The 501 Sul Ross Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston, Texas. It contains approximately 8,496 square feet of rentable area and was built in 1958. It is located in the Neartown-Montrose neighborhood. The asset is nestled in a quiet, established, residential neighborhood with an abundance of old oak trees and yesteryear charm. Per owner, the roofs were replaced in March of 2018, and gutters were added and decks updated as needed.
The tenant profile is folks with mild mental disabilities. There is a common meal area next door, so there are no stoves in the units. Residents enjoy close proximity to the University of St. Thomas, the Museum of Fine Arts, the Houston Museum of Natural Science, Rothko Chapel, the Houston Zoo, the Texas Medical Center and Downtown Houston. Per owner, currently there are no leasing concessions and all units have appliance hook ups but no stoves. Financing will be a challenge, due to the master lease. Post rehab, the 1 Br could get $1,050, and 2 Br-1ba could get $1,150; 2 Br-2ba $1,195; 3 br-2ba: $1,295. 9 HVAC, 3 window units.
The asset is currently being master leased to Grover Shante for $10,850/month until February 28, 2021. The owner pays property taxes, insurance and major repairs. Tenants pay all utilities and most maintenance. The tenant has reportedly master leased the asset for 30 years for mental health patients. If the tenant leaves, at least $10K/door in upgrades would be needed. More likely $20K - $35K/door will be needed to make this competitive with current area market offerings
