| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 47th | Poor |
| Demographics | 16th | Poor |
| Amenities | 36th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 3200 Federal Rd, Pasadena, TX, 77504, US |
| Region / Metro | Pasadena |
| Year of Construction | 1978 |
| Units | 116 |
| Transaction Date | 2020-08-18 |
| Transaction Price | $2,387,500 |
| Buyer | BABA INVESTMENTS SPENCER LANDING LLC |
| Seller | SPENFED LLC |
3200 Federal Rd Pasadena Multifamily Value-Add Opportunity
Renter demand is supported by a high neighborhood renter concentration even as occupancy trends sit below the metro median, according to WDSuite’s CRE market data. Investors can underwrite durable workforce housing demand with attention to lease management and targeted upgrades.
Located in Pasadena within the Houston metro, the neighborhood carries a C- rating (ranked 1,208 of 1,491 metro neighborhoods), signaling value-oriented positioning for workforce housing. Neighborhood occupancy is below the metro median, while renter concentration is high (93rd percentile nationally), indicating a deep tenant base even if lease-up may take longer than in tighter submarkets, per WDSuite’s commercial real estate analysis.
Everyday conveniences are reasonably accessible: restaurants are above the metro median by density (rank 691 of 1,491) and groceries show similar strength (rank 600 of 1,491). Childcare access stands out with a strong national standing (81st percentile). Parks, cafes, and pharmacies are comparatively sparse, which aligns with the area’s industrial and workforce profile.
Within a 3-mile radius, households increased over the last five years and are projected to rise further alongside a decline in average household size. This pattern points to a larger renter pool over time and supports occupancy stability for smaller formats like studios and 1-bedrooms. Median incomes have climbed, and median contract rents have also risen, suggesting room for disciplined rent growth where renovations create clear unit-level value.
Ownership costs are moderate for the region (home values around mid-national levels and a low value-to-income ratio), which can introduce competition from entry-level ownership. Still, a relatively low rent-to-income ratio locally implies manageable affordability pressure, supporting retention where operators maintain prudent rent setting and renewals.
Relative to the Houston metro, this neighborhood’s safety profile is above average. It ranks 273 out of 1,491 metro neighborhoods and sits around the 61st percentile nationally for overall crime safety, with violent offense safety near the 71st percentile and property offense safety near the 86th percentile. Recent data also indicate a modest year-over-year improvement in property crime rates. As always, investors should evaluate block-level trends and property-specific measures during diligence.
Proximity to energy and industrial employers underpins steady workforce renter demand and commute convenience. Notable nearby employers include Boeing, Calpine Turbine Maintenance Group, Waste Management, Calpine, and CenterPoint Energy.
- Boeing — aerospace offices (7.6 miles)
- Calpine Turbine Maintenance Group — power generation services (8.6 miles)
- Waste Management — environmental services (11.9 miles) — HQ
- Calpine — independent power producer (12.2 miles) — HQ
- Centerpoint Energy — utilities (12.2 miles) — HQ
Built in 1978 and totaling 116 units with compact average unit sizes, the asset fits a workforce profile with potential value-add through unit renovations and selective systems upgrades. Neighborhood renter concentration is high versus national peers, supporting a stable tenant base even as neighborhood occupancy trends run below the metro median. Based on CRE market data from WDSuite, household counts within a 3-mile radius have been rising and are projected to continue increasing as average household size declines, pointing to a gradually expanding renter pool.
Operating strategy should balance achievable rent lifts from renovations with retention-focused renewals. Ownership costs in the area are comparatively accessible, which can create competition from entry-level ownership; however, relatively modest rent-to-income levels suggest room for disciplined pricing while maintaining lease stability.
- Strong renter concentration supports depth of tenant base despite below-median neighborhood occupancy.
- 1978 vintage offers clear value-add and capex planning opportunities to drive NOI.
- 3-mile household growth and smaller household sizes indicate gradual renter pool expansion.
- Manageable rent-to-income dynamics support disciplined rent setting and renewals.
- Risk: accessible ownership options may cap pricing power; focus on renovation quality and operations to compete.