VILLAS DE SANTA FE

The asset is located in San Antonio, TX, which is the seventh largest city in the US and has a population of 1.4 million representing an 8.1% growth rate since 2010.  Significant organic rental upside upon acquisition, as current ownership is charging rents considerably below comparables.  OREI anticipates $108/unit of organic, mark-to-market rent growth.  Value-add opportunity remains in 104 units (50%) with the installation of stainless-steel appliances, new cabinet fronts, faux wood flooring, kitchen tile backsplash, granite countertops, and updated lighting and plumbing.  Upon interior renovation, OREI anticipates a $105/unit average rent premium, in-line with similarly renovated product within the submarket.