Gulf Coast Portfolio

The Principals of Valorem acquired a portfolio of nine, Class A multi-family properties with 1,548 units in selected Gulf Coast locations in TX and LA, including Houston, Port Arthur, Beaumont, Brownsville and Baton Rouge. By acquiring class A assets in secondary markets, we were able to purchase the assets at a steep discount to similar product in more well
know areas. A deep analysis of the underlying markets proved that the economic drivers of these markets (NAFTA and the petrochemical business) were very strong and would attract attention to these markets as they matured. We were able to sell the assets at capitalization rates that were significantly lower than our going-in rate due to the maturation of these markets and the wider investor interest upon exit.