Multifamily Should Find Rebalance Within Two Years

HOUSTON—Doug Burt recently joined 29th Street Capital as vice president of multifamily acquisitions for Houston and Central Texas after a three-year stint at Tarantino Properties. Burt is responsible for all facets of the privately held real estate investment and advisory firm's regional multifamily acquisitions and asset management strategies.

He will target opportunistic and value-add acquisitions with the goal of expanding the company's presence in the region and adding to the existing portfolio, which consists of seven assets and more than 2,000 units. In addition to sourcing and completing acquisitions, Burt's responsibilities include oversight of projects, marketing/design and dispositions, and selecting third-party management.

Burt recently discussed multifamily opportunities, the rebalancing of the market and overall investment highlights in this exclusive.

GlobeSt.com: What types of opportunities are you seeing in the Houston market in terms of multifamily assets?

Burt: I see opportunity in the class-B and -C value-add space because there is an increasing demand for quality, affordable housing and the Houston metropolitan area consistently leads the nation in population growth.

GlobeSt.com: Is there a leftover effect from the oil downturn?

Burt:  The class-A space has felt the most pain during the current oil downturn but things haven't been as bad as many have expected. Absorption is back on the rise with more units being absorbed year to date than all of 2016. With only 3,500 units being added to supply after 2017, the market is expected to rebalance within the next year or two.

GlobeSt.com: Overall, what are the highlights of the Houston market that make it a good place to invest?

Burt:  The Houston area is expected to add an additional 6 million residents over the next 35 years and double in size. With continuing demand and a lack of new supply to be delivered through 2020, conditions are expected to improve over the coming years.

HOUSTON—Doug Burt recently joined 29th Street Capital as vice president of multifamily acquisitions for Houston and Central Texas after a three-year stint at Tarantino Properties. Burt is responsible for all facets of the privately held real estate investment and advisory firm's regional multifamily acquisitions and asset management strategies.

He will target opportunistic and value-add acquisitions with the goal of expanding the company's presence in the region and adding to the existing portfolio, which consists of seven assets and more than 2,000 units. In addition to sourcing and completing acquisitions, Burt's responsibilities include oversight of projects, marketing/design and dispositions, and selecting third-party management.

Burt recently discussed multifamily opportunities, the rebalancing of the market and overall investment highlights in this exclusive.

GlobeSt.com: What types of opportunities are you seeing in the Houston market in terms of multifamily assets?

Burt: I see opportunity in the class-B and -C value-add space because there is an increasing demand for quality, affordable housing and the Houston metropolitan area consistently leads the nation in population growth.

GlobeSt.com: Is there a leftover effect from the oil downturn?

Burt:  The class-A space has felt the most pain during the current oil downturn but things haven't been as bad as many have expected. Absorption is back on the rise with more units being absorbed year to date than all of 2016. With only 3,500 units being added to supply after 2017, the market is expected to rebalance within the next year or two.

GlobeSt.com: Overall, what are the highlights of the Houston market that make it a good place to invest?

Burt:  The Houston area is expected to add an additional 6 million residents over the next 35 years and double in size. With continuing demand and a lack of new supply to be delivered through 2020, conditions are expected to improve over the coming years.