Assumable 3.01% Fixed-Rate Freddie Mac Financing: Circuit is offered with an assumable Freddie Mac loan carrying a 3.01% fixed rate and a September 2030 maturity — an outstanding balance of approximately $44.2M and a 5.07% amortizing debt constant, hundreds of basis points inside prevailing agency coupons. In-place debt of this profile is functionally irreplaceable and drives immediate, durable cash-on-cash performance.
Stadium-District Location in the Path of Institutional Capital: Circuit sits directly adjacent to Shell Energy Stadium and within a mile of Daikin Park (Houston Astros), Toyota Center (Houston Rockets), and the George R. Brown Convention Center — the epicenter of more than $2 billion in announced public and private investment reshaping Houston's east downtown corridor.
Deep Rent Discount to Neighboring New Supply: Effective rents average $1,420 per unit against a surrounding 2022–2025 vintage comp set averaging $1,806 — a discount exceeding $380 per unit (~21%). With zero scheduled deliveries after 2026, the Circuit is positioned to capture outsized organic rent growth at sizeable discount to replacement cost.
Proven Operational Momentum: Occupancy is currently 95% as of October 2026, with trailing-one EGI of $5.52M annualized. The Circuit has average 92.8% occupancy over the prior 7 months, demonstrating resilient operational performance and immediate rental growth upside.
Tax Exemption Through Local Structure: The asset benefits from a 100% real estate tax exemption under its PFC leasehold with the local Houston Housing Authority. Current restricted rents sit meaningfully below 2025 PFC maximum allowable levels — $1,517 for one-bedrooms and $1,821 for two-bedrooms—preserving embedded revenue capacity within the compliance framework.
