We are thrilled to provide you with the latest developments on our ongoing motel to apartment
conversion project in McAllen, TX. Here are some key updates since acquiring the 29-unit motel in
December 2022:
Strategic Acquisition
We acquired the motel at an affordable rate of $21,000 per door, establishing a strong
foundation for our strategic vision to reposition this asset from an old, run-down motel into a
desirable apartment community.
Seller Finance Advantage
Our prudent negotiation secured excellent seller finance terms, with only 9% down and 91%
of the acquisition financed by the seller at 0% interest and 0 payments until June 2024,
ensuring a favorable financial runway.
Comprehensive Renovation
Each unit is being transformed into a full-fledged studio apartment, featuring complete
kitchens with gas top stoves and ovens, dishwashers, and in-unit washer/dryers. These units
will be fully furnished, prioritizing comfort and convenience for tenants.
Successful Rezoning
We are pleased to announce that we have successfully collaborated with the city to rezone
the asset from a motel to multifamily apartments. This achievement enhances the property’s
potential and aligns with our long-term goals.
Capital Restructure and Strategic Partnership
While our original timeline for renovations was altered, we strategically restructured the
capital stack of the property. The Motel to Apartment Conversion Fund, LP, has secured
majority ownership of the property in order to strengthen its financial position. Additionally,
we are pleased to introduce a new co-General Partner (co-GP) partner who contributed
essential capital and brings years of experience in the multifamily and hospitality space. The
reshaped ownership structure enhances our capacity to bring in expertise while securing
majority ownership for the fund.
Renovation Progress
Our timeline indicates that the property will be fully renovated and leased before the end of
this year. With meticulous leasing and property management strategies in place, we expect
occupancy rates to approach 100% and rent rates to surpass initial projections by 20-25%.
We are committed to providing you with ongoing updates as our project continues to evolve. These
significant developments underscore our dedication to maximizing the property’s potential and
ensuring robust returns on your investment.
Your continued trust and support are deeply appreciated.
ATTENTION
Come see us in person! We are going to be at the Family Office Club event Sept. 7-8th in San Francisco, and then at the Passive Investor Event Sept. 8-9 in Dallas! If you’d like to attend and visit us in person, here are the links to learn more about the events and register: Family Office Summit: https://familyoffices.com/summit/
If you’d like to attend the Family Office event, reach out to laura@familyoffices.com
Passive Investor Event Details: https://passiveinvestorevent.com/
If you’d like to attend the Passive Investor event, click this link to register:
https://whova.com/portal/registration/passi_202307/?source=7ai11bv3
