Luxe at Katy (formerly Remington at Katy) is a 352 unit “A+” class property located in Katy, Texas which was purchased on October 31st, 2017 for $46,000,000. The property is a 2015 construction in a rapidly growing Katy submarket and currently maintains near-100% occupancy levels. The Remington was originally constructed with the intent to sell within 3 years of completion. During this process, priority by management was placed in rapidly getting full occupancy. Due to this, rents were not competitively adjusted to market rates in the area and concessions were relied on heavily to reach this target.
These management shortcomings are a major reason we believe the property is poised for great revenue growth in the near term using Newport RE Group management practices to boost revenue and customer satisfaction. In addition to streamlining expenses with the resources available to Newport RE Group the property will be rebranded to help justify rent increases which will cultivate a tenant-focused environment which will further reduce costs associated with tenant turnover. Using these strategic methods, we expect revenue to rise from $5,200,000 under current management to $6,300,000 by the third year of ownership.