Compass Pointe Pascagoula, MS

Investment Summary

• Attractive Loan Assumption Opportunity | 3.45% Rate
• 5%+ Loss to Lease Can Easily be Captured PLUS Interior Value-Add Upside
• 100% Classic Units Achieving Solid Lease Trade-Outs
• Among the Most Desirable Assets in the Submarket
• Exceptional Location Near Employment, Retailers, & Entertainment
• Supply-Constrained Market with Anticipated Growth
• Accelerating Multifamily Fundamentals Due to Several Economic Drivers 
• Value-Add via Utility Reimbursement 
• Value-Add via Low-Flow Efficiencies

Attractive Loan Assumption Opportunity | 3.45% Rate

The in-place debt ($4,350,000 originated in November 2021) presents a highly attractive financing opportunity in today’s marketplace. With an appealing 3.45% interest rate, this loan offers significant advantages. 

The solid Loan-to-Value (LTV) ratio enhances financial security, coupled with the assurance of below-market rates. The first principal and interest (P&I) payment occurred in January of 2024. The loan’s maturity in December 2031 provides a manageable timeline, making this debt an appealing and secure choice for financing needs.

5%+ Loss to Lease Can Easily be Captured PLUS Interior Value-Add Upside

Compass Pointe is consistently achieving market rents on each floor plan, which averages $884/unit per month. In fact, 26 recent leases (23% of units) are all signed at current market rents! 

The effective rent of $841 can easily be increased to $884 ($43 increase) by organically capturing the 5% loss to lease! There is an additional 5% rent increase within the first year of ownership via light interior upgrades and upgrading the amenity package. This is very achievable based on the location, desirability of the units/amenities, and demand in the submarket! 

By bringing the below-market-rate units up to their full income potential, investors can optimize revenue and improve the property’s financial performance. Implementing effective lease management strategies will allow for capturing this untapped income and maximizing the property’s profitability.

100% Classic Units Achieving Solid Lease Trade-Outs

The asset has been extremely well maintained and units are updated as needed, including many units with upgraded flooring, counters, and paint. Compass Pointe has an average lease trade-out on renewals of 6.3%, based on the last 9 renewal agreements signed! 

All units are in largely classic condition, allowing for a variety of future renovation plays that will increase top-line revenue.

Tenant Services