LSCRE is thrilled to present Preserve at Copper Springs, a 376-unit, 2003-built apartment complex in Houston, TX, targeting an early-March 2026 close.

Given the seller’s liquidity needs and loan maturity in April, they are forced to sell. Due to LSCRE’s track record of $134M in acquisitions with the seller, LSCRE became the easy buyer of choice at a $2.5M discount to the seller’s target.

Location:

• #1 submarket for T12 absorption in Houston and 0 units under construction within a 3-mi radius
• Houston is projected to add nearly 172,000 jobs from 2025 to 2029, ranking 1st in projected employment growth nationwide (Moody’s)
• Moody’s projects that Houston will add 496,000 people from 2025 to 2029, #1 among the 20 largest U.S. metros
• ~15 min from Apple/Nvidia AI supercomputer factory in Houston set to open in 2026, resulting in 3,000+ new jobs
• Schools: Cy-Fair ISD (#2 in Houston MSA and #1 for athlet

Property:

• Purchase Price: $61,500,000 ($163,564/unit) / Going-In Cap Rate: 5.21% / Y1 Cap Rate: 6.09%
  o Camden Midtown (1999) sold for $170k/door in June 2025 in an inferior location with lower effective rents
• $1.2M spent on major renovations by the seller since 2022
• Upgraded Units: black appliances, granite countertops, grey shaker-style cabinets, undermount sinks, vinyl plank
  flooring, and full-size washer/dryer sets
• 73.0% breakeven occupancy

Business Plan Highlights:

• <1 mi away from LSCRE’s best-performing asset, Preserve at Copperleaf
  o Preserve is currently 97% occupied and has maintained 95%+ occupancy
  o Less than 0.3% T12 delinquency at Preserve at Copperleaf
• 19% NOI increase driven by expense savings
  o Operational Efficiencies from 520 units within 3.5 mi / 1,426 units within 10 mi
  o Valet-trash in house / $56k savings
  o Vertically integrated maintenance/construction: LSCRE staff are trained to perform the majority of make
  ready work in-house (paint, resurfacing, flooring, HVAC)
  o Bulk Wi-Fi installation
   $110/mo amenity fee rollout as achieved at Preserve at Copperleaf

Capital Stack:

• Debt:
  o ~$39,975,000 / 65% LTV / 5.30% rate / Freddie Mac 7Y Full IO / Standard Defeasance
  o 1.35x Day 1 DSCR
• Equity: ~$27,250,000

Return Metrics:

• AAR: 19.4% / EM: 1.97x (5-year projected hold) / Avg CoC: 6.0% / Yield on Cost: 6.27%