Ponderosa Apartments – Premier Value-Add Multifamily Investment in Big Spring, Texas

Offered at: $7,400,000 | 78 Units | Pro Forma Cap Rate: 6.78% | Current Cap Rate: 3.45%

Strategically located at 1425 East 6th Street in Big Spring, TX, the Ponderosa Apartments present a unique and highly desirable value-add investment opportunity in the booming West Texas multifamily market. This two-story, garden-style apartment complex offers 78 spacious units with a variety of floorplans — including 1-bedroom (820 SF), 2-bedroom (1,080–1,280 SF), and 3-bedroom (1,800 SF) options — designed to attract a diverse tenant base from the region’s robust oil, gas, and service industries.

Priced at $7.4 million (or $94,871 per unit), the property currently operates with a Net Operating Income (NOI) of $255,565 and a pro forma NOI of $501,544, demonstrating strong upside potential with repositioning. Existing rents are significantly below market rates, and with approximately 42% of units already upgraded, there is a clear path to increasing revenue through further unit renovations, rent realignments, and modernized operations.

Key Investment Highlights:

• Below-market rents: Current average rents trail nearby comps by up to 30%, offering immediate rent lift opportunity.

• Strong rental demand: Located in an area with high demand driven by West Texas energy and logistics sectors.

• Solid income upside: Potential to increase monthly rent revenue from $60,875 to $86,520+ with targeted improvements.

• Cap Rate: 3.45% current | 6.78% pro forma

• Gross Rent Multiplier (GRM): 10.13

• Included utilities: Gas and sewer are included in rent, reducing turnover and increasing tenant satisfaction.

• Renovation potential: Many units updated; remaining can be modernized to raise rental income and valuation.

• Strong unit mix: Large units up to 1,800 SF appeal to families and long-term tenants.

• Amenities: Swimming pool, landscaped courtyard, pet-friendly policy, assigned covered parking.

Tenant-Focused Features:

• Central heating and air conditioning

• Fully equipped kitchens with refrigerator, oven, and range

• Carpet and vinyl flooring

• Ample closet and storage space

• Assigned, covered parking for 2- and 3-bedroom units

• Pet-friendly units (with applicable fees and limits)

• On-site swimming pool and courtyard

• Utilities included (gas & sewer)

Location Benefits:

• Walking distance to Howard College and Big Spring Junior High School

• Minutes from Comanche Trail Park, golf course, and city recreation

• Quick access to I-20 and Highway 87 for commuting tenants

• Close to medical centers, shopping plazas, restaurants, and essential services

Big Spring continues to grow as a key economic hub in West Texas, making Ponderosa Apartments a sound opportunity for both cash flow and appreciation in a market with limited new supply and continued housing demand.