Waveland Apartments
Blighted Apartment Complex Redevelopment Opportunity at Highly Attractive Cost Basis
Oak Park and Gulf Grove are adjacent multi-family communities in Waveland, MS, consisting of 236 units across 47 buildings on approximately 20 acres. Located on US 90, the property is ideally situated between the high-paying jobs at Stennis Space Center and the thriving tourism industry along the Mississippi Gulf Coast. As the only apartment community in the immediate area not at stabilized occupancy, this project presents a unique opportunity to capitalize on the region's tremendous growth and lack of workforce housing.
Highlights
- 1Attractive cost basis at $17,000 per door plus $50,000 per door in renovation costs, well below replacement cost
- 2Prime location between major employment hubs, driving strong demand for workforce housing
- 3High barriers to entry for new multifamily development and limited existing supply
Location Overview
The properties are strategically located just 13 minutes from I-10 and 25 minutes from the Stennis Space Center, a major employment hub with an average annual salary of over $118,000. The property is situated at the entrance to Waveland on US-90, only 2.5 miles from Waveland Beach and 12 minutes from downtown Bay St. Louis, offering residents convenient access to the region's attractions and employment centers.
Subject Property
Subject Property
Investment Memorandum
The Oak Park and Gulf Grove revitalization project will transform 236 distressed apartment units into high-quality workforce housing. The property comprises two distinct communities:
- Gulf Grove: 100 units across 13 six- and eight-plexes
- Oak Park: 136 units across 34 fourplexes
The project's phased approach allows for the renovation and stabilization of apartment "blocks" as construction progresses, mitigating risk and enabling earlier cash flow generation. The majority of the units are two-bedroom, two-bathroom apartments averaging 900 square feet, with market analysis supporting monthly rental rates of $950 (underwritten at $885).
Amenities
- Swimming pool
- Tennis court
- Laundry room
- Off-street parking
- Fitness center
Location Details
Waveland, MS: A Thriving Coastal Community
Demographics and Economy:
- Hancock County population: ~46,000 (2021)
- Median household income: $58,196 (2021)
- Population growth: 5% (2010-2020)
- Metro Proximity: 50mi from New Orleans metro (~1 million people)
- Additional Support: near Harrison County, MS (population: 214,000; 1% annual growth)
Key Demand Drivers:
- Growing preference for lower cost of living and vacation homes outside New Orleans
- Expanding tourism and hospitality industry along the Mississippi Gulf Coast
- Proximity to high-paying jobs at Stennis Space Center
- Vacation rental growth is severely limiting work-face, market-rate housing
Market Analysis
The Waveland multifamily market is characterized by strong demand, limited supply, and a lack of quality workforce housing options. Key highlights include:
- Hancock County: 16th most populous county in Mississippi
- Population growth: 5% (2010-2020) in Hancock County; 1% annually (2010-2023) in neighboring Harrison County
- Market Demand: outpacing supply due to growth in Harrison County and New Orleans metro residents seeking lower cost of living and vacation homes
- Unique Find: Oak Park & Gulf Grove are the only apartment complexes in the immediate area not at stabilized occupancy
Competitive Landscape
- Fragmented market with primarily local and regional operators
- Oak Park and Gulf Grove poised to be the nicest multifamily community in the immediate Mississippi Coast area upon completion of renovations
Project Thesis
This project presents a compelling opportunity to address the critical shortage of quality workforce housing in the rapidly growing Mississippi Gulf Coast region. By acquiring these distressed assets at an attractive cost basis and executing a strategic value-add business plan, Urban Venture Fund and Urban Properties are well-positioned to capitalize on the following key trends and advantages:
Favorable Market Dynamics:
- Strong population and economic growth in Hancock and Harrison Counties
- Increasing demand for affordable housing options as residents seek lower cost of living outside New Orleans
- Thriving tourism and hospitality industry driving demand for service industry workforce housing
- Proximity to high-paying jobs at Stennis Space Center
Strategic Location and Asset Characteristics:
- Prime location on US-90 with excellent accessibility and visibility
- Simple wood-framed construction allows for efficient renovation and phased stabilization
- Separate Oak Park and Gulf Grove parcels provide flexibility for financing and exit strategies
Experienced Sponsorship Team:
- Urban Venture Fund and Urban Properties' proven track record of successful real estate investments
- Deep understanding of the local market and value-add multifamily strategies (other active projects in market)
- Strong relationships with local government and community stakeholders
Community Impact and Support:
- Alignment with Mayor Jay Trapani's campaign promise to revitalize dilapidated apartments
- Addressing the critical need for quality workforce housing in the region
- Potential real estate tax abatement program offered by Waveland and Hancock County
Management Team
Mike Bucher comes from a strong project management and construction background. He is responsible for managing SVN | Urban Properties’ development initiatives from entitlements to delivery. Prior to joining SVN | Urban, Mike served as VP of Development at Stirling Properties where he was responsible for leading new and ongoing development projects with a specialization in office and medical office product types. In addition, Mr. Bucher managed Stirling Properties’ New Orleans office at the Pan American Life Center, where he was responsible for new business development, specifically focused on the New Orleans market. Mr. Bucher holds a B.S. in Business Administration from Villanova University, and an M.B.A. from the University of Virginia’s Darden School of Business, with specializations in corporate finance and investment banking.
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Tyler comes from an analytical background in real estate that includes appraisal, acquisition analysis, and development analysis. Prior to SVN | Urban, Tyler was the Development Analyst for Stirling Properties where he worked with the Development and Acquisition Teams in evaluating virtually all real estate asset classes. Tyler has provided underwriting support for over $50 million in investment sales over the past year. Tyler holds a B.A. from Yale University and an M.B.A. from Tulane University. Tyler is an active member of the Urban Land Institute. Tyler is originally from Lake Charles, LA. He enjoys experiencing the best of New Orleans – its cuisine and music.
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Eugene has a diverse commercial real estate background that includes portfolio asset management oversight, portfolio leasing expertise, and direct involvement of over $250M in development. Eugene holds a B.S. from the U.S. Naval Academy and an M.B.A. from Tulane University, with concentrations in Finance and Accounting. Eugene is a member of Innovating Commerce Service Communities (ICSC) and The Congress for the New Urbanism. Eugene is originally from Pass Christian, Mississippi. He enjoys competitive sailing and spending time with his wife, Theresa, and son, Keegan.
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Tim has a diverse leasing, investment sales, and development background. As the firm’s Broker of Record, he oversees all real estate transactions for the firm as well as spearheading landlord representation and assisting on development deals. Prior to joining SVN | Urban Properties, Tim was a commercial broker with Stirling Properties where he represented both landlord and tenant needs focused primarily in the New Orleans metro area. A graduate of Metairie Park Country Day School, Tim studied Social Sciences and Business Administration at Louisiana State University. He is an active member of Innovating Commerce Service Communities (ICSC) and New Orleans Metropolitan Association of Realtor’s Commercial Investment Division (NOMAR CID).
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Marli Quesinberry is responsible for overseeing fund management and investor relations for the Urban Venture Fund. Prior to partnering with Schmitt, Robinson, Thompson, and Bucher to start the Urban Venture Fund, Marli founded MQ Consulting, LLC. Her most recent client work includes launching an $80 million, Atlanta-based private real estate fund, where she continues to provide third-party fund management and investor relations support. Marli began her real estate career at Cousins Properties (CUZ), where she worked in various capacities for more than 14 years, most recently serving as Vice President of Investor Relations and Marketing from 2013 to 2018. Marli started her professional career during the dot-com boom in 1999, working as a content creator for a start-up music website and then as a creative consultant for IBM. She holds a B.A. from Southern Methodist University and an M.B.A from Tulane University.
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Offering Terms
Investment Sponsor
Team
