Summary

Serrano Apartments is a 438-unit class A apartment complex located in Houston, TX.  Constructed in 1999, Serrano Apartments consists of twenty-three three-story residential buildings.  Community features include two resort-style swimming pools with a lap pool, covered outdoor heated spa, 24-hour state of the art fitness center, executive business center with conference room and internet access, spacious clubhouse with kitchen, concierge services, video-monitored gated entry, billiards room, and a gazebo with barbecue area.  The Property is considered to be part of the Houston Metroplex.

Prior to acquisition, the property had been suffering from significant operation deficiencies including lack of capital resulting in a significant decrease in occupancy from 93% to 40% over the past 18 months due to severe mismanagement and inadequate capital reserves.  The Operator will implement a short- to mid-term renovation opportunity with a focus on interior renovation.  The issues at the Property are superficial in nature and can be remedied by implementing a focused renovation program, coupled with the introduction of experienced management.

The investment profile is a combination of income and capital appreciation.