Spring Cypress Multiplex

Tomball, TX

Industrial, Retail

Active

Kumo Capital is pleased to announce the acquisition of Spring Cypress Multiplex, a 171,379 SF mixed-use property in the affluent and rapidly expanding Houston submarket of Tomball, TX. Acquired at approximately 24% below the market average—this 17-building portfolio offers a unique blend of retail, flex industrial, and self-storage space. The investment provides immediate cash flow from its 96%+ occupancy rate alongside significant value-add potential.

Property Highlights

Exceptional Basis-Buy: well below the submarket average of ~$129/SF, providing a substantial value proposition from day one.
Immediate & Growing Returns: The investment generates a strong 8.9% cap rate in year one, projected to increase to 10.4% by year three. This growth will be driven by converting leases to NNN and optimizing rents to market levels, with a forecasted 17% NOI increase in the first three years.
High-Level Return Metrics: The deal is projected to yield an 18.27% IRR for investors with a 2.10x equity multiple.
Diverse Asset Composition: The property consists of 19% Retail, 54% Flex Industrial, and 26% Self-Storage, with unit sizes ranging from 280 SF to 18,250 SF, catering to a wide variety of local and regional tenants.High-Traffic Location: Situated in a dense, affluent area of Tomball, the property fronts Spring Cypress Road, which benefits from 22,600 vehicles per day. The surrounding three-mile radius includes a population of over 147,000 and a median household income of $107,500

Overview

The Spring Cypress Multiplex represents a strategic acquisition combining a low-cost basis with a high-performing, diversified asset. The business plan is designed to capitalize on the property’s strong initial cash flow while systematically enhancing value through professional management and targeted lease restructuring. This approach positions the asset to deliver robust cash-on-cash returns and significant equity growth for investors.

Immediate Cash Flow With an existing occupancy of over 96%, the property offers stable and immediate cash flow from a diverse tenant base.
Multiple Revenue Streams: The mixed-use nature of the asset diversifies risk across three strong performing sectors: retail, flex industrial, and self-storage.
Value Creation Strategy: The investment thesis is centered on driving NOI growth by 17% by year three through the conversion of tenant leases to NNN and increasing rents to align with prevailing market rates.
Future Flexibility: The investment structure provides investors with the option to either refinance after three years to recapture a significant portion of equity or hold the asset for continued strong cash-on-cash returns.