Houston Hooks Investors with Employment Carrot
Seven value-add apartment properties totaling 2,239 units were recently purchased by Blue Stone Premier Properties LLC, with the majority in Houston and one in Stafford, TX.
HOUSTON—Acknowledging that Houston-area properties will be a future focus for one investor due to its employment draw, seven value-add multifamily properties totaling 2,239 units were recently purchased here. The majority were indeed in Houston and one was in Stafford, TX. Blue Stone Premier Properties LLC purchased the properties from JK Houston LLC for an undisclosed price.
The properties range from 84.5% to 94% occupied. Plaza on Westheimer, a 643-unit community at 6263 Westheimer Rd. will be renamed Siena on Westheimer; Woodbridge Crossing, a 384-unit complex at 14501 Empanada Dr. will be renamed The Park at San Marino; Westway, a 316-unit community at 10580 Hammerly Blvd. will be renamed The Park at Saronno; Wyndham Oaks, a 279-unit community at 2410 S. Kirkwood Rd. will be renamed The Park at Pisa; Sugar Ridge, a 250-unit property at 12903 Sugar Ridge Blvd. in Stafford will be renamed The Park at Tivoli; Champion Forest, a 198-unit property at 12801 Champion Forest Dr. will be renamed The Park at Salerno; and Country Place, a 169-unit property at 1000 Country Place Dr. will be renamed The Park at Amalfi.
“Now with 23 communities totaling approximately 5,800 units in Texas, Alabama, Georgia, Kentucky and the Carolinas, Blue Stone Premier is taking the popular ‘Blue Stone Lifestyle’ to the next level, offering premier club-style apartment living and amenities,” says Randy Ferreira, CEO/owner of Blue Stone Premier.
Financing was provided by Prime Finance, brokered by Meridian Capital Group.
“Blue Stone Premier is aggressively pursuing additional value-add product in the Houston-area in 2019 and coming years. Our new seven-property 2,239-unit Houston portfolio offered a significant market entry opportunity with well-located properties in one of the nation’s largest employment centers,” Ferreira tells Globest.com.
Houston multifamily recorded a very strong quarter after absorbing 3,984 units, according to a report by JLL. More than 2,000 units were absorbed in March with a first quarter absorption of 3,984 units. There was an uptick in occupancy in first quarter at 89.8%, up 20 basis points from the end of last quarter.
The construction pipeline is also growing in 2019 with 18,585 units under construction. More than 4,600 new multifamily units delivered to market in the first quarter, including four projects in Southeast Houston.
Strong market fundamentals and consistent job growth has helped spur a wave of construction, says JLL. The heaviest concentration of construction is taking place in Katy and within Houston’s inner loop.
Moreover, asking rents are $1,027 per unit.