As Jobs Land Houston at #3, Buyers Capture Multifamily
Among the 12 largest metropolitan areas in the country, Houston ranked third in both the number of jobs added and the annual rate of job growth, resulting in continued multifamily investor demand.
HOUSTON—As a whole, the Houston market has recorded strong absorption and limited new multifamily supply during the last few years, combined with significant job growth. Total nonfarm employment in the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area stood at 3.15 million in April 2019, up 86,200 or 2.8% from one year earlier, the US Bureau of Labor Statistics reported in April. Among the 12 largest metropolitan areas in the country, Houston ranked third in both the number of jobs added during the year and the annual rate of job growth, noted Stanley W. Suchman, assistant commissioner for regional operations.
With all of this said, the continued demand for housing is apparent, especially given the rate of single-family home price increases. A recent example of investor demand for multifamily product is the sale of the Tradewinds at Willowbrook, a 374-unit multifamily property located in northwest Houston.
Senior managing director Ryan Epstein and director Jennifer Ray of Berkadia’s Houston office arranged the sale on behalf of Olympus Property of Fort Worth. The buyer was Cortland, a multifamily owner/operator based in Atlanta. The price was undisclosed.
“Tradewinds at Willowbrook presented an exceptional value-add investment opportunity in a market where underlying fundamentals are excellent,” said Epstein. “The Houston market as a whole has seen strong absorption and limited new supply in recent years, combined with considerable job growth. In the area where Tradewinds is located in particular, there are currently no comparable properties in lease-up or new projects under development so with the appropriate capital improvements, the new owner could realize significant rent growth and return on investment.”
Built in 2007, Tradewinds at Willowbrook is located at 12331 North Gessner Rd. close to the Vintage Park master-planned community, and near Beltway 8 and Texas 249, within a few miles of major employers that provide more than 26,300 jobs to the immediate area.
“Houston continues to be a national leader in employment growth and is a majority renters market, which will remain strong across the metro area due to a combination of strong labor numbers and rising single-family home prices,” Ray tells GlobeSt.com.
Tradewinds consists of 14 three-story buildings. The property offers one, two- and three-bedroom floor plans averaging 920 square feet. Some units include wood floors, patios, fireplaces and vaulted ceilings. Community amenities include a pool with Wi-Fi, a jogging and fitness trail, private detached/attached garages, an executive business center and fitness center, and a picnic area with gas grills and lake views.