Cypress/Fairbanks Expects Above-Average Rents
The Houston market is experiencing a significant deceleration in multifamily deliveries, and the submarket in which Discovery is located has no projects under construction in the near term.
HOUSTON—Harris County continues to be one of the fastest-growing US counties and job growth projections for the Houston MSA remain strong. This plays a key role in the region’s overall economic growth as an increasing population brings a larger labor force that makes the region competitive and attractive for business on a global scale, according to a report by CBRE.
This growing population was part of the equation for The Praedium Group’s latest acquisition in suburban Northwest Houston. The New York City-based national real estate investment firm recently acquired Discovery at Mandolin Apartments, a 260-unit multifamily community for an undisclosed price.
“This is an exciting opportunity for Praedium, as we were able to purchase the asset at an attractive basis relative to replacement cost, in a market with favorable supply and demand dynamics,” said Peter Calatozzo, managing director of The Praedium Group. “The Houston market is experiencing a significant deceleration in multifamily deliveries, and the Cypress/Fairbanks submarket in which Discovery is located has no projects under construction in the near term. As a result, the area is expected to see above national average rental growth over the next five years.”
The acquisition of Discovery at Mandolin fits well with The Praedium Group’s strategy of purchasing high-quality assets in growth markets, Calatozzo says.
“As part of our business plan, we intend to implement a capital improvement program which involves upgrading the common areas and unit interiors in order to enhance the tenant experience at the property,” adds Justin Berardino, analyst of the Praedium Group.
Built in 2009, Discovery at Mandolin consists of 10 three-story apartment buildings and a clubhouse/leasing office. The property’s unit mix consists of one-, two- and three-bedroom homes with an average size of 972 square feet. The apartments have 9-foot ceilings, kitchen islands, walk-in closets, and full-size washers and dryers. The amenity package consists of a swimming pool, fitness center with fitness on demand, dog park with washing station, clubhouse with media room and cyber café, car care center, fireside social area and an outdoor grilling station with television.
Discovery at Mandolin offers access to nearby retail including Vintage Park Shopping Village with more than 20 restaurants and 17 high-end retailers, Whole Foods and Willowbrook Mall, as well as Lone Star College–University Park and medical facilities. This results in a diverse set of employers across the healthcare, energy, technology and higher-education industries.
The property is part of the highly rated Cypress-Fairbanks Independent School District. Discovery at Mandolin has high drive-by visibility due to its location near Tomball Parkway, with connectivity to the greater Houston MSA via the Sam Houston Tollway, Interstate 45 and the Grand Parkway.