous buyer was seeking tax-credit agreements and was rejected, which led to the buyer backing
out. The developer extended their loan one final time and was forced to sell. - No other multifamily units are under construction or proposed within 5 miles of this asset. Within a 10-mile
radius from the asset, only 2 other multifamily properties are under construction. The area is undergoing rapid
absorption of existing multifamily units, which we believe will create a favorable supply/demand dynamic after
acquiring the asset. - Two Fortune 500 companies – ExxonMobil and Hewlett Packard – recently relocated their headquarters to new
campuses located 10 minutes from Vantage. Additionally, several retail and mixed-use developments have
been delivered in the last 5 years. Retail in the immediate surrounding area includes 2 HEBs, Target, Sprouts,
Cinemark, Academy Sports, and 20+ restaurants. Affluent areas like The Woodlands, Tomball, Spring, and Klein
are all located within a 15-minute drive from Vantage. - We believe Vantage at Tomball’s zoning to Klein ISD – combined with 2-and-3-bedroom floorplans and
amenities – will make it an attractive place to live for both individuals and families.
*These are all preliminary estimates, with no guarantee of performance, and involve risk.