101663 . 215 Home SFR Corpus Christi, TX

Highlights:

• Significant upside with cash flow and embedded equity day one
• Opportunity to scale with additional 117 homes in Dallas-Fort Worth
• Extremely risk mitigated investment opportunity
• Institutionally managed and operated portfolio for several years
• Continued supply challenged market driving further rent and value growth
• Costs of ownership is more burdensome than renting by hundreds of dollars per month
• Loan Assumption at 5.74% interest with Berkadia
• Ninety-Nine percent (99%) 3 bedroom and 4 bedroom homes averaging 1901/sf
• Strong in place cash flow with discount to retail pricing opportunity
• Historically strong occupancy averaging 95%-96%
• Lagging supply of single-family homes and higher for longer mortgage rates driving rentership and revenue growth
• Motivated Seller with institutionally operated, managed, and reporting systems
• All SVN® Offices Are Independently Owned & Operated
• Local Broker License Information: www.SFRhub.com/realestatelicensing

Description:

Contact:
TOM JOHNSTON
Managing Director | Designated Broker
SVN | SFRhub Marketplace
T: 602.441.5354
C: 602.403.3695
tom.johnston@svn.com
License #: BR507919000


BOR:
Steve Fithian
SVN | Trinity Advisors
Managing Director

Significant upside with current cash flowing investment portfolio in Corpus Christi, TX. This 215 home SFR rental portfolio, which can be purchased with an additional 117 homes in Dallas-Fort Worth upon investor interest, has been institutionally managed and operated for several years. This is a rare opportunity to acquire homes with embedded equity and strong cash flow Day 1. Corpus Christi, as a more tertiary market, has not seen wild swings in pricing, rather offers a strong and steady housing market in a more competitive or affordable landscape. The median home price in 2024 was $279K, a solid 5.1% YOY home price appreciation.

Corpus Christi offers a vibrant coastal community, while not being immune to the shortage of housing across the country, supply in the local market here is also struggling to keep pace, furthering demand for housing. The increased costs of materials and labor for building new homes in Corpus Christi is a limiting factor for keeping up with demand, putting pressure on would be buyers to compete with limited existing home inventory as well. This bodes very well for investors seeking steady rent and value growth within a high quality SFR investment portfolio. Averaging 2004 vintage and current rents of $2,106 this portfolio consistently demands higher quality tenants by choice. Year over year rents increased 4.9% by the end of 2024, coupled with the current inventory and supply constraints, the value proposition for investors here is significant. This portfolio has been institutionally managed for several years, all homes have been remodeled, has strong in place cash flow, and a motivated seller offering a buyer embedded equity day one with a unique discount to retail pricing rarely seen in the market today.

The portfolio is currently operating at 95% occupancy, with vacancy rates trending downward rolling into the peak seasonal leasing season. Historically the portfolio has fluctuated between 95% - 96% occupancy and currently sits 10% below stabilized year 1 rents, with current rents 7.8% below market rents today, offering a significant value add rent growth opportunity in first 12 months of operating. Very rare to see a large institutionally managed portfolio outside of a primary market, creating opportunity for investors to take advantage and ride the coat tails of a properly run portfolio with strong in place cash flow, limiting future investment on unit turns and bigger ticket cap ex items moving forward, as the owner has detailed records showing proper care, maintenance, and Cap Ex work done to keep high quality tenants in place. The next buyer may focus more attention on revenue growth and marketing, rather than costly and unexpected unit turns. Many of the tenants here are longer term residents, allowing the next operator to drive revenue through lease renewals, increasing additional income, and less than typical unit turn costs, as residents have limited opportunity to rent other quality homes nearby given continued shortage of available inventory, creating an innate lock in effect.

The gross potential income today is slightly below market rents due to strong management, at $5,435,478, offering the next investor, with minimal operating adjustments over the next 12 months, to reach a Stabilized Year 1 Gross Annual revenue of $6,045,523. Recognizing the limits of available inventory in a steady growth market on top of higher for longer mortgage rates creating less retail buyer demand, the rental market is poised to stay strong. Rentership by choice is here to stay. And though the disparity between the cost of renting and cost of owning are not as exasperated as seen in larger markets, it’s still nearly $200 cheaper to rent than to own the same home in Corpus Christi. Another important factor investors should consider, which also drives rentership, which the simple comparison of renting vs paying a mortgage doesn’t calculate, are the additional hidden costs of ownership, making renting for more affordable than owning. Renting is quickly becoming a hassle-free lifestyle choice, especially in Corpus Christi, where 43% of residents rent their homes, slightly higher than the national average.

Corpus Christi is a dynamic environment influenced by a variety of trends adding to its stable and steady growth rate and insulating home price fluctuation seen in more volatile markets around the country. Investing in a healthy market with stable growth and limited competition from larger investors, especially given the day one equity realization gain for buying below retail pricing, nearly eliminates all downside risks, while offering outsized returns. Corpus Christi is home to the Port of Corpus Christi, approaching its centennial, was built in 1926 and is one of the largest ports in the United States and has created over 98,000 port related jobs. Companies like CITGO and Valero tap into an existing talent pool that is bolstered by area colleges like Del Mar College and Texas A&M University-Corpus Christi. Connecting highways, rail, and air service helps companies move their goods, ideas and people between Corpus Christi and major markets across the United States, bringing in over $50B over a 10-year period, which is certainly accretive to the city’s $23.3B annual GDP. Other major contributors to the population’s 448,000 residents include aerospace, aviation, and chemical and petroleum manufacturing. Major employers in Corpus Christi include Bay, Ltd., CITGO, First Data Corporation, Flint Hills Resources, H-E-B, Kiewit Offshore Services, Sam Kane Beef Processors and Valero Refining. Hosting a top three port in the United States ensures the continued, stable and steady growth needed for an investor’s confidence in the long-term prospect of owning and operating 215 quality homes in Corpus Christi.

SVN SFRhub Marketplace is proud to offer such a unique investment opportunity with significant value upside, strong in place cash flow, embedded day 1 equity, along with the greatest downside risk mitigation an investor will find on the market today.


Corpus Christi and the surrounding region is culturally rich and diverse, offers excellent educational opportunities, beautiful climate, land- and sea-based recreation, a strong economy, exceptional healthcare facilities, and affordable living. Corpus Christi has a warm subtropical climate similar to those of Northern Florida cities, except that the city is located in a semi-arid region with less rainfall and significantly lower costs of living.

The City thrives on a strong economy largely attributed to the Port of Corpus Christi. Many energy companies have invested in developments near the port to facilitate transportation of energy, food, products and services, bringing in over $50B in the last 10 years, a large contributor to their sizeable $23.2B GDP for a relatively smaller MSA with less than 500,000 residents. The Port itself has contributed to over 98,000 jobs and has created ancillary business growth with the likes of CITGO and Valero, universities like Texas A&M with satellite campuses and the University of Del Mar College, attracting more than $65 billion in private industrial investments, further engendering a thriving community. Other major economic industries include aerospace, aviation, and chemical and petroleum manufacturing. Major employers in Corpus Christi include Bay, Ltd., First Data Corporation, Flint Hills Resources, H-E-B, Kiewit Offshore Services, Sam Kane Beef Processors and Valero Refining.

Corpus Christi offers lower costs of living in a beautiful coastal environment with a lower cost of living compared to other larger Texas MSAs. This business and family friendly location continues to attract family looking to relocate from Austin, Dallas, and San Antonio for a more affordable and laid-back lifestyle, adding to the already highly skilled work force. Both families and retirees enjoy a thriving healthcare system in the area, as well strong educational systems from elementary through college students. Corpus Christi encompasses 15 public elementary, middle and high schools, many of which have been recognized on U.S. News & World Reports best rankings. This thriving coastal bend really has it all, whether seeking leisure activities or water sports, a thriving economy, historical and cultural art scenes, strong science and industry schools and jobs, and great food offers residents of all demographic backgrounds opportunities to live and thrive.