1981 Built | 270 Units | 100% Value-Add
7203 Bellerive Dr | Houston, TX 77036
The Opportunity
Stonegate Apartments is a 270-unit, 1981-vintage garden-style community offered with 100% unrenovated interiors and a clearly executable value-add program, supported by comparable properties already achieving rent premiums for upgraded units. Located near Central Houston with convenient freeway access to Houston’s largest employment districts, the property benefits from a transit-rich, workforce renter base that drives consistent apartment demand. New ownership inherits a property already in recovery, with occupancy climbing from 60% to 90% over the past 16 months under new management. That momentum gives a new owner immediate runway to burn off concessions, realign rents with comparables, and deploy a phased interior renovation program across all units to grow NOI and achieve a strong value-add exit.
Investment Summary
Investment Highlights
Recovering Asset, Proven Momentum — Maximum Upside, Immediate Runway
- Occupancy rebounded from 60% to 90% over the past 16 months under new management, demonstrating strong underlying demand and leasing velocity.
- Effective rents of $830/unit are meaningfully below market, with comparable properties achieving $1,132 average rents, a $302 gap that represents immediate revenue upside for a new owner.
- As occupancy stabilizes, ownership can phase out concessions and align rents with comps, supported by declining bad debt and tightening collections.
- Current $50 renewal premium confirms residents are accepting rent increases, further validating the path to a market rent realignment without significant leasing disruption.
- 94% average occupancy rate over the 9 years preceding 2023 reinforces the current recovery trajectory as a return to historical stabilized performance.
100% Value-Add Upside — Clear Renovation Roadmap
- 100% of interiors are unrenovated, providing new ownership a blank canvas across all 270 units.
- High-impact interior upgrades include replacing ceramic tile flooring with vinyl wood plank flooring, adding washer/dryer units to three floor plans that already have connections, updating lighting, and standardizing countertops and appliances across the portfolio.
- Additional income opportunities include implementing a bulk cable/wi-fi contract, adding carports and reserved surface parking, and introducing a premium security camera system and package lockers with an amenity fee to offset costs.
Infill Accessibility — Transit-Rich and Walkable Amenities
- Situated in Southwest Houston with immediate access to multiple freeways and robust public transit options including METRO bus routes and Hillcroft METRO Park and Ride, providing exceptional connectivity for a workforce renter base.
- No new construction in the submarket creates a supply-constrained environment that protects occupancy and supports sustained rent growth as the asset is repositioned.
- 343K jobs within 5 miles and more than 1 million jobs within 10 miles with expedient commutes to the Galleria/Uptown District, Westchase District, Texas Medical Center, and Downtown Houston.
- 73 Walk Score compared to Houston average of 47 with abundant lifestyle amenities in the immediate area, including grocery stores, necessity retail, schools, and popular neighborhood parks.
The Location
The Property
Community Amenities
Unit Amenities
Contact Us
Investment Sales
KYLE WHITNEY
Senior Director
713.724-1456
[email protected]
TX CRE #658451
CHRIS CURRY
Senior Managing Director
713.553-0151
[email protected]
TX CRE #566750
JEFFREY SKIPWORTH
Managing Director
214.533-3322
[email protected]
TX CRE #560404
CHRIS YOUNG
Managing Director
972.743-5742
[email protected]
TX CRE #630674
JOEY RIPPEL
Managing Director
601.919-5155
[email protected]
TX CRE #654288
JED DALTON
Associate Director
832.314-5078
[email protected]
TX CRE #787068
TUCKER FAMA
Associate Director
281.923-3856
tucker.fama@berkadia.com
TX CRE #9002106
CHRIS SHAEFFER
Financial Analyst
346.444.8969
[email protected]
Mortgage Banking
PATRICK HICKEY
Associate Director
713.469.4519
[email protected]
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