CAVAL GROUP LLC Sponsor · Developer · General Contractor — Houston, TX
Investment Opportunity · Conroe, Texas

Conroe Duplex Subdivision

29 duplexes · 58 units on ±4.8 acres at 705 N 6th St, Conroe, TX 77301 — a capital-recycling development with no bank financing, built and sponsored by Caval Group.

~$2.46M
Initial Check (Land, Soft + 4 Duplexes)
$1.99M
Total Net Profit
15.3%
Margin on Cost
~$2.07M
Net Proceeds / Batch (Recycles)
$0
Bank Debt / Recourse
3–4 yr
Full Program
The Model

How the Capital Recycles

Instead of raising the full $13M project cost, one tranche of investor capital builds four duplexes at a time. Each batch sells, returns ~$2.07M plus profit, and the same dollars fund the next batch — through all 29 duplexes.

1

Fund & Acquire

Investor funds land, pre-development and the first 4 duplexes (~$2.46M).

2

Build 4 Duplexes

The 4 city-approved lots sit on existing streets — no replat needed to start.

3

Sell / Lease & Refi

~$2.07M net per batch recycles back, plus profit distributions.

4

Recycle Forward

Proceeds fund the interior streets and the next 4 — repeat to 29 duplexes.

The Site

±4.8 Acres, 29 Platted Lots — School Park Addition

Four lots are shovel-ready today (city-approved for duplexes on existing Turner & 6th Street frontage). Building interior streets McComb & Grogan unlocks the remaining 25 lots. Public sewer is confirmed available.

Site plan over aerial — Conroe Duplex Subdivision, 705 N 6th St
Parcel boundary — ±4.8 ac · 29 lots · 58 units Phase 1 — 4 approved lots (existing streets, no replat) Interior streets to build (McComb & Grogan → 25 lots)
The Numbers

Deal Economics

Base case: 58 units averaging $275,000 (~$183/sf) — in line with 77301 new-construction duplex comps at ~$172/sf. Sponsor self-performs as GC at $104/sf vertical cost.

Per-Batch Cash — 4 Duplexes / 8 Units
Sale: 8 units × $275,000$2,200,000
Less: selling costs (6%)−$132,000
Net proceeds — recycles forward$2,068,000
Less: batch build cost (vert + taps + 5%)−$1,342,400
Surplus per batch$725,600
Full-Project Roll-Up — No Debt
Land acquisition & closing$465,000
Soft costs / pre-dev (incl. replat)$650,000
City permits & utility taps$232,000
Site work: McComb / Grogan streets$1,150,000
Vertical construction (87,000 sf)$9,048,000
Contingency (5%)$509,900
Developer fee (total)$950,000
Bank financing / interest$0
Total project cost$13,004,900
Revenue & Profit
Gross sell-out (58 units × $275,000)$15,950,000
Net sales revenue (after 6% selling costs)$14,993,000
Total net profit — 15.3% margin on cost$1,988,100
The Deal

Capital Structure & Investor Terms

~$2.46M
Initial check — land, pre-dev + first 4 duplexes
~$3.0M
Total commitment (tranched & recycled)
8%
Preferred return
80 / 20
Profit split after pref (Investor / Sponsor)
Per batch
Developer fee — paid from proceeds
Sell or refi
Exit per batch — sale, or lease & refinance
The Location

Minutes from Everything That Sells Houses

Conroe is one of the fastest-growing cities in the U.S., anchored by I-45, The Woodlands employment corridor and Lake Conroe. The site sits in the established School Park Addition, three minutes from downtown.

3 min
Downtown Conroe
5 min
I-45 on-ramp
16 min
The Woodlands
32 min
Bush IAH Airport
45 min
Downtown Houston

Schools — Conroe ISD

Zoned to a strong, fast-growing district; Sam Houston Elementary 3 min, Conroe High 8 min.

Daily Needs

H-E-B, Home Depot, Walmart and Lowe's all within 9 minutes; 24-hr fuel and pharmacy within 4.

Employers & Healthcare

County courthouse, City of Conroe, Conroe ISD admin and HCA Houston Conroe hospital all ≤10 min.

Lifestyle

Walkable historic downtown dining 3–4 min; neighborhood parks nearby, Lake Conroe access ~15 min.

Request the Full Investor Package

Complete pro forma, phased budgets, recorded plat and survey exhibits, comparable sales, and the JV structure exhibit are available for qualified investors and broker partners.

Contact Adrian Cavazos
acavazos@cavalgroup.us  ·  cavalgroup.us