Project Update – Bear Crossing – Waco, TX

The last few months have been frantic with leasing up the property ahead of the school year. We leaned heavily on our property mgmt team to ensure a solid lease up and they executed very well. Here is a quick summary of where we are at: 

  • Occupancy – current occupancy is 89.58% (86 beds), up from ~70% when we took the property over. Sept occupancy is expected to finish at 91%, with Oct & Nov projected at 100%!! 
  • Capex – We’ve completed the energy and water saving phase of the capex plan and are beginning to see the cost savings as the summer winds to an end. We had higher than expected electric costs due to the heat this summer, and had to replace a few condensers that couldn’t handle the 114 degree days, but we’re back on track and looking forward to watching those costs come down. On each unit turn we’re installing new LVT flooring in the downstairs bedroom units and new carpet in the upstairs units. We’re also repainting the exterior doors, handrails, and roof trim. We’ve been able to save on capex as the asset was in great shape when we took it over and we haven’t had to do much heavy lifting.
  • Financials – Our NOI is continuing to increase as we near full occupancy. One major note to make is that we are already charging our Year 2 projected monthly rents of $600 plus a $50 utility billback and receiving very little pushback. This gives us great confidence in the demand and our ability to capture higher than proforma rents going forward. We are currently working with Metric to ensure that all of the proper line items related to capex are allocated properly in order to maximize our draw. We look forward to sending out an updated financial package once that exercise is complete. 

Although we’re excited about the progress we’ve made, we’re not resting on our laurels. We have already begun marketing for the December leasing season and expect to remain occupied while continuing to push rents, which we believe are still below market.

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