The James-Myers Multifamily team in the Austin office of Marcus & Millichap has been selected to market Buena Vista Gardens, a 108-unit apartment property in Odessa, Texas.
Stable Odessa Asset
Buena Vista Gardens is a well-maintained apartment home community located in Odessa, Texas. Within one mile of US Highway 385 and approximately one and one-half miles from Interstate 20, the primary thoroughfare in Odessa, the central location of Buena Vista Gardens allows for ease of access to major traffic arteries and all parts of Odessa. Completed in 1972, the property offers a central courtyard, mature trees, 101 available storage units for rent, and spacious floor plans. There are five water wells in place with the potential to support new landscaping without the high cost of using municipal water for irrigation. The excellent location of the property near highly-traveled commuter highways, coupled with abundant employment opportunities and a strong demographic profile, offers potential investors a long-term, value-appreciation investment opportunity.
Strong Secondary Texas Market
Odessa benefits from its proximity to the Permian Basin, the largest source of oil and gas deposits in the United States. Oil is the primary economic driver in the area. Since the 2009 economic recession, Odessa has seamlessly recovered and is currently experiencing a “turbocharged” economic expansion. Consumer activity is a driving force in the local economy as $4 billion were spent on consumer retail activity in 2011, representing a 26.1% growth factor over the previous year. Through the first quarter of 2012, retail sales have increased a reported 18.4% over the first quarter of 2011. Year over year, Odessa’s economic numbers continue to show growth and expansion. Outside of the oil and gas industry, there are various other viable business opportunities in Odessa, as the city actively maintains a healthy pro-business climate to promote increased business investment. Growth in Odessa is expected to continue, allowing for a continued stream of potential renters.
Strong Employment Base
As the seat of Ector County, Odessa has seen its population grow to 150,000 residents. Oil and gas remain the city’s largest industry, while the healthcare sector is showing rapid growth, with three hospitals, several medical specialists and a cancer center. Overall, job growth has blossomed with an average of 5.8% growth rate in March 2012 and 6.5% through the first quarter of 2012.
Recent Capital Improvements
Ongoing capital expenditures at Buena Vista Gardens include new tile flooring (25 units), new vinyl laminate flooring (10 units) and newly replaced air conditioning units (15 units). The 2,600 square feet resident clubhouse recently received a $44K renovation which includes new flooring, a new kitchen and bathrooms, air conditioning and exterior brick repairs. The laundry facility benefits from a $10K newly completed upgrade. In 2009, new roofs were completed in addition to 2007 interior improvements.
Storage Units Provide Additional Value-Add Opportunity
The presence of 101 storage units ranging from 45 square feet (5’x9’) to 140 square feet (10’x14’) presents added value to residents as well as additional potential income to the Investor. Currently, there are 59 vacant units available for rent to residents or to the general public. Lease-up of the available units provides a significant opportunity to increase cash flow and add-value to the investment potential of Buena Vista Gardens.
To receive the complete Offering Memorandum, please return the Buena Vista Gardens Confidentiality Agreement.