Executive Summary
Berkadia’s Multifamily Investment Advisory Team is pleased to present the El Paso 10 Portfolio, featuring 707 units across 10 communities. Located in the highly sought-after Near East submarket, these properties offer immediate, scaled entry into the rapidly growing state of Texas, specifically El Paso, which is recognized as one of the leading secondary markets in the state. The portfolio has been meticulously maintained by current ownership and boasts a high occupancy rate of 97.3%.
The close proximity of these communities to one another is highly advantageous for potential investors, allowing for maximized operational efficiencies through reduced management requirements, the possibility of shared staffing, and the opportunity for programmatic renovations to unit interiors, which can help achieve outsized rental premiums. These efficiencies lead to reduced operational costs and enhanced net operating income.
This offering presents a unique opportunity to gain a substantial foothold in El Paso, Texas, a top-performing secondary market and one of the state's economic engines, by acquiring 10 well-maintained communities with over 10 years of ownership surrounded by employment, retail, and restaurant drivers in all directions.
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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.
© 2024 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.
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EL PASO Office
201 E Main Street
Suite 1600
El Paso, TX 79901
Producers
Justin Chambers
Director
512.969.6838
justin.chambers@berkadia.com
Winston Black
Senior Director 915.544.2400 winston.black@berkadia.com
Justin Cole
Managing Director
512.226.8711
justin.cole@berkadia.com
CONTACT Info
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Investment Highlights
Fort Bliss, known for housing the largest training area (2.32 million acres) for the United States Military, is a key economic engine for the El Paso region. As of 2023, Fort Bliss employs 41,220 people, including 28,784 active-duty service members, and houses over 80,000 retirees. The population directly affiliated with Fort Bliss contributed at least $27.9 billion to the Texas economy.
The William Beaumont Army Medical Center was recently completed in July 2021 within Fort Bliss. It provides comprehensive care to all beneficiaries including active-duty military, their family members, and retirees. The facility is 1.1MM square feet inclusive of a 6-building medical complex. Estimated costs of the facility are approximately $1.4B and the facility contains a Level II Trauma Center. Additionally, in September 2024, the U.S. Department of Veterans Affairs broke ground on the VA El Paso Health Care replacement hospital. This new facility, which will replace the current VA hospital on North Piedras Street in the Central Neighborhood of north El Paso, will be 492,000 square feet, offer 1,500 parking spaces, and represent approximately a $617 million capital investment. The project is estimated to be completed by February 2028.
FORT BLISS PROVIDES MAJOR ECONOMIC IMPACT TO EL PASO
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Thanks to its favorable cost of living, abundant job opportunities, and high quality of life, El Paso has rapidly emerged as one of the most fundamentally sound secondary markets in Texas. As of August 2024, the portfolio boasts an impressive occupancy rate of 97.3%, ranking third in the state. This stability has driven remarkable rent growth, with a notable 3.89% increase from 2023 to 2024.
EL PASO TOUTED AS TOP FIVE SECONDARY MARKET
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Given the current ownership’s thoughtful preservation of the Communities over the past fifty (50) plus years, the properties offer a future investor a scalable opportunity to acquire 707 units with minimal deferred maintenance. Additionally, there is potential to implement a programmatic renovation of unit interiors as they turn, which could help capture higher rental premiums. Potential Upgrades:
• Black Appliances
• New Paint
• Resurfaced Counter Tops
• Refinished Cabinetry
• Updated Hardware
• Updated flooring
• Updated Plumbing Fixtures
• Updated Lighting Fixtures
WELL MAINTAINED COMMUNITIES WITH VALUE-ADD POTENTIAL AND MAJOR RENTAL RUNWAY
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The El Paso 10 Portfolio is ideally situated in the highly coveted Near East submarket of El Paso, renowned for its robust demand. This submarket currently boasts an average vacancy rate of 3.5%, a slight increase from last year’s 3.8%. Over the past five years, the average vacancy rate has been 3.4%, and over the past decade, it has been 5.2%, underscoring sustained demand over extended periods.
As of the fourth quarter of 2024, there are no new units under construction in the submarket, and only 25 units have been added in the last ten years, mitigating risk for existing properties. With no new supply on the horizon, the Near East submarket is poised for significant rent growth. Yardi Matrix forecasts an impressive average rent growth rate of 4.86% from 2025 to 2028, coupled with an average occupancy rate of 96.12% over the same period. These optimistic projections position the El Paso 10 Portfolio to benefit from substantial rent increases and minimal vacancy exposure due to the strong demand.
PREFERRED NEAR EAST SUBMARKET LOCATION WITH IMPRESSIVE FUNDAMENTALS
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Kelly Witherspoon
Senior Managing Director
512.226.8706
kelly.witherspoon@berkadia.com
Adam Sumrall
Director
512.960.2674
adam.sumrall@berkadia.com
ARBOR
CHAPARRAL
EASTRIDGE PARK
EL ESCONDIDO
LAS BRISAS MONTERAY GARDENS
LAS CASITAS
MONTERREY EAST
TERRACE PARK
VISTA SIERRA
WEDGEWOOD PLACE
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EL PASO 10
PORTFOLIO
10 properties | 707 UNITS
EL PASO 10
PORTFOLIO
Opportunity
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El Paso is a key component of the Borderplex region, which includes Las Cruces and Juarez, Chih., Mexico, a city of 2.1 million people as of the 2020 Census. This region is crucial for facilitating seamless trade between the United States and Mexico. In 2021, the Borderplex wasthe fifth-largest manufacturing hub in North America by employment, accounting for 17% of all trade with Mexico. The Borderplex boasts a world-class manufacturing sector, with $94.2 billion in trade with Mexico in 2020, over 495 manufacturing operations, and more than 75 related facilities in El Paso and neighboring Las Cruces.
Historically a major copper refining area, El Paso’s chief manufacturing industries now include food production, clothing, construction materials, electronic and medical equipment, and plastics. In 2023, El Paso County had a Gross Regional Product of $64.4 billion, underscoring its economic significance.
El Paso’s Next Frontier: Advanced Manufacturing
El Paso has gained significant momentum in expanding advanced manufacturing. In 2022, a coalition led by the City and the University of Texas at El Paso (UTEP) was awarded $40 million to develop a regional advanced manufacturing cluster supporting the aerospace and defense industries. These efforts leverage UTEP’s incubation programs and the presence of various military bases, including Fort Bliss, White Sands Missile Range, and Holloman Air Force Base.
EL PASO AND BORDERPLEX REGION BOASTS WORLD CLASS MANUFACTURING
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The Portfolio is strategically located along the north side of Interstate-10 in the Near East submarket of El Paso, providing residents with quick and efficient access to I-10, the city’s major north-south arterial. This prime location offers convenient access to major employers such as Fort Bliss (44,630 jobs), William Beaumont Army Medical Center (3,000 jobs), Texas Tech University Health Sciences Center El Paso (1,900+ jobs), University Medical Center of El Paso (3,000 jobs), Las Palmas Medical Center (2,050 jobs), and the University of Texas at El Paso (3,400 jobs), among others.
Additionally, the area is rich in retail, restaurant, and entertainment options. Major retail offerings near the communities include Sprouts Farmers Market, At Home, Gold’s Gym, Walmart Supercenter, Sam’s Club, The Home Depot, Best Buy, Barnes & Noble, The Fountains of Farah Shopping Mall, and the Cielo Vista shopping mall, which features notable retailers such as JCPenney, Sephora, Sears, and Dillard’s. The restaurant scene is equally vibrant, with popular options like Olive Garden, Twin Peaks, Chick-fil-A, Texas Roadhouse, and Starbucks, among others.
QUICK ACCESS TO INTERSTATE-10 PROVIDES SEAMLESS ACCESS TO KEY EMPLOYMENT AND ENTERTAINMENT HUBS IN EL PASO
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