1203 WILLOW SPRINGS RD Killeen TX 76549-1159

This 3-unit multifamily property at 1203 Willow Springs Rd in Killeen, TX presents a significant value-add opportunity with potential to increase rents by 10%+ through strategic renovations and operational enhancements, and 20% with light unit renovations.​ The property features a desirable unit mix consisting of two 1-bedroom/1-bathroom units and one 2-bedroom/2-bathroom unit, with an average unit size of approximately 703 SF and current rental rate of $733.​ Located in Killeen, home to Fort Hood (formerly Fort Cavazos), one of the largest U.​S.​ military installations, the property benefits from a stable and consistent tenant base driven by active-duty military personnel.​ Offered at an attractive cost basis of $255,000 ($85,000 per unit), this property presents upside potential for long-term value appreciation in a market supported by solid local demographics and strong in-migration trends.​

• ​Significant value-add opportunity with potential to increase rents by 10%+ through strategic renovations and operational enhancements, and 20% with light unit renovations.
• ​Desirable unit mix consisting of one bed one bathroom catering to a broad tenant demographic.
• ​Located in Killeen, home to Fort Hood (formerly Fort Cavazos), one of the largest U.S. military installations—providing a stable and consistent tenant base driven by active-duty military personnel. Fort Hood is home to over 50k+ employees.
• ​Killeen benefits from strong in-migration trends supported by its relative housing affordability compared to major Texas metros.
• ​Offered at an attractive cost basis, presenting upside potential for long-term value appreciation.
• ​Market supported by solid local demographics, including a median household income of approximately $60,000.

INVESTMENT SUMMARY

The Waller Group is proud to present the 100% occupied, 92- unit value-add portfolio in Killeen, TX. 85% of the units are located within 3 miles of each other. The property is available because current ownership is looking to reinvest proceeds. Current ownership is achieving $436,383 in annual NOI. New ownership, based upon area rent comps, can raise rents by $189 / unit, which is a $0.28 / sqft bump. With this bump, new ownership can achieve an annual NOI of $550,147. Additionally, there is the opportunity to implement additional income fees through implementing a ratio utility billing system, lease violation fees, and parking fees. Another cost saving opportunity would be utilizing water conservation opportunities such as updates on faucets, showers, and low flow toilets, which can save up to 20% on water bills. The portfolio is currently self-managed. Proforma financials were underwritten with a 5.0% management fee.

LOCATION SUMMARY

With a population of over 127,000, Killeen, TX has enjoyed rapid growth of more than 35% over the last few decades. Killeen is the principal city of the Killeen-Temple-Fort Hood MSA, which has a population of over 460,000. Ideally situated along the I-35 corridor, in the heart of the Grand Central Texas Region, Killeen is an hour away from both Waco and Austin, and easily accessible via road, rail, and air. Additionally, the North Austin growth is pushing commuters out, and Killeen is quickly becoming a commuter town to North Austin. Killeen, TX has experienced tremendous growth recently with 11.6% in effective rent growth over the last 12 months, a vacancy rate of only 5.4%, an unemployment rate of 6.0%. The Killeen economy is dependent upon government sector employment and is widely known as a military “boom town” due to the rapid influx of soldiers. Fort Hood is the largest employer in Killeen, employing nearly 60,000. Fort Hood is the largest active duty base of the U.S. Armed Forces – and many skilled veterans choose to stay and work in Central Texas. The Army will spend more than $1.65 billion on Fort Hood through a 10-year investment plan, ensuring sustained growth for the broader Killeen economy over the next decade. Additionally, the Department of Transportation awarded a $1mm grant to the Killeen-Fort Hood Regional Airport (GRK), and Texas A&M Central Texas is set to receive $2.9mm in cybersecurity research funding (as part of the pending Defense Appropriations bill), in addition to the $4mm granted two years ago. Other large employers include Central Texas College, which employs over 1,360 educators and professionals, Texas A&M Central Texas, which employs nearly 200 educators and professionals, and AdventHealth Central Texas, which employs over 1,300 medical staff and professionals. While job opportunities continue to increase in the region, competition is stagnant. Within the Killeen/Fort Hood submarket, only 30 units are scheduled to come online through 2022.

• 92 Units
• 100% Occupancy
• 8.23% Cap
• 10.38% Proforma Cap
• Fort Hood MSA
• Killeen, TX