The Preserve at Copper Springs

Investment Highlights

Preserve at Copper Springs stands out due to its prime location, value-add upside, and conservative financing. The property is located in the #1 Houston, TX submarket for vacancy absorption, with 0 units under construction within a 3-mile radius. The investment offers a 5.21% Going-In Cap Rate, 19.4% Average Annual Return, and 1.97x Equity Multiple.

Location Details

The property is strategically positioned in Houston's fastest-growing market, with the city projected to add nearly 172,000 jobs from 2025 to 2029. The property is also located near the Apple/Nvidia AI supercomputer factory, which is set to open in 2026 and will result in 3,000+ new jobs. Local amenities include Cy-Fair ISD, Cypress Ridge High School, and a 3-mile median income of $82,466.

Property Details

The property features modern amenities and recent upgrades, including upgraded units with black appliances, grey shaker-style cabinets, vinyl plank flooring, granite countertops, undermount sinks, and full-size washer/dryer sets. The property has a $61.5M purchase price, with $1.2M in recent renovations since 2022.

Business Plan Highlights

The business plan includes a proven operational strategy with a track record of success, including scale advantages, in-house valet trash, and vertically integrated maintenance/construction. The plan also includes the installation of bulk Wi-Fi with a $110/month amenity fee rollout.

Capital Stack

• Debt: ~$39,975,000 Freddie Mac 7-year financing
• LTV Ratio: 65%
• Interest Rate: 5.30%
• Term: 7 years
• Amortization: Interest-only
• Day 1 DSCR: 1.35x
• Prepayment: Standard defeasance

Equity: ~$27,250,000, with a total equity requirement of $21,525,000, plus closing costs and reserves.

Return Metrics

• 5-year projected hold period
• 19.4% Average Annual Return
• 1.97x Equity Multiple
• 6.0% Average Cash-on-Cash
• 6.27% Yield on Cost

Offering Details

• Projected Hold Period: 5 years
• Minimum Investment: $75,000
• Preferred Return: 8% compounded
• Distributions: Monthly
• Offering Type: 506(c) Offering
• Accredited Investors Only
• Funding Deadline: February 23, 2026