Astamar Asset Management Latitude 38 Fund Confidential Investor Materials
Prepared April 2026
astamar.realestate
File No. LAT38-TX-0039 — Houston, TX

Aldine
Apartments

A 96-unit Class C value-add multifamily acquisition on Houston's workforce corridor — ten minutes from George Bush Intercontinental, acquired at a significant discount to stabilized value.

4826 Aldine Mail Route Rd · Houston, TX 77039
Aldine Apartments — 4826 Aldine Mail Route Rd, Houston TX
Subject Property Exterior · West elevation
Units
96
In-Place Cap
6.18%
2025 NOI
$532K
Occupancy
91%
Price / Unit
$58K
§ 01 Interactive Model

Adjust the underwriting.
Watch the returns recalculate.

Purchase Price $5.60M
Seller ask: $5.6M · $58K/unit
CapEx Budget $480K
Interior + exterior + deferred maint.
Loan-to-Value 65%
Senior debt, agency/bank
Interest Rate 6.75%
30-yr amortization
Rent Growth (yr 2+) 3.0%
Annual compound
Exit Cap Rate 6.00%
Year-5 disposition
Year 1 Cap Rate
6.18%
On purchase price
Year 1 DSCR
1.32×
Covenant: 1.25× min
Yr-1 Cash-on-Cash
8.1%
On equity invested
5-Yr Equity Multiple
2.02×
Incl. disposition
5-Yr Avg IRR
18.4%
Above 17% target
Cash flow projection
Net Operating Income & Cash to Investor
Sources & Uses
Capital Stack
Line ItemAmount%
§ 02 T12 Performance

The in-place economics.
2025 trailing twelve.

Income & Expenses · T12 2025
Operating Statement
LineAmount% GI
Rent Income$995,27099.9%
Fees & Other$9000.1%
Gross Income$996,170100.0%
Utilities$180,40318.1%
Labor (1099)$51,7005.2%
Property Taxes$134,75013.5%
Insurance$75,9447.6%
Materials & Other$20,9002.1%
Total Expenses$463,69746.5%
Net Operating Income$532,47353.5%
Monthly rent income · 2025
Collections Trajectory
87 / 96
Paying units
Target stabilized: 95%+
$1,045 / mo
Blended rent
Market: $1,051 · Stabilized: $1,125
§ 03 Value-Add

Where the $480K goes to work.

Interior
$280K
Unit upgrades, flooring, appliances. Targeted refresh of ~60 units to lift rents toward market.
Exterior
$120K
Curb appeal, signage, perimeter fencing. First impressions drive leasing velocity.
Common
$50K
Laundry facility refit and landscape upgrades across the 14-building footprint.
Deferred
$30K
Plumbing, HVAC reserves. Critical for a 1963 asset — addresses utility leakage.
Rent progression
Current → Market → Stabilized
MetricCurrentMarketTarget
Avg 1BR (~66 units) $1,012 $995 $1,050
Avg 2BR (~30 units) $1,066 $1,175 $1,225
Monthly Roll $91,835 $95,480 $99,750
Annual NOI $532K $550K $556K+
Unit mix
Occupied, Paying, Gap.
1 Bed · 1 Bath ~66 units · 650 sf
2 Bed · 1 Bath ~30 units · 800–875 sf
Office / Shop 3 non-residential
Rent gap · 2BR
+$109 / unit
Annualized upside
+$18K+
§ 04 Exit Scenarios

Three views on stabilized value.

Conservative
6.50%
Stabilized cap rate
Stabilized Value$8.19M
Per Unit$85,332
Yr-1 CoC6–7%
Base Case
7.00%
Stabilized cap rate
Stabilized Value$7.61M
Per Unit$79,237
Yr-1 CoC7–8%
Aggressive
7.50%
Stabilized cap rate
Stabilized Value$7.10M
Per Unit$73,954
Yr-1 CoC8–9%
Sensitivity · stabilized value vs. exit cap × NOI
Sensitivity Matrix
Stabilized NOI ↓ / Exit Cap →
§ 05 Thesis & Risk

The case, and the caveats.

Why we like it
Investment Thesis
  • 01
    Largest NOI in portfolio
    $532K annual NOI is the highest absolute income across all four properties reviewed this quarter.
  • 02
    Lowest price per unit
    $58K/unit vs. $85K+ for peer assets. Maximum margin of safety at entry.
  • 03
    IAH airport proximity
    Ten minutes to Bush Intercontinental — anchored by stable blue-collar employment and workforce demand.
  • 04
    Operational scale
    96 units justifies on-site management; 14 buildings allow portfolio-style synergies.
  • 05
    Clear path to stabilization
    87/96 units currently paying. Collections recovery alone lifts NOI toward $556K+.
What could go wrong
Risk Factors
  • R1
    High utility costs
    Water ($94K) + Electric ($64K) = $158K. Investigate RUBS billing and latent plumbing issues.
  • R2
    Staffing cost
    $51,700 in 1099 labor is significant — verify coverage and identify any gaps in management.
  • R3
    Older asset (1963)
    62-year-old buildings carry deferred maintenance risk. Roof/plumbing/HVAC reserves are critical.
  • R4
    Low NOI margin vs. peers
    53.5% margin vs. 60.1% at peer asset Werner — expenses compress yield. Utilities are the fix.
  • R5
    Collections recovery
    87/96 current payers. Underwrite remaining 9 units as vacant until paying status is verified.