HOUSTON--Rental properties continue to rise in the Houston market, and in the new year, brokers will continue to reap the rewards of value-add properties in the multifamily sector.
According to Barbara Gaffen, co-CEO of Prime Property Investors (PPI), value-add properties are a sweet spot due to their strong ROI.
“With so many new class A developments delivering next year, projects that are 10 to 15 years old will be considered bargains, as they can be updated to compete with many of today's newest buildings at a fraction of the cost of new construction,” Gaffen told GlobeSt.com.
In June, PPI acquired Estates at Fountain Lake, a class A garden-style apartment community in suburban Houston, a city Gaffen says will continue to perform well for investors in 2015.
“The Houston market is among one of the most vibrant multifamily markets in the country,” she says. “By enhancing common areas and upgrading kitchens and baths at Estates at Fountain Lake, we've been able to increase rents by $150 to $200 per month, showing that pricing improves and risk falls when you add value.”
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