The Hangar on Steubner represents the most effective value-add tactic. By beginning with land, investors can take advantage of significantly greater potential returns than those offered by B/C class multifamily value-add deals. Many investors are under the assumption that new development projects undergo higher risk, however, with risk mitigation initiatives, the risk level is comparable to large-scale A/B value-add multifamily projects.
We meticulously select partners based on a comprehensive evaluation of their track record and past achievements. We are thrilled to partner with exceptional development teams renowned for their creation of stunning garden-style communities in Texas,” said Ben Suttles, Managing Partner at Disrupt Equity.
The Hangar on Stuebner Development Project is poised for success in an area with a constrained market of supply and demand. There are only 3 deals, totaling 691 units, to be delivered in the next 2 years within a 3-mile radius of the property, all while population growth is growing by 3%+ yearly for the next 5 years.
“The current market conditions are favorable, as cap rates for B-class multifamily properties align with those of A-class multifamily properties in top markets. Moreover, by investing in new developments with similar risk profiles, it becomes possible to allocate capital towards high-quality assets in rapidly advancing areas. This presents a unique opportunity with a promising risk/return potential,” said Feras Moussa, Managing Director at Disrupt Equity.
The city of Houston has continued to grow at a rapid pace and is projected to have the largest population gain in the United States from 2020 – 2025 (549.8K additional residents). A recent projection by Moody’s ranks Houston #1 and #3 for total population and job growth through 2025, respectively, just behind New York and Los Angeles. In addition, Houston is ranked second in projected net migration at 296.8K.
Houston’s employment base has become increasingly diverse. In 1981, the economic base was dominated by energy-related businesses, with nearly 85 percent of all jobs in those sectors. Today, nearly half of all jobs are in non-energy fields, such as business services, technology, aerospace, medicine, and manufacturing.
Disrupt Management, an in-house multifamily property management firm of Disrupt Equity, will handle these assets. They currently manage over 7000 units in the Austin, Dallas, Houston, and San Antonio markets.