1655 Witte Road, Houston, TX 77080
Witte Oaks is a 124 unit, garden style complex, well located in the Spring Branch area of northwest Houston, just minutes from I-10, Beltway 8 and convenient to major shopping at Memorial City Mall as well as other retail shops and centers. Constructed in 1964, the property appears to be to good condition and provides a pool, a fitness center, storage areas, playgrounds and laundry rooms. Residents enjoy cable ready units, walk-in closets, mini-blinds, ceiling fans, washer/dryers and patios/balconies. Per owner, 10 units are indiviually metered with individual HVAC and the rest of the property is master metered/chilled water.
Approximately $500,000 was spent in rehab during 2016 and 2017, per owner. Upgrades include extensive work to the chiller and exterior paint. 8 units were upgraded; these units bring $150/month increased rents, per management.
The property earlier this year, had occupancy issues, resulting in a springing of a Cash Management Lockbox. and all rental payments go to the lender first and after subtracting the debt service, tax and insurance escrows and increased capex reserves, the balance is remitted to the owner. The property has to show 1.25 Debt Service Coverage to remove the Lockbox.
Most properties in Spring Branch run 94%+ occupancy. It is assumed by the Broker that performance will continue to increase, particularly with a rehab and upgrade program. Property hit 100% occupancy as of 11/24/17! Perhaps it is time to cancel concessions! Note: 14 units are individually metered for electricity, the rest are master metered.
Tom Wilkinson has performed real estate marketing serves for institutional and individual investors since 1972. He has a BA in Mathematics from Rice University and an MBA in Real Estate Investments from the University of Texas. In addition to brokering real estate, Tom previously owned and operated more than 80 properties. Tom has successfully marketed properties for and to dozens of individual, business and institutional sellers and buyers, including REO properties for the RTC, FNMA and FreddieMac.