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Sulphur, LA Multifamily Portfolio

4117 Maplewood Dr Sulphur, LA 70663

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Overview

Southwest Louisiana is once again (2014-2019 previously) on the cusp of a prolonged period of industrial investment and development. Situated on the Calcasieu River/Ship Channel are three existing Liquified Natural Gas terminals with two more under construction. Of the three existing terminals, one is in the process of Front End Engineering and Design, or FEED for short, to be converted to export capabilities.

The two new terminals are in the very early stages of construction, which is limited mostly to civil work at this point in time. There is potential for two more terminals that are being considered. All in there is approximately $30 Billion under construction over the next 4-6 years, another $8-10 Billion that is highly likely, and possibly another $10-$20 Billion that is being considered.

Given the duration of these construction projects, we expect market wide rents and occupancy rates to remain at least in place, but more likely will increase. On the east side of the Calcasieu River in Lake Charles, there is significant development of new multi family properties under way. We don’t anticipate that the new units coming online in Lake Charles will significantly impact this portfolio of properties. Sulphur is home to a major portion of Southwest Louisiana’s base economy.