332 SFR Home Investment Portfolio, Texas

Highlights:

• Significant upside with cash flow and embedded equity day one
• Opportunity to purchase in bulk and/or per MSA
• In place assumable loans, 5.97% blended loan assumption in bulk
• 5.74% assumable loan in place for Corpus Christi portfolio
• 6.52% assumable loan in place for DFW portfolio
• Extremely risk mitigated investment opportunity
• Institutionally managed and operated portfolio for several years
• Continued supply challenged market driving further rent and value growth
• Ninety-nine (99%) percent 3 & 4 bedroom homes, remaining 1% are 5 bedroom homes
• 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
• 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

Extremely unique opportunity to acquire a 332 home SFR investment portfolio in one of the top economic and population growth markets in the country, Texas. This portfolio is concentrated in Dallas Fort Worth and Corpus Christi, with 35% of homes (117) located in DFW and 65% of homes (215) located in Corpus Christi. This portfolio can be purchased in bulk with assumable loans in place or separated out by MSA, also with assumable loans per MSA. The blended interest rate in bulk for entire loan assumption is 5.97%. Several value-add opportunities exist by purchasing this institutionally managed and operated investment portfolio at a heavy discount to retail values. The first, and what we believe is the greatest opportunity, is to purchase As Is and operate quality assets with minimal cap ex needed given the quality of management that has been in place for several years, continue cash flowing, and gradually wind down leases and sell individually over 18 months to realize the significant equity gain embedded within the Seller’s strike price. The second opportunity is continue operating with strong cash flow in two high growth markets, eliminating downside risk given the embedded equity per home at purchase price, continue driving rents alongside natural home price appreciation, and creating efficiencies on operations by adding scale in these markets. The third option is a variation of the first and second, given the embedded equity, mitigated risk, and operational efficiencies an institutional investor can achieve by adding scale, the next operator can take advantage of adding homes in these markets, winding down leases on homes that may not fit into your defined investment criteria, selling them to retail buyers while capitalizing on the equity gain per home, and driving value and revenue growth for those homes that better fit your buy-box for longer term holds. This opportunity is a true win win no matter how you look at it.

Dallas-Fort Worth’s 117 homes are well positioned in an MSA that continues to lead economic and demographic growth in the United States. The greater Dallas MSA leads the country in net in migration, coupled with high demand and low supply, the future for DFW looks bright. This demand is creating rent growth between 2025-2027 at an estimated 9.6% according to John Burns Real Estate Consulting (JCREC). They are also estimating home value appreciation over the same time period at 7.1%, following 2024’s stagnating prices.

Corpus Christi offers 215 homes with significant value upside and strong cash flow. 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, though Corpus Christi recently saw a 5.1% YOY home price appreciation in 2024, bringing the median market home price to $279K. Year over year rents increased 4.9% by the end of 2024, coupled with the low current inventory and supply constraints, the value growth proposition for investors is significant.

This bulk investment portfolio boosts many advantages for institutional and/or high net worth investors. Historically and consistently operating at 95%-96% occupancy, currently the entire portfolio is 8.9% under current market rents in aggregate. Given rent growth projections in DFW and Corpus Christi for 2025, the next investor/operator can realize and take advantage of under market rents today plus natural rent growth in 2025 to achieve an 11% gross revenue bump by 2026, driving net operating income to $5,290,512. Both Dallas & Corpus Christi, not unlike the rest of the country, are supply constrained markets with residential mortgage rates staying higher for longer, limiting retail buyers’ abilities or willingness to purchase, further driving rentership by choice or necessity.

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.


Dallas-Fort Worth continues to lead economic and demographic growth in the United States. No other MSA in the country has added more jobs or people compared to Dallas in the last 4 years post pandemic. DFW ended the year slightly above the national average on employment growth. Financial activities jobs in the area are up 4% year over year and the DFW MSA added over 153,000 new residents, many finding jobs in a robust Healthcare and Government marketplaces.

Companies continue to seek opportunity in the Dallas-Fort Worth MSA and relocating here due to the low cost of doing business and highly skilled labor force across various sectors. Recently, both Goldman Sachs and Wells Fargo announced the construction of regional campuses, employing over 9000 jobs. Charles Schwab recently relocated their headquarters from San Francisco to the Westlake suburb in DFW, creating a 1.1m SF campus and 5,000 additional jobs starting in 2025.

Corporate relocations have been essential for the underlying success of the metro area. Toyota recently moved its 2 million SF North American headquarters to Plano, bring over 4,000 jobs. Other national leaders have relocated to the area as well in recent times, such as Caterpillar, AECOM, USAA, McKesson Corp, and more have found new homes in Dallas-Fort Worth, bringing more manufacturing, engineering, pharmaceutical and distribution centers to the economy. Coupled with existing companies such as, AT&T, 7-Eleven, JPMorgan Chase, and Fannie Mae as large existing employers, the DFW market will continue to thrive. Low costs of doing business, centrally located in the USA, and access to major transportation hubs will continue to seed growth and fuel demand for the economic competitiveness, as well as the residential and commercial real estate growth in the market.

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, furthering 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 Christa offers lower costs of living compared to other larger Texas MSAs, while boosting a beautiful coastal living environment as well. This business and family friendly location continues to attract families 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.