Astamar Asset Management Off-Market Acquisition OFF-MKT
Prepared April 2026
astamar.realestate
File No. AST-TX-0022 Off-Market

Werner
Creek.

A 36-unit off-market multifamily opportunity in Houston's north corridor — delivering a 60.1% NOI margin on $3,969/unit/yr expenses, the leanest operation in our current peer group.

4635 Werner St · Houston, TX 77022
Werner Creek Apartments — 4635 Werner St, Houston TX
Subject Property Interior courtyard · East-facing breezeway
Units
36
Occupancy
92%
2025 NOI
$215K
NOI Margin
60.1%
Expense / Unit
$3.97K
§ 01 Interactive Model

Set the cap rate.
The price follows.

Entry Cap Rate 7.00%
Drives implied purchase price
CapEx Budget $60K
W01 reno + minor exterior
Loan-to-Value 70%
Senior debt, community bank
Interest Rate 5.50%
25-yr amortization
Rent Growth (yr 2+) 2.5%
Annual compound
Exit Cap Rate 6.75%
Year-5 disposition
Implied Purchase Price
$3.08M
Per Unit
$85,438
Entry Cap
7.00%
On in-place NOI
Year 1 DSCR
1.54×
Above 1.25× covenant
Yr-1 Cash-on-Cash
9.4%
On equity invested
5-Yr Equity Multiple
1.92×
Incl. disposition
5-Yr IRR
17.8%
Above 15% target
Cash flow projection
NOI & Cash to Investor
Sources & Uses
Capital Stack
Line ItemAmount%
§ 02 Operations

A lean operator's
dream spreadsheet.

Income & Expenses · T12 2025
Operating Statement
LineAmount% GI
Rent Income$343,00395.8%
Other Fees & Income$15,1854.2%
Gross Income$358,188100.0%
Utilities$66,47818.6%
Property Taxes$39,67711.1%
Insurance$28,4797.9%
Labor (1099)$8,2502.3%
All Other$2000.1%
Total Expenses$142,88439.9%
Net Operating Income$215,30460.1%
Monthly rent income · 2025
Collections Rhythm
33 / 36
Leased units
29 fixed · 4 MTM · 1 vacant
$962 / mo
Blended rent
Market: $987 · Gap: $25/unit
Utilities · 46.5% of opex
$66.5K
Q1 2026 water running higher ($9,329 / 3 months) — verify annualized run rate before close.
Property Tax · 27.8%
$39.7K
Harris County. Reassessment risk at sale: underwrite a potential 10–15% step-up post-closing.
Insurance · 19.9%
$28.5K
Houston-TX hard market. Competitive quote cycle recommended at renewal.
Labor (1099) · 5.8%
$8.3K
Exceptionally lean. Contractor model avoids fixed payroll — the core of the margin story.
Materials · 5.5%
$7.8K
Turn supplies, minor repairs. Indicative of low turnover and preventive maintenance discipline.
Waste / Other · 5.3%
$7.6K
Trash haul and misc. No visible excess — benchmark-appropriate for 36 doors.
§ 03 Rent Roll

Four MTM leases.
One vacant. The upside lives here.

Unit mix · 36 doors
Current vs. Market
Unit TypeUnitsMkt RentActual
1BR / 1BA · 600 sf 14 $950 $905
1BR / 1BA · 630 sf 12 $970 $952
2BR / 1BA · 829–930 sf 9 $1,125 $1,086
W01 · vacant (630 sf) 1 $1,100 —
Blended 36 $987 $962
Four month-to-month leases (W04, W07, W12, W19) are near-term renewal opportunities to push rents toward market.
Rent upside opportunity
The Near-Term Math
Avg Unit Rent Current → Market
$962 → $987 +$25/unit
Monthly Rent Roll Current → Market
$31,757 → $32,571 +$814/mo
Annual NOI Upside
$215K → $225K +$9.8K
§ 04 Peer Comparison

Margin leadership,
measured against four.

NOI margin · peer set
Werner leads the peer group.
Werner Creek
60.1%
Shady Oaks
60.0%
Aldine Apts
53.5%
PGO
51.0%
Peer average: 56.2%. Werner Creek runs ~390 bps above the peer mean.
Expense efficiency
Lowest expense / unit in the set.
$3,969
per unit · per year
Peer Avg Est.
~$6,800
Annual per unit
Advantage
~$2,831
Per unit per year
§ 05 Acquisition Scenarios

Three caps, three prices,
one conversation.

Conservative
6.50%
Entry cap rate
Implied Price$3.31M
Per Unit$91,999
Yr-1 CoC7–8%
Base Case
7.00%
Entry cap rate
Implied Price$3.08M
Per Unit$85,438
Yr-1 CoC8–9%
Aggressive
7.50%
Entry cap rate
Implied Price$2.87M
Per Unit$79,742
Yr-1 CoC9–10%
Sensitivity · price vs. entry cap × NOI
Price Sensitivity
NOI ↓ / Cap →
70% LTV @ 5.5% / 25-yr amortization. Cash-on-cash figures indicative. Not investment advice.
§ 06 Thesis & Risk

The case, and the caveats.

Why we like it
Investment Thesis
  • 01
    Best-in-class NOI margin
    60.1% leads the peer group — demonstrates lean, disciplined operations and a defensible cost structure.
  • 02
    Off-market pricing advantage
    No broker competition. Negotiate directly on fundamentals and avoid the spread that auction processes create.
  • 03
    Rent upside on renewals
    4 MTM leases plus a $25/unit gap to market — ~$10K annual NOI improvement with no capital required.
  • 04
    Value-add path (W01)
    Renovate the single vacant unit at modest cost to capture the advertised $1,100/mo rent.
  • 05
    Houston growth tailwinds
    No state income tax, sustained population inflow, persistent Class B/C workforce housing demand.
What could go wrong
Risk Factors
  • R1
    Water cost escalation
    Q1 2026 water running higher ($9,329 / 3 months). Verify annualized run rate before close.
  • R2
    Month-to-month exposure
    Four MTM units could turn simultaneously. Underwrite one month of vacancy per renewal as a base case.
  • R3
    Vacant unit (W01)
    Listed at $1,100 advertised. Confirm physical condition and realistic lease-up timeline during diligence.
  • R4
    Scale concentration risk
    36-unit asset: a single large CapEx event (roof, HVAC) is a higher percentage of annual NOI than at scaled properties.
  • R5
    Houston energy cycle
    Local economy retains oil & gas exposure — sector downturns can impact tenant employment and collections.
The Recommendation

Werner Creek is the
strongest candidate
in the review set.