Plano, TX · Member since 2013 · 226 posts · 156 votes
I'm looking at investing in an apartment complex in Port Arthur, and am looking for good info on the MF market there. I like all the numbers for the property, and the projections look conservative-- based on my DFW knowledge. For all I know, the economic loss numbers that I think look really conservative might be unrealistic for that area.
I'm trying to get down there in the next week or so to check it out, but if anyone has any experience or knowledge of the market I'd greatly appreciate any input. I know unemployment is a little high, and its dependent on the oil/gas industry. Supposedly there will also be some LNG export facilities going in, but I don't know if the data I'm seeing already includes that.
Specifically, I'd like to know if there are a lot of multifamily properties there, and if occupancy is an issue.
Residential Real Estate Agent · Groves, TX · Member since 2013 · 105 posts · 27 votes
12y
Well, even though the 'cool kids' like to harlte on southeast texas, some of us still call this area home.
There have been quite a few large apt complexes built in the last couple years to accommodate the construction boom we've had due to our refinery business. The area is experiencing slow steady growth now, but is plagued by the move out-to move up syndrome. Where instead of bettering the community people are from, the move to the closest up and coming when they can afford it. This is causes a pretty big chasm in value neighborhood to neighborhood.
There is money to be made though... if an investor has the insight.
Let me know if you need help. As a lifetime resident and realtor, Ive got the 'scoop'.
Investor · Mc Kinney, TX · Member since 2014 · 59 posts · 19 votes
12y
Get down there and look for yourself. I grew up in the area and was just down there visiting friends in May/June.
Alot is going to depend on the area that the property is in. I don't invest there currently and for the most part wouldn't consider investing (in Pt. Arthur) there except maybe for a small part defined as a square between hwy 347, Hwy 73, Hwy 69 and FM 365. But I could be wrong and your criteria might not match mine.
If you really want a frightening picture just head to the city hall in downtown :-) In my opinion it's like some of the worst parts of Oak Cliff and the Fair Park area if that can draw a comparison for you.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
12y
My only advice is to ensure your insurance expense accounts for the need for hurricane coverage. They got hammered by Rita and took damage from both Katrina & Ike.
The rest is my personal opinion that the whole Beaumont/Port Arthur area is the armpit of the nation. My mother has lived there for 30+ years, just saying!!
Good luck.
Residential Real Estate Agent · Groves, TX · Member since 2013 · 105 posts · 27 votes
12y
Well, even though the 'cool kids' like to harlte on southeast texas, some of us still call this area home.
There have been quite a few large apt complexes built in the last couple years to accommodate the construction boom we've had due to our refinery business. The area is experiencing slow steady growth now, but is plagued by the move out-to move up syndrome. Where instead of bettering the community people are from, the move to the closest up and coming when they can afford it. This is causes a pretty big chasm in value neighborhood to neighborhood.
There is money to be made though... if an investor has the insight.
Let me know if you need help. As a lifetime resident and realtor, Ive got the 'scoop'.
Plano, TX · Member since 2013 · 226 posts · 156 votes
12y
thanks for the input! This will be a completely hands off, passive investment for me. I will not be sponsoring the deal and will have no involvement with the management company. I really just need to get a handle on whether it's realistic to take an apt complex that is 65% full (low numbers due to recent full rehab) and then maintain about 85% economic loss for the next five years. Here in dfw that's almost too conservative, but Port A? I just don't know. I've seen the projections that show a net loss in population, but I'm wondering if that already takes into account the LNG projects?
If anyone has had multifamily experience there, I'd love to hear your thoughts!
Residential Real Estate Agent · Groves, TX · Member since 2013 · 105 posts · 27 votes
12y
As brad said... it GREATLY depends on what area of Port Arthur. North of 73 is doing better population-wise than is south... If you are only silently backing this play, why are the active members not providing you with the information you need?
Plano, TX · Member since 2013 · 226 posts · 156 votes
12y
Uh oh-- this is right by 87 and 73, but it is just south of 73.
I just used the term economic loss to include vacancy, bad debt, loss to lease, etc.
the sponsors have provided quite a bit of information, and more is coming; I just like to do my own research and get multiple opinions. In other words, OVER-analyze everything!
Investor · Mc Kinney, TX · Member since 2014 · 59 posts · 19 votes
12y
So it's close to Gulfway drive (87 as it goes through town) going towards Groves and the Bridge over the Neches River. That was a dumpy area when I was in High School (79-83) and I don't think it's gotten better. Population wise the area has been stagnant since the 50s. I remember my Father had an interest in an apartment in that area in the early 70s and they ended up being a tax scam and we got audited over it.
You mentioned that the units are 65% occupied and they claim because of the reno. Do you happen to know what the occupancy was before the reno? The Address of these apartments wouldn't happen to be on Poole ave?