HOUSTON—Elan Med Center, a multifamily property in Houston's Braeswood Bellaire submarket, was recently acquired by a fund sponsored by CBRE Global Investors. The acquisition is part of the fund's strategy of investing in target multifamily markets across the United States.

The 281-unit property is located at 7010 Staffordshire St. less than 5 miles south of downtown, and is within the Texas Medical Center, the world's largest medical complex which is home to more than 60 medical institutions with more than 106,000 employees.

Completed in 2014, Elan Med Center is a podium-style building that offers a mix of one- and two-bedroom apartments and a seven-story structured parking garage. The residences feature quartz countertops, stainless steel appliances, Nest thermostats and 10- to 14-foot ceiling heights. Resident amenities include a pool, a clubhouse, a game room, a fitness center, a pet park, multiple study lounges, and an outdoor terrace area with a kitchen and grills. The community is near the Brays Bayou Greenway Trail, which serves as an additional outdoor amenity for residents.

"Elan Med Center is a unique asset located within a growing enclave of Houston. Within the Braeswood Bellaire submarket, we believe the Texas Medical Center will continue acting as an independent economy in Houston and grow its position as a leader in the life science industry," said Steve Gullo, senior managing director of acquisitions for CBRE Global Investors. "We believe that the property is well-positioned due to its proximity to major medical institutions within the TMC. It is one of only three residential buildings that meets the five-minute commute requirement for the Memorial Hermann and Texas Children's surgical resident programs."

Elan Med Center is within walking distance to various stops along the Houston METRORail, Hermann Park and the Bray Bayou Park. The property is 15 minutes from downtown Houston, 30 minutes from the George Bush Intercontinental Airport and 20 minutes from the William P. Hobby airport.

"We believe this particular asset benefits from a stable high-earning tenancy base, as most medical residencies average three to five years with salary increases," adds Kim Hourihan, a portfolio manager at CBRE Global Investors. "As part of our investment, our team plans to capitalize on the favorable rent-to-income ratio and will also implement the CBRE Global Investors A&B Living program at Elan Med Center."

Requests for additional comment could not be accommodated.

Houston is transitioning to higher-density development as the urban core strengthens. Creating a more dense and vertical urban core remains top of mind for developers as apartment construction will stay concentrated in central Houston and surrounding neighborhoods. The inflow of Millennials and empty nesters to the core seeking walkable communities will support the addition of 5,000 new units to the metro's urban submarkets in 2020, highlighted by four 20-plus story complexes, according to a report by Institutional Property Investors.

Instant Insights /

Houston Multifamily Buy is Part of Target Market Strategy

Related Stories

Recommended For You