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kyle whitney
Senior Director (713) 724-1456 kyle.whitney@berkadia.com
TX CRE #658451
jed dalton
Senior Financial Analyst (832) 314-5078 jed.dalton@berkadia.com
TX CRE #787068
joey rippel
Managing Director (601) 919-5155 joey.rippel@berkadia.com
TX CRE #654288
chris young
Managing Director (972) 743-5742 chris.young@berkadia.com
TX CRE #630674
jeffrey skipworth
Managing Director (214) 533-3322 jeffrey.skipworth@berkadia.com
TX CRE #560404
chris curry
Senior Managing Director (713) 553-0151 chris.curry@berkadia.com
TX CRE #566750
investment sales
houston, tx office
2229 San Felipe, Ste 1600
Houston, TX 77019 (713) 974-1300 | Berkadia.com
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506 South is well-positioned for new ownership to capture increasing cash flows in a rapidly growing job market of Southeast Houston, driven by a diverse local economy with prominent aerospace, engineering, petrochemical, and health care industry anchors. Most of the units can be updated, and higher rents are supported by the rent roll and successfully renovated peers. The top-rated school district and high-quality lifestyle amenities in the area all ensure healthy housing demand, steady traffic, and ample opportunity to grow rents and returns.
506 South can be purchased with Lakewood, a complementary community in Southeast Houston for a portfolio execution. The properties are available together or separately.
investment highlights
the location
the property
tucker fama
Senior Financial Analyst (281) 923-3856 tucker.fama@berkadia.com
TX CRE #9002106
ESTEE IBÁÑEZ
Senior Financial Analyst (713) 469-4512 estee.ibanez@berkadia.com
TX CRE #687201
INVESTMENT SALES AND MORTGAGE BANKING
JOHNNY KING
Director
Mortgage Banking (713) 469-4502 johnny.king@berkadia.com
CUTT ABLESON
Senior Managing Director
Mortgage Banking (713) 469-4503 cutt.ableson@berkadia.com
506 S Austin St
Webster, TX 77598
CARL RASMUSSEN
Associate Director
Mortgage Banking (713) 469-4514 carl.rasmussen@berkadia.com
Corby chaffin
Managing Director
Mortgage Banking (713) 469-4516 corby.chaffin@berkadia.com
the opportunity
community amenities
apartments/ UNITS
investment summary
Renovated clubhouse and leasing office
Resident kitchen with coffee bar
Business center
Swimming pool with lounge chairs
Trellised poolside gas grills
Children’s playground
Pet friendly with waste stations
Onsite laundry facility
Covered parking and carports available
Community Amenities
tucker knight
Managing Director
Mortgage Banking (713) 469-4515 tucker.knight@berkadia.com
Price
Terms
Year Built
Total Acreage
Total Units
Total SF
Avg Unit SF
Avg Rent/Unit
Avg Rent/SF
Leased | Occupied
Market
All Cash
1965/1969
5.50
180
155,675
865
$1,121
$1.30
94% | 93%
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2025 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
jed dalton
Associate Director
(832) 314-5078
jed.dalton@berkadia.com
TX CRE #787068
$1.7M capital infusion from current ownership that addressed deferred maintenance, updated exteriors and common areas, and upgraded select unit interiors
Well-designed unit mix for suburbs - 76% 2B and 3B units and townhomes available
Averaged 92% occupancy for the last decade
High retention in 2025 with 6% average higher rents on renewals
Cash Flowing, Strong Performing Asset
27% lower insurance rates on renewal in April (new policy to be assumed by buyer)
88% of units have classic finishes or have been partially updated
Add washer and dryer connections and machines
Implement bulk wifi/cable agreement and valet trash service
Revenue Growth Potential For New Ownership
$236 average higher in place rents on fully renovated units
31 properties within 3-mile radius averaging $100+ higher rents
$184 rent gap with renovated competitors
$436 rent gap with Class A properties in the submarket
No units under construction in submarket and one property in lease-up
3.2% average annual rent growth projected 2026 to 2027 (RealPage)
Market Support For Higher Rents
Demand Drivers For Value Appreciation
Located in Webster, the regional economic epicenter of Southeast Houston with 205K jobs located within 10 miles of 506 South
Webster is the “Aerospace Capital of the United States”, anchored by NASA, Boeing, and the largest concentration of new commercial space companies in the nation
Webster is also known as the “Medical Center of the South” with more than 2M SF in 17 medical facilities and 7K+ local workforce
Webster has Houston’s best-performing suburban mall and over 150 restaurants and entertainment venues, many of which rank as #1 or #2 in the world, state, or Houston
New area growth includes Flyway Texas, anchored by the first Great Wolf Lodge in Houston, the $200M Texas A&M Space Institute next to NASA’s Johnson Space Center, and a planned 1.5M SF Exploration Park at NASA’s Johnson Space Center
Zoned to A-rated high school in the #5 ranked school district in Houston (Niche)
Updated unit interiors in select units
Townhomes available
8-foot ceilings
Wood-style flooring
Black or stainless steel appliances
Gas ranges in select units
Granite countertops in select units
Washer/dryer connections in select units
Private patios or balconies
Unit Amenities