New Multifamily Investment Opportunity In Booming Houston, TX

The Ridley Apartment Homes [506 C]

20-25%

PROJECTED ARR

8%

PREFERRED RETURN

5 YEAR

PROJECTED HOLD TIME

$75K

MIN INVESTMENT

Investment Highlights

Extremely Low-Cost Basis ($66k/unit)

Unique opportunity to purchased a stabilized property from a distressed seller at $66k/unit who purchased the property in 2018 for $88k/unit.

7 - 9% Target Avg. Cash on Cash

The Ridley offers investors a strong 7 -9% Average Cash on Cash over the hold period.

Optimal Location In Houston In Galleria/Uptown Submarket

The Ridley holds an exceptional location that offers unparalleled connectivity to major Houston employment and entertainment epicenters.

Low Risk Business Plan With Conservative Underwriting

The underwriting for The Ridley has been exceptionally conservative, with $3.0M in capex allocated and $810k set aside for reserves.

Favorable ~63% LTV Agency Financing

~63% LTV agency financing, with a ~6% fixed rate on 30 year amortization.

20-25% *Targeted Avg Annual Return

Strong average annualized return metrics targeted based on a 5-7 year hold term.

Executive Summary

Unique Opportunity To Purchase A Stabilized Property From A "Distressed" Seller At A Low-Basis With Favorable Agency Financing

Incredibly Low Cost Basis ($66k/unit) 30% Below Average Submarket Sale Comps With ~63% LTV Agency Financing

Disrupt holds an incredible opportunity to acquire a stabilized property from a motivated seller with advantageous agency financing at approximately 63% Loan-to-Value (LTV).

A Low Risk 5-Year Business Plan with Extremely Conservative Underwriting

Since 2019, the current ownership has strategically invested $4 million in capital expenditures allowing us to capitalize off their completed renovations.

Fantastic Location In Houston’s Uptown/Galleria Submarket

The Ridley is anchored by the Galleria/Uptown Business District, home to 84k employees and a myriad of upscale retailers within 1.5 miles of the property.

Why We Love This Deal

Aggressively Discounted Basis

We landed this deal at a 25% discount from the sellers original purchase price in 2018

Long Term Fixed Rate

This is a Freddie Mac Loan with an advantageous long term fixed interest rate

Strong Submarket Fundamentals

The Galleria/Uptown District is the 15th largest business district in the United States

Distressed Partnership, But Not A Distressed Asset

Original owner bought out by equity group and they are currently looking to divest from real estate

Conservative Approach In A Volatile Environment

Financial projections do not rely on a value-add program to drive investor returns

Property Overview

The Ridley / 2815 Greenridge Dr. Houston, TX 77057

Interior

Exterior

405

Units

1971

Year Built

14

Buildings

2

Stories

10

Site Size/acres

90%

Occupancy

$1,023

Average Rent

743

Avg Unit Size

Market Overview

Strong Market Fundamentals

Houston Is The 4th Largest MSA In The Nation And Has One Of The Most Thriving And Diversified Economies In The World.

Houston ranks #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. (Moody’s) 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 nonenergy fields, such as business services, technology, aerospace, medicine, and manufacturing. Bolstered by the recent headquarters relocations of HewlettPackard Enterprise, Exxon and NRG Energy, Houston now has the third-largest concentration of Fortune 500 companies in the nation.

Excellent Submarket Demographics

2.4%

Projected Population Growth (2023-2028)

115K

Average Household Income (3 Mile Radius)

64%

Renter-Occupied Households

66.3%

White Collar Jobs

733K

Average Home Value (3 Mile Radius)

57K+

Projected Jobs To Be Added in 2024

Location Highlights

The Ridley Enjoys a Prime Location Near Houston Hot Spots and Employment Epicenters

Highlight #1

With a highly sought after location in the bustling Galleria/Uptown Business District, The Ridley is centered in a prime location that is home to 84,000 employees and over 2000 companies. This vibrant hub serves as the beating heart of the region, attracting top talent and fostering a thriving business community. Positioned at the center of economic activity, The Ridley is an ideal destination for professionals seeking a dynamic work environment.

Highlight #2

Located in the prime hub of Houston, The Ridley boasts an exceptional location that offers unparalleled convenience and connectivity. With its close proximity to major transportation routes, The Ridley ensures seamless accessibility to Houston's prominent employment centers.

Highlight #3

Just minutes away from The Ridley is a plethora of retail options. From major retailers such as Walmart, Home Depot, and Academy, to popular brands like Ross, REI, PGA Superstore, and Hobby Lobby.

Investment Process

Review Offering

Investors should review the offering documents and make a commitment through the investor portal (link to portal included in marketing materials).

1

E-sign

Please electronically sign the offering documents within the investor portal.

2

Funding

Using the investor portal, send funds by ACH or wire. Investments must be funded by April 30, 2024.

3

Closing

The Ridley is scheduled to close June 2024.

4

OUR TEAM

DR. ADEBAYO FASANYA

Dr. Breathe Easy Capital

Founder and CEO

DR. GEORGE OZOUDE

Time Health Capital

Founder and CEO

TAREK EL MOUSSA

TEM Capital, LLC

Founder and CEO

Dr. Cherry Chen

The Real Estate Physician

Co-Founder

FERAS MOUSSA

Disrupt Equity Partners

Principal

BEN SUTTLES

Disrupt Equity Partners

Principal

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