HOUSTON-By his own admission, Yamal Yidios Char president and CEO of Ytech International, had been studying the Houston area for awhile before entering the market though acquiring a 1,312-unit multifamily portfolio in a direct deal with a JV. That, plus the fact that prices were going up in Miami – where the company had been investing — led Yidios Char to become a Texas commercial real estate owner.
“Rising investor interest here in Miami has driven up multifamily prices significantly,” comments Yidios Char. “That’s been happening for awhile.”
Meanwhile, though investor interest in the Lone Star State isn’t exactly keeping multifamily prices low, “Texas and Houston, in particular, is a great place for multifamily investment,” Yidios Char tells GlobeSt.com. He explains that his company employs three main criteria when it comes to targeting an area for investment; employment, price strength and rent yields. “Houston scored very high on all three points,” he says.
The portfolio itself consists of multifamily properties liberally scattered throughout the area in the southwest, northwest far north and northwest submarkets. Yidios Char says all the properties are well-located near major highways and roadways.
However, unlike previous buys, made, Ytech won’t have to really spend much on upgrading the class B assets. “The strategy we usually implement involves redevelopment of the properties, then leasing them up to stabilization,” he says. But this particular portfolio, which had been owned, in part, by the Lynd Co. (and will be managed by the same), already had undergone rehabilitation. “They’re stabilized, really good assets,” Yidios Char comments, adding that Ytech is a long-term asset holder.
With a presence in Texas, Yidios Char says he’s eyeing other potential buys in the state, though indicated nothing is in the pipeline as yet. He’d love to see more buys in Houston, and isn’t shy about his enthusiasm for Oil City.
“We target areas with stabilization and growth,” he says. “We saw that Houstopn is a good placed to live in; such places are attractive not only to people, but to businesses as well. Ultimately, that has a huge impact on society and the economy.”