Current Investments
The Dalton
Nestled at the entrance of the vibrant 5th Avenue Promenade in the iconic Gaslamp District of San Diego, The Dalton boasts 11 unique units, offering a total of 44 beds. This charming boutique hotel also features a ground-floor restaurant and a hidden speakeasy, all set against the backdrop of a rich historical neighborhood that caters to both tourists and business travelers. What sets The Dalton apart? Well, it comes with historical building tax advantages and the essential zoning to operate as a hotel, making it a standout choice amidst Airbnb regulatory challenges. With its creative unit mix and prime location, this project is bound to catch the attention of many and deliver exceptional returns.
We are on the front end of our investment window and are taking investments on a first come, first served basis. If this opportunity aligns with your investment strategy, we would be thrilled to discuss it further.
Link to the deal room is below!
Houston PFC Portfolio
Located in Houston, Texas, the Houston PFC Portfolio is comprised of 3 properties featuring the Beckley (1999), Highland (1994), and Meritage (2008), totaling 666 units. Beckley and Highland combining 426 units, are situated in the NW Houston sub-market, offering a prime location in the second-best school district in Harris County and catering well to family tenants. Meritage encompasses 240 units, sitting just inside the 610 loop, strategically positioned providing easy access to major job locations and downtown Houston. Our strategy involves consolidating all three properties under a Public Facility Corp (PFC) in collaboration with the Houston Housing Authority. This strategic move ensures a 100% exemption from property taxes, with the trade-off of imposing rent and income restrictions on a designated portion of the units across each property.
Pioneer Estates
Located in Des Moines Iowa, this property is centered in a growth development hub. Renovations are currently underway to enhance our property and provide an even better experience for our tenants. Our renovations include a re-imagined common area converted into a gym and relaxing hangout space for tenants to unwind and socialize. Unit renovations will include an addition of washer and dryers as well as bathroom and kitchen modifications. At Hammer and Hampel, we believe that a comfortable living environment starts with exceptional service. Our on-site management team is dedicated to providing top-notch customer service and ensuring our residents feel right at home. Through our capital projects and management efforts to increase the quality of life, we have been able to secure leases at a higher threshold.
The Drake and Chetwynd Apartments
Hammer and Hampel is excited to introduce The Drake and Chetwynd Apartments, a commercial property located in the vibrant city of Des Moines, Iowa. The Drake, situated adjacent to Drake University, comprises of 136 apartments spread over 6 buildings. The property offers a diverse unit mix with 113 units in The Drake and 23 units in Chetwynd Place. The breakdown include 66 1 bed/1 bath units, 60 2 bed/1 bath units, two 3 bed/2 bath units, and 8 2 bed/2 bath units. The Drake offers a great community space with an outdoor pool and grilling area. Hammer and Hampel's strategy involves renovating the remaining 110 units, capturing a significant portion of the current "loss to lease", and creating revenue-generating storage units on the lot. We are targeting a 5-year hold on this investment, but we are always evaluating multiple exit strategies to maximize investor returns.
Past Investments
Sunset Square
Sunset Square, located in the heart of Ankeny, Iowa, presents 68 units consisting of 7-8 plexes and a 12 plex. The property boasted a strong occupancy rate, which provided a solid foundation for consistent income generation. The rehabilitation budget enabled Hammer and Hampel to update the property and increase its value. The renovation plan for Sunset Square included updating lights, and mirrors, installing new appliances, refurbishing and updating cabinets and hardware, and installing new flooring throughout the units. The final numbers included an IRR and Total Annualized of over 14%, all completed in under 24 months. The property was sold on May 25, 2023.