THE GROVE APARTMENTS

88 Units | Victoria, TX | Partnered with Fergmar Capital

A Rare Value-Add Opportunity — Acquiring for under $59K per door, reflecting roughly a 35% discount at acquisition.
Purchase Price: $16,950,000
Cost per door: $58,854
Recent CAPEX: $3,850,000
Hold Period: Five Years

 

Offering Overview

The Grove Apartments is a 288-unit multifamily community located in Victoria, Texas, directly across from our Fergmar corporate office.

We are acquiring the property in a forced sale at an exceptional basis $16.95 million ($58,854 per unit) creating an extremely compelling value-add opportunity.

The property has already undergone $3.85 million in capital improvements, providing a strong foundation for immediate operational and rent-growth upside.

Our business plan focuses on:

  • Renovating the 260 remaining classic units to proven premium standards
  • Selective amenity and curb appeal enhancements
  • Leveraging our deep local presence and operational experience to maximize efficiency and performance

With in-place rents 21 % below market, The Grove offers investors clear, near-term value creation through measurable, scalable improvements.

Why We Love This Deal

  • Price – $16,950,000 acquisition (approximately $58K per unit), roughly $6 million below the current owner’s basis, a distressed and highly favorable entry price.
  • Location – Central in-town location directly across from our corporate office, allowing daily visibility and close oversight.
  • The Building – 288 units across 10 acres with five efficient floor plans and $3.85 million already invested in prior upgrades.
  • Business Plan – Proven 14 to 25 percent rent upside demonstrated by 28 renovated units achieving $175 to $200 premiums. Planned enhancements include a dog park, fitness center upgrades, and a gated entry to further boost appeal.
  • Returns – Targeting 22 to 26 percent IRR, 2.2 to 2.5x equity multiple, and a five-year hold, with strong projected outcomes based on conservative underwriting.

Investment Snapshot

Metric Tier One Tier Two (250K plus investment)
Target IRR 22.83% 26.34%
Equity Multiple 2.25x 2.52x
Average Annual Return 25.06% 30.36%
Hold Period 5 Years 5 Years
Debt Structure 36-month interest-only note at 7.4%, with projected cash-out refinance  
Projected NOI Growth 46% within 24 months  
Underwriting Conservative – 6.25% entry cap / 6.50% exit cap  

Disclaimer:
All figures are projections and not guarantees. Refer to the Private Placement Memorandum for complete offering details.

Deal Highlights

Prime Central Location – In the heart of Victoria, across from our office for hands-on oversight
Acquired 60 Percent Below Replacement Cost – Exceptional entry basis of $58,854 per unit
$3.85 Million in Prior Improvements plus $4.4 Million Value-Add Plan – Positioned for scalable rent growth
288 Units on 10 Acres – Five efficient floor plans ideal for the local market
Proven Rent Upside – 28 upgraded units already achieving $175 to $200 rent premiums
20 plus Years of Local Operating Experience – Deep understanding of the Victoria submarke
1,100 plus Units in Victoria Alone – Scale, relationships, and insight that drive performance
Personally Co-Invested – Alignment of interests with our investors
21 Percent Rent Gap Equals Clear Upside – Proven path to higher income
Projected Returns – 22 to 26 Percent IRR | 2.2 to 2.5x Equity Multiple | Five-Year Hold

Download Offering Memorandum Schedule a Call with Michael Join the Investor List

This offering is open to accredited investors only. All investments involve risk. Please review offering materials carefully before investing.

Meet the Sponsors

General Partner, Meier Capital

General Partner, Meier Capital

Founded one of NYC’s top five privately held residential brokerages with $1.5B+ in transactions and 20+ years of experience. He now leads a global team focused on multifamily and investment strategy.

Founder & Managing Partner, Fergmar Capital

Founder & Managing Partner, Fergmar Capital

20+ years of experience. Built Fergmar Capital from a single flip into a portfolio of 1,100+ multifamily units and $110MM+ AUM. Deep operational expertise and local focus in Victoria, TX.

NEWSLETTER 

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Disclosures & Risk Notice

The information provided on this page is for educational and informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities.

Investment opportunities are offered exclusively through Fergmar Capital (or its affiliates), which serves as the sponsor and manager of such investments.

Michael Meier, through Meier Capital, participates as a General Partner and co-principal in select Fergmar Capital–sponsored projects.

All real estate investments carry risk, including the potential loss of principal. Past performance is not indicative of future results.